RESTRICTED
WORLD TRADE WT/ACC/KAZ/11
5August 1997
ORGANIZATION(97-3312)
Original: English Working Party onthe
Accession ofKazakstan
ACCESSION OFKAZAKSTAN
Additional Questions andReplies
totheMemorandum ontheForeign Trade Régime
(Document WT/ACC/KAZ/3)
Additional questions submitted byMembers andthereplies thereto provided bytheauthorities
ofKazakstan concerning theMemorandum ontheForeign Trade Regime ofKazakstan
(WT/ACC/KAZ/3) andtheresponses totheearlier questions submitted byMembers (WT/ACC/KAZ/6
etseq.) arereproduced hereunder.
_______________WT/ACC/KAZ/11
Pagei
TABLE OFCONTENTS
Page
No.Question
No.
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions andgoals
Private sector development/Privatization 1 1
Pricing policy 1 2
Sectoral priorities 2 3-4
(e) Competition policy 3 5-15
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE INGOODS AND TRADE IN
SERVICES
1. Powers oftheExecutive, Legislative andJudicial Branches of
Government
(b) Powers oftheLegislative 11 16-17
(c) Powers oftheJudiciary 13 18
4. AnyLegislative Programmes orPlans toChange theRegulatory
Regime
(a) Agenda fordrafting newlaws 13 19
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristics ofthenational tariff andnomenclature 15 20-21
(d) Other duties andcharges, specifying anycharges forservices
rendered
Customs processing feesandother customs services 16 22
(e) Quantitative import restrictions, including prohibitions, quotas and
licensing systems 17 23-24
(h) Customs valuation 18 25
(j) Pre-shipment inspection 19 26
(k) Application ofinternal taxes onimports
Value-added tax(VAT) 19 27-29
Excise taxes 21 30
(l) Rules oforigin 22 31
(m-o) Anti-dumping, countervailing dutyandsafeguard regime 22 32
2. Export Regulation
(d) Export licensing procedures 23 33-34
(e) Other measures, e.g.minimum export prices, voluntary export
restrictions, orderly marketing arrangements 24 35WT/ACC/KAZ/11
Pageii
Page
No.Question
No.
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policies
Agricultural subsidies 24 36-46
Non-agricultural subsidies 30 47-48
(b) Technical regulations andstandards 31 49-50
(c) Sanitary andphytosanitary measures, including measures taken
withrespect toimports 32 51-53
(d) Trade-related investment measures 34 54
(f-g) Freezones andfreeeconomic zones 35 55-56
(j) Government-mandated counter-trade andbarter 35 57-58
(l) Government procurement practices 36 59-61
4. Policies Affecting Foreign Trade inAgricultural Products 37 36-46
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(d) Application ofnational andMFN treatment toforeign nationals 37 62
(e) Feesandtaxes 38 63
2. Substantive Standards ofProtection, Including Procedures Forthe
Acquisition andMaintenance ofIntellectual Property Rights
(g) Layout designs ofintegrated circuits 38 64
4. Enforcement
(c) Administrative procedures andremedies 39 65
(d) Special border measures 39 66
(e) Criminal procedures 40 67-68
VI. TRADE-RELATED SERVICES REGIME
1. General 41 69
3. Market Access andNational Treatment 41 70
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES
1. Bilateral, Plurilateral andMultilateral Agreements Relating to
Foreign Trade inGoods andTrade inServices
(b) Plurilateral agreements relating toforeign trade ingoods and
services 42 71WT/ACC/KAZ/11
Pageiii
Page
No.Question
No.
2. Economic Integration, Customs Union andFreeTrade Area
Agreements
(c) Freetrade areaagreements 42 72
ATTACHMENTS
Attachment A-Laws andLegal ActsoftheRepublic ofKazakstan 44 -
Attachment B-Foreign Trade Statistics 45 -WT/ACC/KAZ/11
Page1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions andgoals
- Private sector development/Privatization
Question 1:
Wewould appreciate confirmation byKazakstan initsProtocol ofaccession thatitagrees that
itisimportant toensure fulltransparency andtokeepWTO Members informed ofitsprogress
inthereform ofitstransforming economic andtrade regime andintheprogress ofitsvarious
privatization programmes.
Weseekacommitment from Kazakstan toprovide annually toWTO Members information on
developments initsprogramme ofprivatization along thelines ofthat being provided tothe
Working Party during theaccession process, andonother issues related toitseconomic reforms
asrelevant toitsobligations under theWTO.
WillKazakstan make suchacommitment?
Answer:
Kazakstan will,uponrequest byWTO Members, provide information ondevelopments inits
privatization programme aswellasinformation regarding economic andtradereforms connected with
itsforeign trade regime.
- Pricing policy
Question 2:
According totheMemorandum, price liberalization withtheexception ofnatural monopolies
andState services wascompleted bytheendof1995. Tariff ratesfornatural monopolies, including
thepower sector, oilandgaspipelines, andtelecommunications arecurrently regulated bythe
State [Committee] onPricing andAnti-Monopoly Policy.
Weseekenhanced transparency inthisareaintheaccession Protocol andthatgoods andservices
subject toState price controls notified intheaccession process havebeenpublished inanOfficial
Gazette andanyfuture changes from those notified willalsobepublished.
Kazakstan should state intheaccession Protocol thatallprices forgoods andservices inevery
sector thatarenotclearly notified asunder control aredetermined bymarket forces. Allprice
controls onproducts andservices stillineffect, atthecentral andsub-central level, should be
listed byHSnumber. Thecontrols inplace should bedescribed, andtheauthority toapply
these andanyother suchcontrols clearly cited, including thereasons fortheexisting controls,
andtheconditions under which Kazakstan expects tousesuchcontrols inthefuture.
Now andinthefuture, Kazakstan should commit thatitsprice controls willbeapplied ina
WTO-consistent fashion, taking account oftheinterest ofexporting WTO Members asprovided
forinArticle III:9 oftheGATT 1994.WT/ACC/KAZ/11
Page2
Inthisregard, Kazakstan should alsoeliminate anyimport reference prices inplace andshould
commit thatsuchmeasures willnotbereintroduced after accession, except inaccordance with
WTO Agreements.
According totheresponse toquestion 3ofWT/ACC/KAZ/6/Add.2, oilpipeline tariff rates are
higher fortransport ofexported oil.GATT Article XIprovides that“other measures ”maynot
beusedtoprohibit orrestrict theexportation orsaleforexport ofanyproduct destined forthe
territory ofanother member.
Kazakstan should eliminate thisdiscriminatory pricing applicable tooildestined forexport prior
toWTO accession.
Answer:
Theexisting mark up($3.3/ton) charged forexported oildoesnotprohibit orrestrict the
exportation ofcrude oil.Thisamount isusedformaintaining andupgrading theoilpipeline. Currently
Kazakstan doesnothaveplans toeliminate suchmark up.
- Sectoral priorities
Question 3:
According totheresponse toquestion 6ofWT/ACC/KAZ/6/Add.1, licences fortheexploration,
production andexploration/production ofthesub-surface areissued onthebasis ofopen and
closed tenders.
What criteria areusedfordetermining whether theopenorclosed tender procedures willbeused?
Areforeignminingoperatorsawardedlicencesunderthesametermsandconditionsasaredomestic
mining operators. Please describe anydifferences intheterms andconditions.
Answer:
Tenders maybeopenorclosed. There arenodefined criteria foropenorclosed tender. A
tender isdeclared asopenorclosed bythelicensing body (theCabinet ofMinisters) or,pursuant to
itsinstructions, byaworking body oftheGovernment. Thepractice hasbeenthatunique andlarge
scale projects areannounced through closed tenders.
Foreignanddomesticminingoperatorsareawardedlicencesunderthesametermsandconditions.
Question 4:
According totheresponse toquestion 7ofWT/ACC/KAZ/6/Add.1, oblast executive bodies are
ultimately responsible fordeciding whether anapplication fortheissuance ofamining licence
for“commonly occurring useful mineral ”isgranted orrefused.
What minerals areconsidered tobe“commonly occurring useful minerals"? How does the
Government ofKazakstan ensure thattheoblast executive bodies provide national treatment and
most favoured nation treatment toforeign operators seeking toobtain mining licences?WT/ACC/KAZ/11
Page3
Answer:
Article 1oftheLawonSubsurface Utilization of27January 1996defines commonly occurring
useful minerals asminerals (sand, clay,rubble, etc.)which areusedintheirnatural condition orafter
significant processing andpurification, generally, tosatisfy localbusiness needs.
Article 8oftheFILensures thatanyactions taken byStateofficials which violate thelegislation
oftheRepublic ofKazakstan shallnothaveanyeffect.
(e) Competition policy
Question 5:
Initsresponse toquestion 27inWT/ACC/KAZ/6/Add.2, Kazakstan lists73companies with
“dominant market share ”defined asmore than35percentofthemarket. These firms are,for
themost part, mixed State/private enterprises, areState-owned, orarecontract management,
presumably totheState. Only twoareprivately owned.
Itwould appear thatthe“dominant ”companies arethose thathavebeenonlypartially privatized
orarejointventures withState participation. What istheState share ofthemixed firms? Which
ofthese firms have amarket share greater than50percent? Greater than75percent?
Answer:
Asstated inthereply toquestion 27ofWT/ACC/KAZ/6/Add.2, thenumber ofcompanies
with“dominant market share”changes periodically depending onmarket conditions andchanges in
market share ofcompanies inKazakstan. Currently, only41companies areclassified bytheNational
Anti-Monopoly Committee ashaving dominant position inthedomestic market. Thefollowing table
liststhese companies along withtheirownership structure andmarket share inthedomestic market.
Name ofEconomic Entity Name ofProduct
(works, services)Market
Share
(%)State
Share
(%)
A. Ferrous Metallurgy
1. JSCSary-Arkapolymetal manganese concentrate 80 0
2. JSCAtasuruda ferro-manganese ore
manganese ore100
3885
3. Sokolovsko-Sarbaiskyi Mining PA ferro-ore concentrate
ferro-ore pellets
dolomite37
100
5939.5
4. Aksu Ferro-alloy Plant (Kazchrome) ferro-alloys 98 31.62
5. JSCDonskoi Mining Combinat chromite ore 100 0
B. Non-ferrous metallurgy
6. JSCZheskazgantsvetmet
(Management contract withSamsung
GMBH)leaddust
sulfuric acid
rolled copper
cathode copper100
50
100
10035WT/ACC/KAZ/11
Page4
Name ofEconomic Entity Name ofProduct
(works, services)Market
Share
(%)State
Share
(%)
7. JSCUst-Kamenogorsk lead-zinc
Combinatzinc
lead
sulfuric acid100
100
4252.3
8. JSCAchpolymetal barite concentrate 100 90
9. JSCUst-Kamenogorsk
titanium-magnesium combinatsponge titanium
magnesium andmagnesium alloys100
10015.5
C. Gold processing industry
10. JSCKaztsink goldmining 97 53.1
D. Oilprocessing industry
11. JSCShymkentneftorgsynthes processing ofcrude oil 36 0
12. JSCAtyrau refinery plant processing ofcrude oil 40 53.1
E. Atomic industry
13. JSCUlba metallurgical plant uranium inpellets andpowder
tantalum products100
10090
F. Chemical industry
14. JSCSuper-phosphate plant (managed
byIBETRADE CORP)sulfur-coal
tri-calcium phosphate100
8459.1
15. JSCNodphos (managed byIBE
TRADE CORP)yellow phosphorous 48 51
16. JSCKaratau (managed by«IBE
TRADE CORP)phosphate rawmaterials offine
grinding
crushed phosphate materials
phosphorites100
100
10066.5
17. JSCPhosphorous orto-phosphorous acid 100 66
18. JSCInderbor borate ore 99 80
19. JSCAktubinsk plant ofchrome
compoundssulfate ofchrome
(chrome tanner)100 69
bi-chromate ofsodium 100
20. JSCAKPO polystirol andpolymers ofstirol 94 62.7
21. JSCCarbide vinegar acid100% 100 80
22. JSCKostanaichimvolokno chemical fibres 45 91.9
G. Machinery building andmetal processing
23. Makinsk plant ofpiston rings tractor piston rings
automobile piston rings100
10090
24. JSCCardanval automobile andtractor spare parts 100 0
25. JSCPavlodar machinery building
plantelectric road cranes
electric hanging cranes
electric granty cranes71
41
820
26. JSCPetropavlovsk machinery
building plant ofsmall capacity
enginessmall capacity engines 95 90
27. JSCKainar leadbatteries (accumulators) 100 0WT/ACC/KAZ/11
Page5
Name ofEconomic Entity Name ofProduct
(works, services)Market
Share
(%)State
Share
(%)
28. JSCPavlodartractor tractors
bulldozers86
10090
H. Forestry, wood processing andcellulose-paper industry
29. JSCAlbikus wood-fibre plates 72 19.4
I. Construction materials industry
30. JSCPavlodar cardboard-ruberoid
plantsoftroof 100 0
31. JSCKazogneupor refractive items 99 51
32. JSCVishnevskyi reinforce concrete
sleepers plantreinforced concrete sleepers 80 39
33. JSCKurylys materialy mineral cotton 83 0
34. JSCTeploenergooborudovanie mineral cotton plates 70 0
J. Medical industry
35. JSCProgress premixes 100 90
K. Construction ofcommunication objects
36. JSCBailanys Kurylyshy construction ofcommunication objects 94 90
L. Transport
37. Aktau Trade SeaPort passenger andcargo transportation 100 90
38. JSCAviation technical centre #405 repair ofaircraft AH-2
repair ofhelicopters MI-8T
repair ofaircraft Yak-52
repair ofhelicopters Ka-26100
100
100
10085
M. Services
39. JSCAutotransdignal construction oftraffic lights
exploitation oftraffic lights100
10031
40. Main Department of
hydrometeorologyhydro-meteo services 100 0
41. LtdTelset certification andlaboratory testing of
communication facilities100 0
Inaddition, theoblast offices oftheAnti-Monopoly Committee maintain separate listsof
companies withdominant position intheoblast orlocal market. Thegeographic market forthese
companies iswithin thegeographic boundaries oftheoblast.
Question 6:
Inaddition, seven State holding companies holdadominant position intheKazakstan market
inthefollowing products: aluminum alloy structures andarticles, cardan shafts, small cylinder
capacity engines, tractor plough, sowing machines, bulldozers, reinforced concrete pipes, lead
batteries, ore-mining andreprocessing, passenger aviation transportation, mailtransportation
andtreatment ofagricultural areas, aswellashaving interests insome ofthe73firms listed
inWT/ACC/KAZ/6/Add.2.WT/ACC/KAZ/11
Page6
Please describe ingreater detail theroleofthese holding companies inKazakstan ’seconomy
andmarket. Please name theholding companies, andindicate what portion oftheir stock isheld
bythegovernment? Arethere anyprivate stockholders inthese companies?
Answer:
AllStateholding companies havebeendissolved andmostcompanies which wereunder the
structure ofthese holding companies arecurrently being privatized.
Question 7:
What portion ofKazakstan ’sGDP isaccounted forbytheactivities ofthecompanies controlled
bythese holding companies?
Answer:
Please seethereply toquestion No.6.
Question 8:
What isKazakstan ’slongterm planforthese holding companies?
Answer:
Please seethereply toquestion No.6.
Question 9:
Kazakstan goesontostate that, “There arenoState-owned orprivate enterprises thathave
monopoly ordominant position ininternational trade and/or domestic distribution inKazakstan ”.
How can73companies and7holding companies with“dominant positions ”intheKazakstan
market andcontrol overbroad sectors oftheKazakstan economy nothavea“dominant position ”
aswellininternational trade insome products? These statements donotseem consistent.
Wereserve ourposition onKazakstan ’sstatement concerning State-trading enterprises pending
further explanations.
Answer:
Companies, which areclassified bytheNational Anti-Monopoly Committee ashaving dominant
position inthedomestic market, occupy dominant position (more than35percentmarket share) in
thedomestic market andnotininternational trade. None ofthese 41companies haveexclusive or
special rights orprivileges connected withforeign trade Onlycompanies intheferrous andnon-ferrous
metals havemore thana35percentshare withregard toexport.WT/ACC/KAZ/11
Page7
Question 10:
According totheresponse toquestion 12ofWT/ACC/KAZ/6, Kazakstan doesnotintend tonotify
itsnatural monopolies asState-trading enterprises, under GATT Article XVII orGATS
Article VIII, because theyactas“transport carriers withequal open access toallsuppliers and
operators regardless ofform andtypeofownership ”.
Answer:
Thefollowing table provides thelistofallnatural monopolies maintained bytheNational
Anti-Monopoly Committee. Inaddition, theoblast offices oftheAnti-Monopoly Committee maintain
separate listsofnatural monopolies operating within thelocalmarket. Thelocalnatural monopolies
consists ofpublic utilities, water supply, railway transportation, electric power production and
distribution, gassupply, communication services (tariffs forlocal telephone services andlease of
communication channels), andmanagement ofairnavigation. Natural monopolies areincluded on
theoblast listofnatural monopolies iftheirgeographic market islimited totheoblast orlocalmarket.
Kazakstan plans toeliminate inthenearfuture gasprocessing andpower generation fromthe
listofnatural monopolies atboththenational andlocallevels. Thecreation ofcompetition forairport
services isnotcurrently possible. Therefore, airport services wererecently added tothelistofnatural
monopolies.
Other natural monopolies provide transport services withequal openaccess toallusers. In
addition, thesenatural monopolies arenotengaged inthetradeofgoods. Forexample, theoilpipeline
companies simply transport crude oilbased oncontracts withoilproducers andtrading companies.
Theoilpipeline companies arenotthemselves engaged inthetrade ofcrude oil.Assuch, these
companies maynotbeclassified asState-trading companies. However, being natural monopolies,
these companies aremonopoly suppliers oftransport services.
Name ofNatural Monopoly Entity State
Shares
(%)
A. Transportation ofoilandgasbypipelines
1. JSCKazaknefteprovod 100
2. JSCBatystransgas 90
3. State enterprise Kostanaitransgas 90
4. JSCAlaugas 92
B. Gasprocessing (production ofliquefied gas)
5. JSCAtyrau oilrefinery 53.1
6. JSCPavlodar oilrefinery 87.9
7. JSCShymkentneftorgsynthes 0
8. State enterprise Kazak GasProcessing Plant 100
9. J-VTengizchevroil 25
C. Railway transport enterprises (cargo andpassenger transportation)
10. Republic State enterprise Kazakstan Temir Zholy 100WT/ACC/KAZ/11
Page8
Name ofNatural Monopoly Entity State
Shares
(%)
D. Communication enterprises
11. National JSCKazaktelecom(tariffs forlocal telephone services andlease of
communication channels)50
E. Power transmission
12. JSC Kazakstani electric network management company 100
13. JSCRemote electricity transmission 100
14. JSCAlmaty Power Consolidated Company 0
F. Power generation
15. Almaty Power Consolidated Company 0
16. LtdCoEnergoproject Zhambyl GRES 0
17. JSCKaraganda GRES-2 0
18. JSCEuro-Asian energy corporation 0
19. JSCAES-ST Ekibastuz 0
20. JSCEkibastuz GRES 2 100
G. Water system
21. State enterprise using channel Irtysh-Karaganda 100
22. JSCKazaknefteprovod 100
23. State enterprise Belovodskyi water pipe-line 100
H. Air-navigation entities, administration ofairtraffic
24. State enterprise Kazairnavigation 100
I. Airport services (takeoff andlanding, ensuring airsafety, parking, servicing of
passengers, maintaining andservicing aircraft intransit, andprovision ofaviation
fuel-lubricant materials)
25. JSCAkmola Airport 100
26. JSCAktau International Airport 100
27. JSCAktobe International Airport 0
28. JSCAlmaty Airport 100
29. JSCAtyrau Airport 100
30. JSCATMA -Atyrau Airport andtransportation 50
31. JSCTorgavia 100
32. JSCBalkhash cityAirport 100
33. JSCKrylia Taraza Air-company (Taraz Wings) 100
34. JSCZheskazgan AirCompany 100
35. JSCSary-Arka Airport 100
36. JSCKokshetau Air-Company 100
37. JSCKostanai Airport 100
38. JSCSyrSunkary 100
39. JSCIrtysh-Avia Air-Company 100
40. JSCPetropavlovsk airport 100
41. JSCSemeiavia 100WT/ACC/KAZ/11
Page9
Name ofNatural Monopoly Entity State
Shares
(%)
42. JSCZhetysu Air-Company 100
43. JSCAkzhol International Airport 100
44. JSCVostokavia 100
45. JSCShymkent Airport 100
Question 11:
Does thelabel “natural monopoly ”indicate anyrestraints onmarket entry byother firms?
Will foreign-funded enterprises beable toinvest insectors dominated by“natural ”
monopolies, e.g.,intelecommunications?
Answer:
Thelabel “natural monopoly ”doesnotindicate anyrestraints onmarket entry byother
firms. Foreign-funded enterprises areabletoinvest insectors dominated by“natural ”monopolies
including telecommunications.
Question 12:
Please identify theenterprises thatarenatural monopolies intheoilandoilproducts pipelines
andgaspipelines industries.
Answer:
Thenatural monopolies intheoilandoilproducts pipeline andgaspipeline industries, listed
bytheNational Anti-Monopoly Committee, arethefollowing:
- JSCKazaknefteprovod;
- JSCBatystransgas;
- State enterprise Kostanaitransgas; and,
- JSCAlaugas.
Thenatural monopolies intheoilandoilproducts pipeline andgaspipeline industries, listed
bytheOblast offices oftheAnti-Monopoly Committee, arethefollowing:
- JSCAktobetransgas;
- JSCAktobeoblgas;
- State enterprise Kustanaytransgas; and,
- Petropavlovsk OilProduct Pipeline Department ofProduction Association ofOilPipelines of
Kazakstan andCentral Asia.
Question 13:
Forthose enterprises engaged intheoilandgaspipelines industries, please describe theprocedures
followed forallowing access totheoilpipelines. What criteria dothese enterprises consider in
allocating access tothepipelines? Please describe anyforms ofguidance provided bythe
Government ofKazakstan withrespect totheallocation ofaccess tothepipelines.WT/ACC/KAZ/11
Page10
Answer:
Currently, there isonlyonepipeline (Atyrau-Kazakstan toSamara-Russia) fortheexport of
crude oil.Theamount ofavailable quota forexport ofcrude oilfrom Kazakstan isdetermined on
anannual basis between Russia andKazakstan through anintergovernmental agreement.
Onaquarterly basis, oilexporters should apply foravailable quota attheMinistry ofEnergy.
Quota isprovided bytheMinistry ofEnergy afteragreement oftheMinistry ofEconomy. Available
quotas areallocated bytheMinistry ofEnergy toexporters ofcrude oilfromKazakstan proportionally
totheirproduction. Ifacompany decides toincrease itsproduction, itshould apply foradditional
quotas. Once quotas aregranted bytheMinistry ofEnergy, theoilexporter mustsignacontract with
Kaznefteprovod (company operating theexport pipeline) forexporting oil.
Nopreferences aregranted todomestic orCISentities inawarding theoilexport quotas. The
tariff ratesforexport ofcrude oilarethesame forallexporters.
Theother oilpipelines inKazakstan have open access andarenotusedatfullcapacity.
Therefore, thereisnoquota system inplace forthesepipelines. Users ofsuchpipelines signcontracts
directly withthecompany operating thepipeline. Thesame applies forgaspipelines.
Question 14:
Dothenatural monopoly enterprises engaged intheoilindustry haveamonopoly ontheexploration
andproduction ofoilinKazakstan? Dotheyhave amonopoly ontheexportation ofcrude or
refined oil?Dotheyprovide oilandrelated products toalldomestic consumers atthesame rates?
Arepreferential prices foroilandrelated products available todomestic industries engaged in
import substitution orexport production? Dotheoilmonopolies provide oilandrelated products
todomestic industries atpreferential rates foruseasfeedstock? Please provide atranslated copy
ofthecurrent price schedule foroilandother products soldbyeachnatural monopoly.
Answer:
Natural monopolies enterprises intheoilindustry (refer toreply toquestion 12above):
- arenotengaged intheexploration orproduction ofoil;
- donotexport oilthemselves;
- donottradeinoilandoilrelated products anddonotsellsuchproducts todomestic consumers;
and,
- provide transport services forcompanies exporting oilonacontract basis.
Norefined oilisexported from Kazakstan viapipeline.
Question 15:
Concerning telecommunications services (domestic andinternational communication services,
telegraph communication services, cable radio installation, receiving/transmitting television and
radio programmes viasatellite, datatransmission through communication channels):WT/ACC/KAZ/11
Page11
Why arethese services considered a"natural monopoly"? IsKazakstan prepared tomake
commitments initsGATS Schedule inthebasic telecommunications sector andvalue-added
networks?
Answer:
Onlythefollowing communication services arecurrently considered natural monopolies: local
telephone services andleaseofcommunication channels. Currently, thereisnotsufficient competition
inthedelivery ofsuchservices. Please notethatthere arenoregulatory barriers toenter thissector.
Kazakstan ’scommitments inthebasic telecommunications sector andvalue-added networks
willbeprovided initsGATS Schedule (offer onservices).
Broad commitments formarket access andnational treatment forforeign service providers of
basic andvalue-added telecommunications networks services willhelpfoster competition inthese
sectors andassist Kazakstan indeveloping anefficient andcompetitive telecommunications sector.
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
1. Powers oftheExecutive, Legislative andJudicial Branches ofGovernment
(b) Powers oftheLegislature
Question 16:
Reply toquestion 14inWT/ACC/KAZ/6 states thatinternational agreements are“selfexecuting ”.
Does thismean thatcustoms andother administrative authorities inKazakstan willapply the
WTO aslawafteraccession, inthesame waythatlawsandregulations areapplied, without need
tofurther recourse tothecourts seeking enforcement? Ifso,howwillcustoms andother authorities
beinformed ofthenewprovisions?
Answer:
Customs andother administrative authorities havetheauthority toapply theWTO Agreements
aslawprovided thattheAgreements areappropriately ratified inaccordance withtheConstitution of
theRepublic ofKazakstan. Allinternational agreements which theRepublic ofKazakstan signs and
ratifies arepublicly available.
Question 17:
How doesKazakstan intend toaddress itsneeds tocreate newinstitutions toimplement parts
oftheWTO Agreements, e.g.,inSPS? When doesKazakstan intend tobegin taking steps to
address aspects oftheSPSandother WTO Agreements thatarenotcurrently ineffect in
Kazakstan?WT/ACC/KAZ/11
Page12
Answer:
Thefollowing table summarizes thestatus ofestablishing institutions toimplement parts of
theWTO Agreements.
Agreement Institution Status
GATT 1994 Judicial, arbitral, oradministrative tribunals
orprocedures fortheprompt review and
correction ofadministrative action relating
tocustoms mattersJudicial andadministrative
procedures related to
administrative actions are
established according to
existing legislation (e.g. the
administrative code, the
criminal code, andthe
Constitution). Please note
alsothatsuch procedures
alsoexist indrafts ofnew
administrative code and
criminal code.
Agreement onTechnical
Barriers toTrade(a) Central government standardizing
body
(b) Inquiry point(a) Established.
GosStandard was
established in1991.
(b) Established at
GosStandard.
Currently being
reviewed toensure
fullconformity
withtheWTO
Agreement onthe
Application ofSanitary and
Phytosanitary MeasuresInquiry point Established atGosStandard.
Currently being reviewed to
ensure fullconformity with
theWTO.
Agreement onthe
Implementation ofArticle
VI(Anti-Dumping
Agreement)(a) Investigating Authority
(b) Judicial, arbitral, oradministrative
tribunals orprocedures forprompt
reviews ofadministrative actions
relating tofinal determinations and
review ofdeterminations.(a)and(b)Will be
established after the
enactment oftheLawon
Anti-Dumping Measures
(1998).
(b) Also seeitem 1
above.
Agreement onSubsidies and
Countervailing Measures(a) Investigating Authority
(b) Judicial, arbitral, oradministrative
tribunals orprocedures forprompt
review ifadministrative actions
relating tofinal determinations and
review ofdeterminations.(a)and(b)Will be
established after the
enactment oftheLawon
Countervailing Measures
(1998)
(b) Also seeitem 1
above.
Agreement onSafeguards Competent Authorities forInvestigations Will beestablished after the
enactment oftheLawon
Safeguards (1998)WT/ACC/KAZ/11
Page13
Agreement Institution Status
General Agreement on
Trade inServices(a) Inquiry Points
(b) Judicial, arbitral, oradministrative
tribunals orprocedures forthe
prompt review ofandappropriate
remedies foradministrative decision
affecting trade inservices(a) Being established.
(b) Seeitem 1above.
Agreement onTrade-Related
Aspects ofIntellectual
Property Rights(a) Civil judicial procedures concerning
theenforcement ofanyintellectual
property right covered bythe
agreement
(b) Criminal procedures andpenalties
tobeapplied inwilful trademark
counterfeiting orcopyright piracy(a) Established
(b) Will beestablished
after theenactment
ofnewCriminal
Code (1998)
Kazakstan plans toenact newlegislation andamend existing legislation inorder toconform
totheWTO Agreements. Please seethereply toquestion No.19.
(c) Powers oftheJudiciary
Question 18:
Initsresponse toquestion 28inWT/ACC/KAZ/6/Add.2, Kazakstan stated thatitisnowinthe
process ofdrafting anewCode ofAdministrative Violations which maychange thecurrent
procedures forjudicial review ofcustoms measures.
Werequest thatKazakstan briefs theWorking Party prior tothenextmeeting onwhat itintends
todoconcerning theright ofjudicial appeal.
Answer:
Currently, judicial appeals oncustoms violations maybereviewed byjudicial bodies in
accordance withtheexisting civil-procedural legislation.
Anewcodeofadministrative violations isbeing drafted. Kazakstan willprovide additional
details assoonasthenewdraftcodeisfinalized (expected inlate1997).
4. Legislative Programmes orPlans toChange theRegulatory Regime
(a) Agenda fordrafting newlaws
Question 19:
Pleaseup-datethestatusreportcontainedintheresponsetoquestion31ofWT/ACC/KAZ/6/Add.2.
Please indicate howKazakstan isgiving priority torevisions andenactment oflawsaddressing
WTO provisions initslegislative agenda.
Answer:
Since thereply totheprevious setofquestions inFebruary 1997, thefollowing lawsand
amendments tolawshavebeenenacted:WT/ACC/KAZ/11
Page14
- OnAmending theLawonForeign Investments, 16July1997;
- LawonState Procurement, 16July1997;
- LawonState Support toDirect Investment, 28February 1997;
- LawonIndividual Entrepreneurship of19June1997; and,
- LawonState Support ofSmall Business of19June1997.
Copies oftheLawonState Procurement andtheLawonStateSupport toDirect Investment
were submitted totheSecretariat asanattachment tothereplies toquestions inJuly1997. Copies
oftheother lawsareprovided inAttachment Atothisdocument.
Thefollowing draftlawsarecurrently being considered bytheParliament:
- Special PartofCriminal Code;
- Special PartofCivil Code.
Legislation relevant toKazakstan ’sforeign trade regime which arecurrently scheduled for
drafting in1997 arethefollowing:
- Criminal Procedure Code;
- OnPartnerships withLimited Liability;
- OnCustoms Authorities;
- OnAmending theLawoftheRepublic ofKazakstan onArchitecture andUrban Planning;
- OnLabour;
- Administrative Infractions Code;
- OnAdvertising;
- OnSolicitorship;
- OnAnti-Dumping;
- OnAmending thePresidential Edict Having theLawForce onState Registration ofRights
forRealEstate andRelated Transactions;
- OnLocal Representative andExecutive Bodies intheRepublic ofKazakstan;
- OnLocal Self-Government;
- OnNatural Monopolies;
- OnConcessions;
- OnState Participation inFormation andActivities ofEconomic Partnership;
- OnAmending theLegislation onPayments fortheSpecial UseofNatural Resources;
- OnJoint Stock Companies;
- OnUnfair Competition;
- OnAmendingthePresidentialEdictHavingtheLawForceonCustomsActivitiesintheRepublic
ofKazakstan (Customs Code);
- OnRegistration ofSecured Transactions withMovable Property;
- OnAmending thePresidential Edict Having theLawForce onLand;
- OnPayments andSettlements within theRepublic ofKazakstan;
- OnEcological Control;
- OnAmending theLawonStandardization andCertification;
- OnCountervailing Measures; and
- OnSafeguards Measures.
Allexisting laws(theLawonCopyright andRelated Rights; theLawonTrademarks, Service
Marks andAppellations ofOrigin; andthePatent Law)connected withtheTRIPS Agreement will
bereviewed and,ifnecessary, amended during 1998tofullycomply withTRIPS. Inaddition, KazakstanWT/ACC/KAZ/11
Page15
plans toenact thefollowing lawsin1998: LawonSelection Achievements, LawonProtection of
Integrated Circuits andLawonCommercial Secrets.
Many oftheabove listed legislation arebeing drafted oramended toaddress WTO provisions.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristics ofthenational tariff andnomenclature
Question 20:
Uniformity inthedescription andscope ofthousands ofproduct categories isessential inorder
toestablishacommonbasisuponwhichtoconducttariffnegotiations.TheInternationalConvention
ontheHarmonized Description andCoding System, drafted bytheWorld Customs Organization
andtheGeneral Rules ofInterpretation andSection andChapter Notes, contain principles to
beapplied todetermine thecorrect classification ofproducts. Kazakstan should implement
Harmonized System (HS)nomenclature thatisconsistent withtheConvention andGeneral Rules
ofInterpretation asquickly aspossible.
Weexpect thatKazakstan willnegotiate andestablish itsgoods market access schedule inthe
HS96nomenclature nowadopted byWTO Members. Wecanseenoutility inestablishing the
Kazakstani WTO schedules inanobsolete nomenclature thatwillrequire further negotiation to
convert toHS96inthefuture.
Kazakstan ’soldtariff nomenclature isbased ontheCommodity ListofForeign Economic Activity
andispatterned after theHS.Intheresponse toquestions regarding tariff nomenclature,
Kazakstan responded thatadoption oftheHSwilloccur inApril 1997. Kazakstan hasnoted that
there aresome structural andcoding differences between Kazakstan ’soldtariff nomenclature
andtheHarmonized System.
Please provide atranslated copy, inelectronic format, ofKazakstan ’stariff nomenclature used
1994tothepresent, describing indetail thedifferences withHS96.Please provide aconcordance
between HS96andthecurrent nomenclature. Thishistorical information isnecessary togather
statistics formarket access negotiations.
What isthestatus oftheimplementation oftheHS96System? Please provide statistical information
onimports andexports using theHS96System assoonaspossible.
Answer:
Since15June1997,KazakstanhasappliedHS96asitstariffnomenclature.AnEnglishlanguage
electronic version ofthecurrent tariff nomenclature isbeing prepared andwillbesubmitted tothe
Secretariat inSeptember 1997. Since thecurrent nomenclature isidentical toHS96atthesix-digit
tariff level, aconcordance between HS96andthecurrent nomenclature would notappear tobe
necessary.
Kazakstan didnotmaintain anEnglish language version ofitspriortariffnomenclature inpaper
orelectronic form. Thetariff nomenclature applied byKazakstan from1994 to15Juneofthisyear
wastheGoods Nomenclature forForeign Trade which wasbased onthe1992 Harmonized System.WT/ACC/KAZ/11
Page16
Thedifferences between HS96andKazakstan ’sprior nomenclature atthesix-digit levelwillbethose
solely thatexisted between thetwoversions oftheHarmonized System.
Statistical information provided inAnnex 1ofWT/ACC/KAZ/3 wasprovided using HS96.
Attachment Bcontains statistical information onimports andexports for1996 using HS96.
Question 21:
Question 19ofWT/ACC/KAZ/6/Add.1 asked whytheweighted-average tariff forChapter 22
(beverages, spirits andvinegar) wasaround 185percent, veryhighcompared torates applied
inother sectors. Kazakstan replied thatthepurpose ofhigh rates forChapter 22isrevenue
generation.
Please explain howKazakstan expects toraise revenue from these tariffs when beverage imports
from Russia, Belarus, Moldova, Ukraine, theKyrgyz Republic, etc.,aresubject tozerotariffs
pursuant tothecustoms union andfreetrade agreements. WedonotseehowhighMFN tariff
rates cangenerate much revenue under thehighmargin oftariff discrimination against MFN
suppliers suppresses dutiable trade andencourages imports from preferential (i.e.non-revenue
producing) suppliers.
Under these circumstances, highdomestic excise taxrates would beamuch more effective means
ofraising revenue. What consideration isKazakstan giving tomoving towards amore equitable
andmore successful revenue-raising system oftaxation andtariffs onthese products?
Because thehigh MFN tariffs arediscriminatory, theywillnotgenerate significant revenue.
Moreover, theexcise taxation system willneedtobeadjusted inorder tobring itintoconformity
with WTO requirements. Kazakstan should reconsider itsresponse toquestion 20in
WT/ACC/KAZ/6/Add.1 andincrease internal taxes andreduce theMFN tariff rates.
Answer:
Thetrade-weighted average import rateforChapter 22dropped from 185percentin1995
to83.06 percentin1996. Kazakstan willconsider increasing itsdomestic excise taxratesforalcohol
when adjusting itsexcise ratesforcompliance withthenational treatment principles oftheWTO. This
willtakeplace during 1998.
(d) Other duties andcharges, specifying anycharges forservices rendered
- Customs processing feesandother customs services
Question 22:
Concerning the0.2percentadvalorem customs processing fee:
Weseekelimination ofthefee,orcompletion oftherevised feestructure prior toaccession to
theWTO. IfKazakstan intends toretain acustoms processing feeafteraccession, itmustbealtered
tomeet WTO requirements.
Itwillrequire more thanaceiling onthecurrent customs feeratetodealwiththeissues involved
inconverting anadvalorem feetoWTO consistency. Kazakstan must ensure thattheamount
ofthefeecollected foreach entry approximate thecostoftheservice rendered, andthattheWT/ACC/KAZ/11
Page17
revenues generated bythefeesarenotusedforanyother customs activities, including processing
imports thatareexempt from thefee.
Weseekelaboration indetail prior tothenextWorking Party meeting ofthechanges Kazakstan
intends tomake tobring itsadvalorem custom processing feesintoconformity withArticle VIII
oftheGATT 1994.
Answer:
During accession totheWTO, Kazakstan willbring itscustoms processing feeintoconformity
withArticle VIIIoftheGATT 1994. TheGovernment iscurrently developing aproposal astohow
thatwilldone. Thedraftproposal willbesubmitted totheWorking Party prior tothenextWorking
Party meeting.
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
Question 23:
Please describe anyrequirements toobtain anactivity licence inconnection withtheproduction,
sale,import orexport ofanygood. Inparticular, what sortoflicence isnecessary withregard
toproduction, saleortrade ofalcoholic beverages?
Answer:
Anapplicant foralicence mustsubmit anapplication, proof ofpayment oflicence fee,copy
ofcertificate ofregistration (ifalegal entity isapplying forlicence) anddocuments demonstrating
appropriate qualification (qualification requirements). Qualification requirements varyfromonetype
oflicence toanother. Currently, most qualification requirements havenotyetbeenelaborated and
currently Statebodies, responsible forissuing licences, areintheprocess ofelaborating qualification
requirements foreachtypeoflicences.
A. Production ofAlcoholic Beverages
Thequalification requirements toproduce alcoholic products (beverages) include thefollowing:
- technological equipment andobservance oftechnological regulations ofproduction including
bottling ofalcohol products according tocurrent normative documents;
- water, steam, freezing, electricity andsewage capacities ensuring technological regulation of
production;
- scaling andmeasuring facilities;
- winestorage andspirit storage facilities;
- separate spirit reception unitinpouring department;
- storage capacities ensuring storing ofproducts, rawmaterials, packaging andauxiliary materials
according torequirement ofnormative documents;
- technological condition forproduction, bottling andstoring ofalcohol products;
- stationary communications onalltechnological stages ofproduction;
- meteorological provision forallproduction including laboratory facilities;
- control-testing equipment foraccounting ofproduction;
- production laboratory forchemical andtechnological control overproduction;
- journal ofchemical, technological andmicrobiological control ofproduction;
- qualified staffoftechnological service andlaboratory specialists;WT/ACC/KAZ/11
Page18
- control system internal regime;
- trade mark oftheentity registered inestablished order;
- apparatus-technological scheme ofproduction with explanation ofequipment, equipment
arrangement plans; and
- observance ofconditions ensuring quality ofproducts according tocurrent documents.
Inaddition tothequalification requirements, thefollowing arealsorequired:
- copyofreference from taxation body onregistering asataxpayer;
- conclusion ofsanitary, ecological andanti-fire supervision bodies;
- anactofreviewing ofqualification level ofproduction forcorrespondence torequired
requirements under production ofalcohol products. Suchactshallbeprepared byspecialists
ofGosStandard.
B. Export ofAlcoholic Beverages
Nolicence isrequired.
C. Import, Bottling, Storing, andSaleofAlcoholic beverages
Thelicensing requirements forthese activities arebeing elaborated andwillbeprovided to
theWTO assoonascompleted.
Question 24:
According totheresponse toquestion 41ofWT/ACC/KAZ/6, Kazakstan mayintroduce import
quotas incases connected with“anemergency measure according toArticle XIXoftheGATT ”.
Kazakstan should notimplement anymeasures, including import quotas, imposed asemergency
measures untilithaslegislation providing forthesubstantive andprocedural protection andother
norms inconformity withtheWTO Agreement onSafeguards.
WillKazakstan commit nottousesuchmeasures intheabsence ofWTO-consistent legislation?
Answer:
Kazakstan willundertake thiscommitment asofthedateofaccession totheWTO.
(h) Customs valuation
Question 25:
Theresponse toquestion 37ofWT/ACC/KAZ/6/Add.1 indicates thatKazakstan believes that
thevaluation provisions ofKazakstan ’sCustom Code largely conform totheWTO Agreement
onCustoms Valuation, although there aresome discrepancies andomissions. According tothe
response, Kazakstan willamend itsCustoms Code tobring itfullyintoconformity withtheWTO
Valuation Agreement in1997. Kazakstan hasprovided adetailed listofthediscrepancies and
omissions (paragraph i-x).
According totheresponse toquestion 57ofWT/ACC/KAZ/6/Add.2, Kazakstan submitted acopy
ofthevaluationprovisionsoftheCustomsCode(Articles122-133)totheSecretariat.Unfortunately,WT/ACC/KAZ/11
Page19
wehavenothadanopportunity toreview these provisions yetindetail, butwewillforward our
technical comments assoonaspossible
What isthecurrent legislative status oftheamendments totheCustoms Code thatwillremedy
thedeficiencies identified intheresponse toquestion 58ofWT/ACC/KAZ/6/Add.2? Please provide
atranslated copy ofthedraft amendments totheWorking Party forreview.
Answer:
Currently, amendments totheCustoms Code arebeing prepared toconform totheWTO
Agreements. Itisexpected thatdraftamendments willbefinalized bytheendofSeptember 1997.
Atranslated copyofthedraftamendments willbeprovided totheWorking Party forreview inearly
October 1997.
(j) Pre-shipment inspection
Question 26:
Wenote, with approval, theresponses toquestions 38-40 ofWT/ACC/KAZ/6/Add.1 and
questions60-61ofWT/ACC/KAZ/6/Add.2,whichstatethatpre-shipmentinspectionwaseliminated
on31January 1997. Weassume theelimination ofpre-shipment inspection referred tointhese
documents supersedes theresponse toquestion 45ofWT/ACC/KAZ/6, which stated that
pre-shipment inspection hadbeen temporarily suspended.
Please clarify.
Answer:
Kazakstan confirms thatpre-shipment inspection waseliminated on31January 1997.
(k) Application ofinternal taxes onimports
- Value-added tax(VAT)
Question 27:
According totheresponse toquestion 27ofWT/ACC/KAZ/6/Add.1, exemptions toVAT (and
alsoexcise taxes) include “goods originated inandimported from CIScountries ”,because the
VAT applies atsource rather thandestination. Theresponse toquestion 28,ofthesame document,
provides thatthese arrangements didnot,inpractice, contradict WTO requirements.
Does Kazakstan apply these arrangements onlytoimports from CIScountries, ordoesitapply
aswelltoimports from other WTO Member countries? Itisourunderstanding thatonlyimports
from CISStates receive thisVAT (andexcise tax)exemption.
Answer:
These arrangements applied onlytoimports from CIScountries. But,thisisnolonger the
case.WT/ACC/KAZ/11
Page20
According totheamendments totheTaxCode of31December 1996, allgoods imported from
CIScountries aresubject toVAT when imported intoKazakstan starting 1January 1997. Currently,
itisasituation ofdouble VAT taxation.
Kazakstan hassigned bilateral agreements withtheKyrgyz Republic, Ukraine, Moldova and
Azerbaijan onapplying VAT andexcise taxes atthedestination (consumption) rather thansource
(production).SimilaragreementsarecurrentlybeingnegotiatedwithUzbekistanandotherCIScountries.
Please note,however, thattheseagreements, except theagreement withtheKyrgyz Republic concerning
VAT, havenotyetbeenratified andwillcome intoforce afterratification.
Likenon-CIS countries, goods imported fromthese countries willnowbecharged VAT upon
importation totheterritory ofKazakstan andgoods exported fromKazakstan tothese countries will
besubject toVAT atzerolevel. Thesame applies forexcise duties.
Question 28:
Under these circumstances, Kazakstan ’sresponse isincorrect. Thepractice isbothpractically
andtechnically inconsistent withtheWTO, inthatitdiscriminates against onegroup ofcountries
inmatters ofdomestic taxation. Such aviolation ofGATT Article IMFN treatment (and
Article III.2, which isincorporated byreference inArticle I)cannot bejustified under GATT
Article XXIV.
Wecannot support Kazakstan ’sWTO accession while thediscrimination andlackofnational
treatment displayed initstaxsystem, anduncorrected byrecent legislation, remains inplace.
Weseekaspecific description byKazakstan prior tothenextWorking Party meeting ofhow
itintends tocorrect these deficiencies prior toitsaccession totheWTO.
Please indicate howKazakstan willamend itsVAT lawtobring itintoconformity withWTO
requirements prior toaccession. Specifically, isdraft legislation inpreparation toalter this
practice?
Answer:
Please seethereply toquestion No.27.
Question 29:
According totheMemorandum, theVAT isapplied totheduty-paid andexcise-tax paidvalue
ofimported goods. GATT Article III,paragraph 2,provides thatimported products shall not
besubject, directly orindirectly, tointernal taxes inexcess ofthose applied tolikedomestic
products.
Given thatdomestically-produced products arenotsubject tocustoms duties andoften aresubject
tolower excise taxrates, howdoesKazakstan ensure thattheVAT taxonimported goods does
notexceed thetaxondomestic goods?
Answer:
After accession totheWTO, theVAT willnotbeapplied totheduty-paid andexcise-tax paid
value ofimported goods.WT/ACC/KAZ/11
Page21
Goods imported from CIScountries arenotsubject toexcise tax.Since theVAT onimported
goods isassessed onanexcise tax-paid value, theVAT method ofassessment discriminates against
imports from non-CIS countries. Thismethod ofassessing thevalue-added taxappears toviolate
themost-favoured-nation provision ofGATT Article I.Kazakstan should commit toeliminate
theexemption from excise taxation forgoods imported from CISmember States.
- Excise taxes
Question 30:
Intheresponse toquestion 31ofWT/ACC/KAZ/6/Add.2, Kazakstan acknowledged thatitsexcise
taxregime wasnotcompatible withGATT Article III.
Kazakstan didnotmake asubstantive response, however, toquestion 32ofWT/ACC/KAZ/6,
which asked what specific steps Kazakstan wastaking tobring itsexcise taxsystem intolinewith
thenational treatment principle andwhat wastheanticipated timetable. Kazakstan should discuss
thisissue withtheWorking Party now.
Prior tothenextWorking Party meeting, Kazakstan should outline what itisprepared todo
toremedy theproblem, soWTO Members canreview theproposal.
Inaddition,theTable4.2providedintheresponsetoquestion33ofWT/ACC/KAZ/Add.2indicates
thatGovernment Resolution No.1747, of31December 1996 andResolution No.1748, of
31December 1996, extended thispractice. Wenotethattheadditional products, including all
alcohol, wine, oldlorries withacarrying capacity under 1.25tons, andfirearms arenewly subject
todiscriminatory excise taxes. Inaddition, themargin ofdiscrimination intheexcise taxrates
hasincreased forseveral products, including champagne, wine-making ingredients, cured and
non-cured furskins (except mole, rabbit, dog,deerandsheep skins), wearing apparel made of
natural furandpassenger autos.
Weareverydisappointed thatKazakstan haschosen toextend thisWTO-inconsistent practice
andifthisapproach ismaintained, itwilldelay theaccession.
Please explain whyadditional products arenowsubject todiscriminatory excise taxation andwhy
themargin ofdiscrimination hasincreased forother products.
What steps havebeentaken toeliminate theexcise taxexemption forimports from CIScountries?
How doestheGovernment ofKazakstan intend tobring itsexcise taxregime intocompliance
withGATT Article IIIprior toaccession?
Answer:
TheexactmethodologyforbringingtheexcisetaxregimeintocompliancewithGATTArticleIII
upon accession willbedefined anddiscussed withWorking Party members during thesecond half
of1998.
Please seetheresponse toquestion No.27above regarding thestepstaken toeliminate excise
taxexemption forimports from CIScountries.WT/ACC/KAZ/11
Page22
(l) Rules oforigin
Question 31:
Accordingtotheresponsetoquestion63ofWT/ACC/KAZ/6/Add.2,Kazakstan’soriginregulations
donotconform fully totheWTO Agreement onRules ofOrigin incertain specified respects.
These items include: definition ofthemethod forcalculating advalorem percentage criterion;
specification ofoperations forusewiththecriterion onmanufacturing orprocessing operations;
andtheadministrative procedures relating torules oforigin. According totheresponse to
question 42ofWT/ACC/KAZ/6/Add.1, Kazakstan willadminister itsobligations under theWTO
Agreement onRules ofOrigin bytaking measures necessary toensure thatitsrules andpractices
concerning origin ofgoods arefully incompliance withAgreement.
How doestheGovernment ofKazakstan intend toremedy eachofthespecific items identified
intheresponse toquestion 63ofWT/ACC/KAZ/6/Add.2, inorder tobring itsrules oforigin
regime intofullconformity withWTO requirements?
Answer:
TheState Customs Committee iscurrently preparing amendments totheCustoms Code to
conform theprovisions onrulesoforigin totheWTO Agreement onRules ofOrigin. Itisexpected
thatdraftamendments willbefinalized bytheendofSeptember 1997. Atranslated copyofthedraft
amendments willbeprovided totheWorking Party forreview inearly October 1997. Kazakstan
alsointends toimplement theresults oftheWCO Harmonization Programme oncecompleted.
Apoint ofclarification concerning Kazakstan ’srules oforigin isrequired. Asindicated in
theresponsetoquestion63ofWT/ACC/KAZ/6/Add.2,Kazakstan’sCustomsCodestatesthatadvalorem
share andtechnical processes might beusedasabasisfordetermining origin. However, those methods
arenotinfactapplied byKazakstan fornon-preferential trade. Rather, origin isdetermined solely
onthebasisofchange intariff classification, andtherequisite change specified bytheCustoms Code
isachange atthefour-digit heading ofKazakstan ’stariff nomenclature. Itisexpected thatKazakstan
willcontinue toapply thistariff-shift method asthesolebasis todetermine origin ofgoods for
non-preferential purposes untiltheWTO/WCO harmonisation work programme isadopted.
(m-o) Anti-dumping, countervailing dutyandsafeguard regime
Question 32:
According totheresponses toquestions 63-70 ofWT/ACC/KAZ/6/Add.2, Kazakstan iscurrently
drafting WTO-consistent lawsonanti-dumping, countervailing andsafeguard measures, which
areexpected tobesubmitted toParliament in1997.
What isthecurrent legislative status ofthese draft laws? Please provide copies ofthedraft laws
totheWorking Party forreview.
IfKazakstan isunable tocomplete theimplementation ofWTO-consistent legislation bythedate
ofaccession, does theGovernment ofKazakstan commit torefrain from imposing any
anti-dumping, countervailing orsafeguard measures, untilWTO-consistent legislation hasbeen
enacted andproperly notified totheappropriate WTO Committees?WT/ACC/KAZ/11
Page23
Answer:
Currently, thedraftLawonCountervailing Measures andthedraftLawonSafeguard Measures
arebeing finalized. AcopyoftheDraft LawonAnti-Dumping Measures hasbeensubmitted tothe
Working Party. Assoonastheother twodrafts arefinalized, theywillbesubmitted totheWorking
Party forreview.
TheGovernmentofKazakstancommitstorefrainfromimposinganyanti-dumping,countervailing
orsafeguard measures, untilWTO-consistent legislation hasbeenenacted andproperly notified tothe
appropriate WTO Committees.
2. Export Regulation
(d) Export licensing procedures
Question 33:
Please identify theproducts, HS380450 andHS380490, thatrecently became subject toexport
licensing. What istherationale forrequiring export licensing forthese products?
Answer:
Kazakstan apologizes forthistyping mistake. Theproducts areactually HS280450 (Boron;
tellurium) andHS280490 (Selenuim). Economic security istherationale forrequiring export licensing
forthese products.
Question 34:
According tothetable provided intheresponse toquestion 61ofWT/ACC/KAZ/6, theRepublic
ofKazakstan requires export licences forthereason of“economic safety ”forseveral groups
ofproducts. These product groups include: information onthesub-surface oftheregion and
fuel,energy andmineral deposits; precious natural stones anditems made thereof; precious metals,
alloys, anditems made thereof; raremetals, rare-earth metals andrawmaterials formanufacture;
electro-technical products intheform ofscraps andwaste ofnon-ferrous metals.
GATT Article XIprovides thatexport licensing maynotbeused toprohibit orrestrict the
exportation orsaleforexport ofanyproduct destined fortheterritory ofanother member.
“Economic security ”isnotajustifiable rationale ifthepurpose oftherestrictions issimply to
reduce internal prices ofinputs ortofavour therawmaterial needs ofdomestic firms.
Please describe indetail the“economic security ”reasons forrestricting export.
Answer:
Export licences areautomatic andareissued onthebasis ofMFN andnational treatment.
“Economic security ”isformonitoring theexport ofnatural resources. Thepurpose isnottoreduce
internal prices ofinputs ortofavour therawmaterial needs ofdomestic firms.WT/ACC/KAZ/11
Page24
(e) Other measures, e.g.minimum export prices, voluntary export restrictions, orderly
marketing arrangements
Question 35:
Certain products, listed inTable A9.3 oftheMemorandum, aresubject tocontract registration
atthecommodity exchanges. According totheresponse toquestion 63ofWT/ACC/KAZ/6, the
export contract isreviewed forthepurpose ofcomparing prices toaverage world market prices
ofsimilar goods. Ifprices arewaybelow average world market prices, “thentheexporter is
requested toprovide justification forsuchlowprices ”.GATT Article XIprovides that“other
measures”,includingminimumexportprices,maynotbeusedtoprohibitorrestricttheexportation
ofanyproduct destined fortheterritory ofanother member.
Wenoteintheresponse toquestion 62ofWT/ACC/KAZ/6 thatcrude oil,including gascondensate,
hasbeenremoved from thelistofproducts subject toexport contract registration. However, we
notethattwoother items, guts, bladders andstomachs ofsheep, andcotton linters, were added
tothelistofproducts subject tocontract registration. While theoverall value ofexport items
subject tocontract registration hasdecreased from 26percentto11percentwenevertheless
aredisappointed toseethatadditional items aresubject toaWTO-inconsistent measure.
Ifthecontract price isdetermined tobewaybelow world market prices, maytheKazakstan
Government authorities suspend theexportation oftheproducts until ajustification isreceived
from theexporter?
Wenoteintheresponses toquestions 75ofWT/ACC/KAZ/6 thatGovernment Resolution No.1492
of5December 1996 eliminated minimum export prices. Ifminimum export prices have been
eliminated, whyaretheauthorities stillreviewing contract prices? How willtheGovernment of
Kazakstan eliminate therequirement ofcontract registration fortheproducts prior toWTO
accession?
Answer:
Government Resolution No.994of19July1997 eliminated contract registration atthe
Commodity Exchange.
Kazakstan should beprepared atthenextWorking Party meeting todescribe thesteps itwill
taketoeliminate completely thecontract registration requirements forallproducts prior toWTO
accession.
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policies
- Agricultural subsidies
Question 36:
InKazakstan ’sAggregate Measure ofSupport (AMS) submission, thedata for1996 arenot
complete. Could Kazakstan please re-submit theAMS using data from theyears 1993-95?WT/ACC/KAZ/11
Page25
Answer:
Arevised WT/ACC/4 covering three fullyears (1994-1996) wassubmitted totheWTO
Secretariat around Mid-July 1997.
Kazakstan isclaiming thatprogrammes areexempt from reduction under thespecial and
differential treatment-development programmes category (DS:2). However, Article 15oftheWTO
Agreement onAgriculture provides special anddifferential treatment todeveloping country
members andonlyleast-developed members arenotrequired toundertake reduction commitments
atall.
WTO Members consider theprovisions ofArticle 15oftheAgreement onAgriculture aspertaining
tooriginal WTO Members, andnotautomatically applicable toacceding countries. Inthiscontext
wecannot support Kazakstan ’sclaim forexemption from support reduction commitments.
Even ifKazakstan were anoriginal WTO Member, itwould notbeexempt from reducing the
agricultural subsidy and support commitments, because theexemption only applies to
least-developed WTO Members.
WeseekKazakstan ’scooperation torevise itsinternal support programmes tobring them into
WTOconformity,andtoprovideforarapideliminationofprogrammesthatareWTO-inconsistent
orprovided foragricultural export subsidies.
Kazakstan should refrain from instituting anynewWTO-inconsistent subsidy orsupport policies
andshould prepare aschedule ofallitsWTO-consistent subsidy orsupport programmes, which
includes acomplete description ofeachsubsidy andsupport, identifies itsbenefits, theamount
ofthesubsidy orsupport, andanannual schedule forprogressive elimination.
Question 37:
Kazakstan didnotmake thedeminimus calculation under which 5percentorlessofthevalue
ofproduction isnotrequired tobereduced (10percentfordeveloping countries).
Please include thevalue ofproduction foreachcommodity listed under product-specific support,
aswellasthevalue oftotalagricultural production, sothatthiscalculation canbemade.
Answer:
Theproduction dataforalltypes ofseeds isnotcollected andmaintained. Forother
product-specific support, thedataisprovided inSupporting Table DS:6 ofrevised WT/ACC/4 dated
July1997. Thevalue oftotalagricultural production isalsoprovided inrevised WT/ACC/4 dated
July1997.
Question 38:
Thedescription ofprogrammes listed under thegreen boxsomewhat vague andgeneralized for
allreporting years under table DS:1. Forexample, some ofprogrammes listed under 2.(a)appear
tofallinstead under 2.(d)(advisory andconsulting services, forexample). Please describe inmore
detail thenature ofallprogrammes listed under thegreen boxcategory.WT/ACC/KAZ/11
Page26
Answer:
Allmeasures presented inSupporting Table DS:1 meetthecriteria ofthegreen boxsubsidies.
Allofthem aregranted totheState budget organizations andmeetthefollowing terms andcriteria:
2.(a) Thefunds, provided inthissection, weregranted totheRepublican SeedCotton Station, the
Republican Station forProtection ofPlants, theRepublican Forecasting Centre, theCentral Genetic
Fund. Allthese organizations areStatebudget organizations andtheiractivity isaimed atresearching
thedevelopment ofnewgrades ofseeds, thehighest productivity criteria aswellasadjustment to
localconditions.
2.(b) Thefunds, provided inthissection, were granted totheRepublican Veterinary Station, the
Republican Station forProtection from Animals Diseases, theDepartment forState Veterinary
Supervision andothers inorder tocarry outthefollowing kinds ofactivity:
- analysis ofphytosanitary environment, natural spreading ofpestsaswellastheissues oftheir
migration andapplication ofdifferent means forprotection ofplants andprevention offurther
migration ofpests;
- protection ofanimals from infections;
- undertaking quarantine measures andtermination oforigin ofinfection.
These measures areofgeneral character carried outbyStatebodies within Kazakstan inorder toprevent
spreading ofanimal andplantdiseases. These measures donotinclude direct payments toagricultural
producers.
2.(f) Thefunds, provided inthissection weregranted tothePublishing House “Kardzi ”under the
Ministry ofAgriculture andState Food Contractual Corporation topublish inquiry andmarketing
information.
2.(g) Thefunds, provided inthissection weregranted totheOblast Committee onWater Resources
tofinance expenditures onexploitation ofwater reservoir; exploitation ofthechannels ofinterstate
andinteroblast andinterdistrict connection andother objects, notrelated withwater supply tothe
consumers; implementation ofprotection, commissioning, adjusting, anti-sludge, andanti-flood work
connected withadministering andregulation ofwater use.Intheframework oftheabove category,
these subsidies were allocated totheState Hydrogeological andMelioration services, carrying out
supervision functions over meliorating lands. Inaddition, these measures included support for
topographical geodesic andother works, geobotanical research aswellasdevelopment offorecasts
andregional programmes foruseandsafeguarding ofland. These subsidies werenotgranted tofarmers,
donotsubsidize production costs andarenotconnected withconsumer prices.
Question 39:
Please provide amore detailed description oftheveterinary andplant protection measures that
arelisted under 2.(b). Forexample, aretheyinput subsidies ordotheyconform tothecriteria
ofparagraph 2?
Answer:
Please seethereply toquestion 38(2.(b)) above.WT/ACC/KAZ/11
Page27
Question 40:
Themeasures listed under 2.(d) donotappear tofitthetruedefinition ofextension/advisory
services. Hydrogeological melioration measures appear tobemore closely related toland
improvements (irritation ordrainage).
Please provide amore detailed description ofthisprogramme. Dothese measures cover capital
works only, oraretheyusedtosubsidize farm facilities, input costs, orusercharges? Please note
thatfunds forwater management which areusedtocover operational costs cannot beconsidered
green boxsubsidies. Please describe further themachinery testing services programme under
2.(d). andthemachinery supervision services under 2.(e), andtherationale forincluding items
asgreen boxmeasures.
Answer:
Measures listed under 2.(d)arenowlisted under 2.(g)andmeasures listed under 2.(e)arenow
listed under 2.(b)inrevised WT/ACC/4 ofJuly1997. Please seethereply toquestion 38(2.(g) and
2.(b)) above.
Question 41:
Please confirm thattheinspection services referred toin2.(e)areforcommodities, notmachinery.
Answer:
Theinspection services referred toin2.(e)arenowincluded under 2.(b)ofrevised WT/ACC/4
ofJuly1997. Please seethereply toquestion 38(2.(b)) above.
Question 42:
Please describe fullyallmeasures listed under 2.(f)andprovide fulljustification forlisting these
items under DS:1 asgreen boxmeasures. Specifically, wequestion whether theState Food
Contractual Corporation, which appears tobemore likeaState intervention orprocurement
agency, truly meets thecriteria of2.(f). Please alsoprovide amore detailed description and
clarification ofthepurpose ofKazakstan ’spublishing house infrastructure project. Lastly,
development oftheinfrastructure oftheAPK(agro-industrial complex) appear tobefairly general,
andsome ofthese expenditures mayfallunder 2.(f)or2.(g). Please beadvised thatcapital
investment projects cannot beclaimed asgreen boxitems.
Answer:
Please seethereply toquestion 38(2.(f)) above.
Question 43:
State procurement ofgrain doesnotfallunder public stockholding forfoodsecurity purposes
because purchases (anddisbursement) arenotmade onacommercial basis (market prices).
Concerning tables DS:6-DS:9, wenote that Kazakstan does notlistproduct-specific or
non-product-specific support in1994. Asweunderstand it,atthattimeKazakstan hadinplace
amixed feedsubsidy forlivestock producers, aswellasvarious crop input subsidies, such asWT/ACC/KAZ/11
Page28
fertilizer andplant protectant subsidies, fuelsubsidies, concessionary credit andother subsidy
programmes. These subsidies show upinthe1995 and1996 submissions. Unless Kazakstan can
show thatthese subsidies didnotexist in1994, itiscertainly inthecountry ’sbestinterest to
provide subsidy datafor1994.
Answer:
Subsidiesfor1995and1996,allocatedfortheproductionofcertaintypesofagriculturalproducts
suchasfertilizer, fodder andothers, shown intables DS:6-DS:9 were provided through theASF.
Before 1995, themain form ofsupport wasdirect credit.
Question 44:
Fertilizers, fuel,andplant protection areincorrectly listed inDS:6 andDS:7 asproduct-specific
support. These subsidies should belisted inDS:9 (non-product-specific support), asshould the
category “other”listed inthe1996 submission.
Answer:
These subsidies arenowlisted inDS:9 (non-product-specific support). Please seerevised
WT/ACC/4 ofJuly1997.
Question 45:
Please provide amore detailed explanation ofthemeasures types thatarelisted inthese tables.
Forexample, arethemeasures direct production subsidies orprice-related subsidies? How are
thesubsidies administered? Asanexample, weunderstand thatKazakstan ’swool subsidy is
administered through price support. Please clarify ifthisisindeed thecase. Asanother example,
itisnotentirely clear what thedifference isbetween “cattle ”and“liveanimals ”,orwhat the
programme “development ofgardening ”means forfruits.
Answer:
Thesubsidies shown inDS:6-DS:9 aregranted through theStateAgricultural Support Fund
(ASF) which wasestablished inDecember 1994. Themain goalofproviding subsidies through the
ASFistoincrease theefficiency ofagricultural activities bymeans ofstimulating entities tousenew
equipment, technology, purchasing ofpedigree cattle, useofhighgrade seeds, mineral fertilizer and
means ofplant protection. Themechanism andtheterms ofpayment ofmeans outofthisFund are
carried outinaccordance withtheOrder ofPayment ofMeans oftheASF, approved bytheRepublican
Interdepartmental Council oftheASFon25March 1996. Payments outoftheASFshallbeused
fortheproduction ofhighgrade seeds ofgrain andvegetables (parent forms ofhybrids ofcorn, sun
flower, sugar beetandpotatoes), highquality wool, astrakhan, pedigree cattle, lamb meataswellas
means ofplant protection, mixed fodder anddevelopment offarming.
According totheaforementioned order, producers ofhighgrade seeds shallprovide information
regarding saleofhighgrade seeds (amount soldlocalfarmers perton,costofproduction perton,selling
pricepertontolocalfarmers -which islower thantherealpriceforafixedamount pertonasapproved
bytheorder) totheoblast representative oftheMinistry ofAgriculture. Theoblast representative
forwards thisinformation onamonthly basistotheMain Department ofFarming Policy Development
attheMinistry ofAgriculture. ThisMain Department collects allinformation from various oblasts
andsubmits itinaggregate form tothecentral ASFoffice inAlmaty. TheASF, according totheWT/ACC/KAZ/11
Page29
information provided bytheMinistry ofAgriculture, disburses appropriate funds tooblast offices of
ASFwhich, inturn,provide appropriate funds totheproducers ofhighgrade seeds. Producers actually
obtain thedifference inamount between realprice andselling price tolocalfarmers.
Thesamesupport system applies topedigree cattle, highquality wood andastrakhan, andlamb
meat. TheMain Department ofBreeding Policy Development attheMinistry ofAgriculture is
responsible forimplementing suchsupport. Thevalue ofsubsidy forhighquality wood andastrakhan,
andlamb meatismeasured perunit(1kg). Asforpedigree cattle, itismeasured perton.
Moreover, theASFallocates resources toagricultural entities according to:(a)useoffertilizers
(50percentofvalue ofusedmineral fertilizer forcrops ofintensive typeandseeds plotsofgraincrops);
(b)means ofplant protection (40-60 percentofvalue ofusedplant protection means); (c)certain
subsidies topayforusedfuelandmixed fodder andmeasures toimprove health ofcattle; and(d)certain
subsidies foradopting newtechnology andtraining onuseofnewequipment;
Inaddition, theASFallocates funds fordevelopment ofgardening andviticulture forthepurpose
ofrehabilitation ofgardens andvineyards.
Inallcases, theallocation ofsubsidies isprovided through theoblast branches ofASFwhich
alsoperform control overear-marked allocated subsidies.
Question 46:
Please provide further clarification ofKazakstan ’sdebtrescheduling figure for1995intableDS:9.
Weunderstand that,inDecember 1994, theFund forAgricultural Financial Support wasordered
toassume 25billion Tenge inState farm debtforunpaid loans (circa US$410million, based on
the1995 average exchange rateof61Tenge/$ 1).Thisamount isUS$115million lessthanthe
amount inthesubmission. However, itisnotclear whether the25billion Tenge figure isthe
amount ofthesubsidy (orforegone revenue) orjusttheamount oftheloans. Given thelarge
proportion ofthisfigure inKazakstan ’stotalAMS submission, wewould appreciate further details
onthissupport programme.
Answer:
Table DS:9 didnotrefertoanyfigure intheamount of25billion Tenge.
Theamount ofdebtofagricultural producers reallocated totheASFwas35,992.3 million Tenge
in1995(Government Resolution No.224of3March 1995-31,530.9 million Tenge including interest
andGovernment Resolution No.1719 of14December 1995 -4,391.4 million Tenge).
In1996, Government Resolution No.651dated 28May1996 forgave theinterests accrued
onthisdebtintheamount of23,661.7 million Tenge and50percentofthemain debtintheamount
of6,130.3millionTenge.Thetotalamountofforgivendebtconstituted29,792millionTenge.Currently,
ontheASFbalance there istheliability ofagricultural producers intheamount of6,130.3 tobepaid
offin1997-98.WT/ACC/KAZ/11
Page30
- Non-agricultural subsidies
Question 47:
According totheresponse toquestion 68ofWT/ACC/KAZ/6, theamount ofprohibited subsidies
wasapproximately US$100million on1996, which constituted approximately 0.5percentof
gross domestic product. According totheresponse toquestion 84ofWT/ACC/KAZ/6/Add.2,
thesubsidies appear toconsist primarily oftheprovision ofpreferential loans, loanguarantees
anddeferral orforgiveness ofloans. Theprimary recipients ofthenon-agricultural subsidies are
companies operating inpower engineering, metallurgy, machine-building, light industry,
construction materials, mining, chemical industry andrubber-technical industry. In1996,
preferential loans were alsoextended todevelop exports andimport substitution tocompanies
operating incoalproduction andlightindustry. Preferential loans alsoprovided tohighly efficient
andhighreturn investment projects ofsmall andmedium-sized businesses oriented toimport
substitution andexport.
According totheresponse toquestion 69ofWT/ACC/KAZ/6, Kazakstan wishes toapply Article 29
oftheSubsidies andCountervailing Measures Agreement toeliminate gradually these subsidies.
Article 29oftheAgreement onSubsidies applies toMembers oftheWTO which areintheprocess
oftransformationfromacentrally-plannedintoamarket,free-enterpriseeconomy.WTOMembers
consider theprovisions ofArticle 29oftheAgreement onSubsidies andCountervailing Measures
aspertaining tooriginal WTO Members andnotautomatically applicable toacceding countries.
Inthiscontext wecannot support Kazakstan ’sclaim forautomatic recourse tothetransitional
provisions ofArticle 29.
Wewishtowork withKazakstan andother members oftheWorking Party toidentify subsidy
programmes inKazakstan and,ifthese programmes areWTO-inconsistent, discuss their rapid
elimination.
Kazakstan should refrain from instituting anynewWTO-inconsistent subsidy policies during the
accession negotiations. Inthisregard, the1996 policy ofproviding preferential loans forthe
purposes ofincreasing exports orimport substitution isclearly aprohibited subsidy andshould
berescinded.
Kazakstan should prepare adraft schedule ofallsubsidy programmes which appear tobeits
WTO-inconsistent, including acomplete description ofeachsubsidy, identification thebeneficiaries
ofthesubsidy, theamount ofthesubsidy andaschedule withannual benchmarks forprogressive
elimination.
Thisshould beprepared forcirculation toWorking Party members forreview prior tothenext
Working Party meeting, sothatthisissue canbediscussed atthattime.
Answer:
WTO-inconsistent subsidies areprovided tothefood, light, coal, machinery building and
construction materials industries. Theschedule ofprogressive elimination ofthese subsidies willbe
submitted laterfordiscussion during thefirstround ofbilateral negotiations.WT/ACC/KAZ/11
Page31
Question 48:
According totheresponse toquestion 83ofWT/ACC/KAZ/6/Add.2, theoblasts received regional
subsidies ofalmost US$300million in1996. Theoblast authorities areprovided withobjective
criteria andguidelines foradministrating theregional subsidies. Paragraph 1.1(a)(1) ofthe
Agreement onSubsidies andCountervailing Measures defines subsidy toinclude a“financial
contribution by...apublic body within theterritory ofaMember... ”.
Aretheoblasts explicitly proscribed from administering these subsidies inamanner thatis
inconsistent with theWTO Agreement onSubsidies andCountervailing Measures? Does the
Government ofKazakstan review theutilization ofthefunds bytheoblast inorder toensure
thattheyarenotadministered inaWTO-inconsistent manner?
Kazakstan ’ssubmissions totheWorking Party onsubsidies should include allprogrammes funded
and/or administered bytheoblasts andother regional authorities.
Answer:
Government Resolution No.619of22April 1997addresses thetargeted useandthemechanism
forallocation ofsubventions transferred tothebudgets ofoblasts. Theamount oftransfers, allocated
intheform ofsubventions outoftheRepublican budget tooblast budgets shallbedetermined inthe
LawonRepublicanBudgetforcorrespondingfinancialyear.Onamonthlybasis,theMinistryofFinance
transfers theamount ofsubventions toeach region withexplanations onthepurpose ofuseof
subventions. Subventions aremainly usedforsocial needs (e.g. salaries foremployees ofsocial
organizations suchasschools, hospitals; funds fordeveloping infrastructure ofsocial sphere).
TheMinistry ofFinance shallconduct supervision andanalysis overthetargeted andeffective
useofsubventions transferred tothebudgets ofoblasts. Incasefunds areallocated fornon-targeted
use,theMinistry ofFinance hastherightnottodisburse thefunds, revoke orforbid thedisbursement
intheamount ofrevealed violation.
TheMinistryofFinanceensuresthatsuchsubventionsarenotadministeredinaWTO-inconsistent
manner.
(b) Technical regulations andstandards
Question 49:
According totheMemorandum, Kazakstan isnegotiating standards agreements withChina and
Turkey.
Pleasedescribethesubstanceofthesestandardsagreements.Willtheprovisionsoftheseagreements
beapplied onamost-favoured-nation basis?
Answer:
There isaProtocol ofCooperation withtheTurkish Institute ofStandards dated 6March 1996.
AnAgreement withChina oncooperation toprovide quality andmutual inspection ofimport-export
goods wassigned on5July1996. Copies ofthese twodocuments areprovided inAttachment A.WT/ACC/KAZ/11
Page32
TheProtocol onCooperation withTurkey stipulates thefollowing: information andtechnical
exchange andexchange ofstandards documents; conducting training programmes; establishment of
testing laboratory inKazakstan; implementing apackaging project; andorganizing jointcultural and
sports events.
TheAgreement withChina stipulates mainly thefollowing: work toward mutual recognition
oftestlaboratories andcertification bodies andestablishment ofmethods ofinspection.
Kazakstan isready tonegotiate andenter intoagreement withanyWTO Member regarding
issues outlined above. Once aMember ofWTO, Kazakstan willbeready toprovide WTO Members
onamutual basis withMFN treatment inconnection withtechnical barriers totrade.
Question 50:
According totheresponse toquestion 89ofWT/ACC/KAZ/6/Add.2, theNews ofGosStandard
provides announcements forthemost important draft standards andconformity assessment
procedures. Drafts ofallstandards andconformity assessment procedures areprovided directly
tointerested parties forcomments.
DoesGosStandardhaveapublishedlistofthe“interestedparties”towhomthedraftdocumentation
isdistributed? What arethecriteria tobeeligible toreceive draft standards andconformity
assessments?
Answer:
AccordingtotherequirementsoftheStateSystemofStandardizationoftheRepublicofKazakstan
(STRK1.2-93 "SSS RK.Anorder ofdevelopment oftheStatestandards" item2.3.3.) draftstandards
andconformity assessment procedures shallbedisseminated incompulsory order to:
- thecustomer ofthedeveloped standard (e.g.ministries, producers associations);
- theenterprises introducing thestandard;
- consumers associations;
- thebodies ofState supervision, ministries andorganizations ifthedraft ofthestandard
establishes requirements related totheircompetence;
- thebodies having approved current interconnected normative documents thatshallberevised
oramended duetodevelopment ofthedraftstandard; and
- other organizations andentities upon theirrequests.
Thearenocriteria tobeeligible toreceive draftstandards andconformity assessments. Any
interested organization mayrequest andreceive draftstandards andconformity assessment procedures.
(c) Sanitary andphytosanitary measures, including measures taken withrespect toimports
Question 51:
Please describe Kazakstan ’sstatus ofimplementation oftheWTO Agreement onSanitary and
Phytosanitary Measures byproviding therelevant information intheform ofaresponse tothe
QuestionnaireonTechnicalBarrierstoTrade,e.g.,asprovidedforinAnnex5ofWT/ACC/KAZ/3.WT/ACC/KAZ/11
Page33
Answer:
Kazakstan hasinitiated areview ofitsexisting legislation todetermine thelevelofconformity
withtheSPSAgreement. Kazakstan hasalready initiated review ofitslegislation connected withsanitary
andphytosanitary issues toensure conformity withSPSAgreement. Ithasbeendetermined thatthe
current legalregime doesnotfullyconform totheWTO SPSAgreement. In1998, Kazakstan will
address these deficiencies through either amending existing legislation orenacting newones.
GosStandard isresponsible foralltypes ofstandards including sanitary andphytosanitary
standards. Therefore, information onlawsandprocedures provided inAnnex 5ofWT/ACC/KAZ/3
applies tobothtechnical barriers totradeandsanitary andphytosanitary measures. NotethattheLaw
OnProtection oftheHealth ofPopulation dated 10January 1992 became invalid andwasreplaced
byanewlawwiththesame titledated 19May1997. Please findacopyofthislawinAttachment A.
Newly developed andrevised standards containing sanitary andphytosanitary norms andrules
shallcorrespond tointernational norms andrules andshallbeagreed upon, where applicable, with
theMinistry ofHealth andtheMinistry ofEcology prior totheiradoption byGosStandard.
Question 52:
Intheresponse toquestion 94ofWT/ACC/KAZ/6/Add.2, Kazakstan indicates thatitanticipates
difficulties inimplementing fullytheSPSAgreement upon accession andwillneedanadjustment
period tobring domestic rules andsanitary hygiene norms inlinewithinternational standards.
Please specifically identify those domestic rules andnorms thatcurrently arenotinconformity
withinternational standards. Foreachitem, please explain whyanadjustment period isrequired
tobring theSPSrules intoconformity withtheWTO SPSAgreement andintocompliance with
OIE, IPPC, andCODEX standards, andanestimate oftheamount ofadditional timethatwill
berequired. Please describe theconstraints (i.e., legislative, budgetary, orother) thatprevent
theGovernment ofKazakstan from bringing theSPSregime intofullcompliance withWTO
obligations asofthedateofaccession.
Answer:
Kazakstan hasalready initiated areview ofitslegislation connected with sanitary and
phytosanitary issues toensure conformity withSPSAgreement. Ithasbeendetermined thatthecurrent
legalregime doesnotfullyconform totheWTO SPSAgreement.
In1998, Kazakstan willaddress thesedeficiencies through either amending existing legislation
orenacting newones.
Kazakstan willcomply upon accession withallprocedural andtransparency requirements
connected withtheSPSAgreement.
Question 53:
According totheMemorandum, SPSStandards aredeveloped bytechnical committees, including
theMinistry ofHealth andProtection, whose concurrence ontheadoption ofeachstandard is
mandatory.WT/ACC/KAZ/11
Page34
Areforeign persons eligible toparticipate inandcomment onthedevelopment ofSPSstandards?
Isthere amechanism toensure thatallcomments ontheSPSstandards receive responses from
thetechnical committees?
Answer:
There arenorestrictions onforeign participation inthedevelopment ofstandards (e.g.
participationintechnicalcommitteesmeetings,providingcomments)includingsanitaryandphytosanitary
standards.
According toSTRK1.2.-93 "SSS. Order ofdevelopment oftheStatestandards", item2.4.6
astandard shallbesubmitted forapproval together withsummary ofthesubmitted comments onthe
draftstandards toGosStandard.
(d) Trade-related investment measures
Question 54:
According totheresponse toquestion 46WT/ACC/KAZ/6, theLaw onOilandtheLaw on
Subsurface Utilization require investors togivepreferences toKazakstan goods andequipment,
iftheyarecompetitive interms ofecological andtechnological characteristics, price, operating
parameters, andsupply conditions. GATT Article XIprovides thatnoMember mayuse“other
measures ”toprohibit orrestrict theimportation ofanyproduct oftheterritory ofanyother
Member. GATT Article IIIprovides that“theproducts oftheterritory ofanycontracting party
imported intotheterritory ofanyother contracting party shall beaccorded treatment noless
favourable thanaccorded tolikeproducts ofnational origin inrespect ofalllaws, regulations
andrequirements affecting their internal sale, offering forsale, purchases, transportation,
distribution oruse”.
Kazakstan hasacknowledged thatthepreferences forlocal products initsLawonOilandthe
LawonSubsurface Utilization arenotconsistent withthenational treatment provisions ofGATT
Article III:4 andparagraph 1(c)oftheAnnex totheTRIMs Agreement.
How does Kazakstan intend toamend these laws tobring them intoconformity with GATT
Articles IIIandXI?
Answer:
In1998, Kazakstan willamend theLawonOilandtheLawonSubsurface Utilization tobring
themintoconformity withGATT Articles IIIandXIbyeliminating fromthese twolawspreferences
toKazakstan products andequipment.
Prior tothenextWorking Party meeting, Kazakstan should describe thespecific steps itwilltake
tobring itsLawonOilandLawonSubsurface Utilization intoconformity withWTO requirements
asofthedateofaccession. Ifalonger timeframe envisaged, Kazakstan should specify theinterim
measures itwilltaketoimprove thesituation prior tofullelimination.
Kazakstan maynotapply thetransition provisions provided byArticle 4oftheTRIMs Agreement
because Kazakstan isnotanoriginal Member oftheWTO. Kazakstan must fully describe its
measures totheWorking Party andjustify itsposition thatatransition period should beallowed.WT/ACC/KAZ/11
Page35
(f-g) Freezones andfreeeconomic zones
Question 55:
According totheresponse toquestion 98ofWT/ACC/KAZ/6/Add.2, aDecree ofthePresident
onspecial economic zones provides fortheestablishment ofspecial economic zones inorder to
accelerate economic development andintegration intotheworld economy ofcertain regions of
thecountry. Thisshould beachieved, inter alia,through thecreation ofhighly efficient export
oriented production, theattraction ofinvestments, andintroduction ofmodern management
methods andsocial norms. Current legislation does notimpose export requirements. Special
economic zones maybeabolished prematurely iftheydonotachieve thepurpose forwhich they
were established.
How willthespecial economic zones specifically stimulate “thedevelopment ofhighly efficient
export production ”intheabsence ofprovisions inthelawthatencourage exports? What means
willKazakstan usetoensure thatthezones “achieve thepurpose forwhich theywereestablished ”.
Answer:
TheLawOnSpecialEconomicZonesandotherlegislativeactsdonotprovidespecialpreferences
forstimulation ofexport oriented production infreeeconomic zones. Attracting investment, modern
technology, andknow-how tothesezones willbetheprimary means forensuring thatthezones “achieve
thepurpose forwhich theywere established ”.
Question 56:
Does theGovernment ofKazakstan intend touseitsdiscretion toterminate, bydecree, special
economic zones, asameans toimpose informally export performance orimport substitution as
conditions forcontinued activity within thespecial economic zones?
Answer:
TheGovernment ofKazakstan doesnotintend touseitsdiscretion toterminate, bydecree,
special economic zones, asameans toimpose informally export performance orimport substitution
asconditions forcontinued activity within thespecial economic zones.
Totheextent thataccess tothefavourable terms ofproduction andtrade inthefreezones,
economic zones orspecial economic zones relates toexport performance, themeasures may
constitute prohibited subsidies andconflict withtheprovisions oftheAgreement onSubsidies
andCountervailing Measures.
(j) Government-mandated counter-trade andbarter
Question 57:
Isapproval from theGovernment ofKazakstan required toengage incounter-trade andbarter
transactions? What criteria doestheGovernment ofKazakstan consider indetermining whether
ornottoapprove these transactions?WT/ACC/KAZ/11
Page36
Answer:
Theapproval oftheGovernment ofKazakstan isnotrequired toengage incounter-trade and
barter transactions.
Question 58:
Areproducts imported through counter-trade andbarter transactions subject tothesame tariffs
andnon-tariffs measures asarelikeproducts imported through normal channels? Howdoesthe
GovernmentofKazakstanvalueforcustomspurposesimportsofproductsreceivedincounter-trade
andbarter transactions?
Answer:
Where barter trade ispermitted, suchproducts aresubject tothesame tariff andnon-tariff
measures aslikeproducts imported through normal channels. Kazakstan applies thesameWTO customs
valuation-based system forsuchtransactions asisapplied togoods imported through normal channels;
thatis,ifatransaction value oftheimported merchandise cannot bedetermined, thenthegoods are
valued onthebasisofoneoftheother valuation methods provided under theWTO value code, applied
insequential order.
(l) Government procurement practices
Question 59:
What isthestatus ofthedrafting ofthegovernment procurement law?Please provide atranslated
copy ofthedraft text,when available, forreview bytheWorking Party.
Weseekacommitment from Kazakstan thatitwilladhere totheWTO Agreement onGovernment
Procurement atthetimeofaccession.
Answer:
Kazakstan plans tojointheGPA afteraccession totheWTO.
Question 60:
According totheresponse toquestion 103ofWT/ACC/KAZ/6, theGovernment ofKazakstan,
pursuant toResolution No.586,provides aprice preference of20percenttodomestic suppliers
ofgoods andservices ingovernment procurement.
Does theGovernment ofKazakstan intend toremove thisprice preference ingovernment
procurement?
Answer:
TheLawonStateProcurementwasenactedon16July1997.Kazakstanisawarethatpreferential
margins arenotcompatible withtheprovisions onnational treatment intheGPA. Thenewlawdoes
notprovide preferential margins assuch. Article 16(5)(3) does, however, allow procuring entities
totakeintoaccount the,“impact oftheeconomic situation oftheRepublic ofKazakstan orseparate
region oftheRepublic ofKazakstan including: stateofbalance andcurrency reserves oftheRepublicWT/ACC/KAZ/11
Page37
ofKazakstan; share ofuseofrawmaterials aswellasproduction andlabour resources oftheRepublic
ofKazakstan; opportunities foreconomic growth, including investments intheeconomy oftheRepublic
ofKazakstan; small business support; creation ofnewworking places; training ofmanagement, scientific
andproduction personnel oftheRepublic ofKazakstan ”.Indetermining the“most profitable bid”
forpurposes ofawarding atender.
Question 61:
Theresponse toquestion 90ofWT/ACC/KAZ/6 states thatinformation ontheoverall value of
public sector purchasing inKazakstan isnotavailable.
Itdoesnotseem possible thattheGovernment ofKazakstan doesnotknow howmuch itspent
during arecent representative period purchasing goods andservices. Could Kazakstan make an
effort toprovide agood estimate ofitspurchases?
Answer:
Theoverall value ofpublic sector purchasing in1996 isestimated tobearound 20percent
ofGDP andthe1997 estimates arearound 16percentofGDP.
4. Policies Affecting Foreign Trade inAgricultural Products
(Note: thequestions ondomestic support andexport subsidies arefound inparagraph IV.3.(a).)
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(d) Application ofnational andMFN treatment toforeign nationals
Question 62:
According totheresponse toquestion 116ofWT/ACC/KAZ/6/Add.2, nationals oftheRussian
Federation donotneed toengage theservices ofapatent ortrademark agent (trustee) inorder
tosubmit applications tothePatent Office. Additionally, thepatent feesforRussian nationals
maybepaidinRussian Rubles orKyrgyz Som, pursuant totheschedule applicable toKazakstan
nationals.
How doesKazakstan intend tobring itsrules forsubmitting patent applications andregistering
trademarks anditsfeestructure, intoconformity withWTO most-favoured-nation requirements?
Answer:
Inaccordance withArticle 4A(2) oftheParis Convention fortheProtection ofIndustrial
Property, “anysubmission ofanapplication thatisequivalent toaregular national filing under the
domestic lawofanycountry oftheUnion orunder abilateral ormultilateral treaty concluded between
countries oftheUnion shallberecognized asgiving risetoapriority ”.Article 4(d)oftheWTO TRIPS
Agreement, moreover, allows Members toexempt fromMFN treatment, “...anyadvantage, favour
privilege orimmunity accorded byaMember deriving from international agreements related tothe
protection ofintellectual property which entered intoforce prior totheentry intoforce oftheWTO
Agreement... ”.Given thefactthatthebilateral agreement between theRussian Federation andtheWT/ACC/KAZ/11
Page38
RepublicofKazakstanenteredintoforceinFebruary1994,advantages,favours,privilegesorimmunities
setforth therein areexempted from MFN treatment.
(e) Feesandtaxes
Question 63:
According totheresponse toquestion 118ofWT/ACC/KAZ/6/Add.2, Kazakstan doesnotapply
national treatment intheamount ofthefeescharged inconnection withfeescharged tosubmit
patent applications, register trademarks, conduct patent, andtrademark searches, review denials
oftrademark orpatent applications, issue preliminary patents andtrademarks andfor
miscellaneous items. These feesarelisted inAnnex 10ofWT/ACC/KAZ/3.
Kazakstan should prepare, prior tothenextWorking Party meeting, aplanfortheelimination
ofthediscrimination inthese intellectual property fees.
Answer:
TheRepublic ofKazakstan plans tophase-out theexisting discrepancies inpayments overa
transitionalperiodtobedeterminedinconnectionwithKazakstan’sWTOaccessionnegotiations.Certain
preferences maybeobtained, however, forapplicants from those countries where theAnnual GDP
percapita islessthanUS$3,000 (according toUnited Nations classifications)
2. Substantive Standards ofProtection, Including Procedures FortheAcquisition and
Maintenance ofIntellectual Property Rights
(g) Layout designs ofintegrated circuits
Question 64:
According totheresponse toquestion 132ofWT/ACC/KAZ/6/Add.2, Kazakstan acknowledges
thatitdoesnotprovide patent protection tolayout designs ofintegrated circuits, asrequired
byArticle 27.1oftheWTO TRIPS Agreement. However, Kazakstan stated thatthisprotection
shall beprovided bytheSpecial PartoftheCivil Code (Part II)andaLawontheProtection
ofLayout Designs.
Have thelegal provisions forprotection oflayout designs ofintegrated circuits been drafted?
Please provide atranslated copy ofthisdraft legislation totheWTO Secretariat forreview by
theWorking Party, assoonasitisavailable.
Answer:
ADraft “Regulation ontheLegal Protection andSecurity ofTopologies ofIntegral
Micro-schemes ”iscurrently being prepared. AnEnglish translation oftheaforementioned draft
regulations willbeforwarded totheWTO Secretariat assoonithasbeenofficially approved.WT/ACC/KAZ/11
Page39
4. Enforcement
(c) Administrative procedures andremedies
Question 65:
There appears tohavebeenanomission withrespect totheresponse toquestion 146oftheEnglish
language version ofWT/ACC/KAZ/6/Add.2. Please describe anyadministrative actions available
totheowners ofintellectual property rights toenforce those rights andidentify theagencies
responsible forsuchactions. How would foreign parties invoke suchactions?
Answer:
1. Anapplicant hastherighttoapply withobjections totheBoard ofAppeal ofthePatent Office
(Articles 22and29ofthePatent LawandArticle 12oftheLawonTrademarks):
- onadecision onrefusal toissuethesecurity documents oninventions, industrial samples and
useful models aswellasdecisions onrefusal toregister trade, service marks andnames of
places oforigin ofaproduct;
- against theissue ofsecurity documents onobjects ofindustrial property aswellasagainst
registration oftrade, service marks andnames ofplaces oforigin ofaproduct.
Iftheapplicant remains unsatisfied withthedecision oftheBoard ofAppeal, theapplicant hasthe
righttofurther appeal thatdecision tothecourts.
2. TheCode ofAdministrative Violations oftheRepublic ofKazakstan stipulates administrative
measures which stop:
- illegal useofatrademark orsimilar signforthehomogeneous goods, andalsoplaces oforigin
ofaproduct (Articles 170-2);
- sales, rentandotherillegal useofcopies ofmasterpieces orphonograms incommercial purposes
(Articles 170-3);
- refusal ingiving necessary information onprofits/income andalsosubmission ofwrong data
onprofits/income received duetotheuseofauthor 'srights (Articles 170-4).
Facts ofviolation areconsidered bytheAdministrative Commissions oflocalauthorities andincase
ofrealviolation, theguilty party isimposed withapenalty.
Violations concerning therights toother objects ofindustrial property areconsidered within the
framework oftheCivil Legislation.
(d) Special border measures
Question 66:
Accordingtotheresponsetoquestion147ofWT/ACC/KAZ/6/Add.2,theGovernmentofKazakstan
hasinstructed theCustoms Committee toprepare appropriate amendments totheCustoms Code
toprovide forspecial border measures toprevent theimportation ofcounterfeit trademarks and
pirated copyright works.
What isthestatus ofthedrafting ofthese legislative provisions? Please provide atranslated copy
ofthedraft amendments totheWTO Secretariat forreview bytheWorking Party.WT/ACC/KAZ/11
Page40
Answer:
Amendments totheCustoms Code arecurrently being developed bytheState Customs
Committee. Among theamendments considered arethose thatwould provide aprocedure inaccordance
withtheTRIPS Agreement forcustoms ’detention ofgoods suspected bearing counterfeit trademarks
orofbeing pirated copies. Itisexpected thatdraft amendments willbefinalized bytheendof
September 1997. Acopyofthesedraftamendments willbesubmitted totheworking party forreview
inearly October 1997.
(e) Criminal procedures
Question 67:
According totheresponse toquestion 148ofWT/ACC/KAZ/6/Add.2, there doesnotappear to
beacriminalpenaltyforcounterfeittrademarkedgoods.Thecriminalpenaltyforpiratedcopyright
works andrelated rights items shallbeimprisonment foraterm offrom onetothree years, with
confiscation ofcounterfeit copies, aswellasmaterials andequipment forreproduction, orafine
intheamount from fivetoonethousand fivehundred minimum wages.
According totheresponse toquestion 132ofWT/ACC/KAZ/6, theAdministrative Code provides
afineinanamount ofuptothree minimum wages, andupon officials inanamount ofupto
fiveminimum wages, forcounterfeit trademark goods. However, theamount ofthispenalty is
clearly insufficient toserve asaneffective deterrent. How doesKazakstan intend toprovide
criminal penalties toprevent trade incounterfeit trademarked goods prior toWTO accession?
Answer:
Criminal Penalties toprevent tradeincounterfeit trademarked goods areprovided inArticle 199
oftheDraft Criminal Code (Special Part) asfollows:
Article 199. Illegal UseoftheTrade Mark
Theillegal useofsomebody else’strade mark, service mark, trade name, name oforigin of
thegoods orthesimilar goods andservices ifthisdeediscommitted more thanonceorcaused serious
damage,
- shallbepunished byapenalty ataratefromtwohundred tofivehundred monthly evaluation
indices oratarateofthewage oranyother income oftheconvinced person fortheperiod
fromtwotofivemonths orbydirection topublic works fortheperiod fromonehundred and
eighty totwohundred andforty hours orbythearrest fortheperiod uptosixmonths orby
corrective labour fortheperiod uptotwoyears.
Illegal useofthewarning marking inrelation tothetrade mark orthename oforigin ofthe
goods notregistered intheRepublic ofKazakstan ifthisdeediscommitted more thanonceorcaused
theserious damage,
- shallbepunished withapenalty ataratefromonehundred totwohundred corrective monthly
evaluation indices oratarateofthewage oranyother income oftheconvicted person for
theperiod uptotwomonths orbydirection topublic works fortheperiod fromonehundred
andtwenty toonehundred andeighty hours orbythearrest fortheperiod uptothree months
orbylabour fortheperiod uptooneyear.WT/ACC/KAZ/11
Page41
Question 68:
What isthevalue, inUnited States 'dollars, offivehundred minimum wages? Istheamount of
thisfinesufficiently large toserve asaneffective deterrent against copyright piracy?
Answer:
Violators ofcopyright andrelated rights maybefined anamount ranging from500Monthly
Evaluation Index (US$ 3,766) to1,500 Monthly Evaluation Index (US$ 11,300). Please see
WT/ACC/KAZ/6 fordefinition ofMonthly Evaluation Index.
Thegovernment expects thattheestablished fineswillprove tobeeffective deterrents against
infringement. Notethatsuchamount issignificant intheRepublic ofKazakstan. However, ifexperience
proves thattheestablished finesarenoteffective deterrents, fineswillberaised accordingly.
VI. TRADE-RELATED SERVICES REGIME
1. General
Question 69:
Weappreciate thedescription oftheservices regime provided intheForeign Trade Memorandum.
However, since thesubmission oftheMemorandum, theSecretariat issued atechnical note,
WT/ACC/5, which provides astandard format forthecomprehensive description ofservices
information.
Weregret anyinconvenience caused byasking foraresubmission ofservices information, but
thesubmission oftheresponse toWT/ACC/5 would greatly simplify andexpedite theWorking
Party review oftheservices regime. Please submit aresponse inthenewformat.
Answer:
WT/ACC/5 willbesubmitted along withtheoffer onservices bytheendofJuly1997.
3. Market Access andNational Treatment
Question 70:
Does Kazakstan contemplate taking anyMFN exemptions inanysector initsGATS schedule?
Answer:
Theanswer tothisquestion willbeprovided aspartoftheoffer onservices bytheendof
July1997.WT/ACC/KAZ/11
Page42
VII. INSTITUTIONAL BASIS FORTRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
1. Bilateral, Plurilateral andMultilateral Agreements Relating toForeign Trade inGoods
andTrade inServices
(b) Plurilateral agreements relating toforeign trade ingoods andservices
Question 71:
Weseekacommitment from Kazakstan thatitwilladhere totheWTO Agreement onTrade in
Civil Aircraft atthetimeofaccession.
Answer:
Presently, Kazakstan doesnotintend tojointheWTO Agreement onTrade inCivil Aircraft
atthetimeofaccession.
2. Economic Integration, Customs Union andFreeTrade Area Agreements
(c) Freetrade areaagreements
Question 72:
GATT Article XXIV requires freetrade areaagreements toeliminate duties andother regulations
ofcommerce onsubstantially alltrade between theconstituent territories inproducts originating
insuchterritories.
What isthestatus ofKazakstan ’smembership withtheKyrgyz Republic andRussia infreetrade
agreements? What isthecoverage ofthese agreements, anddotheycover products subject to
export licences ortaxes?
Please listanyproducts exemptions from elimination of“substantially all”duties andregulations
ofcommerce product inthese agreements.
What isthetotalvalue ofexports covered bythefreetrade agreements withtheKyrgyz Republic
andRussia, andwhat portion ofKazakstan ’strade isaccounted forbythese agreements?
Answer:
According totheCustoms Union Agreement, Kazakstan hasfreetrade withRussia without
anyexceptions. Thisagreement covers allproducts including products subject toexport licence and
taxes. Thetotalvalue ofexport covered byfreetrade withRussia is100percent.
Thefreetrade agreement between Kazakstan andtheKyrgyz Republic of22June1995 has
beenratified. There arenoexemptions from freetrade withtheKyrgyz Republic. Thetotalvalue
ofexport covered byfreetrade withtheKyrgyz Republic isalso100percent.WT/ACC/KAZ/11
Page43
Thefollowing tableprovides thetotalvalue ofexports covered bythefreetrade agreements
withtheKyrgyz Republic andRussia andtheportion ofKazakstan ’strade accounted forbythese
agreements for1995 and1996.
1995 1996
Export, th.US$ %oftotalexport Export, th.US$ %oftotalexport
Russia 2,102,631.2 42.3 2,771,038.9 44.5
Kyrgyz Republic 73,274.4 1.53 112,632.8 1.8WT/ACC/KAZ/11
Page44
ATTACHMENT A
Laws andLegislative Acts
Thefollowing lawsareavailable intheSecretariat (Accessions Division, Room 1126) for
consultation:
- LawoftheRepublic ofKazakstan OnState Support ofSmall Business;
- LawoftheRepublic ofKazakstan OnIntroduction ofChanges andAmendments totheLaw
oftheRepublic ofKazakstan OnForeign Investments;
- LawoftheRepublic ofKazakstan OnIndividual Entrepreneurship;
- Protocol onTechnical Cooperation Between theInstitute ofStandards oftheRepublic ofTurkey
andCommittee onStandardization, Metrology andCertification oftheRepublic ofKazakstan;
- Decree No.2235 OfthePresident oftheRepublic ofKazakstan Having theForce ofaLaw
OnTaxes andOther Obligatory Payments totheBudget.WT/ACC/KAZ/11
Page45
ATTACHMENT B
Foreign Trade Statistics*
(i) Foreign trade(aggregates atthetwo-digit HSlevel) onthebasisofcargo customs declarations
Table B.1-Foreign Trade (invalue andpercentage) in1996
HS Chapter Export
(thousands
US$)Import
(thousands
US$)%of
total
export%of
total
import
01 Live animals 3478.3 294.0 0.06 0.01
02 Meat andedible meat offal 43684.3 23726.1 0.70 0.56
03 Fishandcrustaceans, molluscs andother
aquatic invertebrates14424.5 8413.8 0.23 0.20
04 Dairy produce; birds'eggs; natural honey;
edible products ofanimal origin, not
elsewhere specified orincluded9224.8 29277.6 0.15 0.69
05 Products ofanimal origin, notelsewhere
specified orincluded3740.1 49.6 0.06 0.00
06 Vegetable products 701.6 5474.2 0.01 0.13
07 Edible vegetables andcertain roots andtubers 16465.3 1170.4 0.26 0.03
08 Edible fruitandnuts; peelofcitrus fruitor
melons7745.6 6303.5 0.12 0.15
09 Coffee, tea,maté andspices 613.0 27461.3 0.01 0.64
10 Cereals 445608.2 3981.9 7.15 0.09
11 Products ofthemilling industry; malt;
starches; inulin; wheat gluten69251.5 5063.3 1.11 0.12
12 Oilseeds andoleaginous fruits; miscellaneous
grains, seeds andfruit; industrial or
medicinal plants; straw andfodder3143.7 3358.8 0.05 0.08
13 Lac; gums; resins andother vegetable saps
andextracts304.7 487.5 0.00 0.01
14 Vegetable plaiting materials; vegetable
products notelsewhere specified orincluded1324.8 352.1 0.02 0.01
15 Animal orvegetable fatsandoilsandtheir
cleavage products; prepared edible fats;
animal orvegetable waxes1686.1 34733.3 0.03 0.82
16 Preparations ofmeat, offishorof
crustaceans, molluscs orother aquatic
invertebrates15581.4 16469.5 0.25 0.39
17 Sugars andsugar confectionery 27437.1 139432.9 0.44 3.27
18 Cocoa andcocoa preparations 718.7 20530.5 0.01 0.48
19 Malt extract; food preparations offlour, malt,
starch ormaltextract2493.5 20454.7 0.04 0.48
*English only.WT/ACC/KAZ/11
Page46
HS Chapter Export
(thousands
US$)Import
(thousands
US$)%of
total
export%of
total
import
20 Vegetables, fruit, nutsandother edible parts
ofplants, prepared byvinegar ofacetic acid3976.0 9600.0 0.06 0.23
21 Miscellaneous edible preparations 943 19651.6 0.02 0.46
22 Alcohol andnon-alcohol beverages and
vinegar18490.8 107164 0.30 2.51
23 Residues andwaste from thefood industries;
prepared animal feed10461.9 1250.6 0.17 0.03
24 Tobacco andmanufactured tobacco substitutes 39834.7 78117.8 0.64 1.83
25 Salt; sulphur; earths andstone; plastering
materials, limeandcement106888 44387.7 1.72 1.04
26 Ores, slagandash 158244.7 51377.1 2.54 1.21
27 Mineral fuels, mineral oilsandproducts of
their distillation; bituminous substances;
mineral waxes2076938 808412 33.34 18.97
28 Inorganic chemicals; organic orinorganic
compounds ofprecious metals, ofrare-earth
metals, ofradioactive elements orofisotopes425017.9 102418.6 6.82 2.40
29 Organic chemicals 10640.6 49186.9 0.17 1.15
30 Pharmaceutical products 2709.8 39397.3 0.04 0.92
31 Fertilizers 51314.5 14140.9 0.82 0.33
32 Tanning ordyeing extracts; tannin andtheir
derivatives; dyes, pigments andother
colouring matter; paints andvarnishes; putty
andother mastics; inks3685.6 27587.8 0.06 0.65
33 Essential oilsandresinoids; perfumery,
cosmetic ortoilet preparations2205.3 16584.4 0.04 0.39
34 Soap, organic surface-active agents, washing
preparations, lubricating preparations,
artificial waxes, prepared waxes, polishing or
scouring preparations, candles andsimilar
articles, modelling pastes, "dental waxes" and
dental preparations withabasis o1825.7 25865.9 0.03 0.61
35 Albuminoidal substances; modified starches;
glues; enzymes2631.6 5682.6 0.04 0.13
36 Explosives; pyrotechnic products; matches;
pyrophoric alloys; certain combustible
preparations526.8 67058.6 0.01 1.57
37 Photographic orcinematographic goods 61.3 3329.7 0.00 0.08
38 Miscellaneous chemical products 23250.5 66364.4 0.37 1.56
39 Plastics andarticles thereof 42115.9 58986.7 0.68 1.38
40 Rubber andarticles thereof 14782.2 171581.8 0.24 4.03
41 Raw hides andskins (other thanfurskins) and
leather)59863.1 1933.5 0.96 0.05WT/ACC/KAZ/11
Page47
HS Chapter Export
(thousands
US$)Import
(thousands
US$)%of
total
export%of
total
import
42 Articles ofleather; saddlery andharness;
travel goods, handbags andsimilar
containers; articles ofanimal gut(other than
silkworm gut)263.6 3220.3 0.00 0.08
43 Furskins andartificial fur;manufactures
thereof2367.4 671.9 0.04 0.02
44 Wood andarticles ofwood; wood charcoal 6864.5 56826.4 0.11 1.33
45 Cork andarticles ofcork 0 121.9 0.00 0.00
46 Manufactures ofstraw, ofesparto orofother
plaiting materials; basketware and
wickerwork0.6 6.5 0.00 0.00
47 Pulp ofwood orofother fibrous cellulosic
material; recovered (waste andscrap) paper
orpaperboard221.4 2872.6 0.00 0.07
48 Paper andpaperboard; articles ofpaper pulp,
ofpaper orofpaperboard6262.5 92044.8 0.10 2.16
49 Printed books, newspapers, pictures andother
products oftheprinting industry;
manuscripts, typescripts andplans2880.9 14582 0.05 0.34
50 Silk 223.1 386.1 0.00 0.01
51 Wool, fineorcoarse animal hair; horsehair
yarnandwoven fabric19902.8 4248.8 0.32 0.10
52 Cotton 102828.4 6302.2 1.65 0.15
53 Other vegetable textile fibres; paper yarnand
woven fabrics ofpaper yarn82.3 1855.5 0.00 0.04
54 Man-made filaments 243.5 2802.2 0.00 0.07
55 Man-made staple fibres 6596.1 12417.9 0.11 0.29
56 Wadding, feltandnon-wovens; special yarns;
twine, cordage, ropes andcables andarticles
thereof2916.7 2919.1 0.05 0.07
57 Carpets andother textile floor coverings 393.7 3425 0.01 0.08
58 Special woven fabrics; tufted textile fabrics;
lace; tapestries; trimmings; embroidery291.4 956.6 0.00 0.02
59 Impregnated, coated, covered orlaminated
textile fabrics; textile articles ofakind
suitable forindustrial use2020.9 12481.8 0.03 0.29
60 Knitted orcrocheted fabrics 27 418.3 0.00 0.01
61 Articles ofapparel andclothing accessories,
knitted orcrocheted4012.6 7072.2 0.06 0.17
62 Articles ofapparel andclothing accessories,
notknitted orcrocheted5189 15274.7 0.08 0.36
63 Other made uptextile articles; needlecraft
sets; worn clothing andworn textile articles;
rags3299 13379.2 0.05 0.31WT/ACC/KAZ/11
Page48
HS Chapter Export
(thousands
US$)Import
(thousands
US$)%of
total
export%of
total
import
64 Footwear, gaiters andthelike; parts ofsuch
articles4445.2 17667.5 0.07 0.41
65 Headgear andparts thereof 234.8 293 0.00 0.01
66 umbrellas, sunumbrellas, walking sticks, seat
sticks, whips, riding crops, andparts thereof0.1 138.8 0.00 0.00
67 Prepared feathers anddown andarticles made
offeathers orofdown; artificial flowers;
articles ofhuman hair1.3 10.4 0.00 0.00
68 Articles ofstone, plaster, cement, asbestos,
mica orsimilar materials15851.8 20358.9 0.25 0.48
69 Ceramic products 8330 46124.6 0.13 1.08
70 Glass andglassware 7383.9 20873.7 0.12 0.49
71 Natural orcultured pearls, precious or
semiprecious stones, precious metals, metals
cladwithprecious metal, andarticles thereof;
imitation jewellery; coin46.6 895.1 0.00 0.02
72 Ironandsteel 983935.3 122805.9 15.79 2.88
73 Articles ofironorsteel 53906.6 264840.3 0.87 6.22
74 Copper andarticles thereof 619157 7947.2 9.94 0.19
75 Nickel andarticles thereof 5749.7 414.1 0.09 0.01
76 Aluminum andarticles thereof 23951 22454.9 0.38 0.53
78 Lead andarticles thereof 47990.9 3816.2 0.77 0.09
79 Zinc andarticles thereof 145934.4 625.2 2.34 0.01
80 Tinandarticles thereof 79.9 7238.5 0.00 0.17
81 Other basemetals; cermets; articles thereof 70820.7 3112.7 1.14 0.07
82 Tools, implements, cutlery, spoons andforks,
ofbasemetal; parts thereof ofbasemetal4550.6 14698.4 0.07 0.34
83 Miscellaneous articles ofbasemetal 2834.1 18025.3 0.05 0.42
84 Nuclear reactors, boilers, machinery and
mechanical appliances andparts thereof155338.5 523455.8 2.49 12.28
85 Electrical machinery andequipment andparts
thereof; sound recorders andreproducers,
television image andsound recorders and
reproducers, andparts andaccessories of
such articles55126.3 293042.8 0.88 6.88
86 Railway ortramway locomotives, rolling
stock andparts thereof; railway ortramway
track fixtures andfittings andparts
thereof;mechanical (including
electro-mechanical) traffic signalling
equipment ofallkinds5255.5 52359.6 0.08 1.23
87 Vehicles other thanrailway ortramway
rolling-stock, andparts andaccessories
thereof82519.7 303115.7 1.32 7.11
88 Aircraft, spacecraft, andparts thereof 7056.3 5395.8 0.11 0.13WT/ACC/KAZ/11
Page49
HS Chapter Export
(thousands
US$)Import
(thousands
US$)%of
total
export%of
total
import
89 Ships, boats andfloating structures 59.7 497 0.00 0.01
90 Optical, photographic, cinematographic,
measuring, checking, precision, medical or
surgical instruments andapparatus; parts and
accessories thereof17723.1 66504.8 0.28 1.56
91 Clocks andwatches andparts thereof 20 639.4 0.00 0.02
92 Musical instruments; parts andaccessories of
such articles6 365.1 0.00 0.01
93 Arms andammunition; parts andaccessories
thereof14113.1 2505 0.23 0.06
94 Furniture; bedding, mattresses, mattress
supports, cushions andsimilar stuffed
furnishings; amps andlighting fittings, not
elsewhere specified orincluded; illuminated
signs, illuminated nameplates andthelike;
prefabricated buildings6203.1 65106.4 0.10 1.53
95 Toys, games andsports equipment; parts and
accessories thereof609.5 2242.9 0.01 0.05
96 Miscellaneous manufactured articles 239.5 2266.7 0.00 0.05
97 Works ofart,collectors 'pieces andantiques 7.5 58.1 0.00 0.00
Total: 6230404 4261297 100.00 100.00
(ii) Export statistics
Table B.2-Export ofKazakstan (million US$)
1993 1994 1995 1996
Export 3,458.8 3,230.7 4,975.5 6,230.4
Table B.3-Main export items (byvalue)
Goods (share oftotalexport) inpercent
1994 1995 1996
Wheat 2 5 5
Coal 10 5 8
Oilandgascondensate 16 14 20
Ferro-alloys 5 6 4
Rolled ferrous metals 10 10 10
Copper andcopper alloys 13 11 10
Zincandzincalloys 3 3 2.3WT/ACC/KAZ/11
Page50
Table B.4-Main exports items (byvolume)
Goods 1994 1995 1996 %96to95
Wheat, thousands tons 2,382.1 2,485.6 1,909.4 77
Coal, thousands tons 22,406.8 12,951.0 29,048.0 224
Oilandgascondensate, thousand tons 9,444.8 11,250.0 14,503.3 129
Ferro-alloys, thousands tons 468.3 578.3 500.2 86
Rolled ferrous metals, thousand tons 1,490.8 1,694.0 1,908.9 113
Copper andcopper alloys, thousand tons 301.1 216.6 290.8 134
Zincandzincalloys, thousand tons 151.0 147.7 151.6 103
Table B.5-Main export partners (1996)
Country exports (million US$) %oftotalexports
Russia 2,770.6 44.5
China 461.4 7.4
Netherlands 323.2 5.2
Great Britain 230.9 3.7
Ukraine 212.9 3.4
Switzerland 211.4 3.3
Uzbekistan 204.2 3.3
Italy 197.1 3.2
Germany 183.3 2.9
Lithuania 167.0 2.7
Kyrgyz Republic 112.6 1.8
Tadjikistan 61.6 1.0
United States 59.4 1.0
Thailand 55.2 0.9
Turkey 51.7 0.8
Belarus 47.0 0.8
Turkmenistan 39.4 0.6
(iii) Import statistics
Table B.6-Import ofKazakstan (million US$)
1993 1994 1995
Import 3,086.9 3,493.8 3,742.1WT/ACC/KAZ/11
Page51
Table B.7-Main imports items (byvalue)
Goods (share oftotalimport) inpercent
1994 1995 1996
Sugar 2 3 3
OresandConcentrates 1 3 1.2
Mineral fuel,oil,oilproducts 28 25 18
Articles ofironorsteel 4 4 6
Nuclear reactors andmachinery 13 14 12
Electrical machinery andequipment 8 6 7
Vehicles andparts 7 6 1.3
Table B.8-Main import items (byvolume)
Goods 1994 1995 1996 %96to95
Sugar, thousands tons 162.1 267.0 241.0 90
Tea,thousands tons 40.3 13.8 11.7 85
Oresandconcentrates, thousands tons 287.7 312.2 177.0 57
Coal, thousands tons 406.0 1,192.6 1.102.0 92
Coke, thousands tons 716.8 841.9 716.6 85
Oilproducts, thousands tons 1,922.3 1,700.4 1,241.3 70
Electric energy, million kwh 13,031.0 7,392.7 6,614.6 90
Natural gas,million cubic metres 7173.1 9,120.9 5,568.6 61
Table B.9-Main import partners (1996)
Country imports (million US$) %oftotalimports
Russia 2,342.3 55.0
Germany 197.7 4.6
Turkmenistan 176.3 4.1
Turkey 151.3 3.6
Belarus 120.8 2.8
Ukraine 92.4 2.2
Kyrgyz Republic 91.0 2.1
Uzbekistan 89.3 2.1
Great Britain 76.6 1.8
United States 66.3 1.6
Finland 56.1 1.3
Netherlands 49.0 1.1WT/ACC/KAZ/11
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Country imports (million US$) %oftotalimports
Switzerland 48.8 1.1
Italy 42.2 1.0
China 36.1 0.8
(iv) Imports from main suppliers preferably atatariff linelevel
Table B.10 -Main imports from Russia (1995 and1996):
value ofimport (thousands US$) andshare ofimport from Russia (%)
HS
CodeChapter 1995 1996
Value Share Value Share
17 Sugars andsugar confectionery 66,222 3.6% 68,463 2.9%
26 Ores,slagandash 9,436 0.5% 5,568 0.2%
27 Mineral fuels, mineral oilsandproducts 441,557 24.1% 512,393 21.9%
28 Inorganic chemicals 79,550 4.3% 91,951 3.9%
40 Rubber andarticles thereof 72,281 3.9% 127,373 5.4%
73 Articles ofironorsteel 139,992 7.6% 219,023 9.4%
84 Nuclear reactors 201,791 11.0% 240,931 10.3%
85 Electrical machinery andequipment 104,850 5.7% 120,480 5.1%
87 Vehicles andparts 109,954 6.0% 144,810 6.2%
90 Optical, photographic instruments, etc. 15,805 0.9% 15,735 0.7%
25 Salt;sulphur; earths andstone 24,939 1.4% 31,895 1.4%
29 Organic chemicals 47,524 2.6% 37,792 1.6%
44 Wood andarticles ofwood 56,732 3.1% 49,120 2.1%
48 Paper andpaperboard 31,961 1.7% 44,161 1.9%
69 Ceramic products 27,057 1.5% 30,985 1.3%
72 Ironandsteel 68,748 3.7% 105,934 4.5%
86 Railway locomotives 32,212 1.8% 44,036 1.9%
Other 303,489 16.5% 451,650 19.3%
Table B.11- Main imports from Uzbekistan (1995 and1996):
value ofimport (thousands US$) andshare ofimport from Uzbekistan (%)
HS
CodeChapter 1995 1996
Value Share Value Share
14 Vegetable plaiting materials 5,978 2.3% 1,185 1.3%
20 Preparations ofvegetables, fruits, nutsand
other parts ofplants2,888 1.1% 533.1 0.6%WT/ACC/KAZ/11
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HS
CodeChapter 1995 1996
Value Share Value Share
27 Mineral fuels, mineral oilsandproducts
(natural gas,electric energy)208,859 79.3% 56,797 63.6%
28 Inorganic chemicals 4,673 1.8% 3,864 4.3%
31 Fertilizers 2,759 1.0% 2,807 3.1%
52 Cotton 2,758 1.0% 426 0.5%
56 Wadding, feltandnon-wovens 3,808 1.4% 409 0.5%
84 Nuclear reactors, boilers, machinery 6,156 2.3% 3,068 3.4%
Other 24,989 9.5% 20,211 22.6%
Table B.12 -Main imports from Turkmenistan (1995 and1996):
value ofimport (thousands US$) andshare ofimport from Turkmenistan (%)
HS
CodeChapter 1994 1996
Value Share Value Share
27 Mineral fuels, mineral oilsandproducts
(natural gas)261,200 99.5% 173,068 98.0%
Other 1,300 0.5% 3,232 2.0%
(v) Trade bygeographic areas (main trade partners) for1996
Table B.13 -Trade withEurope (millions US$) andshare oftotaltrade (%)
Turnover Share Export Import
Europe 2,423.4 23.26% 1,643.7 779,700
Netherlands 372.2 3.6% 323.2 49.0
Germany 381 3.7% 183.3 197.7
Switzerland 257.2 2.5% 211.4 45.8
Great Britain 307.5 3.0% 230.9 76.6
Italy 239.3 2.3% 197.1 42.2
Finland 167.9 1.6% 111.8 56.1
Ireland 28.1 0.3% 20.5 7.6
Austria 34.2 0.3% 14.5 19.7
Czech Republic 50 0.5% 23.7 26.3
Poland 64.2 0.6% 22.0 42.2
France 40.4 0.4% 6.4 34.0
Hungary 46.1 0.4% 11.3 34.8WT/ACC/KAZ/11
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Table B.14 -Trade withAsia (millions US$) andshare oftotaltrade (%)
Turnover Share Export Import
Asia 1,412.00 13.5% 1,010.1 401,9
China 495.61 4.8% 461.4 34.2
Turkey 203.00 1.9% 51.7 151.3
Republic ofKorea 266.00 2.6% 178.2 87.8
Mongolia 36.60 0.4% 5.8 30.8
Iran 69.20 0.7% 63.2 6.0
Japan 105.30 1.0% 87.2 18.1
Thailand 60.70 0.6% 55.2 5.5
Chinese Taipei 17.50 0.2% 17.0 0.5
Israel 17.20 0.2% 0.9 16.3
Cyprus 6.60 0.1% 4.1 2.5
India 19.70 0.2% 2.3 17.4
Singapore 11.60 0.1% 5.2 6.4
Table B.15 -Trade withAmerica (millions US$) andshare oftotaltrade (%)
Turnover Share Export Import
America 203.30 2.0% 95.00 108.3
United States 125.70 1.2% 59.4 66
Bahamas 13.20 0.1% 11.8 1.4
Canada 7.00 0.1% 0.6 6.4
Table B.16 -Trade withAustralia (millions US$) andshare oftotaltrade (%)
Turnover Share Export Import
Australia 5.4 0.04% 0.4 5.0
Table B.17 -Trade withCIS-countries (millions US$) andshare oftotaltrade (%)
Turnover Share Export Import
CIScountries 6,436.10 61.8% 3,472.3 2,963.8
Russia 5,112.90 49.1% 2,770.6 2,342.3
Uzbekistan 293.50 2.8% 204.2 89.3
Turkmenistan 215.70 2.1% 39.4 176.3
Ukraine 305.30 2.9% 212.9 92.4
Belarus 167.80 1.6% 47.0 120.8WT/ACC/KAZ/11
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Turnover Share Export Import
Kyrgyz Republic 203.60 2.0% 112.6 91.0
Tadjikistan 79.10 0.8% 61.6 17.5
Azerbaijan 33.20 0.3% 10.6 22.6
Moldova 11.50 0.1% 3.2 8.3
Armenia 0.50 0.0% 0.1 0.4
Georgia 13.00 0.1% 10.1 2.9
Table B.18 -Main trading partners (1996)
Country Turnover (million US$) %oftotalturnover
Russia 5112.9 49.1%
China 497.5 4.8%
Germany 381.0 3.7%
Netherlands 372.2 3.6%
Great Britain 307.5 3.0%
Ukraine 305.3 2.9%
Uzbekistan 293.5 2.8%
Switzerland 257.2 2.5%
Italy 239.3 2.3%
Turkmenistan 215.7 2.1%
Turkey 203.0 1.9%
Lithuania 193.7 1.9%
Belarus 167.8 1.6%
United States 125.7 1.2%
Table B.19 Trade-Weighted Average Import Tariff Rates (1996)
Chapter 1 5.00% Chapter 33 12.64% Chapter 65 19.04%
Chapter 2 27.72% Chapter 34 3.35% Chapter 66 20.00%
Chapter 3 10.12% Chapter 35 5.00% Chapter 67 20.00%
Chapter 4 15.50% Chapter 36 30.00% Chapter 68 15.00%
Chapter 5 15.00% Chapter 37 9.30% Chapter 69 24.74%
Chapter 6 3.41% Chapter 38 1.11% Chapter 70 13.96%
Chapter 7 15.00% Chapter 39 12.36% Chapter 71 39.04%
Chapter 8 11.87% Chapter 40 8.18% Chapter 72 12.50%
Chapter 9 9.28% Chapter 41 23.95% Chapter 73 19.96%
Chapter 10 5.40% Chapter 42 15.58% Chapter 74 5.00%
Chapter 11 10.04% Chapter 43 9.73% Chapter 75 0.00%WT/ACC/KAZ/11
Page56
Chapter 12 0.00% Chapter 44 19.90% Chapter 76 0.00%
Chapter 13 5.00% Chapter 45 5.00% Chapter 78 5.00%
Chapter 14 15.00% Chapter 46 25.00% Chapter 79 5.00%
Chapter 15 11.28% Chapter 47 25.00% Chapter 80 5.00%
Chapter 16 19.03% Chapter 48 8.92% Chapter 81 15.00%
Chapter 17 14.19% Chapter 49 2.96% Chapter 82 9.35%
Chapter 18 20.45% Chapter 50 5.00% Chapter 83 20.00%
Chapter 19 23.90% Chapter 51 20.00% Chapter 84 0.13%
Chapter 20 17.01% Chapter 52 19.32% Chapter 85 3.70%
Chapter 21 12.14% Chapter 53 7.87% Chapter 86 0.13%
Chapter 22 83.06% Chapter 54 8.98% Chapter 87 5.20%
Chapter 23 16.06% Chapter 55 5.00% Chapter 88 0.00%
Chapter 24 19.91% Chapter 56 7.59% Chapter 89 13.19%
Chapter 25 21.00% Chapter 57 30.00% Chapter 90 3.04%
Chapter 26 0.71% Chapter 58 25.00% Chapter 91 22.64%
Chapter 27 2.03% Chapter 59 12.32% Chapter 92 14.62%
Chapter 28 4.70% Chapter 60 8.97% Chapter 93 30.00%
Chapter 29 0.00% Chapter 61 26.33% Chapter 94 30.54%
Chapter 30 0.00% Chapter 62 24.45% Chapter 95 16.41%
Chapter 31 0.00% Chapter 63 15.45% Chapter 96 17.17%
Chapter 32 4.26% Chapter 64 148.30% Chapter 97 0.00%