RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KAZ/40
30 April 2003
(03-2311)
Working Party on the
Accession of KazakhstanOriginal:  English
ACCESSION OF KAZAKHSTAN
Survey of the Foreign Trade Regime of the Republic of Kazakhstan
The following "Survey of the Foreign Trade Re gime" has been received from the delegation
of the Republic of Kazakhstan with the request that it be circulated to members of the Working Party.
The Survey provides updated information on the economic, trade and legislative regime.  It
will serve as background information for the next meeting of the Working Party.
_______________WT/ACC/KAZ/40
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TABLE OF CONTENTS
- Introduction.................................................................................................................. .............1
- Documents ..................................................................................................................... ............1
- Economic Policies............................................................................................................. .........3
- System of Currency Exchange and Payments........................................................................3
- Investmen t Regime ............................................................................................................. ......6
- Pricing Policie s .............................................................................................................. ............7
- Policies on Competition ....................................................................................................... .....8
- Mechanisms of Development and Implementation of Policies, Influencing Trade
in Goods and Services.......................................................................................................... .....9
- Executive, Legislative, and Judicial ........................................................................................9- Legislative................................................................................................................... .............10
- Judicial...................................................................................................................... ...............11
- Governmental Bodies Responsible for the Development and Implementation of
Policies, Affecting Foreign Trade ..........................................................................................11
- Local administration and self-government bodies...............................................................12
- Internationa l Treaties........................................................................................................ .....12
- Provisions Affecting Trade in Goods ....................................................................................13
- Registr ation .................................................................................................................. ...........13
- Customs Duties................................................................................................................ ........14
- Import Customs Duties ......................................................................................................... .14
- Other Import Duties and Fees Levied for Provided Services .............................................15
- Other duties levied on imported (not domestic) goods, except for duties levied on
provided services.............................................................................................................. .......17
- Application of Taxes to Imported Goods..............................................................................17
- Value Added Tax ............................................................................................................... .....18
- Excises....................................................................................................................... ...............18
- Quantitative Restrictions on Import .....................................................................................22
- Import Licensing.............................................................................................................. .......22
- Customs Valuation............................................................................................................. .....22
- Rules Relating to the Determin ation of Origin  of Goods ....................................................23
- Pre-shipment Inspection....................................................................................................... ..24
- Anti-Dumping, Countervailing, and Safeguard Measures..................................................25- Export Customs Duties......................................................................................................... ..25
- Export Restrictions ........................................................................................................... ......25
- Export Licensing.............................................................................................................. .......26
- Export Subsidies .............................................................................................................. .......26WT/ACC/KAZ/40
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- Internal Policies, Affect ing Trade in Goods .........................................................................27
- Policies on Support of Industry .............................................................................................27
- Technical Barriers to Trade................................................................................................... 28
- Sanitary and Phytosanitary Measures..................................................................................31
- Investment Measures  in Trade ..............................................................................................37
- Provisions on State Trade ..................................................................................................... .37
- Free Zones .................................................................................................................... ...........38
- State Procuremen t Practices..................................................................................................3 9
- Transit....................................................................................................................... ...............39
- Provisions Influencing Trade in Agricultural Goods ..........................................................40
- Policies in Agriculture ....................................................................................................... .....40
- TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................44
- Policies on Intell ectual Property............................................................................................4 4
- Bodies for Administration of Intellectual Prop erty Rights.................................................44
- Participation in International Conf erences on Intellectual Property ................................44
- Participation in international conference s on intellectual property and regional
or bilateral agreements........................................................................................................ ...45
- Application of National Treatment and Most Favorable Treatment to Foreign
Citizens....................................................................................................................... ..............45
- Independent Protection Standards, including Procedures for Acquisition and
Enforcement of Intellec tual Property Rights .......................................................................46
- Independent Protection Standards, including Procedures for Acquisition and
Enforcement of Intellec tual Property Rights .......................................................................46
- Copyright and relating rights, including rights of performers, phonogram
producers, and broadcasting organizations .........................................................................46
- Rights of authors............................................................................................................. ........46
- Rights of performers.......................................................................................................... .....46
- Rights of phonogram producers............................................................................................46
- The right of broadca sting organiz ations...............................................................................46
- Protection of performers, phonogram producers, and broadcasting
organizations .................................................................................................................. .........47
- Trademarks, including  Service Marks .................................................................................47
- Geographical Indications, Including Countries of Origin ..................................................47
- Patents....................................................................................................................... ...............47
- Industrial Designs ............................................................................................................ .......48
- Plant Protection.............................................................................................................. .........48
- Layout Design of Integr ated Microci rcuits ..........................................................................49
- Closed Information, including Commercial Secret and Test Results ................................49WT/ACC/KAZ/40
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- Control relating to Infringement of Intellectual Pr operty Rights......................................49
- Measures for Enforcement of In tellectual Proper ty Rights................................................49
- Court Legal Procedures and Decisions .................................................................................49
- Provisional  measures .......................................................................................................... ....50
- Administrative mechanis ms and procedures .......................................................................50
- Special Bord er Measures....................................................................................................... .50
- Criminal Procedures........................................................................................................... ....50
- Legislati ve Acts .............................................................................................................. .........51
- POLICIES AFFECTING T RADE IN SE RVICES..............................................................51
- Transparency .................................................................................................................. ........53
- INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................53
- Regional Ag reements........................................................................................................... ...53WT/ACC/KAZ/40
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- Introduction
On 29 January 1996 the Government of the Republic of Kazakhstan applied for accession to
the World Trade Organization (WTO).  The meeting of the General Council of 6 February 1996,
resulted in the establishment of the Working Party for consideration of the accession application of
the Republic of Kazakhstan under Article XII and development of recommendations for the GeneralCouncil, including the Schedule of Accession.  All WTO members have been allowed to become
members of the Working Party. Requirements for participation in the Working Party are set out in
WT/ACC/KAZ/2 Par.1 and 2).
The first meeting (10 March 1997), and the second meeting (9 October 1997) of the Working
Party were chaired by B. Ekblom (Finland); the third meeting (9 October 1998), the fourth meeting
(12-13 July 2001), and the fifth meeting (13 December 2002) of the Working Party were chaired by
P.Huhtaniemi (Finland).
-D o c u m e n t s
Discussions of the Working Party have been based on the Memorandum on Foreign Trade
Regime of the Republic of Kazakhstan В (WT/ACC/KAZ/3 and App.1), answers to the questions,
submitted by members of the Working Party on the foreign trade regime of the Republic of
Kazakhstan (WT/ACC/KAZ/6. App.1 and 2; 10; 14; 18; 20; 21; 22; 23; 24; 25; 26; 27; 28; 29; 30; 31;32; 33; 34; 35; WT/ACC/SPEC/KAZ/2), and other information made available by the authorized
bodies of the Republic of Kazakhstan.  The Governme nt of the Republic of Kazakhstan provided the
Working Party with the following legislative acts:
- the Constitution of the Republic of Kazakhstan;
- the Civil Code of the Republic of Kazakhstan;
- the Code of the Republic of Kazakhstan "On Taxes and Other Mandatory Payments to the
Budget";
- "On Implementation of the Statutory Order of the President of the Republic of
Kazakhstan 'On Customs in the Republic of Kazakhstan'";
- "On the National Bank of the Republic of Kazakhstan";
- "On Licensing";
- "On Securities and Currency Exchange";
- "On Economic Partnerships";
- "On Medical Insurance";
- "On Oil";
- "On Banks and Banking";
- "On Implementation of the Statutory Order of the President of the Republic of
Kazakhstan 'On Banks and Banking in the Republic of Kazakhstan'";
- "On Insurance";
- "On Use of Air Space and Aviation in the Republic of Kazakhstan";
- "On Land";
- "On Special Economic Zones in the Republic of Kazakhstan";
- "On Excises Levied on Certain Goods Imported to the Republic of Kazakhstan";
- "On Procedures for Export and Import of Goods (Works, Services) in the Republic of
Kazakhstan";
- Schedule of Goods Exempt from the Customs Treatment of Provisional Import (Export)
- Temporary Provision on Non-Cash Transactions in the Republic of Kazakhstan
Reflecting Changes and Amendments of Prot ocol 4 of 11 February 1994, and Protocol 5
of 31 March 1995
- "On Ban on Export and Import Barter Operations";WT/ACC/KAZ/40
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- "On Changes and Amendments to the Resolution of the Cabinet of Ministers of the
Republic of Kazakhstan No. 984 of 17 July 1995 'On Ban on Export and Import Barter
Operations'";
- "On Procedures for Application of VAT and Excises Levied on Goods, Imported to the
Customs Territory of the Republic of Kazakhstan. Decree of the Customs Committee ofthe Cabinet of Ministers of the Republic of Kazakhstan No. 131- П of 29 September
1995";
- "On Rules for Public Presentation of Cinematographic and Video Works in the Republic
of Kazakhstan";
- "On Establishment of the Public Agency on Copyright and Relating Rights";
- "On Adoption of the Provision on the National Pa tent Agency of the Cabinet of Ministers
of the Republic of Kazakhstan";
- "On Adoption of Procedures for Issuing of  Safeguard Documents of the Republic of
Kazakhstan for Inventions, Industrial Designs, Trademarks, and Service Marks, Protected
under Safeguard Documents Issued by the Former USSR";
- "On Adoption of the Provision on Procedures for Realization (Communication,
Exchange, Sale) of Information on Subsurface of the Republic of Kazakhstan";
- "On Excises Levied on Certain Excisable Goods, Imported to the Republic of
Kazakhstan, Limits for Natural Persons Relating to the Quantity of Excisable Goods,
Exempt from Excises, Allowed to Be Carried Across the Customs Border of the Republic
of Kazakhstan";
- "On Excises Levied on Excisable Goods Produced in the Republic of Kazakhstan and
Gambling";
- "On Adoption of the List of Countries Using the Structure of Preferences of the Republic
of Kazakhstan";
- "On Adoption of the Schedule of Stock Goods";
- "On Customs Duties Levied on Imported Goods";
- "On Changes and Amendments to the Resolution of the Cabinet of Ministers of the
Republic of Kazakhstan No. 74";
- "On Issues Relating to Administration of National Insurance in the Republic of
Kazakhstan";
- "On Implementation of the Statutory Order of the President of the Republic of
Kazakhstan 'On Licensing'";
- "On the Committee on Standardization, Metrology, and Certification of the Republic of
Kazakhstan. Decree No. 478 of the Government of the Republic of Kazakhstan of
19 April 1996";
- "On Changes to the Decree of the Government of the Republic of Kazakhstan No. 299 of
12 March 1996.  Decree of the Government of the Republic of Kazakhstan No. 810";
- "On Customs Control Over Products Under Obligatory Certification";
- "On Customs Duties";
- "On Adoption of the Decree on Destruction or Reprocessing of Products Declared as
Non-Marketable and Non-usable";
- "On Adoption of Provisions on the State En vironmental Expertise in the Republic of
Kazakhstan";
- "On Cheques in the Republic of Kazakhstan";
- Rules for Exchange Transactions in the Republic of Kazakhstan
- "On Duties and Procedures for Payment to be Effected by Foreign Applicants for Legal
Actions, Relating to Protection of Property of Industrial Sites in the Republic of
Kazakhstan";
- "On the National Patent Agency of the Cabinet of Ministers of the Republic of
Kazakhstan";WT/ACC/KAZ/40
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- "On Procedures of Payment and Rates of Du ties Payable for Patenting of Inventions,
Industrial Designs and Models of Utilities, Registration of Trademarks and Service
Marks, Registration and Right to Use Appellations of Origin";
- "On State Procurement of Goods (Works, Services) in the Republic of Kazakhstan";
- "On Regulation of Prices on Products of Economic Agents, Representing Natural
Monopolies";
- "On Changes and Amendments to the Resolution of the Government of the Republic of
Kazakhstan No. 1035 of 28 July 1995";
- "On Stage-by-Stage Introduction of Mandatory Certification of Goods (Works, Services)
in the Republic of Kazakhstan";
- "On Environmental Protection in the Republic of Kazakhstan";
- "On Protection of Consumer Rights";
- "On Auditing in the Republic of Kazakhstan";
- "On Currency Regulation";
- "On Trademarks, Service Marks, and Appellations of Origin";
- "On Transport in the Republic of Kazakhstan";
- "On Foreign Investments";
- Law of the Republic of Kazakhstan "On Copyright and relating rights";
- "On Development of Competition and Restriction of Monopolies";
- "On Oil";
- "On State Registration of Legal Entities";
- "On Export Control over Weapons, Armament Technologies, and Double Purpose
Products
- Patent Law";
- "On Subsurface and Subsurface Use";
- "On Changes and Amendments to the Statutory Order No. 2196 of the President of the
Republic of Kazakhstan 'On the National Bank of the Republic of Kazakhstan',Incorporating Changes and Amendments of 20 July 1995, and 5 August 1995";
- Draft Law of the Republic of Kazakhstan "On Removal of Waste" (1 September 1997);
- Draft Law of the Republic of Kazakhstan "On Safeguards";
- Law of the Republic of Kazakhstan "On Subsidies and Countervailing Duties";
- Articles 184, 199, and 200 of the Criminal Code "On Intellectual Property";
- "On Administrative Offences";
- "On Payments and Money Transfers";
- "On Unfair Competition";
- "On Anti-Dumping Measures";
- "On Certification";
- "On Protection of Selection Achievements";
- "On Standardization";
- "On Legal Protection of Layout Design of Integrated Microcircuits";
- "On Plant Protection"; and
- "On Measures for Protection of Domestic Market".
- Economic Policies
- System of Currency Exchange and Payments
Under the Law of the Republic of Kazakhstan "On Currency Regulation" of 24 December
1996 (amended by the Laws of the Republic of Ka zakhstan 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), exchange transaction are
subdivided into current currency operations and operations connected with the movement of capital.WT/ACC/KAZ/40
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Current currency operation comprise:  transfers for the settlement of accounts relating to the
export and import of goods, works, and services allowing for the deferral of payment or advance
payment for a period of not more than 120 days; granting and receipt of official credits for a period of
not more than 120 days; transfer and receipt of dividends, interest, and other revenues on
contributions (deposits), investments, loans, and other operations; transfers not relating to trade,including grants, inheritance, wages, pensions, alimony, etc.; any other currency operations not listed
under operations connected with the movement of capital in the Law "On Currency Regulation".
Operations connected with the movement of capital comprise:  investments; transfers for
settlement of accounts relating to operations provided for complete transfer of exclusive rights to
intellectual property;  transfers as a form of payment for economic rights to real estate; transfers for
the settlement of accounts relating to the export and import of goods, works, and services allowing for
the deferral of payment or advance payment for a period of more than 120 days; granting and receiptof official credits for a period of more than 120 days; allocation of contributions (deposits) in foreign
banks, authorized to perform banking operations by the legislation of their countries of registration;
international transfers for operations, relating to accumulated pension assets; international transfers
under accumulation insurance and re-insurance agreements.
International bank payments and transfers, effected in the course of current operations
between residents and non-residents, shall be perf ormed by authorized banks without any limitations.
International bank payments and transfers, effected in the course of operations connected with the
movement of capital in the currency of the Republic of Kazakhstan and foreign currencies, shall be
performed following procedures set by the National Bank of the Republic of Kazakhstan.
Under the Law of the Republic of Kazakhstan  "On Licensing" of 17 April 1995, the following
types of operations with currency valuables shall be subject to licensing:  retailing and provision of
services for foreign currency in cash; opening of accounts by residents (including accounts in the
currency of the Republic of Kazakhstan) in foreign banks and other financial bodies, authorized to
engage in corresponding activities by the legislation of the country of registration; investments of
residents placed abroad (excluding brokerage and dealing bank operations); transfers of residents tonon-residents as a form of payment for economic rights to real estate; transfers of residents to non-
residents for the settlement of accounts relating to import of goods, works, and services allowing for
advance payment for a period of more than 120 days, as well as for extension of the period for receipt
of earnings in a foreign currency as a payment for the export of goods (works, services) by residents
for a period of more than 120 days after the date of export of goods (works, services); granting by
residents of loans to non-residents for a period of more than 120 days; crediting of foreign currency,
received by a resident as a loan granted by a non-resident, to an account of a third-party.
Under Article 3 of the Law of the Republic of Kazakhstan "On Currency Regulation", the
President of the Republic of Kazakhstan has the right to restrict or freeze any currency operations for
purposes of fulfillment of international obligations and in emergency situations.  Also, under the Law,
the National Bank of the Republic of Kazakhstan is authorized to impose restrictions on the currency
of payment used in export operations of residents, on surrender requirements applied to exportreceipts in a foreign currency,  and on the form of payment of specific import and export contracts in
order to ensure economic safety of the Republic of Kazakhstan.
Under the Rules of Registration of Currency Operations Connected with the Movement of
Capital, adopted by the Decree of the Board of the National Bank of the Republic of Kazakhstan
No. 88 of 31 March 2001, registration with the National Bank shall be required for the followingcurrency operations, connected with the movement of capital resulting in receipts of property (funds)
in the Republic of Kazakhstan in the amount exceeding the equivalent of US$100,000:WT/ACC/KAZ/40
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- borrowing from non-residents for a term of more than 120 days, including financial
leasing;
- crediting by non-residents of import and export operations;
- investments of non-residents into the Republic of Kazakhstan in the form of direct and
portfolio investments; and
- transfers of non-residents as payment for complete assignment of exclusive rights to
intellectual property works, effected by residents; transfers of non-residents as payment
for economic rights to real estate.
Capital payments, effected by non-residents to residents in excess of US$100,000, relating to
attraction of investments to the Republic of Kazakhst an, shall be registered with the National Bank of
the Republic of Kazakhstan.
Capital payments effected by residents to a foreign country shall require a license of the
National Bank of the Republic of Kazakhstan.  Norms, restricting export of currency by natural
persons and legal entities from the Republic of Kazakhstan, shall be set by the National Bank of the
Republic of Kazakhstan.
Registration of currency operations connected with the movement of capital is not restrictive,
and shall be conducted for statistical purposes for the balance of payments.  Under the Rules onCurrency Operations in the Republic of Kazakhstan, adopted by the Resolution of the Board of the
National Bank of the Republic of Kazakhstan No. 115 of 20 April 2001, payments and money
transfers for operations between residents and non-residents may be conducted in any currency, the
parties have agreed upon. Payments and money transfers for operations between residents and non-
residents may be conducted only through their bank accounts, except for cases provided for in thenormative acts of the National Bank.  Prior to carrying out currency operations, a resident and/or a
non-resident shall file documents, required under the currency legislation of the Republic of
Kazakhstan, with the authorized bank.  The authorized bank may not effect payments and money
transfers of a resident and/or a non-resident if one of the above failed to file the required documents.
If a resident intends to effect a payment and/or money transfer which require a license and/or aregistration certificate of the National Bank of the Republic of Kazakhstan, he shall file with the
authorized bank originals and copies of the required license and/or registration certificate.
Residents and non-residents shall have the right to import to the Republic of Kazakhstan
currency valuables listed under Article 1.1 of the Law of the Republic of Kazakhstan "On Currency
Regulation" of 24 December 1996 without any restrictions provided that all requirements set out in
the legislation of the Republic of Kazakhstan have been met.
No restrictions shall apply to export of the national currency from the Republic of Kazakhstan
by residents and non-residents.  Coins of precious metals issued by the National Bank and recognized
as a legal circulating medium, shall be imported to or exported from the Republic of Kazakhstan
without any restrictions.  Resident natural persons shall have the right to export from the Republic of
Kazakhstan foreign currency in cash in the amount not exceeding the equivalent of US$10,000,
unsupported by documents proving its legal origin.  If the exported amount exceeds the equivalent ofUS$10,000, the exporting party shall file with the customs bodies of the Republic of Kazakhstan a
number of documents, listed in the Rules of Currency Operations in the Republic of Kazakhstan,
adopted by the Regulation of the National Bank of the Republic of Kazakhstan No. 115 of
20 April 2001, to prove legal origin of the amount exceeding the equivalent of US$10,000.
Non-resident natural persons shall have the right to export from the Republic of Kazakhstan
foreign currency in cash and payment documents with their face value  in a foreign currency, in
accordance with the customs declaration completed for the import of the above.  If the exported
amount exceeds the amount stated in the customs declaration, a non-resident shall file with theWT/ACC/KAZ/40
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customs bodies of the Republic of Kazakhstan a number of documents, listed in the Rules of Currency
Operations in the Republic of Kazakhstan, adopted by the Regulation of the National Bank of the
Republic of Kazakhstan No. 115 of 20 April 2001, to prove legal origin of the exceeding amount.
- Investment Regime
Reforms of legislative and normative regulation of the investment environment have been
targeted at (i) transition from the centralized to market economy; and (ii) attraction of necessary
investments to enable expansion of production capacities, modernization of the infrastructure, and
restructuring of the industrial base.  At presen t, the laws of the Republic of Kazakhstan create
conditions favorable for investments.  These have been adapted to implement international norms and
standards, and include:
- the Law "On Investments" No. 373-II ЗРК of 8 January 2003;
- the Code of the Republic of Kazakhstan of 12 June 2001 "On Taxes and Other Mandatory
Payments to the Budget";
- the Law "On Customs in the Republic of Kazakhstan" No. 2368 of 20 July 1995;
- the Law "On Insurance" of 18 December 2000;
- the Law "On Unfair Competition" of 9 June 1998;
- the Law "On Natural Monopolies" of 9 July 1998;
- laws on banking and currency exchange regulation, laws on intellectual property;
- the Law "On Land" No. 152 of 24 January 2001;
- the Statutory Order of the President of the Republic of Kazakhstan No. 2350 of 28 June
1995 "On Oil"; and
- the Statutory Order of the President of the Republic of Kazakhstan No. 2828 of
27 January 1996 "On Subsurface and Subsurface Use".
The current legislative acts guarantee protection of rights and interests of investors and
creation of the favorable environment for investment activities in the Republic of Kazakhstan in
accordance with the legislation on investments, and international treaties of the Republic of
Kazakhstan.
The Law of the Republic of Kazakhstan "On Investments" gives an explicit definition of
investments and investment activities, ensures equal conditions for operation of domestic and foreign
investors, including a number of guarantees.  Thus, the Law guarantees legal protection for activities
of investors in the Republic of Kazakhstan, use of incomes, transparency of actions of public bodies
targeted at investors, as well as the rights of investors in cases of nationalization and requisition.
Enforced seizure of property of investors (nationalization, requisition) for national needs shall be
performed only in exceptional cases, stipulated in the legislative acts of the Republic of Kazakhstan.In cases where the property of an investor is nationalized, he shall receive his losses, incurred by the
legislative acts of the Republic of Kazakhstan on nationalization, shall be compensated in full. In
cases where the property of an is subject to requisition, he shall receive its market value.
Gross direct foreign investments to the Republic of Kazakhstan for a term between 1993 and
the third quarter of 2002 equalled US$19.7 billion.  As of the fourth quarter of 2002, the bulk of directforeign investments has been allocated to the mining industry and comprised 67.3 per cent of the total
amount of direct foreign investments, while under state support for attraction of private investments to
the national economy, the volume of investments allocated to the processing industry comprised 56
per cent.
In 2002, the breakdown of the investment structure by countries showed the dominating
position of investors from the United States (26 per cent of the gross foreign direct investments),WT/ACC/KAZ/40
Page 7
Great Britain (16 per cent), Italy (13 per cent), the Netherlands (9 per cent), and the Russian
Federation (5 per cent).
Legislative acts of the Republic of Kazakhstan may specify areas, where investment activities
of foreign investors or enterprises with foreign participation shall be restricted or prohibited, for
reasons of national security.  
- Pricing Policies
National policies on pricing have the following tasks and objectives:
- regulation of prices and tariffs for services of natural monopolies;
- regulation of prices and tariffs for services supplied by enterprises enjoying sole or
exclusive rights;
- regulation of payments for services supplied by public bodies in accordance with the
legislative acts of the Republic of Kazakhstan; and
- introducing countermeasures to fight unfair competition practices, used by some
producers in the markets of goods.
The liberalization of prices in the Republic of Kazakhstan has been initiated by the Decree of
the President of the Republic of Kazakhstan No. 569 of 3 January 1992 "On Measures for
Liberalization of Prices" with the view to stabilize the social and economic situation in the Republicof Kazakhstan and create conditions for the development of market relations in the economic sectors.
Hence, at present the state regulation extends only to natural monopolies.
Relations arising in the market of services (goods, works), relating to presence and operation
of natural monopolies, are regulated by the Law of the Republic of Kazakhstan No. 272 -II of
9 July 1998 "On Natural Monopolies" (hereafter-the Law). Among the objectives of the Law are:
- determination of the legal platform for state control and regulation of activities of natural
monopolies; and
- balancing interests of consumers against interests of natural monopolies.
Natural monopolies comprise the following activities:
- transportation of oil and/or oil products along main pipe-lines;
- storage, transportation of gas or gas condensate along main and/or distribution pipe-lines,
operation of gas-distribution units and connected gas distribution pipe-lines;
- transmission and/or distribution of electricity and/or heat;
- production of heat by heating boilers using combined production methods;
- services in technical dispatching of release and consumption of electric energy;
- services of the main railroad network;
- services of access roads, in cases where there are no other competing access roads, and
where construction of one is technically impossible or economically impractical;
- air navigation services, services of sea- and airports;
- telecommunication services using local networks;
- services of waterworks and/or sewerage networks; and
- public mail services.
Provisions of the Law shall not extend to individual entrepreneurs and legal entities, engaged
in activities classified as natural monopolies, but relating to construction and operation of objects,
used for their own needs.WT/ACC/KAZ/40
Page 8
A market entity, engaged in  activities classified as natural monopolies, shall by regulated and
controlled by the state only to the extent of such activities.
Natural monopolies shall be entered in the State Register of Natural Monopolies comprising
two sections:  the Republican section (covers natural monopolies operating in the market extending
beyond the border of one oblast), and the local section (covers natural monopolies operating in localmarkets confined to one oblast, city, rayon, settlement, other local zones).  Procedures for entering to
and removal of entries from the State Register of Natural Monopolies shall be set by the authorized
body.
State regulation of activities of natural monopolies shall be implemented by the following
mechanisms:
- approval of tariff rates (prices, fee rates);
- approval of tariff estimates;
- setting of the provisional decreasing coefficient; and
- special order for cost formation.
Tariffs (prices, fees) for services of a natural monopoly, approved by the authorized body,
shall not be below the value of costs required to provide services (produce goods, perform works),
and shall allow for the adequate level of profits necessary to ensure its efficient operation. Tariffs(prices, fees) for services (goods, works) of a natural monopoly may be changed no more than one
time every two quarters.  New tariffs (prices, fees) shall be implemented starting from the first of the
quarter.
To ensure flexibility of tariff regulation m echanisms, protects interests of consumers and
natural monopolies, tariffs (prices, fees) for services of natural monopolies may be corrected byprovisional decreasing coefficients, implemented in accordance with procedures set by the authorized
body.
- Policies on Competition
Competition policies of the Republic of Kazakhstan are aimed to create conditions for
efficient operations of markets of goods, ensure free competition, and protect legitimate interests ofconsumers.
Tasks and objectives of competitive policies comprise:
- support of entrepreneurship, development of competition in the market of goods (works,
services);
- suppression and prevention of coordinated actions of market entities and public bodies,
aimed at levelling of prices, market sharing, elimination of the market or limiting access
to the market for other entities;
- suppression and prevention of monopolistic activities, resulting in misuse of the
dominating position in the market;
- control over economic concentration; and
- prevention ungrounded intervention of public bodies in economic activities of market
entities.
The monopoly legislation is based on the Constitution of the Republic of Kazakhstan and
comprises norms of the Civil Code of the Rep ublic of Kazakhstan, the Law of the Republic of
Kazakhstan No. 144 of 19 January 2001 "On Competit ion and Restriction of Monopolies" and other
normative acts of the Republic of Kazakhstan, containing provisions on prevention, restriction, andWT/ACC/KAZ/40
Page 9
elimination of monopolistic activities, unfair competition, and regulation of natural monopolies.  In
cases where provisions of an international agreement to which the Republic of Kazakhstan is party
differ from the Law, these provisions shall have priority over the Law.
Agreements (coordinated activities) of competing and non-competing market agents, as well
as agreements concluded between public bodies, or between a public body and a market agent shall beinvalidated and prohibited in cases where they resu lt in restriction of competition and/or infringe
rights of legal entities and natural persons.
Mechanisms of state regulation of prices on goods (works, services) of market agents of
monopolistic standing on certain markets shall be implemented by the decision of the authorized body
only in cases where the market agent holding a monopolistic standing in a certain market violated
norms set out in the monopoly legislation, aimed at restriction of competition, and misuses its powers
of the dominating participant in the market relations.
- Mechanisms of Development and Implementation of Policies, Influencing Trade in
Goods and Services
- Executive, Legislative, and Judicial
The Republic of Kazakhstan is a unitary state with a presidential form of government.  The
state power in the Republic of Kazakhstan has three branches: legislative, executive, and judicial.
The President is the Head of State. Legislative power in the Republic of Kazakhstan is
performed by the President and the Government of the Republic of Kazakhstan.  The President shall
be elected by universal, equal and direct suffrage under a secret ballot for a seven-year term.  The
President shall have the right to appoint and relieve of positions, both individual members and groups
of members of the Government, including the Prime-Minister (approved by the Parliament), andMinisters.  Also, the President shall appoint three of seven members of the Constitutional Council,
and seven of 39 members of the Upper Chamber of the Parliament, heads of local executive bodies in
oblasts, cities of Republican significance, and the capital, all heads of diplomatic representative
offices of the Republic of Kazakhstan, top officials of the Armed Forces, the Chairman and two
members of the Committee for Control over Execution of the Republican budget, and the StateSecretary of the Republic of Kazakhstan.  Upon ap proval of both chambers of the Parliament, the
President shall appoint the Chairman of the National Bank.  The General Prosecutor and the Chairman
of the National Security Committee shall be appointed by the President upon approval of the Senate.
The President shall form the Security Council, and the Supreme Court Council.
The President of the Republic of Kazakhstan has the right to set priorities for consideration of
draft laws, and assign a top-priority status to any draft law.  A draft law with a top-priority status shall
be considered by the Parliament of the Republic of Kazakhstan  within 1 month following itssubmission.  The President of the Republic of Kazakhstan shall sign laws, submitted by the Senate,
within 15 days with subsequent promulgation or return the law in full or separate articles thereof to
the Parliament of the Republic of Kazakhstan for further consideration to be completed within a term
of one month.  After the law or separate articles thereof have been re-considered, or upon receipt of
the confirmation of the Parliament of the Republic of Kazakhstan on its earlier decision, the Presidentof the Republic of Kazakhstan shall sign the law within seven days.  In cases where the Parliament
failed to incorporate President's comments in th e Law, the Law shall be viewed as not adopted or
adopted in the form proposed by the President of the Republic of Kazakhstan.  The Laws of the
Republic of Kazakhstan shall come into force in a term of ten calendar days following their first
publication, unless the laws or acts on implementation of these laws specify different terms forenactment.  The veto may be overridden by the vote  of two thirds of all members of both chambers of
the Parliament.  The Parliament may delegate its legislative powers to the President for a term of noWT/ACC/KAZ/40
Page 10
more than one year. The President may dissolve the Parliament in the following cases: if disputes
between the chambers of the Parliament or betwee n the Parliament and other branch of state power
result in a political crisis; if the Parliament presents the vote of non-confidence to the Government and
if the Parliament refuses to authorize the candidature of the Prime-Minister of the Republic of
Kazakhstan two times.  Based on and in pursuance of the Constitution and laws of the Republic ofKazakhstan, the President of the Republic of Kazakhstan shall have the right to issue decrees and
resolutions binding in the entire territory of the Republic of Kazakhstan.  In the case, stipulated in
Sub-Paragraph 4 Article 53 of the Constitution of the Republic of Kazakhstan, the President of the
Republic of Kazakhstan shall issue laws, and statutory orders (under conditions, set out in Paragraph 2
Article 61 of the Constitution), and take decisions on holding of the Republican referendum.
The Government is responsible before the President of the Republic of Kazakhstan  and
accountable before the Parliament  of the Republic of Kazakhstan in cases, stipulated in Sub-Paragraph 6 Article 53 of the Constitution of the Republic of Kazakhstan. Members of the
Government are accountable before the Chambers of the Parliament in cases, stipulated in Sub-
Paragraph 6 Article 57 of the Constitution of the Republic of Kazakhstan.  The Prime-Minister
organizes and leads activities of the Government and is personally responsible for its operation.  The
Government develops and implements main issues relating to social and economic national policies,tenability, national security, and protection of public order; provides for and organizes state property
management; develops measures on foreign trade of the Republic of Kazakhstan.  The Government of
the Republic of Kazakhstan shall, within its co mpetence, enact resolutions binding in the entire
territory of the Republic of Kazakhstan, submit draft laws to the Majilis of the Republic of
Kazakhstan, and enforce adopted laws.  The Prime-Minister of the Republic of Kazakhstan issuedecrees binding in the entire territory of the Republic of Kazakhstan.  The President may invalidate or
suspend, in part or in full, acts of the Government and Akims of oblasts, cities of Republican
significance, and the capital of the Republic of Kazakhstan.   The authority of the Government shall
expire at the moment of expiration of the term of service of the President, unless terminated earlier by
the President of the Republic of Kazakhstan.
- Legislative
The Parliament is a bicameral body, represented by the Upper Chamber – the Senate, and the
Lower Chamber – the Majilis.  The Majilis consists of 77 deputies, 67 of which represent one
mandate constituencies, while the remaining ten are elected based on party lists by universal, equal
and direct suffrage under a secret ballot for a term of five years.  The deputies of the Senate are
elected for a term of six years, while a half of them is re-elected every three years, excluding seven
deputies appointed by the President. Joint meetings of deputies of all representative bodies shall berequired for election of two representatives per each oblast, city of Republican significance, and the
capital.
In the course of joint bicameral meetings, the Parliament of the Republic of Kazakhstan may
introduce changes and amendments, suggested by the President, to the Constitution of the Republic of
Kazakhstan.  Also, the Parliament may adopt constitutional laws, introduce changes and amendments;approve, change and amend the Republican budget, and initiate the Republican referendum.  On
unicameral meetings the Parliament may: adopt laws "regulating fundamental social relations", and
set framework principles and norms in the process of their subsequent consideration by the Majilis
and the Senate.  The Parliament shall ratify and denounce international treaties and settle issues on
state loans and provision of economic or other forms of support by the Republic of Kazakhstan; adoptand cancel taxes and charges.
The Senate is, inter alia,  the only body responsible for election and dismissal, at the initiative
of the President of the Republic of Kazakhstan, of the Chairman of the Supreme Court, chairmen of
chambers, and judges of  Supreme Court of the Republic of Kazakhstan.  The Majilis  is, inter alia,  theWT/ACC/KAZ/40
Page 11
only body responsible for consideration of draft laws, declare elections of the President of the
Republic of Kazakhstan and bring charges against the President of the Republic of Kazakhstan for
high treason.
- Judicial
The judicial power in the Republic of Kazakhstan is enforced by proceedings ensuing from
civil, criminal, and other legislation.  The Supreme Court of the Republic of Kazakhstan is the
supreme body on civil, criminal and other cases, exercising supervisory powers in relation of
subordinate courts of general jurisdiction, including supervision of their activities within limits set by
the legislation and provision of explanations and clarifications on issues relating to court practices.
The Supreme Court act as a nisi prius for cases stipulated by the legislation; as a court of appeal for
cases examined in the first instance by oblast courts; considers cases for supervisory purposes, and
cases relating to new evidence, previously processed by lower level courts and the Supreme Court;studies and compiles practices relating to application of laws and other normative legislative acts of
the Republic of Kazakhstan; enacts normative decrees containing clarification on issues of court
practices; develops proposals on improvement of laws and other normative legislative acts; manages
and analyzes forensic statistical data.  The  Supreme Court includes the Chairman, chairmen of
chambers, and judges, and consists of the Plenum, Presidium, chambers on civil, economic, andcriminal cases, as well as the military chamber and the Consultative Council.
Oblast courts, Astana and Almaty Municipal Court, and Court Martial represent the next level
below the Supreme Court. Oblast courts, Astana and Almaty Municipal Courts shall consider cases
within their competence as nisi prius courts, courts of appeal, courts of cassation; cases of supervisory
nature and cases involving new evidence; supervise rayon (city) courts; keep and analyze forensicdata; study and structure results of court practices, and perform other functions stipulated by the
legislation.  On the analogy of the Supreme Court, Oblast courts include the presidium and chambers.
Rayon courts shall act as nisi prius  courts for consideration of all cases, excluding cases within
competence of other courts under the law.  Unlike the Supreme Court and Oblast courts, rayon courts
are not subdivided into chambers. Finally, Courts Martial consider cases within their competenceunder the law.
The Republic of Kazakhstan does not have the Constitutional Court per se .  However, if the
court comes to a decision that a particular law or other normative legislative act infringes human
rights and freedoms set out in the Constitution of the Republic of Kazakhstan, it shall suspend court
proceedings, and inform the Constitutional Council of the unconstitutionality of the above.   The
Constitutional Council may declare the law or bylaw unconstitutional and, as such, void of legal
force, and adopt a final and unappealable normative resolution enacted on the day of adoption to beenforced in the entire territory of the Republic of Kazakhstan.
- Governmental Bodies Responsible for the Development and Implementation of Policies,
Affecting Foreign Trade
The Government is responsible for the development of economic policies of the Republic of
Kazakhstan, including policies on foreign trade, codified in draft laws, regulations, and decrees,prepared by the governmental "Working Groups", which as a rule consist of representatives of the
Ministry of Justice, Ministry of Industry and Trad e, Ministry of Finance, Ministry of Energy and
Mineral Resources, Agency of the Republic of Kazakhstan for Regulation of Natural Monopolies and
Protection of Competition, etc..  General policies in the sphere of foreign relations shall be developed
by the Ministry of Foreign Affairs of the Republic of Kazakhstan. General economic policies of theGovernment, include foreign economic policies, shall be developed and coordinated through the
Ministry of Industry and Trade of the Republic of Kazakhstan, while foreign economic policiesWT/ACC/KAZ/40
Page 12
relating to the CIS member-countries shall be coordinated with the Committee on Economic Issues of
the CIS Economic Council.
The Ministry of Industry and Trade of the Republic of Kazakhstan is the chief public body,
responsible for the development of national policies in the sphere of international trade, including
proposals on customs duties and tariffs for subsequent implementation by the Agency of the Republicof Kazakhstan for Customs Control.  Also, the Ministry of Industry and Trade of the Republic of
Kazakhstan is responsible for issuing of import and export licenses.  The national monetary policy is
determined by the Ministry of Finance of the Republic of Kazakhstan.  Regulation of exchange
transactions is the responsibility of the National Bank of the Republic of Kazakhstan, implemented by
means of licensing of exchange operations. The Investment Committee of the Ministry of Foreign
Affairs of the Republic of Kazakhstan is responsible for attraction and distribution of foreign
investments.
- Local administration and self-government bodies
The Constitution of the Republic of Kazakhstan recognizes local self-government bodies in
the Republic of Kazakhstan, responsible for independent management of local issues based on vox
populi. The decentralization of power is performed on several levels: from central level to oblast level
to rayon level. Local state administration is performed by local representative bodies (Maslikhats) andexecutive bodies (Akims).  Akims of oblasts, cities of the Republican significance, and the capital are
appointed by the President of the Republic of Kazakhstan. Akims of other administrative units are
appointed under procedures, determined by the President of the Republic of Kazakhstan.  Deputies of
Maslikhats shall be elected for a term of four years based on universal, equal, direct suffrage by secret
ballot.  Maslikhats shall:
- adopt plans, economic, and social programs for the development of controlled areas,
local budget, and budget execution reports;
- settle arising local administrative issues within their competence;
- analyze reports submitted by heads of local executive bodies on issues within the
competence of Maslikhats;
- establish permanent committees and other structural sections of Maslikhats, hear their
operating statements;  settle other issues arising from organizational activities of
Maslikhats; and
- exercise other authorities, stipulated in the legislation of the Republic of Kazakhstan,
aimed to protect rights and legitimate interests of the population.
Local executive bodies shall:
- prepare plans, economic, and social programs for the development of controlled areas,
develop the local budget, and ensure its execution;
- manage communal property;
- appoint and relieve heads of local executive bodies, settle other issues relating to
organization of activities of local executive bodies; and
- exercise other authorities relating to local public administration, stipulated by the
legislation of the Republic of Kazakhstan.
- International Treaties
Under the Vienna Convention on Rights of International Treaties and the legislation of the
Republic of Kazakhstan,  an international treaty of the Republic of Kazakhstan is an international
agreement, concluded between the Republic of Kazakhstan and a foreign country (foreign countries)or an international organization in writing, and covered by provisions of the international law,WT/ACC/KAZ/40
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irrespective of whether the agreement is contained in one document or in a series of related
documents, and irrespective of its title.
International treaties ratified by the Republic of Kazakhstan shall have priority over its
national legislation and shall apply directly, except for instances where implementation of the
provisions of the international treaty requires prior publication of the law.  The WTO AccessionSchedule of the Republic of Kazakhstan, containing the list of obligations of the Republic of
Kazakhstan, shall have the status of an international treaty.  Hence, it shall be viewed as the law in
force in the Republic of Kazakhstan subject to ratification by the Parliament of the Republic of
Kazakhstan.
International treaties, to which the Republic of Ka zakhstan is party, shall be fulfilled in full.
The President of the Republic of Kazakhstan acts as a guarantor of fulfillment of treaties concluded
by the Republic of Kazakhstan, and undertaken obligation.  The Government of the Republic ofKazakhstan takes steps to enforce fulfillment of enacted international treaties of the Republic of
Kazakhstan, while general supervisory functions are exercised by the Ministry of Foreign Affairs of
the Republic of Kazakhstan.
- Provisions Affecting Trade in Goods
- Registration
Under the Decree of the President of the Republic of Kazakhstan No. 2021 of
11 January 1995 "On Liberalization of Foreign Economic Activities", all economic agents of the
Republic of Kazakhstan shall have the right to engage in foreign trade.
Registration of legal entities in the Republic of Kazakhstan is regulated by the Statutory
Order of the President of the Republic of Kazakhstan No. 2198 of 17 April 1995 "On StateRegistration of Legal Entities", and other legislative acts.  The state registration of legal entities
comprises checks of consistency of charter and other documents submitted under the registration
procedures with the legislation of the Republic of Kazakhstan; issue of a certificate of registration and
assignment of a registration number; entry of data on legal entities in the integrated State Register.
Article 2 of the Statutory Order defines tasks and objectives of the state registration.  Article 3 of theStatutory Order requires state registration of all legal entities, established in the Republic of
Kazakhstan, irrespective of purposes of establishment, type of performed activities, and parties
involved.  Affiliates and representations of legal entities located in the Republic of Kazakhstan shall
be subject to registration for record purposes, not resulting in the acquisition of the status of a legal
entity.
The state registration is performed by justice authorities.  The state registration and re-
registration of legal entities, as well as registration and re-registration of affiliates and representativeoffices of legal entities for record purposes shall be performed within 15 days following filling of the
application and all required documents.
Under Article 5 of the Order, reduced procedures of state registration, licensing, and product
certification shall apply to small businesses.  The state registration and re-registration of small
businesses shall be performed within three days, while the term for registration and re-registration ofpublic associations shall not exceed ten working days, following submission of the application and all
required documents.
Natural persons shall have the right to engage in business activities without establishing a
legal entity. Under the Law of the Republic of Kazakhstan "On State Support of Small Businesses",
natural persons of the above category shall be recognized as small businesses. Natural personsWT/ACC/KAZ/40
Page 14
engaged in business activities without establishing a legal entity shall be registered as individual
entrepreneurs with the local tax body,  responsible for areas of their residence.
Under Paragraph 2 of the Resolution of the Government of the Republic of Kazakhstan
No. 1660 of 19 December 2001 "On Adoption of Rates of the Charge on State Registration of Legal
Entities", the following charges on the state registration of legal entities shall apply to theestablishment of:
- legal entities, their affiliates, and representative offices – 20 monthly calculation indexes,
effective on the date of payment;
- budgetary institutions, public enterprises, and condominium owners association, their
affiliates and representative offices - one-monthly calculation index, effective on the date
of payment;
- children's and youth public associations, their affiliates, and representative offices - two-
monthly calculation indexes, effective on the date of payment; and
- legal entities - small businesses, their affiliates, and representative offices – five-monthly
calculation indexes, effective on the date of payment.
The charge applied to the state re-registration of legal entities, their affiliates, and
representative offices, as well as the state re-registration of the above for record purposes, shall beequal to 50 per cent of the corresponding effective rate of the registration charge.
The charge for the issue of copies of certificates of state registration (re-registration),
including state registration (re-registration) for record purposes, to legal entities, listed above, their
affiliates, and representative offices shall be equal to 25 per cent of the corresponding effective rate of
the registration charge.
The charge applied to the state registration of  disestablishment of legal entities, their
affiliates, and representative offices, shall be equal to one monthly calculation index, effective on the
date of payment.  The listed rates shall invariable throughout the entire territory of the Republic of
Kazakhstan.
- Customs Duties
The Republic of Kazakhstan uses the Trade Nomenclature of Foreign Economic Activities –
HS CIS    (HS CIS has been adopted by the Agreement on the uniform Trade Nomenclature of
Foreign Economic Activities of CIS countries  of 3 November 1995), based on the Harmonized
System, developed by the World Customs Orga nization. Presently, the EurAzEs members are
working on transition from the nine digit to ten digit trade nomenclature of the foreign economic
activities.
In order to enable tariff and non-tariff regulation of goods transported across the customs
border of the Republic of Kazakhstan, and set rules for the customs classification of goods in
accordance with the HS CIS, the Decree of the Customs Committee of the Ministry of State Revenue
of the Republic of Kazakhstan (at present, the Agency for Customs Control of the Republic of
Kazakhstan) No. 22 of 22 January 2001 adopted the Rules for classification of goods in accordance
with the Trade Nomenclature of Foreign Economic Activities.
- Import Customs Duties
The import customs tariff rate has been set by the changed and amended Resolution of the
Government of the Republic of Kazakhstan N o. 1389 of 14 November 1996 "On Rates of Import
Duties Levied on Imported Goods", covering 10.5T of items.WT/ACC/KAZ/40
Page 15
Setting of the effective import tariff incorporates  the following factors: the  level of scarcity
of a good, its social impact, possibilities for domestic production, the competitive power of domestic
products, etc..  Implemented tariff polices are also influenced by international obligations and the part
taken by the Republic of Kazakhstan in important political and economic integration processes in
place within the EurAzEs and the CIS. Applications for the review of rates of import customs dutiesshall be filed with the Ministry of Industry and Trade of the Republic of Kazakhstan and shall be
written in a form set by the Resolution of the Government of the Republic of Kazakhstan No. 1389.
Rates of customs duties levied on imported goods shall be set by Government of the Republic of
Kazakhstan based on proposals of the Ministry of Industry and Trade, submitted upon coordination
with all interested ministries and agencies, and shall come into force within 30 days after their official
publication.
Effective customs tariff rates vary between 0 and 30 per cent, except for two categories
relating to ethyl alcohol (HS  2207 10 000 and 2207 20 000), subject to the customs duty of 100 per
cent, but not below €1 and €2 per litre, respectivel y.  Based on the method of collection, customs
duties are subdivided into ad valorem duties set for 9,382 items (87 per cent of the total), specific
duties set for 164 items (2 per cent), and complex set for 1,217 items (11 per cent).
Base rates are applied to countries enjoying most favorable treatment in the Republic of
Kazakhstan, while with respect to goods of an unknown country of origin, base rates are doubled.
The rate of customs duties levied on goods imported from developing countries, covered by
the structure of preferences of the Republic of Kazakhstan, shall be equal to 75 per cent, while goods
imported from least developed countries, covered by the structure of preferences of the Republic of
Kazakhstan, shall be imported at a zero rate of customs duties.
Under bilateral agreements concluded between the Republic of Kazakhstan and CIS countries
(excluding Turkmenistan), goods originating in these countries imported to the Republic of
Kazakhstan shall be exempt from customs duties, except for instances, excluded from the free trade
regime.  These exceptions shall be based on a coordinated nomenclature, and fixed in a Protocol to the
Agreement.  In general, the list of exceptions includes alcoholic products, tobacco goods, sugar, etc.Exceptions from the free trade regime are set for Azerbaijan, Armenia, Georgia, Moldova,
Uzbekistan, and Ukraine.
The list of goods, imports of which to the Republic of Kazakhstan is not covered by the
preferential treatment, is limited and includes salmonidae and sturgeon, caviar; fruit juices; mineral
and aerated water; alcoholic products; tobacco goods; certain types of clothes made of natural skin,
clothes for children, footwear; jewellery, cars, etc.
- Other Import Duties and Fees Levied for Provided Services
The Republic of Kazakhstan has developed the draft Customs Code of the Republic of
Kazakhstan (hereafter - the Code), which incorporates and codifies legal norms, regulating relations in
the customs sphere.  At present, the Code is under discussion in the Parliament of the Republic of
Kazakhstan.
Under the Code, customs clearance fees shall be calculated based on the cost of services
provided by customs bodies.  The Republic of Kazakhstan intends to introduce the minimum and
maximum rate, reflecting direct and indirect costs, while maintaining the ad valorem  rate.
The minimum rate reflecting direct costs includes costs directly connected with customs
clearance of imported goods, namely: wages, bonus payments, and benefits for customs officers.WT/ACC/KAZ/40
Page 16
Indirect costs include all forms of costs, including communal services (electricity, phone
communications, heating, etc.), computer software, and automation procedures, etc..
Table 1 below includes all charges related to customs services.
Table 1
Payment Description Amount Charged Regulation
Charges for customs clearance of goods
carried across the customs  border bynatural persons and legal entities0.2 per cent of customs value Resolution of the Government
of the Republic of KazakhstanNo. 1479 of 7 November 1995.
Charges for customs clearance of goodsand vehicles performed in places other
than those specifically designed for
customs clearance and  at a time otherthan official working hours of customsbodies0.4.per cent of customs value Resolution of the Government
of the Republic of Kazakhstan
No. 1479 of 7 November 1995.
Charges for customs clearance of goods
in transit by rail transportUS$14 Resolution of the Government
of the Republic of KazakhstanNo. 1479 of 7 November 1995.
Charges for customs clearance of goodsfor presentation in exhibitions, fairs,
contests, assemblies, workshops,
seminars, international meetings andother gatherings of the same nature(excluding expositions held in industrialsites or sites of other commercialactivities with the view to sell imported
(exported) goods), as well as of
accessories and materials intended foruse in the course of presentations ofgoods, international meetings,conferences, and congresses€5 per consignment Resolution of the Government
of the Republic of Kazakhstan
No. 1479 of 7 November 1995.
Customs charges for storage of goods in
warehouses for temporary storage,
established by the customs bodies,
except for goods under HS (CIS) 1001-1109 – 0.2 per cent of customs value per24 hours€0.04 per 1 kg. gross weight per
24 hoursResolution of the Government
of the Republic of Kazakhstan
No. 1479 of 7 November 1995.
Charges for storage of vehicles,
transported as goods€3 per unit per 24 hours Resolution of the Government
of the Republic of KazakhstanNo. 1479 of 7 November 1995.
Customs charges for storage of goods in
customs warehouses, established by
customs bodies€0.02 per 1 kg. gross weight per
24 hoursResolution of the Government
of the Republic of Kazakhstan
No. 1479 of 7 November 1995.
including:
- storage in specialized quarters
(involving use of specificequipment, maintenance of
temperature levels, etc.)
- storage of vehicles, transported as
goods€0.03 per 1 kg. gross weight per
24 hours
€ 3 per unit per 24 hoursResolution of the Government
of the Republic of KazakhstanNo. 1479 of 7 November 1995.WT/ACC/KAZ/40
Page 17
Payment Description Amount Charged Regulation
Customs charges for customs escort of
goods5 calculation indexes for up to 50
km.  10 calculation indexes for 50to 200 km.  15 calculation indexesfor 200 to 400 km.  20 calculationindexes for 400 to 600 km.  25calculation indexes for 600 to 800
km.  30 calculation indexes for
800 to 1,000 km.  35 calculationindexes for 1,000 to 1,500 km.  40calculation indexes for 1,500 to2,000 km.  50 calculation indexesfor  a distance above 2,000 km.Resolution of the Government
of the Republic of KazakhstanNo. 1479 of 7 November 1995.
Charges for the issue of a licenses for
establishment of a customs warehouse
of:up to and including 1,000 squaremeters  from 1,000 up to and including2,000 sq. meters- above 2,000 sq. meters€9,000
€14,000€19,000Resolution of the Government
of the Republic of Kazakhstan
No. 1479 of 7 November 1995.
Charges for the issue of a license for
establishment of a duty-free store€20,000 Resolution of the Government
of the Republic of Kazakhstan
No. 1479 of 7 November 1995.
Charges for the issue of a license forestablishment of a free warehouse of:up to 1,000 sq. meters- above 1,000 sq. meters€19,000
€28,000Resolution of the Government
of the Republic of KazakhstanNo. 1479 of 7 November 1995.
Charges for the issue of a license forestablishment of a temporary warehouse€8,000 Resolution of the Government
of the Republic of KazakhstanNo. 1479 of 7 November 1995.
Charges for the issue of a license of a
customs broker€5,000 Resolution of the Government
of the Republic of Kazakhstan
No. 1479 of 7 November 1995.
Charges for the issue of a license of acustoms carrier€5,000 Resolution of the Government
of the Republic of KazakhstanNo. 1479 of 7 November 1995.
Charges for the issue of a certificate of aqualified expert on customs clearance€200 Resolution of the Government
of the Republic of KazakhstanNo. 1479 of 7 November 1995.
Charge for a preliminary decision €50 Resolution of the Government
of the Republic of Kazakhstan
No. 1479 of 7 November 1995.
- Other duties levied on imported (not domestic) goods, except for duties levied on
provided services
The Republic of Kazakhstan does not levy duties and fees on imported goods other than
import customs duties currently in place, approved by the Resolution of the Government of the
Republic of Kazakhstan No. 1389 of 14 November 1997, and fees for provided services.
- Application of Taxes to Imported Goods
Indirect taxes applied to imported goods are a value added tax (VAT) and an excise tax.WT/ACC/KAZ/40
Page 18
- Value Added Tax
Under the Code of the Republic of Kazakhstan  "On Taxes and Other Mandatory Payments to
the Budget" No.209-II of 12 June 2001, VAT shall be levied on goods produced in the Republic of
Kazakhstan and imported to the Republic of Kazakhstan.  The "country of destination" principle used
for collection of indirect taxes is currently applied to all countries, excluding natural gas, oil and gascondensate, imported from the Russian Federation.
The VAT rate is equal to 16 per cent and applied to the volume of taxable turnover.  Export
turnover, except for export of ferrous and non-ferrous scrap, shall be taxed at a zero rate.  A taxable
import value shall include the customs value of im ported goods, determined in accordance with the
customs legislation of the Republic of Kazakhstan,   as well as amounts of taxes and other mandatory
payments to the budget effected for imports of goods to the Republic of Kazakhstan, except for VAT.
The following shall be exempt from VAT:
- imported national currency, and foreign currencies (except for cases where currencies are
imported for numismatic purposes), and securities;
- goods, imported by natural persons within norms for duty-free import, set by the
Government of the Republic of Kazakhstan;
- goods, except for excisable goods, imported as a humanitarian aid in accordance with
procedures, set by the Government of the Republic of Kazakhstan;
- goods, except for excisable goods, imported as charity on the initiative of the State,
national governments, international organizations, including for purposes of technical
assistance;
- 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
excises under international agreements to which the Republic of Kazakhstan is party;
- imported goods, subject to declaration in accordance with the customs legislation of the
Republic of Kazakhstan, under customs treatments providing for tax exemptions;
- imports of drugs, including  medical substances; medical (veterinary) products, including
prosthetic appliances, devices for the deaf-blind, medical and veterinary equipment;
materials and components required for production of drugs and diabetic products, medical
(veterinary) products, including prosthetic appliances, and medical (veterinary)
equipment.  The list of products listed in this Sub-Paragraph shall be approved by the
Government of the Republic of Kazakhstan;
- imports of mail stamps (except for imports for collection purposes);
- imports of raw materials for production of paper currency performed by the National
Bank of the Republic of Kazakhstan and by its subordinate bodies; and
- goods, imported under grants, provided by the State, national governments, and
international organizations.
-E x c i s e s
At present, goods produced in the Republic of Kazakhstan and goods imported to the customs
territory of the Republic of Kazakhstan are subject to different rates of excises.  Tables 2 and 3 list
excise rates levied on excisable goods produced in the Republic of Kazakhstan and imported to the
customs territory of the Republic of Kazakhstan.WT/ACC/KAZ/40
Page 19
Table 2
For the Resolution of the Government of the Republic of Kazakhstan No. 137 of
28 January 2000 (incorporating the latest changes and amendments) Excises Levied on Excisable
Goods Produced in the Republic of Kazakhstan and Imported to the Republic of Kazakhstan
HS
CodeDescription Tax BaseExcise Rates Levied
on Produced GoodsExcise Rates Levied
on Imported Goods
All kinds of spirits (excluding spirits,
sold for the purposes of manufacturing
of alcoholic products; drugs and
pharmaceutical g oods by authorized
holders of licenses issued by theRepublic of Kazakhstan, and spirits
provided for public medical institutions
within limits of set quotas)phys. volume KZT 300 per litre
2€3 per litre Of 2207
22081
Spirits, sold for the purposes of
manufacturing of alcoholic products;
drugs and pharmaceutical goods byauthorized holders of licenses issued bythe Republic of Kazakhstanphys. volume KZT 30 per litre €0.3 per litre
Vodkas and special vodkas phys. volume KZT 100 per litre €1.7 per litre
Strong liqueurs and cordials and other
strong alcoholic beverages (excluding
balms, registered in accordance withrequirements set out in the legislation ofthe Republic of Kazakhstan as drugs)phys. volume KZT 80 per litre €1.7 per litre
Weak liqueurs and cordials and other
weak alcoholic beverages, 12 to 30 percent by volumephys. volume KZT 70 per litre €1.7 per litre
Other weak alcoholic beverages, below
12 per cent by volumephys. volume KZT 30 per litre €0.4 per litre
Cognacs, brandy phys. volume KZT 20 per litre €1.7 per litre22081
Balms, registered in accordance with
requirements set out in the legislation ofthe Republic of Kazakhstan as drugsphys. volume KZT 10 per litre €0.4 per litre
Wine beverages (vinous beverages?) phys. volume KZT 30 per litre €0.4 per litre
Wines (excluding champagne, sparkling
wines,  aerated (pearly) wines)phys. volume KZT 10 per litre €0.4 per litre
Champagne, sparkling wines,  aerated
(pearly) winesphys. volume KZT 20 per litre €0.4 per litreOf
2204,2205,
220600
Wine material, processed phys. volume KZT 10 per litre €0.4 per litre
2203
003Beer phys. volume KZT 7 per litre €0.2 per litre
Tobacco g oods with filter phys. volume KZT 180 per 1,000
units€2 per 1,000 units 24023
Tobacco g oods without filter, other
goods containing tob accophys. volume KZT 100 per 1,000
units€2  per 1,000 units
Of
0301,0302,0303,
0304,
0305,1604
3Caviar of sturgeon and salmonidae value – for
produced goods,customs value –for imported
goods100 per cent 100 per cent
                                                     
1 The nomenclature of products shall be defined both by their HS codes, and descriptions.
2 The amount in Euro terms shall be converted to KZT at the exchange rate of the National Bank of the
Republic of Kazakhstan on the day set by the customs laws for payment of customs charges.
3 The nomenclature of products shall be defined both by their HS codes, and descriptions.WT/ACC/KAZ/40
Page 20
HS
CodeDescription Tax BaseExcise Rates Levied
on Produced GoodsExcise Rates Levied
on Imported Goods
Of
7113,7102 39000,7114,
7116
3Jewelry of gold, platinum or silver value – for
produced goods,customs value –for importedgoods10 per cent 10 per cent
2710002
70-
2710003
603Gasoline (excluding aviation mix) phys. volume based on Table 3 €31 per ton
2710
00610,
271000650,2710
00690
3Diesel fuel phys. volume based on Table 3 0
Of 2709
003Crude oil, including gas condensate phys. volume 0 0
8703 Cars customs value or
engine volume10 per cent, but not
below €0.5 per cubiccm.  (only for cars
with engine volume
above 3,000 cubiccm)
Of9303,9304,9305
3Firearms and blank guns (excluding
firearms and blank guns purchased foruse by officials of public bodies)value – for
produced goods,customs value –for imported
goods00
per table 130-740 monthly calculation indexes (MCI)
Gambling
machine withmoney gains5-25 MCI
Betting Cash
Desk80-200 MCIGambling (excluding lotteries)
Bookmaking Cash
Desk20-100 MCI
Organization and holding of lotteries Declared receipts
minus amountsallocated as prize
money  without
excises10 per centWT/ACC/KAZ/40
Page 21
Table 3
Excise rates for gasoline (excluding aviation mix) and Diesel fuel, produced in the Republic
of Kazakhstan, sold by legal entities and natural persons, engaged in wholesaling and retailing in
gasoline (excluding aviation mix) and Diesel fuel
Excise rate per ton (KZT)
Gasoline (excluding aviation mix)
(HS -   2710 00270,  2710 00360)Diesel fuel (HS -  2710 00610,
2710 00650,  2710 00690)
Wholesaling of oil refineries ingasoline (excluding aviation mix) andDiesel fuel of their own production4,500 540
Wholesaling in gasoline (excluding
aviation mix) and Diesel fuel
performed by legal entities and natural
persons00
Retailing in gasoline (excluding
aviation mix) and Diesel fuelperformed by oil refineries; use forown production needs5,000 600
Retailing in gasoline (excluding
aviation mix) and Diesel fuel
performed by legal entities and natural
persons, use for own operating needs500 60
Excisable goods imported by natural persons within limits set by the Government of the
Republic of Kazakhstan shall be exempt from excises.
Imports of the following goods shall be exempt from excises:Excisable goods required for operation of vehicles, involved in international transportation, en
route  and in the intermediate locations, as well as excisable goods, purchased abroad for repairs of
damages caused by a road accident (breakdown);
Goods damaged prior to being transported across the customs border of the Republic of
Kazakhstan and rendered non-usable as products and materials;
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; ex empted from excises under international agreements
to which the Republic of Kazakhstan is party;
Goods, transported across the customs border of the Republic of Kazakhstan, exempted under
customs treatment set by the customs legislation of the Republic of Kazakhstan, excluding for the
"Issue of goods for free use"; and
Alcohol containing products used in medicine (excluding balms) in containers of no more
than 0.1 litre and registered in accordance with the requirements set out in the legislative acts of the
Republic of Kazakhstan.
At present, the Republic of Kazakhstan is undertaking measures for a stage-by-stage
unification of excise rates for domestic and imported goods.  Unification of excise rates levied on
domestic goods and goods imported to the Republic of Kazakhstan will inevitably result in theWT/ACC/KAZ/40
Page 22
reduction of legal production volumes and increase in the share of the "shadow" turnover.  This, in
turn, will require development of improved mechanisms for administering excises levied on alcoholic
products.  At present, the Ministry of Finan ce of the Republic of Kazakhstan works on the
implementation of account labels.  The completion of the implementation procedures is projected for
1 January 2006.  Excises levied on domestic goods and goods imported to the Republic of Kazakhstanshall be harmonized by 1 January 2006.
- Quantitative Restrictions on Import
Under the Resolution of the Government of the Republic of Kazakhstan No. 1031 of
27 June 1997 "On Licensing of Import of Ethyl Alco hol and Alcoholic Products (Excluding Beer) in
the Republic of Kazakhstan", the share of imported ethyl alcohol and alcoholic products (excluding
beer) shall not exceed 20 per cent of the annual volume of their production in the customs territory of
the Republic of Kazakhstan.  This measure has been implemented to regulate the increased importsflow,  ensure collection of all tax receipts to the budget, and protect the rights of domestic producers
and consumers.  The Republic of Kazakhstan intends to remove this restrictions by the time of
accession to the WTO.
- Import Licensing
The licensing system of the Republic of Kazakhstan regulates import and export of a limited
number of goods.  These include goods in respect of which licensing has been introduced to ensure
protection of human life and health, environmental protection, protection of public order, as well as
for reasons of national security.
The list of goods and procedures for import licensing of goods (works, services) in the
Republic of Kazakhstan, have been adopted by the Resolution of the Government of the Republic ofKazakhstan No. 1037 of 30 June 1997.
Import licensing shall extend to chemical products for plant protection; veterinary drugs and
equipment;  narcotic, psychotropic products, and precursors; poisons; civil and in-service firearms and
cartridges, explosives, detonation, and pyrotechnical devices; industrial waste; x-ray units, devices
and equipment using radioactive substances and isotopes; raw opium; wine; ethyl alcohol; complexalcoholic half-finished products, excluding perfume based products, used in beverages; white spirit;
other light distillates, average distillates for specific processing and chemical transformations.
Import licenses for the above products shall be issued by the Ministry of Industry and Trade
of the Republic of Kazakhstan upon preliminary coordination with corresponding ministries and
agencies, except for import licensing for ethyl alcohol and alcoholic products (excluding beer),
performed by the Ministry of Finance of the Republic of Kazakhstan.  Licenses shall be valid for a
term of no more than 12 months, but may be renewed at the request of an applicant to allowfulfillment of contractual obligations for a term of no more than one calendar year.
-C u s t o m s  V a l u a t i o n
Under the Law of the Republic of Kazakhstan "On Customs in the Republic of Kazakhstan",
customs valuation of imported goods shall be based on:
- cost of a contract on imported goods;
- cost of a contract on identical goods;
- cost of a contract on homogenous goods;
- deduction of costs;
- addition of costs; andWT/ACC/KAZ/40
Page 23
- reserve.
As a general rule, customs valuation is based on the cost of a contract on imported goods.
Where application of this method is impossible, other methods shall be used in the order shown above
until determination of the customs value becomes possible.  Customs valuation of goods imported to
the customs territory of the Republic of Kazakhstan is based on the principles of customs valuation setout in Article VII of GATT and the Agreemen t on Implementation of Article VII of GATT.
To trigger further improvement of customs valuation procedures applied to imported goods
and implementation in the Republic of Kazakhstan of an independent examination system, the
Government of the Republic of Kazakhstan adopted the Rules for Independent Examination of
Consistency of Customs Value, Quality, and Quantity of Imported Goods (the Resolution of the
Government of the Republic of Kazakhstan No. 782 of 16 July 2002).  These Rules determine
procedures for independent examination of consistency of the customs value, quality, and quantity ofgoods imported to the Republic of Kazakhstan.   
The Decree of the Customs Committee of the Ministry of State Revenue of the Republic of
Kazakhstan No. 42 of 6 February 2001 "On Customs Value of Goods, Imported to the Customs
Territory of the Republic of Kazakhstan" adopted:
- guide-lines on customs valuation procedures, control over correctness of a determined
customs value; procedures and conditions for declaration and correction of the customs
value of goods; and
- rules for completion of the declaration of customs value and forms for correction of
customs value, payment of customs duties, and taxes.
To trigger further improvement of customs valuation procedures applied to imported goods
and implementation in the Republic of Kazakhstan of an independent examination system, the
Government of the Republic of Kazakhstan adopted the Rules for Independent Examination of
Consistency of Customs Value, Quality, and Quantity of Goods Imported to the Republic of
Kazakhstan (the Resolution of the Government of the Republic of Kazakhstan No. 782 of
16 July 2002).  These Rules determine procedures for independent examination of consistency of thecustoms value, quality, and quantity of goods imported to the Republic of Kazakhstan.
- Rules Relating to the Determination of Origin of Goods
The Republic of Kazakhstan uses a uniform system for determination of the country of origin
of all goods for tariff and non-tariff measures, applied to imported and exported goods.  The existing
system has been developed by the World Customs Organization and is covered by the Kyoto
Convention.
The legislative acts containing rules for determination of the country of origin of goods
include: the Rules for Determination of the Country of Origin of Goods, the Agreement on Rules for
Determination of Origin of Goods of Developing Countries when Granting Tariff Preferences under
the General System of Preferences'; the Resolution of the Government of the Republic of Kazakhstan
No. 333 of 17 March 1997 "On Adoption of the Agreement on Rules for Determination of Origin of
Goods of Developing Countries when Granting Tariff Preferences under the General System ofPreferences"; the Decree of the Customs Committee of the Ministry of State Revenue of the Republic
of Kazakhstan "On Procedures for Determination of  Origin of Goods of Developing Countries when
Granting Tariff Preferences under the General System of Preferences"; the Decree of the Committee
on Standardization, Metrology, and Certification of the Ministry of Industry and Trade of the
Republic of Kazakhstan No. 322-a of 7 September 2001 "Guidelines on Determination of the Countryof Origin of Goods Exported from the Republic of Kazakhstan"; the Resolution of the Government ofWT/ACC/KAZ/40
Page 24
the Republic of Kazakhstan No. 1783 of 29 Novemb er 2000 "On Approval of Guidelines on Quality
and Safety of Food Materials and Food Products".
The country of origin shall be determined for purposes of tariff and non-tariff measures of
regulation of imports to and exports from the Republic of Kazakhstan.  The country of origin is the
country where a good was produced in full or underwent  significant processing, in accordance withcriteria set out in the Law of the Republic of Kazakhstan "On Customs in the Republic of
Kazakhstan" for cases where a good produced jointly by two or more countries. Goods produced in
one country include natural products, e.g. live animals, mineral resources, fruits, etc., while goods
processed to a significant degree comprise goods produced jointly by two or more countries.  In the
latter case, the degree of processing is determined by numerous criteria, e.g. changes in tariff heading,
added value, and listed operations involved in processing procedure.
Several countries, customs unions, regions, or parts of countries may be viewed as the country
of origin, provided that this is justifiable for purposes of determination of the country of origin.
Imports of goods to the customs territory of the Republic of Kazakhstan shall require a
certificate of origin only for instances where:
- preferences are granted in respect of the customs tariff on goods, transported across the
territory of the Republic of Kazakhstan;
- the customs body of the Republic of Kazakhstan has sufficient grounds to believe that
goods originate in a country, imports of which shall be subject to non-tariff measures; and
- such requirement is stipulated by international agreements to which the Republic of
Kazakhstan is party, as well as by the legislation of the Republic of Kazakhstan on
sanitary and epidemiological safety, environmental protection, protection of humanhealth, consumer rights, public order , national security, and other fundamental interests of
the Republic of Kazakhstan.
A certificate of origin shall not be required for any other cases.
A certificate of origin shall state that the good in question originates in a given country, and
contain:
- a written declaration of the applicant certifying that the good conforms with the
corresponding criteria of origin;
- a written certification, issued by the competent body of the country of export, to the effect
that the information contained in the certification of origin is correct and reliable.
The customs body of the Republic of Kazakhstan shall have the right to prohibit
transportation of the good across the customs body of the Republic of Kazakhstan only where it has
sufficient grounds to believe that the good originates in a country, whose goods may not be allowedfor transportation under international agreements to which the Republic of Kazakhstan is party, or
under the legislation of the Republic of Kazakhstan.  The grounds for the above action shall be made
available to the applicant in writing.
Failure to provide a correctly drafted certificate (hygiene certificate) or information on the
origin of a good shall not be viewed as a sufficient reason for denial of transportation of the goodacross the customs border of the Republic of Kazakhstan.
- Pre-shipment Inspection
The Republic of Kazakhstan does not employ pre-shipment inspections.WT/ACC/KAZ/40
Page 25
- Anti-Dumping, Countervailing, and Safeguard Measures.
The use of anti-dumping, safeguard, and countervailing measures in the Republic of
Kazakhstan is regulated by the Laws of the Republic of Kazakhstan "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 Subsidies and Countervailing Measures" of
No. 441-1 of 16 July 1999.
The above laws define rules and procedures for use of anti-dumping, safeguard, and
countervailing measures for purposes of protection of the domestic market against adverse effects of
the increased share of imports or supplies of dumped or subsidized goods.
Under the above laws, anti-dumping, safeguard, and countervailing duties may only be
introduced when there is evidence that serious damages have been incurred by or are highly possible
for domestic producers, resulting from the increased share of imports, dumping, or subsidizedimports.  These measures shall be implemented for a limited term, sufficient for remedial actions
relating to incurred damages and adaptation of domestic producers to the competitive environment.
These Laws implement norms and requirement set out in the corresponding WTO
Agreements.
- Export Customs Duties
Export customs duties have been introduced for a limited number of goods and shall be
applied based on the principle of the most favorable treatment, except for goods, exported to the
countries of the Customs Union. Any changes in rates of export customs duties shall be officially
published.
In order to balance domestic demand on wool, the Resolution of the Government of the
Republic of Kazakhstan No. 841 of 5 June 2000 sets export customs duties on goods exported to
countries, other than member-countries of the Customs Union, including: cattle hides or hides of
animals of the family Equidae  (10, but not below €90 per 1,000kg), sheepskins or lambskins (10, but
not below €70 per 1,000kg), other raw hides and sk ins (10, but not below €60 per 1,000kg), uncarded
and uncombed wool, restored wool (10, but not below €50 per 1,000kg).
In order to normalize the market of ferrous and non-ferrous scrap and waste, ensure supply of
raw materials to domestic enterprises, the Resolutions of the Government of the Republic of
Kazakhstan No. 1713 of 14 November 2000, No. 841 of  5 June 2000 (amended) set export customs
quotas on iron-and-steel scrap and waste (20, but no t below €15 per ton), iron-and-steel products (18,
but not below €15 per ton), copper scrap and wa ste (20, but not below €210 per ton), secondary
unprepared aluminum (10, but not below €80 per ton), parts of railway and tram locomotives (18, but
not below €15 per ton).
Rates of customs duties levied on exported goods shall be set by the Government of the
Republic of Kazakhstan based on proposal of the Ministry of Industry and Trade, submitted upon
coordination with all interested ministries and agenci es, and shall enter in force in 30 days after their
official publication.
- Export Restrictions
For the purposes of preservation of forests, reduction of instances of illicit lumbering, the
Resolution of the Government of the Republic of Kazakhstan No. 785 of 16 July 2002 prohibitsWT/ACC/KAZ/40
Page 26
export from the Republic of Kazakhstan of lumber, sawed timber, and wood materials, listed under
groups 4401, 4404, 4406-4409, and 4418.
In pursuance of the Agreement concluded between the Republic of Kazakhstan and the
European Union on trade in products of steel, a number of quantitative restrictions have been
introduced on specific types of steel products exported from the Republic of Kazakhstan to theEuropean Union countries.
- Export Licensing
The licensing system of the Republic of Kazakhstan regulates import and export of a limited
number of goods.  These include goods in respect of which licensing has been introduced to ensure
protection of human life and health, environmental pr otection, protection of law and order, as well as
for reasons of national security.
The list of goods and Procedures for Export Licensing of Goods (Works, Services) in the
Republic of Kazakhstan, have been adopted by the Resolution of the Government of the Republic of
Kazakhstan No. 1037 of 30 June 1997.
Export licenses for the above products are issued by the Ministry of Industry and Trade of the
Republic of Kazakhstan upon preliminary coordination with corresponding ministries and agencies.
Licenses shall be valid for a term of no more than 12 months, but may be renewed at the request of anapplicant to allow fulfilment of contractual obligations for a term of no more than one calendar year.
Goods, exports of which shall be subject to li censing, include: wild animals; wild growing
plant; veterinary drugs and equipment; ivory, horns, hoofs, antlers of Siberian stags, corals; vegetable
and animal raw materials of recognized medical value; narcotic, psychotropic products, and
precursors; poisons; yellow phosphorus; civil and in-service firearms and cartridges; explosives,detonation, and pyrotechnical devices; semi-precious stones and products thereof.
Apart from the above list of goods subject to licensing, there is another list of goods, export of
which is subject to licensing in pursuance of the international obligations of the Republic of
Kazakhstan.  These include several types of textile and steel products.
- Export Subsidies
The Republic of Kazakhstan is a land-locked country.  Its remoteness from major commodity
markets, lack of direct access to major commercial seaports, and the vastness of its territory, all result
in a very high share of transportation costs in the products value.  This situation requires
implementation of support measures aimed at reduction of transportation costs relating to exports of
Kazakhstani products.
In this connection, the Agency of the Republic of Kazakhstan for Regulation of Natural
Monopolies, Protection of Competition, and Suppo rt of Small Businesses has developed and
implemented the mechanism for the regulation of setting and cancellation of decreasing coefficients
for tariffs on cargo transportation by rail transp ort providing for certain railway tariff relief.
In 2001-2002, relief has been granted for exported iron ore products, rolled products, coal,
sulfuric acid, copper ore, and fuel oil.
Also, the Development Bank of the Republic of Kazakhstan have granted soft loans for export
of non-ferrous products and gold.WT/ACC/KAZ/40
Page 27
- Internal Policies, Affecting Trade in Goods
- Policies on Support of Industry
The Law of the Republic of Kazakhstan No. 373-II of 8 January 2003 "On Investments"
stipulates state support of private investments to t op-priority activities under contracts concluded with
the authorized body for provision of the following types of investment preferences: investment taxpreferences, exemption from customs duties, state natural grants.
Investment preferences are granted to investors operating in top-priority sectors of the
national economy, for a term calculated based on the amount of investments into fixed assets of legal
entities.
Investment preferences are granted if:
- investment activities of the investor are listed among the top-priority forms of activities,
- the investor places investments in fixed assets of a legal entity of the Republic of
Kazakhstan in order to enable establishment of new enterprises, expansion and
modernization of existing enterprises involving implementation of advanced
technologies; and
- the investor submits a complete set of required documents, proving his financial,
technical, and organizational capacities for the implementation of his investment project.
The Development Bank of the Republic of Ka zakhstan provides for soft loans for the
implementation of investment projects in the priority sectors of the national economy, including
machine building, metallurgical industry, textile industry, tanneries, manufacturing of electric and
electronic devices, as well as soft loans secured by the guarantee of the State.
Also, the Decree of the Chairman of the Agency of the Republic of Kazakhstan for the
Regulation of Natural Monopolies, Protection of Competition, and Support of Small Businesses
No. 24-ОД of 30 September 1999 "On Approval of Procedures for the Regulation of Setting and
Cancellation of Decreasing Coefficients for Tariffs on Cargo Transportation by State Regulated Rail
Transport" provides for allowances on tariffs applied to services provided by natural monopolies.
In accordance with the Decree, decreasing coefficients are set for tariffs on transportation of
products of a particular economic sector based on the calculation of economic efficiency of this
measure for the State, as well as economic practicability for the carrier and the client.  The main
criteria, determining practicability of setting decreasing coefficients are:  preservation of tax payments
to the budget, attraction of new cargo flow – increase of the volume of freight traffic, possibility to
use unutilised or under-utilised segments, and the level of environmental safety of by-products of the
industrial production.
Set decreasing coefficients are applied if the client has no accounts receivable or if they are
settled in accordance with the schedule of payments, and if the volume of freight traffic increased
(remained at the same level) as compared with the preceding period.  Decreasing coefficients are set
for a certain period of time.  The criteria determining practicability of cancellation of decreasing
tariffs are: economic inefficiency of further use of decreasing tariffs for the State and/or the carrier, or
inconsistency with the main criteria.
In 2001-2002 decreasing coefficients have been set for tariff applied to the railroad
transportation of products of ferrous and non-ferrous metallurgical industry (iron ore products, rolled
products, coal, sulfuric acid, copper ore) performed within the Republic of Kazakhstan or for export
purposes.WT/ACC/KAZ/40
Page 28
- Technical Barriers to Trade
The Committee for Standardization, Metrology, and Certification of the Ministry of Justice of
the Republic of Kazakhstan (hereafter – the Gosstandart) is the authorized public body in the sphere
of standardization, metrology, and certification.
The Gosstandart is the authorized body responsible for adoption, cancellation, and alteration
of standards; record of standards and dissemination of the information on standards; accreditation of
domestic and foreign certification bodies, operating in the Republic of Kazakhstan; control over
fulfilment of obligatory requirements set out in standards, issue of orders (on remedial actions relating
to discovered violations, prohibition to supply, sell, or use tested products, suspension of production);
establishment of the national systems of standardization, unification of measures, and certification;
representation of the Republic of Kazakhstan in international organizations for issues relating to
standardization, metrology, and certification.
Any legal entity or foreign legal entity irrespective of its property category shall have the
right to apply for accreditation to provide certification and certification testing services.  Accreditation
procedures shall be the same both for foreign and local legal entities.
In accordance with existing intergovernmental ag reements on standardization, metrology, and
certification, the Republic of Kazakhstan recognizes certificates issued by certification agencies ofAzerbaijan, Armenia, Georgia, Kyrgyzstan, Russia  and Ukraine, Tajikistan, Belarus, Uzbekistan,
Moldova, and Turkmenistan.
The Gosstandart includes subordinate state enterprises: the 'Standardization and Certification
Institute of the Republic of Kazakhstan', and the 'Institute of Metrology of the Republic of
Kazakhstan'.
The Gosstandart manages the registers of the national systems of standardization,
certification, and unification of measures.
Basic legal norms on regulation of relations in the sphere on standardization, metrology, and
certification are contained in the following legislative acts:
- the Law of the Republic of Kazakhstan N o. 433-1 of 16 July 1999 "On Standardization";
- the Law of the Republic of Kazakhstan N o. 434-1 of 16 July 1999 "On Certification"
(changed and amended under the Laws of the Republic of Kazakhstan No. 141-II of
15 January 2001; No. 230-II of 11 July 2001; No. 272-II of 15 December 2001);
- the Resolution of the Government of the Republic of Kazakhstan No. 1787 of
29 November 2000 "On Control over Product Conformity in the Republic of Kazakhstan"
(changed and amended by the Resolutions of the Government of the Republic of
Kazakhstan No. 407 of 5 April 2002; No. 888 of 8 August 2002);
- the Resolution of the Government of the Republic of Kazakhstan No. 904 of 2 July 2001
"On Issues Relating to the Committee on Standardization, Metrology, and Certification of
the Ministry of Industry and Trade of the Republic of Kazakhstan";
- the Resolution of the Government of the Republic of Kazakhstan No. 1891 of
29 December 1995 "On Adoption of Procedures for the Destruction or Reprocessing ofProducts and Goods Declared as Non-Marketable and Non-usable";
- the Resolution of the Government of the Republic of Kazakhstan No. 1113 of
15 July 1997 "On Transition of the Republic of Kazakhstan to International Systems of
Classification and Coding of Technical and Economic Information";WT/ACC/KAZ/40
Page 29
- the Resolutions of the Government of the Republic of Kazakhstan No. 1229 of
7 August 1997 "On Establishment, Development, and Administration of the National
Fund of Standards of the Republic of Kazakhstan"; and
- No. 1839 of 26 December 1997 "On the National Fund of Standards of the Republic of
Kazakhstan".
The Law of the Republic of Kazakhstan "On Standardization" 16 of June 1999 determines the
legal and organizational base for standardization activities in the Republic of Kazakhstan.  It defines a
"technical regulation", and lists categories of documents classified as technical regulations.  The list of
normative documents valid in the Republic of Kazakhstan has been expanded to include international
and national standards of foreign countries applied under the set procedures.
The Law addresses the main requirements of the TBT Agreement, including the provision
that regulatory documents should not be a technical barrier to trade, which requires to ensure, at thestage of their development, consideration of international regulations and standards; producers have
been granted the right to apply international, re gional, and domestic standards of foreign countries
directly; data on standards under development, adopted standards, and technical regulations, as well
as regulatory documents per se should be made available for the public; in order to ensure cooperation
with international bodies and submission of documents and data on standards and procedures ofconformity evaluation to all interested parties, an enquiry point is being established.
The Law "On Standardization" provides for the development and use of the following
categories of standards: intergovernmental standards (GOST) and national standards (ST RK), as well
as international, regional, and foreign national standards used under the set procedures.
Intergovernmental standards (GOSTs) are developed by the CIS Intergovernmental Council onStandardization, Metrology, and Certification (EASC) .  The Republic of Kazakhstan is a member of
the EASC.  Development, adoption, and registrati on of intergovernmental standards is performed in
accordance with procedures stipulated in intergovernmental agreements concluded between the CIS
countries.  The Republic of Kazakhstan is party to the intergovernmental agreement of the CIS
countries 'On Coordinated Policies in the Sphere of Standardization, Metrology, and Certification' of13 March 1992.  Article 1 of this Agreement provides for the harmonization of requirements set out in
new GOSTs in accordance with international, regional, and the most advanced national standards of
foreign countries.  At present, the bulk of standards used in the industrial sector is represented by
intergovernmental standards.
Article 11 of the Law 'On Certification' provides for two types of certification: obligatory
certification and voluntary certification.  The latter is performed on the initiative of an applicant
(producer, vendor) or consumer of a good, in or der to determine its conformity with existing
standards, while the former is absolutely required  for safety reasons, to ensure protection of human
life and health, as well as property and environment.
The Resolution of the Government of the Republic of Kazakhstan No. 1787 of
29 November 2000 "On Control over Product Conformity in the Republic of Kazakhstan" (changed
and amended by the Resolutions of the Government of the Republic of Kazakhstan No. 407 of5 April 2002; No. 888 of 8 August 2002) contains a list of all categories of goods under mandatory
certification  for safety reasons and to protect human health, property, and environment, including:
medical equipment, medical devices, and devices designed for sanitation purposes or the purposes of
hygiene; fertile elements; domestic chemical products; personal protection products; vehicles;
industrial plumbing fittings and sluice valves; steel pipes; machine tools and woodworkingmachinery; in-service firearms, civil firearms, sports firearms, and cartridges; equipment for industrial
laundries and chemical cleaning; manufacturing equipment for food industry, trade, and catering;
electroinsulating materials; cabling; electric, radio, and electronic devices; communication devices;
heating equipment using solid, liquid, and gaseous fuel; equipment for high-risk production (works);WT/ACC/KAZ/40
Page 30
compression tanks; toys; commodities, contacting with human skin, foods, and water; packages; word
working products; construction materials and structur es; products of light industry; drugs; cosmetic
products; agricultural products and food industry products; fodder and feedstuff; mineral fertilizers
and chemical products; products of the metallurgical industry; nomenclature of services under
mandatory certification in the Republic of Kazakhst an; agricultural machinery; highway engineering
equipment; passenger elevators. Sale of the above products, whether domestic or imported, in the
Republic of Kazakhstan shall be prohibited if performed by parties other than holders of certificates.
Under Article 12 of the Law "On Certification", the sale of goods and services under
mandatory certification shall be prohibited if performed by parties, other than holders of certificates of
conformity.  Also, goods under mandatory certification may not be imported without prior obtaining
of a certificate of conformity.  Certificates of conformity shall be issued based on positive conclusions
of test centers, accredited in accordance with the set procedures.  Procedures and rules of mandatorycertification shall be non-discriminating.
Under the Procedures for the Import of Goods under Mandatory Certification to the Republic
of Kazakhstan, goods under mandatory certification, imported to the Republic of Kazakhstan shall be
subject to customs control. Documents certifying product safety include certificates issued by
certification bodies of the Republic of Kazakh stan, Azerbaijan, Armenia, Belarus, Georgia,
Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan, and Ukraine.
Under the Resolution of the Government of the Republic of Kazakhstan No. 1891 of
29 December 1995 'On Adoption of Procedures for the Destruction or Reprocessing of Products and
Goods Declared as Non-Marketable and Non-usable',  in cases where  imported goods are proved to be
violating existing standards and, consequently, to be potentially dangerous, a special committee shall
be created, whose work shall result in one of the following decisions:
- goods shall be reprocessed;
- goods shall be destroyed; or
- goods shall be repatriated to the country of origin.  Decisions of the committee may be
contested by the importing party.  Imported goods shall remain under control of customsbodies throughout the entire period of consideration of the case, while the importing party
shall be liable for all charges for storage.  It should be noted, that the decision may require
immediate destruction of goods if proven that storage of goods in question is hazardous
for the reasons of sanitation, or if customs bodies do not have special warehouses
available, or if the goods have a short shelf-life.
In pursuance of the Resolution of the Government of the Republic of Kazakhstan No. 1113 of
15 July 1997 "On Transition of the Republic of Kazakhstan to International Systems of Classificationand Coding of Technical and Economic Informati on", the Republic of Kazakhstan currently develops
a system of interconnected national classifiers of technical and economic information, harmonized
with their international analogues; resolves issues relating to coordination of intergovernmental
information flows and incompatibility of different nomenclatures and classifiers employed by various
public administration bodies and legal entities.
Resolutions of the Government of the Republi c of Kazakhstan No. 1229 of 7 August 1997
"On Establishment, Development, and Administration of the National Fund of Standards of the
Republic of Kazakhstan" and No. 1839 of 26 December 1997 "On National Fund of Standards of the
Republic of Kazakhstan" provide for the establishment of the National Fund of Standards, whose
functions comprise:  storage of standards and technical conditions, acquisition and storage ofinternational and regional standards, resolutions, and recommendations on standardization, metrology,
and certification; acquisition of national standards of other countries; provision of access to the
information on Kazakhstani and foreign standards.  The Fund contains over 36,000 titles, includingWT/ACC/KAZ/40
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documents specifying obligatory norms relating to the safety of goods, works (processes), and
services.
Article 17 of the Law on Standardization provides for the establishment of an enquiry point to
provide natural persons, legal entities, and countries with normative documents in standardization,
metrology, and certification, and to interact with the WTO Secretariat and WTO member-countries.
Subordinate enterprises issue periodic publications, including the magazines "Memstandard
News", "Metrolog", and "Monthly Informational Index of Standards", which contain draft standards,
news, articles and normative documents regulating standardization, metrology, and certification.
Contact Information:
Committee on Standardization, Metrology, and Certification of the Ministry of Industry and
Trade of the Republic of Kazakhstan
76 Druzhba Str.
Astana,  473000
Phone: + 7 3172 32 68 87
Fax: +7 3172 39 50 66
E-mail: standart@memst.kz
Web site: www.memst.kz
- Sanitary and Phytosanitary Measures
The legislation of the Republic of Kazakhstan regulating sanitary measures required to protect
human life and health, comprises the Law of the Republic of Kazakhstan No. 361-II of
4 December 2002  "On Sanitary and Epidemiological Safety of Population", the Law of the Republic
of Kazakhstan No. 111-1 of 19 May 1997 "On Protection of Human Health in the Republic ofKazakhstan", the Decree of the Presiden t of the Republic of Kazakhstan No. 4153 of
16 November 1998 "On National Program “Health of the People", the Resolution of the Government
of the Republic of Kazakhstan No. 126 of 3 February 2002 "On Measures for Implementation of the
Law of the Republic of Kazakhstan 'On Sanitary and Epidemiological Safety of Population'", the
Resolution of the Cabinet of Ministers of the Republic of Kazakhstan No. 547 of 25 April 1995 "OnAdoption of the Provision on the National Sanitation and Epidemiological Service in the Republic of
Kazakhstan",  the Resolution of the Government of the Republic of Kazakhstan No. 1716 of
16 November 1999 "On Adoption of the Protocol on the Unified Procedures for Implementation of
Technical, Medical, Pharmaceutical, Sanitary, Veterinary, Phytosanitary, and Ecological Standards,
Norms, Rules, and Requirements to Goods, Impor ted to the Customs Union Member-Countries", the
Resolution of the Government of the Republic of Kazakhstan No. 1783 of 29 November 2000 "On
Adoption of Guidelines on Quality and Safety of Food Materials and Food Products", the Resolutionof the Government of the Republic of Kazakhstan of 10 January 2002 "On the Committee for State
Sanitation and Epidemiological Control of the Ministry of Health of the Republic of Kazakhstan",  the
Resolution of the Government of the Republic of Kazakhstan No. 1283 of 5 October 2001 "On
Prevention of Iodine Deficit Disorder of the Popul ation of the Republic of Kazakhstan in 2001-2005",
the Resolution of the Government of the Republic of Kazakhstan No. 878 of 9 June 2002 "OnAdoption of the National Action Plan for Environmen tal Hygiene in the Republic of Kazakhstan", the
Order of the Prime-Minister of the Republic of Kazakhstan No.181-p of 30 December 1999 "On
Measures for the Improvement of Sanitation and Epidemiological Inspections in the Republic of
Kazakhstan", the joint Resolution of the Agency on Metrology and Certification of the Ministry of
Economy and Trade of the Republic of Kazakhstan, the Customs Committee of the Republic ofWT/ACC/KAZ/40
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Kazakhstan, and the Chief State Sanitation Expert of the Republic of Kazakhstan No. 225/07 of
9 June 1997 "On Safety of Products (Goods, Processe s, Services) for Human Health", the Agreement
on Cooperation in the Sphere of Sanitary Protec tion of Territories of the CIS member-countries'
(Minsk, 31 May 2001), the Agreement on Implementation of Technical, Medical, Pharmaceutical,
Sanitary, Veterinary, and Phytosanitary Norms, Rules, and Requirements to Goods, Imported into theCIS member-countries' (Moscow, 28 September 2001), the Agreement on Prevention of Iodine
Deficit Disorders of the Population of the CIS member-countries' (Minsk, 31 May 2001), the
Agreement on Sanitary and Phytosanitary Measures, the Codex Alimentarius, the Resolution of the
Government of the Republic of Kazakhstan No. 1787 of 29 November 2000 "On Control over
Products Conformity in the Republic of Kazakhstan", as well as other requirements and provisions set
out in the legislative acts of the Republic of Kazakhstan, relating to safety of trade goods for human
health and environment.  Under the above legislative acts, bodies for sanitation and epidemiologicalcontrol are responsible for ensuring safety of foods, conformity of food materials and other products
with sanitary rules, norms, and hygienic standards.
The Committee for State Sanitation and Epidemiolo gical Control of the Ministry of Health of
the Republic of Kazakhstan is the authorized body responsible for sanitation and epidemiological
safety of the population.  The sanitary  and epidemiological service includes the following structuralcomponents:  the Committee for State Sanitary and Epidemiological Control of the Ministry of Health
of the Republic of Kazakhstan; bodies and agencies of state sanitary and epidemiological control in
corresponding areas of the Republic of Kazakhstan; bodies and agencies engaged in state sanitary and
epidemiological control in transportation m eans, public bodies performing sanitary and
epidemiological inspections as a structural part of  bodies and agencies engaged in state sanitary andepidemiological control in transportation means; bodies and agencies attached to the Ministry of
Internal Affairs of the Republic of Kazakhstan, and engaged in state sanitary and epidemiological
control in its sites; agencies of state sanitary and epidemiological control in sites of ministries,
companies, group of companies, and corporations; bodies and agencies responsible for organization
and implementation of preventive actions aimed at protection against dangerous and quarantinableinfections; research centers providing scientific support to bodies of the state sanitary and
epidemiological service.
The state sanitary and epidemiological service performs state sanitary and epidemiological
control; takes actions aimed at the sanitary protection of the territory against penetration and
spreading of infectious and parasitic diseases; deve lops national sanitary rules, hygienic regulations,
other normative legislative acts on sanitary and epidemiological safety of the population, as well as
record and accounting forms under procedures set out in the legislation of the Republic ofKazakhstan; organizes and implements within its competence a set of sanitary and epidemiological
(preventive) actions in cases of food poisoning, outbreaks of infectious, parasitic, and other diseases,
including idiopathies; performs sanitary and epidemiological monitoring, manages statistical data and
keeps records; coordinates activities of research organizations and other bodies, engaged in activities
relating to sanitary and epidemiological safety of the population; interacts with other public bodiesand agencies on sanitary and epidemiological safety of the population; conducts research on sanitary
and epidemiological safety of the population; orga nizes and implements social hygienic monitoring;
provides timely instructions to the population on diseases, environmental conditions, and
implemented sanitary and epidemiological (preventive) measures.
Regional bodies and agencies on state sanitary and epidemiological control perform
evaluation of risks in the course of sanitary and hygienic and anti-epidemic measures for the
protection of human health.  Scientific principles of evaluation of risks and application of measures
required for the protection of human health are set out in the legislation of the Republic of Kazakhstan
on protection of human health and sanitary and epidemiological safety of the population. Sanitary and
hygienic activities, as well as anti-epidemic actions implemented by bodies on state sanitary andWT/ACC/KAZ/40
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epidemiological control comprise the entire range of measures incorporating regional specific
requirements and other factors.
Sanitary and epidemiological inspections are one of the components, required for ensuring
sanitary and epidemiological safety of the population. Performed by bodies and agencies for the
sanitary and epidemiological control, inspections are based on the comprehensive evaluation of theinfluence on sanitary and epidemiological conditions, and human health of members of the habitat;
studies of causes and conditions for outbreaks of diseases and human intoxication; ensuring
conformity of decisions taken for implementation of certain economic activities with requirements set
out in sanitary and hygienic rules and norms, and hygienic regulations. Inspection procedures and
issue of a sanitary report of conformity (non-conformity) of inspected products with sanitary rules and
standards, and hygienic regulations shall be perf ormed in accordance with the Decree of the Prime-
Minister of the Republic of Kazakhstan No.181- р of December 30, 1999 'On Measures for the
Improvement of Sanitary and Epidemiological Inspections in the Republic of Kazakhstan', and the
Order of the Chief State Sanitary Expert of the Republic of Kazakhstan No.26 of January 13, 2001
'On Measures for the Improvement of Sanitary and Epidemiological Inspections in the Republic of
Kazakhstan'.
All norms and provisions of the current legislation, regulating protection of human health, are
scientifically justified, while new norms and provisions are developed based on proposals of research
institutes. Sanitary rules and standards, as well as hygienic regulations are developed by research
institutes, sanitary and epidemiological centers, and other specialized institutions, and reviewed at
regular intervals based on the new scientific and practical data (Article 22 of the Law of the Republic
of Kazakhstan No.III-XIII of 8 July 1994).  Development of new normative acts incorporatesprinciples set out in the Codex Alimentarius relating to the hygiene of foods; directives of the
European Union, as well as agreements on sanitary and epidemiological issues, and product safety.
Sanitary rules and standards are legislative acts specifying sanitary and epidemiological
requirements (including safety and/or harmlessness of environmental factors for a human), while
failure to fulfill them creates a threat for human life and health, as well as a potential danger of theoutbreak and spreading of diseases.  Under Article 18 of the Law of the Republic of Kazakhstan "On
Normative Legislative Acts", normative legislative acts shall be published and disseminated on a free
basis. Under Article 24 of the Law of the Republic of Kazakhstan "On Sanitary and Epidemiological
Safety of the Population", sanitary rules and standards, as well as hygienic regulations shall be
published and disseminated on a free basis.
The state sanitary and epidemiological control system of the Republic of Kazakhstan  has a
database regularly updated with data submitted by regional branches.  This information is accessiblefor all interested parties.  Also, the Republic of Kazakhstan publishes a monthly bulletin entitled
'Environment and Human Health'.
Overall, the sanitary measures of the Republic of Kazakhstan do not run counter to
international standards, regulations, and recommendations, contained in provisions of the SPS
Agreement and the GATT 1994.
The legislation of the Republic of Kazakhstan regulating application of plant quarantine
measures includes:
- the Law of the Republic of Kazakhstan  No. 344-I of 11 February 1999 "On Plant
Quarantine";
- Rules on Protection of the Republic of Kazakhstan from Quarantined Objects and the List
of Quarantinable Objects, adopted by the Resolution of the Government of the Republic
of Kazakhstan No. 1960 of 30 December 2000; andWT/ACC/KAZ/40
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- the Code of the Republic of Kazakhstan on Administrative Offences No. 155-II of
30 January 2001.
The list of quarantinable products subject to phytosanitary control under plant quarantine
procedures, including HS Codes, is presented in the Nomenclature of the basic quarantinable
products, which may be imported to or exported from the Republic of Kazakhstan only uponauthorization of the body, responsible for plant quarantine and its regional branches, adopted by the
Decree of the Minister of Agriculture of the Republic of Kazakhstan No. 166 of 30 May 2002, upon
coordination with the Customs Control Agency of the Republic of Kazakhstan and after registration
with the Ministry of Justice of the Republic of Kazakhstan.
The Law of the Republic of Kazakhstan 'On Plant Quarantine' determines legal base and
principles of implementation of state mechanisms of plant quarantine, comprising an integral part of
the national security system of the Republic of Kazakhstan.  The Law stipulates that the authorizedbody on plant quarantine shall develop jointly with research organizations a set of quarantine
measures based on international norms and recommendations, and exercise control over their
fulfillment by natural persons and legal entities, irrespective of their form of property.
The authorized body of the Republic of Kazakhstan responsible for shaping policies on plant
quarantine is represented by the Ministry of Agriculture of the Republic of Kazakhstan (theDepartment on Plant Protection and Quarantine). At the local level, the quarantine control functions
are performed by sections on plant protection and quarantine of the oblast branches of the Ministry of
Agriculture of the Republic of Kazakhstan, as  well as by border centers and stations.
Apart from the Department on Plant Protection and Quarantine, the state quarantine system of
the Republic of Kazakhstan also includes:
- State quarantine bodies established by the decision of the Government of the Republic of
Kazakhstan, including the Republican, zonal, and border quarantine centers, and
introduction quarantine nurseries.
- Public enterprises, responsible for plant quarantine, enforced by phytosanitary
laboratories and fumigation squads.
The quarantine service implements uniform national policies, covering a wide range of
agencies and sectors, including agriculture, forest ry, transport, trade, international cooperation, etc.
The service provides phytosanitary certification of agricultural, wood, and other quarantinable
exported goods in accordance with international norms and requirements of national quarantine
services of importing countries. Conditions of import of quarantinable goods and their use in the
country are determined based on the international data.  This practice implements the Convention
developed by the UN Food and Agricultural Or ganization (FAO), to which the Republic of
Kazakhstan is party.
Import sanitary certificates are issued by the Department of Plant Protection and Quarantine,
namely, by the its Director, who is the Chief State Inspector of the Republic of Kazakhstan on Plant
Quarantine. Phytosanitary and sanitary certificates are issued by regional branches of the Ministry of
Agriculture of the Republic of Kazakhstan.
Plant quarantine centers located on the state border and in transportation means perform
primary examination of quarantinable products, prepare sanitation reports to the regional branch of
the Ministry of Agriculture of the Republic of Kazakhstan located in the area of destination, and
check quarantine documents.WT/ACC/KAZ/40
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After the primary plant quarantine inspection, performed in border phytosanitary centers and
stations, imported quarantinable products (freights), and vehicles shall undergo the secondary plant
quarantine inspection.  That includes an inspection performed in the place of destination of
quarantinable goods involving laboratory testing.
In order to bring the Law of the Republic of Kazakhstan 'On Plant Quarantine' in line with
international standards, the Republic of Kazakhstan has adopted the Law of the Republic of
Kazakhstan No. 293-II of 18 February 2002 "On Changes and Amendments to the Law of the
Republic of Kazakhstan 'On Plant Quarantine'".  Changes and amendments have been developed to
reflect the current phytosanitary environment, in corporate requirements set out in phytosanitary
norms, practices of international organizations, and important trade-affecting WTO rules, and are
aimed to enhance efficiency of state quarantine activities.
In accordance with the national legislation, import, export, and transit of quarantinable goods
of vegetable origin shall be regulated by the principles set out in the Agreement on Sanitary and
Phytosanitary Measures (SPS), including transparency, scientific justification, equal application of
adopted measures on plant quarantine, harmonization of norms based on international standards and
recommendations.
The legislation of the Republic of Kazakhstan regulating application of veterinary measures
includes the Law of the Republic of Kazakhstan No. 339-II ЗРК of 10 July 2002 "On Veterinary".
The Law is completely harmonized with the international standards and the WTO Agreement on
Sanitary and Phytosanitary Measures.  Under this Law, the national policies in the sphere of
veterinary have the following tasks and objectives:
- state veterinary control of production, storage, and sale of products within competence of
state veterinary control bodies;
- reduction of the state monopoly on certain types of veterinary activities;
- protection of the Republic of Kazakhstan from penetration and spreading of infectious
and rare animal diseases from other countries;
- protection of independence of the state veterinary control service;
- scientific development of veterinary rules and standards based on the comprehensive
evaluation of epizootic conditions and international veterinary norms;
- raising the level of veterinary activitie s, as compared with the international
recommendations, if done on sufficient scientific grounds; and
- prevention of unjustified restrictions on sale of products subject to control of state
veterinary bodies imposed as a result of veterinary activities aimed at veterinary and
sanitary safety.
Norms, relating to publication of proposed measures, provisions on information for economic
operators and possibilities for comments and suggestions, as well as other issues, not reflected in the
Law "On Veterinary", shall be covered in subordinate legislative acts.
To ensure safety of products and raw materials of animal origin, a particular importance is
attached to enforcing state veterinary control on imported and exported goods subject to control ofstate veterinary bodies, as well as on such goods in transit across the territory of the Republic of
Kazakhstan.  Also, safety of animal products and raw materials is ensured by veterinary and sanitary
tests performed in trade markets. The authorized body, responsible for veterinary control of imported
animal products is represented by the Ministry of Agriculture of the Republic of Kazakhstan (the
Veterinary Department).
The veterinary control system is vertically structured. It comprises veterinary control sections
at the oblast, rayon, and city levels, veterinary inspectors at the level of rural districts, as well asWT/ACC/KAZ/40
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veterinary inspection stations and centers located on the state border and in transportation means.
Apart from the Veterinary Department, the state veterinary system of the Republic of Kazakhstan also
includes:
- zonal branches of the state veterinary service located on the state border and in
transportation means with veterinary check stations;
- oblast (capital, city of Republican significance) branches of the authorized public body on
veterinary;
- rayon (city) branches of the authorized public body on veterinary and veterinary
inspectors operating in rural districts, markets, and organizations engaged in production,
slaughtering, storage, processing,  and sale of products under control of state veterinary
bodies;
- the Public Institution "National Center for Monitoring, Referencing, Laboratory
Diagnostics, and  Methodology in Veterinary";
- the Republican State Enterprise "Republican Veterinary Laboratory";
- the Republican State Enterprise "Republican Epizootic Squad";
- the public institution 'Republican Veterinary Center';
- the Republican State Enterprise "Central Veterinary Laboratory" and its oblast, city, and
rayon branches; and
- the Republican State Enterprise "VetDez" and its oblast branches.
As a member of the International Epizootic Bureau (from 1993), the Ministry of Agriculture
of the Republic of Kazakhstan takes steps to harmonize the national legislation with the requirements
set out in the International Veterinary Code.
The public veterinary bodies exercise permanent control over growing, slaughtering, and
processing of animals and poultry.  Under the system of identification (codification) of enterprises
engaged in processing of goods and raw materials of animal origin, developed by the Veterinary
Department, these enterprises are assigned special codes required for use in product designations.
This practice ensures, that products remain constantly under rigid veterinary control starting fromtheir release by the enterprise to places of sale or storage.  All products of these enterprises is subject
to veterinary control performed by public veterinary inspectors, employed by structural subdivisions.
Furthermore, the Veterinary Department has stipulated that organizations engaged production,
slaughtering, storage, processing, and sale of animals, goods, and raw materials of animal origin,
veterinary drugs, feedstuff, and feed supplements, establish their own laboratories for veterinary
control purposes.
To control infectious animal diseases, the Republic of Kazakhstan has developed a special
national program on "Veterinary Activities", incorporating preventive veterinary measures
(vaccinations against infectious diseases of animals and birds, performed by licensed veterinary
experts, as well as sanitation and disinfection activities in focuses of epizootic infections performed
by public bodies licensed by the authorized body in the sphere of veterinary medicine).
With the view to ensure reliable forecasting of outbreaks of dangerous diseases of animals
and poultry, as well as timely measures aimed at their prevention, or, if already in place, at their
localization and elimination, the specialized vet center performs epizootic monitoring of wild animals
in the entire territory of the Republic of Kazakhstan.
To ensure an adequate level of transparency in pursuance of the Resolution of the
Government of the Republic of Kazakhstan No. 16 27 of 30 October 2000, the Ministry of Agriculture
of the Republic of Kazakhstan takes active measures to implement the Informational Marketing
System of the Ministry of Agriculture, designed to ensure  sharing of analytical marketing informationWT/ACC/KAZ/40
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between agricultural producers, public bodies, and other agents of the market of agricultural goods;
give access to the  mechanisms for efficient regulation of the sectoral development, and for purposes
of cooperation with international organizations.
The project of the Informational marketing system also includes the web www.minagri.kz  and
the informational bulletin Agroinform, published by the Ministry of Agriculture of the Republic of
Kazakhstan, which contains all legislative acts adopted by the Ministry of Agriculture of the Republic
of Kazakhstan, including acts on veterinary, plant protection, and quarantine.
- Investment Measures in Trade
The Laws of the Republic of Kazakhstan "O n Subsurface and Subsurface Use" and "On Oil"
regulate operations related to subsurface use and oil operations in the view to protect interests of the
Republic of Kazakhstan and its natural resources; ensure rational use and protection of the subsurface
of the Republic of Kazakhstan; protect interests of subsurface users and contractors engaged in oiloperation.
The above Laws require the use of equipment, raw materials, and products, manufactured in
the Republic of Kazakhstan, as well as involvement of enterprises and organizations of the Republic
of Kazakhstan in performance of works and provision of services, including air, railroad, water and
other transport provided that it meets the standards and other set requirements, following biddingconducted in the Republic of Kazakhstan in accordance with the procedures defined by the
Government of the Republic of Kazakhstan.
These measure have been dictated by the ongoing crisis of the industry of the Republic of
Kazakhstan, which is a very important sector of the national economy accounting for approximately
25 per cent of the GDP.
The structure of the industrial production continues to change towards the pronounced
domination of sectors relating to extraction and primary treatment of hydrocarbon and mineral
products.  Existing problems with the industrial stru cture are also partially rooted in the incomplete
technological integration of all stages of the production chain from extraction of raw materials to
manufacturing of products, ready for subsequent  use or final consumption.
In the medium-term perspective, any radical structural changes in the industrial sector are
highly improbable.  The bulk of the growing volumes of the industrial production will be accounted
for primarily by the extractive industry, represented by export-oriented enterprises dependent on
foreign markets.
However, the industrial policies being currently developed for a term ending in 2015 are
intended, apart from the further development of the technical and technological potential in the energy
and mining sectors, and generating effective demand, to develop production and services in othersectors of the national economy, including consumer goods, production diversification,
implementation of scientific achievements into the production process, establishment of new high-
tech enterprises.
- Provisions on State Trade
The Republic of Kazakhstan does not have enterprises described in Article XVII of GATT.
The Government of the Republic of Kazakhstan has never granted any private or public enterprise,
including marketing agencies, exclusive or special rights or benefits, including charter or
constitutional powers, that could be used, through purchase or sale, to influence the level or direction
of import and export operations.  Both private and public commercial enterprises operate in the sameWT/ACC/KAZ/40
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(non-discriminating) competitive market conditions.  There are no enterprises whether public of
private to own special trade and distribution rights.
- Free Zones
Issues on establishment, legal regulation, and operation of special economic zones are
covered by the Statutory Order of the President of the Republic of Kazakhstan "On Special EconomicZones in the Republic of Kazakhstan", the Laws of the Republic of Kazakhstan 'On Taxes and Other
Obligatory Payments to the Budget", "On Customs in the Republic of Kazakhstan", banking
regulations and other legislative acts of the Republic of Kazakhstan.
At present, the Republic of Kazakhstan hosts only 2 special economic zones, namely "Astana
– New City", established by the Decree of the President of the Republic of Kazakhstan No. 645 of
29 June 2001 for a term between 1 January 2002 and 2007, and the 'Aqtau Seaport'.
The special economic zone "Astana – New City" (hereafter the SEZ) has been established to
invigorate development of the left bank area of the river Ishym by means of the attraction of
investments and use of advanced technologies in construction, as well as the development of the
modern infrastructure.  The Law of the Republic of Kazakhstan of 5 July 2001 "On Changes and
Amendments to Legislative Acts of the Republic of Kazakhstan on the Special Economic Zone
'Astana – New City' Through Introduction of Changes and Amendments to the Laws of the Republicof Kazakhstan on Taxes and Other Obligatory Payments to the Budget and on Customs in the
Republic of Kazakhstan" provides for tax and customs benefits for construction of infrastructural
assets, administrative and residential sectors in the territory of the established SEZ.  Tax benefits shall
be granted for:
- VAT levied on the turnover of goods, (works, se rvices) sold in the territory of the SEZ if
consumed in full in the process of construction and starting of infrastructural assets,
administrative and residential sectors (hereafter – objects);
- land tax levied on land lots located in the territory of the SEZ used as construction sites or
containing constructed buildings within the term of operation of the SEZ;
- property tax, levied on objects constructed within the term of operation of the SEZ.
Customs benefits in respect of customs duties and VAT shall be granted for the imports
of machinery and equipment, required for construction works and works required to put
constructed objects into service in accordance with project records and cost estimates.
With respect to zones whether currently existing or established in the future, the legislation of
the Republic of Kazakhstan sets no restrictions on access for foreign parties, except for the restriction
on the place of registration of parties – recipients of benefits, which is a generally recognized standard
in place in the major part of free economic zones all over the world.  In particular, as per the SEZ"Astana – New City", customs and tax benefits for VAT shall extend to legal entities of the Republic
of Kazakhstan, non-residents of the Republic of  Kazakhstan operating through a permanent body
registered in the city of Astana, natural persons engaged in entrepreneurship without establishment of
a legal entity, and residing permanently in the city of Astana.
The special economic zone "Aqtau Seaport" has been created by the Decree of the President
of the Republic of Kazakhstan No. 853 of 26 April 2002 for a term between 1 January 2003 and 2007
for the invigoration of the development of the region, establishment of high-tech enterprises,
assimilation of new products, attraction of inve stments, implementation of modern methods of
administration and economic management, and settlement of social issues. It is located in the territory
of a seaport within boundaries of the city of Aqtau.  The SEZ 'Aqtau Seaport' is a free customs zone.Taxation in the SEZ is based on the tax legislation of the Republic of Kazakhstan and does not
provide for any additional tax benefits.WT/ACC/KAZ/40
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- State Procurement Practices
The legislation of the Republic of Kazakhstan regulating state procurement comprises the
Law of the Republic of Kazakhstan  'On State Procurement' No. 321-II ЗРК of 16 May 2002; the Rules
for Organization and Performance of State Procurement of Goods, Works, and Services, approved by
the Resolution of the Government of the Republic of Kazakhstan No. 1158 of 31 October 2002; theResolution of the Government of the Republic of Kazakhstan No. 1163 of 3 November 2000 "On
Special Procedures for State Procurement", the standard bidding documents, approved by the Decree
of the Chairman of the Agency of the Republic of Kazakhstan on State Procurement No. 8 of
31 October 2002, registered in the Ministry of Justice of the Republic of Kazakhstan No. 2041 of
14 November 2002.  The Agency of the Republic of Kazakhstan on State Procurement is the
authorized body in the sphere of state procurement.
The Agency of the Republic of Kazakhstan for State Procurement is responsible for the
development and implementation of state policies in the sphere of state procurement.  The Agency
generalises and develops proposals aimed at the improvement of legislative acts regulating state
procurement, adopts legislative acts within its competence in accordance with the legislation of the
Republic of Kazakhstan; coordinates and monitors state procurement activities; controls fulfillment of
the requirements set out in the legislation of the Republic of Kazakhstan on state procurement;develops accounting forms relating to state procurement, including procedures for their completion
and filing; develops and adopts methodological materials, standard bidding documents; provides
consulting services to organizers of biddings relating to state procurement; takes decisions on the
review or cancellation of decisions of organizers of biddings, contractors, and bid evaluation
committees, violating the requirements set out in the legislation of the Republic of Kazakhstanregulating state procurement, prior to conclusion of state procurement contracts; initiates court
procedures to invalidate contracts concluded with  violations of the legislation of the Republic of
Kazakhstan on state procurement; examines cases of administrative offences in the sphere covered by
the legislation of the Republic of Kazakhstan on state procurement, and imposes administrative
punishments in accordance with the legislation of the Republic of Kazakhstan on administrativeoffences.
Under the Law of the Republic of Kazakhst an on State Procurement of 16 May 2002, state
procurement is the procurement of goods, works, and services effected by public bodies and agencies,
public enterprises, and joint stock companies with th e controlling share owned by the State, as well as
by their affiliated legal entities, using available funds.  A certain portion of goods, works, and services
procured by public bodies and agencies, public enterprises, and joint stock companies with the
controlling share owned by the State, as well as by their affiliated legal entities, is used for their ownproduction purposes.
Main mechanisms of state procurement are represented by: public bidding, limited bidding
(public and limited bidding may consist of two stages), procurement from one source, selection of a
supplier based on requests of price offers, and market procurement.
The Law "On State Procurement" determines norms for the support of domestic producers,
small businesses, and public associations of disabled.  Procedures and conditions for prioritized
treatment of domestic producers of goods are determined by the Government of the Republic of
Kazakhstan.
-T r a n s i t
Under the current legislation of the Republic of Kazakhstan, goods in transit are exempt from
fees, customs duties, VAT, and excises.  The Republic of Kazakhstan guarantees free transit of goods
across its territory, in pursuance of requirements set out in Article V of GATT 1994, as well asWT/ACC/KAZ/40
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agreements to which the Republic of Kazakhstan is party.  The only fee levied on goods in transit is
the shipment fee equal to the amount comparable with administrative costs or costs of provided
services.
- Provisions Influencing Trade in Agricultural Goods
- Policies in Agriculture
The agro-industry of the Republic of Kazakhstan lived through a period of deep crisis rooted
in the deterioration of old industrial relations a nd emerging of new ones and now preserves a number
of negative tendencies in its development.  The level of agricultural production in 1991-2000
decreased by more than 2 times. The share of agriculture in the GDP for the same period plummeted
from 29.5 to 8.1 per cent.  The share of investments in the agricultural sector is a mere 1.4 per cent of
the total volume of investments in the national economy.  Critical financial conditions for agricultural
businesses persevere.  Thus, while in 1993 the share of lame-duck agricultural enterprises in theRepublic of Kazakhstan equalled 50.4 per cent, in two years' time it soared to the mark of
78.2 per cent.
Among the main reasons of declining production volumes in the agricultural sector is the
decreasing amount of available machinery, its physical and moral obsolescence.  The break-up of
former large kolkhozes, and sovkhozes into smaller economic agents and farms resulted in thedistribution of machinery, and shutdown of tractor  plants.  As far back as 1994, supply of new
machinery to the agricultural sector practically ceased.
The Republic of Kazakhstan belongs to the area of high-risk agriculture.  In general, the bio-
climatic potential of the agricultural area of Kazakhstan is 2.7 times lower as compared with the North
America and the Western Europe.  A distinct zoning of the agriculture of  Kazakhstan should also benoted as it is characterized by a strong dependence on environmental and climatic factors. The quality
of arable lands is also relatively low:  Annually, some 10.5 million hectares of arable lands are sowed
with wheat, 73.5 thousand hectares – with rice, 20,000 hectares – with sugar-beet, and 78,000 hectares
– with corn.  On the whole, the Republic of Kazakh stan has a significant potential for crop cultivation.
For instance, in 1990 the area used for wheat comprised 14 million hectares, for rice – 124.5 thousandhectares, for sugar-beet – 43.6 thousand hectares, and for corn – 128.6 thousand hectares.
Given the situation in the agricultural sector, it may be stated with a fair degree of confidence
that in the next decade the national agriculture will operate in worse conditions and demonstrate less
efficiency than that of countries shaping the world market.  This is the reason why implementation of
steps designed to solve strategic issues in the sphere of agriculture, including establishment of
competitive domestic agricultural enterprises and ensuring of food safety of the country, requires
elimination of existing problems and invigoratio n of both medium-term a nd long-term measures.
The medium-term policies of the Republic of Kazakhstan in the agricultural sector are set out
in the 2003-2005 National Program for Agricultural Production, approved by the Decree of the
President of the Republic of Kazakhstan No. 889 of 5 June 2002.  It has been developed primarily to
ensure food safety of the Republic of Kazakhstan based on an efficient system of the agro-industry
and production of goods with high competitive power.
Implementation of the Program covers the following tasks and objectives:
- ensuring food safety of the country;
- development of the efficient agro-industry system;WT/ACC/KAZ/40
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- increase of the volume of sales of agricultural goods and goods processed from
agricultural primary products both on domestic and foreign markets through enhancing
their competitive power; and
- rationalization of measures of the government control of agricultural production.
Operational specifics of the agro-industrial sector as well as issues relating to the national
food safety require that the implemented agricultural policies incorporate a larger number of
mechanisms of state regulation and control than any other sector of the national economy.
Measures of state support implemented in the Republic of Kazakhstan include general
services, creation of state reserves for purposes of the national food safety, insurance programs,
various soft loan programs, preferential tax treatments, etc..
General services include scientific research; research aimed at the development of new kinds
of seeds; programs aimed to provide producers with high-quality seeds and transplanting stock toincrease yield and ensure national food security; expertise services; product testing services; training
services; pest control and control of animal diseases (prevention, quarantine, elimination);
communication of experience and consulting services; establishment and development of information
systems, services in the sphere of infrastructure.
Also, state support may be effected in the form of forgiven and restructured debts of
agricultural producers.
Under Article 179 of the Law of the Republic of Kazakhstan 'On Taxes and Other Mandatory
Payments to the Budget' No. 2235 of 24 April 1995, the terms for payment of taxes and penalties,
accumulated as of 1 January 2000, by agricultural producers, both legal entities and natural persons,
have been extended for three years without accrual of fines.
Given  the insufficient level of working capital and the strategic significance of the products
of livestock breeding stations and seed breeding stations, payment of taxes in full is hardly feasible.
In this connection, the 2003 Republican budget  allocates KZT 1479.3mln. as a nonrecurring
financial aid to enterprises, engaged in seed and livestock breeding, for repayment of deferred tax
arrears payable to the budget as of January 1, 2000.
Furthermore, the Republic of Kazakhstan took a favorable decision on deferred tax arrears
payable to the budget as of 1 January 2000.  The repayment period has been prolonged to
1 January 2008, while the arrears are required to be repaid in equal installments within a term of five
years (the Law of the Republic of Kazakhstan  No. 358-II of 23 November 2002 "On Changes and
Amendments to Legislative Acts of the Republic of Kazakhstan on Taxation").
State financial support of the agricultural sector is also effected through the CJSC "Fund for
Financial Support of Agriculture".  Its functions, determined by the Resolution of the Government ofthe Republic of Kazakhstan No. 650 of 9 July 1998, comprise:
- participation in the development and implementation of state loan programs and programs
for financial support of the agriculture;
- functions of a creditor, including recovery of debts under financial obligations of
agricultural producers relating to centralized, deferred, and other debts before the Fundand ensure their settlement;
- functions of the agent of the Ministry of Agriculture of the Republic of Kazakhstan in the
course of provision of nonrecurring financial support of restructuring in the agriculturalWT/ACC/KAZ/40
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sector, development of selection, seed breeding, measures for protection of flora and
fauna;
- accounting and collection of debts of agricultural producers transferred by the Ministry of
Finance of the Republic of Kazakhstan in accordance with the resolutions of the
Government of the Republic of Kazakhstan and
- provision of loans to organizations engaged in production and processing of agricultural
goods.
Also, agricultural producers shall have the right to a number of benefits.
Thus, in accordance with the Tax Code of the Republic of Kazakhstan, agricultural producers
may effect payments to the budget under general procedures, or under special tax treatment based on
tax patents for legal entities, and on the single land tax – for farms.
A special tax treatment has been developed for legal entities – agricultural producers which
includes the following taxes: social tax (21 per cent of the wage bill), corporate income tax
(10 per cent of the taxable annual income), property tax (1 per cent of the average annual value of
capital assets), vehicle tax (rates based on the engine volume), land tax (rates based on the degree of
quality per 1 hectare), VAT (16 per cent of the taxable base).
After calculation of the cost of the patent, the amount of taxes payable to the budget shall be
reduced by 80 per cent.
Tax payers, using the above special tax treatment, shall not be required to submit declarations
reflecting taxes included in the calculation of the cost of the patent, except for VAT.
Legal entities – agricultural producers shall have the right to choose between the special tax
treatment and general taxation procedures.
Legal entities, producing agricultural goods, are granted a special patent-based tax treatment
if they are engaged in production of:
- agricultural goods using land, as well as processing and sale of these of their own
production;
- agricultural products of the full-cycle animal husbandry and aviculture (incl. selection
breeding), including growing young stock and gr owers, apiculture, as well as processing
and sale of these of their own production .
Farmers, engaged in production of agricultural goods, processing and sale of agricultural
goods of their own production, who own land lots or are land users, shall be covered by a special tax
treatment based on a single tax on land (0.1 per cent of the estimated value of a land lot).
Farmers shall compute the amount of the social tax at the rate of 20 per cent of the MCI per
worker, including the head and all members of a farm on a monthly basis.
Farmers shall be exempt from the following taxes and charges:
- individual income tax levied on income from activities, covered by the above reduced tax
treatment;
- VAT levied on turnover from activities, covered by the above reduced tax treatment;
- land tax levied on activities, covered by the above reduced tax treatment;
- tax on vehicles within set norms;
- property tax within set norms;WT/ACC/KAZ/40
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- charge for use of water resources;
- charge for use of forests; and
- charge for environmental pollution.
Also, under the Law "On Farms", farms with the average annual number of workers not
exceeding 50, and the average annual total value of a business not exceeding 60,000 calculationindexes shall :
- be exempt from charges for the registration of rights to real estate for a term of 3 years
following the date of the state registration, while the state registration is performed free of
charge upon appearance of the farmer in the responsible body;
- under procedures and conditions set in the legislation, be exempt from charges for electric
energy, heating, water supply, and water-waste treatment capacities through mechanisms
of regulation of activities of natural monopolies;
- open free of charge bank accounts in second-tier banks with state participation;
- submit accounting and statistical data following the same reduced procedures developed
for
- individual entrepreneurs;
- in accordance with the tax legislation, have the right to pay income tax based on a tax
patent, or fixed tax value, or following the reduced procedures for calculation of the tax
base and tax accounting;
- have a priority right to place orders for national needs under conditions set by the
Government of the Republic of Kazakhstan;
- receive statistical and informational services, as well as know-how and technologies on
favorable terms within limits se t in the state budget for a corresponding year for the state
financial support of small businesses;
- attend training, retraining, and advanced training courses covered by funds, allocated for
the support of small businesses.
Under procedures and conditions set out in the national legislation on state support of
investments, investors in the agricultural sect or may be granted the following benefits and
preferences:
- state natural grants;
- investment tax preferences for a term of no more than five years for the corporate income
tax, property tax, and land tax;
- full or partial exemption from customs duties levied on imported equipment and
component parts for the implementation of an investment project.
The value of benefits and preferences shall be calculated based on the volume of investments
to high-priority activities..
The 2003-2005 National Program for Agricultural Production also provides for:
- preferential railway tariff for the transportation of grain; subsidies for domestic suppliers
to compensate transportation costs incurred as a result of the transportation of grain in theterritory of the Russian Federation;
- construction of an additional terminal in Aqtau;
- development of trade in grain in existi ng commodity exchanges for quoting and
prevention of price dumping; and
- corrections of activities of the CJSC 'State Products Contract Corporation' to enhance the
share of exports.WT/ACC/KAZ/40
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- TRADE-RELATED INTELLECTUAL PROPERTY REGIME
- Policies on Intellectual Property
Policies of the Republic of Kazakhstan in the sphere of protection of intellectual property
rights are targeted at the fulfillment of the following three objectives:
- to bring the legislation regulating administration of intellectual property rights in line with
the international standards;
- to develop mechanisms ensuring enforcement of provisions of the laws on protection of
intellectual property rights; and
- to train experts for every specific sector of protection of intellectual property.
The fundamentals of the state policy aimed to ensure legitimate use and protection of
intellectual property subject matter in the Republic of Kazakhstan are set forth in the Concept of
Protection of Intellectual Property Rights, approved by the Resolution of the Government of theRepublic of Kazakhstan No. 1249 of 26 September 2001.
- Bodies for Administration of Intellectual Property Rights
The Committee on Intellectual Property Rights of the Ministry of Justice of the Republic of
Kazakhstan (hereafter – the Committee) is the authorized body of the Republic of Kazakhstan  in the
sphere of protection of intellectual property.  The Committee has been established by the Resolutionof the Government of the Republic of Kazakhstan  No. 411 of 29 March 2001 "On Issues Relating to
the Committee on Intellectual Property Rights of the Ministry of Justice of the Republic of
Kazakhstan".  The Committee performs specific executive, monitoring, and supervisory functions, as
well as general administration in the sphere of protection of intellectual property rights.  The
Committee took over the functions and authority for estate administration, as well as functions, beingpreviously within competence of the now abol ished Committee on Copyright of the Ministry of
Justice of the Republic of Kazakhstan and the Republican State Enterprise on Patents and Trademarks
"Kazpatent" of the Ministry of Justice of the Republic of Kazakhstan.
In order to improve the state system of protection of intellectual property rights, the Republic
of Kazakhstan established the Republican State Enterprise "National Institute on Intellectual Propertyof the Committee on Intellectual Property Rights of the Ministry of Justice of the Republic of
Kazakhstan" by the Resolution of the Government of the Republic of Kazakhstan of 11 July 2002.  Its
main functions comprise scientific activities relating to intellectual property issues.
- Participation in International Co nferences on Intellectual Property
In accordance with the "Declaration of the Republic of Kazakhstan on International
Agreements on Protection of Industrial Property" of 5 February 1993, the Republic of Kazakhstan is
party to a number of basic treaties, agreements, and conventions, operating under the aegis of theWOIP, including:
- the Convention on Establishment of the World Organization of Intellectual Property
(WOIP);
- the Paris Convention for the Protection of Industrial Property;
- the Madrid Agreement on International Registration of Trademarks; and
- the Patent Cooperation Treaty ( РСТ).
Presently, the Republic of Kazakhstan has become party to the following conventions in the
sphere of intellectual property:WT/ACC/KAZ/40
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- the Berne Convention for the Protection of Literary and Artistic Works;
- the Nice Agreement Concerning the International Classification of Goods and Services
for the Purposes of the Registration of Marks;
- the Strasbourg Agreement Concerning the International Patent Classification;
- the Budapest Treaty on the International Recognition of the Deposit of Microorganisms
for the Purposes of Patent Procedure;
- the Universal Copyright Convention;
- the Locarno Agreement Establishing an International Classification for Industrial
Designs;
- the Trademark Law Treaty;
- the Eurasian Patent Convention; and
- the Convention for the Protection of Interests of Phonogram Producers against Illicit
Reproduction of Phonograms.
The visit of the Director General of the WIPO, Camil Idris, resulted in the signing of the
Program for the Cooperation between the Government of the Republic of Kazakhstan and the World
Intellectual Property Organization, approved by the Resolution of the Government of the Republic of
Kazakhstan No. 303 of 28 February 2001.
The Republic of Kazakhstan continues its work on accession to the agreements of the World
Intellectual Property Organization on copyright, performances, and phonograms.
- Participation in international conference s on intellectual property and regional
or bilateral agreements
At present, the Republic of Kazakhstan has joined the following bilateral agreements,
providing for cooperation between Parties in the sphere of intellectual property:
- the Agreement between the Government of the Republic of Kazakhstan and the
Government of the Republic of Azerbaijan on Cooperation in the Sphere of Protection of
Industrial Property;
- the Agreement between the Government of the Republic of Kazakhstan and the
Government of Georgia on Cooperation in the Sphere of Protection of Industrial Property;
- the Agreement between the Government of the Russian Federation and the Government
of the Republic of Kazakhstan on Cooperation in the Sphere of Protection of Industrial
Property;
- the Agreement between the Government of the Republic of Kazakhstan and the
Government of the Republic of Azerbaijan on Cooperation in the Sphere of Protection of
Copyright and Relating Rights;
- the Agreement on Cooperation in the Sphere of Protection of Copyright and Relating
Rights (Moscow, 24 September 1993)
- the Agreement on Cooperation for Prevention of Violations in the Sphere of Intellectual
Property.
- Application of National Treatment and Most Favorable Treatment to Foreign
Citizens
Under the Constitution of the Republic of Kazakhstan, the Civil Code of the Republic of
Kazakhstan, foreign legal entities and natural pers ons shall have the right to national treatment and
most favorable treatment granted in accordance with international agreements to which the Republic
of Kazakhstan is party, or on mutuality binding principles.  The corresponding provisions are set outin Article 38 of the Patent Law of the Republic of  Kazakhstan of 16 July 1999, and Article 48 of theWT/ACC/KAZ/40
Page 46
Law of the Republic of Kazakhstan of 26 July 1999 "On Trademarks, Service Marks, and
Appellations of Origin".
Also, under Article 5 of the Law of the Republic of Kazakhstan of 10 June 1996 "On
Copyright and Relating Rights", foreign natural persons and legal entities may be granted national
legal treatment.
Protection of intellectual property in the Republic of Kazakhstan implements requirements set
out in Articles 3 and 4 of the WTO Agreement on Trade-Related Aspects of Intellectual Property
Rights (the TRIPS Agreement).
- Independent Protection Standards, including Procedures for Acquisition and
Enforcement of Intellectual Property Rights
- Copyright and relating rights, including rights of performers, phonogram
producers, and broadcasting organizations
The definitions of the copyright subject ma tter, including cinematographic works and
computer programs, contained in Articles 6-8 of the Law of the Republic of Kazakhstan of
10 June 1996 "On Copyright and Relating Rights" have been significantly extended to incorporate all
forms of copyright covered by Articles 9-12 of the TRIPS Agreement and Articles 2 and 2 bis of the
Berne Convention.
- Rights of authors
In pursuance of the corresponding provisions of the Berne Convention and the TRIPS
Agreement, the Law of the Republic of Kazakhstan of 10 June 1996 "On Copyright and Relating
Rights" provides authors and their successors to the right of ownership an exclusive right to
reproduction, broadcasting, public performance, cinematographic versions and other adaptations,introduction of alterations, and conclusion of agreements for public performance of their works.  In
pursuance of Articles 12-14 of the TRIPS Agreement and Article 7 of the Berne Convention, works
shall be protected during the lifetime of the author  and for a term of 50 years following his death.
- Rights of performers
In pursuance of Article 14(1) of the TRIPS Agreement, Article 37 of the Law of the Republic
of Kazakhstan of 10 June 1996 "On Copyright and Relating Rights" gives priority to the protection of
the right of performers against recording of performances or theatre productions that were not
previously recorded, as well as against broadcasting or other form of transmission of their works.
- Rights of phonogram producers
In pursuance of Article 14(2) of the TRIPS Agreement, Articles 34-38 of the Law of the
Republic of Kazakhstan of 10 June 1996 "On Copyrigh t and Relating Rights" stipulate that producers
of phonograms shall have the right, inter alia , to prohibit unauthorised production, reproduction, sale,
and import of phonograms.
- The right of broadcasting organizations
In pursuance of Article 14(3) of the TRIPS Agreement, Articles 34-37 and 39-41 of the Law
of the Republic of Kazakhstan of 10 June 1996 "On Copyright and Relating Rights" stipulate that
broadcasting organizations shall have the right to prohibit the following actions:  performance,reproduction of performances and broadcasts using wireless communication devices.WT/ACC/KAZ/40
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- Protection of performers, phonogram producers, and broadcasting
organizations
In pursuance of Article 14(5) of the TRIPS Agreement, Article 42 of the Law of the Republic
of Kazakhstan of 10 June 1996 "On Copyright and Relating Rights" stipulates that performers,
phonogram producers, and broadcasting organization shall have the right to protection for a period of50 years following the first performance (theatre production), publication of a phonogram, or
broadcast, respectively.
- Trademarks, including Service Marks
The Law of the Republic of Kazakhstan "On Trademarks, Service Marks, and Appellations of
Origin" (hereafter – the Law on Trademarks) has been adopted on 26 July 1999.  The Law
implements all requirements set out in Articles 15-24 of the TRIPS Agreement.  Thus, Article 5 of the
Law stipulated that trademarks may be represented by figurative, alphanumeric, 3D and other signs orcombinations thereof serving to distinguish goods and services of one person from similar goods and
services of other persons.  Trademarks shall be protected for a period of ten years following filling of
the application.  The term shall be subject to subsequent renewal for ten years, and shall be renewable
infinitely.  Under the Law of Trademarks, the owne r of the trademark shall use it on goods or for
designation of services.  Furthermore, the Law stipulates that interested parties may requirecancellation or revocation of the registered trademark after an uninterrupted period of five years of
non-use following registration, or after an uninterrupt ed period of five years immediately preceding
the initiated opposition procedures.  Thus, protection of trademarks also covers provisions of Articles
5(3) and 19 of the TRIPS Agreement.
- Geographical Indications, Including Countries of Origin
Under Article 22 of the TRIPS Agreement, geographical indications which identify a good as
originating in some territory, or a region or locality in that territory, where a given quality, reputation
or other characteristic of the good is essentially attributable to its geographical origin, may be
registered in the patent office.  Procedures for registration of geographical indications or appellations
of origin shall be identical to procedures set for the registration of trademarks.
-P a t e n t s
According to the Patent Law of the Republic of Kazakhstan, the provisions of the Law shall
extend to industrial property subject matter, comprising inventions, industrial designs, and utility
models.  The subject matter of an invention may be 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 shall be granted legal protection if it is new, involves an
inventive step and is industrially applicable (this provision implements Article 27(1) of the TRIPSAgreement).  In pursuance of Article 27(2) and (3) of the TRIPS Agreement, the Patent Law
stipulates that the following shall not be recognized as patentable inventions: discoveries, scientific
theories, mathematical methods; methods of economic organization and management; symbols,
schedules, and rules; rules and methods of mental activities; algorithms per se and computer
programs; projects and plans of buildings and stru ctures, and land development; proposals concerning
solely the outward appearance of manufactured goods; and proposals, the prevention of the
commercial exploitation of which is necessary to protect ordre public  or morality.
An application for a provisional patent shall be examined after a term of two months
following the date of receipt within which time the applicant shall have the right to amend or correct
the elements of the application on his own initiative, provided that the amendments or corrections donot modify the subject matter of the claimed industrial property subject matter.  In case where theWT/ACC/KAZ/40
Page 48
preliminary examination resulted in a decision to issue a provisional patent and following payment of
set fees, the details shall be published in the Gazette of the patent office.  The substantive examination
of the subject matter shall be carried out by the patent office at the request of the applicant or the
owner of the provisional party, filed within three years after the receipt of the application or within
five years in case of renewal of the term of the provisional patent.  Where the substantive examinationreveals that the subject matter complies with the conditions of patentability, the patent office shall
grant a patent for a term of 20 years starting on the date when the application was filed (this provision
implements requirements of Article 33 of the TRIPS Agreement).
Where the applicant wishes to contest a decision refusing the grant of a title of protection, he
may do so by lodging an appeal with the Board of Appeal, prior to initiating any court proceedings.
Also, the Law allows the applicant to appeal decisi ons of the Board of Appeal of the Committee in the
court of law, which provision implements requir ements of Article 32 of the TRIPS Agreement.
Under the Patent Law, the owner of a provisiona l patent or a patent shall have an exclusive
right to use the industrial property subject matter at his own discretion (this provision implements
Article 28 of the TRIPS Agreement).  Under the Law, the following actions shall be deemed as
infringing exclusive rights of the patent owner manuf acturing, utilisation, sale, stocking, and any other
form of distribution for commercial purposes of goods produced by means of the unauthorised use ofthe protection invention.  Any party, other than th e patent owner, shall have the right to use the
protected invention only upon authorization of the patent owner and under the licensing agreement
subject to registration with the Committee on Intellectual Property Rights, while any interested party
shall have the right to file with the court of law an application for an obligatory license to use the
invention, if supported by evidence of  an uninterrupt ed period of four years of non-use, immediately
preceding the date of the filing of an application, after the first publication of particulars of the issued
title of protection.  If the court decides to issue th e obligatory license, it shall be non-exclusive, while
the amount of payment shall not be lower than the mark et value of the license to be determined by the
court in accordance with the established practice.
- Industrial Designs
Rights to industrial designs are also regulated by the Patent Law of the Republic of
Kazakhstan and certified by provisional patents and patents, if industrial designs meet the
patentability requirements, including novelty, inventive steps, and industrial applicability (this
provision implements Article 25(1) of the TRIPS Ag reement).  Provisional industrial design patents
shall be valid for five years, industrial design patents – for ten years, following filling of an
application, and may be extended at the request of the patent owner for a period not exceeding five
years.  The owner of the industrial design patent shall have an exclusive right to use the industrialdesign.  Any other party, other than the patent owner, shall have the right to use the protected
industrial design only upon authorization of the patent owners and under the licensing agreement
subject to registration with the Committee.
Rights to utility models shall be certified by utility model patents, if utility models meet the
patentability requirements, including novelty and industrial applicability.  Utility model patents shallbe granted for a period of five years, subject to subsequent renewal at the request of the patent owner
for a period not exceeding three years.  Exclusive rights to use protected utility models and covered
infringements are identical with the rights and infr ingements determined for protected inventions and
industrial designs.
- Plant Protection
New plant varieties and breeds of animals are granted protection in pursuance of procedures
stipulated in the Law of the Republic of Kazakhstan of 13 July 1999 "On Protection of SelectionWT/ACC/KAZ/40
Page 49
Achievements".  The Law has received a positive evaluation of the International Union for the
Protection of New Plant Varieties (UPOV) certifying its conformity with the International Convention
for the Protection of New Plant Varieties of 2 December 1961.  The adoption of this Law has
implemented requirements of Article 27(3) of the TRIPS Agreement, which requires that the
legislation provide for the protection new plant varieties.
- Layout Design of Integrated Microcircuits
The legal protection of layout designs of integrated microcircuits in the Republic of
Kazakhstan is covered by the Law of the Republic of Kazakhstan "On Legal Protection of Layout
Design of Integrated Microcircuits", which implements the requirements set out in the TRIPS
Agreement.
- Closed Information, including Commercial Secret and Test Results
At present, the legislation of the Republic of Kazakhstan does not include a separate law for
the protection of commercial secrets.  However, Article 126 of the Civil Code of the Republic of
Kazakhstan provides for the protection of inform ation of real or commercial value under the civil
legislation provided that it is unknown to third parties, that confidentiality is strictly preserved, and
that the free access to such information is denied in pursuance of the current legislation Thus,
corresponding provisions of the Civil Code implement requirements of Article 39(2) of the TRIPSAgreement.  Furthermore, the Civil Code of the Republic of Kazakhstan provides for non-disclosure
of data or information received in the course of market authorization or sale of chemical,
pharmaceutical or agricultural products, which provision also implements Article 39(3) of the TRIPS
Agreement.
- Control relating to Infringement  of Intellectual Property Rights
In general, intellectual property rights are protected by the civil legislation in the course of
common court procedures (procedures initiated in the form of a lawsuit).  Also, the legislation of the
Republic of Kazakhstan provides for criminal, administrative, and civil liabilities for the infringement
of intellectual property rights, stipulated in Articles 184, 199 of the Criminal Code of the Republic of
Kazakhstan, Articles 128, 129, 145 of the Code of the Republic of Kazakhstan on AdministrativeOffences, requirements of the Law of the Republic of Kazakhstan on Copyright and Relating Rights,
on Trademarks, the Patent Law and other legislative acts.
- Measures for Enforcement of Intellectual Property Rights
- Court Legal Procedures and Decisions
Under Article 33 of the Patent Law, Article 42 of the Law on Trademarks, provisions of the
Civil and Criminal Code of the Republic of Kazakhstan, an owner of intellectual property rights shall
have the right settle disputes arising from the following in the court of law:
- authorship of industrial property subject matter or legality of the grant of a title of
protection for industrial property;
- infringements of the exclusive right to use the protected industrial property subject matter
and of other economic rights of the owner of the title of protection;
- identification of the patent owner;
- grant of a compulsory license;
- conclusion and execution of license contracts for the use of the protected industrial
property subject matter;WT/ACC/KAZ/40
Page 50
- payment of compensation and damages incurred as a result of infringement of exclusive
rights; and
- other disputes on  protection of rights arising from the title of protection.
The owner of the title of protection to the i ndustrial property subject matter shall have the
right to apply for the protection of his economic rights to local authorities or administration, whichshall not be viewed as an action preventing his applying to the court of law, unless there are
provisions to the contrary set out in the legislation of the Republic of Kazakhstan.
- Provisional measures
Provisions set out in Article 50 of the TRIPS Agreement are implemented in the new draft
Customs Code.
- Administrative mechanisms and procedures
The Civil Code and the Law 'On Development of Competition and Restriction of Monopolies'
define legal liabilities for actions restricting competition; actions, classified as unfair competition, and
actions relating to misuse of the dominating position.
- Special Border Measures
At present, the normative base regulating relations in this sphere is represented by Articles
218-1 – 218-5 of the Law of the Republic of Kazakhstan "On Customs in the Republic ofKazakhstan".  They define main elements of the mechanism of customs control applied to goods
containing works of intellectual property, transported across the border of the Republic of
Kazakhstan.  Also, they provide for adoption of a number of legislative acts targeted at the control
enforcement.
- Criminal Procedures
Under Part I Article 184 of the Criminal Code of the Republic of Kazakhstan, illicit use of
copyrighted works and works covered by relating rights, and illicit use of an invention, industrial
design or model, disclosure without consent of an author or an applicant of the subject matter 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 shall result in fines equal to 100-500monthly calculation indexes, or to the amount of wages or other  income received by the convict for a
period of one to five months, or in public works for 180 to 240 hours, or in a prison term of up to
two years, if the action was performed with the view to receive profits and resulted in severe damages.
Actions covered by Part I Article 184, if repeated or committed by a group of persons upon
preliminary agreement or by an organized group shall result in fines equal to the amount of wages or
other  income received by the convict for a period of five to nine months, or in detention for four to
six months, or in a prison term of up to 5 years, while the property of the convict may be confiscated.
Also, Article 199 of the Criminal Code determines responsibility for illicit use of trademarks.
Thus, illicit use of a trademark, service mark, brand name, appellation of origin or other designations
goods or services of the same nature shall result in fines equal to 200-500 monthly calculation
indexes, or to the amount of wages or other  income received by the convict for a period of two to five
months, or in public works for 180 to 240 hours, or in detention for up to 6 months, or in a prison termof up to two years, if the action was performed repeatedly and resulted in severe damages.WT/ACC/KAZ/40
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Illicit use of labels with respect to trademarks and appellations of origin that are not registered
in the Republic of Kazakhstan shall result in fines equal to 100-200 monthly calculation indexes, or to
the amount of wages or other  income received by the convict for up to two months, or in public
works for 120 to 180 hours, or in detention for up to three months, or in a prison term of up to one
year, if the action was performed repeatedly and resulted in severe damages.
- Legislative Acts
- Civil Code of 24 December 1994 (General Part);
- Civil Code of 1 July 1999 (Specific Part);
- Law of the Kazak Soviet Socialist Republic of 5 June 1991 "On Protection of Consumer
Rights";
- Law of the Republic of Kazakhstan of 19 January 2001 "On Competition and Restriction
of Monopolies";
- Law of the Republic of Kazakhstan of 19 June 1997 "On Individual Entrepreneurship";
- Patent Law of the Republic of Kazakhstan of 16 July 1999;
- Law of the Republic of Kazakhstan of 26 July 1999 "On Trademarks, Service Marks, and
Appellations of Origin";
- Law of the Republic of Kazakhstan of 10 June 1996 "On Copyright and Relating Rights";
- Law of the Republic of Kazakhstan of 13 July 1999 "On Protection of Selection
Achievements";
- Law of the Republic of Kazakhstan of 29 June 2001 "On Legal Protection of Design
Layout of Integrated Microcircuits";
- Resolution of the Government of the Republic of Kazakhstan No.411 of March 29, 2001
'On Issues Relating to the Committee on Intellectual Property Rights of the Ministry of
Justice of the Republic of Kazakhstan';
- Resolution of the Government of the Republic of Kazakhstan No. 756 of 11 July 2002
"On Establishment of the Republican State Enterprise 'National Institute on Intellectual
Property of the Committee on Intellectual Property Rights of the Ministry of Justice of the
Republic of Kazakhstan'";
- Resolution of the Government of the Republic of Kazakhstan No. 1249 of
26 September 2001 "On Approval of the Concept of Protection of Intellectual Property
Rights"; and
- Resolution of the Government of the Republic of Kazakhstan No. 591 of 29 May 2002
"On Approval of the Program for Implem entation of the Concept of Protection of
Intellectual Property Rights".
- POLICIES AFFECTING TRADE IN SERVICES
The service sector is one of the most dynamic sectors of the economy, and its role is 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.
The dynamics of the import of services is considerably higher than the dynamics of export.  Theresulting imbalances in the sphere of international service have a pronounced influence on the deficit
in current operations, registered in the balance of payments of the Republic of Kazakhstan in 2001
and 2002.
In the sphere of trade in services, enterprise s with foreign direct investments (FDI) account
for more than 90 per cent of the turnover in construction and business services.  Among servicesprovided by foreign suppliers are geological prospecting and product certification, legal and other
consulting services, electronic data processing, engineering and technical services.WT/ACC/KAZ/40
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The growth of the share of services in GDP is rooted in the development of the market
infrastructure of the Republic of Kazakhstan and the development of new types of services –
consulting, auditing, advertising, etc..  Noting the growing role of services in the national economy, it
should be emphasized that at this stage the legislation of the Republic of Kazakhstan is rather poorly
developed for certain service sectors, and is practically non-existent for others.
The statistical base of service sectors is also at the initial stage of development.  At present, it
cannot ensure adequate reflection of the dynamics of service sectors, and provide reliable information
on the level of presence of foreign service suppliers in any given service sector.  Taken together, all of
the above set serious complications for determination of exact criteria for further liberalization and
undertaking by the Republic of Kazakhstan of commitments to this effect.  Hence, the Republic of
Kazakhstan intends to apply provisional measures of state regulation of trade in services in order to
ensure development of competition, based on well-balanced levels of development of the market ofservices and labour so as to prevent adverse economic and social effects in the national economy.
The last five years showed some progress in the development and adoption of laws regulating
some service sectors, based on which the Republic of Kazakhstan undertook commitments for market
access in services.  The last version of the Schedule of Commitments in Services of the Republic of
Kazakhstan, incorporating the maximum number of comments and requests of WTO member based
on economic practicability, has been submitted to the WTO Secretariat in June 2002.
In a number of service sectors, liberalization has had adverse effects on the level of
employment, in particular, in the sector of construction services, where the bulk of large projects is
implemented by foreign contractors using foreign workforce.
Developed industrial infrastructure in place in a number of service sectors, qualified
workforce, existing conditions for training, retrai ning, and advanced training of employees, all create
a favorable environment for the development of the domestic service market. Based on the above, and
in order to develop competition in the sphere of services, the Republic of Kazakhstan intends to
introduce appropriate changes and amendments to the laws, regulating service sectors.  One of the
mechanisms for regulation of trade in services is represented by licensing.  Under the Schedule ofCommitments of the Republic of Kazakhstan in Services, providing for licensing of certain types of
activities, foreign natural persons and legal entities shall obtain licenses under the same procedures as
those set for natural persons and legal entities of the Republic of Kazakhstan.
The Law of the Republic of Kazakhstan "On Culture" (hereafter – the Law) defines national
policies in the sphere of culture, regulates public relations arising from creation, revival, preservation,
development, use, and dissemination of the national culture.  The Law stipulates a special treatment
for sites of the national cultural heritage, under which all forms of negotiations with sites entered inthe State Register including their demolition, relocation, alteration, reproduction, and restoration shall
be prohibited unless authorized by the responsible body.  All forms of exploitation of sites of the
national cultural heritage for purposes inconsistent with their historical, artistic, and religious value
shall also be prohibited.  Sites of special cultural value owned by religious organizations may be used
for religious purposes.  Cultural institutions shall have priority in exercising their rights to usearchitectural monuments.  Owners and users of sites of the national cultural heritage shall be
responsible for their maintenance and preservation.  Rights of owners of sites of the national cultural
heritage shall be exercised under control and following procedures, determined by the legislation,
while the State shall have a priority right to buy sites of the national cultural heritage of the Republic
of Kazakhstan in cases where they should be offered for sale.
Ministries and agencies involved shall monitor activities of foreign service suppliers, to
ensure that they fulfill requirements stipulated in concluded contracts on the attraction of foreign
investments, including:WT/ACC/KAZ/40
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- use of modern technologies and machinery;
- attraction of Kazakhstani experts;
- implementation of environmental protection measures (land recultivation, construction of
treatment facilities, waste utilisation); and
- development of the social sphere and local infrastructure, etc.
The Republic of Kazakhstan will need to implement measures for regulation of currency
transactions as well as other operations relating to monitoring of the internal debt of the Republic of
Kazakhstan and attractions of credits or loans of international financial markets to enable issue and
placement of bonds and other securities outside the Republic of Kazakhstan in cases where emerging
risks of external obligations are too high.
- Transparency
Under Article 3 of the Constitution of the Republic of Kazakhstan, all laws, international
treaties, to which the Republic of Kazakhstan is party, shall be published. Official publication of
normative legislative acts affecting rights, freedoms, and responsibilities of the population, shall be a
pre-requisite for their application.  Under Article 30 of the Law of the Republic of Kazakhstan of
24 March 1998 "On Normative Legislative Acts", official publications comprise the Journal of the
Parliament of the Republic of Kazakhstan and the Corpus of the acts of the President of the Republicof Kazakhstan and the Government of the Republic of Kazakhstan.
Normative legislative acts may also be published officially in periodicals, granted this right
based on the results of bidding, in accordance with procedures set by the Government of the Republic
of Kazakhstan.
Legislative acts of the President of the Republic of Kazakhstan, resolutions of the
Government of the Republic of Kazakhstan, central executive and other central public bodies of the
Republic of Kazakhstan may be officially published only in periodicals, circulated in the entire
territory of the Republic of Kazakhstan.  Decrees of the President of the Republic of Kazakhstan,
resolutions of the Government of the Republic of Kazakhstan shall be officially published in the
Corpus of the Acts of the President of the Republic of Kazakhstan and the Government of theRepublic of Kazakhstan.
Normative legislative acts of Maslikhats, normative legislative resolutions of Akimats, and
normative resolutions of Akims shall also be officially published in periodicals, circulated in the
territory of the corresponding administrative units.
- INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
- Regional Agreements
At present, trade relations of the Republic of Kazakhstan with other CIS countries (excluding
Turkmenistan) develop in the free trade environment, under which imported or exported goods are
exempt from customs duties, except for a number of goods included in the Schedule of Exemptions.
This Schedule is covered by the protocols on exemptions from the free trade environment under
bilateral agreements on free trade.
The Republic of Kazakhstan is party to a number of agreements with Belarus, Kyrgyzstan,
Russia, and Tajikistan, providing for a stage-by-stage establishment of the Customs Union.WT/ACC/KAZ/40
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The Agreement on the Unified Customs Tariff (UCT) in force since 1 January 2001 within
the Customs Union of Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan sets unified rates of
import customs duties.  The unified customs tariff shall be formed within five years following the date
of enactment of the Agreement, which term may be  extended under an agreement reached by parties.
On 10 October 2000 the Heads of the Customs Union member-countries signed the
Agreement on Establishment of the Eurasian Economic Association (EurAzEs), which provides for
invigoration of the processes aimed at the establishment of the Customs Union and the Single
Economic Space.
The EurAzEs is designed to help solve the issu es relating to a full-scale implementation of the
free trade environment; development of common procedures of foreign trade regulation; creation of
the common customs territory governed by the common mechanism of functioning of the common
customs territory.
The Heads of Kazakhstan,. Russia, Ukraine, and Belarus, have signed a Joint Declaration on
the New Stage of Economic Integration and Opening of Negotiations on Creation of the Single
Economic Space.
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