RESTRICTED
WORLD TRADE WT/ACC/KGZ/5
27January 1997
ORGANIZATION(97-0295)
Original: English
ACCESSION OFTHE KYRGYZ REPUBLIC
Questions andReplies
totheMemorandum ontheForeign Trade Régime
(Document WT/ACC/KGZ/3)
Inacommunication, dated 18January 1996 (WT/ACC/KGZ/1), theGovernment ofthe
Kyrgyz Republic applied foraccession under Article XIIoftheMarrakesh Agreement Establishing
theWorld Trade Organization (WTO).
Atitsmeeting on16April 1996, theGeneral Council established aWorking Party withthe
following terms ofreference: "Toexamine theapplication oftheGovernment oftheKyrgyz Republic
toaccede totheWTO Agreement under Article XII,andtosubmit totheGeneral Council
recommendations which mayinclude adraftProtocol ofAccession." Themembership isopentoall
WTO Members indicating theirwishtoserve ontheWorking Party. Indocument WT/ACC/KGZ/3,
Members hadbeeninvited tosubmit questions inwriting concerning theforeign trade régime ofthe
Kyrgyz Republic. Thequestions submitted byMembers andthereplies thereto provided bythe
authorities oftheKyrgyz Republic arereproduced hereunder. Theattachments mentioned inthis
document areavailable intheSecretariat (Accessions Division, Room 1126) forconsultation.
Delegations wishing toraiseadditional questions concerning theforeign trade régime ofthe
Kyrgyz Republic might inform thedelegation oftheKyrgyz Republic (with acopytotheSecretariat)
ofsuchquestions inadvance ofthenextmeeting oftheWorking Party, sothatconsidered replies can
bemade available bytheKyrgyz Republic toMembers atthetimeoftheWorking Party meeting.WT/ACC/KGZ/5
Pageii
TABLE OFCONTENTS
Page No.
II. ECONOMY, POLICIES AND FOREIGN TRADE 1
1. Economy 1
(b) Current economic situation 1
2. Economic Policies 1
(a) Main directions ofongoing economic policies 1
(c) Foreign exchange andpayments system 1
(d) Foreign anddomestic investment policy 2
(e) Competition policy 3
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE INGOODS AND TRADE INSERVICES 4
2. Government Entities Responsible forMaking andImplementing
Policies Affecting Foreign Trade 4
3. Division ofAuthority Between Central andSub-central Governments 4
4. Legislative Programmes orPlans toChange theRegulatory Régime 5
IV. POLICIES AFFECTING TRADE INGOODS 5
1. Import Regulation 5
(b) Characteristics ofnational tariff 5
(c) Tariff quotas, tariff exemptions 5
(d) Other duties andcharges, specifying anycharges forservices rendered 6
(e) Quantitative import restrictions, including prohibitions,
quotas andlicensing systems 7
(f) Import licensing procedures 7
(j) Pre-shipment inspection 7
(k) Application ofinternal taxes onimports 7
(l) Rules oforigin 11
(m) Anti-dumping régime 12
(n) Countervailing dutyrégime 12
(o) Special purpose duties 13
2. Export Regulation 14
(d) Export licensing procedures 14
(f) Export financing, subsidy, andpromotion policies 14
3. Internal Policies Affecting Foreign Trade inGoods 15
(a) Industrial policy, including subsidy policy 15
(b) Technical regulations andstandards, including border measures 15
(c) Sanitary andphytosanitary measures 18
(d) Trade-related investment measures 18
(f) Freezones 19
(g) Freeeconomic zones 20
(h) Trade-related environmental policies 20
(k) Trade agreements leading tocountry-specific quotas allocation 21
(l) Government procurement practices 21WT/ACC/KGZ/5
Pageiii
4. Policies Affecting Foreign Trade inAgricultural Products 25
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 26
1. General 26
(a) Intellectual property policy 26
(b) Responsible agencies forpolicy formulation andimplementation 26
(c) Membership ofinternational intellectual property conventions 26
(d) Application ofnational andMFN treatment toforeign nationals 27
2. Substantive Standards ofProtection 27
(a) Copyright andrelated rights 27
(b) Trademarks, including service marks 29
(c) Geographical indications, including appellations oforigin 31
(d) Industrial designs 31
(e) Patents 32
(f) Plant variety protection 34
4. Enforcement 35
(a) Civil judicial procedures andremedies 35
(b) Provisional measures 37
5. Laws, Decrees, Regulations andOther Legal ActsRelating totheAbove 37
VI. TRADE-RELATED SERVICES REGIME 37
1. General 37
2. Policy Affecting Trade inServices 38
(a) Government departments, agencies orother bodies 38
(d) Provisions governing theexistence andoperation ofmonopolies or
exclusive service suppliers 38
3. Market Access andNational Treatment 38
(e) Restriction on,orrequirements ofspecific types oflegalentity
through which aservice maybesupplied 38
(g) Measures providing forlessthanthetreatment accorded tonational
services orservice suppliers 38
5. Description oftheMarket andtheMechanism forRegulating
theMost Prominent Service Sectors 39
(a) Legal services 39
(b) Telecommunication services 40
(e) Banking services 42
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC
RELATIONS WITH THIRD COUNTRIES 43
2. Economic Integration, Customs Union andFreeTrade Agreements 43
(b) Customs Union Agreements 43
(c) FreeTrade Area Agreements 45
ANNEX 5INFORMATION ONTECHNICAL BARRIERS TOTRADE 45WT/ACC/KGZ/5
Page1
II. ECONOMY, POLICIES AND FOREIGN TRADE (pages 1-15)
1. Economy
(b) Current economic situation
Question 1.
Could youspecify what ismeant bythe"sixnatural monopolies" forwhich prices havenotbeen
liberalized?
Answer:
Actually, seven entities havenowbeensoclassified:
- Kyrgyz Energy Company (electric power andthermal energy);
- ManagementDepartmentofKyrgyzRailroad(intra-republicpassengerandgoodstransportation);
- "Kyrgyzgas" (natural andliquified natural gas);
- Ministry ofCommunications (telecommunications services rendered tothepublic);
- "Kyrgyzjilkommunsojuz" (thermal energy, water-pipe water andsewage);
- "Kyrgyzalco" (alcohol andalcohol products, other thanbeer); and,
- "Kyrgyztamekesi" (tobacco fermentation, manufacture oftobacco products, saleoffermented
tobacco).
2. Economic Policies
(a) Main directions ofongoing economic policies
Question 2.
Areanygoods (asopposed tocompanies) subject toprice control?
Answer:
Nogoods -asopposed tocompanies -aresubject toprice control.
Question 3.
Could youspecify the"sound andworkable bankruptcy process" (page 5)?
Answer:
With theassistance offoreign advisers, bankruptcy laws, regulations andprocedures thatare
modelledafterthesimilarlaws,regulationsandproceduresofdevelopedcountriesarebeingpromulgated
andimplemented.
(c) Foreign exchange andpayments system
Question 4.
TheKyrgyz Republic states thatitdoesnotmaintain anyexchange restrictions oncurrent
account orcapital transactions. Arethere anyother, non-exchange, restriction onsuch
transactions?WT/ACC/KGZ/5
Page2
Answer:
Answer tobeprovided later.
(d) Foreign anddomestic investment policy
Question 5.
Arethere anyrestrictions tothenational treatment principle?
Answer:
There arenogeneral restrictions ontheprinciple ofnational treatment. Nevertheless, incertain
veryspecific instances, anapplicable laworregulation subjects aforeign product, service, citizen or
legalentity toacondition orrequirement thatdiffers from thatapplicable toaKyrgyz citizen and/or
legalentity. Incertain instances, suchacondition orrequirement treats foreign persons lessfavourably
thanKyrgyz citizens (e.g.theexisting feestructure fortheregistration ofintellectual property rights);
inother instance, foreign persons receive more favourable treatment (e.g.certain taxexemptions are
onlymade available toKyrgyz legalentities which havesubstantial foreign participation). Those laws
andregulationsthatsubjectforeignpersonstoconditionsorrequirementsthatdifferfromthoseapplicable
toKyrgyz citizens aredescribed intheMemorandum ontheForeign Trade Régime. (Seealsoe.g.
theMemorandum atVI.3(g), page54.)
Question 6.
Canforeign investors freely repatriate their investments made intheKyrgyz Republic infreely
convertible currency?
Answer:
Yes.
Question 7.
Isthere anydomestic legal protection forforeign investors incases ofexpropriation?
Answer:
Inaccordance withArticle 7ofthe"Law OnForeign Investments intheKyrgyz Republic"
of28June1991,foreigninvestmentsareprotectedfromnationalizationexceptwhere(i)anationalization
isnecessary toprotect thehealth and/or livesofthepopulation ortoensure stateand/or public security
fromathreat created bytheinvestment, and(ii)theforeign investor hasrefused orisnotabletocomply
withanorder oftheresponsible State body toeliminate thethreat within thetimespecified insuch
order. Inanyevent, foreign investments areaccorded national treatment inthisrespect; i.e.theycan
besubject torequisition orconfiscation onlyforthesamereasons andaccording tothesameprocedures
applicable toKyrgyz citizens andlegal entities. Furthermore, intheevent ofanationalization or
requisition ofaforeign investment, theLawonForeign Investments requires thattheforeign investor
bepaidcompensation inanamount commensurate withtherealcostoftheconcerned property. Such
compensation istobemade inthecurrency inwhich theinvestment wasmade or-iftheinvestor agrees -
inthenational currency oftheKyrgyz Republic. TheLawonForeign Investments creates rights that
areenforceable against theGovernment andState bodies inthecommercial courts oftheKyrgyz
Republic.WT/ACC/KGZ/5
Page3
Question 8.
Under whatcircumstances would foreign investors berestricted fromparticipation inprivatisation?
Answer:
Asstated intheMemorandum ontheForeign Trade Régime (PartII,Section 2.(d)), theCabinet
ofMinisters hastheauthority torestrict orotherwise limitforeign investors fromparticipating inthe
privatization ofcertain industries; however, theCabinet ofMinisters hasnotyetexercised thisauthority.
Nevertheless,thesourceofthatauthority,paragraph26oftheLawonDenationalizationofStateProperty
of12January 1994, states that"Intheprocess ofdenationalization andprivatization ofobjects ofcertain
sectors ofthenational economy, theCabinet ofMinisters mayreduce thenumber ofpurchasers to
guarantee thepriority rights ofcitizens andlegal entities oftheKyrgyz Republic. "(Italics added)
Question 9.
Areforeign investors freetoacquire realestate linked totheestablishment?
Answer:
Foreign citizens andlegal entities maypurchase residential immovable property -suchas
apartments andhouses -onlywiththespecific permission oftheCabinet ofMinisters. Foreign citizens
andlegalentities mayrentsuchimmovable property onthesame basis asKyrgyz citizens andlegal
entities. Noprivate person orlegalentity, either foreign orlocal, mayyetacquire ownership rights
inland.
Question 10.
Itisstated (page 14)thattheCabinet ofMinisters hastheauthority under the1994Privatization
Lawtorestrict foreign investors from participating intheprivatization ofcertain sectors. To
which sectors doesthisrestriction apply? Could theKyrgyz Republic explain thebackground
behind theintroduction ofsuchaprovision?
Answer:
Seeanswer toquestion 5.
(e) Competition policy
Question 11.
Does theKyrgyz Republic intend tonotify anyifits"natural" monopolies listed inthissection,
under Article XVIII oftheGATS? Ifnot,whynot?
Answer:
TheGovernment oftheKyrgyz Republic isreviewing theoperations, legalstatus andrights
ofthebelow-listed natural monopolies todetermine whether theymustbenotified as"State-trading"
entities within themeaning ofArticle VIIIoftheGATS orArticle XVII oftheGATT. Ifthe
Government determines thatanentity fallswithin thedefinition ofa"State-trading" enterprise, that
entity willbenotified assuchtotheWTO. IftheGovernment determines thatanentity doesnotmeetWT/ACC/KGZ/5
Page4
thatdefinition, itwillsupply theWTO withastatement astowhyitbelieves thatsuchentity doesnot
meetthedefinition and,therefore, neednotbenotified totheWTO.
- ManagementDepartmentofKyrgyzrailroad(intra-republicpassengerandgoodstransportation);
- Ministry ofCommunications (telecommunications services rendered tothepublic);
- Kyrgyz Energy Holding Company (electric power andthermal energy);
- "Kyrgyzgas" (natural andliquified natural gas);
- "Kyrgyzjilkommunsojuz" (thermal energy, water-pipe water andsewage);
- "Kyrgyzalco" (alcohol andalcohol products, other thanbeer); and,
- "Kyrgyztamekesi" (tobacco fermentation, manufacture oftobacco products, saleoffermented
tobacco).
III. FRAMEWORKFORMAKINGANDENFORCINGPOLICIESAFFECTINGFOREIGN
TRADE INGOODS AND TRADE INSERVICES
2. Government Entities Responsible forMaking andImplementing Policies Affecting Foreign
Trade
Question 12.
What process willbeneeded tocomplete national procedures relating toWTO accession? Will
implementing legislation berequired?
Answer:
TheGovernment willdesignate anegotiating teamtoconduct theaccession negotiations. Upon
theapproval oftheresulting terms ofaccession bytheCabinet ofMinisters, anofficial ofminister
rankwillbeauthorized toexecute theagreement setting forththeterms ofaccession. Theagreement
willthenbesubmitted totheParliament forratification. IfParliament ratifies theagreement, then-to
theextent thattheterms ofaccession require changes toexisting legalactsortheenactment ofnew
legalacts-these actswillbedrafted andputintoeffect inaccordance withthetimetables setforth
intheterms ofaccession.
3. Division ofAuthority Between Central andSub-central Governments
Question 13.
Itisstated inthesecond paragraph that"thelocal governmental policy affecting trade ingoods
andservices isalmost exclusively determined bythecentral Government". Please describe all
exceptions tothisprinciple.
Answer:
Thisissue hasbeenreviewed andithasbeendetermined thatthecentral Government andthe
Parliament havetheexclusive authority tosetpolicy andtoissuelawsandregulations concerning matters
affecting trade ingoods andservices falling within thescope oftheagreements administered bythe
WTO.WT/ACC/KGZ/5
Page5
4. Legislative Programmes orPlans toChange theRegulatory Régime
Question 14.
Please provide anupdate onprogress incompleting theParliament 'slegislative work programme
for1996. Which oftheactslisted inthissection have nowbeen enacted?
Answer:
Thelistoflawsmentioned inthissection includes onlythose which affect theforeign trade
régime. Parliament adopted several lawssinceJuly1996, butnotallofthemwerelisted inthissection.
Thefollowing lawshavebeenadopted byParliament since July1996:
- LawontheQuarantine ofPlants
- LawonPower Engineering; and
- LawonAmendments andChanges totheTaxCode.
IV. POLICIES AFFECTING TRADE INGOODS
1. Import Regulation
(b) Characteristics ofnational tariff
Question 15.
When doestheKyrgyz Republic intend tobring itstariff nomenclature intolinewiththeHS96
system?
Answer:
TheKyrgyz Republic doesnothaveitsowntariff nomenclature, butinstead usesthetariff
nomenclature inforce inRussia. Russia wasscheduled tohaveadopted theHarmonized Tariff System
by1January 1997. Ifandwhen Russia adopts thatsystem, theKyrgyz Republic willusetheHS
nomenclature.
(c) Tariff quotas, tariff exemptions
Question 16.
With regard totheexemption granted tosome products originating inCIScountries; Article I
oftheGATT 1994 requires application oftheMFN principle, whilst Article XXIV allows for
exceptions forregional integration initiatives where these arecompatible withtherequirements
ofArticle XXIV andoftheUnderstanding onthatArticle. IstheKyrgyz Republic prepared to
undertake thatexemptions willonlybegiven tothird countries inthecontext ofaWTO compatible
FreeTrade Agreement orCustoms Union Agreement?
Answer:
Yes.WT/ACC/KGZ/5
Page6
Question 17.
AretheFreeEconomicZonesundertheLawonFreeEconomicZonesof16December1992Bonded
Zones? Could theKyrgyz Republic explain thezones?
Answer:
TheFreeEconomicZonesarenotbondedzones.Thecustomsauthoritiesdonotrequiresecurity
fortheadmission ofgoods tosuchazone. These zones aredescribed inPartIV,Section 3.(g) of
WT/ACC/KGZ/3.
(d) Other duties andcharges, specifying anycharges forservices rendered
Question 18.
Asanadvalorem fee,theCustoms Clearance Feedoesnotappear tobeconsistent withArticle VIII
ofGATT 1994, which requires thatfeesandcharges related toimportation arelimited tothe
costofservices rendered. What steps doestheKyrgyz Republic intend totaketobring itssystem
intolinewithGATT practice?
Answer:
TheKyrgyzRepublicisconsideringalteringthecurrentcustomsclearancefeefromanadvalorem
feeintoafeethattracks theactual costoftheservice provided. TheKyrgyz Republic iscurrently
seeking advice from foreign customs advisors onhowsuchafeestructure canbeputintoplace in
amanner acceptable totheWTO.
Question 19.
How willtheKyrgyz Republic ensure thatfeesandcharges related toimportation arelimited
tothecostofservices rendered, ifthisisnotcovered expressly intheproposed newCustoms Code?
Answer:
Under Article VIII, allfeesandcharges related toimportation arerequired tobelimited to
thecostoftheservices rendered. TheKyrgyz Republic willintroduce changes totheproposed Customs
Code thatwillensure thatallfeesandcharges related toimportation reflect thecostofservices rendered.
TheKyrgyz Republic iscurrently attempting tocalculate theactual costoftheservices rendered in
connection withimportation.
Question 20.
Under Kyrgyz law,istheimposition ofseasonal taxes limited tocertain product sectors?
Answer:
TheKyrgyz Customs Code provides forseasonal taxes; butthese arenotexpressly limited
toparticular product sectors.WT/ACC/KGZ/5
Page7
(e) Quantitative import restrictions, including prohibitions, quotas andlicensing systems
Question 21.
CantheKyrgyz Republic confirm thatitdoesnotintend inthefuture tointroduce import quotas
ofanysort?
Answer:
TheKyrgyz Republic confirms thatitdoesnotplantointroduce import quotas inthenearfuture.
(f) Import licensing procedures
Question 22.
There isandadministrative charge forissuing alicence ofUS$75.Could theKyrgyz Republic
givemore precise indications onhowexactly these charges arecalculated tocover theservices
rendered (GATT Article VIII)?
Answer:
Thefeecharged foralicence isestablished at10"minimum salaries". Thiscurrently equals
750soms (approximately $45asof10January 1997). Theamount ofthefeeisnotcurrently based
onthecostofservices rendered. Income from licence feesistransferred intotheState budget.
(j) Pre-shipment inspection
Question 23.
WilltheKyrgyz Republic undertake that,should anypreshipment inspection system beintroduced
inthefuture, theoperation ofsuchasystem willbeconsistent withtherelevant WTO Agreements,
inparticular, onPreshipment Inspection andCustoms Valuation?
Answer:
TheKyrgyz Republic hasnoplans tointroduce anypreshipment inspection requirements;
however, ifsuchrequirements areintroduced, theKyrgyz Republic commits thatitwillensure that
suchrequirements areconsistent withtherelevant WTO Agreements.
(k) Application ofinternal taxes onimports
Question 24.
ArticleXXIVoftheGATT1994doesnotexemptRegionalIntegrationAgreementsfromapplication
ofthem.f.n. principle withregard tointernal taxation. Please indicate when theKyrgyz Republic
intends tobring itssystem ofVAT application intolinewithArticle IoftheGATT 1994, sothat
itisapplied equally toimports from allthird countries.
Answer:
TheKyrgyz Republic currently supports theconcept ofbringing itsVATsystem intoconformity
withaccepted world practice, i.e.applying theVAT toallgoods soldorimported intotheKyrgyzWT/ACC/KGZ/5
Page8
Republic regardless oftheircountry oforigin, andexempting exported goods regardless oftheircountry
ofdestination. Nevertheless, itshould benoted thattheagreement ofother CIScountries must be
obtainedtoaccomplishthis.Uncoordinatedunilateraltransitionmayleadtoasituationofdoubletaxation
onCISimports, thereby causing are-orientation oftrade andthepossible imposition ofreciprocal
measures byCIScountries onKyrgyz exports.
Thisissue isthetheme ofthediscussion ofexperts atmeetings oftheInter-State Council and
theIntegration Committee andcurrently itisimpossible todetermine theconcrete terms ofwhen or
howthetransition willbeaccomplished.
Question 25.
TheMemorandum mentions theKyrgyz Republic 'spolicy onNational Treatment oninternal
taxation butnotonregulatory aspects ofsale, offering forsale, purchase, transportation,
distribution oruse. What isthecontent oftheKyrgyz Republic 'spolicy inthisarea? Please
explain howitcomplies withArticle III.4 ofGATT?
Answer:
Imported goods aresubject tonational treatment onallregulatory aspects ofsale,offering for
sale,purchase, transportation, distribution anduse.Itisthepolicy oftheKyrgyz Republic tomaintain
thisnational treatment régime forimported products. Bothlawandpolicy inthisareaconform to
Article III.4oftheGATT.
Question 26.
AreVAT exemptions applied withfullrespect forthenational treatment andm.f.n. principles?
Answer:
Yes.
Question 27.
Does theKyrgyz Republic accept thatitscurrent excise taxsystem withitsdifferent levels and/or
methods ofcalculation forimported anddomestically produced goods) isnotcompatible with
Article IIIoftheGATT 1994?
Answer:
Yes,theexisting system ofexcise taxesstipulates different methods ofcalculation forimported
anddomestic goods. Thenecessity forusing twomethods forcalculating excise taxes iscaused by
thefactthatimported goods often haveprices thatarehigher thanthose ofsimilar domestic goods.
Inthisrespect, equal absolute rates ofexcise taxforimported anddomestic products would mean
relatively higher ratesfordomestic products. Excise ratesinpercentages arehigher foralmost all
domestic goods incomparison withratesforimported goods. Thissituation provides arelative price
advantage inthemarket ofimported goods overdomestic production.
Question 28.
What measures istheKyrgyz Republic taking tobring itsexcise taxsystem intolinewiththe
national treatment principle? What istheanticipated timetable?WT/ACC/KGZ/5
Page9
Answer:
Currently, inaccordance withtheTaxCode, newexcise taxratesforimported anddomestic
goods havebeendeveloped (seeanswer toquestion 27below). Thepolicy oftheKyrgyz Republic
inthesphere ofexcise taxisaimed atthecreation ofoneequal excise taxrégime forimported and
domestically produced goods. Itisexpected thatthismatter willberesolved by1January 1998.
Question 29.
Please confirm that,except forVAT andexcise tax,noother internal taxes arelevied onimported
goods.
Answer:
Currently, theonlyinternal taxestowhich imported goods aresubject aretheVAT andexcise
taxes.
Question 30.
ForAnnex 9,please provide thefulllistoftariff headings /toHS6-or8-digits) ofallitems subject
toexcise tax.
Answer:
On24December 1996, theLegislative Assembly, oneofthetwochambers ofParliament,
approved thefollowing tableofexcise taxrates. Thematter isnowpending before theother chamber,
theAssembly ofPeople 'sRepresentatives. TheGovernment believes that,although theexcise taxrates
applicable tocertain items maychange before finaladoption andapproval bythePresident, the
descriptionofgoodsandtheapplicabletariffcodenumbers,withtheexceptionofthepossibleelimination
ofcoffee andcocoa, willnotchange.
Proposed Excise TaxRégime
Goods Domestic Rates Imported Rates Codes
Ethyl alcohol andpurified ethyl alcohol produced
from rawmaterials (except those imported by
special consumers within stipulated limits)$1.4/litre $1.4/litre 2207
Vodka $0.90/litre $0.90/litre 220890110-220890390
Liqueurs andvodka products $0.90/litre $0.90/litre 220810,
220830,
220890510-220890790,
220890910,
220890990
Alcoholized beverages, juiceandbalsam* $0.90/litre $0.90/litre 220840,
220850
Grape wine
other wines$0.35/litre
$0.29/litre
Wine $0.35/litre 220421-220429,
2205,
2206
Cognac $0.60/litre $0.80/litre 220820100
Sparkling wines $0.40/litre $0.45/litre 220410WT/ACC/KGZ/5
Page10
Goods Domestic Rates Imported Rates Codes
Beer:
-packaged
-unpackaged$0.80/litre
$0.05/litre$0.25/litre 2203
Rawmaterials forwine production $0.15/litre $0.20/litre 220430
Tobacco products
-filtercigarettes
-unfiltered cigarettes$1.5/1000 each
$0.75/1000 each$5/1000 each
$2/1000 each2402
2402
Other tobacco-containing items, including
fermented tobacco12% 240110,
240120, 2403
Gold, platinum orsilver jewellery 20% 30% 7113-7118
Processed andrawfurhides (other thanmole,
rabbit, deer, dogandsheep skin)0% 10% 4110,
4103-4104,
4106-4109
Wearing apparel made ofnatural fur,including
coats, short-coats, jackets, capes, stoles, scarves,
headgear, collars, furcoats andfurpieces (other
thanapparel made ofhides ofmode, rabbit, dog,
deerorsheep skin)0% 10% 4303
Coats, short-coats, jackets andcapes trimmed
withfur(other thanmole, rabbit, dog,deeror
sheep skin)0% 10% 4303
Clothing made ofnatural leather 0% 10% 4203
Crystalware 0% 30% 701321,
701331,
701391
Firearms andgasweapons (other thanthose
acquired fortheneeds ofState agencies)10% 20% 9301-9393,
9305-9306
Oilproducts:
-gasoline, softandmedium distillates$45/ton $45/ton 2707,
271000330,
271000350,
271000390,
271000110,
271000150,
271000210,
271000250,
271000410,
271000450
Aircraft fuel $45/ton 271000510-271000590
Diesel fuel $0/ton $45/ton 271000610,
271000650,
271000690
Black oil $0/ton $0/ton 271000710,
271000750,
27100790
Other $0/ton $0/ton 271000550,
271000910,
271000930,
271000990
Coffee andcocoa products 10% 0901, 1801, 1803-1805
Carpets andrugs(except floorcoverings) 0% 35% 57
*Excise taxrates arecalculated based onthecontent ofethyl alcohol insuch items, thebasebeing abeverage containing
45percentalcohol.WT/ACC/KGZ/5
Page11
(l) Rules oforigin
Question 31.
Does theKyrgyz Republic have anylegislation requiring thatgoods (imported ordomestically
produced) must bemarked withrespect tocountry oforigin?
Answer:
TheKyrgyz Republic currently hasnocountry oforigin marking requirement.
Question 32.
Isproof oforigin required forproducts originating from allcountries oronlyfrom those countries
exporting totheKyrgyz Republic under apreferential scheme?
Answer:
Certificates oforigin arerequired forallimported goods.
Question 33.
Where proof oforigin isrequired, what constitutes thatproof?
Answer:
Acertificate oforigin thatiscertified byanauthorized governmental body inthecountry of
origin.
Question 34.
Please provide amore detailed explanation ofhowthecountry ororigin isascertained.
Answer:
Currently, theKyrgyz Republic relies almost entirely onthecertificate oforigin. However,
theproposed Customs Code includes themethods specified intheKyoto Convention Annex. Assuming
thattheproposed Customs Code ispassed byParliament initscurrent form, theKyrgyz Republic will
needtodevelop regulations ontheimplementation ofthecountry oforigin methods. Itisenvisaged
thattheprimary method tobeusedwillbethetariff shiftmethod.
Question 35.
HastheKyrgyz Republic adopted specific criteria andformula ofcalculation withrespect tothe
criteria of(ii)and(iii)onpage 30?
Answer:
With respect tocriterion (ii),theproposed Customs Code contains alistofoperations that
areconsidered asinsufficient toconfer origin. Alistofoperations thatwould beconsidered assufficientWT/ACC/KGZ/5
Page12
toconfer origin hasnotbeendeveloped. Noother specific implementing regulations orrules have
asyetbeendeveloped.
Withrespect tocriterion (iii),nospecific implementing regulations orruleshaveasyetbeen
developed.
(m) Anti-dumping régime
Question 36.
Could theKyrgyz Republic please provide acopyofitsCustoms Tariff Lawprovision supplying
inthecaseofdumping practices andanyother rulewhich mayenter intoplayinanti-dumping
enforcement, including theProposed Customs Code?
Answer:
Theprovisions oftheCustoms Tariff Lawapplicable todumping, thirdcountry subsidization,
safeguards, warning measures andretaliatory trade measures areincluded inAttachment A.The
corresponding provisions oftheproposed Customs Tariff Lawareincluded inAttachment B.
Question 37.
OneMember notes thattheKyrgyz anti-dumping rules'standard ("damage") anddefinition of
domestic manufacturers ("manufacturers ofsimilar ordirectly competing goods") asdescribed
intheMemorandum (paragraph IV.1(m)) differ from thedefinitions intheWTO Anti-dumping
Agreement. Could theKyrgyz Republic please comment ontheWTO-compatibility ofthose
requirements?
Answer:
TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting aWTO-compliant law
onextraordinary trademeasures thatwillcontain detailed provisions onanti-dumping, countervailing
dutyandsafeguard actions. TheKyrgyz Republic willprovide acopy ofthedraft lawwhen itis
finalized.
(n) Countervailing dutyrégime
Question 38.
Wewould kindly request theKyrgyz Republic toprovide acopy ofitsCustoms Tariff Law
provisions andanyother rules applicable inthecaseofthird country subsidization, including
theProposed Customs Code.
Answer:
SeeAttachments AandB.WT/ACC/KGZ/5
Page13
Question 39.
WenotethattheKyrgyz countervailing dutyrules'injury standard ("damage") anddefinition
ofdomestic manufacturers ("manufacturers ofsimilar ordirectly competing goods") asdescribed
intheMemorandum (paragraph IV.1(n)) differ from thedefinitions intheWTO Subsidies and
Countervailing Measures Agreement. Could theKyrgyz Republic please comment onthe
WTO-compatibility ofthose requirements?
Answer:
TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting aWTO-compliant law
onextraordinary trade measures thatwillcontain detailed provisions onanti-dumping, countervailing
dutyandsafeguard actions. TheKyrgyz Republic willprovide acopy ofthedraft lawwhen itis
finalized.
(o) Special purpose duties
Question 40.
Wewould kindly request theKyrgyz Republic toprovide acopy ofitsCustoms Tariff Law
provisions andanyother rulesapplicable intheareaofsafeguard measures, including theProposed
Customs Tariff Law.
Answer:
SeeAttachments AandB.
Question 41.
Wenote thattheKyrgyz safeguard rules'injury standard ("damage") asdescribed inthe
Memorandum (paragraph IV.1(n)) differs from thedefinitions oftheWTO Subsidies and
Countervailing Measures Agreement. Could theKyrgyz Republic please comment onthe
WTO-compatibility ofthose requirements? Furthermore, could itconfirm thatnoquantitative
restrictions areimposed assafeguard measures?
Answer:
TheGovernment oftheKyrgyz Republic isintheprocess ofdrafting aWTO-compliant law
onextraordinary trade measures thatwillcontain detailed provisions onanti-dumping, countervailing
dutyandsafeguard actions. Furthermore, theGovernment oftheKyrgyz Republic confirms thatno
quantitative restrictions areorwillbeusedassafeguards. TheKyrgyz Republic willprovide acopy
ofthedraftlawwhen itisfinalized.
Question 42.
Could theKyrgyz Republic please elaborate onitswarning measures andretaliation measures?
How dothetwomeasures differ inscope, substantive requirements andprocedures leading to
their adoption? How would theyrelated toWTO dispute settlement procedures?WT/ACC/KGZ/5
Page14
Answer:
TheKyrgyz Republic isintheprocess ofdrafting aWTO-compliant lawonextraordinary trade
measuresthatwillcontaindetailedprovisionsonanti-dumping,countervailingdutyandsafeguardactions.
2. Export Regulation
(d) Export licensing procedures
Question 43.
Does theprinciple ofnational treatment apply forissuing export licences?
Answer:
Yes.
Question 44.
Please provide amore detailed explanation ofhowtheexport licensing system formetals operates.
Answer:
AsnotedintheMemorandum,theexportationofferrous,preciousandrare-earthmetalsextracted
and/or processed intheKyrgyz Republic requires anexport licence. Anymanufacturing/mining entity
orintermediary entity (regardless offormorownership) iseligible toapply. Thelicence application
must besubmitted totheMinistry ofIndustry andTrade. When applying foranexport licence, an
applicant mustsubmit: (i)anapplication onastandard form; (ii)acopyoftheexport contract; (iii)
acopyoftheapplicable bilateral agreement ondeliveries, ifany; and(iv)ashort description ofhow
thetransaction benefits theKyrgyz Republic.
Thelicence istobeprepared andgranted within 20daysafterthereceipt oftheapplication
andallrequired supporting documentation. Thelicence isnon-transferable. Once thelicence hasbeen
granted, therecipient must provide ittotheState Customs Inspectorate together withacustoms
declaration. A"single shipment" licence mustbeusedwithin sixmonths from thedateofissuance.
A"multiple shipment" licence must beusedwithin twelve months.
(f) Export financing, subsidy, andpromotion policies
Question 45.
CantheKyrgyz Republic confirm thatitdoesnotmaintain, andhasnointention ofintroducing
inthefuture, anyexport subsidies?
Answer:
Except fortheprofits taxreduction described inSection IV.3(d) oftheMemorandum onthe
Foreign Trade Régime, theKyrgyz Republic confirms thatitdoesnotcurrently andwillnotinthe
future maintain anyexport subsidies.WT/ACC/KGZ/5
Page15
3. Internal Policies Affecting Foreign Trade inGoods
(a) Industrial policy, including subsidy policy
Question 46.
Please provide theWorking Party withacopy oftheReport onDomestic Support Measures
mentioned inthisSection.
Answer:
Thisreport hasalready beensubmitted.
(b) Technical regulations andstandards, including border measures
Question 47.
Does theKyrgyz Republic anticipate anydifficulties inapplying theTBT Agreement infullon
accession?
Answer:
Yes. Themost significant difficulties willbethefollowing:
- receiving andtransmitting thenecessary information inoneoftheaccepted languages ofthe
WTO;
- forimplementation ofpoint 6ofArticle 2,theKyrgyz Republic willnothavetheability to
participate fully inthework ofinternational organizations onstandardization dueto(i)
insufficient financing forthiswork; (ii)alackofspecialists experienced inthedevelopment
ofinternational standards; and,(iii)theslowpaceofestablishing theinfrastructure needed
todevelop standards andtechnical regulations;
- Organizational difficulties areexpected inimplementing point11ofArticle 2,regarding timely
publication ornotification oftechnical regulations;
- theenquiry pointonstandards andtechnical regulations required bypoint 10.1.1 ofArticle 10
isonlyintheinitial stages offormation;
- Membership ofISONET poses organizational-technical andfinancial difficulties for
Kyrgyzstandard atthistime.
Question 48.
Could theKyrgyz Republic please provide anoverview ofregulations relating todifferent
products/product areas?
Answer:
Anoverviewofthevariousregulationsrelatingtodifferentproductsandproductareasisprovided
inAnnex 5totheMemorandum ontheForeign Trade Régime oftheKyrgyz Republic.WT/ACC/KGZ/5
Page16
Question 49.
Arethestandards usedintheKyrgyz Republic voluntary ormandatory; ifmandatory, could
theKyrgyz Republic please state therationale behind this?
Answer:
According totheLawOnProtection ofConsumers 'Rights, requirements forproducts which
bytheirnature poseasubstantial potential threat totheenvironment orthesafety, livesand/or health
ofcitizens aremandatory andareestablished innormative documents onstandardization which are
mandatory.
Other requirements (indications) arevoluntary.
Question 50.
HastheKyrgyz Republic theintention ofgradually moving from theuseofGOST-standards to
theuseofinternational standards; ifso,what isthetimetable andthepriorities forthischange
over?
Answer:
Yes. TheKyrgyz Republic isamember oftheCISInter-Governmental Council on
Standardization,MetrologyandCertification.ThisorganizationhasbeenrecognizedbyISOasaregional
organization acting incompliance withitsrequirements. Membership inthisorganizations ensures
theeventual implementation andusage ofinternational standards intheKyrgyz Republic. Aspecific
timetable forandthepriorities inthischange-over hasnotyetbeendeveloped.
Question 51.
Could theKyrgyz Republic please provide more in-depth information ontheprocedures and
requirementsconnectedwiththemandatoryandthevoluntarysystemofcertification.Forexample:
doestheKyrgyz certification system contain thepossibility ofusing amanufacturer 'sdeclaration?
Does theKyrgyz Republic usepre-market certification inanyproduct areas?
Answer:
Inaddition totheinformation oncertification provided inAnnex 5totheMemorandum, it
should benoted thatthesystem ofcertification ineffect intheKyrgyz Republic isharmonized with
thesystems ofcertification ineffect intheRussian Federation andother CIScountries, andwiththe
regulations ofISO/IEC andEuropean standards ofserial No.EN45000. Thecertification rulesand
regulations oftheKyrgyz Republic aresetforth in44different setsofregulations, ofwhich 20have
general applicability and24apply tospecific products orproduct groups. These documents contain
detailedinformationontheproceduresandrequirementsrelatedtomandatoryandvoluntarycertification.
Goods forwhich State standards have been established forthepurpose ofprotecting the
environment orthelife,health andproperty ofcitizens aresubject tomandatory certification bythe
appropriate ministry orState body, andthesubsequent issuance byKyrgyzstandard ofacertificate
ofconformity andalicence tomark theconcerned goods witha"mark ofconformity". Saleorimport
ofsuchgoods intheKyrgyz Republic without suchpriorcertification andmarking isprohibited. List
ofgoods thataresubject tomandatory certification isdeveloped byKyrgyzstandard.WT/ACC/KGZ/5
Page17
Goods thatarenotsubject tomandatory certification inaccordance withthelegislation ofthe
Kyrgyz Republic maybecertified onavoluntary basis. Suchcertification iscarried outonthebasis
ofanagreement between theapplicant andKyrgyzstandard. Voluntary certification canalsobedone
byanybodyauthorized bytheKyrgyzstandard todoso.Themethod ofvoluntary certification ischosen
bytheapplicant from those accepted byKyrgyzstandard.
Generally, theissuance ofacertificate andmark ofconformity requires: (i)thefiling ofan
application withtheresponsible ministry orStatebody; (ii)areview oftheapplication, including the
choice ofcertification method; (iii)theidentification andselection ofsamples andtheirtesting; (iv)
areview ofthetestresults andacomparison withtheapplicable standards; and(v)theissuance of
acertificate ofconformity andalicence tousethemark ofconformity.
Generally, intheKyrgyz Republic itispossible forthecertifying bodytoaccept thedeclaration
ofamanufacturer orproducer. Atthistime, theacceptability ofsuchadeclaration iswithin the
discretionoftheministryorStatebodyresponsibleforcertifyingtheconformityofthegoodsinquestion.
IntheKyrgyz Republic, regulations providing forpre-market certification arecurrently indraft
form.
Question 52.
DoestheKyrgyz Republic accept asequivalent certificates from third country certification bodies?
Answer:
Theacceptance ofcertificates issued byforeign certification bodies isgenerally dependent on
theexistence ofabilateral ormultilateral agreement onthematter.
Intheabsence ofanapplicable bilateral ormultilateral agreement, theKyrgyz Republic will
generally accept acertificate issued byamanufacturer orcertification bodywidely recognized ashaving
areputation forquality. Thedetermination ofsuchfirms andorganizations remains within thediscretion
oftheKyrgyz Republic.
Asarule,foreign certificates areaccepted onlyforproducts originating inthecountry where
thecertificate wasissued.
Theacceptability offoreign certificates andtheform andmethod ofevaluating compliance
isestablished foreachproduct onacase-by-case basis.
Question 53.
HastheKyrgyz Republic developed aquality assurance system? Could theKyrgyz Republic please
provide further information onthissystem oronanyplans todevelop suchasystem?
Answer:
No.Currently, work isbeing conducted thatisaimed atintroducing theISO-9000 standards.WT/ACC/KGZ/5
Page18
Question 54.
Could theKyrgyz Republic alsoplease provide further information onitsaccreditation system?
Answer:
IntheState system ofcertification, three setsofregulations establish therequirements and
theprocedure foraccrediting testlaboratories andcertification bodies. These regulations cover:
(i)products andservices; (ii)systems ofquality; and(iii)production methods. These documents
arealsoharmonized withsimilar documents ofthesystem ofcertification oftheRussian Federation,
theregulations ofISO/IEC andEuropean standards ofserial No.EN45000.
Accreditation ofacertification andtesting organization isdonebyKyrgyzstandard andother
Statebodies authorized toconduct mandatory certification within theirareaofcompetence (forexample,
theKyrgyz Ministry forConstruction andArchitecture isresponsible forcertifying thecompliance
ofconstruction materials). Alltypes oforganizations areeligible foraccreditation iftheymeetthe
requirements. Anapplicant mustprovide Kyrgyzstandard withitsorganizational documents, thedesired
scope ofaccreditation, abriefdescription ofitslegalstatus, aswellasadescription ofitsorganizational
structure. Anorganization applying foranaccreditation must: (i)beindependent andunbiased; and
(ii)besufficiently competent, i.e.possess sufficient means, qualified professionals, etc.
(c) Sanitary andphytosanitary measures
Question 55.
Does theKyrgyz Republic anticipate anydifficulties inapplying theSPSAgreement infullon
accession?
Answer:
TheKyrgyz Republic expects nodifficulties inapplying theSPSAgreement infullonaccession.
(d) Trade-related investment measures
Question 56.
Please indicate whether ornotthere areanydomestic content orexport performance requirements
linked togranting thetaxexemptions mentioned inthissection.
Answer:
There arenodomestic content orexport performance requirements linked togranting thetax
exemptions mentioned inthissection.
Question 57.
Please elaborate onthetaxincentives granted toforeign-owned legalentities, particularly ontheir
consistency withtheSCM Agreement andwiththeTRIMs Agreement.WT/ACC/KGZ/5
Page19
Answer:
These taxincentives areprimarily directed atencouraging foreign investment inthe
Kyrgyz Republic. These taxincentives involve aninitial 2-5yearexemption from theprofits tax,
and-thereafter -areduction oftheprofits taxby:
- 50percentforalltaxable profits reinvested intheKyrgyz Republic;
- 25percentifatleast50percentofentity 'sproducts andservices areexported;
- 25percentifatleast50percentofproduction isderived from imported rawmaterials or
components; and,
- 25percentifatleast20percentoftaxable profits arespent forprofessional training.
None ofthese taxincentives areinconsistent withtheTRIMs Agreement.
Withoneexception, noneofthese incentives areinconsistent withtheSCM Agreement. The
exception isthe25percentreduction intheotherwise applicable profits taxif50percentormore
oftheentity 'sproducts andservices areexported. TheKyrgyz Republic understands thatthistax
reduction isaprohibited export subsidy within themeaning ofSection 3.1(a) oftheSCM Agreement.
Question 58.
Please confirm thattheKyrgyz Republic maintains noother TRIMs Agreement inconsistent
measures.
Answer:
TheKyrgyz Republic confirms thatitmaintains noothermeasures inconsistent withtheTRIMs
Agreement.
(f) Freezones
Question 59.
Please confirm whether ornotanyfreezones established inthefuture willbefully subject to
thecoverage oftheKyrgyz Republic 'sfuture commitments asaWTO member.
Answer:
TheKyrgyz Republic confirms thatallfreezones intheKyrgyz Republic willbefullysubject
tothecoverage ofthecommitments undertaken bytheKyrgyz Republic asamember oftheWTO.
Question 60.
Please indicate whether ornotgoods produced orimported intofreezones under thespecial tax
andtariff régimes envisaged forthese zones willbesubject tonormal customs formalities, taxes
andtariffs when entering therestoftheKyrgyz Republic.WT/ACC/KGZ/5
Page20
Answer:
TheKyrgyz Republic confirms thatallgoods produced orimported intofreezones willbe
subject tonormal customs formalities, taxes andtariffs when entering thecustoms territory ofthe
Kyrgyz Republic.
(g) Freeeconomic zones
Question 61.
Please confirm whether ornotfreeeconomic zones willbefully subject tothecoverage ofthe
Kyrgyz Republic 'sfuture commitments asaWTO member.
Answer:
TheKyrgyz Republic confirms thatallfreeeconomic zones intheKyrgyz Republic willbe
fullysubject tothecoverage ofthecommitments undertaken bytheKyrgyz Republic asamember
oftheWTO.
Question 62.
Please indicate whether ornotgoods produced orimported intofreeeconomic zones under the
special taxandtariff régimes envisaged forthese zones aresubject tonormal customs formalities,
taxes andtariffs when entering therestoftheKyrgyz Republic.
Answer:
TheKyrgyz Republic confirms thatallgoods produced orimported intofreeeconomic zones
willbesubject tonormal customs formalities, taxes andtariffs when entering thecustoms territory
oftheKyrgyz Republic.
(h) Trade-related environmental policies
Question 63.
Thethird paragraph under thisheading states thatproducts form acountry suffering from a
disease requiring quarantine measures must beaccompanied bydocuments ofsafety. Please
confirm thatsuchmeasures onlyapply toproducts which areaffected bythedisease inquestion,
andnottoallimports from thatcountry.
Answer:
TheKyrgyzRepublicconfirmsthatsuchmeasuresapplyonlytoproductswhichcouldreasonably
beexpected tobeaffected bythedisease inquestion, andnottoallimports from thatcountry.WT/ACC/KGZ/5
Page21
(k) Trade agreements leading tocountry-specific quotas allocation
Question 64.
Areallcountertrade andbarter arrangements subject tocustoms formalities, tariffs andtaxes
inthesame wayasother imports?
Answer:
Yes.
(l) Government procurement practices
Question 65.
Does theKyrgyz Republic plantoaccede theAgreement onGovernment Procurement (GPA)?
Ifnot,whynot?
Answer:
Yes.
Question 66.
Does theKyrgyz Government collect statistics onprocurement?
Answer:
Statistics onprocurement arenotseparately collected. Statistics onprocurements using
international donor funds arecollected byConsultative Agency onInternational Procurements. See
alsoTables 1-29and1-30ofAnnex 1totheMemorandum.
Question 67.
What istheoverall value ofpublic sector purchasing intheKyrgyz Republic?
Answer:
Atthistime, theTables 1-29and1-30ofAnnex 1totheMemorandum provide thisinformation
tothebestextent possible.
Question 68.
Please provide abreakdown ofthepublic procurement market bothbycontracting entity and
product type.
Answer:
Forthebestavailable information onthismatter, seeTables 1-29and1-30ofAnnex 1tothe
Memorandum.WT/ACC/KGZ/5
Page22
Question 69.
Howarebidsevaluated bytheExamination Committee? Isprice theonlycriterion orarecontracts
alsoevaluated byreference toan"economically mostadvantageous offer" approach? Ifso,under
what conditions arethedifferent evaluation methods used?
Answer:
Under theproposed lawongovernment procurement, procedures andcriteria fortheevaluation
ofbidsaresetforth inthesolicitation documents issued foreachprocurement. Theproposed law
requires procuring entities toactinstrict accordance withtheapplicable solicitation documents.
Price, subject toanymargin ofpreference applied pursuant tothelaw,istheonlycriterion
unless thesolicitation documents statethattheaward willbebased onother objective andquantifiable
criteria. Alternative criteria must bespecified inadvance inthesolicitation documents.
Question 70.
Isthere acentral agency which controls theapplication ofthelegalsystem, supervises thedecisions
oftheCommittees andmonitors infringement ofpublic law?
Answer:
TheKyrgyz Government plans tocreate anewGovernment Procurement Agency within the
Ministry ofFinance inthefirsthalfof1997. (Please notethatunder arecent reorganization ofthe
Government, theMinistries ofEconomy andFinance weremerged, andtheresulting entity iscalled
theMinistry ofFinance.) Thisnewcentral agency willcontrol theapplication ofthelegalsystem,
supervise thedecisions ofallpurchasing organizations, monitor infringements ofpublic lawandsettle
disputes.
Question 71.
Cansuppliers whodispute theaward ofacontract seekredress through national courts ora
tribunal system?
Answer:
Yes. Under theproposed lawongovernment procurement, suchadispute maybepursued
intheeconomic court system; however, judicial redress isgenerally available onlyaftertheexhaustion
ofadministrative remedies. Note, however, thatthefollowing matters arenotsubject tojudicial review:
- theselection ofthemethod ofprocurement;
- thechoice ofaselection procedure;
- thelimitation ofprocurement proceedings onthebasis ofnationality;
- adecision bytheprocuring entity toreject alltenders, proposals, offers orquotations;
- arefusal bytheprocuring entity torespond toanexpression ofinterest toparticipate inrequest-
for-proposal proceedings; and,
- anomission ofreference tolawsandregulations inthesolicitation documents.WT/ACC/KGZ/5
Page23
Question 72.
What remedies areavailable?
Answer:
Under theproposed lawongovernment procurement, oneormore ofthefollowing remedies
areavailable tosuppliers disputing theaward ofacontract:
- adetermination oftherules applicable tothecomplaint;
- anorder prohibiting theprocuring entity from carrying outunlawful actions, decisions or
procedures;
- anorder requiring theprocuring entity tocarry outlawful actions ordecisions;
- theannulment ofanunlawful actordecision byaprocuring entity, other thananyactwhich
resulted inaprocurement contract;
- therevision ofanunlawful decision taken byaprocuring entity, orthesubstitution ofthe
reviewing body'sowndecision foranunlawful decision, otherthananydecision which resulted
inaprocurement contract;
- anaward ofcompensation forreasonable costsincurred byasupplier insubmitting acomplaint;
and,
- anorder toterminate procurement proceedings.
Provisional remedies arealsoavailable. Insome cases, thesubmission ofacomplaint and
request foradministrative review results inthetemporary suspension ofongoing procurement
proceedings. Where acontract hasalready beenawarded atthetimeofthecomplaint, performance
ofthecontract maybetemporarily suspended.
Question 73.
Isthere anoffset policy and,ifso,howoften areoffset arrangements negotiated onacase-by-case
basis?
Answer:
TheKyrgyz Government maintains nooffset policy.
Question 74.
Does apolicy tosupport local industry existintheKyrgyz Republic?
Answer:
Under theproposed lawongovernment procurement, withrespect topublic procurement, there
arelimited legalprovisions tosupport localindustry. Seeresponse toquestion 72below.
Question 75.
Istheprocurement ofcertain products reserved forlocalindustry? Ifso,isalistofthese products
available?WT/ACC/KGZ/5
Page24
Answer:
Thecurrent proposed procurement lawdoesnotcontain alistofcertain products whose
procurement isreserved forlocalindustry. However, theproposed lawallows forthepossibility that
particular proceedings maybelimited todomestic bidders (forexample, where theprocuring entity
determines thatthevalue ofthecontract tobeawarded issolawthatonlydomestic bidders arelikely
tobeinterested). Also, inlimited cases, aprocuring entity may, inevaluating tenders, grant amargin
ofpreferenceforthebenefitoftendersfordomesticcontractors,domesticallyproducedgoodsordomestic
suppliers ofservices.
Question 76.
What aretheprocedures andthecriteria toshort-list candidates inthecases oflimited tendering?
Answer:
Theproposed lawsetsouttwocircumstances under which restricted tendering ispermitted.
The"short list"procedures andcriteria employed inagiven casedepend onwhich ofthetwo
circumstances isapplicable.
First, aprocuring entity mayconduct restricted tendering where thegoods, works orservices
tobeprocured arehighly complex orspecialized, andtherefore available onlyfromalimited number
ofsuppliers. Inthatcase, theentity must solicit tenders from allsuppliers from whom thegoods,
works orservices areavailable.
Alternatively, aprocuring entity mayconduct restricted tendering when itdetermines thatthe
timeandcostrequired toexamine andevaluate alarge number oftenders would bedisproportionate
tothevalue ofthegoods, works orservices tobeprocured. Inthatcase, theproposed lawprovides
thattheprocuring entity mustselect suppliers orcontractors from whom toselect tenders "inanon-
discriminatory manner", andthatitshall"select asufficient number ofsuppliers orcontractors toensure
effective competition".
Inbothcases, theprocuring entity mustpublish anotice ofitsrestricted tendering intheofficial
gazette.
Question 77.
Does theKyrgyz Republic have anytrade agreements withother countries which cover public
procurement? Ifso,which countries?
Answer:
No.
Question 78.
Under theGovernment Procurement Law which isunder preparation, howwilltheNational
Treatment principle andMost Favoured Nation principle beensured forforeign products and
service providers?WT/ACC/KGZ/5
Page25
Answer:
With respect tothem.f.n. principle, theproposed lawdoesnotpermit theprocuring entity
todiscriminate among foreign bidders.
With respect tothenational treatment principle, theproposed lawallows forthepossibility
thatparticular proceedings maybelimited todomestic bidders (forexample, where theprocuring entity
determines thatthevalue ofthecontract tobeawarded issolowthatonlydomestic bidders arelikely
tobeinterested). Also, inlimited cases, aprocuring entity may, inevaluating tenders, grant amargin
ofpreference forthebenefit oftenders fordomestic contractors, domestically produced goods, or
domestic suppliers ofservices.
Question 79.
According tothenewlawinpreparation, willforeign bidders betreated inanon-discriminatory
matter andwillthere beachallenge procedure open alsoforforeign bidders?
Answer:
According totheproposed law,foreign bidders arepermitted toparticipate inprocurement,
except incases when aprocuring entity decides ongrounds specified intheprocurement regulations
oraccording toother provisions ofthelawtolimitparticipation inprocurement proceedings tolocal
bidders. Ifforeigners arenotpermitted toparticipate, aprocuring entity shallinclude intherecord
oftheprocurement proceedings astatement ofthegrounds andcircumstances which thislimitation
isrelied on.Also, inlimited cases, aprocuring entity may, inevaluating tenders, grant amargin of
preference forthebenefit oftenders fordomestic contractors, domestically produced goods, ordomestic
suppliersofservices.Therearenotyetanyregulationsspecifyingtheacceptablegroundsforestablishing
suchlimitations orpreference margins.
Thelawprovides fornoother exceptions tothenational treatment principle, andforno
exceptions tothem.f.n. principle. Therefore, inallother aspects, foreign bidders aretobetreated
according tothenational treatment andm.f.n. principles, including challenge procedures.
4. Policies Affecting Foreign Trade inAgricultural Products
Question 80.
Please provide theinformation requested inWT/ACC/4 ondomestic support andexport subsidies.
Answer:
Thishasalready beensubmitted.
Question 81.
What isthestate ofplayregarding thelawproviding forprivate ownership oflandwhich the
Parliament wastoconsider inautumn 1996?WT/ACC/KGZ/5
Page26
Answer:
Thegovernmental working group, created pursuant toInstruction No.105-p oftheCabinet
ofMinisters of22April 1996, hasdeveloped andsubmitted adraftlawonproperty rights inlandto
theCabinet ofMinisters.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy
Question 82.
TheGovernment oftheKyrgyz Republic explains thattheKyrgyz Republic isstillundergoing
atransition process from thesystem inherited from theformer Soviet Union. TheKyrgyz Republic
istherefore stillintheprocess ofadopting several laws (e.g. Civil Code, "various additional
specialized laws" etc.)linked tointellectual property. Against thisbackground, could theKyrgyz
Government specify thelawsandtimeframe(s) fortheir adoption?
Answer:
Theintellectual property lawscurrently indraftformandthelegislative status ofeachareas
follows:
- thePatent Law(under consideration byParliament);
- theLawOnTrademarks, Service Marks andAppellations ofOrigin (under consideration by
Parliament);
- theLawOntheLegal Protection ofSoftware andDatabases (under consideration bythe
Government);
- theLawOntheLegal Protection ofTopologies ofIntegrated Circuits (under consideration
bytheGovernment);
- theLawOnSelection Achievements (under consideration bytheGovernment); and,
- theLawOnCopyright andRelated Rights (under consideration byParliament).
(b) Responsible agencies forpolicy formulation andimplementation
Question 83.
IstheState Agency forIntellectual Property (alsoknown asKyrgyzpatent) already putinplace?
Answer:
Yes.
(c) Membership ofinternational intellectual property conventions
Question 84.
DoestheGovernment oftheKyrgyz Republic intend toadhere tointernational intellectual property
conventions -such astheRome orBerne Convention -other than those mentioned in
WT/ACC/KGZ/3? Ifyes,what aretheyandwhat isthetimeframe?WT/ACC/KGZ/5
Page27
Answer:
TheKyrgyz Government iscurrently considering adhering totheRome andBerne Conventions,
aswellastheNiceAgreement Concerning theInternational Classification ofGoods andServices (1957)
andtheWashington Treaty onIntellectual Property inRespect ofIntegrated Circuits (1989). However,
thereisnoavailable estimate astowhen theGovernment maysignontotheseinternational agreements.
Itshould alsobenoted thattheKyrgyz Government nowadheres totheUniversal Copyright
Convention.
(d) Application ofnational andMFN treatment toforeign nationals
Question 85.
Inwhich waydoestheKyrgyz Republic intend todealwiththelisted exceptions tothenational
treatment policy when itaccedes totheWTO Agreement under Article XII,e.g.howdoesthe
Kyrgyz Republic intend tocomply withArticle 4oftheTRIPS Agreement?
Answer:
Inorder toensure national treatment, theStateAgency forIntellectual Property (Kyrgyzpatent)
isnowreviewing alllawsandregulations toeliminate, orpropose theelimination of,allprohibited
differences inthetreatment offoreign persons andKyrgyz citizens. Forexample, auniform feestructure
iscurrently being developed.
With respect tothem.f.n. principle, theKyrgyz Republic intends tofollow therequirements
ofArticle 4oftheTRIPS Agreement. Alldraftlawsmentioned above intheanswer toquestion 79
(Part V,Section 1)havebeendrafted byKyrgyzpatent withregard totherequirements ofArticle 4.
2. Substantive standards ofprotection
Question 86.
When willthe"additional provisions" inlaterparts oftheCivil Code (notyetadopted) enter into
force? Please specify these "other specialised laws".
Answer:
PartIIoftheCivil Code isstillunder preparation andisexpected tobesubmitted tothe
Parliament attheendof1997. The"other specialized laws" areenumerated above intheanswer to
question 79.
(a) Copyright andrelated rights
Question 87.
TheKyrgyz Government explains thatadraft lawonCopyright andRelated Rights iscurrently
pending before theParliament. What isthetimeframe fortheadoption ofthelaw?WT/ACC/KGZ/5
Page28
Answer:
Itisscheduled tobevoted onbyParliament within thefirsthalfof1997.
Question 88.
What areitsmain elements?
Answer:
ThedraftlawOnCopyright andRelated Rights oftheKyrgyz Republic consists offivebasic
chapters, divided intoatotalof50articles. Asummary ofthechapters isasfollows:
Chapter 1-"General" -establishes thesubject ofregulation andbasic concepts usedinthelaw.
Chapter 2-"Copyright" -establishes theobjects ofcopyright, defines theauthor ofthecreative work,
hisproperty andnon-property rights, thetransferability ofproperty rights, aswellastheperiod of
validity ofcopyrights.
Chapter 3-"Related Rights" -establishes thesubjects ofrelated rights (performers, producers of
phonograms (recordings), organizations ofairandcable broadcasts), theirrights, aswellastheperiod
ofvalidity ofrelated rights.
Chapter 4-"Collective Management ofProperty Rights" provides forthecreation byowners of
copyrights andrelated rights oforganizations forthemanagement ofproperty rights onacollective
basis. Suchorganizations arecreated forthepurpose ofproviding copyright andrelated rights holders
withproperty rights incases where itisdifficult torealize theirrights separately.
Chapter5-"ProtectionofCopyrightsandRelatedRights"establishescivil-legislativeandothermeasures
fortheenforcement ofcopyrights andrelated rights.
Question 89.
Could theKyrgyz Government provide acopy ofthedraft?
Answer:
SeeAttachment C.
Question 90.
Does thecurrent copyright legislation provide forrental rights? Ifyes,please explain. Ifno,
arerental rights foreseen inthedraft law? Ifyes,how?
Answer:
Thecurrent lawonlyrequires thatanexhibitor, producer, performer, broadcaster orpublisher
obtain theconsent ofthecopyright holder. There arenoprovisions specifically covering rental rights.
ThedraftlawcontainsaprovisioncoveringrentalrightsatArticle16.Thedraftlawiscontained
inAttachment C.WT/ACC/KGZ/5
Page29
Question 91.
Inwhich waywilltheKyrgyz Republic comply withArticle 9(1)oftheTRIPS Agreement? Doest
theKyrgyz Republic intend toaccede totheBerne Convention of1971?
Answer:
Thedraft LawOnCopyright andRelated Rights hasbeen developed withregard tothe
requirements oftheBerne Convention. Therefore, afterthislawcomes intoforce, therequirements
oftheBerne Convention andofArticle 9those oftheTRIPS Agreement willbeobserved.
TheKyrgyz Republic intends tojointheBerne Convention (1971). Currently, theterms of
accessionarebeingconsideredindetail;however,exacttermsofaccessionhavenotyetbeenestablished.
Question 92.
When istheentering intoforce ofthelaw"OnCopyright andRelated Rights" tobeexpected?
Answer:
Consideration ofthedraftLawOnCopyright andRelated Rights byParliament isplanned
forthefirsthalfof1997.
Question 93.
Does thedraft copyright lawcomply withArticle 14oftheTRIPS Agreement?
Answer:
Yes.
(b) Trademarks, including services marks
Question 94.
How arewell-known marks protected?
Answer:
Incompliance withtheParisConvention, noregistration ofwell-known trademarks isrequired.
However, voluntary registration forwell-known trade marks ispossible.
Atpresent,inmakingexpertexaminationsandresolvingissuesregardingrefusalsofregistration,
where agenerally-known trade mark isinvolved, experts oftheTrade Mark Expert Examination
Department follow onlytheirpersonal knowledge.
Under thecurrent Temporary Regulations onIndustrial Property, theowner ofaregistered
well-known mark mayfileacivilaction incivilcourt against anunauthorized userofthemark. The
onlyjudicial remedies currently available are:(i)aninjunction; (ii)anaward ofcompensation for
losses; and(iii)anassessment ofapenalty.WT/ACC/KGZ/5
Page30
Thedrafttrademarklawalsoprovidesforcivilenforcementandforthejudicialremediesavailable
under theexisting regulations. Inaddition, thecourt canauthorize acourt official toseizetheoffending
goods. Thedrafttrademark lawalsoprovides forcriminal penalties intheevenofongoing violations
ofthetrademark law.
Thelawisthesame forwell-known marks.
Question 95.
Inthesection ontrademarks inWT/ACC/KGZ/3 itissaidthattrademarks areprotected for
aperiod oftenyears. Does thismean thatafter thisperiod haselapsed nofurther protection
isgranted?
Answer:
Registration ofatrademark isvalid fortenyears from thepriority date. Thevalidity term
ofthetrademark maybeextended pursuant totheowner 'sapplication submitted within thelastyear
ofthetrademark 'svalidity, forsuccessive ten-year periods, onthecondition thattherequired feeis
paid.
Question 96.
Amore comprehensive draft trade mark lawiscurrently pending before theParliament. Could
theKyrgyz Government explain itsmain elements?
Answer:
Thedrafttrademark lawiscontained inAttachment D.
Question 97.
When isitexpected toenter intoforce?
Answer:
Enforcement ofthelawwillbeestablished bytheLawOnEnforcement oftheLawofthe
Kyrgyz Republic OnTrademarks, Service Marks andAppellations ofOrigin. Consideration ofthe
draftlawontrademarks byParliament isplanned forthefirsthalfof1997.
Question 98.
Could theKyrgyz Government provide acopy ofthelaw?
Answer:
Thedraftiscontained inAttachment D.
Question 99.
Does the"more comprehensive draft trade mark law,currently ending before theparliament"
comply withArticle 15-21oftheTRIPS Agreement?WT/ACC/KGZ/5
Page31
Answer:
Yes.
Question 100.
When istheentering intoforce tobeexpected?
Answer:
Itisscheduled tobevoted onbyParliament inthefirsthalfof1997.
(c) Geographical indications, including appellations oforigin
Question 101.
Could theKyrgyz Government explain themain elements oftheprotection ofgeographical
indications andappellations oforigin asforeseen inthedraft trademark law?
Answer:
SeeAttachment D.
Question 102.
Does thedraft trade mark lawpending Parliament accomplish therequirements ofArticle 22f
oftheTRIPS Agreement?
Answer:
Yes.
(d) Industrial designs
Question 103.
Could theGovernment oftheKyrgyz Republic explain whether textile designs areprotected?
Ifyes,how?
Answer:
Yes,theyareprotected. Legal protection ofindustrial designs isregulated bytheTemporary
Regulation OnIndustrial Property oftheKyrgyz Republic.
Anapplication onanindustrial design maybesubmitted through apatent attorney registered
inKyrgyzpatent.
Patent information, uponwhich apatent examination hasrelied indetermining thecompliance
oftheindustrial design totheconditions ofpatentability, ispublished intheofficial bulletin of
Kyrgyzpatent. Thepublication ismade within 6months fromtheregistration dateintheStateRegister
ofIndustrial Property oftheKyrgyz Republic.WT/ACC/KGZ/5
Page32
After deciding togrant aprotection document, butbefore theinformation ispublished,
Kyrgyzpatent includes information intotheStateRegister ofIndustrial Property oftheKyrgyz Republic
andgrants tothepatent-holder anappropriate protection document.
Kyrgyzpatent grants aprotection document onthebasis ofitsregistration within a6-month
period afterreceiving adocument onpayment oftherequired fee.
Anindustrial design patent isvalidfortenyears fromthepriority date. Apreliminary industrial
design patent isvalid for3years from thedateofpriority (application registration datewith
Kyrgyzpatent).
Thepatent-holder hastheexclusive right touseandtolicence theuseofthedesign. The
unauthorized manufacture, use,import, offerforsale,saleandotherintroduction ofaproduct containing
thedesign intocommerce isconsidered tobeviolation ofthepatent-holder 'srights.
(e) Patents
Question 104.
Arethere anyprovisions oncompulsory licensing andgovernment use? Ifyes,could theKyrgyz
Government explain them?
Answer:
Yes.
TheTemporary Regulations onIndustrial Property (Article 6,paragraph 6.3)provide for
compulsory licensing incertain circumstances, specifically: (i)intheevent ofnon-use orinsufficient
useby(i)thepatent-holder ofaninvention within thefirstfouryears or(ii)bytheholder ofautility
model certificate within thefirstthree years, fromthedateoftheissuance ofthepatent orcertificate.
Iftheholder refuses toconclude alicensing agreement, anyperson desiring andprepared tousethe
protected object mayapply toaneconomic courtforacompulsory license. Iftheholder doesnotprovide
validreasons forthenon-use orinsufficient use,thecourt maygrant therequested license andimpose
-within itsdiscretion -limits onitsterms, including apayment obligation.
Inaddition, paragraph 6.5ofthose same temporary regulations provides fortheunlicensed
useofprotected inventions, utility models andindustrial designs incertain emergency situations (e.g.,
natural disasters, catastrophes, epidemics, etc.)withasubsequent payment ofappropriate compensation
totheholder.
According toitem5.6ofthe"Temporary Regulations ontheProcedure ofHandling Secret
Inventions, Utility Models andIndustrial Designs" oftheMinister ofEducation andScience of
29August 1995, theCabinet ofMinisters hastheright"forthepurpose ofthesecurity oftheKyrgyz
Republic" toauthorize theuseofsecret inventions, utility models andindustrial designs -without the
consent oftheholder -iftheappropriate compensation ispaidtotheholder.
Question 105.
Does theimportation ofgoods which areprotected byapatent fulfil thecondition of"working
thatpatent"?WT/ACC/KGZ/5
Page33
Answer:
Yes.
Question 106.
How doestheGovernment oftheKyrgyz Republic define "public interest" and"principles of
humanity" inthecontext ofexceptions topatentability?
Answer:
Reasons forexclusion frompatentability arebased ononlymoral principles supported byforce
ofpublic opinion.
Denial ofpatentability because ofcontradiction toprinciples ofhumanity andmorals isnot
nowbased onofficial normative documents andmaybeonlyaccompanied byreferences tosources
which haveastatement ofhumane ideasandmoral-ethic standards formed inthesociety, inconformity
withtheinternational standards setforth intheapplicable international agreements.
Question 107.
Please define thepatentable subject matter intheKyrgyz Republic asprovided forinArticle 27
oftheTRIPS Agreement.
Answer:
InaccordancewithArticle27oftheTRIPSAgreement,theTemporaryRegulationsonIndustrial
Property provide that"Aninvention isgiven legalprotection ifitisnew,contains inventive level, and
isapplicable forproduction". Thedraftpatent lawprovides thesame.
Question 108.
DotheTemporary Regulations onIndustrial Property foresee thepossibility forother useofthe
subject matter ofapatent without theauthorization oftheright holder according toArticle 31
oftheTRIPS Agreement?
Answer:
Accordingtoitem6.3ofTemporaryRegulationonIndustrialProperty,"[I]fapatentedinvention
isnotused, orisusedbelow itscapacity, foraperiod offouryears, orautility model foraperiod
ofthree years, fromthetimeoftheissuance ofthepatent orcertificate, anyperson willing andready
tousetheprotected object ofindustrial property, upon refusal bythepatent holder toenter intoa
licensing agreement, mayapply tothecourt oftheKyrgyz Republic [under Article 21ofthepresent
provisions] withapetition toobtain acompulsory licence. Ifthepatent holder doesnotprove that
hisinsufficient useoftheobject ofindustrial property iscaused byserious reasons, theCourt shall
provide forthespecified licence, along withadetermination ofthelimits ofuse,andtheamount, terms
andorder ofpayments. Licence feesshallbeestablished atalevelnotlessthanmarket price ofthe
licence."
According toitem6.5ofthesame Regulation, infringement oftheexclusive righttousean
object ofindustrial property doesnotinclude:WT/ACC/KGZ/5
Page34
- theuseofdevices, containing protected inventions, utility models orindustrial designs, where
theuseoccurs intheconstruction oruseoftransportation vehicles from other countries, or
support equipment forsuchvehicles, where suchtransportation vehicles aretemporarily or
incidentally present ontheterritory oftheKyrgyz Republic. Suchactions arenotrecognized
asviolation oftheexclusive righttoexploit theobjects ofindustrial property ifthetransportation
vehicles areowned bycitizens orlegalentities ofcountries providing thesamerights tocitizens
andlegalentities oftheKyrgyz Republic;
- useforthepurpose ofconducting scientific experimentation orresearch onadevice containing
aprotected invention, utility model orindustrial design;
- single preparations ofmedicines inpharmacies upon adoctor 'sprescription;
- useofdevices containing protected inventions, utility models orindustrial designs inconditions
ofnatural disasters, catastrophes, epidemics andother emergency circumstances, witha
subsequent payment ofreasonable compensation tothepatent holder;
- personal, non-commercial useofdevices containing protected inventions, utility models or
industrial designs; or,
- useofdevices containing protected inventions, utility models orindustrial designs, where such
devices arelegally introduced intocommerce.
Article 14ofthedraftPatent LawoftheKyrgyz Republic, entitled "Actions NotConsidered
asViolation oftheExclusive Right ofthePatent Holder", contains provisions similar toitem6.5of
theTemporary Regulations onIndustrial Property oftheKyrgyz Republic, except forthefollowing
passages: "single preparation ofmedicines inpharmacies uponadoctor 'sprescription" and"personal,
non-commercial useofdevices containing protected inventions, utility models orindustrial designs".
Thesixthpassageofitem6.5oftheTemporaryRegulationonIndustrialPropertyoftheKyrgyzRepublic
isrepeated inthedraftPatent Law, asfollows: "Useofdevices containing protected inventions, utility
models orindustrial designs protected byapreliminary patent, patent orcertificate, ifsuchdevices
arelegally putintocommerce according torights granted bythepatent holder. Further, aperson who,
withthepermission ofthepatent holder, purchases adevice containing invention, utility model or
industrial design ormanufactured withapplication ofthepatented method hastherighttouseorown
thisdevice without additional permission, unless otherwise stipulated bytheagreement."
Accordingtoitem7oftheTemporaryRegulationonIndustrialPropertyoftheKyrgyzRepublic,
"Any citizen orlegalentity who, before thedateofthepriority ofinvention, utility model, industrial
design andindependently fromitsauthor hasdesigned andusedadevice ontheterritory oftheKyrgyz
Republic identical totheinvention, orhasmade required preparations foritsuse,retains therightfor
future freeuse,without permission toexpand itsscope.
"The rightofprior usemaybetransferred toanindividual orlegalentity onlytogether with
theproduction linewhich hasbeenusedforitsproduction, orhasbeenprepared foritsproduction."
(f) Plant variety protection
Question 109.
Could theKyrgyz Government explain themain elements ofitsprotection inthe"Temporary
Regulations onBreeding Achievements"?WT/ACC/KGZ/5
Page35
Answer:
These regulations havealready beensubmitted totheWTO.
Apatent protecting abreeding achievement (alsotranslated as"selection achievement") that
meets therequirements oftheregulations maybeissued tothecreator thereof. Thepatent certifies
theexclusive right ofthepatent-holder touseandtolicence theuseofthebreeding achievement.
Abreeding achievement isanewvariety ofplant oranimal.
Iftheresult ofthepreliminary examination oftheapplication ispositive, apreliminary patent
valid forfiveyears isissued. Thetermofapatent onavariety ofplant is20years; onavariety
ofgrape, ornamental plant, fruitcroporforestry species, aswellastheirstocks, 30years; andon
avariety ofanimal, 25years. Thetermbegins onthedatethattheapplication wassubmitted.
Apatentable breeding achievement mustbe:(i)novel; (ii)distinguishable; (iii)homogeneous;
and(iv)stable.
Apatent-holder hastheexclusive righttouseandlicence theuseiftheachievement, including
its:(i)production andreproduction; (ii)planting; (iii)offer forsale; (iv)saleorother transfer;
(v)import orexport; and(v)storage forsuchpurposes.
4. Enforcement
(a) Civil judicial procedures andremedies
Question 110.
InWT/ACC/KGZ/3 itissaidthatKyrgyz lawdoesnotprovide anyspecial border measures.
When doestheKyrgyz Government intend toamend itslegislation accordingly?
Answer:
Kyrgyzpatent, within theCabinet ofMinisters oftheKyrgyz Republic, iscurrently studying
theexperienceofothercountriesincontrollingimportandexportonintellectualproperty,forthepurpose
ofsubmitting proposals totheCabinet ofMinisters oftheKyrgyz Republic onthenecessity oflegal
regulation ofimport andexport andthecontrol bytheState.
Question 111.
Document WT/ACC/KGZ/3 states thattheKyrgyz Republic isconsidering theadoption ofanew
criminal law. Isthere anyconcrete timeframe forsuchalaw?
Answer:
Currently, adraftofthenewCriminal Code isunder consideration byParliament. Itwill
probably beconsidered inthefirsthalfof1997. Itisimpossible topredict adefinite timeofenactment
oftheresolution, asthisdepends ontheworkload ofParliament.WT/ACC/KGZ/5
Page36
Question 112.
Does thecurrent criminal lawcontain anyspecific measures against counterfeit trademark or
pirated copyright goods?
Answer:
Thecurrent Criminal Code oftheKyrgyz Republic contains twoarticles which contemplate
criminal liability forillegal actions infringing intellectual property: Article 137,titled "Breach ofthe
Author 'sandInventor 'sRights"; andArticle 158(5), titled "Illegal Usage oftheTrade Marks".
Article 137provides:
"Issuance under one'sownname, oranyother misappropriation oftheauthor 'srights
onanother 'sscientific, literary, musical orartistic work; aswellasunauthorized
reproduction ordistribution ofsuch works ofart,isillegal andpunishable by
imprisonment foruptotwoyears, orbyafineofuptosixminimum wage rates.
Aclaim ofinvention without theconsent oftheinventor, amisappropriation ofthe
author 'srights ontheinvention, aswellasamisappropriation oftheauthor 'srights
onatechnological improvement, isillegal andpunishable byimprisonment forupto
twoyears, orbyafineofuptosixminimum wage rates."
Article 158(5) provides:
"Illegal useofanother 'strademark, production mark orcompany name, repeated after
anadministrative punishment imposed forthesame andearlier actions, ispunishable
byafineofuptoseventy minimum wage rates."
Kyrgyzpatent, oneofthedrafters ofthenewCriminal Code, hasproposed amendments and
supplements inthedraftCriminal Code totheGovernment oftheKyrgyz Republic. Article 151of
theCodeoftheKyrgyzRepubliconAdministrativeViolationsstates:"Illegaluseofanother'strademark,
product mark, orcompany name shallresult inafine....".
Question 113.
Please specify ifenforcement procedures asspecified inPartIIIoftheTRIPS Agreement are
orwillbeavailable under Kyrgyz law.DoesKyrgyz lawcomply witharticles 42-49oftheTRIPS
Agreement concerning theorganisation ofcivilandadministrative procedures?
Answer:
Existing legislation oftheKyrgyz Republic regulating civilandadministrative procedures and
remedies inconnection withtheenforcement ofintellectual property rights complies withArticles 42-49
oftheTRIPS Agreement, except Article 46.ThedraftAdministrative andCriminal Codes takeinto
account theprovisions ofArticle 46.
TheKyrgyz Republic commits thatitwillreview andproposal allnecessary amendments to
therelevant legislation andregulations forthepurpose ofbringing them intocompliance withthe
requirements ofPartIIIoftheTRIPS Agreement.WT/ACC/KGZ/5
Page37
(b) Provisional measures
Question 114.
Does Kyrgyz lawcomply withtherequirements ofprovisional measures according toArticle 50
oftheTRIPS Agreement?
Answer:
Withtheexception ofArticle 50.1(a), thejudicial authorities oftheKyrgyz Republic havethe
authority under existing lawtotakealloftheactions specified inArticle 50oftheTRIPS Agreement.
Inorder tocomply withArticle 50.1(a), anamendment totheproposed Customs Code willbedrafted.
Question 115.
Since Kyrgyz lawdoesnotcurrently provide anyspecial border measures related tointellectual
property, when doesitcomply withArticles 51.1oftheTRIPS Agreement?
Answer:
Seeanswer toquestion 111above.
5. Laws, Decrees, Regulations andOther Legal ActsRelating totheAbove
Question 116.
Please specify when thedraft lawsunder consideration bytheParliament willenter intoforce.
Answer:
Seeanswer toquestion 111above.
VI. TRADE-RELATED SERVICES REGIME
1. General
Question 117.
TheKyrgyz Republic isrequested toprovide theWorking Party assoon aspossible with a
substantialinitialofferonservicesintheGATSframework,bindingliberalmarketaccessconditions
andnational treatment guarantees onandm.f.n. basis forforeign service suppliers.
Answer:
TheGovernment ispreparing suchaproposal.WT/ACC/KGZ/5
Page38
2. Policy Affecting Trade inServices
(a) Government departments, agencies orother bodies
Question 118.
Paragraph 1:Attheendofparagraph 1itisstated, thattheregulatory system, withrelatively
fewminor exceptions, isimposed equally onboth foreign anddomestic suppliers. Arethese
exceptions theonesindicated inSection 3oftheMemorandum? Ifnot,could youplease indicate
alltheexceptions tonational treatment thatexistinaddition totheoneslisted under Section 3?
Answer:
Yes,allexceptions arementioned inPartVI,Section 3.
(d) Provisionsgoverningtheexistenceandoperationofmonopoliesorexclusiveservicesuppliers
Question 119.
Paragraph 1:Three classes ofmonopolies aredistinguished: "natural", "permitted" and
"temporary". Canyouexplain thedifference between a"temporary" anda"natural" monopoly?
Answer:
Thisdistinction isfullydescribed inPartII,Section 2(e)oftheMemorandum.
3. Market Access andNational Treatment
(e) Restrictions on,orrequirements ofspecific types oflegal entity through which aservice
maybesupplied
Question 120.
Paragraph 1:Canyouplease specify theterm "open" joint-stock company?
Answer:
An"open joint-stock company" isajoint-stock company, theshareholders ofwhich havethe
righttosellorotherwise transfer itsshares toanyperson without obtaining thepermission oftheother
shareholders.
(g) Measures providing forlessthatthetreatment accorded tonational services ofservice
suppliers
Question 121.
Paragraph 1:What isthereason fortherequirement thataKyrgyz legalentity thatoffers banking
services andisatleast 20percentforeign-owned must have aminimum fund thatistwice as
large astheonerequired forbanks having lessthan20percentforeign ownership? Dothere
alsoexistrequirements regarding aminimum fundforother forms ofestablishment asbranches
andsubsidiaries? Ifyes,isadifference made between branches offoreign entities andbranches
ofentities owned domestically? What arethecriteria toqualify asa"first class" foreign bank?WT/ACC/KGZ/5
Page39
Answer:
TheNational Bank oftheKyrgyz Republic hascalculated theoptimal amount oftheminimum
charter capital forcommercial banks operating ontheterritory oftheKyrgyz Republic. Thelower
minimum fundrequirement forbanks thatarepredominantly locally owned wasmade necessary by
theneedtodevelop adomestic network offinancial institutions andadomestic financial market capable
ofmaximizing theattraction ofthefreemonetary resources ofKyrgyz legalentities andnatural persons.
On13September 1996, aresolution oftheNational Bank established newregulations on
minimum fundrequirements. These regulations provide asfollows:
Forbanks withlessthan20percentforeign participation operating asof13September 1996:
15million Somby31December 1997
20million Somby31December 1998
25million Somby31December 1999
30million Somby31December 2000
Forbanks with lessthan20percentforeign participation commencing operations after
13December 1996:
15million Somby31December 1997
25million Somby31December 1998
35million Somby31December 1999
45million Somby31December 2000
Forbanks with20percentormore foreign participation andbranches offoreign banks:
30million Somby31December 1997
40million Somby31December 1998
45million Somby31December 1999
50million Somby31December 2000
Theminimum fundrequirements forbranches andsubsidiaries offoreign banks arethesame
asforalocalbank20percentormore owned byforeigners. Until 31December 1997, theexisting
minimum fundrequirements remain valid: 10million Somforabankwithlessthan20percentforeign
participation and20million Somforabankwith20percentormore foreign participation orabranch
ofaforeign bank.
Thedetermination astowhether aforeign bank isa"first class" bankismade onthebasis
oftheMOODY 'Srating established inaccordance withinternational banking practice.
5. Description oftheMarket andtheMechanism forRegulating theMost Prominent Service
Sectors
(a) Legal services
Question 122.
TheMemorandum notes thatlawyers withthree years experience mayapply foralicence tooffer
non-criminal legalservices -andarerequired totakeanoralexam -isthisalsothecaseforlawyers
seeking onlytooffer advice oninternational laworthelawoftheir owncountry?WT/ACC/KGZ/5
Page40
Answer:
Yes.
Question 123.
Paragraph1:Canforeignpersonsengageinallthreecategoriesoflawyers(including"government-
"and"in-house-" lawyers?
Answer:
Foreign citizens maynotserve asgovernment lawyers. They may, however, engage inall
other non-criminal lawyering activities.
Question 124.
Paragraph 2:Doonly"private practice lawyers" needalicence toofferlegalservices tothepublic?
Answer:
Yes.
(b) Telecommunications services
Question 125.
DoesKyrgyztelecom haveamonopoly forlong-distance andinternational communications oronly
forlong-distance andinternational voice?
Answer:
Kyrgyztelecom hasamonopoly forallinternational andlong-distance communications services.
Question 126.
Isthere adateforeseen fortheendoftheKyrgyztelecom monopoly forinter-city andinternational
lines?
Answer:
According toResolution No.167oftheCabinet ofMinisters of16May1995, thetermination
dateofKyrgyztelecom 'smonopoly forlong-distance andinternational linesisprovided tooccur in
2008.
Question 127.
Istheregulator independent from theoperator Kyrgyztelecom?
Answer:
Yes.WT/ACC/KGZ/5
Page41
Question 128.
Isthere arégime fornon-discriminatory cost-based interconnection?
Answer:
Yes.
Question 129.
Isthere arégime fortransparent andnon-discriminatory licensing procedures?
Answer:
Yes.
Question 130.
Arethere competition obligations ontheabuse ofdominant positions, cross-subsidies andmisuse
ofinformation?
Answer:
Thegeneral statutory provisions establishing liabilities fortheabuse ofdominant position in
agoods orservices market areapplicable totelecommunications service providers.
Question 131.
Paragraph 1:Inthefirstsentence, itisstated thattelephone services arealmost wholly provided
byKyrgyztelecom. Could youplease describe theeconomic structure ofthetelecommunications
market inamore detailed manner (e.g.listing ofmonopoly andexclusive rights, precise scope
ofthemonopoly ofKyrgyztelecom, number orexisting suppliers besides Kyrgyztelecom etc.)?
Answer:
Kyrgyztelecom enjoys theexclusive righttorender alllong-distance andinternational telephone
communication services untiltheyear2008.
Inaddition toKyrgyztelecom, anumber ofenterprises rendering services oncellular, paging
andother types ofcommunication operate inthetelecommunication network ofthecountry. There
areabout 10suchcompanies. Inthesphere oftelecommunications, themotsignificant are:(i)the
jointventure Katel, anoperator ofcellular communications; (ii)thejointventure Areopag-Bishkek,
anoperator ofpager andmobile radio communications; (iii)thejointventure Smart-Com, anoperator
ofpager communications; and(iv)thejointventure Geliopag, anoperator ofpager communications.
Inthesphere ofdatatransmission, themost significant isSvyaz-Info.
Question 132.
Dothere existanyplans toliberalise thetelecommunications market?WT/ACC/KGZ/5
Page42
Answer:
Inorder toliberalize thetelecommunications market, theprivatization ofKyrgyztelecom is
planned tooccur in1997. Thecurrent planfortheprivatization ofKyrgyztelecom stipulates thatthe
Statewillmaintain acontrolling interest (51percent). About 40percentoftheshares willbeplaced
through theorganization ofacompetitive tender andtheremaining shares willbereserved forthework
collective andforsaleatcoupon auctions.
Question 133.
Inthelastsentence itisstated that"other firms desiring tooffer telecommunication services
utilizing these lines must enter intoanagreement withKyrgyztelecom". What isthemeaning
of"enter intoandagreement"? IsKyrgyztelecom freetosettheconditions ofthese "agreements"?
Answer:
Afirmwishing torender telecommunications services mustobtain alicence fromtheMinistry
ofCommunications; andincasesuchfirmdesires toutilize anyoftheequipment ofKyrgyztelecom,
itshould "conclude anagreement" onthatutilization withKyrgyztelecom. "Toconclude anagreement"
means thattheconcerned firmshould negotiate theconditions andtheterms ofutilization ofthe
equipment belonging toKyrgyztelecom.
Question 134.
Dotheexclusive rights ofKyrgyztelecom include allkinds ofinfrastructure? What about e.g.
providers ofservices provided overradio frequencies? Dotheyalsohavetoenter anagreement
withKyrgyztelecom?
Answer:
Exclusive rights ofKyrgyztelecom arevalidonlyinrelation totheservices oftelephone long-
distance andinternational electronic communications. TheDecree ofthePresident No.VP-179 of
28February 1996, created theCommittee onRadio Frequencies forthepurpose ofassigning theradio
frequency spectrum. Inorder touseradiofrequencies, thereisnorequirement toconclude anagreement
withKyrgyztelecom.
(e) Banking services
Question 135.
Itisstated thattheestablishment ofabranch ofa"first class" foreign bank needs alicence similar
tothatrequired fordomestic banks. What isthedefinition of"first class banks"? Canwe
understand thatsuchameasure doesnothavealegalbasis? WilltheKyrgyz Republic introduce
provisions concerning theestablishment offoreign banks?
Answer:
Thedetermination astowhether aforeign bank isa"first class" bank ismade onthebasis
oftheMOODY 'Srating established inaccordance withinternational banking practice.WT/ACC/KGZ/5
Page43
TheNational Bank oftheKyrgyz Republic haspromulgated regulations concerning the
establishment ofbranches offoreign banks. These regulations areavailable inAttachment E.
Question 136.
Paragraph 4:What ismeant by"theState hasaminority ownership interest"? Does theState
hold10percentoftheshares inallthecommercial banks? Isthisaminimum requirement to
befulfilled forevery commercial bank inorder tobelicensed?
Answer:
Thestatement simply describes thecurrent situation, which istheresult oftheprivatization
ofcertain former State-owned banking entities. TheStatedoesnotholda10percentownership interest
inallcommercial banks. Most commercial banks nowinoperation are100percentprivate-owned.
There isnorequirement thattheState haveanownership interest inabanking entity.
Question 137.
Lastparagraph (page 60):Why dobranches ofaforeign bank needaminimum capital, which
ishigher thanbranches ofdomestic banks?
Answer:
Seeanswer toquestion 121above.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
2. Economic Integration, Customs Union andFreeTrade Agreements
(b) Customs Union Agreements
Question 138.
When doestheKyrgyz Republic expect toratify theCustoms Union Agreement?
Answer:
Theagreement providing forthejoining oftheKyrgyz Republic totheCustoms Union among
Russia, Kazakstan andBelarus wassubmitted totheParliament in1996. Parliament intends toconsider
thisissueduring 1997. Atthesametime, Parliament willconsider theGovernment 'spolicy ofacceding
totheWTO.
Question 139.
Towhatextent doestheKyrgyz Republic consider thatitwillremain a"Customs Territory" within
theWTO definition oncetheCustoms Union Agreement withtheRussian Federation, Belarus
andKazakstan isratified?WT/ACC/KGZ/5
Page44
Answer:
IftheCustoms Union Agreement isratified, itislikely theKyrgyz Republic willbecome part
ofalarger single (united) customs territory where acommon external tariff willoperate.
Question 140.
Please provide theWorking Party withthetextoftheCustoms Union Agreement andallrelated
legislative andadministrative acts.
Answer:
TheCustomsUnionAgreement,otherrelatedinternationalagreements,andallrelatedlegislative
andadministrative actsthathavenotalready beensubmitted totheWTO areincluded inAttachment F.
Thefollowing actswhich relate totheCustoms Union Agreement havealready beensubmitted
totheWTO:
- Resolution No.56oftheCabinet ofMinisters OntheProcedure ofExport andImport ofGoods
(works andservices) ontheTerritory oftheKyrgyz Republic of6February 1996. (Itwill
come intoforce from thedateofratification oftheCustoms Union Agreement bythe
Parliament.);
- Resolution No.119oftheCabinet ofMinisters OnApproving Rules fortheEquipping of
Transport Facilities (Containers) forTransportation ofGoods with Customs Seals of
20March 1996;
- Resolution oftheCabinet ofMinisters OnApproving theListofCountries-Users ofthe
Preferences Scheme oftheKyrgyz Republic of6February 1996;
- Instructions No.05-06/12 oftheStateCustoms Inspectorate OntheProcedure forControlling
Goods Exported from theTerritory oftheCustoms Union of24January 1996.
Question 141.
TheKyrgyz Republic iscommitted tointroducing acommon external tariff withitsCustoms Union
partners. How, inthelight ofthiscommitment, doestheKyrgyz Republic intend toproceed
withrespect tothataspect oftheaccession negotiations pertaining totariffs?
Answer:
Pending theoutcome oftheratification process, theKyrgyz Republic willremain entirely in
control ofitsowntariff régime andwillproceed tonegotiate onthatbasis.
Question 142.
PleaseprovidedetailedinformationonthetimetableforeseenintheCustomsUnionforharmonising
legislation affecting foreign trade. Howwillfuture amendments ornewlegislation bedealt with
bytheCustoms Union? How doestheKyrgyz Republic intend toproceed intheWorking Party
discussions inthelightofthiscommitment toharmonize legislation?WT/ACC/KGZ/5
Page45
Answer:
There isnoprecise timetable foreseen. Theexistence ofthecommitment toharmonize
legislation isentirely dependent onthefuture ratification oftheCustoms Union Agreement. The
Kyrgyz Republic intends toconsult withitspotential Customs Union partners withrespect toany
commitments undertake withtheWTO toensure thatsuchcommitments willultimately bereflected
inthelegislation ofallsuchpartners.
(c) FreeTrade Area Agreements
Question 143.
Please provide theWorking Party withthetextsofallfreetrade agreements towhich theKyrgyz
Republic isaparty.
Answer:
TheAgreements areincluded inAttachment G.
Question 144.
Foreachfreetrade agreement, please provide details ofthepercentage trade overall andineach
major sector which isexcluded from thefreetrade régime.
Answer:
TheMinistry ofIndustry andTrade willattempt toprovide thisinformation.
ANNEX 5 INFORMATION ONTECHNICAL BARRIERS INTRADE
Question 145.
Onpage 144,theenquiry points related totheTBT Agreement areindicated. HastheKyrgyz
Republic established enquiry points according toArticle 7anditsannex BoftheSPSAgreement?
Answer:
Theestablishment oftheenquiry point required byArticle 10.1oftheTBTAgreement isin
process. TheState Fund ofStandards, classifiers oftechnical-economic information, international
(regional) standards, rulesandrecommendations onstandardization andthenational standards offoreign
countries, which willperform thefunction oftherequired enquiry point, isnowbeing established.
Thelegal document ontheestablishment ofthisState Fund ofStandards hasbeendeveloped and
presented totheCabinet ofMinisters foradoption inadraftresolution entitled "OntheOrganization
oftheWork onStandardization, Maintaining Unity ofMeasurement andtheCertification ofGoods
andServices".
Theinformation oftheSPSAgreement iswithin thecompetence oftheMinistry ofHealth
andMinistry ofAgriculture. Plans forthecreation oftherequired enquiry points arestillunder
development.