RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/KGZ/13/Rev.1 
3 July 1998 
 (98-2655) 
Working Party on the Accession  
of the Kyrgyz Republic Original:   English 
 
DRAFT REPORT OF THE WORKING PARTY 
ON THE ACCESSION OF THE KYRGYZ REPUBLIC 
 
Revision 
I. INTRODUCTION  
1. On 13 February 1996, the Government of th e Kyrgyz Republic reque sted accession to the 
World  Trade Organization (WTO).  At its meeting on 16 April 1996 the Genera l Council established a 
Working Party to examine the application of the Gove rnment of the Kyrgyz Republic to accede to the 
WTO Agreement under Article XII, and to submit  to the General Council recommendations which 
could include a draft Protocol of Accession.  Memb ership of the Working Pa rty was open to all WTO 
Members.  The terms of reference and the membership of the Working Party were reproduced in document WT/ACC/KGZ/2/Rev.2. 
2. The Working Party met on 10 and 11 March, a nd 18 July 1997, 5 February, 6 May, 23 June and 
... 1998 under  the Chairmanship of Mr. J.-M. Metzger (France).   
II. DOCUMENTATION  
3. The Working Party had before it, to serve as  a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of  the Kyrgyz Republic (WT/ACC/KGZ/3) and the questions submitted by 
Members of the Working Party on the foreign trade re gime of the Kyrgyz Republic, together with the 
replies thereto (WT/ACC/KG Z/5 and Addendum 2, WT/ACC /KGZ/7, WT/ACC/KGZ/9,  
WT/ACC/KGZ/10 and Addendum 1,  WT/ACC/KGZ/13, WT/ACC/KGZ/15 and WT/ACC/KGZ/16)  
and other information provided by the Kyrgyz Republic authorities.  The Government of the 
Kyrgyz Republic  made available to the Working Party the following documentation: 
- The Constitution of the Kyrgyz Republic  
Laws 
- The Civil Code of the Kyrgyz Republic,  
- Bankruptcy Law in force since 19 Apri l 1994 Law on Bankruptcy of 15 October 1997 
- Law No. 1057-XII of 12 December 1992 On  Banks and Banking (with amendments 
No. 1394-XII of 12 January 1994) 
- Law No. 1357-XII of 10 January 1994 On  the Principles of the Budget  
- Law No. 6 of 2 April 1996 On Cer tification of Goods and Services WT/ACC/SPEC/KGZ/13/Rev.1 
Page 2  
- Resolution of the Government of the Kyrgyz Republic No. 520 of 2 December 1995 On 
Adoption of the Regulation on the Procedure of Control of the Goods Imported to the Kyrgyz 
Republic 
- Resolution of the Government No. 260 of 28 April 1994 On Adoption of the List of Goods 
(Works and Services), Produced On the Territo ry of the Kyrgyz Republic and Imported to its 
Territory, Which are Subject to Certific ation On the Indicators of Safety 
- Law No. 915-XII of 29 June 1992 On Commod ity Exchange and Exchange Trade in the 
Kyrgyz Republic 
- Law On Pledge of 6 March 1992 - Law No. 768-XII of 28 February 1992 On Pr otection of Consumer Rights of 10 December 
1997(as amended by the Law of the Kyrgyz  Republic No. 1426-XII of 14 January 1994) 
- Law of 6 March 1992 On Concessions and Foreign Concession Enterprises 
- Law of 7 February 1992 On Customs Code of 30 July 1997 - Resolution On implementation of the Custom Code - Resolution of the Supreme Soviet of th e Republic of Kyrgyzstan No 769-XII of 
28 February 1992 -  On Implementing the Law On Consumers Rights Protection 
- Law No. 683-XII of 20 December 1991 On General Principles of  Denationalization, 
Privatization and Undertakings in Kyrgyz Republic  (to be extended and spec ified by Laws as of 
6 March 1992 No. 876-XII;  2 July 1992 No. 939- XII; 8 May No. 1229-XII;  12 January 1994 
No. 1382-XII;  16 April 1994 No. 1501-XII;  23 June 1995 No. 5-I;  28 September and 
11 October 1995 No. 30-I; Resolution of Pa rliament of 12 January 1994 No. 1386-XII). 
- Resolution of Supreme Soviet of the Republic of Kyrgyzstan No. 684-XII of 20 December 1991 
On the Procedure of Putting into Force of the Law of the Republic of Kyrgyzstan About the 
General Principles of Denationalization, Privat ization and Undertakings - Law No. 1385-XII of 
12 January 1994 On Denationalization and Privatiz ation of State Ownership in the Kyrgyz 
Republic 
- Decree of the Zhogorku Kenesh of the Kyrgyz  Republic No 1386-XII of 12 January 1994 On 
the Procedure for the Introducti on into Operation of the Law of the Kyrgyz Republic On 
Denationalization and Privatisation of St ate Ownership in the Kyrgyz Republic 
- Law No. Y16-XII of 17 April 1991 On  Protection of the Environment 
- Law No. 6-1 of 5 July 1995 On Operations in Foreign Currency - Law No. 1076 of 16 December 1992 On Free  Economic Zones in the Kyrgyz Republic (as 
amended by the Law of the Kyrgyz Republic No. 2 of 15 March 1996) 
- Resolution of the Supreme Soviet of the Ky rgyz Republic No. 1077-XII of 16 December 1992 
On implementation of the Law of the Kyrgyz  Republic On FEZ in the Kyrgyz Republic 
- Law No. 536-XII of 28 June 1991 On Foreign Inve stments in the Kyrgyz  Republic (as amended 
by the Law of the Kyrgyz Republic No. 1221-XII of 7 May 1993 and No. 20-1 of 26 September 1995) 
- Resolution of the Supreme Soviet of the Ky rgyz Republic No. 537-XII of 28 June 1991 On 
Order of Implementing the Law of the Kyrgyz Re public On Foreign Invest ments in the Kyrgyz 
Republic 
- Law of 18 April 1991 On Common Prin ciples of Foreign Economic Activity 
- Law No. 943-XII of 2 July 1992 On People's He alth Protection (as amended by Law of the 
Kyrgyz Republic No. 1091-XII of 18 December 1992) 
- Resolution Of the Supreme Soviet of the Kyrgyz Republic No 944-XII Regulations for 
Enforcement of the Law of the Kyrgyz Republic On People's Health Prot ection in the Kyrgyz 
Republic 
- Law No. 670-XII of 18 December 1991 On Insurance - Resolution of the Supreme Soviet of th e Republic of Kyrgyzstan No. 671-XII of 
18 December 1991 On implementation of the Law of  the Republic of Kyrgyzstan On Insurance 
- Law No. 1548-XII of 27 May 1994 On Making,  Ratifying, Implementing and Denouncing 
International Agreements of the Kyrgyz Republic 
- Resolution No. 1549-XII of 27 May 1994 On bringing into force the Law of the Kyrgyz 
Republic On making, ratifying, implementing a nd denouncing the International Agreements of 
the Kyrgyz Republic  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 3 
 
- Law No. 1478-XII of 14 April 1994 On the Local Taxes and Fees 
- Resolution of the Parliament of the Kyrgyz Republic of the 14 April 1994 On the 
implementation procedure of th e Law of the Kyrgyz Republic On local taxes and fees 
- Law No. 7 of 2 April 1996 On Pr oviding Unity of Measurements 
- Law of the Kyrgyz Republic (enforced by Reso lution of the Supreme Soviet No. 949-XII) of 
3 July 1992 On Medical Insurance of the Citizen s of the Kyrgyz Republic (as amended by the 
Law of the Kyrgyz Republic No. 27-I of 28 July and 26 September 1995) 
- Law of 15 December 1992 On Mineral Resources - Resolution of the Kyrgyz Republic Supreme Soviet of 15 December 1992 On the Manner of 
Implementation of the Kyrgyz Republic Law On Mineral Resources 
- Draft Law of the Kyrgyz Republic On the Limitation of Monopolistic Activities and the 
Development and Protection of Competition of 15 April 1994 
- Law On the National Bank - Law No. 1481-XII of 14 April 1994 On Non-Tax Payments - Law No. 34 of 1 July 1996 On Normativ e Legal Acts of the Kyrgyz Republic 
- Law of the Kyrgyz Republic (enforced by Reso lution of the Supreme Soviet No. 946-XII) of 
2 July 1992 On Sanitary-Epidemic Welfar e of the Kyrgyz Republic's Population 
- Law of the Kyrgyz Republic On Securi ties and Stock Exchanges of 21 December 1991 
- Law of the Kyrgyz Republic of 2 April 1996 On Standardization  - Law No. 1072-XII (enforced by Resolution of the Supreme Soviet of the Kyrgyz Republic 
No. 1073-XII of 16 December 1992) of 16  December 1992 On the State Fee 
- Law No. 874-XII of 6 March 1992 On the State Tax Service 
- Law No. 1553-XII of 28 May 1994 On the Basic Principles of the Treasury of the Kyrgyz 
Republic 
- Law No. 660-XII of 17 December 1991 On Taxes from Companies, Associations and 
Organizations (as amended by Laws:  No . 872-XII of 6 March 1992, No. 925-XII of 
30 June 1992, No. 1088-XII of 17 December 1992,  No. 1237-XII of 8 May 1993, No. 1416-XII 
of 13 January 1994, No. 1525-XII of 25 May 1994,  No. 25-I of 27 July and 26 September 1995 
and No. 24 of 26 June 1996) 
- Law of the Kyrgyz Republic On Ta xes from Population of 27 December 1991 
- Law No. 1472-XII of 14 April 1994 On Principles  of Taxation System in the Kyrgyz Republic 
- Law on Procurement of Goods, Works and Services of 13 May 1997 - Law on Subsurface Resources of 2 July 1997 
- Law on State Regulations of Foreign Economic Activities of 2 July 1997 
- Law on Banks and Banking Activities of 29 July 1997 - Law on National Bank of 29 July 1997 - Amendments to the Customs Tariff Law of 30 July 1997 - Law on Foreign Investme nt of 24 September 1997 
- Civil Code Part II (section on in tellectual property) of 5 January 1998 
- Criminal Code (section on intell ectual property) of 1 January 1998 
- Law on Copyrights and Neighbouring Rights of 14 January 1998 - Law on Trademarks, Servicemar ks and Appellation of Places of Origin of 14 January 1998 
- Patent Law of 14 January 1998 - Amendments to Part I of the Civil Code of 15 October 1997 
- Law on Integrated Circuits Topology of 30 March 1998 
- Law on Commercial Se crets of 30 March 1998 
- Law on PC, Software and Databases of 31 March 1998 
Presidential Decrees  
- Presidential Decree No. 134 of 5 May 1993 On Regulating Currency Transactions 
- Presidential Decree of 9 June  6 September 1994 On Addi tional Guarantees for Foreign 
Investors in the Kyrgyz Republic 
- Presidential Decree No. 246 of 27 July 1992 On  the State Commission of the Kyrgyz Republic 
for Foreign Investments and Economic Assistance WT/ACC/SPEC/KGZ/13/Rev.1 
Page 4  
- Presidential Decree No. 270 of 9 September 1992 On Measures for Organization of Expert 
Examinations of Foreign Investments 
- Presidential Decree No. 280 of 23 September 1992 On Changing  the Procedure for Licensing 
Raw Materials, Consumer Goods and Products  of Productional and Technical Purpose 
- Presidential Decree No. 35 of 9 February 1993 On Changes in the State Regulation of Foreign 
Economic Activities in the Kyrgyz Republic (as amended by Presidential Decrees No. 219 of 
30 July 1993, No. 5 of 12 January 1994, No. 32 of 23 March 1994 and No. 36 of 
9 February 1995) 
- Presidential Decree No. 121 of 2 April 1992 On  Regulation of Foreign Economic Activity in the 
Kyrgyz Republic 
- Presidential Decree No. 140 of 11 April 1996 On Measures to Improve Coordination of 
Privatization with Attraction of Forei gn Investment to the Kyrgyz Republic 
- Presidential Decree No. VII-165 of 13 Ma y 1996 On Additional Measures on Introduction of 
State Monopoly to the Production, Storage,  Sale of Alcohol and Alcoholic Products 
- Presidential Decree No. 207 of 19 June 1992 On  Licensing Certain Kinds of Businesses (as 
amended by Presidential Decrees:  No. 302 of  27 October 1992, No. 106 of 6 April 1993, No. 6 
of 12 January 1994, No. 22 of 22 February 1994, No. 74 of 7 May 1994, No. 148 of 
4 July 1994, No. 177 of 15 July 1994, No. 235 of 7 September 1994, No. 254 of 6 October 1994, No. 36 of 9 February 1995, No. 70 of 11 March 1995, No. 177 of 17 July 1995, No. 322 of 25 November 1995) 
- Presidential Decree No. 234 of 9 June 1994 On Additional Guar antees for Foreign Investors in 
the Kyrgyz Republic 
- Presidential Decree No. VII-301 of 12 Nove mber 1994 On the Arrangements for Increasing 
Control Over the Market of Securities of the Kyrgyz Republic 
- Presidential Decree No. 319 of 9 Decembe r 1994 On the Bishkek Foreign Investments 
Attraction Zone 
- Presidential Decree No. 34 On Some Measur es for Protection and Development of Private 
Entrepreneurship of 25 March 1994 
- Presidential Decree No. 42  of 27 February 1995 On Impr oving Taxation in Agriculture 
- Presidential Decree No. 45 of 4 March 1996 On  the Structure and Composition of the Cabinet 
of Ministers of the Republic 
Resolutions  
- Resolution of the Cabinet of Ministers No. 373 of 25 August 1995 On Strengthening 
Responsibility for Unauthorized Purchase, Sale  of Scrap and Fragments of Non-Ferrous and 
Ferrous Metals and Th eir Industrial Scra p (as amended by Resolution of the Cabinet of 
Ministers No. 268 of 17 June 1996) 
- Resolution of the Cabinet of  Ministers No. 383 of 12 Septem ber 1995 On the Programme of 
State Investments for 1996-1998 
- Resolution of the Government No. 408 of 13 June  1994 On the Establishment of Provisions on 
the Procedure of Export and Import Li censing Goods in the Kyrgyz Republic 
- Resolution of the Cabinet of Minister s No. 440 of 23 October 1995 On Approving the 
Regulations on the Procedure for Delivery of  Goods and Rendering Services within the 
Framework of Productional Cooperation of Ente rprises and Branches of  the Kyrgyz Republic 
and Other States - the CIS Participants 
- Resolution of the Government No. 484 of 14 November 1995 On Creation of the Consulting 
Agency on International Procurement Under the General Directorate of the State Commission for Foreign Investments and Econo mic aid of the Kyrgyz Republic 
- Resolution of the Cabinet of Ministers No. 49 of 1 February 1996 On the Draft Law of the 
Kyrgyz Republic On the Customs Tariff of the Kyrgyz Republic 
- Resolution of the Cabinet of Ministers No . 52 of 2 February 1996 On Measures of 
Extraordinary Financial Support of Agriculture 
- Resolution of the Go vernment No. 520 of 2 December 1996 On  Adoption of th e Regulation on 
the Procedure of Control of the Goods Imported to the Kyrgyz Republic  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 5 
 
- Resolution of the Government No. 523 of 18 July  1994 On the Rates of the Author's Award for 
Public Performance a nd Other Kinds of Usage the Produc tions of Literature and Arts 
- Resolution of the Government No. 56 of 6 Fe bruary 1996 On the Procedure for the Export and 
Import of Commodities (Goods and Services) in the Kyrgyz Republic 
- Resolution of the Government No. 57 of 5 February 1993 On Procedures of Transfer of 
Articles, Property, Curr ency, Auto-motor Vehicles and Ot her Valuables Through the Customs 
Border of the Kyrgyz Republic 
- Resolution of the Government No. 57 of 6 February 1996 On Confirmation of the List of 
Country-Users of the Preference Scheme in the Kyrgyz Republic 
- Resolution of the Cabinet of Ministers No. 571 of 27 December 1995 On Introduction of 
Applying Excise Marks on Production, Import ation and Sale of Tobacco Products and 
Alcoholic Beverages in the Kyrgyz Republic 
- Resolution of the Cabinet of Ministers No. 613 of 30 December 1993 On Temporary Customs 
Tariff (as amended by Resolutions of the Cabi net of Ministers No. 26 of 21 January 1994 and 
No. 358 of 28 May 1994) 
- Resolution of the Government No. 622 of 18 A ugust 19942 On Customs Regime of Processing 
of Tolling Raw Materials and Goods Within th e Customs Territory of the Kyrgyz Republic 
- Resolution of the Government No. 119 of 20 March 1996 On Adoption of Regulations on 
Equipping Transport Vehicles (Containers) for Ca rriage of Goods with Customs Stamps and 
Seals 
- Resolution of the Government No. 725 of 23 September 1994 On Regulations on the State 
Inspection for Standardization and Metrology at the Government of the Kyrgyz Republic 
- Government Decree No. 82 of 28 February 1996 On Programme of Denationalization and 
Privatization of State Property in  the Kyrgyz Republic for 1996-1997 
- Resolution of the Government No. 9 of 8 January 1996 On Approval of the Resolution on 
Procedures of Use of the Excise Marks in the Kyrgyz Republic on Production, Import and 
Realization of Tobacco Go ods and Alcoholic Drinks 
- Resolution of the Government No. 901 of 30 December 1994 On Regulating the Import of 
Goods, Things and Other Objects by Phys ical Persons in the Kyrgyz Republic 
- Resolution of the Government No. 97 of 22 March 1995 On Main Directions of Foreign 
Economic Activity of the Kyrgyz Republic 
- Resolution of the Government No. 10 of 9 January 1996 On Temporary Regulation On 
Applying Excise Seals On Oil Product s Imported to the Kyrgyz Republic 
- Resolution of the Government No. 109 of 30 March 1992 On Ratification of Resolutions on 
Procedures for Registration of Se curities, on Procedures of Licens ing the Right for Professional 
Stock Market Activities, on Proc edures for Collecting Securities Registration Fees, Licensing 
and Certifying the Right for Impl ementation of Professional Stoc k Market Activities and for 
Collecting Other Fees, on Procedur es for Maintaining the General State Registry of Joint Stock 
Companies, Recording and Accountab ility in Joint Stock Companies 
- Resolution of the Supreme Soviet of th e Republic of Kyrgyztan No. 1126-XII of 
18 December 1992 On Introduction of State Licensin g in Construction Activity in the Kyrgyz 
Republic 
- Resolution of the Government No. 29 of 24 Ja nuary 1994 On Creation of the State Regulation 
of Production, Storage and Dist ribution of Ethyl Spiritus an d Establishing Control over 
Production and Sale of Strong Drinks in the Kyrgyz Republic 
- Resolution of the Government No. 120 of 14 Marc h 1994 On the Results of the Reconstruction 
and Privatization in 1991-1993 and on the Progra mme of the Reconstruction and Privatization 
of State Property in the Kyrgyz Republic in 1994-1995 
- Presidential Decree No. 121 of 2 April 1992 On  Regulation of Foreign Economic Activity in the 
Kyrgyz Republic 
- Resolution of the Supreme Soviet No. 1220- XII of 7 May 1993 On Karakol, Alai, Chon-Alai 
and Kara-Kuldji Free Economic Zones 
- Resolution of the Cabinet of Ministers No. 135 of  27 March 1996 On Clarification of the List of 
Subjects-Monopolists for 1996 WT/ACC/SPEC/KGZ/13/Rev.1 
Page 6  
- Resolution of the Government No. 146 of 5 April 1996 On Supplement of the List of the 
Productions (Works, Services) Produced in the Ky rgyz Republic and Imported to its Territory 
Be Subject to Obligatory Certification of the I ndex Safety, Stipulated to Introduce on the III 
Stage, Approved by the Resolution of the Government of the Kyrgyz Republic No. 260 of 28 April 1994 
- Resolution of the Legislative Assembly of J ogorku Kenesh of the Kyrgyz Republic No. 151-1 
of 23 June 1995 On Creation of Free  Economic Zones of Bishkek City 
- Resolution of the Cabinet of Ministers No. 559 of 21 December 1995 On the Development 
Programme for Export of the Kyrgyz Repub lic for 1996 and Middle-Term Prospects 
- Resolution of the Cabinet of Ministers No. 167 of 16 May 1995 On the Work of the Ministry of 
Communication on Carrying Out First Project of Telecommunication in the Republic Financed 
by the World Bank/MAR and European Bank of Reconstruction and Development 
- Resolution of the Government No. 209 of 10 May 1996 On the Concept of Development of 
Free and Private Market for Grain in the Kyrgyz Republic 
- Resolution of the Cabinet of Ministers No. 242 of 2 June 1993 On Approving the Regulation on 
the Procedure of Licensing Attraction (Hiring) of Manpower from Abroad 
- Resolution of the Government No. 260 of 28 April 1994 On Approval of the Products' List 
(Works, Services) Produced in the Territory of the Kyrgyz Republic and Imported to its 
Territory, Being Subject for Compulsory  Certification on Safety Indications 
- Resolution of the Cabinet of Ministers No. 270 of 7 July 1995 On Approving the Procedure for 
Calculation and Collection of Excise Tax on Produced and Imported Al cohol and Liquor-Vodka 
Products 
- Resolution of the Cabinet of Ministers No. 290 of 7 May July 1993 On Creation of 
Customs-Tariff Council Under the Cabinet of Ministers 
- Resolution of the Government No. 298 of 21 July 1995 On Implementation of the State 
Regulation of Production, Storage and Distri bution of Ethyl Spiritus and Strong Drinks 
- Resolution of the Government No. 3 of 5 Ja nuary 1996 Regulations On the Procedures of 
Imposition of Penalties and Economic Sanctio ns for Violations of the Anti-Monopolistic 
Legislation, Pricing Discipline and Consumers' Rights Protection 
- Resolution of the Cabinet of Ministers No. 300  of 1 July 1996 On State Customs Inspectorate 
Under the Cabinet of Ministers 
- Resolution of the Cabinet of Ministers No. 327 of 17 July 1996 On  the Course of Implementing 
Regulations of the Parliament and the Cabinet of  Ministers On Issues of Introduction of State 
Monopoly in the Sphere of Production, Storage and Sale of Alcohol and Alcoholic Products 
Instructions and Regulations  
- Instruction On Customs Proced ures for Transit Cargo (approved by Order No. 145 of the State 
Customs Inspection on 23 August 1993) 
- Instruction of the Order to Fill the Ca rgo Customs Declarati on (approved by Decree 
No. 05-06/13 of the State Customs Inspection  on 24 January 1996) 
- Instruction On Application of Personal Examina tion  (approved by Order No. 176-1 of the State 
Customs Inspection on 17 September 1993) 
- Order No. 45 of 14 February 1994 On the Proce dure for Licensing Entrepre neurship Activity of 
Paid (i.e. for pay) Medical, Ph armaceutical and Educational Inst itutions and Persons Engaged in 
Private Medical, Pharmaceutical Practice and Paid Training 
- Instruction No. 99-p of 19 March 1993 to appr ove "Statute on the Order of Design, Expert 
Examination and Adoption of Investment Projects for the Construction Sector in the Territory of the Kyrgyz Republic" 
- Regulations for Opening Commercial Banks in th e Kyrgyz Republic (approved by the Board of 
the National Bank of the Kyrgyz Republic No . 1/8 of 23 July 1994 with amendments and 
additions No. 16/4 of 30 June 1995 
- Regulation on State Licensing the Construction Activity Implemented on the Territory of the 
Kyrgyz Republic by Enterprises with Forei gn Investment (approved by Resolution of the 
Collegium of the State Construction of 10 February 1995)  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 7 
 
- Order No. 05-06/12 of 24 January 1996 On Approval of the Regulation on Procedure of Control 
Over the Goods Exported from the Territory of the Customs Union (State Customs Inspectorate Under the Government of the Kyrgyz Republic) 
- Temporary Regulations On Drawing, Submittin g and Considering Applications On Official 
Registration of Software, Data bases and Topographies (Main De partment of Intellectual 
Property of the Ministry of Education and Science of 29 August 1995) 
- Document Regulations On Activities of the Br anches Representative Offices of Foreign Banks 
in the Kyrgyz Republic of 30 June 1994 
- Regulation On State Licensing of Construc tion Activities in the Kyrgyz Republic (with 
amendments by Decree of th e Gosstroi of the Kyrgyz Re public No. 16 of 30 March 1994 and 
No. 30 of 28 September 1995) 
- Temporary Provisions on Industria l Property of the Kyrgyz Republ ic (adopted by Decree of the 
State Committee on Science and New Te chnologies No. 3 of 2 August 1993) 
- Temporary Provisions On Work Inventions , Utility Models and Industrial Designs 
- Order of Receiving Payments for Licence Extradition - Regulations On the Procedures of Impos ition of Penalties and Economic Sanctions for 
Violations of the Anti-Monopolis tic Legislation, Pricing Disc ipline and Consumers' Rights 
Protection (passed by Resolution of th e Government No. 3 of 5 January 1996) 
- Temporary Provisions On Selecti on Achievements of 24 July 1995 
- Regulations on the State Inspection for Standa rdization and Metrology At the Government of 
the Kyrgyz Republic (passed by Resolution of  the Government No. 725 of 23 September 1994) 
- Temporary Regulations On the State Fund of I ndustrial Property (approved by the Ministry of 
Education and Science on 24 July 1995) 
- Regulation On Department of Patent Agency for Trademark and Industrial Model Examination  
- Regulation on Equipping Transport Vehicles (Con tainers) for Carriage of Goods With Customs 
Stamps and Seals (approved by the Resolution of the Government of the Kyrgyz Republic 
No. 119 of 20 March 1996) 
Draft laws and regulations  
- Draft Law on Anti-Dumping 
- Draft Law on Subsidies an d Countervailing Measures 
- Draft Law on Safeguards - Draft Law On Selection Achievements - Draft Amendments to the Law On Certification 
- Draft Amendments to the Law On Standardization 
- Draft Amendments to the Law On Plant Quarantine  - Draft Amendments to the Law On Veterinary - Draft Amendments to the Customs Code - Draft Amendments to the Tax Code 
- Draft Regulations On Import/Export Licensing  
- Draft Regulations on Amendments to Certain Decisions of the Government 
- Draft Amendments on Introducing Changes and Am endments to some Legislative Acts of the 
Kyrgyz Republic (amendments to the Law on No rmative Acts and the Law on Publication of 
Laws) 
III. ECONOMIC POLICIES 
- Foreign exchange and payments system  
4. In response to requests for information, th e representative of the Kyrgyz Republic informed 
members of the Working Party that a highly pro- active monetary policy was being pursued by the WT/ACC/SPEC/KGZ/13/Rev.1 
Page 8  National Bank of the Kyrgyz Republic (NBKR) to stab ilize the foreign exchange value of the Som.  The 
Kyrgyz Republic did not maintain an y exchange restrictions on current account or capital transactions.  
Individuals and legal entities could import and export foreign currency without limitations provided they 
declared the amount to the customs. 
5. The representative of the Kyrgyz Republic adde d that the Kyrgyz Republic had joined the IMF 
on 8 May 1992.  The Kyrgyz Republic accepted the ob ligations of Arti cle VIII of the IMF Articles of 
Agreement in March 1995 and maintained a fully co nvertible currency.  Th e Kyrgyz Republic's quota 
was Special Drawing Rights (SDR) 64.5 million (a bout US$96 million) and its outstanding use of IMF 
credit currently totalled SDR 83.6 million (about US$120 million).   He further noted that on 
11 December 1995, the International Monetary Fund (IMF) had approved a first Enhanced Structural 
Adjustment Facility (ESAF) loan in  the amount of  SDR 88.15 million.  
- Investment regime  
6. Some members of the Working Party enquired whether there were any restrictions to the 
national treatment principle in relation to investment s by foreign persons in the Kyrgyz Republic.  The 
representative of the Kyrgyz Republic stated that the new Law on Foreign Investment of 
16 September 1997 provided guara ntees of national treatment, equitabl e and fair treatment, and full and 
constant protection for foreign investors.  Exceptio ns from national treatment, according to the same 
law, were restrictions connected with defence and th e protection of national security, the health of the 
population, and public moral.  At this point, no such  restrictions had been introduced.  The Law on 
Denationalization and Privatization of State Prop erty of 12 January 1994 provided the Cabinet of 
Ministers with the authority to rest rict or otherwise limit foreign i nvestors from participating in the 
privatization of certain industries;  the Cabinet of Ministers had not ye t exercised this authority, although 
foreign investors could purchase resi dential real property only with the permission of the Cabinet of 
Ministers.  Foreign citizens and legal persons could rent immovabl e property on the same basis as 
Kyrgyz citizens and legal persons.   The Kyrgyz Repu blic would not use such au thority in a manner that 
was inconsistent with its obligations as a future me mber of the WTO.  Foreign investors could freely 
repatriate investments made or profits earned in the Kyrgyz Republic in a freely convertible currency.   
7. Some members of the Working Party asked wh ether foreign investors were protected against 
expropriation or nationalisation of th eir assets.  In response, the repr esentative of the Kyrgyz Republic 
stated that Article 5 of  the new Law on Foreign Investment of September 1997 guaranteed foreign 
investments from expropriation (nat ionalization, requisition or any othe r equivalent meas ure), except in 
cases when such expropriation is carried out for an overriding public purpose, on a non-discriminatory 
basis.  In the event of expropriation of a foreign investment, the Law on Foreign Investment requires 
that a foreign investor be paid prompt, adequate and effective compensation.  Such compensation is  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 9 
 freely transferable and payable in a freely usea ble currency.  Rights es tablished under the Law on 
Foreign Investment are enforceable against the gov ernmental bodies with a ny applicable procedure 
agreed upon between the foreign investor and the authorized governmental bodies of the Kyrgyz 
Republic.  When such agreement is absent an investment dispute between the authorized governmental bodies of the Kyrgyz Republic and a foreign investor  shall be settled through arbitration in accordance 
with one of the following procedures: 
- Regulations of the Arbitration Court under the Chamber of Industry and Commerce of the 
Kyrgyz Republic; 
- Convention for the Settlement of Investment Di sputes between States a nd Citizens of any other 
States, ("Convention ICSID" signed in Wash ington DC on 19 March 1965) if applicable; 
- Arbitration (Auxiliary) Regulations of the In ternational Centre for the Settlement of the 
Investment Disput es (ICSID), if applicable;  and 
- Arbitration Regulations of the United Nations Commission on International Trade Law 
(UNCITRAL Regulations);  in th is case the appointing body sha ll be the Genera l Secretary of 
the ICSID. 
8. In response to questions concerning the ownership of land by foreign investors, the 
representative of the Kyrgyz Republic noted that th e Constitution of the Kyrgyz Republic prohibited the 
private ownership of land by private persons or legal entities, either foreign or local.  There were no 
plans to eliminate that restriction.  Foreign citizens and legal entities could purchase residential 
immovable property attached to land - such as apartm ents and houses - only with the specific permission 
of the Cabinet of Ministers.  Foreign citizens a nd legal entities could rent  immovable property on the 
same basis as Kyrgyz citizens and legal entities. 
- State ownership and privatization  
9. The representative of the Kyrgyz Republic st ated that the Government’s privatization plans 
were organized according to industrial and sectoral prio rities.  In the electric energy sector, the plan was 
to attract foreign investment for the development of hydroelectric power e ngineering, to privatize 
sectoral  enterprises and to modern ize and reconstruct electr ic grid networks.  In the coal industry, the 
plan was to restructure the sector and sector enterprises by reorganizing and, where  necessary, 
liquidating sector enterprises, to develop coal ope n-pit mining with the aim of decreasing production 
costs and to promote energy saving technologies.  In th e oil and gas sector, the plan was to construct and 
bring into operation two small oi l refineries in the next two ye ars and to develop a package of 
documents for conducting an international tender intended for the purpose of attracting foreign 
investment into the exploration and exploitation of oil and gas deposits , to conduct the tender.  In the 
gold extracting industry, the plan was to attract fore ign investment into the e xploration and exploitation WT/ACC/SPEC/KGZ/13/Rev.1 
Page 10  of gold deposits.  Non-ferrous metallurgy (mercury , antimony, tin, tungsten) would be reformed to 
attract foreign investment into the development of  the antimony and mercury metallurgy industry.   
10. The representative of the Kyrgyz Republic further added that in the machine building and metal 
processing sector, the Government planned to reorganize the produc tion of machines, equipment (and 
the parts thereof) for (i) processing agricultural prod ucts, (ii) mechanizing small peasant and family 
farms and (iii) use in the  coal mining industry.   The Government also planned to reform the 
electrotechnical sector to orient enterprises toward the production of complex electrical appliances and 
equipment for the electric energy industry.  Light i ndustry would be reformed to speed up the structural 
transformation of the sector and to find new market s both within and outside the CIS.  More modern 
equipment would be purchased with the aid of Ge rman and  Japanese loan s.  Food production and 
processing industries would be reformed to establish sma ll and medium-sized on-site 
production/processing facilities for milk, meat, fru it and vegetable production and processing.  The 
pharmaceuticals sector w ould be reformed to attract forei gn investment into the domestic 
pharmaceutical industry generally and to complete the construction of "bishkekbiofarm", a chemical 
pharmaceutical plant.  The agricultu re sector would be re formed to attract foreign investment for the 
purpose of developing export-oriented agricultural enterp rises; and to create join t ventures with foreign 
investors for the production of ag ricultural products.  The constructi on sector would be reformed to 
attract foreign investment into the housing construc tion industry and to encour age the manufacturing of 
energy-saving construction materials. 
11. In response to requests for information concerning restrictions on foreign investors participation 
in privatisation, the representative of the Kyrg yz Republic stated that Article 8 of the Law on 
Denationalization of State Property of 12 January 1994, provided th at during the privatization of State 
owned assets, the Cabinet of Ministers could "reduce the number of purchasers to guarantee the priority 
rights of citizens and legal entities of the Kyrgyz Re public."  He noted, however, that this power had not 
yet been exercised.  
12. The representative of the Kyrgyz  Republic stated that the status of privatization in the Kyrgyz 
Republic was provided in Tables 1 and 2 below.  As of 1 January 1998, approximately 64 per cent of 
State-owned objects (base is 1 Janu ary  1991) had been privatized. The total value of privatized state 
objects since 1991 was som 13,418,900 million.  The mass privatization program was completed on 
30 June 1997.  The shares of 1,056 Joint-Stock Compan ies were sold using coupon auctions.  According 
to Article 4 of the Kyrgyz Republic Constitution of 5 May 1993, land, minerals, wate r, air space, forests, 
plant and animal life and all other natural resources were the exclusive property of the State.  According 
to Article 3 of the Law on Privatization and Denation alization of 12 January 1994, objects in exclusive 
ownership of the Kyrgyz Republic coul d not be subject to privatization.  The lease of such property was, 
however, possible.   The Law on Privatization and Denationalization also authorized the Cabinet of  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 11 
 Ministers to specify additional obj ects not subject to denationaliza tion and privatization, even though 
their privatization and denationalization might not be specifically prohibited in the Kyrgyz Republic 
Constitution and the Kyrgyz Republic Law On Privatization and Denationa lization.  The current list of 
objects not subject to privatization is the following: 
- mineral resources, forest fund, water resources, air space; 
- protected or used in a special manner natural territories; 
- objects of historical and cultu ral heritage of the people of Ky rgyzstan (unique cultural and 
natural monuments, objects of natu re, history, culture, science and technology, as well as rarities 
kept in state museums, libraries and their subs idiaries, the association of folk art production 
"Kyial"); 
- property compounds of state power and management bodies; 
- funds of the republican budget and foreign curr ency reserve of the Kyrgyz Republic, Social 
Fund under the Kyrgyz Republic Government, othe r State out-of-the-budget  funds, as well as 
the gold reserve; 
- National Bank of the Kyrgyz Republic, Treasury, Monetary chamber; 
- arms, military equipment and other property of military use, budget-financed entities and 
organizations (including arsenals), as well as  vehicle columns of military type under the 
operative management of the Ministry of Defens e of the Kyrgyz Republic, Ministry of National 
Security of the Kyrgyz Republic; Ministry on emergencies and civil defense of the Kyrgyz 
Republic, Ministry of interior of the Kyrgyz Re public, other ministries and agencies that have 
military units; 
- military objects of CIS countries located on th e Kyrgyz Republic territory in accordance with 
existing inter-state agreements; 
- objects of the civil defense of the Ministry of Emergencies and Civil Defense of the Kyrgyz 
Republic; 
- science-technical entities and organizations within the system of the State agency on forests 
under the Kyrgyz Republic Government; 
- enterprises and science-technologi cal entities and organizations wi thin the system of the State 
inspection on standardization and metrology under the Kyrgyz Republic Government and State 
archive agency under the Kyrgyz Republic Government; 
- entities and organizations subor dinate to the National Committee on Statistics of the Kyrgyz 
Republic; 
- enterprises and organizations of hydro-meteorologi cal service, services of  control over the state 
of environment and protection of the nature; 
- enterprises and organizations of  the mapping-geodesic service; WT/ACC/SPEC/KGZ/13/Rev.1 
Page 12  - enterprises and entities of sanitary-epidemi ological and quarantine service of the Kyrgyz 
Republic, plant protection service; 
- objects and equipment for permanent storage of  hard industrial and hous ehold wastes, hard and 
liquid radioactive wastes, animal cemeteries; 
- cemeteries, enterprises on their service a nd provision of ritual services;  and,  
- technical inventory bureau. 
The Law on Denationalization and Privatization of State Property of 12 January 1994 provided the 
Cabinet of Ministers with the author ity to restrict or otherwise limit foreign investors from participating 
in the privatization of certain industries; however the Cabinet of Ministers ha d not yet exercised this 
authority.   The Kyrgyz Republic would not use such  authority in a manner inconsistent with its 
obligations as a future member of the WTO.  Foreign investors currently participated in the privatization 
process in the Kyrgyz Republic acco rding to the same rules applied to domestic investors.  Privatization 
methods which will be used for privatizing remain ing State assets, subject to privatization were: 
 (i) corporatization (turning a State-owned en terprise into a Joint Stock Company-JSC) 
followed by privatization through sales of shar es using auctions or commercial tenders  
(used mainly for the privatization of medium and large scale enterprises); 
 (ii) transformation of a State-owned object into a limited liability partnership followed by 
sale of partnership rights; 
 (iii) direct sale (including bidding) to strate gic investors (especially foreign companies) of 
large-scale objects.  Companies are invi ted to bid through international press; 
 (iv) direct sale (including bidding), auct ions, and commercial tenders of any objects; 
 (v) lease (contract management) for a period  of time including the right of purchase by 
lessee. 
During 1998, the Kyrgyz Republic planned to begi n privatization and denationalization of  large 
enterprises in strategic sectors of the economy  including mining, energy, telecommunications, and 
systems of supply (oil and gas).  These include comp anies such as Kyrgyztel ecom-telecommunications 
company, Kyrgyz Aba Zholdoru-National airline company, Karabalta-Mining, Kadmajay Antimony, Uchkun JSC-Printing, Akyl JSC-Printing, Kyrgyz Energy Holding, Kyrgyzgasmunaizat, and Bishkek 
Machinery JSC.  Also, the Kyrgyz Republic plan s to privatize and denationalize companies and 
facilities of the non-productive sphere (e.g. movie theatres, recreation objects , resorts) in 1998-2000.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 13 
 
Table 1:  Sectoral  Privatization Data Profile for 1991-1997  
Sector Number of Objects 
of State Property as 
of 1 January 1991 Number of Privatized 
Objects as of 
31 December 1997 Percentage of 
Privatized Objects 
as of 1 January 1998
Industry 602 531 88.2 
Consumer Services 1919 1917 99.9 
Oil Production Sector 1253 434 34.6 
Trade and Public Catering 1949 1894 97.1 
Agriculture 855 354 41.4 
Construction 730 418 57.3 
Transport 295 154 52.2 
Other sectors 2306 673 28.2 
Total 9989 6375 63.8 
 
Table 2:  Sectoral Privat ization Data Profile by Privatization Modes For 1991-1997  
Sector Privatization Mode Number of 
Privatized Objects 
Industry Lease with subsequent buy-out 
Auctioning 
Sale through auctions 
Sale through tenders Gratis transfers Direct sale to private entities Direct sale to labour  collectives (bodies) 
Incorporation (Joint-Stock Companies) 8 
400 
16 
12 
1 
18 49 
27 
Consumer Services Lease with subsequent buy-out 
Auctioning 
Sale through auctions 
Sale through tenders Direct sale to private entities Direct sale to labour  collectives (bodies) 
Incorporation (Joint-Stock Companies) 17 
36 
170 
529 717 440 
8 
Non-production sector Lease with subsequent buy-out 
Auctioning Sale through auctions 
Sale through tenders 
Direct sale to private entities Direct sale to labour  collectives (bodies) 
Incorporation (Joint-Stock Companies) 2 
277 
30 
8 
41 28 48 
Trade and public catering Lease with subsequent buy-out 
Auctioning Sale through auctions Sale through tenders 
Direct sale to private entities 
Direct sale to labour  collectives (bodies) 
Incorporation (Joint-Stock Companies) 41 
213 151 581 
307 
549 
52 
Agriculture Lease with  subsequent buy-out 
Auctioning Sale through auctions 4 
128 
6 WT/ACC/SPEC/KGZ/13/Rev.1 
Page 14  
Sector Privatization Mode Number of 
Privatized Objects 
Sale through tenders 
Direct sale to private entities 
Direct sale to labour  collectives (bodies) 
Incorporation (Joint-Stock Companies) 1 
30 
177 
8 
Construction Lease with subsequent buy-out 
Auctioning Sale through auctions Sale through tenders Direct sale to private entities 
Direct sale to labour  collectives (bodies) 
Incorporation (Joint-Stock Companies) 2 
298 
11 
3 
13 
69 
22 
Transport Auctioning 
Direct sale to private entities 
Direct sale to labour  collectives (bodies) 
Incorporation (Joint-Stock Companies) 137 
3 
11 
3 
Other sectors Lease with subsequent buy-out 
Auctioning Sale through auctions Sale through tenders Direct sale to private entities 
Direct sale to labour  collectives (bodies) 
Incorporation (Joint-Stock Companies) 24 
151 
77 28 
171 
193 
28 
He noted that the private sector ac counted for 49% of GDP in the indus trial sector;  98% of GDP in the 
agriculture sector;  97% of GDP in  the retail sector 79% of GDP in the construction sector and 24% of 
GDP in the transportation sector.  
13. Some members of the Working Party stat ed that the Kyrgyz Republic should accept a 
commitment to transparency in this area which was appropriate to its particular situation.   
14. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would provide 
annually to WTO Members information on developmen ts in its privatization for as long as its 
programme of privatization is in existence along th e lines of the information provided to the Working 
Party during the accession process, a nd on other issues related to its ec onomic reforms as relevant to its 
obligations under the WTO.    The Working Party took note of this commitment.   
- Pricing policy  
15. At the earlier stages of the deliberations, the representative of the Kyrgyz Republic stated that 
all prices had been liberalized except when the concer ned item was supplied by an entity that has been 
classified as either a natural, permitted or temporary monopoly. Certain natural monopolies (electricity, 
gas pipelines, telecommunications, railroad and aviation)  were regulated through either price or profit 
restrictions by the Anti-monopoly Depart ment within the Ministry of Fina nce.  Prices of water supply, 
heat, hot water and public transport were set by city or oblast administrations.  Non-natural monopolies  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 15 
 with  a dominant position in the market (more th an 35 per cent market share) were subject to 
profitability control.  The allowable margin of prof itability had ranged from 25 per cent to 50 per cent.  
At that time, there were 105 companies (mostly goods  producers) subject to profitability control.  
Companies which exceeded their allowable profitability margin had to provide a written justification to 
the Anti-Monopoly Department. 
16. Some members of the Working Party requ ested further information on which natural 
monopolies were subject to pricing or profit controls, and how such controls were operated.  In 
response, the representative of the Kyrgyz Republic late r on, describing the current situation, stated that 
tariff rates were required to be  approved by the Anti-Monopoly Department at the Ministry of Finance 
(AMD), on the basis of levels and no rms of profitability: cost of operat ing a specific infrastructure (e.g. 
power transmission line, pipeline) or producing a specif ic product plus a profit margin set by the AMD.  
The following natural monopolies were subj ect to price and/or profit controls: 
- Kyrgyz Energy Holding production, transmission , and distribution of electricity and thermal 
power); 
- Kyrgyzgasmunaizat (natural gas); 
- Kyrgyztelecom (communication services); - Kyrgyzalco (alcohol and alcoholic products  - subject only to profit controls); 
- Kyrgyztamekesi (tobacco and tobacco produc ts - subject only to profit controls); 
- Kyrgyz Aba Joldoru (air trans port of passengers and cargo); and  
- Kyrgyzrailroad (rail transport of passengers and cargo).   
In addition, the prices of services  provided by Kyrgyztelecom (e.g. co st for installing a phone, rate of 
long distance calls/per minute) were set by the AMD.  The pr ices of services provided by 
Kyrgyzgasmunaizat (only gas for population) a nd Kyrgyz Energy Holding (e.g. electricity 
HS 2716 rate/kwh) were established by the State Agen cy on Energy.  Prices for using sewage systems, 
water, and city public transport are set by city or oblast administrations.   All fees for services provided 
by the state were subject to control (e.g. fee fo r driver’s license, fee for obtaining phytosanitary 
certificate, fee for obtaining vete rinary certificate).   Permitted monopol ies (eight companies) and 
temporary monopolies (34 companies)  - these are companies which have dominant position in the 
market (more than 35 per cent market share) - are not subject to price or profitability control.  Permitted 
monopolies were required to notify their prices to the Anti-Monopoly Department at the Ministry of 
Finance.  All other natural monopolies were perm itted to set their prices freely.    
17. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic's regime for price 
and profit control for natural m onopolies would be operate d in conformity with the requirements of 
Articles II and III of the GATT 1994 and Article VIII  of the GATS. WT/ACC/SPEC/KGZ/13/Rev.1 
Page 16  18. Some members of the Working Party noted that two of the covered entities dealt with the 
production and sale of alcohol a nd tobacco: Kyrgyzalco and Kyrg yztamekesi.  They requested 
additional information on the profit controls appl ied.   In response, the representative of the 
Kyrgyz Republic stated that Kyrgyzalco was a St ate Joint Stock Company within which there were 
currently 14 joint stock companies.  The domestic market share of companies under the structure of 
Kyrgyzalco in the sale of alcoholic products was approximately 60 per cent.  Wholesale prices of 
alcoholic products were established separately by each of the enterprises under Kyrgyzalco.  Enterprises under Kyrgyzalco were required to  declare their prices  to the Anti-Monopoly Department under the 
Ministry of Finance and were subject only to pr ofit control by the Anti-Monopoly Department. Profit 
could not exceed 20 per cent on products covered by HS code 2204, 2205, 2206, 2207 and 2208.  There 
were no plans to eliminate Kyrgyzalco and take away its authority to license the trade and production of 
alcohol and alcoholic products.   
19. In relation to Kyrgyztamekesi, the representa tive of the Kyrgyz Republic added that it was a 
State Joint Stock Company with seven companies under its structure (six were joint stock companies 
and one was a State enterprise).  The domestic market share of Kyrgyztamekesi was approximately 
16 per cent for tobacco products.  Kyrgyztamekesi was required to declare its prices to the 
Anti-Monopoly Department under the Ministry of Financ e and was subject only to profit control by the 
Anti-Monopoly Department.  Its profit was not permit ted to exceed 20 per cent on products covered by 
HS code 2401, 2402 and 2403. 
20. In response to requests from some members of the Working Party, the representative of the 
Kyrgyz Republic explained that the controls ment ioned above were authorized by the Law of the 
Kyrgyz Republic on Limitation of Monopolistic Activities and the Development and Protection of 
Competition of 15 April 1994 and sub- central authorities applied such c ontrols in accordance with the 
same law.  The purpose of price and profits cont rol was to regulate natura l monopolies and fees for 
services charged by State bodies.  In general, the Government of the Kyrgyz Republic wished to avoid 
application of such meas ures, and intended to do so in the future in accordance with the law. 
21. The representative of the Kyrgyz  Republic stated that all pric e and profit controls on products 
and services still in effect, at th e central and sub-central level were listed in paragraph 15, 17 and 18 
above by HS code where applicable. All other pr ices for goods and services in the Kyrgyz Republic 
were determined by market forces.  Any changes in  price controls or additi onal controls would be 
published in official publications.  All price controls  would be applied in a WTO-consistent fashion, 
taking into account the interests of exporting WTO Members as provided for in  Article III:9 of the 
GATT 1994.  The Working Party took note of these commitments.   WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 17 
 
IV. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of executive, legislative and judiciar y, administration of policies on WTO-related 
issues  
22. The representative of the Kyrgyz Republic stated that under the Constitution of the 
Kyrgyz Republic, governmental power was divided among the executive, legislative and judicial 
branches, with the President being afforded the most significant power.   The President was the Head of 
State and the highest government official.  The ex ecutive powers were exercised by the Government 
(principally, the Cabinet of Ministers) formed by the President.  The head of the Government was the Prime Minister.  The President was elected to a 5-year  term of office on the ba sis of universal (persons 
18 years of age and older), equal and direct suffra ge by secret ballot.  The Constitution gave the 
President wide-ranging powers:  he was the highest representative of the Kyr gyz Republic both within 
the country and in international re lations; he determined the basic di rection of domestic and foreign 
policy and had the right to propose and veto legisla tion;  his assent was required for any bill passed by 
the Parliament to become law (unless the Parliament was exercising a presidential veto).  He had the 
power to issue decrees and to suspend or invalidate acts of the Cabinet of Ministers and other executive 
bodies.  The President was responsible for appointi ng members of the Cabinet of Ministers.    
23. The representative of the Kyrgyz Republic furt her added that the Cabinet of Ministers was the 
principal institution of Government.  Executive power  was exercised by the Ca binet of Ministers, as 
well as the individual ministries, State committees, administrative depa rtments, other central executive 
bodies and local State administrations  under the control of the Cabinet of  Ministers.  The Cabinet of 
Ministers consisted of the Prime Minister, all Vice-Prime Ministers, all Ministers and Heads of State Committees.  The Government was the highest body within the executiv e power system of the Kyrgyz 
Republic, (except the President) and as such directly  controls activities of local state administrations on 
a range of issues, including those involving external  trade matters and implem entation of provisions of 
international treaties to which the Ky rgyz Republic is a party.  Article 6 of the Civil Code provided that 
international agreements ratified by the Kyrgyz Re public were to take precedence over conflicting 
provisions in civil legislation.  The Kyrgyz Re public Law "On Government" of 25 March 1997 No. 17 
set out the functions and authority of the central government and provides in Article 20 and 21 that the 
Government shall direct the implementation of a ll laws and decrees of the Kyrgyz Republic.  The 
Kyrgyz Republic Law "On local self-government and local state administrations in the Kyrgyz 
Republic" of 19 April 1991 N-437-XII set out the powe rs of the local governments.  These powers were 
subordinate to those of the national government an d did not entail authority concerning trade policy, 
which is the sole purview of the central authorities.   WT/ACC/SPEC/KGZ/13/Rev.1 
Page 18  24. The representative of the Kyrgyz Republic stated  that the Parliament exercised legislative power 
was implemented by the Parliament  which consisted of two chambers :  the Legislative Assembly and 
the Assembly of People’s Representatives.  Judicial authority was exclusively ex ercised by the Courts.  
The Court system consisted of a commercial divi sion and an ordinary division.  Generally, the 
commercial division dealt with business and commerc ial disputes between legal entities, whereas the 
ordinary division had exclusive jurisdiction over all othe r types of disputes, including civil, criminal and 
administrative law matters, as well as commercial di sputes where at least one of the litigants was an 
individual or a collective farm.  Both Court systems we re divided into tiers.  The commercial division 
had two tiers.  Seven regional comm ercial Courts of gene ral primary jurisdiction (one for the city of 
Bishkek and one for each of the six oblasts) constitu ted the lower tier.  The Supreme Commercial Court 
constituted the upper tier.  It had ap pellate jurisdiction over the decisi ons of  the regional commercial 
Courts, and primary jurisdiction ov er disputes involving any "non-norma tive" aspect of an act of any 
governmental body, institution or offici al.  The ordinary Court system was divided into three tiers.  The 
lower tier was composed of district Courts.  The mi ddle tier was composed of  seven regional Courts 
(one for the city of Bishkek and one for each of th e six oblasts), which had initial appellate jurisdiction 
over the decisions of the district Courts.  The Supr eme Court alone had final appellate jurisdiction over 
the decisions of the regional Courts.    By virtue  of the Constitution judges had immunity when acting in 
their official capacity.  Any member of the three hi gh Courts (the Constitutional Court, the Supreme 
Court and the Supreme Commercial Court) coul d be removed from his/her post upon a formal 
presentation to the Parliament by the President.  Lowe r Court judges could be removed if they failed  a 
qualification test.    
25. The representative of the Kyrgyz Republic said that agency actions affe cting trade were subject 
to administrative and appellate review.  Article 2(3) of the Civil Code provided for the right to appeal an 
administrative decision in court.  Specifically, Articles 417 to 428 of  the Customs Code of 1 October 
1997 provided for the right to appeal decisions of the customs bodies.  Article 57 of the Tax Code 
provided for administrative appeals of decisions of an  official of the Tax Service.   Article 58 provided 
for appellate review of any final decision of the Tax Service.  Ar ticle 18 of the Law on Licensing 
provided for the right to appeal to the Commercial C ourt for issues relating to the refusal to  issue a 
license. 
26. The representative of the Kyrgyz Republic st ated that the Kyrgyz Republic would provide a 
right of appeal to an independent body for foreign and domestic importers an d exporters of official 
measures affecting trade.  The Worki ng Party took note of this commitment.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 19 
 
- Authority of sub-central governments  
27. The representative of the Kyrgyz Republic stat ed that the Kyrgyz Republic was divided into  
seven regional executive administ rations, under the direct supervisi on and control of the Cabinet of 
Ministers.  Within each  regional executive ad ministration were a number  of departments having 
regional competence over certain specified matters, e.g., a Department of Agri culture, a Department of 
Economy, which reported both to the regional execu tive administration and to its corresponding national 
Ministry.  Because the regional exec utive administrations were under th e control and supervision of the 
Cabinet of Ministers and each national Ministry, lo cal governmental policy affecting trade in goods and 
services was  exclusively determined by the centra l Government.  Governors he aded the oblast regional 
executive administrations, and were appointed by the President with the consent of the corresponding 
kenesh.  At the lowest level of government were th e rayon (district) executive administrations.  The 
President, with the consent of the kenesh of the ra yon, appointed the head of  each rayon administration 
after considering the recommendation of the concerne d governor or mayor.  The President could also 
remove the head of the local rayon administration after taking into account the recommendation of the 
concerned governor or mayor.  In addition to th e regional executive administrations, Bishkek and the 
oblasts each had a locally elected unicameral legisl ature called a kenesh.  Each regional kenesh was 
responsible for legislation dealing w ith regional social and economic ma tters.  Each ke nesh must also 
approve the budget prepared by its corresponding regi onal executive administrati on.  If a kenesh passed 
a piece of legislation on a matter within its competence, it automatically became law.  Each rayon had a 
local kenesh composed of 15-25 elected representati ves, the primary responsibility of which was to 
adopt legislation dealing with a small range of local matters. 
28. The representative of the Kyrgyz Republic conf irmed that central authorities would be solely 
responsible for establishing forei gn trade policy and that the centra l Government would implement the 
provision of the WTO relevant to sub-central g overnments, including Article XXIV:12 of the 
GATT 1994, the corresponding WTO U nderstanding and Article I:3(a) of the GATS.  He further 
confirmed that, from the date of accession, the cent ral government would elimin ate or nullify measures 
taken by sub-central authorities in the Kyrgyz Republic  that were in conflict  with the WTO Agreement 
when those measures were brought to its attention.  The Working Party took note of these commitments.  
V. POLICIES AFFECTING TRADE IN GOODS 
- Registration and right to trade  
29. The representative of the Kyrgyz Republic stat ed that, pursuant to the Law on State Registration 
of Legal Entities dated 12 July 1996,  all natural a nd legal persons engaging in  any type of economic 
activity in the Kyrgyz Republic were required to be registered.  He noted that  the Kyrgyz Republic had WT/ACC/SPEC/KGZ/13/Rev.1 
Page 20  no special registration requirements for persons engaging in importing or  exporting nor were individuals 
or firms restricted in their ability to import or export  based on the scope of business of their registration.  
There were no restrictions, such as capital or nationa lity requirements, on persons wishing to engage in 
foreign trade.  The representative of the Kyrgyz Re public also confirmed that  the former State monopoly 
in foreign trade had been abolished. 
30. The representative of the Kyrgyz Republic confirmed that from the date of accession, the 
Kyrgyz Republic would ensure that all of its laws and regulations relating to the right to trade in goods, 
and all fees, charges or taxes levied on such ri ghts would be in full conformity with its WTO 
obligations, including Ar ticles VIII:1(a),  XI:1 and III:2 and 4 of the GATT 1994 and that it would also 
implement such laws and regulations in full conformi ty with these obligations.  The Working Party took 
note of these commitments. 
- Customs tariff 
-  Ordinary customs duties  
31. The Kyrgyz Republic engaged in market acces s negotiations on goods.  The tariff concessions 
resulting from these negotiations are reproduced in the Schedule annexed to the draft Protocol of 
Accession of the Kyrgyz Republic which is re produced in the Appendix to this Report. 
32. In response to reques ts for information, the representative of the Kyrgyz Republic stated that the 
Customs Tariff of the Kyrgyz Republ ic was contained in the Cabinet of Ministers Resolution No. 358 of 
28 May 1994 issued pursuant to the Customs Tariff  Law of 15 December 1992.  The temporary tariff 
was a flat 10 per cent tariff on all imported goods,  except those for which an explicit exemption had 
been created by the Customs Tariff Law .  Under the temporary flat 10 per cent regime, the average 
trade-weighted level of import dutie s (after adjusting for exempted items and items qualifying for the 
Kyrgyz Republic’s prefer ence scheme) was 8.4 per cent in 1995.  In 1997, by Government Decision, the 
Kyrgyz Republic had converted the tariff nomenclature to  HS 96 wh ich had not altered the tariff rates 
set in   1992.  Tariff descriptions were coded at the 6 and 9-digit levels.  In res ponse to further questions, 
he noted that the Kyrgyz Republic was engaged in nego tiations to join the World Customs Organization.   
33. He further added that under the Kyrgyz Republi c’s System of Preference s, goods originating in 
developing countries were subject to a duty rate wh ich was 50 per cent of the tariff rate while goods 
produced in and imported from  least developed c ountries were free of duty.  The system of preferences 
may be modified from time to time, in accordance with the provisions of the Customs Code of 30 July 1997.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 21 
 34. In response to questions concerning th e seasonal duties, the representative of the 
Kyrgyz Republic stated that according to the Custom s Code of 30 July 1997, the Cabinet of Ministers of 
the Kyrgyz Republic may establish seasonal duties.  The representative of the Kyrgyz Republic stated 
that if imposed, seasonal duties would not exceed th e bound level of tariffs and would be applied in a 
manner consistent with the requirements of the WTO Agreement.  Also, ad equate notice would be 
provided before imposing seasonal duties.  Th e Working Party took note of these commitments. 
- Tariff quotas, tariff exemptions  
35. In response to questions fr om some members of the Working Party, the representative of the 
Kyrgyz Republic stated that an y business enterprise operating in  the Kyrgyz Republic, (including 
wholly or partially foreign owned en terprises) could apply to the Mini stry of Industry and Foreign Trade 
to receive tariff exemptions for imports of cert ain items used in the production of final products, 
pursuant to Government Resolution No. 358 of 28 May 1994.  Applications for tariff exemptions were 
not automatically approved by the Ministry of Indu stry and Foreign Trade.  The criterion applied in 
consideration of an application wa s whether the items will be used in  the production of final products. 
Import substitution or export pe rformance were not factors in cons ideration of the requests.  The 
exemptions were granted to the requesting enterp rise alone.  Since 30 Marc h 1994, 436 businesses had 
enjoyed the benefits of the duty exemptions.   
36. Some members of the Working Party noted th at exemptions were granted to some products 
originating in CIS countries.   They asked if the Kyrgyz Republic was prepared  to enter a commitment 
that tariff exemptions would only be given to thir d countries in the context of a WTO compatible Free 
Trade Agreement or Customs Union Agreement. 
37. The representative of the Kyrgyz Republic st ated that upon accession to the WTO, any tariff 
exemptions would only be implemented in conform ity with the relevant WTO provisions including 
Articles I and XXIV of the GATT 1994.  The Working Party took note of this commitment. 
- Other duties and charges  
38. The representative of the Kyrgyz Republic conf irmed that the Kyrgyz Republic levied no duties 
and charges on imports other than ordinary customs duties.  He further confirmed that the Kyrgyz 
Republic had bound other duties and charges within the meaning of Article II:1(b)of the GATT 1994  at 
zero in its Schedule of Concessions on Goods which is  reproduced in Part I of the Annex to the Protocol 
of Accession.  WT/ACC/SPEC/KGZ/13/Rev.1 
Page 22  
- Fees for services rendered  
39. Some members of the Working Party requested information on any fees applied to imported and 
exported products.  In response,  the representative of the Kyrg yz Republic stated that an ad valorem  
customs processing fee was levied on imported and e xported goods.  In response, some members of the 
Working Party stated that the fee di d not appear to be consistent wi th Article VIII of GATT 1994, which 
required that fees and charges rela ted to importation and e xportation be limited to the cost of services 
rendered.  The representative of the Kyrgyz Republic stat ed that the government was considering how to 
alter the current customs clearance fee from an ad valorem  fee into a fee that recovered the actual cost of 
the service provided.  The Kyrgyz Republic was attempting to calculate the actual cost of the services rendered in connection with impo rtation and exportation.  The repr esentative of the Kyrgyz Republic 
added that the Kyrgyz Republic would ensure that  all fees and charges re lated to importation and 
exportation reflected the cost of services rendered.    
40. Following further requests for information, the representative of the Kyrgyz Republic noted that 
the Kyrgyz Republic  used an  ad valorem  rate of 0.15 per cent with minimum and maximum limits.  
The limits would be determined  on an annual basis to account for inflation. The minimum and 
maximum fees were determined using a methodology th at was based on internati onally recognized cost 
accounting principles and practices.  The minimum fee consisted of two components: direct costs and 
indirect costs.  Direct costs were those that were exclusively incurred to process  a declaration, and consisted of employee costs to pro cess a declaration.  The time spent by an employee to process various 
categories of  goods was analyzed and the aver age employee cost to pr ocess a declaration was 
computed.  Indirect costs were those that were in curred for various customs activities including import 
and export processing.  These costs,  also called overhead  costs, were allocate d based on approximate 
total time spent by customs employees.  On av erage, Kyrgyz Customs employees spent about 
50 per cent of their time processing import declarations.  As a result,  50 per cent of the total overhead 
costs were allocated to import processing.  The maximum fee was based on th e total costs of Kyrgyz 
Customs. It was estimated that approximately 50 per cent of Cust oms resources were consumed to 
process import declarations. As a result, about 50 per cent of total costs were allocated to import 
processing.  The Kyrgyz Republic would create a re volving fund to finance impo rt processing activities. 
All revenues collected from  import and export processing fees w ould be credited to this fund. The 
proceeds from the fund would be used only to meet the costs of import and export processing of the 
imports and exports subject to the fee. 
41. Following further requests for information on th e customs processing fee, the representative of 
the Kyrgyz Republic stated that in pursuance of Article VIII of th e GATT 1994, the new Customs Code  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 23 
 of the Kyrgyz Republic put into effect on 1 October 1997, provided that customs fees  collected for 
customs clearance must not exceed the approximate cost of the services provided.   
42. The representative of the Kyrgyz Republic al so noted that an import/export License Fee was 
also charged.  The curr ent fee was som 1,000 (US$56).  Analysis had revealed that the current fee 
reflected the cost of services rendered.  In respon se to questions he provided the following table listing 
all customs fees applied to all imports and exports.  The followi ng fees imposed by Government 
Resolution No. 368 of 19 June 1998 On Establishing th e Fees for Customs Processing and Issuance of 
Certificates of Origin were  charged by the Dire ctorate on the Technical Development of the Customs 
Infrastructure under the State Custom s Committee for customs storage: 
No. Name 
 Units  Price including 
VAT 
(in Som) 
1 Storage of trucks containing goods (fee charged per 100 kg of 
goods: units not divisible (i.e.  120 kg = fee charged for 200 kg): 
up to 24 hours 
each additional day  
 
 
100 kg 100 kg  
 
 
7 10 
2 Storage of oil products and other goods at rail yard: 
per day  0.1% of the value 
of goods 
3 Storage of goods delivered by air transport over the CIS from the 
moment of notification: first 5 days  
from 5 days up to 10 days 
over 10 days  
 1 kg of goods 
1 kg of goods 
1 kg of goods  
 0.20/day 
0.40/day 
0.60/day 
4 Parking within the customs control zone: 
first hour for each additional hour and for each further day  
1 place 1 place  
3 5 
43. The representative of the Kyrgyz  Republic stated that prior to th e date of accession to the WTO, 
the Government of the Kyrgyz Republic w ould adopt, through implementing Regulations, the 
provisions and methodology for the application of the customs processing fees as described in 
paragraphs 40, 41 and 42 above. Those Regulations  had entered into force on 19 June 1998.  He 
confirmed that all fees and charges for services related to  importation or  exportation  wo uld be operated 
in conformity with the provisions of Article VI II of the GATT 1994 from th e date of accession. The 
Working Party took note of these commitments. 
- Tariff rate quotas  
44. In response to questions fr om some members of the Working Party, the representative of the 
Kyrgyz Republic stated that th e Kyrgyz Republic maintained no ta riff quotas, and did not intend to 
introduce tariff rate quotas in the future.  Any tariff rate quotas introduced in the future would be 
operated in conformity with the relevant WTO provisions, including Article XIII:5 of the GATT 1994. WT/ACC/SPEC/KGZ/13/Rev.1 
Page 24  
 Application of internal taxes on imports 
 - Value Added Tax  
45. In response to requests for information, the representative of the Kyrgyz Republic stated that a 
20 per cent VAT was imposed on al l sales of goods within the Kyrg yz Republic, as well as on goods 
imported from non-CIS countri es. The VAT was imposed on non- CIS imports at the time of 
importation, and was collected by the customs authorities. The base for assessment of the VAT was the 
sum of (i) the customs value of the goods plus (ii) tr ansportation, insurance and other costs related to the 
importation of goods where applicable.  With re spect to goods imported from CIS countries, no VAT 
was collected until the good was sold within the Kyrgyz  Republic;  and the seller  was permitted to claim 
a VAT credit for the amount of VAT paid in the exporting CIS country.  This VAT-credit mechanism 
for imports from CIS countries was in effect in all CIS countries.  In addition,  VAT exemptions were 
granted for (i) goods imported to render assistance in connection with natural disa sters, armed conflicts, 
or accidents;  (ii) goods imported as  humanitarian assistance  as specified under an order of the Cabinet 
of Ministers;  (iii) im ported goods which the importer had previous ly exported;  (iv) goods temporarily 
imported under bond, provided such goods were e xported in an unaltered condition within twelve 
months;  (v) goods mistakenly imported into the Ky rgyz Republic and being returned to the original 
exporter;  (vi) goods in transit through the Kyrgyz Republic;  (vii) imported goods intended for official 
use by foreign embassies or simi lar representative offices of fo reign governments and imported goods 
intended for the personal use of the diplomatic, ad ministrative or technical pe rsonnel of such embassies 
or representative offices or the family members of such personnel; (viii) pharmaceutical s and medicinal 
supplies specified by Cabinet of Ministers;  (ix) educational supplies and sc hool equipment;  (x) baby 
food;  (xi) capital goods imported by a legal entity or  entrepreneur for use in its/his productive economic 
activity;  and (xii) other imported goods specified as  VAT-exempt pursuant to the customs legislation 
of the Kyrgyz Republic.  
46. Some members of the Working Party stated that Article XXIV of the GATT 1994 does not 
exempt regional integration agreements from applica tion of the MFN principle with regard to internal 
taxation.  They requested an indication when th e Kyrgyz Republic would bring its system of VAT 
application into line with Article I of the GA TT 1994.  In response the representative of the 
Kyrgyz Republic stated that the Kyrgyz Republic understood the need to bring its VAT system into 
conformity with accepted world pr actice, i.e. applying the VAT to all goods sold or imported into the 
Kyrgyz Republic regardless of their country of or igin, and exempting exported goods regardless of their 
country of destination.  However, he noted that because it was necessary to obtain the agreement of 
other CIS countries to do so it was not possible to give  a date for elimination of the practice.  A bilateral 
agreement had been reached with Kazakstan (entry into force 21 July 1997), with the result that  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 25 
 Kazakstan was trea ted as a "non-CIS" country with respect to the application of VAT.  Moreover, 
analogous agreements had been negotia ted but not yet initialled with Ar menia, Azerbaijan and Belarus, 
initialled with Georgia, and concluded with Tadjik istan (entry into force 6 May 1998), Ukraine (entry 
into force 10 April 1998) and Uzbekist an (entry into force 22 April 1998).  A Protocol signed with the 
Russian Federation recently  would change this pr actice in their trade as of 1 January 1999.  
Amendments of the Tax Code provided for applicat ion of VAT to imports from CIS countries which 
applied the destination principle to their exports to the Kyrgyz Republic.  VAT would also not be 
applied to exports to CIS countries which applied the de stination principle with regard to their exports to 
the Kyrgyz Republic.  
47. The representative of the Kyrgyz Republic stated that the Law on Making Amendments and 
Supplements to the Tax Code of the Kyrgyz Republic  would be adopted and enter into force no later 
than 1 January 1999 and that as soon as possible from th e date of accession  but not later than 1 January 
1999, the Kyrgyz Republic would ensure that value a dded taxes would be applie d to imports in full 
conformity with WTO requirements, in particular, the most-favoured-nation requirements of Article I 
and the national treatment provisions  of Article III of the GATT 1994.  The Working Party took note of 
this commitment. 
 - Excise Taxes  
48. In response to requests for information on the ex cise taxes applied in the Kyrgyz Republic, the 
representative of the Kyrgyz Republ ic stated that excise taxes we re imposed on certain goods whether 
produced in or imported into the Kyrgyz Republic.  He further added that the new Tax Code specified 
that the following goods were subject to  excise taxes:  (i) alcoholic beve rages, drinks, spirits and liquors;  
(ii) items destined for wine produ ction;  (iii) tobacco and tobacco products;  (iv) gold, silver and 
platinum jewellery;  (v) processe d and non-processed fur hides (except for the hides of moles, rabbits, 
dogs, deer, or sheep);  (vi) clothing made of natural fur (except for apparel made of the hides of moles, 
rabbits, dogs, deer, or sheep);  (vii) coats, short coat s, jackets and cloaks trimmed with fur (except for 
the fur of moles, rabbits, dogs, deer or sheep);  (vi ii) clothes made from natural leather;  (ix) crystal 
items, including lighting appliances made of crystal;  and (x) fire arms, including gas weapons (other 
than those procured by State authorities).  The following import ed goods were exempted from excise 
tax:  (i) goods needed to operate or repair vehicl es being used for the international conveyance of 
passengers, baggage or cargo;  (ii)  goods which were damaged and ther eby made useless prior to their 
entry into the Kyrgyz Republic;  (iii) goods imported  as humanitarian aid;  (iv) goods imported for 
charitable or aid purposes, includi ng technical assistance supplied by foreign States and international 
organizations;  (v) goods confiscated by or escheated to the State;  (vi) goods in transit through the 
Kyrgyz Republic; and (vii) goods inte nded for official use by foreign embassies or similar representative 
offices of foreign governments a nd imported goods intended for the personal use of the diplomatic, WT/ACC/SPEC/KGZ/13/Rev.1 
Page 26  administrative or technical personnel  of such embassies or representa tive offices or the family members 
of such personnel. 
49. The representative of the Kyrgyz Republic added that some excise taxes were assessed on an 
ad valorem  basis, while others were assessed on a quantity  basis.  Domestic and imported goods were 
subject to differing excise tax rates.  Imported good s subject to excise tax were exempted from customs 
duties.  Some members also requested information on the methodology used to ca lculate excise rates for 
domestic,  CIS and other imported pr oducts.  In response, the representative of the Kyrgyz Republic 
stated that the Cabinet of Mini sters Resolution No. 557 of 26 Sept ember 1997, and Resolution No. 702 
of 4 December 1997 establis hed the methodology to be used for calculating excise  taxes.  This 
methodology was the same for goods produced in the Kyrgyz Republic and imported from other 
countries including CIS countries. 
 In cases where the excise tax rate was established in proportion of the w holesale price of goods: 
 H= C x A:100% 
 where 
 H =  the amount of excise tax 
 C =  the wholesale price of goods (or thei r customs value at the point of import) 
 A =  the rate of excise tax in per cent. 
 In cases where the excise ta x rate was establishe d in US$ to the physical volume of goods: 
 H =  O x T x K 
 where 
 H =  the amount of excise tax  O =  the physical volume of  manufactured or imported good s (kilogram, litre, units, tons) 
 T =  the rate of excise tax in US$ per unit 
 K =  the US$ exchange rate to the Kyrgyz Som. 
The Som was the only currency that could be used for payment of excise taxes for both imports and 
domestic products.  Conversion into  Soms was based on the official ex change rate of the National Bank 
of the Kyrgyz Republic. 
50. The representative of the Kyrgyz Republic fu rther added that the new Tax Code, which came 
into effect on 1 July 1996, substantially changed the list of goods subject to excise tax.  However, no 
rates had been set for the items newly subject to excise tax.  In the interim, customs duties applicable to such items had temporarily been increased.  He stated  that the current system of excise taxation treated 
imported and domestic products differently.  In re sponse, some members of the Working Party stated 
that although they welcomed the Kyrgyz Republic's  recognition that the current excise tax system  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 27 
 treated domestic and imported products differently, which was inconsistent with Article III of the 
GATT 1994, they asked that the system be brought into  conformity with that provision and requested a 
progress report on the reform of the system.   In response, the representative of the Kyrgyz Republic 
stated that following a review of  excise tax rates, th e Legislative Assembly  had in December 1996 
approved the following table of excise tax rates.   
Table 3:  Excise Tax Regime
 
Goods Domestic Rates Imported Rates HS Codes 
Ethyl alcohol and purified ethyl alcohol 
produced from raw materials (except those 
imported by special consumers within 
stipulated limits) US$1.4/litre US$1.4/litre 2207 
Vodka US$0.90/litre US$0.90/litre 220890110-220890390 
Liqueurs and vodka products US$0.90/litre $0.90/litre 220810, 
220830, 
220890510-220890790, 
220890910, 220890990 
Alcoholized beverages, juice and balsam* US$0.90/litre US$0.90/litre 220840, 
220850 
Grape wine 
other wines US$0.35/litre 
US$0.29/litre   
Wine  US$0.35/litre 220421-220429, 
2205,  
2206 
Cognac US$0.60/litre US$0.80/litre 220820100 
Sparkling wines US$0.40/litre US$0.45/litre 220410 
Beer: - packaged - unpackaged  
US$0.80/litre US$0.05/litre US$0.25/litre 2203 
Raw materials for wine production US$0.15/litre US$0.20/litre 220430 
Tobacco products** 
- filter cigarettes 
- unfiltered cigarettes  
US$1.5/1000 each 
US$0.75/1000 each 
US$5/1000 each 
US$2/1000 each  
2402 
2402 
Other tobacco-containi ng items, including 
fermented tobacco  12% 240110, 
240120, 2403 
Gold, platinum or silver jewellery 20% 30% 7113-7118 
Processed and raw fur hides (other than mole, rabbit, deer, dog and sheep skin) 0% 10% 4110, 
4103-4104, 4106-4109 
Wearing apparel made of natural fur, 
including coats, short-coats, jackets, capes, 
stoles, scarves, headgear, collars, fur coats and fur pieces (other than apparel made of 
hides of mode, rabbit, dog, deer or sheep 
skin) 0% 10% 4303 
Coats, short-coats, jackets and capes 
trimmed with fur (other than mole, rabbit, 
dog, deer or sheep skin) 0% 10% 4303 
Clothing made of natural leather 0% 10% 4203 
Crystalware 0% 30% 701321, 
701331, 
701391 WT/ACC/SPEC/KGZ/13/Rev.1 
Page 28  
Goods Domestic Rates Imported Rates HS Codes 
Firearms and gas weapons (other than 
those acquired for the needs of State 
agencies) 10% 20% 9301-9393, 
9305-9306 
Oil products: 
- gasoline, soft and medium distillates US$45/ton $45/ton 2707, 
271000330, 
271000350, 
271000390, 271000110, 
271000150, 
271000210, 271000250, 
271000410, 
271000450 
Aircraft fuel  US$45/ton 271000510-271000590 
Diesel fuel US$0/ton US$45/ton 271000610, 
271000650, 271000690 
Black oil US$0/ton US$0/ton 271000710, 
271000750, 
27100790 
Other US$0/ton US$0/ton 271000550, 
271000910, 
271000930, 
271000990 
Coffee and cocoa products  10% 0901, 1801, 1803-1805 
Carpets and rugs (except floor coverings) 0% 35% 57 
 * Excise tax rates were calculated based on the conten t of ethyl alcohol in such items, the base being a 
beverage containing 45 per cent alcohol. 
** Pursuant to Resolution No. 430 of 23 July 1997 of  the Kyrgyz Republic for imported tobacco products 
(topped cigarettes and without tops) with excise stamps, the rate of excise tax is U$1.5 per 1000 
cigarettes, pursuant to Resolution No. 430 of 23 July 1997 of the Kyrgyz Republic. 
51. Some members of the Working Party stated th at the proposed new rates of excise taxation did 
not appear to resolve the problems of inconsistent rate s of taxation, in particular higher rates of taxation 
for certain imported products.  Th ey requested that the system be brought into conformity with 
Article III of the GATT 1994, and that imported produc ts not be subject to tax rates in excess of those 
applied to domestic products.  In response, the re presentative of the Kyrgyz Republic stated that the 
excise tax system prevailing in the Kyrgyz Repu blic was already in full conformity with WTO 
most-favoured-nation requir ements.  He noted that no imported goods to the Kyrgyz Republic were 
subject to both excise taxes and import duties at  the same time, although it  was not contrary to 
international practices or WTO rules to have appl y both excise taxes and im port duties to an imported 
good.  In response to further statem ents by members of the Working Pa rty that the rates of excise tax 
listed in Table 3 discrimina ted against imported products, the representative of the Kyrgyz Republic said 
that Government Resolution No. 348 of 13 June 1998 On Rates of Excise Taxes (which needs to be 
approved by Parliament) established the following ra tes of excise taxes:  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 29 
 
Table 4 - Harmonized rates of Excise tax  
Goods Domestic Rates Imported Rates HS Codes 
Ethyl alcohol and purified ethyl alcohol 
produced from raw materials (except those imported by special consumers within stipulated 
limits) US$1.4/litre US$1.4/litre 2207 
Vodka US$0.90/litre US$0.90/litre 220890110-
220890390 
Liqueurs and vodka products US$0.90/litre US$0.90/litre 220810, 
220830, 220890510-
220890790, 
220890910, 220890990 
Alcoholized beverages, juice and bals am* US$0.90/litre US$0.90/litre 220840, 
220850 
Wines US$0.35/litre US$0.35/litre  
Cognac US$0.60/litre US$0.60/litre 220820100 
Sparkling wines US$0.40/litre US$0.40/litre 220410 
Beer: 
- packaged 
- unpackaged  
US$0.11/litre 
US$0.08/litre US$0.11/litre 2203 
Raw materials for wine production  US$0.15/litre US$0.15/litre 220430 
Tobacco products 
- filter cigarettes 
- unfiltered cigarettes  
US$1.6/1000 each 
US$0.75/1000 each  
US$1.6/1000 
each US$0.75/1000 
each  
2402 
2402 
Other tobacco-containing items, including fermented tobacco US$0.10/1 kg US$0.10/1 kg 240110, 
240120, 2403 
Gold, platinum or silver jewellery 10% 10% 7113-7118 
Processed and raw fur hides (other than mole, rabbit, deer, dog and sheep skin) 5% 5% 4110, 
4103-4104, 4106-4109 
Wearing apparel made of natural fur, including 
coats, short-coats, jackets, capes, stoles, 
scarves, headgear, collars, fur coats and fur pieces (other than apparel made of hides of 
mode, rabbit, dog, deer or sheep skin) 5% 5% 4303 
Coats, short-coats, jackets and capes trimmed 
with fur (other than mole, rabbit, dog, deer or sheep skin) 5% 5% 4303 
Clothing made of natural leather 5% 5% 4203 
Crystalware, lighting appliances  of crystal 20% 20% 701321, 
701331, 
701391 
Firearms and gas weapons (other than those acquired for the needs of State agencies) 20% 20% 9301-9393, 
9305-9306 WT/ACC/SPEC/KGZ/13/Rev.1 
Page 30  
Goods Domestic Rates Imported Rates HS Codes 
Oil products: 
- gasoline, soft and medium distillates and other 
gasoline  
US$50/ton  
US$50/ton 2707, 
271000330, 
271000350, 271000390, 
271000110, 
271000150, 
271000210, 
271000250, 271000410, 
271000450 
-  jet fuel (except needs of the «Kyrgyzstan Aba Joldoru» air company)*  US$50/ton  
-  diesel fuel US$25/ton US$25/ton 271000610, 
271000650, 271000690 
-  black oil US$25/ton US$25/ton 271000710, 
271000750, 
27100790 
-  other US$35/ton US$35/ton 271000550, 
271000910, 271000930, 
271000990 
-  raw oil and raw oil products got from 
bituminous materials US$10/ton US$10/ton  
Coffee and cocoa*   10% 0901, 1801, 
1803-1805 
Carpets and rugs (except floor coverings) 10% 10% 57 
*There are no domestic production of such goods. 
52. The representative of the Kyrgyz Republic stat ed that the Regulations on the Harmonization of 
Excise Tax Rates would be adopted by  Parliament by 1 July 1998, and that from the date of accession to 
the WTO, the Kyrgyz Republic would ensure that excise taxes were applied to imports in full 
conformity with WTO require ments, in particular the most favoured  nation requirements of Article I and 
the national treatment provisions of  Article III of the GATT 1994. The Working Party took note of these 
commitments. 
- Quantitative import restrictions  
53. In response to questions, the representati ve of the Kyrgyz Republic stated that the 
Kyrgyz Republic maintained  few quantitative import restrictions and it did not plan to introduce import  
restrictions except in those circumstances permitted by the WTO Agreements. The Kyrgyz Republic did 
not foresee balance of payment problems in the next 2 years provided that the current economic 
situation continued to evolve favourably.  Curren tly, the only import restrictions applied in the 
Kyrgyz Republic applied to military arms and goods;  explosives;  nuclear materials and technology for 
military use;  virulent poisons;  and narcot ics (including those used in pharmaceuticals) and 
psychotropic substances.  The system applied to goods originating in and coming from all countries, 
including other CIS countries.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 31 
 54. The representative of the Kyrgyz Republic stated that if the Kyrgyz Republic introduced import 
quotas as an emergency measure in the future they would be in conf ormity with Arti cle XIX of the 
GATT 1994 and the Agreement on Safeguards.  If impo rt quotas were introduced for balance of 
payments purposes they would be in conformity w ith Article XII a nd Article XVIII of the GATT 1994, 
the Understanding on the Application of Restricti ons for Balance-of-Payments Purposes and the WTO 
Agreement.   
- Import licensing procedures  
55. In response to reques ts for information, the representative of the Kyrgyz Republic stated that 
previously, import licences had been required for five  broad categories of good s.  A Draft Regulation 
finalised and submitted to the Work ing Party specified in greater deta il the goods subject to licensing, 
and broke down the covered goods into 19 sub-items.  The represen tative of the Kyrgyz Republic 
provided the Working Party, with the fo llowing table listing the covered goods: 
Table 5:  List of Specific Goods Imported under Licenses
 
contained in the Regulation on Import/Expor t Licensing (implemented 8 June 1998)  
No. Goods HS Code Rationale/Justification 
1. Ciphering devices (including 
ciphering equipment, spare 
parts for the  ciphering 
equipment, ciphering programs), normative and 
technical documents to the 
ciphering devices (including 
designing and exploiting) 8471 (ciphering equipment only), 
847330000 (for the ciphering 
equipment only), 854380900 
(ciphering equipment only), 854390900 (ciphering equipment 
only) To protect the Republic’s national 
security 
2. Arms and weapons, specific 
parts for their production, 
works and services in the area of military - technological 
cooperation by the list of the Ministry of 
Defense of the Kyrgyz Republic To protect the Republic’s national 
security 
3. Protection devices from the 
battle poisoning substances, parts and accessories thereof by the list of the Ministry of 
Defense of the Kyrgyz Republic  To protect the Republic’s national 
security 
4. Military uniform, clothing and 
attributes  by the list of the Ministry of 
Defense of the Kyrgyz Republic  To protect the Republic’s national 
security 
5. Normative and technical 
documents to the military 
products (construction and exploitation) by the list of the Ministry of 
Defense of the Kyrgyz Republic To protect the Republic’s national 
security 
6.  Gun powder and explosives, 
explosive devices and 
pyrotechnics 3601 (except for the hunting 
powder), 3602, 3603, 3604 To protect the Republic’s national 
security 
7. Nuclear materials, 
technologies, equipment and 
plants, special non - nuclear 
materials, sources for the radioactive radiation, including 
radioactive waste by the list approved by the 
President of the Kyrgyz Republic 
(Resolution No. 55, 2 June 1996,  
the Government of the Kyrgyz Republic) To maintain the Republic’s national 
security, as well as to adhere to 
international commitments related 
to non-
proliferation of mass 
destruction and production 
technologies thereof WT/ACC/SPEC/KGZ/13/Rev.1 
Page 32  
No. Goods HS Code Rationale/Justification 
8. Materials, equipment and 
technologies which are 
intended for peaceful purposes but can not be used while 
creating weapons for mass 
extermination In accordance with the list passed 
by the President of the Kyrgyz 
Republic (Resolution No. 55, 2 June 1996, the Government of 
the Kyrgyz Republic) To maintain the Republic’s national 
security, as well as to adhere to 
international commitments related to non-
proliferation of mass 
destruction and production 
technologies thereof - 
9. Certain types of raw materials, 
equipment, technologies and 
scientific information which 
can be applied while creating weapons and military 
techniques by the list approved by the 
President of the Kyrgyz Republic 
(Resolution  No. 55, 2 June 1996, 
the Government of the Kyrgyz Republic) To maintain the Republic’s national 
security, as well as to adhere to 
international commitments related 
to non-
proliferation of mass 
destruction and production 
technologies thereof 
10. Precious metals, alloys, goods 
made from them, metals plated  with precious metals and goods 
made from them; ores; 
concentrates; scrap and waste 2616 (ores and concentrates), 
2843 (metals, junctions, amalgams), 300640000 (from 
precious metals only), 
7106-7112, 711311000, 711319000, 711411000, 
711419000, 711510100, 
711590100, 711590900, 7118 (from precious metals only), 
8544 (only with conductors from 
precious metals), 960810300, 960839100   
To protect national treasures of artistic, historic or archaeological 
value;  to conserve exhaustible 
natural resources. 
11. Precious natural stones and 
goods from them, powder and 
recuperate  of precious natural stones, goods from them.  7101, 7102, 7103 (precious 
stones only), 7105 (from precious 
stones only), 7116 (from precious stones only).   
To protect national treasures of 
artistic, historic or archaeological value;  to conserve exhaustible 
natural resources. 
12. Narcotics and psychotropic 
drugs, virulent and stupefying concoctions by the list of the State 
Commission for Drug Control under the Government of the 
Kyrgyz Republic To protect the population’s life and 
welfare 
13. Virulent poisons by the list approved by the 
Government of the Kyrgyz 
Republic (Resolution of the Government of the Kyrgyz 
Republic of 6 February 1996, 
No.  55) To protect the population’s life and 
welfare, as well as flora and fauna 
in general 
14. Hazardous wastes by the list of the Basil 
Convention on the Control over 
Trans-border Transportation of 
hazardous cargo of 22 March  1989, approved by Resolution of 
the Parliament of the Kyrgyz 
Republic of 18 January 1996, No. 304-1) 
 To protect the population’s life and 
welfare, as well as flora and fauna 
in general 
15. Chemical means of protection 
of plants 3808 (preparations for the plant 
protection only) To protect the population’s life and 
welfare, as well as flora and fauna in general 
16 Pharmaceuticals by the list of the Ministry of 
Health of the Kyrgyz Republic  To protect the population’s life and 
health 
17. Service and civil guns by the list of the Ministry of 
Internal Affairs of the Kyrgyz 
Republic  To maintain public order  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 33 
 
No. Goods HS Code Rationale/Justification 
18. Tobacco by the list of 
"Kyrgyztamekisi"2401, 2402, 
2403 To protect the heal th and life of the 
population 
19. Spirits and alcoholic products by the list of the State Joint Stock 
Company "Kyrgyzalco"2204,  
2205, 2206, 2207, 2208, , 
220840, 220850, 220860, 220870, 220890 To maintain public order and 
protect the health and life of the 
population 
The import licensing system was required to pr otect public health and sa fety, the environment, 
consumer welfare and national security.  The licen sing procedure was not intended to restrict the 
quantity or value of imported goods.   Imports subject to licensing am ounted to about 2 per cent of the 
value of the Kyrgyz Republic’s total imports.  Goods subject to import licensing were designated by the 
Cabinet of Ministers upon recommendation by intere sted ministries and government bodies and were 
not subject to administ rative discretion.  
56. The representative of the Kyrgyz Republic furthe r added that to obtain a licence for import (and 
also for the export) of alcohol and alcoholic produ cts (except beer, for whic h there were no import or 
export licensing requiremen ts) and tobacco products, an importer was required to submit an application 
for a license and the following document s:  (i) import or export contract;  (ii) copy of the purchase-sale 
contract if the applicant does not own the goods;  (iii)  copy of the certif icate of registration;  
(iv) certificate of compliance;  (v) certificate of origin;  (vi) conclusion of expert-organization;  
(vii) copy of tax-payer registrati on card.  There were no quotas conn ected with the import and export of 
alcohol, alcoholic or tobacco produ cts.  A licence was required to be issued within ten days of 
application.  A licence could be ob tained after goods had arrived at the border.  For imports of alcoholic 
beverages,  Kyrgyzalco was the sole agency with  responsibility for dete rmination of the licence 
application.  Licenses we re required to be granted unless the app lication for a licence was not complete 
or the information contained therein was not reliable .  Article 8 of the Law on Licensing provided that 
foreign legal entities or individuals, as well as indi viduals without citizenship were entitled to receive 
licences on the same conditions and pur suant to the same procedures as legal entities and individuals of 
the Kyrgyz Republic.  Whenever a licence application was refused, reasons for the refusal were required 
to be provided to the applicant in writing.  In the case of a refusal, applicants had a  right of appeal to a 
Court, per Article 18 of the Law on Licensing of 3 March 1997. 
57. In response to further questions concerning th e procedure for granting of an import licence, he 
added that none of the items subject to import licensi ng were restricted as to the quantity or value of 
those imports.  Licence applicatio ns were normally approved in about  1 week.  In urgent cases an 
application could be approved in a shorter time.  Applications fo r an import licence could only be 
refused in an application did not meet  the stipulated criteria.  The reasons for refusal were required to be 
provided in writing to the applicant.   A decision to refuse to grant a licence could be appealed to the WT/ACC/SPEC/KGZ/13/Rev.1 
Page 34  Ministry which refused the applicat ion and further appealed to an i ndependent Court.   All persons, 
firms and institutions were eligible to apply for an import licence under the system of the 
Kyrgyz Republic.  There was no syst em of registration of persons or  firms permitted to engage in 
importation.  The licence was valid for up to six mo nths, or one year in the case of importers having 
long-term relationships  with foreign exporters.  The licence c ould be renewed for a further period of six 
months.  There was no penalty for non-utilization of the licence or a portion of a licence.  The licence 
was not transferable.  The curr ent fee to obtain an import license was som 1000 (approximately 
US$56.00).  He provided members of the Working Party w ith a detailed analysis of the cost of provision 
of the service recovered by the fee in Attachment A. IV to document WT/ACC/KGZ/ 13.  In his view that 
fee reflected the cost of servic es rendered in conformity with Article VIII of the GATT 1994. 
58. Some members of the Working Party asked wh ether the import licensing would be brought into 
conformity with the Agreement on Import Licensi ng.  In response, the representative of the 
Kyrgyz Republic stated that the Government of th e Kyrgyz Republic was in the process of drafting 
regulations to establish new import licensing procedures in conformity with WTO requirements, 
including the Agreement on Import Licensing.  That Regulation had been passed by Parliament on 8 
June 1998 and was already in force. 
59. The representative of the Kyrgyz Republic conf irmed that the Kyrgyz Republic would, from the 
date of accession, eliminate and shall not introduce , re-introduce or apply quantitative restrictions on 
imports or other non-tariff measur es such as licensing, quotas, ba ns, permits, prior authorization 
requirements, licensi ng requirements and other restrictions ha ving equivalent effect that cannot be 
justified under the provisions of the WTO Agreements.  He added that th e special import li censes listed 
in items 10  11, 18 and 19 of Ta ble 5 would be issued in conform ity with the provisions relating to 
automatic licensing in the Agreement on Import Licensi ng Procedures and would not restrict the right to 
import these products into the Kyrgyz Republic or in any way discriminate against importe d products.  
He further confirmed that the legal authority of the Government of the Kyrgyz Republic to suspend 
imports and exports or to apply licen sing requirements that could be us ed to suspend, ban or otherwise 
restrict the quantity of trade would be applied fro m the date of accession in conformity with the 
requirements of the WT O, in particular Articles XI, XII, XIII, XIX, XX and XXI of the GATT 1994, 
and the Multilateral Trade Agreements on Agriculture, Sanitary and Phytosanitary Measures, Import 
Licensing Procedures, Safeguards a nd Technical Barriers to  Trade.  The Working Party took note of 
these commitments. 
- Customs valuation  
60. In response to requests for information concerning the customs valuation system, the 
representative of the Kyrgyz Republic  stated that the Customs Code put into effect on 1 October 1997  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 35 
 provides for six methods to determine the custom s value according to the WTO Customs Valuation 
Agreement.  He further added that the Kyrgyz Repu blic did not have any impo rt reference prices in 
place and any such measures would not be reintroduced after accession, except in accordance with WTO 
Agreements.    
61. The representative of the Kyrgyz Republic also  stated that the rules to determine the customs 
value contained in the Customs Code which cam e into force on 1 October 1997 were largely in 
compliance with the WTO requirements.  Amendments "On Changes and Amendments to the Customs Code of the Kyrgyz Republic" adopted on 19 June 1998 and brought the Customs Code valuation rules 
into full conformity with the WTO. 
62. The representative of the Kyrgyz Republic indicated that the Kyrgyz Republic would fully 
apply the WTO provisions concerning customs valu ation from the date of accession, including, in 
addition to the Agreement on the Implementation of Ar ticle VII of the GATT 1994, the provisions for 
the Valuation of Carrier Media Bearing Software fo r Data Processing Equipment and the provisions on 
the Treatment of Interest Charges in Customs Value of Imported Goods.  He further confirmed that, as 
an international agreement, the provisions of the WTO Agreement on the Implementation of Article VII 
of the GATT 1994 would supersede domestic law af ter accession. He stated  that upon accession, 
minimum import prices would not be applied for cu stoms valuation purposes.   The Working Party took 
note of these commitments. 
- Rules of origin  
63. In response to questions fr om some members of the Working Party, the representative of the 
Kyrgyz Republic stated that the Kyrgyz Republic had no country of origin marking requirement.  A 
certificate of origin certified by an authorized gove rnmental body in the country  of origin was required 
for all imported goods.  Pursuant to the Customs Co de, origin was determined by methods specified in 
the Kyoto Convention Annex.  Once the Customs Code  was passed by Parliame nt, the Kyrgyz Republic 
would require time to develop impl ementing regulations on the determina tion of origin. It was envisaged 
that the primary method used would be the tariff shif t method.  The Customs Code did not define the list 
of operations that would be considered as sufficient  to confer origin.  No other specific implementing 
regulations or rules had been develo ped.  He also added that the Kyrgyz Republic intended to adopt the 
rules of origin that were being developed in the WTO. 
64. In response to further requests for informa tion on the customs origin provisions of the Customs 
Code, the representative of the Kyrgyz Republic stat ed that Chapter 55 of the Customs Code provided 
for issuance of preliminary decisions on various i ssues including the country of origin. Assessments 
remained effective for three years.  Implementing instructions describing the process in detail would be WT/ACC/SPEC/KGZ/13/Rev.1 
Page 36  developed at a later stage.  Chapters 58, 59 and 60 of the Customs Code prov ided that administrative 
actions taken by customs bodies could be appealed.  The Customs Code also provided that goods that 
are wholly produced in a country ar e considered as originating in that country.  A list of wholly 
produced goods was adopted from the Kyoto Conventi on Annex.  The Customs Code provided for three 
methods of determining origin as specified in the Kyoto Convention Annex.  However, the tariff shift 
method of determining origin was, at present, th e only method in use.  There were no regulations 
implementing the ad valorem  or specific manufacturing or processing methods.   
65. The representative of the Kyrgyz Republic c onfirmed that the Kyrgyz  Republic would remedy 
any departures from full conformity with the WTO Ag reement on Rules of Origin prior to its accession, 
and that by that time, the Kyrgyz Republic's applica tion of rules of origin for both MFN and preferential 
trade would be administered in conformity with th e provisions of the Agreement.  The Kyrgyz Republic 
would adopt the Harmonized Rules of Origin once fina lized by the WTO in co-operation with the World 
Customs Organization.  The Working Party took note of this commitment. 
- Pre-shipment inspection  
66. In response to questions, the representati ve of the Kyrgyz Republic stated that the 
Kyrgyz Republic had no plans to introduce any preshi pment inspection requirements; however, if such 
requirements were introduced, they  would be consistent with the requirements of the Agreement on 
Preshipment Inspection.  The Working Party took note of this commitment. 
- Anti-dumping, countervailing and safeguards  
67. Some members of the Working Party expresse d concern that both the current Customs Tariff 
Law in force and the proposed law departed from WT O rules on imposition of anti-dumping duties in 
several respects.  These members requested that the le gislation be amended so as  to be WTO-consistent 
from the date of the Kyrgyz Republic's accession to th e WTO.   In response, the representative of the 
Kyrgyz Republic stated that dump ing, countervailing, and safeguar d measures would be governed by 
new laws currently being drafted in conformity with respective WTO agreements.  Draft laws on 
dumping, countervailing, and safegua rd measures were submitted in October 1997 to the Working Party. 
68. Some members of the Working Party requested that the Government of the Kyrgyz Republic 
undertake a commitment that any anti-dumping, counte rvailing or safeguards measures would only be 
taken pursuant to legislation in conformity with  the WTO Agreement on Subs idies and Countervailing 
Measures, the Agreement on Interpretation of Ar ticle VI of the GATT 1994, and the Agreement on 
Safeguards.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 37 
 69. The representative of the Kyrgyz Republic stated that the Laws on Anti-Dumping, Safeguards 
and on Subsidies and Countervailing Measures would be adopted in Oc tober 1998.  Any legislation in 
place at the time of accession or implemented in the future providing for the application of measures 
taken for anti-dumping, countervailing duty, or safe guard purposes would conform to the provisions of 
the WTO Agreements of Anti-Dumping, on Subsidie s and Countervailing Measur es, and on Safeguards. 
In the absence of such legislative authority in place at the time of ac cession, the Kyrgyz Republic would 
not apply measures for anti-dumping, countervailin g duty, of safeguard purpo ses until legislation in 
conformity with the provisions of  these WTO Agreements had been implemented.  The Working Party 
took note of these commitments. 
- Export Regulation  - Customs tariffs, fees and charges and internal taxes applied to exports  
70. In response to requests for information the re presentative of the Kyrgyz Republic stated that 
there were no export duties 
71. The representative of the Kyrgyz Republic stated that like all CIS countries - a VAT was 
charged on exports destined for ot her CIS countries. The importing CI S country was required to grant 
the person who first sold the good a VAT credit in the amount of the VAT paid to the Kyrgyz Republic.  
VAT did not apply on exports to non- CIS countries.  He recalled that  amendments of the Tax Code 
provided for application of VAT to  imports from CIS countries which applied the destination principle 
to their exports to the Kyrgyz Republ ic - in this context VAT would al so not be applied to exports to 
CIS countries which applied the de stination principle with regard to their exports to the Kyrgyz 
Republic.  The VAT would be applied to exports in accordance with the destination principle as of 
1 January 1999. 
 - Export restrictions  
72. The representative of the Kyrgyz Republic st ated that with the exception of quantitative 
restrictions specified in an Agreement with  the European Communities on Textiles, the 
Kyrgyz Republic maintained no quantitative expor t restrictions, nor prohibitions on exports.   
 - Export licensing  
73. The representative of the Kyrgyz Republic info rmed members of the Working Party that export 
licences were required for the expor t of military arms and goods;  e xplosives;  nuclear materials and 
technology for military use;  virulent poisons;  na rcotics (including those used  in pharmaceuticals) and 
psychotropic substances;  works of art and antiquities havi ng historical, cultural or  scientific value; WT/ACC/SPEC/KGZ/13/Rev.1 
Page 38  ferrous, precious and rare-earth  metals extracted and produced in  the Kyrgyz Republic and their 
fragments;  and rare types of raw materials of vegetable or animal orig in having pharmacological 
applications.  Except for non-ferrous metal fragment s and waste, the licens ing requirement was not 
intended to restrict the quantity or value of the expor ts of these goods, but rather  to protect public health, 
consumer welfare, the environment, national patrimony and national security.  He further noted that 
licensing was mandatory for textile e xports to the European Communities. 
74. In response to requests for more informati on concerning the requirement  to obtain a licence for 
the exportation of ferrous, precio us and rare-earth metals extr acted and/or processed in the 
Kyrgyz Republic, the representative of the Kyrgyz Re public stated that any manufacturing/mining entity 
or intermediary entity (regardless of form or ownershi p) was eligible to apply for such a licence.  The 
licence application was required to be submitted to the Ministry of Industry and Trade. When applying 
for an export licence, an app licant must submit:  (i) an application on  a standard form;  (ii) a copy of the 
export contract;  (iii) a copy of the a pplicable bilateral agreement on deliv eries, if any;  and (iv) a short 
description of how the transaction benefits th e Kyrgyz Republic.  Upon receipt of a complete 
application,  a licence would be granted automatically within 20 days . The licence was non-transferable.  
Once the licence was granted, the recipient must prov ide it to the  State Customs Inspectorate together 
with a customs declaration.  A "single shipment" lice nce must be used within six months from the date 
of issuance. A "multiple shipment" licence must be used within 12 months. 
75. The representative of the Kyrgyz Republic stated that the following non-ferrous metal and 
wastes and scrap thereof, and HS tariff num ber,  were subject to export licensing: 
7404 Copper wastes and scrap 
7503 Nickel wastes and scrap 7802 Lead wastes and scrap 
7602 Aluminum wastes and scrap 
7902 Zinc wastes and scrap 8002 Tin wastes and scrap 8101 Wolfram and articles thereo f, including wastes and scrap 
2611 Tungsten ores and concentrates 
8102 Molybdenum and articles thereo f, including wastes and scrap 
2613 Molybdenum ores and concentrates 8103 Tantalum wast es and scrap 
8104 Magnum wastes  and scrap 
8105 Cobalt wastes and scrap 8106 Bismuth wastes and scrap 
8107 Cadmium wastes and scrap 
8108 Titanium wast es and scrap 
8109 Zirconium wastes and scrap 8110 Antimony and article s thereof, including wastes and scrap 
2617 Antimony concentrates 
2825 Antimony oxides 
8111 Manganese wastes and scrap 8112 Rhenium and articles thereof, including wastes and scrap  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 39 
 
8112 Chrome, germanium, vanadium, beryllium and niobium wastes 
and scrap 
76. Some members of the Working Party requested information on Cabinet of  Ministers Resolution 
No. 56 of 6 February 1996.  They noted that th e resolution provided for licensing requirements and 
controls on exports, including  tex tile goods, wearing apparel,  silicon carbide, ammonium nitrate, and 
raw aluminum, required by bilateral agreements between the Russian Federation and the European Communities, and for general exports of prec ious stones, precious metals, articles containing 
precious metals, and precio us metal waste.  The representative of the Kyrgyz Republic stated that the 
restrictions set out in that draft Resolution would co me into force only if the Kyrgyz Republic became a 
member of the Customs Union.  The goal of the draft legislation would be  to protect electric 
transmission and communication lines  and ferrous and non-ferrous metal items from theft by persons 
desiring to resell those metals to scrap metal processi ng firms.  In the view of the Government of the 
Kyrgyz Republic, the measures were justifiable on national security grounds. 
77. In response to further questions concerni ng the reason for the requirement to obtain export 
licences for exports of non-ferrous metal and wast es and scrap thereof, the representative of the 
Kyrgyz Republic stated that when an application for an e xport licence was received, the 
Kyrgyz Republic reviewed the prices of the products to be exported.  While the export licences were not 
refused on the basis of low prices, recommendations were made to the a pplicant to ensure that prices 
were comparable to world market prices.  He conf irmed that no sanctions were imposed on exporters 
who continue to export these produ cts that were considered to be  below world market prices. The 
Kyrgyz Government did not consider the export of thes e products at low prices in its decision to grant or 
renew an enterprise's licence to purchase or sell fra gments and waste of non-ferrous and ferrous metals.  
Some members of the Working Party remained concerne d that the export licensing regime applied to the 
items listed in paragraph 75 above could be discretionary, and be employ ed to protect do mestic industry. 
78. The representative of the Kyrgyz Republic stated  that the Kyrgyz Republic would ensure that its 
system of export licensing was in conformity with  the requirements of Arti cle XI of the GATT 1994 as 
from the date of accession.  The Worki ng Party took note of this commitment. 
 - Export subsidies  
79. In response to questions, the representati ve of the Kyrgyz Republic stated that the 
Kyrgyz Republic had no policies or measures to fi nance exports.  Certain limited export promotion 
programmes were maintained.  The Kyrgyz Republic  imposed no export perf ormance requirements.  
Drawback on goods imported for completion, assemb ly, or processing for re-export must be claimed 
within a time limit set by the State Customs Inspectorate and th e processed goods must be exported 
within two years after the importation of the concerne d items.   He further added that the Customs Code WT/ACC/SPEC/KGZ/13/Rev.1 
Page 40  also exempted from duties and ta xes goods re-exported within six m onths of importation.  If the goods 
were not re-exported within six months, customs duti es, taxes and interest we re collected on the goods. 
80. Some Working Party members noted that th e 1991 Foreign Investment Law granted profit tax 
exemptions for Kyrgyz legal entities for two to five  years based on foreign participation, depending on 
the nature of its activity.  After the expiration of the profits tax exemption, varying reductions in the 
applicable profits tax are provided for under certain circumstances, in cluding a 25 per cent reduction if 
at least 50 per cent of the entity's production is expo rted.  In addition, the Directorate of the Bishkek 
Free Economic Zone (Information Bu lletin No. 2) provides exempti ons from lease payments for up to 
15 years for establishments which (i)  are engage d in export-oriented and import substitution production 
activities;  (ii)  use dome stic raw materials and spare parts;  and (iii)  employ a certain number of people 
per year.  In addition, export-oriented production is exempt from quantitativ e restrictions.  Some 
Working Party members sought a commitment from the Kyrgyz Republic to eliminate these measures, 
which constituted prohibited subsidies within the meaning of Article 3 of the WTO Agreement on 
Subsidies and Countervailing Duties. 
81. In response to further questions, the representa tive of the Kyrgyz Republi c stated that certain 
lease payment provisions of the Bishkek Free Economic Zone were concerned with import substitution.  The representative of the Kyrgyz Republic stated that  the source of input for production purpose was not 
restricted.  An enterprise (i) was not prohibited or limited in its ability to import products used in or related to its local production and ( ii) was not required to use local produc ts as input for its production.   
Some members of the Working Pa rty stated that the tax incent ives based on export performance 
provided by Article 24 of the previous Foreign Inve stment Law of June 1991 sh ould be eliminated prior 
to accession to the WTO.  In response, the represen tative of the Kyrgyz Republic stated that the new 
Foreign Investment Law of Septembe r 1997 does not provide any tax incentives.  He confirmed that his 
Government did not intend to apply any export subsid ies to industrial goods.  He added that those tax 
incentives based on export performa nce were currently used by forei gn firms under a previous foreign 
investment law.  It was foreseen that those incentiv es would continue to apply until the expiration of the 
term of their validity.  Any attempt at this point to  terminate such incentives prior to the term of their 
validity would cause significant proble ms to existing foreign investors. 
82. The representative of the Kyrgyz Republic stated that the lease payment exemption for 
export-oriented and import substitution produc tion which could be considered to conflict with the 
requirements of the Agreem ent on Subsidies and Countervailing Meas ures would be eliminated   by 31 
December 2001.  He further stated that the Regulations On the Amendments to Certain Decisions of the 
Government would be in conformity with the requirements of the Agreement on Subsidies and 
Countervailing Measures and would be adopted by the date of accession.  The Working Party took note 
of these commitments.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 41 
 83. The representative of the Kyrgyz Republic stated that his Government would eliminate, by 
31 December 2002, all measures  which meet the definition of a prohi bited subsidy, within the meaning 
of Article 3 of the Agreement on Subsidies and Countervailing Measures, including those subsidies 
discussed in paragraphs 80 and 81 covered under the Foreign Investment Law of 1991 and the 
Regulations on the Amendments to  Certain Decisions of the Gove rnment and would terminate by 
31 December 2002 any incentives previously granted under these and prior laws.  The Working Party 
took note of these commitments. WT/ACC/SPEC/KGZ/13/Rev.1 
Page 42  
- Internal Policies Affecting Trade in Goods 
 - Industrial policy, including subsidies  
84. In response to reques ts for information, the representative of the Kyrgyz Republic stated that the 
Government had a general policy to create a br oad-based market economy and to privatize all 
government-owned commercial enterprises and assets .  The Government also had a general policy to 
attract foreign investment into the country and to  involve, as far as possible, foreign investors, 
technology and know-how in all sect ors of the economy for the purpose of furthering the creation of a 
broad-based market economy and the privatization of government-owned comm ercial enterprises and 
assets.   The Government did not in tend to maintain any policies which would distort trade;  nor protect 
any industry, market or business entity. 
85. Some members of the Working Party asked whether the Kyrgyz Republic would maintain 
subsidies prohibited by Article 3 of the Subsidies and Counterva iling Measures Agreement upon its 
accession to the WTO and whether it would have r ecourse to Article 29 of the same Agreement to 
justify such subsidies.  In response, the represen tative of the Kyrgyz Republic  stated that, excepting 
other subsidies described above, th e only subsidies had been certai n tax exemptions provided by the 
Foreign Investment Law of 1991.  The new foreign investment law which elim inated tax exemptions 
based on export performance had been adopted in September 1997. 
 - Technical Barriers to Trade  
86. In response to reques ts for information, the representative of the Kyrgyz Republic stated that 
standards and certification requirement s in the Kyrgyz Republic were not intended to distort or establish 
technical barriers or to di srupt trade.  The object of such standard s and certification re quirements were to 
(i) ensure the safety and/or quality of goods, works an d services, (ii) to protect the environment and the 
health, life, work and property of citizens, (iii) to  ensure uniformity of measurement and the technical 
compatibility and interchangeability of  products;  and (iv) to preserve all types of resources.  Both 
domestic-origin and foreign-origin goods were equall y subject to the same requirements on standards 
and certification.    Importers of  goods subject  to obligatory certific ation of conformity with national 
safety requirements and othe r technical requirements we re required to present a certificate at the border 
stating that the goods met the applicable requirem ents, along with the import declaration and other 
supporting documents.  If an interna tional agreement to which the Kyrgyz Republic is a party provides 
for other rules other than those stipulated by the le gislation of the Kyrgyz Re public on standardization 
then the rules of the internat ional agreement would prevail.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 43 
 87. The representative of the Kyrgyz Republic adde d that the State Direct orate on Standardization 
and Metrology under the Cabinet of  Ministers (Kyrgyzstandard) wa s the agency responsible for 
developing, realizing and administering the Ky rgyz Republic’s policy on technical regulations, 
standards and certification require ments.  The Cabinet of Ministers Resolution No. 260 of 28 April 
1994, as amended by Resolution No.146 of 5 April 1996, listed seven genera l product categories that 
require certification prior to sa le, without regard to the origin of the concerned products. For 
health-related products, sanitary/hygiene test results  were used as the basis for granting the certificate of 
compliance.  Ky rgyzstandard was responsible for accrediting certification and tes ting bodies.  As of 1 
January 1998, there were 11 accredited certifying bodi es and 19 accredited test ing laboratories in the 
Kyrgyz Republic.  In addition, the four regional br anches of Kyrgyzstandard were also authorized to 
conduct certification procedures.  In accordan ce with the Agreement On a Uniform Policy on 
Standardization, Metrology and Certification, whic h was executed by all CIS countries, Kyrgyzstandard 
now accepted certificates issued by any accredited institution of Armenia, Azerbaijan, Belarus, Georgia, Kazakstan, Moldova, the Ru ssian Federation, Tajikista n, Turkmenistan and Uz bekistan.  He further 
added that it was possible for fore ign companies to be accredited as  certification bodies or testing 
laboratories by Kyrgyzstandard;  however, no such companies had yet applied. The requirements for 
accreditation and the procedures to be followe d were the same for both domestic and foreign 
certification bodies.  In response to requests fo r further information, the representative of the 
Kyrgyz Republic stated that the Law "On Pr otection of Consumers’ Rights", set mandatory 
requirements for product s which posed a substantial potential thre at to the environment or the safety, 
lives and/or health of citizens.  Kyrgyzstandard would issue a certificate of compliance and a licence to 
mark the concerned goods with a "mark of complia nce.”  Sale or import of such goods in the 
Kyrgyz Republic without such pr ior certification and marking was prohibited.  Goods imported for 
personal use did not require certific ation.  Other requirements (ind ications) were voluntary.  Goods 
subject to voluntary certification co uld be certified on the basis of an agreement between the applicant 
and Kyrgyzstandard.  Voluntary cer tification could also be performed by any body authorized by 
Kyrgyzstandard to do so.  The method of voluntary cer tification was chosen by the applicant from those 
accepted by Kyrgyzstandard.   In response to requ ests for information on the process for obtaining a 
certificate and mark of compliance the representative of the Kyrgyz Republ ic stated that the issuance of 
a certificate and mark of compliance required:  (i) the filing of an application with the responsible 
ministry or State body;  (ii) a revi ew of the application, including th e choice of certification method;  
(iii) the identification and selection of samples and their testing;  (iv) a review of the test results and a 
comparison with the applicable standards;  and (v) the issuance of a certificate of compliance and a 
licence to use the mark of  compliance.  It was ge nerally possible for the certifying body to accept the 
declaration of a manufacturer or producer, but th e acceptance of a declaration was subject to the 
discretion of the Ministry or Stat e body responsible for certifying the compliance of the goods.  Pursuant WT/ACC/SPEC/KGZ/13/Rev.1 
Page 44  to document KMS40.03-97 "System of Certification Ky rg. St. Procedure for Cer tification of Products", 
the certifying body would accept manufact urers' declarations  of compliance. 
88. In response to requests for information on the bringing of standards used in the 
Kyrgyz Republic into compliance generally accepted international standards, the representative of the 
Kyrgyz Republic stated that Kyrg yzstandard was currently  a corresponding member of the International 
Standards Organization (ISO).  The Kyrgyz Republic  was in the process of moving from the use of 
GOST-standards to the use of international standards.  The Kyrgyz Republic was a member of the CIS Inter-Governmental Council on Standa rdization, Metrology a nd Certification, which was recognized by 
ISO as a regional organization moving towards even tual implementation and usage of international 
standards.  A timetable for the change-over had not been finali sed.  The Kyrgyz Republic had also 
adopted over 120 standards of the International Elec trotechnical Commission (IEC ).  The acceptance of 
certificates issued by foreign cer tification bodies was generally depende nt on the existence of a bilateral 
or multilateral agreement on the matter.  The Gove rnment was currently in the process of negotiating 
bilateral agreements on standards with Austria, the People’s Republic of China,  Germany, India, Iran 
and Turkey. 
89. The representative of the Kyrgyz Republic furt her added that accreditation of a certification and 
testing organization was performed by Kyrgyzstanda rd and other State bodies authorized to conduct 
mandatory certification within their area of competence (for example, the Kyrgyz Ministry of Construction and Architecture was re sponsible for certifying the complian ce of constructi on materials).  
An applicant must provide Kyrgyzstandard with its organizational documents , the desired scope of 
accreditation, a brief descri ption of its legal status, as well as a desc ription of its organizational structure.  
An organization applying for an accreditation mus t:  (i) be independent and unbiased; and (ii) be 
sufficiently competent, i.e. possess suffi cient means, qualifie d professionals, etc. 
90. In response to requests for info rmation on the fee structure for ce rtificates, the representative of 
the Kyrgyz Republic stated that the Kyrgyz Republic  had conducted a detailed assessment of all fees 
connected with issuance of certific ates (including the certificate of compliance, certificate of origin, 
phytosanitary certificate, and veterinary certificate) to determine whether or not such fees were in conformity with the WTO require ments, especially Article VIII of the GATT 1994.  He provided 
detailed analysis supporting the following report:  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 45 
 
- Phytosanitary Certificate :  the current costs of issuing a Phytosanitary Certificate (minimum fee 
som 70, maximum fee som 223) ex ceeded the fee currently charged (minimum fee som 36, 
maximum fee som 265) for such a certificate.  Accordingly, th e Kyrgyz Republic considered 
that the current fee structure was in  full conformity with Article VIII .  In response to requests by 
some members of the Working Party, the Kyrgyz Republic provided the list of goods (using HS 
Code) subject to Phytosanitary Ce rtificates along with the fees ch arged for each category.  This 
certificate was issued by the Ministry of Agriculture; 
- Veterinary Certificate :  the currents costs of issuing the Veterinary Certificate (minimum 
fee som 250, maximum som 3,272) exceeded the fee currently charged (minimum fee som 30, 
maximum fee som 500) for such a certificate.  Accordingly, th e Kyrgyz Republic considered 
that the current fee structure was in  full conformity with Article VIII .  In response to requests by 
members of the Working Party, the Kyrgyz Republic provided the list of goods (using 
HS Code) subject to Veterinary Certificates.  Th is certificate was issued by the Ministry of 
Agriculture; 
- Certificate of Origin :  currently the following fees are charged for obtaining the certificate of 
origin:  (a)  CIS countries - som 100 for natu ral persons and som 300 for legal entities;  and 
(b)  non-CIS countries - som 200 for natural pers ons and som 400 for legal entities.  The Kyrgyz 
Republic recognized that the fee structure was in violation of Article I and Article VIII of the GATT 1994.  The representative of the Kyrgyz Repub lic stated that, as of  the date of accession 
to the WTO, the fee for issuing the certificat e of origin would be som 400 (reflecting the 
approximate cost of issuing a cert ificate of origin) for all legal a nd natural persons in conformity 
with Article I of the GATT 1994.  This certificate wa s issued by the Chamber of Commerce and 
Industry Regulations to bring this fee into c onformity with the requirements of the WTO 
Agreement were expected to enter into force on June 20 1998;    
- Certificate of Compliance
:  the current cost for the Certificate of Compliance ranges from 
approximately US$50 to US$1,390 depending on the type  of products and required tests.  The 
representative of the Kyrgyz Republic provided detailed information of various schemes for 
testing and the cost of using different schemes.  The Kyrgyz Republic considered that the 
current cost of issuing the Certificate of Compli ance was in conformity with Article VIII of the 
GATT 1994 and reflected the cost of services re ndered.  In response to requests by some 
Working Party members, the Kyrgyz Republic pr ovided a list (using HS Code) of all goods 
requiring a Certificate of Compliance); 
91. Some members of the Working Party asked whether any difficulties were foreseen in the 
application of the Agreement on Technical Barri ers to Trade upon accession.  In response, the WT/ACC/SPEC/KGZ/13/Rev.1 
Page 46  representative of the Kyrgyz Republic stated that the Kyrgyz Republic does not foresee difficulties in 
the application of the TBT Agreement.  He noted that , at present, draft standards, technical regulations, 
and conformity assessment procedures  were not published for public co mment.  There were at present 
no formal notice requirements, although within the CIS,  regulations have been developed that operate 
like notice provisions.  The Law on Standardization and the Law on Ce rtification was being amended to 
meet the TBT requirements for public ation of draft standards and tec hnical regulations. Kyrgyzstandard 
published a quarterly periodical entitled the Informat ion Bulletin of Kyrgyzstan dard where such notices 
will be published.  Under Resolution No. 12  of 6 January 1997 the Cabinet of Ministers of the Kyrgyz 
Republic officially establis hed the Information Centre of the Stat e Inspectorate on Standardization and 
Metrology (Kyrgyzstandard) as the Inquiry Point for standards and sanitary an d phytosanitary measures 
in the Kyrgyz Republic.  This Inquiry Point me t WTO requirements, it contained all adopted and 
proposed standards and conformity assessment proced ures and information concerning the membership 
and participation of the Kyrgyz Republic in regional  and international standardizing bodies as well as in 
bilateral and multilateral arrangements.  The Inquir y Point received questions and sends responses by 
telephone, mail, fax and e-mail.  Ky rgyzstandard had hired employees, fluent in Russian and English, 
who would receive and transmit info rmation in English.  To the extent that resources will allow, 
Kyrgyzstandard will participate in international standards activities.  The Kyrgyz Republic was a 
corresponding member of the ISO.  It was also a member of the CIS Inter-Governmental Council on 
Standardization, Metrology and Ce rtification.  This body was rec ognized by the ISO as a regional 
organization moving towards the ev entual implementation and usage of international standards. 
92. The representative of the Kyrgyz Republic stated that the Law on Making Amendments and 
Supplements to Certain Legislative Acts which was fully co nsistent with the WTO Agreement on 
Technical Barriers to  Trade  had been adopted on 8 June 1998.    The Law on Certification had been 
implemented on 17 June 1998. 
93. The representative of the Kyrgyz Republic st ated that his Governme nt would apply the WTO 
Agreement on Technical Barr iers to Trade from the date of accessi on without recourse to any transition 
period.  He further confirmed that , in particular, the Kyrgyz Republic would apply the same controls, 
criteria, and rules regarding technical regulations, st andards, certification, and labelling requirements to 
imported and domestic goods, and would not use such  regulations to restrict imports.  The Kyrgyz 
Republic would ensure that its tec hnical regulations, standa rds, certification a nd labelling requirements 
are not applied to imports in an ar bitrary manner, in a way that discri minates between supplier countries 
where the same conditions apply or as a disguised re striction on international trade, and would also 
ensure that from the date of accession its criteria fo r granting licenses or securi ng required certification 
for imported products will be publis hed and available to traders, a nd that its sanitary and other 
certification requirements are administered in a transparent and expeditious manner.  The Kyrgyz  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 47 
 Republic would be willing to consult with WTO Me mbers concerning the effect of these requirements 
on their trade with a view to re solving specific problems.  The Working Party took note of these 
commitments. 
- Sanitary and phytosanitary measures  
94. The representative of the Kyrgyz Republic stated that it was the policy of the Government to 
develop and maintain sanitary sta ndards solely for the purpose of  protecting the health of human, 
animal and plant life and not for the purpose of cr eating technical ba rriers to foreign products or for 
protecting domestic producers.  De velopment of sanitary standards was the responsibility of several 
technical committees in cooperation with the Ministry of Health. The consent of the Ministry of Health was required before Kyrgyzstanda rd could issue any standard constituting a sanitary measure.  He 
further explained that Cabinet of Ministers Resolution No. 260 of 28 April 1994, as amended by 
Resolution No. 146 of 5 April 1996, listed seven gene ral product categories that  require certification 
prior to sale, without regard to the origin of the concerned products. A ll covered products required 
certification of safety i ndicators, sanitary and e nvironmental reasons.  For health-related products, 
sanitary/hygiene test results were used as the basis for granting the certificate of compliance.  Product 
categories subject to sanitary meas ures were included in this list.  Any  accredited certification body 
could certify a product as being in conformity with the applicable sa nitary requirements if the required 
sanitary/hygiene tests had been performed by a compet ent testing laboratory and the required test results 
obtained.  He provided the Working Party with a lis t of goods subject to phyto sanitary and veterinary 
certificates together with corresponding  fees in document WT/ACC/KGZ/16. 
95. The representative of the Kyrgyz Republic fu rther added that importers  of goods subject to 
sanitary and/or phytosanitary  measures were required to present a certificate at the border stating that the 
goods met the applicable requirements, along with  the import declarat ion and other supporting 
documents.  If the container or packaging was da maged, or was not accompanied by the required 
documentation, the product could not be cleared through customs.   
96. Some members of the Working Party requested  information on whether the Kyrgyz Republic’s 
procedures for adopting trade measur es relating to concerns with huma n, animal and plant health were 
in conformity with the requirements of the SPS Ag reement.  In response, the representative of the 
Kyrgyz Republic stated that the a ppropriate ministries a nd State bodies (particula rly, the Ministry of 
Health, the Ministry of Agricult ure and Food, the Ministry of Environmental Protection, and the 
Veterinary-Sanitary Supervisory Office) had review ed the provisions of the SPS Agreement and had 
brought  their respective procedures into conformity  with the SPS Agreement.   The amendments to the 
Law on Veterinary (implemented on 12 June 1998) and the Law on Plant Quar antine (implemented on WT/ACC/SPEC/KGZ/13/Rev.1 
Page 48  12 June 1998) necessary to implement the provisi ons of the SPS Agreement were provided to the 
Working Party. 
97. Some members of the Working Party aske d whether proposals for SPS measures were 
published in advance, and whether there was an opport unity for public comment by interested parties, 
both domestic and foreign.  They also asked wh ether there was a requirement to conduct risk 
assessments prior to the adoption of  SPS measures, including a requirement  that such measures be based 
on scientific evidence.  In response, the represen tative of the Kyrgyz Republic said that the draft 
Amendments to the Law on Plant Quarantine and th e Law on Veterinary provide that notifications on 
draft developed phytosanitary measur es significantly affecting trade, if not substantially the same as 
international standards, guidelines and recommendati ons, or if international standards, guidelines and 
recommendations do not exist, shall be published at an early stage in such a manner as to enable 
interested parties to make their co mments and suggestions.  He also st ated that draft amendments to the 
Law on Plant Quarantine and the Law on Veterinary require that risk as sessments be employed and that 
SPS measures be based on scientific evidence. 
98. Some members of the Working Party asked whet her the sanitary and phytosanitary standards in 
the Kyrgyz Republic were in conformi ty with international standards, in particular those developed by 
the Codex Alimentarius Commission, the International Office of Epizootics, and the international and 
regional organizations operating within the framewor k of the International Plant Protection Convention.  
In response, the representative of the Kyrgyz Republic  stated that the appropria te ministries and State 
bodies (particularly, the Ministry of Health, the Mi nistry of Agriculture and Food, the Ministry of 
Environmental Protection, and th e Veterinary-Sanitary Supervisor y Office) had been conducting  
comparisons of their standards with internationa l standards through the Eurasian Organization on 
Standardization, and were engaged in the necessary work to ensure the harmonization of their standards 
in conformity with the SPS Agreement.  
99. The representative of the Kyrgyz Republic said  that the Government was currently considering 
draft Regulations "On measures fo r transition to international standards and improving the order of 
using technical regulations " which set out the program of work required to harmonize Kyrgyz sanitary 
and phytosanitary standards with international st andards in 1999. The Kyrgyz Republic would report 
annually progress in the work on harmonization until th eir standards were in conformity with the WTO 
requirements. Th e Working Party took note of this commitment. 
100. Some members of the Working Party expresse d concern that Cabinet of Ministers Resolution 
No. 260 required that safety certif icates be obtained for imports of "agricultural and food industry 
products".  They requested details of the scientific evidence or ri sk assessments upon which Resolution 
No. 260 was based.  In response, the representativ e of the Kyrgyz Republic stated that Resolution  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 49 
 No. 260 was based on the evaluation of the possibility  of entry of pests and diseases and potential 
biological consequences. Certifica tion requirements for it ems listed in Resolution No. 260 were based 
on scientific studies and were imposed only to the ex tent necessary to protect human life and health and 
the environment. 
101. The representative of the Kyrgyz Republic stat ed that the Kyrgyz Republic would apply the SPS 
Agreement in full upon accession.  He noted that th e Law On Amendments to the Law on Veterinary 
and the Amendments to the Law on Plant Quarantine  were fully consistent with the SPS Agreement and 
were adopted  on May 25 1998. 
102. The representative of the Kyrgyz Republic stated  that from the date of accession to the WTO his 
Government would apply all its sani tary requirements consistently with the requirements of the WTO 
Agreements on Sanitary and Phytos anitary Measures and Im port Licensing Procedures without recourse 
to any transitional arrangements.  In particular, he  stated that if a decision was taken to require 
notification of diseases other than those listed in  OIE Classes A and B, any such decision would be 
taken in conformity with the requirements of the Agreement on Sanitary and Phytosanitary Measures. 
He added that the Kyrgyz Republic would not require additional certification or sanitary registration for 
products which have been certifie d as safe for human use and cons umption by recognized foreign or 
international bodies, and the Kyrgyz Republic would ensure th at from the date of accession its criteria 
for granting prior authorization or securing the re quired certification for im ported products would be 
published and available to traders.  He confirmed that  sanitary and other certif ication requirements in the 
Kyrgyz Republic were administered  in a transparent and expeditious manner, and that his Government 
would be willing to cons ult with WTO Members concerning the ef fect of these re quirements on their 
trade with a view to resolving sp ecific problems.  The Working Part y took note of these commitments.  
- Trade Related Investment Measures (TRIMs)  
103. Some members of the Working Party noted th at bids to purchase State owned assets were 
scored according to a number of factors,  Include d among the factors consider ed was the commitment 
by the bidder "to maintain certain employment le vels".  They asked whether this requirement was 
inconsistent with obligations in the TRIMs Agreem ent   In response, the representative of the 
Kyrgyz Republic stated that giving weight to a bidd er’s willingness to make a commitment to maintain a 
certain employment level did not contradict the TRIMs Agreement.  There was no trade-related aspect 
imposed by the State on the buyer in connection with  this commitment.  The State was currently the 
major stock-holder in these entities, and in that ro le could require a potential  purchaser to maintain 
certain employment levels. Furthermor e, a requirement to maintain empl oyment levels did not mean that 
a buyer was required to use only local labour.  Th e requirement was imposed on the buyer for the 
purpose of avoiding de-stabilizing simultaneous mass lay-offs during an initial period of transition and WT/ACC/SPEC/KGZ/13/Rev.1 
Page 50  mass privatization.  This requireme nt was phased out within a limited time after the transaction. In his 
view nothing in the arrangements vi olated the TRIMs Agreement.   
104. Following questions in relation to the compa tibility of certain aspe cts of the Bishkek Free 
Economic Zone with the require ments of the TRIMs Agreement, the representative of the 
Kyrgyz Republic stated that the lease payment whic h required the employment of a certain number of 
people per year was not TRIMs inconsistent, becaus e the TRIMs Agreement refe rred only to products .  
The lease payment conditioned on use of domestic raw materials and spare parts could be TRIMs 
inconsistent and would be eliminated upon accession to the WTO.  The representative of the Kyrgyz Republic stated that the Amendments to the Regul ations on Free Economic Zones which would be in 
conformity with the requi rements of the TRIMs Agreement would be adopted by the date of accession 
to the WTO, and that the Kyrgyz Republic would en sure that the operation of the free economic zones 
would be WTO-consiste nt after accession. 
105. The representative of the Kyrgyz Republic stat ed that from the date of accession, the Kyrgyz 
Government would not maintain measures that we re not in conformity with the Agreement on 
Trade-Related Investment Measures.  The Wo rking Party took note of this commitment. 
- State-trading practices  
106. Some members of the Working Party noted th at the Kyrgyz Republic had earlier described 
enterprises that enjoyed  natural monopolies.  They asked whether the trade activities of those 
enterprises were State-trad ing in terms Article XVII of the GATT 1994 of Articl e VIII of the GATS.  In 
response, the representative of the Kyrgyz Republic stated that the G overnment of the Kyrgyz Republic  
had reviewed the operations, legal status and privil eges of the listed natural monopolies to determine 
whether they should be notified as St ate-trading entities within the mean ing of Article VIII of the GATS 
or Article XVII of the GATT.  If the Government determ ined that an entity fell within the definition of a 
State-trading enterprise, that entity would be notified as such to the WTO.  At present, the Government 
had  examined the following enterprises:   
- Management Department of  Kyrgyzrailroad (intra-republic passenger and goods 
transportation); 
- Ministry of Communication (telecommuni cation services rendered to public); 
- Kyrgyz Energy Holding Company (electric power and thermal energy); 
- "Kyrgyzgas" (natural and liquefied natural gas); - "Kyrgyzjilkommunsojuz" (thermal en ergy, water-pipe water and sewage); 
- "Kyrgyzalco" (alcohol and alcohol products, other than beer); and 
- "Kyrgyztamekesi" (tobacco fermentation, manufac ture of tobacco products , sale of fermented 
tobacco).  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 51 
 He further added that Kyrgyzpharm acia had no role whatsoever in the issuance of licenses and, 
therefore, would not be notified as a State tradin g company.  Later, the representative of the 
Kyrgyz Republic stated that further examination of the State trading sector had revealed that State trading monopolies currently existed in the alcohol, tobacco, and electrical energy sectors: Kyrgyzalco 
(de jure ), Kyrgyztamekesi ( de jure ), and Kyrgyz Energy Holding (de facto).  He added that those 
enterprises would be notified to the WTO as State tr ading enterprises.  In response, some members of 
the Working Party stated that Kyrgyzaltyn should also  be notified as a state tr ading enterprise, because 
since 1994, that fully State owned enterprise had been the only pr oducer, importer, or exporter of 
antimony.  In response, the repres entative of the Kyrgyz Republic stated that although Kyrgyzaltyn had 
been the only, de facto, producer, importer, and ex porter of antimony, the Kyrgyz Republic did not 
believe that this company fell under the definition of  Article XVII of the GATT 1994.  Kyrgyzaltyn did 
not have any exclusive or special rights or privileges in conducting foreign trade.  Any person could 
apply for and obtain a license to export antimony .  Licenses were not required for the import of 
antimony.   
107. Concerning the tobacco sector, Kyrgyztamekesi  was the sole provider of licences for the 
production of tobacco products  in the Kyrgyz Republic.  Any person could obtain a licence to engage in 
the production of tobacco products.  Imported tobacco products we re marketed freely in the 
Kyrgyz Republic, licenses were not required for the domestic distribution or sa le of tobacco products. 
108. The representative of the Kyrgyz  Republic stated that concerning the alcohol sector, Article 8 of 
the Law on Licensing of 3 March 1997 stated that foreign legal entities or individuals, as well as 
individuals without citizenship should receive licenses on the sa me conditions and in the same 
procedure as legal entities and i ndividuals of the Kyrgyz Republic , unless otherwise stipulated by 
legislative acts. Currently, no legislative acts stipulated otherwise for licenses issued by Kyrgyzalco.  
Article 18 of the same law permitte d license applicants to have judi cial appeal.  Any MFN or national 
treatment (Article III) violations ma y be appealed to the court by license applicants.  Policy decisions 
with respect to any quantitative restrictions and pr ohibitions are made by the Government and not by 
Kyrgyzalco.  The Kyrgyz Republic commits to ensure th at the operations of Kyrgyzalco in the issuance 
of import and export licenses for al cohol and alcoholic products are admi nistered in a ma nner consistent 
with WTO requirements. 
109. Concerning the energy sectors, there were no prohibitions by the government on the export of 
oil products, natural gas, and liquefied gas.   Currently, there were no firms (including 
Kyrgyzgasmunaizat) engaged in the exportation of o il products, natural,  and liquefied gas, due to high 
domestic demand and insufficient s upply.  There were five privatel y-owned companies engaged in the 
importation of oil products: Lukoil Kyrgyzstan, Tyan-Sha n Oil, Sato Petroleum, Datka, and Ekooil.  In 
addition to Kyrgyzgasmunaizat which imported approximately 50 per cent of the natural gas and WT/ACC/SPEC/KGZ/13/Rev.1 
Page 52  liquefied gas to the Kyrgyz Republic, a number of  State companies (e.g. Ka damjai Antimony Group, 
Maili Suu Lamp Plant) were currently importing natu ral gas to meet their own demand.  These State 
companies had their own c ontracts with Uzbekistan for importi ng natural gas and had a commercial 
contracts with Kyrgyzgasmunaizat  to transport gas from Uzbeki stan to the Kyrgyz Republic. 
110. Some members of the Working Party requested further information on tr ade in the electrical 
energy sector.  These members welcomed the recognition that although there were no de jure  barriers to 
trade in electrical energy in the Kyrgyz Republic,  there was a de facto monopoly in the hands of the 
Kyrgyz Energy Holding Company.  In response, the representative of the Kyr gyz Republic stated that 
the production and sale of the electrical energy was carried out by Kyrgyz Energy Holding.  There were 
no regulatory barriers to entry.  Any person could apply for a licence for the generation, transmission, 
distribution, and sale of electrical energy.  The dr aft regulations outlining the procedures, criteria, and 
requirements for obtaining su ch licences were currently being developed in accordance with the Law on 
Licensing of 3 March 1997.  He noted that no applic ations for such licences had been submitted to the 
Licensor (the "State Energy Agency under the Cabinet of Ministers").  He adde d that electrical power 
was equally available to all firms and individuals in  the Kyrgyz Republic.  In general, the rates for 
households were lower than the rate s for legal persons.  There was no difference in the rates charged to 
(1) a legal person (without foreign ow nership), (2) a legal person (fully or partially foreign-owned), and 
(3) a representative or branch office.   Export prices  of bartered electrical energy establ ished with 
Uzbekistan and Kazak stan were negotiated on annual basi s and depended upon the traded volume and 
conditions of the inter-governmental agreement.  The volume and the commercial value of bartered 
goods were considered during negotiation. 
111. Some members of the Working Party requested that the Kyrgyz Republic undertake a 
commitment  that, upon accession to the WTO, all Stat e trading enterprises woul d be eliminated.   In 
response, the representative of the Kyrgyz Republ ic stated that Article XVII of the GATT 1994 
authorized State trading activities.  The Kyrgyz Republic wa s not prepared to unde rtake a commitment 
that State trading would be abolished in the alcohol and tobacco sectors. 
112. The representative of the Kyrgyz Republic conf irmed that his Government would apply its laws 
and regulations governing the tradin g activities of State-owned enterp rises and other enterprises with 
special or exclusive privileges, as noted  in paragra ph 103 of this report, in conformity with the relevant 
provisions of the WTO Agreement, and would abide by the provisions for notification, 
non-discrimination, and the application of commercial  considerations for trad e transactions for any 
enterprise whose activities were subject to Article XVII of the GATT 1994, the WTO Understanding on 
that Article, and Ar ticle VIII of the GATS.  He further conf irmed that the Kyrgyz Republic would notify 
any enterprise falling within the scope of Article XVII at the time of accession.  The Working Party took note of these commitments.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 53 
 
 - Free zones  
113. In response to requests fo r information on free zones opera ting in the Kyrgyz Republic, the 
representative of the Kyrgyz Republic  stated that existing legislation and the Customs Code authorized 
the establishment of free economic zones, which offered special cust oms, tax, labour relations and 
procedural benefits to enterprises locating within such a zone.  Each free economic zone was required to 
be established by an act of Parliame nt.  Specific benefits included:  (i) exemption from the imposition of 
customs duties and other payments on foreign-origin  goods entered into such a zone and intended for 
reexport;  (ii) simplified border clearances;  (iii) abolition of non-ta riff restrictions on  import and export;  
(iv) exemption from all taxes and charges (howev er, entities were require d to pay the General 
Directorate an annual fee of 0.1 - 2 per cent of  the proceeds generated from the sale of goods and 
services);  (v) collective labour agreement and indivi dual contracts;  (vi) free  circulation and use of 
foreign currency, including payments between legal entities and natural persons in the zone;  and 
(vii) simplified entrance, departure and salary transfer abroad for foreign citizens.  Four economic zones had been created by law, but only the Bishkek zone wa s operational.  In response to that information, 
some members of the Working Party asked whether or  not any free or free economic zones established 
in the future would be fully consistent with all WTO obligations relating to  free and free economic 
zones. 
114. The representative of the Kyrgyz Republic stat ed that the free zones a nd special economic zones 
authorized by the legislation descri bed in paragraph 110 above  were fully subject to the coverage of the 
commitments of the Kyrgyz Republic in its Protocol  of Accession to the WTO Agreement and that the 
Kyrgyz Republic would ensure enforcement of its WTO obligations in those zones.  In this regard, he 
confirmed that the Regulations on the Amendments to Certain Decisi ons of the Government had been 
adopted and implemented from 23 June 1998 by the da te of accession to the WTO.  In addition, goods 
produced in these zones under tax and tariff provisi ons that exempt imports and imported inputs from 
tariffs and certain taxes would be subject to normal customs formalitie s when entering the rest of the 
Kyrgyz Republic, including the application of tariff s and taxes.  The Working Party took note of these 
commitments. 
 - Government procurement  
115. In response to requests for info rmation, the representative of th e Kyrgyz Republic stated that in 
the past there was no specific law regulating government procurement pr actices.  Each branch, ministry, 
agency, or other governmental body was free to utili ze whatever method it desired to acquire required 
goods and services.  Open competitive bidding was not required.  Details of Go vernment purchasing in 
recent years were provided to the Working Party in  Tables 1-29 and 1-30 of Annex 1 of document 
WT/ACC/KGZ/3.  He furthe r added that as part of the reform process, the Law on State Procurement WT/ACC/SPEC/KGZ/13/Rev.1 
Page 54  was adopted by the Parliament of the Kyrgyz Republic on 15 April 1997, enacted on 13 May 1997, and 
came into force on 1 June 1997. 
116. In response to requests for information on th e purchasing process under the  law on government 
procurement, the representative of the Kyrgyz Republic stated that th e law was based on the 
UNCITRAL Model Law on Procurement and  required th at procedures and criteria for the evaluation of 
bids be set forth in the solicitati on documents issued for each procurem ent.  The  law required procuring 
entities to act in strict accordance with the applic able solicitation documents.  Price, subject to any 
margin of preference applied pursuant to the la w, was the only criterion unless the solicitation 
documents stated that the award will be based on other objective and quantifiable criteria. Alternative 
criteria must be specified in advance in the solicitation documents.  The State Procurement Agency 
under the Cabinet of Ministers was established according to Presidenti al Decree No. 31 of 29 January 
1997. This new central agency would control the applic ation of the legal system, supervise the decisions 
of all purchasing organizations, moni tor infringements of public law and settle disputes.  Disputes could 
be pursued in the economic Court system; however, j udicial redress was generally  available only after 
the exhaustion of administrative remedies. He noted, however, that the following matters were not 
subject to judicial review: 
- the selection of the method of procurement; 
- the choice of a selection procedure; - the limitation of procurement proceedings on the basis of nationality; 
- a decision by the procuring entity to reject  all tenders, proposals, offers, or quotations; 
- a refusal by the procuring entity to respond to an expression of interest to participate in 
request-for-proposal proceedings; and 
- an omission of reference to laws and regulations in the solicitation documents.   
117. In response to questions concerning whether the procurement of certain products was reserved 
for local industry, the representative of the Kyrgyz  Republic stated that wi th respect to the MFN 
principle, the law did not permit the procuring ent ity to discriminate among foreign bidders.  of goods, 
works, and services, a purchasing organization sha ll have the right to limit participation in the 
procedures of purchases to domestic suppliers. 
118. Some members of the Working Party asked that as part of its protocol accession commitments, 
the Kyrgyz Republic accede to th e Government Procurement Agreem ent (GPA) and submit a schedule 
of commitments to the GPA Committee to initiate negotiations no later than three months after the date of accession to the WTO.  These members expressed concern that the new law would allow for domestic 
preferences, either by limiting pr ocurement procedures to national bi dders, or by gi ving preferential 
margins to domestic goods or  service providers.  In their view, su ch a provision would create a trade 
barrier in contradiction with th e future obligations that the Kyrgyz Republic would assume upon  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 55 
 accession to the Government Procurement Agreemen t.  In response, the representative of the 
Kyrgyz Republic stated that the law did permit the limiting of pr ocurement procedures to national 
bidders but did not permit the granti ng of preferential marg ins to domestic suppliers  or service providers 
(Article 34(4)(c) of the Law on Procurement of G oods, Works and Services enacted on 1 July 1997). 
119. The representative of the Kyrgyz Republic st ated that the Kyrgyz Republic would initiate 
negotiations for membership in the Government Pr ocurement Agreement upon accession by tabling an 
entity offer at that time.  He also confirmed that, if the results of the negotiations were satisfactory to the 
Kyrgyz Republic and the signatories of the Agreement, the Kyrgyz Republic would complete negotiations for membership in the Agreement by 31 December 1999.  The Working Party took note of 
this commitment.   
 - Trade in civil aircraft  
120. In response to the request by some members of the Working Party, the representative of the 
Kyrgyz Republic stated that his Government would consider joining the Plurilateral Trade Agreement on Trade in Civil Aircraft after accession to the WTO.  The Working Party took note of this 
commitment. 
 - Transit  
121. The representative of the Kyrgyz Republic stated  that under the Customs Code, goods in transit 
through the territory of the Kyrgyz Republic were required to be declared to the State Customs 
Inspectorate  ("SCI") at the point of entry.  Upon release from the entry point, the goods could move 
freely through the customs territory of the Kyrgyz  Republic.  No payment of duties or taxes was 
required on goods in transit.  Goods classified as "goods in transit," were required to remain unchanged 
except for normal wear and tear and should not be  used for any economic purpose.  The goods were 
required to be transported to their customs destinatio n according to the routes and directions established 
by the SCI.  If  the goods were not presented to the SCI at the point of exit within a reasonable time, the 
carrier was responsible for the paymen t of all duties and taxes due as if  the goods had been released into 
free circulation (the carrier may al so be assessed an administrative  penalty), unless the goods can be 
proved to have been exported, destroyed, or lost as a consequence of an accident or force majeure event.    
- Policies Affecting Trade in Agricultural Products  - Imports - description of the type s of border protection maintained  
122. In response to reques ts for information, the representative of the Kyrgyz Repu blic stated that 
agricultural products were not subjec t to import licensing, or other rest rictions such as quotas.  Certain WT/ACC/SPEC/KGZ/13/Rev.1 
Page 56  categories of agricultural  products, specified in the list approved  by Cabinet of Ministers Resolution No. 
260 of 28 April 1994 were subject to certification, th e purpose of which was to protect the health of 
Kyrgyz citizens by restri cting the importation of poor quality products and raw mate rial.  Imported 
agricultural products were subject to ra tes of duty not exceeding ten per cent. 
 - Exports  
123. He further added that no licence was required to  export agricultural produ cts.  There were no 
export tariffs, quotas, restrictions or prohibitions on the expor t of agricultural products.  No export 
credits, export credit guar antees, export credit insurance, or othe r financial support or assistance was 
available for agricultural exports. 
 - Internal policies - i.e. description of and the budgetary expenditure and any 
revenue foregone involved in each of th e domestic support measures in place  
124. In response to reques ts for information, the representative of the Kyrgyz Repu blic stated that 
one of the basic aims of the Kyrgyz Republic’s pol icy in agriculture was to  ensure the stability and 
growth of the supply of agricultural products to  the domestic market.  The Kyrgyz Republic was 
therefore pursuing a process of de-c ollectivization, reorganization a nd privatization of  agricultural 
enterprises.  Agricultural prices had been liberaliz ed.  From the end of 1995, all direct State financial 
support payments to all agricultural enterprises, had ceased - with the except ion of 6 special animal 
breeding and 26 seed produci ng farms.  He further noted however, th at due to a lack of funds, even 
those enterprises did not receive regular  financial support from the State.  In partial replacement of direct 
State financial support, funds loaned to the Governme nt of the Kyrgyz Republic by various international 
organizations and institutions were  being used by the Government to provide low-interest credit 
facilities to agricultural en terprises to enable them to make purchases  of key inputs, e.g. , seeds, fertilizer, 
equipment, etc.  The loans had annual interest rates of between 7 per cent and 12 per cent.  The 
follow-on loans to the agricultural enterprises had rate s of between 1 per cent a nd 5 per cent.  In this 
connection he noted that annual interest rates charge d by private commercial lenders, currently ranged 
between 50 per cent and 60 per cent. 
125. In response to this information, some member s of the Working Party as ked whether the average 
tariff rate for agricultural products under the new ta riff regime would exceed the existing 10 per cent 
average rate.  In response, the representative of the Kyrgyz Republic stated that the aver age tariff rate for 
agricultural products under the pr oposed tariff regime would rema in at about 10 per cent.  
126. Some members asked whether the Kyrgyz Re public would enter a comm itment to not require 
licences for export of agricultural products and to  not impose tariffs or quotas on the export of 
agricultural products.  In respon se, the representative of the Kyrg yz Republic stated that the  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 57 
 Kyrgyz Republic would bind its existing policies of  not requiring licences for export of agricultural 
products and not imposing tari ffs or quotas on the export of agricult ural products, except in accordance 
with WTO Agreements. 
127. The representative of the Kyrgyz Republic  provided information on domestic support and 
export subsidies in document WT/ACC/SPEC/KGZ/1.  He stated that the Kyrgyz Republic would bind 
export subsidies at zero fo r agricultural products.   
128. Some members of the Working Party asked whet her the direct State financial support payments 
to the special animal breeding and seed producing farm s would be stopped in the future.  In response, 
the representative of the Kyrgyz Republic stated that due to a lack of financial resources, the State currently provided no support to the above-mentio ned farms. Breeding farm s engaged in raising 
pedigree horses had been able to cover their costs without State assistance, but farms for the production 
of seeds were supported by the European Commission on Technical Issues.  The assistance rendered in 
1995 was an estimated som 15-20 million.  In 1997 as sistance for such farms was provided for in a 
government programme for sheep breeding. 
129. The Kyrgyz Republic's commit ments on agricultural tariffs,  on domestic support and export 
subsidies for agricultural products  are reproduced in Part I of the Schedule of Concessions and 
Commitments annexed to the Pr otocol of Accession of the Kyrgyz Republic to the WTO. 
- Textiles regime  
130. In response to requests for information on textile products, the representative of the 
Kyrgyz Republic stated that import ed textile products were subject to  rates of duty ranging from 0 to 
30 per cent, and that textile  products for children must comply with  the applicable safety standards.  
This certification requirement was established by Ca binet of Ministers Resolution No. 520 of 
2 December 1995 and applied equally to locally produ ced children’s textiles.  The export of textile 
products was only to an Agreement between the Ky rgyz Republic and the European Communities on 
Trade in Textile Products (the EC Textile Agreemen t) imposing a quota on Kyrgyz-origin textiles into 
the European Communities.  The EC Textile Agreemen t provided that the quotas did not take effect 
until 1 January 1997.  According to the EC Textil e Agreement, the Kyrgyz Republic could export 
textiles to the European Communiti es according to the following quotas (established as percentages of 
the total imports of such goods into the Eur opean Communities during the previous year): 
 - 0.35 per cent for category I goods; 
 - 1.20 per cent for category II goods;  and  - 4.00 per cent for category III, IV and V goods. WT/ACC/SPEC/KGZ/13/Rev.1 
Page 58  
VI. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME (TRIPS) 
1. General 
(a) Intellectual property policy  
131. The representative of the Kyrgyz Republic stat ed that the intellectual property system of the 
Kyrgyz Republic was still under going a transition from the system inherited from the former 
Soviet Union.  It was the policy of the Government to put into place a system of intellectual property 
protection modelled on the systems found in develope d market economy countries.  In pursuit of this 
policy the Kyrgyz Republic has a dopted (i) Part 2 of the Civ il Code, (adopted 5 December 1997, 
effective 1 March 1998) containing provisions establishing basic inte llectual property rights and 
protection, (ii) the Patent Law (adopted 16 December 1997, effective 4 February 1998), (iii) the Law on 
Copyright and Related Rights (adopted 16 December  1997, effective 23 January 1998), (iv) the Law on 
Trademarks, Service Marks and Appellations of  Places of Origin of G oods (adopted 16 December 1997, 
effective 28 January 1998).  In addition, separate la ws covering:  integrated  circuits, software and 
databases, selective breeding ach ievements and the law on commercial secrets had been adopted by the 
Parliament.  The Anti-Monopoly law enacted on 15 April 1994 contained provisions regarding unfair 
competition as well as the misappropriation of intellec tual property.  The Criminal Code (Section on 
Intellectual Property) entered into force 1 Janu ary 1998;  the Law on PC, Software Programs, and 
Databases entered into force on 4 April 1998, the La w on Integrated Circuits entered into force on 10 
April 1998 , and the Law on Commercial secrets ente red into force on April 10 1998 .  The Law on 
Legal Protection of Breeding Achiev ements had entered into force on 1 July 1998.  He further added 
that in preparing those laws, the Kyrgyz Republic had taken into acc ount the requirements of the TRIPS 
Agreement.  The representative of the Kyrgyz Republic stated that Part 2 of the Civil Code  had come 
into force 1 March 1998, and includes Chapter V - Inte llectual Property, which complies with the TRIPS 
Agreement requirements. 
132. Some members of the Working Party said that  the Kyrgyz Republic should enter a commitment 
to apply fully the TRIPS Agreement by the date of its accession to the WTO. 
(b) Responsible agencies for policy formulation and implementation  
133. In response to requests for further information,  the representative of th e Kyrgyz Republic stated 
that on 4 March 1996, the President issued a decree , which established a cent ral intellectual property 
agency, the  State Agency for Intellectual Property (also known as Kyrgyzpatent).  This agency was responsible for the registration of patents, tradem arks, industrial designs, copyrights and associated 
rights and breeding achievements (i .e. new varieties of  plants a nd new breeds of animals).  The 
Anti-monopoly Department within the Ministry of Finance was respons ible for the administration and  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 59 
 enforcement of the Anti-monopoly Law, which, at section 5, prohibited "u nscrupulous competition", 
defined as  including  the unauthorized use of tr ademarks, trade dress and confidential/proprietary 
business information. 
(c) Membership of international intellectual property conventions  
134. The representative of the Kyrgyz Republic st ated that as of 20 February 1998 the Kyrgyz 
Republic was a member of the following multilateral treaties, agreements and conventions: 
- Convention Establishing the World Intell ectual Property Organization (WIPO): 
- Paris Convention for the Protection of Industr ial Property, (signed by the Kyrgyz Republic 
Prime-Minister 6 January 1994, depo sited with WIPO 14 February 1994); 
- Madrid Agreement Concerning the International Registration of Marks, (signed by the Kyrgyz 
Republic Prime-Minister 6 January 1994, deposited with WIPO 14 February 1994); 
- The Patent Cooperation Treaty, (signed by th e Kyrgyz Republic Prime-Minister 6 January 
1994, deposited with WI PO 14 February 1994); 
- Eurasian Patent Convention (the translation is being adjusted to conform to the official version 
of 1994); 
Moreover, the Kyrgyz Republic was in the process of acceding to:   - Berne Convention for the Protection of Literary and Artistic Works; 
- WIPO Copyright Treaty; - Locarno Agreement Establishing an Internationa l Classification for Indus trial Designs (ratified 
by the Jogorku Kenesh (Upper House) 26 Januar y 1998, and submitted to the Chamber of the 
People's Representative s for ratification); 
- Strasbourg Agreement Concerning the Interna tional Patent Classifica tion (ratified by the 
Jogorku Kenesh (Upper House) 26 January 1998 and submitted to the Chamber of the People's 
Representatives for ratification); 
- Vienna Agreement Establishing an Internationa l Classification of the Figurative Elements of 
Marks (ratified by the Jogorku Kenesh (Upper  House) 26 January 1998 and submitted to the 
Chamber of the Peoples Representatives for ratification); 
- Nice Agreement Concerni ng the International Classification of Goods and Services for the 
Purposes of Registration of Ma rks (ratified by the Jogorku Kene sh (Upper House) 26 January 
1998, and submitted to the Chamber of Pe ople's Representatives for ratification). 
In addition to these multilateral tr eaties, the Kyrgyz Republic had en tered into bilateral agreements 
concerning industrial property with the following countries: WT/ACC/SPEC/KGZ/13/Rev.1 
Page 60  - Russian Federation (1995) 
- Uzbekistan (1996) 
- Kazakstan (1997) - Armenia (1997) - Azerbaijan (1997). 
The Kyrgyz Republic has yet to take the necessary steps to accede to the following conventions for 
reasons unrelated to the substanc e of the conventions themselves. 
- International Convention for the Protection of Performers, Produc ers of Phonograms and 
Broadcasting Organizations (Rome Convention); 
- Convention for the Protection of Producers of  Phonograms Against Unauthorized Duplication 
of Their Phonogram (Geneva Convention); 
- WIPO Performances and Phonograms Treaty; 
- Treaty on Intellectual Property in Respect of  Integrated Circuits (Washington Agreement); 
- Universal Copyright Convention. 
Nevertheless the Kyrgyz Republic passed this Law on Integrated Circuits on 2 Ma rch 1998 which has 
been sent to the President for the signature.  This Law provides the protection listed in the Washington 
Agreement and comports to the requirements of the TRIPS Agreement.  Moreover, Chapter 55 of the Civil Code covers neighbouring rights as did th e Law on Copyright and Neighbouring Rights adopted 
on 16 December 1997.  These laws protect the righ t of performers, produ cers of phono grams and 
broadcasting organizations for a term of fifty years and are consistent with requirements of TRIPS. 
135. The rights of producers of phonograms were protected by the Law "On Copyright and 
Neighbouring Rights", which included basic provisions  protecting the rights of these producers in 
compliance with applicable WTO requirements.  The repr esentative of the Kyrgyz Republic said that the 
Kyrgyz Republic was in the process of acceding to  the Berne Convention on Protection of Literary and 
Artistic Works and, upon accessio n, would ratify the WIPO Copy right Agreement (1996).  This 
Agreement would be submitted to Parliament for rati fication by 1 July 1998.  The Working Party took 
note of these commitments. 
(d) Application of national and MFN treatment to foreign nationals  
136. The representative of the Kyrgyz Republic noted that the policy of the Kyrgyz Republic 
regarding application of its inte llectual property laws to foreig n nationals was to accord national 
treatment to foreign citizens, stateless persons and foreign legal entities, unless such treatment was contrary to the provisions contained in other internat ional agreements to which the Kyrgyz Republic was 
a party.  The exception to this "national treatment policy" was that Article 17 of the adopted Patent Law 
and Article 6 of the Law On Trademarks, Service Ma rks and Appellations of Origin of Goods provide  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 61 
 that applications filed by forei gn legal entities and natural persons  residing outside of the Kyrgyz 
Republic shall be through a patent agent registered with State Agency on Intellectual Property 
(Kyrgyzpatent).  Furthermore, the representative of th e Kyrgyz Republic stated th at in order to ensure 
national treatment, the State Agency for Intellectu al Property (Kyrgyzpatent) was now reviewing all 
laws and regulations to ensure national treatmen t of foreign persons, for example, a uniform fee 
structure was currently being adopted. 
137. Some members asked how the Kyrgyz Republic intended  to comply with Article 4 of the 
TRIPS Agreement.  With respect to the MFN princi ple, the Kyrgyz Republic intended to follow the 
requirements of Arti cle 4 of the TRIPS Agreement.    
(e) Fees and taxes  
138. He noted that fees were char ged for the processing of trade ma rk and service mark registration 
applications, patent appl ications for inventions and industria l designs and applications for the 
certification of utility models.   Levies would also be  collected for the extension of the term of a patent 
for an industrial design, a utility model, and for an extension of the registration of a trademark, service 
mark and the use of an appellation of the place of orig in of the good.  He noted in  this regard that section 
18 of the Temporary Regulations set different methods  for calculating the appl ication/registration and 
other fees to be paid by Kyrgyz citizens and CIS nationals (fees set in vary ing shares of the "minimum 
salary") and those to be paid by non-CIS nationals  (fees set in varying am ounts of US Dollars).  
Pursuant to the Patent Law and the Law On Trademarks, Service Marks and Appellations of Origin of 
Goods, regulations were being developed which woul d provide for a unified method to accrue levies.  
However, prior to the adoption of this regulation, th e rules of the temporary re gulation on levies applied 
for the patenting of inventions, utili ty models, industrial designs, regi stration of trademarks and service 
marks (1994). 
139. The representative of the Kyrgyz Republic stated that the Kyrgyz Republic would provide 
national treatment in respect of all fees charged fo r the granting of intellectual property rights by the 
time of accession to the WTO.  In this respect, a Resolution on Intellectu al Property Fees which 
provides national treatment had b een adopted on 12 June 1998.   
2. Substantive Standards of Protection, Including Procedures For the Acquisition and 
Maintenance of Intellectual Property Rights  
140. The representative of the Kyrgyz Republic noted that the basic legal recognition of intellectual 
property rights was establis hed under several articles of the Civil Code.  Article 22 of the Civil Code 
listed the objects of civil rights, namely protec ted undisclosed information and other results of 
intellectual activity, trade names, trademarks and ot her means of individualization of goods.  Article 53 WT/ACC/SPEC/KGZ/13/Rev.1 
Page 62  of the Civil Code stated that a citizen can have the right to intellectual property as well as personal 
non-economic property rights. Article 22 specifically dealt with brands, tradem arks and other means of 
distinctively marking articles.  Article 53 of the Civil Code provided, inter alia, that a person may have authorship rights in scientific work s, works of art, literature, inventions and other results of intellectual 
activity.  Article 32  provi des that a person has the exclusive right in and to the resultant objective 
expression of their intellectual activity, including any means created and used for identifying  a legal 
entity, or a product, work, or service produced or offere d by a physical person or legal entity (e.g., firm’s 
name, product brand, trade mark, serv ice mark, etc.).   Article 32 also  provided that a third person could 
use such an "objective expression" only with the cons ent of the person/entity holding the right thereto.  
These intellectual property provisions  were contained in Part I of the Civil Code. The Anti-monopoly 
Law, which proscribed "unscrupulous competition," in cluded "the unauthorized use of  a trademark, 
name or marking of goods;  the unauthorized duplicat ion of  a form, package or appearance of goods" 
and "the unauthorized use or disclosure of confidenti al scientific, technical, engineering or commercial 
information".   
(a) Copyright and related rights, including ri ghts of performers, pr oducers of phonograms 
and broadcasting organizations  
141. The representative of the Kyrgyz Republic furthe r added that Part I of the Civil Code provides 
generally for the protection of rights of authorship.  Article 7 provides that intellectual property rights 
arise as a consequence of the creati on of works of science,  literature, arts, invention and other products 
of intellectual activity.  Kyrgyzpatent’s Temporary Regulations on the Official Registration of Computer 
Programs, Databases and Integrated  Circuit Topologies extend c opyright protection to computer 
programs - other than computer pr ogramming languages - and to data bases, which were treated as 
compilations. These Temporary Regulat ions had provided the owner of such  a program, data base or  
topology with the option of formally  registering his copyright therein.   The Temporary Regulations had 
been replaced by the Law on C opyright and Neighbouring Rights, effective 23 January 1998, which 
regulated relations resulting from the creation of works of science,  literature and art (copyright), 
phonograms, performances, productions  and broadcasts by cable and broadcast organizations 
(neighbouring rights). 
142. The representative of the Kyrgyz Republic st ated that the Law on Copyright and Neighbouring 
Rights  which had entered into effect 23 January 1998 was in full conformity wi th the requirements of 
TRIPS Agreement.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 63 
 
(b) Trademarks, including service marks  
143. The representative of the Kyrgyz Republic said  that the Law on Trademarks, Service Marks and 
Appellations of Origin of Goods provided for the re gistration of a trademark,  which was valid for ten 
years from the date a conforming application is filed with the State Agency on Intellectual Property (Kyrgyzpatent).  Article 20 of this law provided for the nullification of the registration of a trademark if 
it had not been used for three ye ars.  Pursuant to Article 6 bis of the Paris Convention on Protection of 
Industrial Property, Article 5 of the Kyrgyz Republ ic Trademark Law provided that trademarks which 
are similar to the extent likely to cause confusion w ith well-known trademarks within the territory of the 
Kyrgyz Republic may not be registered.  Article 41 of the Trade Mark Law provides liability for the 
illegal use of a trademark.  Seizure and destruction of goods in respect of which a trademark had been 
illegally used were listed among lega l remedies.  Article 5 of the law provided for the rejection of an 
application to register a trademark,  which reproduced a trade name (in full or in part) owned by others 
who have been granted an earlier ownership right. 
144. The representative of the Kyrgyz Republic st ated that the Law of the Kyrgyz Republic on 
Trademarks, Service Marks and Appellations of Origin  of Goods, passed by the Legislative Assembly of 
the Parliament of the Kyrgyz Re public on 16 December 1997, signed by  the President of the Kyrgyz 
Republic on 14 January 1998, which had entered into  effect 28 January 1998, was in compliance with 
the requirements of the TRIPS Agreement.  
(c) Geographical indications, in cluding appellations of origin  
145. The representative of the Kyrgyz Republic sa id that the newly adopted Law of the Kyrgyz 
Republic On Trademarks, Service Ma rks and Appellation of Origin of  Goods enacted in December 1997 
which had entered into force on 28 January 1998 govern ed relations involving the registration, legal 
protection and use of trademarks, service marks and appellations of origin of goods.  For example, 
Articles 27-38 of this law contained provis ions on appellations of origin of goods. 
146. The representative of the Kyrgyz Republic stat ed that the Law on Trade Marks, Service Marks 
and Appellation of Origin of Goods had brought the regime on appellations of origin of goods in the 
Kyrgyz Republic into full conformity with the requirements of the TRIPS Agreement. 
(d) Industrial designs  
147. The representative of the Kyrgyz Republic said  that the recently adopted Patent Law of the 
Kyrgyz Republic provided for the protection of indust rial designs for ten years from the priority date. 
Article 21 of the law provided an opportunity to esta blish a priority date from the date an application 
was filed in a member state of the Paris Conventi on on Protection of Industrial Property (conventional WT/ACC/SPEC/KGZ/13/Rev.1 
Page 64  priority), if the application was filed with the St ate Agency on Intellectual Property (Kyrgyzpatent) 
within 6 months from the indicated date. A limite d grace period was provided for disclosures by the 
author or person who obtained the disclosed info rmation from the author.  Excluded from protection 
were architectural structures and wo rks contradicting the public interest  or the principles of humanity.  
In response to requests for cl arification of the concepts of contradiction of  "principles of humanity", the 
representative of the Kyrgyz Republic  stated that the definitions were  not  based on official normative 
documents and could only be accompa nied by references to sources which had a statement of humane 
ideas and moral-ethic standards formed in the society,  in conformity with the international standards set 
forth in the applicable international agreements. 
(e) Patents  
148. The representative of the Kyrgyz Republic not ed that the Patent Law of the Kyrgyz Republic 
provided that the term of a patent was 20 years from the priority date. An inve ntion was patentable if it 
was new, has an inventive level and was industrially applicable.  Applications were to be filed with 
Kyrgyzpatent and were examined on request of the applicant.  A grace period was established for 
disclosures made by the inventor or a person who obtained the disclose d information from the inventor.  
Integrated Circuits were protected in a separate Ac t currently pending before Parliament.  Similarly, 
patent protection was excluded for wo rks contradicting the public interest  or the principles of humanity.  
Importation satisfied the working requirement.   
149. The representative of the Kyrg yz Republic stated that the Patent Law of the Kyrgyz Republic 
passed by the Legislative Assemb ly of the Parliament of the Kyrgyz Republic on 16 December 1997, 
signed by the President of the Kyrgyz Republic  on 14 January 1998 which had become effective on 4 
February 1998 had brought the patent regime of the Ky rgyz Republic into full conformity with the 
requirements of the Agreement on Trade Related As pects of Intellectual Property Rights.    
(f) Plant variety protection  
150. The representative of the Kyrgyz Republic said that plant varieties were  not patentable pursuant 
to the Patent Law of the Kyrgyz Republic.  However,  the legal protection for plant varieties and animal 
breeds was provided by the temporary regulation of  breeding achievements.  The draft Law of the 
Kyrgyz Republic on Legal Protection of Breeding Achievements was [passe d by Parliament on 26 
May 1998 and was awaiting Presidential signature.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 65 
 
(g) Layout designs of integrated circuits  
151. The representative of the Kyrgyz Republic stated that layout designs of in tegrated circuits were 
the subject matter of a specific law that incorporates the requireme nts of TRIPS.  The law had been 
adopted by Parliament and enacted in March 1998. 
152. The representative of the Kyrgyz Republic st ated that the Law On Topologies of Integrated 
Circuits  had been adopted on 31 March 1998 and had brought the regi me on protection of layout 
designs of integrated circuits into  full conformity with the requir ements of the TRIPS Agreement.  
(h) Requirements on undisclosed information,  including trade secrets and test data  
153. The representative of the Kyrgyz Republic stat ed that pursuant to Articles 22 and 34 of the 
Civil Code, protected undisclosed info rmation, which is a trade secret , was also listed among the objects 
of civil rights.  Such information must have actual or potential commercial value due to its secrecy to 
third parties, it cannot be accessed on any legal basi s and its holder must undertak e measures to keep it 
confidential.  Commercial secrets were the subj ect of separate legisla tion which was enacted on 
30 March 1998.  Damages were avai lable for misappropriation of such information by persons who had 
obtained it illegally or who had divulged it in violatio n of a contractual obligati on.  Article 202 of the 
Civil Code obliged a commercial representative to keep  confidential all inform ation learned about sales 
transactions, even after the completion of his or her employment.  The Criminal Code also provided 
penalties for copying info rmation from computers. 
154. The representative of the Kyrgyz Republic st ated that the Law on Co mmercial Secrets enacted 
on 30 March 1998 had brought the regime on protection of  commercial secrets into full conformity with 
the requirements of the TRIPS Agreement. 
(i) Any other categories of intellectual property  
155. The representative of the Kyrgyz Republic stated that under Kyrg yzpatent’s Temporary 
Regulations on the Procedure for the Registratio n of Licensing Agreements of 24 July 1995, 
relationships on "know-how" were prot ected.  Trade names were protec ted under Article 89 of the Civil 
Code which provides that a legal entity, whose firm name has been registered, has an exclusive right to its use.  Article 89 provided that a legal entity whic h had first registered a particular business name had 
the exclusive right to use that name.  A person who un lawfully uses another firm 's registered name was 
obliged to stop using the name upon demand and to indemnify the registered  owner for any damage 
caused by such use.  Kyrgyz patent had submitted for approval the draft regulation on firm names which 
would be in force until the adoption of the appropriate law. WT/ACC/SPEC/KGZ/13/Rev.1 
Page 66  
3. Measures to Control Abuse of  Intellectual Property Rights  
156. The representative of the Kyrgyz Republic stated  that Article 12 of the Patent Law provided that 
in cases where an invention, utility model or industrial  design was not used or used insufficiently within 
three years from the date the patent is granted, any entity willing or prepared to use the protected object 
(if the patent holder refuses to enter into a licensing agreement with the entity) shall have the right to 
resort to court and file a petition requesting the grant of a compulsory license.  Such license shall be 
granted if the patent holder fails to prove that in sufficient use or non-use of the object is caused by 
justifiable reasons.  
4. Enforcement 
(a) Civil judicial procedures and remedies  
157. The representative of the Kyrgyz Republic stated that Article 10 of the Civil Code provided that 
a plaintiff could obtain relief from the Court to enforce obligations recogni zed by civil rights.  
Accordingly, the Civil Code provided that the Co urt could order (i) specific performance of an 
obligation, (ii) compensation of losses, (iii) exac tion of penalties and other penalties. Article 14 
permitted the recovery of  losses;   including  both direct and conseq uential damages, including lost 
profits, as well as the profits made by the violator  from the violation of the right.  Compensation for 
moral rights  was available under Ar ticle 16. The protection of honour , dignity and business reputation 
was provided under Article 18, where remedies included both the right of refutation and compensation 
for  losses and/or moral harm.    
(b) Provisional measures  
158. The representative of the Kyrgyz Republic said that Article 35 of the Patent Law provided that 
courts, within the limits of their authority, had ju risdiction to hear the following disputes:  actions 
involving copyright to industrial property, disputes involving the issuance of protection documents, 
determinations as to who holds the patent, issues in volving compulsory licenses, actions for breach of 
the exclusive rights to the object of  industrial property, as well as disputes concerning other economic 
rights of the patent owner. 
(c) Any administrative procedures and remedies  
159. The representative of the Kyrgyz Republic stated that Article 10 of the Civil Code provided that 
administrative enforcement of rights could be exer cised only in cases stipul ated by law and such 
decisions were appealable in C ourt.  The Patent Law and the La w on Trademarks, Service Marks and 
Appellations of Origin of Goods provides for A ppellate Council re view of disputes involving:   WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 67 
 inventions, utility models, industrial designs, trademarks and service mark s, as well as appellations of 
origin of goods.  The Appellate Council was the firs t body of review for these disputes. The consumer 
protection agency had administra tive authority to address variou s forms of unscrupulous business 
activity, including passing off, the sale of items not fit for ordinary use (including mislabelled items of 
food and drink) and trade mark counterfeiting.  Unde r Article 20 of the Anti-Monopoly Law, the 
Anti-Monopoly Department had the power to levy and collect fines for engaging in unscrupulous 
business activity, including acts of passing off, trade mark mi sappropriation and unauthorized 
use/disclosure of  proprietary in formation.  In addition to fines, Article 22.1 provided that, upon 
successful application by the Anti-Monopoly Departme nt to a commercial Court, a violator may be 
required to surrender all profits made from the conc erned activity.  Finally, Article 22.2 permitted  the 
damaged person or legal entity to recover losses in an action filed in an appropriate Court. 
(d) Any special border measures  
160. The representative of the Kyrgyz Republic stat ed that Articles 28 to 31 of the Customs Code, 
enacted on 29 July 1997, and effective on 1 Octobe r 1997, provided for border measures related to 
intellectual property.  These measures include the su spension of the release of goods where there is an 
indication the goods violate in tellectual property rights. 
(e) Criminal procedures  
161. The representative of the Kyrgyz Republic  stated that the new Criminal Code, passed 
18 September 1997, had entered into force on 1 Ja nuary 1998.  Articles 150  and 191 detailed the 
offences for violation of copyright, neighbouring rights and the rights of a patent holder, as we ll as for 
illegal use of trademarks, service marks and appellations of origin of goods. 
162. The representative of the Kyrgyz Republic c onfirmed that his Govern ment would fully apply 
the provisions of the TRIPS Agreemen t by the date of its accession to  the WTO without recourse to a 
transitional period.  The Working Party took note of this commitment. 
VII. POLICIES AFFECTING TRADE IN SERVICES  
163. The Government of the Kyrgyz  Republic entered into bilateral negotiations on ma rket access in 
Services, on the basis of the offer circul ated to Working Part y members in document 
WT/ACC/SPEC/KGZ/3.  The results of those negotia tions are reproduced in th e Schedule of Specific 
Commitments contained in Part II of the Annex to the Protocol of Accession of the Kyrgyz Republic. 
164. In response to reques ts for information, the representative of the Kyrgyz Repu blic stated that 
since independence, the type, quality and number of  service providers had been expanding rapidly.  WT/ACC/SPEC/KGZ/13/Rev.1 
Page 68  Private companies and individual suppliers now domi nated the sector.   As of 1 January 1998, the 
service sector accounted for appr oximately 40 per cent of total em ployment.  The service sector 
accounted for approximately 30 pe r cent of GDP in 1996 and approxi mately 32 per cent in 1997.  He 
provided the Working Party with a detailed description of selected  service industries and the legal 
regime governing each.  He noted that  the primary goals of State regulatio n of the services sector were:  
protection of the life, health and economic interest s of consumers, protection of the environment and 
suppression of unfair competition.  The Kyrgyz Republic pursued these goals through a system of 
regulation intended to impose a minimum of burdens on service suppliers.   The regulatory system, with 
a relatively few minor exceptions, was imposed equally on both foreign and domestic suppliers 
(including foreign-owned domestic suppliers).  Theref ore, foreign suppliers generally enjoyed national 
treatment.  In addition, the Kyrgyz Republic did not  discriminate among foreign suppliers of services on 
any basis. 
VIII. TRANSPARENCY  
165. In response to questions fr om some members of the Working Party, the representative of the 
Kyrgyz Republic stated that there was no legal re quirement to publish all legi slation and administrative 
acts on WTO related issues.  However, in practice, all laws, decrees, and reso lutions were published in 
national newspapers.  In response, some members of the Working Party stated that the Kyrgyz Republic 
appeared to lack a legi slative basis for the implementation of  Article X of the GATT 1994 and other 
publication requirements of  WTO Agreements, e.g., the requireme nt that standards be published for 
prior review and comment before finalization and implementation.  These members stated that the 
Kyrgyz Republic should make efforts to institute appr opriate legislation on these points.  In response to 
those requests, the representative of the Kyrgyz Republic stated that amendments to the Law on 
Normative Acts and Amendments to the Law on P ublication of Laws,  prepared to ensure the 
transparency of trade laws and regulations, and to ensure conformity with Article X of the GATT 1994 
and other publication requirements of WTO Agreemen ts had entered into force on 15 July 1998.   
166. The representative of the Kyrgyz Republic said  that upon entry into force of the Protocol of 
Accession, the Kyrgyz Republic would submit all in itial notifications required by any Agreement 
constituting part of the WTO Agreement.  Any re gulations subsequently enacted by the Kyrgyz 
Republic which gave effect to the laws enacted to  implement any Agreement constituting part of the 
WTO Agreement would also conform to the requireme nts of that Agreement.  The Working Party took 
note of these commitments.  WT/ACC/SPEC/KGZ/13/Rev.1 
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IX. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD 
COUNTRIES  
167. The representative of the Kyrgyz Republic stated  that the Kyrgyz Republic had signed some 27 
bilateral agreements relating to foreign trade in goods and/or servi ces.  He provided the Working Party 
with a list of those agreements and a summary of th e terms of the agreements.  The agreements had been 
signed with 21 foreign countries (six of which we re CIS countries).  All of the agreements were 
currently in force and were genera lly concerned with the granting of mutually advantageous terms and 
conditions for trade and economic cooperation.  The Kyrgyz Republic had free trade areas or customs 
unions with the following countries:  CIS countries according to the CIS Free Trade Area Agreement;  
Kazakstan and Uzbekistan according to the Centra l Asia Economic Area Agreement (20 April 1994);  
Kazakstan, Belarus and the Russian  Federation (according to the Agreement on Joining to the Customs 
Union, 28 March 1996);  Bilateral Ag reement with Armenia (4 July 1994);  Bilateral Agreement with 
Kazakstan (22 June 1995);  Bilate ral Agreement with Moldova (26 May 1995);  Bilateral Agreement 
with the Russian Federation (8 October 1992);  Bi lateral Agreement with Ukraine (26 May 1995). 
168. Some members of the Working Party recall ed that Article I of the GATT 1994 required 
application of the MFN principle, whilst Article XXIV  permitted exceptions to Article I in the case of 
regional integration initiatives provided that the c onditions of Article XXIV a nd the Understanding were 
complied with and requested further information on  whether the Parliament expected to ratify the 
Customs Union with Russia, Kazaksta n and Belarus by the Kyrgyz Republic.  The representative of the 
Kyrgyz Republic stated that the agreement on joini ng the Customs Union was rati fied by the Legislative 
Assembly;  however, internal procedures on its enfo rcement had not been adopted.  Currently, within 
the Customs Union, expert consultations were being held on this issue.   
169. Some members of the Working Party asked how the Government of the Kyrgyz Republic 
planned to meeting the require ment contained in the Customs Union Agreement that the 
Kyrgyz Republic harmonise its customs and trade legislation with that of the other parties to the Customs Union.  In response, the re presentative of the Kyrgyz Republic stated that the harmonisation of 
the Kyrgyz Republic's legislation c onnected with foreign trade with the Customs Union's requirements 
were currently being studied at the level of mini stries and State agencies of the Kyrgyz Republic. 
170. The representative of the Kyrgyz Republic stated that his Govern ment would observe the 
provisions of the WTO including Article XXIV of the GATT 1994 and Article V of the GATS in its 
participation in trade agreements, and would ensure  that the provisions of these WTO Agreements for 
notification, consultation and other requirements concerning fr ee trade areas and customs unions of 
which the Kyrgyz Republic was a member were met from  the date of accession.  He confirmed that the 
Kyrgyz Republic would,  upon accession, submit notif ications and copies of its Free Trade Area and WT/ACC/SPEC/KGZ/13/Rev.1 
Page 70  Customs Union Agreements to the Committee on Re gional Trade Agreements (CRTA).  He further 
confirmed that any legislation or regulations required to be altered under its Tr ade Agreements would 
remain consistent with the provi sions of the WTO and would, in any case, be notified to the CRTA 
during its examination of the same.  The Wo rking Party took note of these commitments. 
X. CONCLUSIONS  
171. The Working Party took note of the explanatio ns and statements of the Kyrgyz Republic  
concerning its foreign trade regime, as reflected in this Report.  The Working Party took note of the 
commitments given by the Kyrgyz Re public in relation to certain spec ific matters whic h are reproduced 
in paragraphs 14, 21, 26, 28, 30, 34, 37, 43, 47, 52, 59, 62, 69, 78, 82, 93, 99, 102, 105, 112, 114, 119, 120, 135, 162, 166 and 170 of this Report.  The Work ing Party took note that these commitments had 
been incorporated in paragraph 2 of the Protocol of Accession of the Kyrgyz Republic to the WTO. 
172. Having carried out the examination of the fore ign trade regime of the Kyrgyz Republic and in 
light of the explanations, commitments and co ncessions made by the representative of the 
Kyrgyz Republic, the Working Party reached the co nclusion that the Kyrgyz Republic be invited to 
accede to the Marrakesh Agreement Establishing the WTO under the provisi ons of Article XII.  For this 
purpose, the Working Party has prepar ed the draft Decision and Protocol of Accession reproduced in the 
Appendix to this Report, and takes note of th e Kyrgyz Republic's Schedule of Concessions and 
Commitments on Goods (documen t WT/ACC/SPEC/KGZ/10) and its Schedule of Specific 
Commitments on Services (document WT/ACC/SPEC/KGZ/ 11) that are annexed to the Protocol.  It is 
proposed that these texts be adopt ed by the General Council when it adopts the Report.  When the 
Decision is adopted, the Protocol of Accession w ould be open for acceptance by the Kyrgyz Republic 
which would become a Member thirty days after it accepts the said Protocol.  The Working Party 
agreed, therefore, that it had completed its work concerning the negotiations for the accession of the 
Kyrgyz Republic to the Marrakesh Agreement Establishing the WTO.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 71 
 
APPENDIX 
ACCESSION OF THE KYRGYZ REPUBLIC 
Draft Decision  
The General Council, 
 Having regard  to the results of the negotiations direct ed towards the establishment of the terms 
of accession of the Kyrgyz Republic to the Ma rrakesh Agreement Establ ishing the World Trade 
Organization and having prepared a Protocol for the Accession of the Kyrgyz Republic, 
 Decides , in accordance with Article XII of the Marrakesh Agreement Establishing the World 
Trade Organization, that the Republic of the Kyrgyz  Republic may accede to the Marrakesh Agreement 
Establishing the World Trade Organization on the terms set out in the said Protocol. WT/ACC/SPEC/KGZ/13/Rev.1 
Page 72  
PROTOCOL OF ACCESSION OF THE KYRGYZ REPUBLIC 
TO THE MARRAKESH AGREEMENT ESTABLISHING 
THE WORLD TRADE ORGANIZATION 
DRAFT  
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval 
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organization (hereinaft er referred to as "WTO Agreement"), and the 
Kyrgyz Republic, 
 Taking note of the Report of the Working Party on the Accession of the Kyrgyz Republic to the 
WTO in document WT/ACC/KGZ/ .... (hereinafter  referred to as the "Working Party Report"), 
 Having regard
 to the results of the negotiations on the accession of the Kyrgyz Republic to the 
WTO, 
 Agree  as follows: 
 Part I - General  
1. Upon entry into force of this Protocol, th e Kyrgyz Republic accedes to the WTO Agreement 
pursuant to Article XII of that Agreement and thereby becomes a Member of the WTO. 
2. The WTO Agreement to which the Kyrgyz Re public accedes shall be the WTO Agreement as 
rectified, amended or othe rwise modified by such legal instrume nts as may have entered into force 
before the date of entry into force of this Protocol.  This Protocol, which shall comprise the 
commitments referred to in paragra ph 171 of the Working Party Report, shall be an integral part of the 
WTO Agreement. 
3. Except as otherwise provided for in the paragr aphs referred to in paragraph 171 of the Working 
Party Report, those obligations in the Multilateral  Trade Agreements annexed to the WTO Agreement 
that are to be implemented over a period of time st arting with the entry into force of that Agreement 
shall be implemented by the Kyrgyz Republic as if it had accepted that Agreement on the date of its 
entry into force. 
4. The Kyrgyz Republic may maintain a measure inco nsistent with paragraph 1 of Article II of the 
GATS provided that such a measure is recorded in the list of Article II Exemptions annexed to this 
Protocol and meets the conditions of the A nnex to the GATS on Article II Exemptions.  WT/ACC/SPEC/KGZ/13/Rev.1 
 Page 73 
 
 Part II - Schedules  
5. The Schedules annexed to this Protocol shall become the schedule of Concessions and 
Commitments annexed to the Genera l Agreement on Tariffs and Trade 1994 (hereinafter referred to as 
the "GATT 1994") and the Schedule of Specific Co mmitments annexed to th e General Agreement on 
Trade in Services (hereinafter referred to as "GATS") relating to the Kyrgyz Republic.  The staging of 
concessions and commitments listed in  the Schedules shall be implemented as specified in the relevant 
parts of the respective Schedules. 
6. For the purpose of the reference in paragraph 6( a) of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Con cessions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
 Part III - Final Provisions  
7. This Protocol shall be open for acceptance, by  signature or otherwise, by the Kyrgyz Republic 
until .... 
8. This Protocol shall enter into force on th e thirtieth day following the day of its acceptance. 
9. This Protocol shall be deposited with the Dire ctor-General of the WTO.  The Director-General 
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance 
thereto pursuant to paragraph 7 to each Me mber of the WTO and the Kyrgyz Republic. 
10. This Protocol shall be regist ered in accordance with  the provisions of Article 102 of the Charter 
of the United Nations. 
11. Done at Geneva this ... day of  .... one thousa nd nine hundred and ninety eight, in a single copy 
in the English, French and Spanish languages each text being authentic, except  that a Schedule annexed 
hereto may specify that it is authentic in  only one or more of these languages. WT/ACC/SPEC/KGZ/13/Rev.1 
Page 74  
ANNEX
 
SCHEDULE CXLII  - THE KYRGYZ REPUBLIC  
Part I - Goods  
[Circulated in document WT/ACC/SPEC/KGZ/10 and Corrigendum 2] 
Part II - Services  
[Circulated in document  WT/ACC/SPEC/KGZ/11] 
 
_______________