WT/TPR/S/411/Rev.1  
15 July 2021  
(21-5581) Page: 1/174 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
KYRGYZ REPUBLIC  
Revision  
This report, prepared for the third Trade Policy Review of Kyrgyz Republic, has been drawn up by 
the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Kyrgyz Republic on its trade policies and 
practices.  
 
Any technical questions arising from this report may be addressed to Mark Koulen, 
Tel: +41 22 739 5224, Cato Adrian, Tel: +41 22 739 5469, and Denby Probst, 
Tel: +41 22 739 5847.  
 
Document WT/TPR/G/411 contains the policy statement submitted by Kyrgyz Republi c. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in English.   WT/TPR/S/ 411/Rev.1 • Kyrgyz Republic  
 
- 2 - 
 
  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  12 
1.1   Main Features of the Economy  ................................ ................................ ..................... 12 
1.2   Recent Economic Developments  ................................ ................................ ................... 15 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 19 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 19 
1.3.2    Trends and patterns in FDI  ................................ ................................ ....................... 23 
2   TRADE AND INVESTMENT REGIMES ................................ ................................ ...........  26 
2.1   General Framework  ................................ ................................ ................................ ....26 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 29 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 31 
2.3.1    WTO ................................ ................................ ................................ ...................... 31 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 32 
2.3.2.1    FTAs predating accession to the Eurasian Economic Union  ................................ .......... 32 
2.3.2.2    Accession to the Eurasian Economic Union  ................................ ............................... 32 
2.3.2.3    Participation in agreements concluded by the EAEU  ................................ ................... 33 
2.3.2.4    Enhanced Partnership and Cooperation Agreement with the European Union  ................ 33 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 33 
2.4   Investment Regime and Policy  ................................ ................................ ..................... 34 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  38 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 38 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 38 
3.1.1.1    Free (special) economic zones  ................................ ................................ ................ 43 
3.1.1.2    Trade facilitation  ................................ ................................ ................................ ...44 
3.1.1.3   Customs valuation  ................................ ................................ ................................ 48 
3.1.1.3.1    Minimum import control prices  ................................ ................................ ............. 50 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 52 
3.1.2.1    Non-preferential  ................................ ................................ ................................ ...53 
3.1.2.2    Preferential  ................................ ................................ ................................ .......... 54 
3.1.2.3    Free (special) economic zones  ................................ ................................ ................ 55 
3.1.3    Tariffs  ................................ ................................ ................................ .................... 56 
3.1.3.1    Applied rates  ................................ ................................ ................................ ........ 56 
3.1.3.2    Bound rates  ................................ ................................ ................................ ......... 59 
3.1.3.3    Applied rates that exceed the bound rates  ................................ ............................... 60 
3.1.3.4    Temporary measures  ................................ ................................ ............................. 61 
3.1.3.5    Tariff-rate quotas (TRQs)  ................................ ................................ ....................... 64 
3.1.3.6    Preferential tariffs  ................................ ................................ ................................ .66 
3.1.4    Other charges affecting imports  ................................ ................................ ................. 67 
3.1.4.1    Excise  ................................ ................................ ................................ .................. 68 WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 3 - 
 
  3.1.4.2    VAT ................................ ................................ ................................ ..................... 69 
3.1.4.3    Sales tax  ................................ ................................ ................................ ............. 71 
3.1.5    Import prohibitions, restrictions, and licensing  ................................ ............................ 72 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 74 
3.1.7    Other measures affecting imports  ................................ ................................ .............. 76 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 76 
3.2.1    Customs procedures and requirement  ................................ ................................ ........ 76 
3.2.2    Taxes, charges, and levies  ................................ ................................ ........................ 77 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 78 
3.2.3.1    Export control  ................................ ................................ ................................ .......79 
3.2.4    Export support and promotion  ................................ ................................ ................... 81 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................ ..83 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......83 
3.3.1    Incentives  ................................ ................................ ................................ ............... 83 
3.3.2    Standards and other technical requirements  ................................ ............................... 86 
3.3.2.1    Standards  ................................ ................................ ................................ ............ 86 
3.3.2.2    Technical regulations  ................................ ................................ ............................. 86 
3.3.2.3    Conformity assessment ................................ ................................ .......................... 87 
3.3.3    Sanitary and  phytosanitary requirements  ................................ ................................ ....88 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 90 
3.3.4.1    Competition  ................................ ................................ ................................ ......... 90 
3.3.4.2    Price controls ................................ ................................ ................................ ........ 94 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 95 
3.3.6    Government procurement  ................................ ................................ ......................... 97 
3.3.7    Intellectual property rights  ................................ ................................ ......................  103 
3.3.7.1    Overview of legal and institutional framework  ................................ .........................  103 
3.3.7.2    Main policy and legal developments during the review perio d ................................ ... 104 
3.3.7.3    Enforcement of intellectual property rights  ................................ .............................  106 
4   TRADE POLICIES BY SECTOR  ................................ ................................ ...................  108  
4.1   Agriculture, Forestry, and Fisheries  ................................ ................................ .............  108 
4.1.1    Agriculture  ................................ ................................ ................................ ............  108 
4.1.1.1    Trade measures  ................................ ................................ ................................ .. 110 
4.1.1.1.1    Imports  ................................ ................................ ................................ ..........  110 
4.1.1.1.2    Exports  ................................ ................................ ................................ ...........  112 
4.1.1.2    Domestic support  ................................ ................................ ................................  112 
4.2   Mining and Energy  ................................ ................................ ................................ .... 113 
4.2.1    Mining  ................................ ................................ ................................ ..................  113 
4.2.2    Energy  ................................ ................................ ................................ .................  116 
4.2.2.1    General features  ................................ ................................ ................................ . 116 
4.2.2.2    Electricity  ................................ ................................ ................................ ...........  117 WT/TPR/S/ 411/Rev.1 • Kyrgyz Republic  
 
- 4 - 
 
  4.2.2.3    Hydrocarbons  ................................ ................................ ................................ ..... 118 
4.2.2.4    Coal ................................ ................................ ................................ ..................  119 
4.2.2.5    Energy policy at the EAEU level  ................................ ................................ ............  119 
4.3   Manufacturing  ................................ ................................ ................................ ..........  119 
4.4   Services  ................................ ................................ ................................ ..................  124 
4.4.1    Financial services  ................................ ................................ ................................ ... 124 
4.4.1.1    Banking  ................................ ................................ ................................ .............  125 
4.4.1.2    Non-banking financial and credit organizations sector  ................................ ..............  129 
4.4.1.3    Insurance  ................................ ................................ ................................ ..........  130 
4.4.1.4    Capital markets  ................................ ................................ ................................ .. 133 
4.4.2    Telecommunication services  ................................ ................................ ....................  135 
4.4.2.1    Recent market and policy developments  ................................ ................................  135 
4.4.2.2    Legal and institutional framework  ................................ ................................ .........  137 
4.4.3    Transport services  ................................ ................................ ................................ . 140 
4.4.3.1    Transport infrastructure challenges and policy  ................................ ........................  140 
4.4.3.2    Road transport services  ................................ ................................ .......................  142 
4.4.3.3    Rail transport services  ................................ ................................ .........................  144 
4.4.3.4    Air transport services  ................................ ................................ ..........................  145 
4.4.4    Tourism  ................................ ................................ ................................ ................  147 
APPENDIX TABLES  ................................ ................................ ................................ ....... 150  
 
CHARTS  
 
Chart 1.1 Merchandise trade by main HS sections,  2012 and 2019  ................................ .........  20 
Chart 1.2 Merchandise trade by main origin and destination, 2012 and 2019  ...........................  21 
Chart 3.1 Frequency distribution of MFN tariff, 2012 and 2020 ................................ ...............  57 
Chart 4.1 Exports and imports of agricultural products, 2012 -19 ................................ ..........  110 
Chart 4.2 Applied and bound rates by agricultural broad products, 2012 and 2020  .................  111 
Chart 4.3 Gold in total merchandise exports, 2000 -17 ................................ ........................  114 
Chart 4.4 Manufacturing economic activity by type, 2014 -19 ................................ ...............  121 
Chart 4.5 Average annual number of employees, by type of manufacturing, 2014 -19 .............  121 
Chart 4.6 Insurance premiums according to type of insurance, 2019  ................................ .... 132 
 
TABLES  
 
Table 1.1 Selected economic indicators, 2012 -19 ................................ ................................ . 12 
Table 1.2 State revenue and expenditure, 2012 -19 ................................ ..............................  15 
Table 1.3 Balance of payments, 2012 -19 ................................ ................................ ............  17 
Table 1.4 Trade in services, 2012 -19 ................................ ................................ ..................  22 
Table 1.5 FDI by economic activity, 2012 -19 ................................ ................................ ....... 23 
Table 1.6 FDI by partner country, 2012 -19 ................................ ................................ .........  24 WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 5 - 
 
  Table 2.1 Bilateral investment agreements  ................................ ................................ ..........  36 
Table 3.1 Main national legislation related to cus toms, 2020  ................................ .................  39 
Table 3.2 Revenues collected at the border, 2013 -19 ................................ ...........................  41 
Table 3.3 Implementation of the TFA  ................................ ................................ ..................  45 
Table 3.4 TFIs and comparison to CAREC members, 2016 -19 ................................ ................  47 
Table 3.5 Main legislation, regulations, and decisions on customs valuation, 2020  ....................  49 
Table 3.6 List of products  subject to minimum import prices from the EAEU, 2020  ...................  51 
Table 3.7 Structure of the tariff schedule, 2012 and 2020  ................................ .....................  57 
Table 3.8 Summary analysis of the Kyrgyz Republic MFN tariff, 2020  ................................ ..... 58 
Table 3.9 Tariff lines where the UCT is greater than the bound tariff, by HS section and  
product group (WTO definition), 2020  ................................ ................................ ................  60 
Table 3.10 Summary of temporary deviations from the UCT, 2015 -19a ................................ ... 62 
Table 3.11 Temporary duty rates, 2018 -20 ................................ ................................ .........  63 
Table 3.12 Products subject to TRQs, 2020  ................................ ................................ .........  64 
Table 3.13 Analysis of preferential tariffs, 2020  ................................ ................................ ... 67 
Table 3.14 Goods subject to excise tax, 2020  ................................ ................................ ...... 68 
Table 3.15 VAT exemptions and those with zero rate of duty, 2020  ................................ ........  70 
Table 3.16 VAT exemptions on imported goods, works, and services  ................................ ...... 71 
Table 3.17 Measures imposed, 12 August 2015 -1 November 2020  ................................ .........  75 
Table 3.18 Laws and regulations on export controls, 2020  ................................ ....................  81 
Table 3.19 Main elements of the Action Pla n in the Export Development Program, 2019 -22 ...... 82 
Table 3.20 Customs Union unified sanitary, veterinary, and SPS quarantine measures ..............  88 
Table 3.21 Statistics on the State Agency for Antimonopoly Regulation's activities, 2015 -19 ..... 91 
Table 3.22 Main rules, legislation, and regulations on competition, 2020  ................................ . 92 
Table 3.23 Products and services subject to price control  ................................ ......................  95 
Table 3.24 Overview of governm ent procurement, 2017 -19 ................................ ................  101 
Table 3.25 Data on contracts concluded with non -residents of the Kyrgyz Republic, 2018  ....... 102 
Table 3.26 Trends in intellectual property, 2013 -19 ................................ ............................  106 
Table 4.1 Gross output value and production volumes of agriculture, hunting, and forestry,  
2012-19 ................................ ................................ ................................ .......................  108 
Table 4.2 Exports of non -monetary gold and silver by destination, 2014 -19 ..........................  114 
Table 4.3 Trade balance of selected energy products, 2012 -19 ................................ ............  116 
Table 4.4 Electricity balance, 2012 -19 ................................ ................................ ..............  117 
Table 4.5 Overview of industrial manufacturing sector, 2014 -19 ................................ ..........  122 
Table 4.6 Financial services, 2013 -19 ................................ ................................ ...............  125 
Table 4.7 Main laws and regulations for the banking sector, 2020  ................................ ........  127 
Table 4.8 Overview of microcredit and credit union sectors, 2014 -19................................ .... 130 
Table 4.9 Entities engaged in the securities market, by activity, 2018  and 20 19 ....................  134 
Table 4.10 Telecommunications indicators, 2012 -18 ................................ ...........................  135 
Table 4.11 Freight and passengers by types of transport, 2 012-19 ................................ ....... 140 
Table 4.12 Air service agreements  ................................ ................................ ...................  146 WT/TPR/S/ 411/Rev.1 • Kyrgyz Republic  
 
- 6 - 
 
  Table 4.13 Selected tourism sector indicators, 2013 -18 ................................ ......................  147 
Table 4.14 Tourism enterprises and organizations, recreation institutions by form of  
ownership, 2018  ................................ ................................ ................................ ............  148 
 
BOXES  
 
Box 3.1 Customs -related treaties adhered to as a result of accession to the EAEU  ....................  39 
Box 3.2 Trade remedy legislation, 2020  ................................ ................................ ..............  74 
Box 3.3 National technical regulations establishing product requirements not included in  
the EAEU Common List  ................................ ................................ ................................ ..... 87 
Box 3.4 Types of p rocurement methods prescribed in Annex 25 to the EAEU Treaty and in the 
procurement law of the Kyrgyz Republic  ................................ ................................ .............  98 
Box 3.5 Thresholds  ................................ ................................ ................................ ........  100 
Box 4.1 Main direction of industrial policy  ................................ ................................ .........  123 
Box 4.2 Overview of banking sector, 31 December 2019  ................................ .....................  126 
Box 4.3 Banking sector , main directions for 2018 -21 ................................ ..........................  128 
Box 4.4 Overview of insurance sector, as at 1 January 2019  ................................ ...............  131 
Box 4.5 Overview of capital markets, 2019 -20 ................................ ................................ ... 133 
 
APPENDIX TABLES  
 
Table A1.  1 Merchandise exports by HS section and main chapter, 2012 -19 ..........................  150 
Table A1.  2 Merchandise im ports by HS section and main chapter, 2012 -19 ..........................  152 
Table A1.  3 Merchandise exports by trading partner, 2012 -19 ................................ .............  154 
Table A1.  4 Merchandise imports by trading partner, 2012 -19 ................................ .............  155 
Table A2.  1 Notifications to the WTO, 1 July 2013 -29 April 2020  ................................ ..........  156 
Table A3.  1 List of goods for which different tariff treatment applied to the Kyrgyz Republic  
compared with other EAEU members during the transition period ................................ .........  158 
Table A3.  2 Import prohibitions and restrictions on the EAEU Single List, 2020  ......................  164 
Table A3.  3 Export prohibitions and restrictions on the EAEU Single List, 2020  .......................  168 
Table A3.  4 SPS legislation adopted at the EAEU level  ................................ ........................  172 
Table A3.  5 SPS legislation adopted at the national level, 2013 -18 February 2020  .................  173 
  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 7 - 
 
  SUMMARY  
1. The Kyrgyz  Republic  is a land -locked country in Central Asia. Internal transport is hampered 
by rugged topography and the need for better infrastructure. Current GDP per capita is about 
USD 1,400. A significant gap in earnings compared with certain neighbouring countries enc ourages 
many Kyrgyz citizens, about one third of the workforce, to make their living abroad. Although 
agriculture still accounted for 18% of GDP in 2019, down from  32% in 2014, the Kyrgyz  Republic  is 
increasingly becoming a services economy. Moreover, the Kyrgyz  Republic  has a sizable informal 
economy, particularly in activities related to trade, hospitality, transportation, and agriculture, 
estimated to equal between 24% and 40% of the official GDP.  
2. The Kyrgyz economy recorded several years of steady growth before the em ergence of the 
COVID -19 pandemic in 2020. GDP in constant prices expanded at an annual rate of between 4%  and 
5% from 2014 to 2019. The entry of the Kyrgyz  Republic  into the Eurasian Economic Union (EAEU) 
in 2015 facilitated the regularization of visa and work permits for migrating Kyrgyz labourers, and 
affected bilateral trade and investment flows positively. Remittances amounted to approximately 
USD 2.5 billion (31% of GDP) in 2017.  
3. Central government budget deficits have been on a declining trend in rece nt years, and the 
authorities seek to contain public debt below 60% of GDP. Most of the debt is external and 
denominated in foreign currency. In addition, the budget balance excludes energy subsidies that 
remain substantial. The authorities have few moneta ry and exchange rate options. The international 
capital account is open, and remittances contribute to widespread dollarization of the local economy. 
The National Bank of the Kyrgyz  Republic  has been targeting inflation at 5% to 7% per year, and 
has unoffi cially been pegging the Kyrgyz som to the US dollar to help achieve this objective.  
4. A very large domestic savings -investment gap has its counterpart in a large current account 
deficit. A substantial merchandise trade deficit, about USD 2 billion per year, is accompanied by 
much smaller, but persistent, deficits in trade in services. The Kyrgyz  Republic  imports most 
manufactured articles, and it is a net importer of fuels, mineral products, and agricultural goods, 
particularly processed foods, despite its si gnificant agricultural potential. The principal sources of 
merchandise imports are China, the Russian Federation, and Kazakhstan. One single commodity 
(gold) accounts for a major share of merchandise exports. Re -exports are significant, as open trade 
policies have encouraged the expansion of bazaars that serve larger markets in Central Asia. The 
main destinations for merchandise exports are the United Kingdom, Kazakhstan, and the Russian 
Federation.  
5. The Kyrgyz economy may have contracted by as much as 10% i n 2020 due to the 
COVID -19 pandemic. Prolonged border closures and lockdowns had a severe negative impact on 
sectors such as commerce, tourism, and travel. In addition, remittances declined sharply with ripple 
effects on domestic consumption and constructi on activity. The currency peg was relaxed in 
March  2020, resulting in a marked depreciation of the Kyrgyz som. Multilateral and bilateral donors 
provided support to mitigate the expected external financing gap.  
6. Poor governance seems to be a major impedimen t to the development of a sound business 
and investment climate in the Kyrgyz  Republic . Recent reforms to improve the quality of governance 
include measures directed at combating corruption, enhancing the integrity of the judicial and law 
enforcement syste m, and improving the efficiency and transparency of public administration more 
generally.  
7. The Kyrgyz  Republic  accepted the 2005 Protocol Amending the TRIP S Agreement on 
6 February 2016 and the 2014 Protocol concerning the Trade Facilitation Agreement on 
6 December  2016. The Kyrgyz  Republic  is a member of several groups in the WTO, including the 
group of Article  XII Members and the group of low -income economies in transition. It participates in 
discussions under the Joint Ministerial Statement Initiatives la unched in December 2017 on 
investment facilitation for development and on micro, small, and medium -sized enterprises. There 
are several unfulfilled notification obligations, notably with respect to import licensing and subsidies.  
8. The Kyrgyz  Republic  became  a member of the EAEU on 12  August  2015. Several free trade 
agreements ( FTAs) predating the accession to the EAEU, notably with members of the 
Commonwealth of Independent States, remain in force. The implementation of the EAEU Treaty by WT/TPR/S/ 411/Rev.1 • Kyrgyz Republic  
 
- 8 - 
 
  the Kyrgyz  Republic  is subject to certain transitional measures and temporary exceptions to the 
EAEU's Unified Customs Tariff (UCT). By virtue of its membership in the EAEU, the Kyrgyz  Republic  
is a party to the FTA with Viet  Nam that entered into force in 2016 and the  interim agreement leading 
to the establishment of a free trade area with the Islamic Republic of Iran that entered into force in 
October 2019 . In July 2019, the Kyrgyz  Republic  concluded an Enhanced Partnership and 
Cooperation Agreement with the European  Union . 
9.  The Kyrgyz  Republic  maintains an open investment regime, with very few formal entry or 
ownership restrictions and no formal screening mechanism. Although institutional weaknesses and 
implementation challenges have negatively affected the country's attrac tiveness to foreign 
investment, FDI inflows recently increased and the country improved its ranking on the World Bank 
Doing Business index. The promotion of export -oriented manufacturing is one of the key objectives 
of investment policy in recent national economic development programmes. FDI has been shifting 
from mining to non -mining activities. During 2012 -19, nearly three quarters of the total FDI 
(USD  7.2 billion) was channelled towards manufacturing; professional, scientific , and technical 
activities; and financial services. The origin of the foreign investment was principally China, the 
Russian Federation, and Canada.  
10. The customs legal framework and practice under went significant revisions during the review 
period as a result of joining the EAEU custom s union; processes and procedures are now harmonized 
at the level of the customs union. In particular, the EAEU Customs Code is now the main legal 
instrument for customs matters, customs revenues are shared among the parties and the 
Kyrgyz  Republic receive s a fixed percent age, and there is free movement of goods between the 
territories of the EAEU without the need for a customs declaration.  
11. Since 2013, the Kyrgyz  Republic  has embarked on its single window application, known as the 
Single Window for Foreign Trade Information System (SWIS) or the Tulpar System. As at 2020, the 
SWIS differed from the single window applications of other EAEU member States , but work was 
underway to ensure interoperability and the SWIS was being modernized. The Kyrgyz  Republic  has 
been a strong supporter of the Trade Facilitation Agreement ( TFA) and is actively working on 
implementation of the provisions through its Council for Trade Facilitation. Most of its TFA 
commitments were expected to be implemented by the end of 2020.  
12. Since  joining the EAEU, the tariff regime has undergone significant change as the 
Kyrgyz  Republic now applies the UCT. Thus, the average applied most-favoured nation ( MFN) rate 
increased from 5%  in 2012 to 8.4% in 2020, the number of duty -free lines decreased s ignificantly, 
and tariff -rate quotas are now applied on four categories of products (various  meat products and 
raw cane sugar).  The Kyrgyz  Republic submitted changes to its bound rates to align them with the 
EAEU UCT in 2015 , pursuant to Article  XXVIII  of the GATT  1994; these have not yet been finalized, 
thus 3,880 tariff lines exceed their respective WTO bound rate of duty. As a result of the COVID -19 
pandemic, the EAEU provided temporary import tariff relief for certain critically imported goods, e.g. 
food, medical, and baby products.  
13. The Kyrgyz  Republic  continues to apply certain indirect taxes, i.e. VAT, excise tax, and sales 
tax, on imported goods. In addition, an environmental pollution fee on foreign freight carriers was 
applied at the border during the period 2015 -19. Since the previous Review, exci se duty rates have 
increased on most products, particularly on tobacco products. A standard 12% rate of VAT is charged 
on the sale of goods, works, and services supplied in the Kyrgyz  Republic , including on most imports. 
There is a movement within the EAEU  to harmonize indirect taxes.  
14. The Kyrgyz  Republic' s import and export restrictions and/or prohibitions were amended during 
the review period,  as the country  adopted the EAEU 's Single List of measures. As such, there are 
7 categories of goods subject to imp ort prohibition and 6 subject to export prohibition; 15  categories 
of goods were required to have an import licen ce and 17 were subject to export licensing 
requirements; and certain steel products had surveillance measures (automatic licensing). Two of 
the product categories of export prohibitions on the Single List were temporary measures invoked 
due to the COVID -19 pandemic; in addition, the Kyrgyz  Republic  also put in place at least two 
national measures to prohibit export of goods critical to combat the  pandemic. EAEU rules allow 
unilateral introduction of non -tariff barriers by a member State, thus the Kyrgyz  Republic  has had a 
temporary import prohibition on oil and petroleum products by motor transport since 2019 and 
measures to prohibit the export of  marble, travertine, and limestone.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 9 - 
 
  15. The national rules on trade remedies were phased out and replaced by EAEU rules as at 2015. 
Thus, as at November 2020, there were 21 measures (18 anti -dumping duties and 3 safeguard 
measures) in force that were applicabl e to imports into the customs union; most were concentrated 
on iron and steel products.  
16. As is the case with imports, the export process is facilitated by the Tulpar System single 
window web service , which allows for the submission of electronic declaration s and accompanying 
documents. During the review period, three resolutions were issued that imposed export duties on 
scrap and waste of certain ferrous and non -ferrous metals, raw hides of cattle and horses, and 
unprocessed or coarsely crushed cut blocks or  slabs of limestone.  
17. Diversification of export products and export markets would contribute to the Kyrgyz economy 
becoming more productive and private -sector oriented. Since 2013, national economic development 
programmes have  prioritized the creation of fa vourable external conditions for the promotion of 
exports of goods and services. Implementing an export -oriented trade strategy in the circumstances 
of the Kyrgyz  Republic  poses serious challenges, including high transport and logistic costs.  
18. The Export De velopment Program of the Kyrgyz  Republic  for 2019 -22 aims to , inter alia , 
strengthen exports by improving access to finance and providing export promotion activities. One 
initiative has been the establishment of the export trade portal. Improving access to  export financing 
has been identified as needing improvement, and thus was identified as a priority area for future 
initiatives.  
19. The Kyrgyz  Republic  applies various types of fiscal incentives. These include: (i) special tax 
allowances in respect of researc h and development expenditures; (ii) exemptions from corporate 
income tax, VAT, and sales tax, reduction in property tax liabilities , and a simplified computation of 
payroll taxes for agricultural and processing businesses; (iii) preferential tax treatment  in designated 
regions based on investment agreements with local authorities; (iv) an exemption from corporate 
income tax for large investments using new equipment; (v) exemptions from corporate income tax 
and VAT for the production of energy from renewabl e sources; and (vi) fiscal advantages granted in 
the context of Free Economic Zones and the High -Technology Park. Several of these measures 
contain eligibility conditions related to export performance. The Government is considering steps to 
reduce the numb er and complexity of these incentive schemes.  
20. During the review period, most developments regarding standards, technical regulations, and 
conformity assessments resulted from the Kyrgyz  Republic's accession to the EAEU. The 2004  Law 
on the Basics of Techni cal Regulation, which remains the key law for standards and technical 
regulations, was amended in June 2019 to update it and bring it in line with the EAEU regulatory 
framework. EAEU technical regulations gradually became applicable in the Kyrgyz  Republic  during 
the period 2017 -19. There are 43 EAEU technical regulations currently in force in the 
Kyrgyz  Republic , and a further 5  are planned to be put into effect by 2022.  
21. Since its previous  Review, the Kyrgyz  Republic  has introduced legislation, including re visions 
and amendments to existing legislation, to implement a common sanitary and phytosanitary ( SPS) 
framework for EAEU member States. EAEU rules comprise a unified regime for sanitary, veterinary, 
and SPS quarantine measures. Major efforts were undertak en to upgrade Kyrgyz facilities that certify 
exported products. The Kyrgyz  Republic  also established its WTO national enquiry point (three 
institutions) and national notification authority for SPS issues.  
22. State ownership remains an important factor in the Kyrgyz economy. As at 1 June 2020, there 
were 104 state -owned enterprises (SOEs) and 52 joint stock enterprises in which the State was a 
shareholder. There are currently no new plans to undertake large -scale privatizations; the focus of 
policy regarding SO Es is on the rationalization of state  ownership. For example, measures were 
taken to reorganize, transform, or liquidate SOEs and guidelines adopted for the use of key 
performance indicators to assess the efficiency and financial stability of SOEs.  
23. There h ave been significant developments in competition policy with the adherence to EAEU 
competition rules. The Kyrgyz  Republic  has been active in updating and amending its main 
competitions laws, mainly to align them with the EAEU Model Law on Competition. Some  of the main 
changes included clarification for determining the "dominant position" , introduction of the new 
concept of "economic and statistical surveillance" , and revision to the concepts of monopolistically WT/TPR/S/ 411/Rev.1 • Kyrgyz Republic  
 
- 10 - 
 
  high and low prices. The Kyrgyz  Republic  maint ains a number of measures to impose price controls 
on certain products; as a result of the COVID -19 pandemic, additional products were added to the 
list of socially significant goods , whereby temporary price control measures can be put in place.  
24. A number of developments occurred in the area of government procurement during the review 
period , including the addition of a provision on national treatment to the Public Procurement Law 
and a number of other amendments aimed mainly at reducing corruption a nd increasing 
transparency. Other developments included implementing a new process to address complaints, 
recording underperforming suppliers on the Register of Unfair Suppliers, revising the procurement 
thresholds, introducing a 20% preference allowance f or domestic suppliers, and full y implement ing 
e-procurement. Foreign suppliers accounted for about 9% of the value of all government 
procurement in 2018. The Kyrgyz  Republic' s accession to the WTO Government Procurement 
Agreement was ongoing during the per iod and membership remained a priority.  
25. In 2017, the Kyrgyz  Republic  adopted a comprehensive strategy to improve the protection of 
intellectual property rights, together with a strategy to promote innovation. The intellectual property 
rights regime was ame nded in several respects during the review period. First, amendments were 
made to laws on copyrights and related rights, legal protection of integrated circuit topologies, 
protection of traditional knowledge, and legal protection of program mes for electron ic computers. 
Second, amendments were made to legislation on patents ; legal protection of selection 
achievements ; and trademarks, service marks , and appellations of origin. Third, there were changes 
to relevant related laws, including the Civil Code and th e Criminal Code, and the Law on Customs 
Regulations. Certain changes to the intellectual property rights regime resulted from the accession 
the EAEU. Concern has been expressed regarding the enforcement of intellectual property rights.  
26. The most valuable co mmodities produced by the agricultural sector are livestock and poultry, 
raw milk, vegetables, grains and legumes, and potatoes. The Kyrgyz  Republic  imports a wide range 
of processed goods. The current five -year policy focuses on irrigation and the provisi on of clean 
drinking water, and further strategies to develop agri -business and collective systems. Membership 
in the EAEU generally reduced the access to the Kyrgyz market for MFN suppliers, who now face 
higher tariffs, tariff quotas, and seasonal or temp orary duties as part of the UCT. Government 
support to agriculture, as notified to the WTO, primarily consists of credit provided at concessional 
rates and contributions to leasing arrangements ("amber box" support), and expenditures on 
infrastructure -related services ("green box" measures).  
27. Mining is an important sector of the economy. One large gold mine, Kumtor, located in the 
east of the country, accounts for nearly 10% of GDP, and exports of gold, of which almost 98% 
originate from Kumtor, averaged abo ut 35% of Kyrgyz merchandise exports in recent years. The 
Government's heavy reliance on Kumtor as a source of revenue is regarded as a significant risk. 
Amendments to the Law on Subsoil Resources, adopted on 19  May 2018, introduced important 
changes regar ding the criteria and procedures for the award of mining licences. They also introduced 
a social package to improve relationships between the local population and subsoil users.  
28. The Kyrgyz  Republic  is rich in energy resources, particularly hydropower and c oal, and is 
potentially self -sufficient. It has small reserves of oil and gas , and is heavily reliant on imports  for 
these forms of energy. The electricity system is relatively small and heavily dependent on a few 
hydropower -generation facilities, and its performance is undermined by financial difficulties, 
primarily because electricity tariffs are set well below costs. The large operating losses of the 
electricity companies are financed by the Government. The Kyrgyz  Republic  may have to turn to its 
interna tional development partners for the financing of necessary investments in the creation of new 
generation capacity. The State Agency for Regulation of the Fuel and Energy Complex developed a 
Medium -Term Tariff Policy for Electric and Thermal Energy for 2020 -2022. The new tariff policy 
maintains the separation of electricity tariffs for energy -intensive consumers and residential 
customers. The EAEU Treaty foresees the establishment of unified energy markets, including a 
common electricity market and common ma rkets for natural gas, crude oil, and petroleum products.  
29. The manufacturing sector remains an important, albeit modest, contributor to the economy, 
as it accounted for between 16% and 18% of GDP during the review period, but it has a greater 
importance in terms of trade and FDI. The sector is characterized as highly concentrated in a few 
subsectors, i.e. production and fabrication of base metals and metal products, and food processing, 
account for 60% of the output of the sector. Despite continued growth in  economic output over the 
period, the sector suffers from low productivity, has a high rate of obsolescence , and is in need of WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 11 - 
 
  investment. The manufacturing sector is gradually moving towards further integration with the 
EAEU , as work is underway to build cooperative ties between member States and to involve small 
and medium -sized enterprises in production chains.  
30. The Kyrgyz  Republic' s financial sector generally improved its overall soundness and stability 
during the review period, but there were still some concerns such as bank insolvency, exposure due 
to loans in US dollars, low diversification, and the need to improve new product an d financing 
possibilities. Total assets of the financial sector increased steadily over the period and have more 
than doubled since 2013. One of the main developments, as a result of joining the EAEU, was the 
gradual integration to a common financial marke t, which is expected to be achieved by 2025. The 
Kyrgyz  Republic  is currently in a transition phase , whereby it is implementing the first two phases 
of greater financial market integration of the EAEU, working toward s implementing the Basel III 
regulations , and revising legal acts and regulations to improve remote banking services, counter 
money laundering, and improve resilience.  
31. The telecommunications market shows an increasing level of competition in nearly all 
segments. The Kyrgyz  Republic 's recent poli cies reflect the importance of information and 
communication technology (ICT) to the country's development prospects. The National Development 
Strategy 2018 -2040 aims to achieve national digital transformation. The primary law regulating 
telecommunications  services, the Law on Electric and Postal Communication, was amended several 
times during the review period. Public telecommunications services are treated as natural 
monopolies in the Kyrgyz  Republic 's legislation and have been subject to EAEU Treaty rule s on 
natural monopolies since February 2017. During the review period, the Regulation on Licensing 
Activities for Use of Radio Frequency Spectrum and the Regulation on Licensing Activities in the Field 
of Electric and Postal Communication entered into forc e. The national radio frequency allocation table 
was also approved, and the national system and numbering plan for telecommunications networks 
adopted. An important change in the institutional framework for policy development and regulation 
in the areas of  telecommunications and ICT was the creation, in 2016, of a new body, the State 
Committee of Information Technologies and Communications of the Kyrgyz  Republic  (SCITC). The 
SCITC was created to provide a more coordinated and focused approach to ICT policie s and 
regulation by combining several authorities previously located in other agencies. While the SCITC is 
responsible for the implementation of the overall state policy in this area, the State Agency for 
Communications under the SCITC is the telecommunica tions regulatory authority.  
32. The Kyrgyz  Republic  faces high transport costs, and enhancing its transit and trade potential 
requires improvements to both domestic and international connectivity. Transport has been 
designated as a strategic sector in the coun try's recent national economic development programmes, 
which aim to transform the country into a transit country for goods, passengers, and cargo. 
Transport infrastructure projects provided for in these programmes include the rehabilitation of 
five motorwa ys that are used as international transport corridors and the preservation and 
improvement of the country's network of domestic hard -surface roads. An important factor in the 
development of the transport policy during the review period was the Kyrgyz  Repub lic's accession 
to the EAEU. The EAEU Treaty aims to create a common EAEU transport area by 2025. To this end, 
two Action Plans were adopted in 2017, which cover the period 2018 -2020, and the ir implementation 
will create a basis for the removal of all exis ting restrictions on transport services by 2025. The 
Kyrgyz  Republic eliminated the requirements that carriers from EAEU member States obtain a permit 
before undertaking a journey and is in the process of adopting legislation to relax cabotage 
restrictions  in relation to carriers from EAEU member States.  
33. The Kyrgyz  Republic  has unique potential for travel and leisure activities. Measures 
undertaken by the Government during the review period to facilitate tourism included liberalization 
of visa requirements and amendments to the Air Code that entered into force on 25  January  2019, 
reflecting the adoption of an "open skies" policy. Statistics indicate a growing number of travellers 
to the Kyrgyz  Republic . Although the tourism sector is expanding, it continues to face several 
challenges. Infrastructure is slowly improving, but significant capital investment is needed to reverse 
two decades of degradation. A government programme was established for the development of the 
tourism sector during 2019 -23. Sustainable  tourism is also identified as a priority area of 
development in the National Development Strategy for 2018 -2040.  
 
 WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 12 - 
 
  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
The Kyrgyz Republic is located in Central Asia and has a population of 6.4 million. It is 
"double -landlocked" in the sense that, among its four neighbours, three of them (Kazakhstan, 
Tajikistan, and Uzbekistan) are themselves landlocked. About 90% of the t erritory is situated more 
than 1,500 metres above sea level. Internal road and rail transport is hampered by rugged 
topography and basic infrastructure largely built to serve the needs of a larger, but different economy 
(the former Soviet Union), which the  Kyrgyz Republic belonged to on the periphery. Its border with 
China was closed from the 1960s until 1991. Although the Kyrgyz economy has grown steadily since 
2012, a current GDP per capita around USD 1,400 (Table 1.1) is well below that of peers such as 
the Russian Federation (USD  11,600 in 2019) and Kazakhstan (USD 9,800 in 2019).1  
Although the poverty incidence declined over the last 20 years, a large share of the population 
continues to live close to the poverty line. Past and present links and the s ignificant gap in earnings 
may explain why many Kyrgyz citizens, almost one sixth of the population, work in foreign countries, 
principally in the Russian Federation and, to a lesser extent, in Kazakhstan. While estimates vary, it 
is believed that about on e third of the Kyrgyz workforce is employed abroad, and remittances have 
become the country's single most important source of foreign exchange. For 2017, the inflows of 
such payments were estimated at USD 2.5 billion, equivalent to 31% of GDP. Regularized visa and 
work permit requirements stemming from the accession of the Kyrgyz Republic to the Eurasian 
Economic Union (EAEU) in 2015 provided more economic security to migrating Kyrgyz labourers, 
particularly in the Russian Federation, and facilitated their search for better paid  work.  
Table 1.1 Selected economic indicators, 2012 -19 
 
2012  2013  2014  2015  2016  2017  2018  2019a 
GDP (current KGS million)  310,471  355,295  400,694  430,489  476,331  530,476  569,386  590,042  
GDP (current USD million)  6,605  7,335  7,468  6,678  6,813  7,703  8,271  8,455  
Real GDP growth (% 
change)  9.9 10.5 4.0 3.9 4.3 4.7 3.8 4.5 
GDP per capita (USD)  1,233  1,340  1,331  1,163  1,179  1,296  1,364  1,349  
GDP by economic activity (% of current GDP)  
Agriculture, forestry and 
fishing  16.7 14.6 14.7 14.1 12.8 12.5 11.7 12.1 
Mining  0.9 0.7 0.7 0.8 0.6 1.0 1.0 1.0 
Manufacturing  12.1 15.8 13.7 14.1 15.4 15.0 14.3 14.3 
Electricity, gas and steam 
production, distribution 
and supply  2.6 1.8 1.9 1.7 1.9 2.5 2.8 2.2 
Water supply, waste 
treatment and disposal  0.2 0.3 0.3 0.2 0.2 0.3 0.4 0.3 
Construction  6.5 6.3 7.4 8.4 8.4 8.6 9.0 9.7 
Trade: repair of transport 
means  15.9 16.5 17.8 18.8 17.9 17.8 17.9 18.3 
Transportation and 
storage  4.7 3.9 3.7 3.9 3.8 3.9 3.8 3.8 
Accommodation and food 
service activities  1.4 1.6 1.8 1.9 1.8 1.7 1.7 1.7 
    Accommodation  0.3 0.4 0.5 0.5 0.5 0.4 0.4 0.4 
    Food service activities  1.0 1.2 1.3 1.3 1.3 1.3 1.3 1.3 
Information and 
communication  4.8 4.4 4.3 4.3 3.5 3.1 2.6 2.6 
Financial and insurance 
activities  3.7 3.8 3.9 3.6 3.2 3.4 3.8 4.1 
Real estate activities  2.3 2.3 2.5 2.6 2.5 2.6 2.5 2.4 
Professional, scientific 
and technical activities  1.7 1.5 1.7 1.6 1.4 1.6 1.9 1.8 
Administrative and 
support service activities  0.4 0.4 0.5 0.4 0.4 0.5 0.4 0.4 
Public administration and 
defence; social security  5.1 5.0 5.3 5.4 5.4 5.7 5.8 5.7 
 
1 World Bank, GDP per capita (current US$) . Viewed at: 
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD .   
 WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 13 - 
 
   
2012  2013  2014  2015  2016  2017  2018  2019a 
Education  6.0 5.3 4.9 5.3 5.9 5.7 5.5 5.5 
Human health and social 
work activities  3.4 3.1 2.8 2.8 2.7 2.6 2.5 2.6 
Arts, entertainment and 
recreation  0.6 0.6 0.5 0.5 0.5 0.4 0.5 0.4 
Other service activities  1.1 1.1 1.0 1.2 1.1 1.1 1.1 1.0 
Indirectly measured 
services of financial 
intermediation (FISIM)  -3.1 -3.0 -3.2 -3.1 -2.7 -2.8 -3.1 -3.3 
Net taxes on products  13.1 13.9 14.0 11.8 13.1 13.1 14.1 13.4 
GDP by expenditure (% of current GDP)b 
Final consumption  115.9  115.6  113.5  108.3  100.2  99.2 99.7 98.9 
   Individual consumption  115.9  115.6  113.5  108.3  100.2  99.2 91.2 90.6 
      Households  94.6 96.0 95.0 89.2 81.7 81.0 81.4 81.0 
      Non-profit 
organizations 
servicing households  1.2 1.1 1.0 1.3 1.1 1.0 1.1 1.0 
      Public agencies  20.1 18.4 17.5 17.8 17.4 17.1 8.8 8.5 
   Collective consumption  n.a. n.a. n.a. n.a. n.a. n.a. 8.4 8.3 
Gross accumulation, total  35.0 33.9 36.8 34.7 33.9 32.9 36.0 32.9 
   Gross accumulation of 
fixed assets  31.4 29.6 32.5 32.6 31.8 31.5 31.7 31.5 
   Change of working 
capital reserves  3.2 4.0 3.9 1.7 1.7 1.0 4.0 1.0 
   Net acquisition of 
valuables  0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.4 
Net export of goods and 
services  -50.9 -49.5 -50.2 -40.6 -34.2 -32.1 -35.7 -28.3 
   Export  n.a. n.a. n.a. n.a. n.a. n.a. 31.6 37.4 
   Import  n.a. n.a. n.a. n.a. n.a. n.a. -67.3 -65.7 
Statistical discrepancy  n.a. n.a. n.a. -2.4 n.a. n.a. 0.0 -3.5 
Employment  
Economically active 
population ('000 persons)  2,497  2,469  2,504  2,544  2,547  2,525  2,539  2,584  
Employment to population 
ratio (%)  58.8 57.2 57.3 57.7 57.1 55.9 56.2 57.0 
Unemployment rate (%)  8.4 8.3 8.0 7.6 7.2 6.9 6.2 5.5 
Official unemployment 
rate (%)  2.4 2.3 2.3 2.2 2.2 2.3 2.8 3.0 
Employment by activity (% of employed persons)  
Agriculture, forestry and 
fishing  30.1 31.7 31.6 29.3 26.8 23.0 20.3 18.1 
Mining and quarrying  0.6 0.4 0.4 0.4 0.4 0.5 1.1 1.3 
Manufacturing  7.6 6.9 6.9 7.4 7.6 10.1 12.0 11.8 
Electricity, gas, steam 
and air conditioning 
supply  1.5 1.3 1.3 1.2 1.2 1.1 1.1 1.3 
Water supply; sewerage, 
waste management and 
remediation activities  0.7 0.7 0.7 0.6 0.8 0.5 0.3 0.5 
Construction  11.3 10.8 11.0 11.3 12.0 10.9 10.4 11.8 
Wholesale and retail 
trade; repair of motor 
vehicles and motorcycles  15.1 15.9 15.1 15.5 15.6 16.5 15.7 16.2 
Transportation and 
storage  6.0 6.3 6.3 6.9 7.1 8.1 8.2 8.2 
Accommodation and food 
service activities  3.7 3.5 3.7 4.2 4.6 4.9 6.0 6.7 
Information and 
communication  1.2 1.1 1.2 1.3 1.3 1.2 1.2 1.1 
Financial and insurance 
activities  1.0 1.0 1.1 1.1 1.1 1.3 1.5 1.4 
Real estate activities  0.2 0.3 0.4 0.4 0.3 0.4 0.4 0.2 
Professional, scientific  
and technical activities  0.8 0.7 0.7 0.6 0.7 0.8 1.1 1.0 
Administrative and 
support service activities  0.9 0.7 0.8 0.5 0.6 0.9 1.0 0.8 
Public administration  4.8 4.2 4.1 4.1 4.3 4.0 4.1 4.0 
Education  7.9 7.7 7.7 8.2 8.7 8.8 9.0 9.0 WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 14 - 
 
   
2012  2013  2014  2015  2016  2017  2018  2019a 
Human health and social 
work activities  3.7 3.5 3.5 3.5 3.5 3.9 4.1 3.9 
Arts, entertainment and 
recreation  0.8 0.6 0.6 0.7 0.7 0.6 0.7 0.6 
Other service activities  1.6 1.4 1.9 1.9 2.0 1.9 1.7 1.8 
Activities of households 
as employers  0.4 0.9 0.8 0.9 0.7 0.5 0.2 0.2 
Activities of 
extraterritorial 
organizations and bodies  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Prices and interest rates  
Inflation (CPI end of 
period index, 2005=100)  210.1  218.4  241.3  249.4  248.2  257.2  258.5  266.4  
Inflation (CPI end of 
period, % change)  7.5 4.0 10.5 3.4 -0.5 3.7 0.5 3.1 
Inflation (CPI period 
average index, 
2005=100)  200.3  213.6  229.7  244.6  245.5  253.3  257.2  260.2  
Inflation (CPI period 
average, % change)  2.8 6.6 7.5 6.5 0.4 3.2 1.5 1.1 
<1 month  deposits 
weighted average interest 
rate (%, period average)  7.2 7.3 7.1 8.3 8.6 8.7 7.6 7.4 
<1 month deposits 
weighted average interest 
rate (%, end of period)  7.5 7.1 6.7 7.1 7.4 9.4 8.0 7.8 
1-3 years deposits 
weighted average interest 
rate (%, period average)  11.7 10.5 10.0 10.4 10.7 10.3 9.5 9.5 
1-3 years deposits 
weighted average interest 
rate (%, end of period)  10.7 10.0 10.2 10.7 10.7 9.8 9.5 9.5 
Policy rate  .. 4.2 10.5 10.0 5.0 5.0 4.8 4.5 
Memorandum:          
Population (millions)  5.6 5.7 5.8 5.9 6.0 6.1 6.3 6.4 
Exports of goods and 
services/GDP (%) (at 
current market prices)b .. .. 45.9 37.8 35.7 34.3 33.2 36.7 
Imports of goods and 
services/GDP (%) (at 
current market prices)b .. .. 88.5 75.3 69.8 66.4 71.6 66.3 
Exchange rate (domestic 
currency per USD)  47.00  48.44  53.65  64.46  69.91  68.87  68.84  69.79  
Real effective exchange 
rate (index)b 106.2  106.6  110.2  115.7  113.7  111.4  114.6  115.7  
Real effective exchange 
rate (% change)  -0.1 0.4 3.4 5.0 -1.7 -2.1 2.9 0.9 
Total external debt (USD 
million, end of period)b,c 5,229  5,930  6,371  6,670  6,830  6,998  6,828  7,008  
Total external debt (% of 
GDP)b,e 81 83.4 94.4 119.5  99.3 90.8 83.8 82.7 
Public external debt (USD 
million, end of period)b,d 3,032  3,159  3,437  3,601  3,743  4,090  3,826  3,851  
Public external debt (% of 
GDP)b,e 47 44.4 50.9 64.5 54.4 53.1 46.9 45.5 
n.a. Not applicable . 
.. Not available . 
a Preliminary data.  
b Data up to 3rd quarter of 2019.  
c Total external debt is the outstanding amount of actual current liabilities on loans and borrowings 
(including liabilities of all sectors of economy).  
d Public external debt is the outstanding amount of actual liabilities on loans and borrowings by 
general government and monetary authorities.  
e Indicators are calculated on the base of sliding annual GDP data, including the last four quarters. 
GDP equivalent in U S dollars was converted at the end -of-quarter exchange rate.  
Source:  National Statistical Committee; National Bank of the Kyrgyz Republic; and IMF, IFS database.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 15 - 
 
  1.2  Recent Economic Developments  
Since independence, social and political tensions have at times led to severe economic 
disruption. The Kyrgyz Republic benefited from relative political stability, compared with the situation 
during the previous review period. Following a particularly brisk rebound in economic activity in 
2012 and 2013, when the economy expanded at an annual rate of 10% in real terms, growth appears 
to have settled to an annual rhythm of a 4% to 5% increase in real GDP. However, although the 
economy is growing steadily, some observers point out that the expansion was not strong en ough 
to provide attractive work opportunities domestically. Rather, the extensive Kyrgyz labour migration 
may signal a failure to develop broad -based employment, particularly in the tradable goods sector.2  
The general government deficit fluctuated but has been on a declining trend in recent years 
(Table 1.2). Expenditures are influenced by significant commitments, particularly for pensions, 
education, and health, while the "compensation of employees" has dec lined sharply, especially since 
2016. According to the IMF, value added tax (VAT) collection improved markedly, and VAT is the 
single most important source of government revenue, followed by profit and income tax on 
businesses. The tax base was somewhat er oded by concessions offered to businesses, particularly 
in the free economic zones. In the past, the Government ran large deficits, typically 7% to 9% of 
GDP, that were considered manageable as they were financed by grant aid and loans on concessional 
terms. Successive Kyrgyz administrations adopted the Maastricht guidelines for public debt, i.e. that 
it should not exceed 60% of GDP. Almost all such debt is external and denominated in foreign 
currencies, for the most part in US dollars. As the Kyrgyz Republ ic is expected to graduate from the 
low-income group of countries, access to highly concessional finance will decline. At present, it is 
thus important to maintain a prudent fiscal policy and ensure, if deficits occur, that they may be 
financed domesticall y to the extent possible.   
Table 1.2 State revenue and expenditure, 2012 -19 
(% of GDP)   
2012  2013  2014  2015  2016  2017  2018  2019  
Revenues  28.0 28.7 29.8 29.8 27.4 28.2 26.6 28.4 
Revenues from operational 
activity  27.9 28.7 29.8 29.8 27.4 28.2 26.6 28.4 
   Tax revenues  20.6 20.5 20.6 19.7 19.7 19.5 20.5 20.6 
   Profit and income tax  6.0 4.8 4.9 5.1 4.7 4.6 4.7 5.1 
      Individual income tax on 
resident individuals  1.9 1.8 1.8 1.8 1.8 1.7 1.8 1.8 
      Revenue tax on non -
resident individuals  0.4 0.3 0.4 0.4 0.4 0.4 0.3 0.4 
      Income tax  1.3 1.2 1.1 1.0 0.8 0.8 1.0 1.1 
      Single tax receipts  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
      Revenues from mandatory 
patenting  0.4 0.5 0.5 0.5 0.5 0.4 0.4 0.5 
      Non-graded taxes  1.5 1.0 1.2 1.4 1.2 1.2 1.2 1.3 
      Tax for special funds of 
budgetary organizations  0.4 - - - - - - - 
   Property taxes  0.6 0.6 0.6 0.5 0.5 0.5 0.5 0.5 
      Tax on assets  0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 
      Land tax  0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
   Tax on goods and services  11.0 11.7 11.7 11.8 11.6 11.3 12.1 11.3 
      Value added tax  8.3 8.5 8.2 7.7 8.2 8.5 9.3 8.6 
      VAT on goods and services 
produced in the Kyrgyz Republic  2.3 2.3 2.2 2.1 2.5 2.4 2.1 2.0 
      VAT on imported goods  6.0 6.2 6.0 5.6 5.7 6.1 7.2 6.6 
      Sales tax  1.6 1.8 1.8 1.7 1.3 0.8 0.8 0.7 
      Road use tax  0.0 0.0 0.0 0.0 - - - - 
      Receipts for preventing and 
liquidating emergency situations  0.0 0.0 0.0 0.0 - - - - 
      Excise tax  0.9 1.2 1.6 1.8 1.9 1.8 1.8 1.7 
      Excise on goods produced 
in the Kyrgyz Republic  0.3 0.3 0.3 0.3 0.4 0.3 0.3 0.2 
 
2 Asian Development Bank (ADB), Kyrgyz Republic: Improving Growth Potential , September 2019. 
Viewed at: https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 16 - 
 
   
2012  2013  2014  2015  2016  2017  2018  2019  
      Excise on imported goods  0.6 0.9 1.2 1.5 1.5 1.5 1.5 1.5 
      Tax for use of mineral 
resources  0.2 0.2 0.2 0.6 0.2 0.2 0.2 0.3 
   International trade and 
transactions taxes  3.0 3.3 3.4 2.2 2.9 3.1 3.2 3.7 
   Other taxes  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
   Contributions/receipts for social 
needs  - - - - 0.0 0.5 - - 
   Official transfers received  1.8 2.6 2.5 2.2 2.1 2.5 1.6 2.3 
   Non-tax revenues  5.6 5.6 6.7 8.0 5.6 5.7 4.5 5.5 
   Property revenue and interest  2.9 2.3 1.7 3.5 2.2 1.6 1.5 1.3 
   Revenue from sale of goods 
and services  2.3 2.7 2.8 2.9 2.7 2.3 2.4 2.6 
   Administrative collections and 
receipts  0.4 0.5 0.5 0.4 0.4 0.5 0.5 0.6 
   Receipts from providing paid 
services  2.0 2.2 2.4 2.5 2.3 1.8 1.7 1.8 
   Fines and sanctions, 
forfeitures  0.1 0.1 0.1 0.2 0.1 0.1 0.2 0.2 
   Voluntary transfers other than 
grants  0.1 0.1 0.9 0.7 0.2 0.2 0.1 0.9 
   Other non -tax revenues  0.1 0.3 1.1 0.8 0.4 1.4 0.3 0.4 
Revenues from sales of non -
financial assets  0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Expenditure  34.5 29.3 30.3 31.3 31.8 31.3 27.7 28.4 
Expenditure for realization of 
current activity  32.2 24.4 23.9 24.4 24.3 23.5 22.7 23.1 
   Compensation of employees  11.3 10.4 10.1 10.4 10.7 10.1 8.6 8.8 
   Social contributions  1.6 1.4 1.4 1.4 1.4 1.4 1.1 1.2 
   Business trips  0.2 0.2 0.2 0.2 0.2 0.3 0.2 0.3 
   Utilities  1.0 0.9 0.8 1.0 0.9 0.9 0.7 0.6 
   Rent payments  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
   Transportation services  0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 
   Acquisition of other services  2.3 2.3 2.0 2.3 2.0 1.9 1.6 1.6 
   Acquisition of medical supplies  0.3 0.3 0.3 0.3 0.3 0.5 0.2 0.1 
   Acquisition of food supplies  1.0 1.0 1.0 1.0 0.9 0.9 0.8 0.7 
   Interest  0.9 0.8 0.9 1.0 1.1 1.1 1.3 1.3 
   Subsidies  0.8 0.7 0.8 0.8 1.1 1.0 0.8 0.7 
   Grants  0.1 0.0 0.1 0.1 0.1 0.1 1.9 1.9 
   Social benefits  5.4 5.6 5.7 5.6 5.1 4.9 5.1 5.3 
   Other expenditures  7.0 0.3 0.2 0.2 0.2 0.2 0.1 0.1 
Expenditures for acquisition of 
non-financial assets  2.3 5.0 6.4 6.8 7.5 7.8 5.0 5.4 
State budget balance  -6.5 -0.7 -0.5 -1.4 -4.4 -3.1 -1.1 -0.1 
General financing  7.2 2.2 3.0 4.5 5.6 4.3 2.3 1.9 
   Domestic financing  2.1 -2.8 -2.5 0.7 1.6 1.0 2.0 1.4 
   External financing  5.0 5.0 5.5 3.8 4.0 3.3 0.3 0.5 
- Nil or rounded to zero.  
Source:  National Statistical Committee.  
The budget balance reported in Table 1.2 excludes the effect of energy subsidies, which are 
substantial. Maintained for social reasons, these subsidies are politically difficult to eliminate. 
However, low prices for electricity set administrativ ely result in operational losses for state -owned 
companies in the energy sector. The authorities record the public loans required to sustain operations 
in these enterprises as "acquisition of assets", effectively leaving these debts to be resolved at a 
later date. The negative effects on needed investments, the operational efficiency of the energy 
sector, and the reliability of the electricity supply are discussed further in Section 4.2. 2.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 17 - 
 
  
In its latest Country Report on the Kyrgyz Republic, the IMF also n otes certain recent problems 
in the banking sector.3 The National Bank of the Kyrgyz Republic (NBKR) became the majority owner 
of a mid -sized troubled bank in October 2018, as it took possession of shares previously held as 
collateral for emergency assist ance loans. The NBKR subsequently increased its stake in the bank 
(to 96.3%). The NBKR ownership is temporary, as the bank will either be sold to private investors 
or transferred to the Government. Meanwhile, the liquidation of four insolvent banks is also  moving 
slowly. The winding -up processes are administered by the Agency for Banks Liquidation, an 
independent state body.  
Regarding monetary policy, the Government has few monetary and exchange rate options. The 
NBKR maintains an inflation target within a  band of 5% to 7% per year, and unofficially appears to 
be aiming at an exchange rate of the Kyrgyz som that is stable vis-à-vis the US dollar.4 Although 
the unofficial peg to the US dollar assisted in achieving the inflation target, it also led to an 
appreciation of the real effective exchange rate, particularly due to periods in which the Russian 
rouble and the Kazakh tenge depreciated.  
The Kyrgyz Republic opted for an open international capital account from the early days of 
independence. The Governmen t has limited monetary policy space, as official estimates of the 
dollarization of the local economy indicate that it may amount to 35% -40% of broad money (i.e. the 
equivalent of M2).5 Despite periodic attempts to reduce dollarization, high levels of remi ttances 
largely nullify such efforts.  
Most of the remittances appear to bypass the formal banking system and are directed towards 
real estate and imported goods.6 In some of the major Kyrgyz cities, residential construction financed 
by remittances gave a  significant boost to local contractors. The authorities nonetheless face a major 
challenge in promoting remittance flows to be channelled into productive economic and social 
investments.7  
A very large domestic savings -investment gap has its counterpart in a large current account 
deficit, mainly financed by overseas development assistance, foreign direct investment (FDI), and 
other long -term capital flows. A major part of the large merchandise trade deficit is financed by 
remittances. The current account deficit widened from nearly USD 500 million 2017 to more than 
USD 1 billion 2019 (Table 1.3), or 12.7% of GDP. However, the IMF argues that the rise in imports 
observed in 2018 reflects an improved ability of the customs administration to record imports as  
well as an actual increase in the value of goods brought into the country.8  
Table 1.3 Balance of payments, 2012 -19  
(USD million)   
2012  2013  2014  2015  2016  2017  2018  2019  
Current account  -1,020  -979 -1,267  -1,078  -788 -482 -997 -1,073  
  Goods and services  -2,913  -2,794  -3,134  -2,445  -2,340  -2,475  -3,167  -2,564  
    Trade balancea -2,577  -2,780  -2,808  -2,241  -2,137  -2,383  -3,034  -2,626  
       Exports (f.o.b.)  2,588  2,833  2,483  1,619  1,608  1,814  1,916  2,043  
           EAEU countries  863 789 726 410 447 541 641 642 
           Non-EAEU countries  1,726  2,044  1,757  1,209  1,161  1,272  1,275  1,401  
       Imports (f.o.b.)  5,165  5,614  5,290  3,860  3,744  4,197  4,950  4,669  
           EAEU countries  2,481  2,527  2,335  1,920  1,520  1,733  2,011  1,961  
 
3 IMF (20 19), Kyrgyz Republic: 2019 Article IV Consultation –Press Release and Staff Report , IMF 
Country Report No.  19/208. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2019/07/02/Kyrgyz -
Republic -2019-Article -IV-Consultation -Press -Release -and-Staff-Repor t-47085.  
4 On average, the value of USD 1 has remained just under KGS 70 since 2016.  
5 However, taking into account large real estate and consumer durables transactions, the share may 
actually be much higher.  
6 Unlike Asian "contract migrants", who normall y return home permanently after working overseas, 
Kyrgyz migrant workers tend to visit their home country intermittently while working in their destination 
country. The frequent visits facilitate cash remittances. Alternatively, money transfer intermediari es are used 
to remit funds directly to family members in the Kyrgyz Republic.  
7 Other than financing consumption, some remittances appear to enter the Kyrgyz microfinance system.  
8 IMF (2019), Kyrgyz Republic: 2019 Article IV Consultation –Press Release a nd Staff Report , IMF 
Country Report No.  19/208. Viewed at : https://www.imf.org/en/Publications/CR/Issues/2019/07/02/Kyrgyz -
Republic -2019-Article -IV-Consultation -Press -Release -and-Staff-Report -47085.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 18 - 
 
   
2012  2013  2014  2015  2016  2017  2018  2019  
           Non-EAEU countries  2,684  3,087  2,956  1,940  2,225  2,464  2,939  2,707  
    Balance of services  -336 -13 -326 -205 -204 -92 -133 62 
         Rendered services  987 1,089  897 849 841 824 830 1,083  
         Received services  -1,323  -1,103  -1,223  -1,054  -1,045  -916 -963 -1,021  
  Incomea -169 -423 -309 -261 -351 -372 -251 -779 
    Direct investment income  -111 -348 -223 -191 -270 -296 -192 -707 
    Portfolio investment income  - - - 1 - - - - 
    Other investment income  -30 -53 -62 -52 -65 -57 -46 -58 
       Interest in loans (schedule)  -47 -70 -80 -69 -70 -76 -77 -82 
       Other investment income  17 17 18 17 5 19 32 24 
    Compensation of employees  -29 -22 -23 -19 -16 -19 -14 -15 
  Current transfers  2,061  2,238  2,176  1,628  1,903  2,365  2,421  2,270  
Capital and financial account  843 986 603 778 708 609 536 554 
  Capital account  166 280 66 79 113 131 335 88 
     Capital transfersa 166 280 66 79 113 131 335 88 
  Financial account  677 706 537 699 596 478 201 466 
     Direct investment in the Kyrgyz 
Republica 293 626 233 1,009  579 -78 44 337 
     Portfolio investment  6 5 0 -129 -7 -25 -9 25 
     Financial derivatives  0 0 0 5 6 3 0 - 
     Other investment  379 75 305 -186 17 578 167 104 
       Assets ( - accretion)  99 -224 -473 -410 -98 424 23 -107 
         Banks  -8 -82 -22 -157 92 -5 -4 -20 
         Other assets  107 -142 -451 -253 -190 430 27 -87 
        Liabilities (+ accretion)  280 299 777 224 116 154 144 211 
          Banks  9 25 22 17 -34 -13 48 19 
          Loans  324 165 684 206 92 176 -61 135 
             General government  256 151 428 234 237 215 -191 66 
               Disbursement  348 384 483 306 344 326 150 188 
               Amortization (schedule)  -92 -233 -55 -71 -106 -111 -341 -122 
             Private sector  68 14 257 -28 -145 -39 130 69 
                Disbursement  336 441 612 522 342 345 461 577 
                Amortization (schedule)  -267 -427 -356 -550 -488 -383 -331 -509 
           Other liabilities  -53 110 71 1 57 -9 157 57 
Net errors and omissions  309 43 398 221 386 -112 297 566 
Overall balance  131 51 -266 -79 306 15 -164 47 
Financing  -131 -51 266 79 -306 -15 164 -47 
  NBKR reservesb -142 -66 270 67 -312 -44 188 -16 
  IMF loans  9 12 -5 12 6 1 -29 -26 
  Exceptional financing  3 3 1 - - 27 5 -5 
  Other financing  -1 - - - - - - - 
- Nil or rounded to zero.  
a According to National Statistical Committee data including N ational Bank of the Kyrgyz Republic 
estimates . 
b According to IMF methodology, operations with gold bullion to be included in the structure of asset 
reserves accomplished with residents are excluded from reserve assets.  
Source:  National Bank of the Kyrgyz Republic.  
The Kyrgyz Republic is inc reasingly becoming a services economy. The share of the workforce 
employed in agriculture declined from 30% in 2012 to 18% in 2019 (Table 1.1). Although there was 
a simultaneous increase in labour input in manufacturing, this nevertheless means that about 
two thirds of the domestic Kyrgyz workforce is engaged in some form of service activity. Wholesale 
and retail trade are the leading subsectors. The Asian Development Bank (ADB) notes that higher 
productivity, together with a more diversified and broad -based economic model, is required to create 
more jobs and sustained high economic growth. Information about the quality of jobs and the 
positive impact on poverty reduction is still missing in the services sector. Policy reforms to make WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 19 - 
 
  services sectors more c ompetitive will need to focus on the elimination of internal and external 
market distortions. In addition, complementary investments in physical infrastructure and human 
capital will be needed to support an expanding services economy.   
The Kyrgyz Republic also has a significant informal economy that may equal between 
24% and 40% of the official GDP.9 Informal activity appears to be most prevalent in trade, 
hospitality, transport, and agriculture. It has also been observed that compliance with admi nistrative 
procedures appears to generate high costs for many firms, driving informality and acting as a 
disincentive to organic growth.  
Although the Executive Board of the IMF gives credit to the Kyrgyz Republic for improved 
macroeconomic and financial c onditions, its outlook is cautious as the Kyrgyz economy remains 
vulnerable to external shocks.10 This is due to the high level of remittances, the dominance of a 
single commodity (gold) in exports, a significant current account deficit, and the level and 
composition of public debt.  
Preliminary data confirm that the Kyrgyz economy has been severely a ffected by the 
COVID -19 pandemic. Prolonged border closures and lockdowns have had a major negative impact 
on sectors such as commerce, tourism, and travel. In addition, the inflow of remittances declined 
sharply, falling approximately 25% year -on-year ove r the first five months of 2020.11 This, in turn, 
has had ripple effects on domestic consumption and the construction of residential homes. Among 
the few bright spots, the mining industry has been doing relatively well as the price of gold has 
remained hig h. The peg of the Kyrgyz som to the US dollar was relaxed in March 2020, resulting in 
a marked depreciation of the national currency.  
With rising levels of unemployment and poverty, and a healthcare sector operating under 
considerable stress, the internati onal community has been stepping up its efforts to help stabilize 
the economy and fill an expected external financing gap of some USD 500 million. The IMF approved 
budget support amounting to nearly USD 250 million, and further aid is being made available or 
expected from the ADB, the World Bank, the United Nations system,  and bilateral donors. 
The Kyrgyz  economy may nevertheless shrink by as much as 10% in 2020.  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
In 2019, the Kyrgyz Republic recorded a deficit in its foreign trade in goods of USD  3 billion, 
as merchandise imports of nearly USD 5 billion outstripped exports worth just under 
USD 2 billion  (Chart 1.1). Measured in US dollars, the deficit narrowed somewha t compared with 
that in 2012, as exports grew by 18% while imports contracted by 7%. Gold from one single mine 
is the principal commodity shipped abroad (Table A1.1). Annual export values vary due to 
fluctuations both in the price of gold and in production  levels at the Kumtor mine.12 In 2016, gold 
accounted for 50% of merchandise exports. Although projections may change, a significant decline 
is expected in the production at Kumtor from 2023 onwards.  
According to the authorities, exports of textiles and g arments declined from USD 205 million 
in 2012 to USD 92.4 million in 2015. Since then, foreign sales have rebounded, reaching 
USD 211 million in 2018. An increasingly vibrant garments industry has been quite successful in 
finding a market for relatively in expensive women's clothing in the Russian Federation. In general, 
the relative proximity to China makes most manufacturing activities unprofitable, and only niche 
production is likely to prevail.  
 
9 Asian Development Bank (ADB), Kyrgyz Republic: Improvin g Growth Potential , September 2019. 
Viewed at: https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . 
10 IMF (2019), Kyrgyz Republic: 2019 Article IV Consultation –Press Release and Staff Report , IMF 
Country Report No.  19/208. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2019/07/02/Kyrgyz -
Republic -2019-Article -IV-Consultation -Press -Release -and-Staff-Report -47085 . 
11 ADB/UNDP, COVID -19 in the Kyrgyz Republic: Socioeconomic and Vulnerability Impact  Assessment 
and Policy Response , August 2020.   
12 For example, an accident caused a two -month suspension of mining operations in 2019 -20.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 20 - 
 
  Chart 1.1 Merchandise trade by main HS section, 2012 and 2019  
 
Source:  WTO Secretariat calculations, based on data from the UN Comtrade database.  
Although the Kyrgyz Republic has considerable agricultural potential, it is a net importer of 
agricultural products, part icularly processed foods (Table A1.2). It has deposits of oil and gas, but 
nevertheless remains a net importer of fuels and mineral products. Most manufactured articles, 
including machinery and motor vehicles, are imported.  
Due to the contractual arrangem ents relating to sales of gold, Switzerland was the main 
market for Kyrgyz exports until 2017 (Table  A1.3). As the contract was switched to a UK -based 
enterprise in November 2017, the United Kingdom is currently the trading partner for gold and silver, 
and hence the top destination for Kyrgyz merchandise exports. The Kyrgyz Republic has a large 
Chart 1.1
Merchandise trade by main HS sections, 2012 and 2019
2012 2019
(a)    Exports
Total: USD 1,683 million
(b)    Imports
Total: USD 5,373 million Total: USD 4,989 million
Source:   WTO Secretariat calculations, based on UN Comtrade database.Total: USD 1,986 millionBase metals
3.8%Other
11.5%
Prepared 
foodstuffs
7.9%Other
11.2%
Chemicals
8.4%Base metals
6.2%Live 
animals
3.2%
Base 
metals
7.7%Mineral 
products
22.4%
Textiles
7.0%Machinery & 
electrical 
equipment
11.9%Other
12.2%
Chemicals
9.5%
Base metals
9.4%Plastics
4.4%Machinery & 
electrical 
equipment
17.4%Other
12.0%
Footwear & 
articles
5.4%Prepared 
foodstuffs
7.2%
Mineral 
products
14.8%
Textiles
11.8%Mineral 
products
14.9%Mineral 
products
15.9%Live 
animals
2.0%
Footwear 
& articles
1.6%Pearls, precious 
stones & metals
33.8%
Plastics
4.2%Vegetable 
products
6.8%Vegetable 
products
8.8%
Pearls, precious 
stones & metals
43.0%
Vehicles & transport 
equipment
4.2% Vehicles & 
transport 
equipment
13.3%Prepared 
foodstuffs
2.9%Prepared 
foodstuffs
2.5%
Textiles
12.2%Textiles
7.5%Vehicles & 
transport 
equipment
8.3%Vehicles & transport 
equipment
3.3%
Vegetable 
products
3.4%Vegetable 
products
4.1%WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 21 - 
 
  trade deficit with China, as it is the main source of imports, while exports to China are insignificant 
(Chart 1.2). Imports from China expanded from USD 1.2 billion  in 2012 to more than 
USD 1.7 billion  in 2019 (Table A1.4).  
Chart 1.2 Merchandise trade by main origin and destination, 2012 and 2019  
 
Source:  WTO Secretariat calculations, based on data from the UN Comtrade database.  
Trade with partners in the Commonwealth of Independent States (CIS) represented 52.5% 
of Kyrgyz merchandise exports, and half of its imports, in 2012. Although the shares were somewhat 
lower in 2019, the entry of the Kyrgyz Republic into the EAEU in 2015 had a positive effect on 
bilateral trade with the Russian Federation in particular, and, to a lesser extent, with Kazakhstan 
(Table A1.4). Bilateral trade with the other EAEU partners (Belarus and Armenia) remains modest.  
Chart1.2
Merchandise trade by main origin ad destination, 2012 and 2019
2012 2019
(a)    Exports
Total: USD 1,683 million
(b)    Imports
Total: USD 5,373 million Total: USD 4,989 million
Source:   WTO Secretariat calculations, based on UN Comtrade database.Total: USD 1,986 millionOthers
1.8%
Europe
39.1%
Russian 
Federation
13.0%
Russian 
Federation
33.2%Americas
0.3%
Other 
Europe
5.0%Others
1.9%
Other CIS
4.8%Americas
1.1%
CIS
50.0%EU-28
10.3%
CIS
47.6%Other Asia
7.2%Others
0.7%
Russian 
Federation
28.1%EU-28
6.3%
Other CIS
2.4%Other Asia
2.8%Others
1.2%
Americas
5.7%Americas
2.2%
Other Europe
3.7%Other Europe
5.1%
Asia
29.7%Asia
37.6%Uzbekistan
11.3%
China
22.5%Russian 
Federation
14.2%
Kazakhstan
24.1%Other Europe
3.3%Asia
5.4%
Europe
49.7%Asia
4.7%
Europe
11.4%Europe
14.0%Other CIS
4.2%
Other CIS
5.9%China
34.8%EU-28
44.6%EU-28
3.2%
Switzerland
32.6%
CIS
52.5%CIS
43.4%
Kazakhstan
17.5%Uzbekistan
7.0%
Kazakhstan
9.7%Kazakhstan
13.0%Uzbekistan
1.2%
Uzbekistan
4.0%Switzerland
0.2%WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 22 - 
 
  
Although the Kyrgyz Republic recorded persistent deficits in trade in services (until 2019), 
these def icits are considerably smaller than those for trade in goods (Table 1.4). Transportation and 
travel are the two main items, for both imports and exports (roughly 80% of all trade in services). 
The Kyrgyz Republic achieved a surplus in travel -related servic es, whereas its landlocked situation 
requires payments for railroad transport that significantly exceed the income from such services. 
Almost all gold exports are shipped by air.  
Table 1.4 Trade in services, 2012 -19  
(USD million)   
2012  2013  2014a 2015  2016  2017  2018  2019  
Exports  987 1,089  887 849 841 824 830 1,083  
Transport services  181 184 159 189 166 206 213 270 
   Railroad transport  33 35 32 46 29 38 43 44 
   Air transport  129 131 99 100 108 103 121 146 
   Road transport  13 10 6 37 23 47 36 63 
   Other types of transport  7 8 22 6 6 19 13 17 
Travel  434 561 408 421 432 429 460 644 
   Business  187 228 167 181 186 184 198 277 
   Personal  248 333 241 240 247 244 262 367 
Communication services  11 21 21 39 63 37 19 10 
Construction services  33 57 81 66 61 19 11 15 
Insurance services  1 0 1 0 0 0 0 1 
Excursion office services  0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 
Financial services  4 7 3 15 5 26 14 7 
Computer and information services  2 2 1 3 3 3 3 5 
Government services  16 15 7 8 8 8 17 2 
Business services  185 148 110 83 70 39 45 50 
Other services  120 95 97 25 32 56 48 80 
Imports  1,323  1,103  1,223  1,053  1,045  916 963 1,021  
Transport services  643 542 601 454 405 432 493 453 
   Railroad transport  397 353 386 319 264 290 320 316 
   Air transport  109 86 111 73 78 78 68 46 
   Road transport  96 69 65 43 50 55 92 61 
   Other types of transport  41 34 38 19 13 10 14 30 
Travel  350 350 390 403 461 292 314 391 
   Business  186 186 207 214 244 155 167 207 
   Personal  165 165 183 190 217 137 148 184 
Communication services  5 12 16 13 20 13 12 9 
Construction services  9 15 29 29 15 11 8 8 
Insurance services  17 16 13 8 9 8 6 6 
Excursion office services  0 n.a. 0 n.a. n.a. n.a. n.a. n.a. 
Financial services  8 12 12 19 16 29 13 17 
Computer and information services  15 9 13 13 10 13 12 16 
Government services  9 11 13 12 12 15 17 15 
Business services  215 101 85 57 58 69 64 75 
   Of which technical assistance  21 21 20 20 20 20 20 20 
Other services  53 34 52 45 38 34 24 31 
Services balance  -336 -14 -336 -205 -204 -92 -133 62 
Transport services  -462 -358 -442 -265 -239 -226 -280 -184 
   Railroad transport  -364 -318 -355 -273 -235 -252 -276 -273 
   Air transport  19 45 -12 26 30 25 53 99 
   Road transport  -83 -59 -59 -6 -27 -8 -56 3 
   Other types of transport  -34 -26 -17 -13 -7 9 -1 -13 
Travel  85 210 18 18 -29 136 145 252 
   Business  1 42 -40 -33 -58 29 31 69 
   Personal  83 168 58 51 30 107 114 183 
Communication services  7 8 5 26 43 24 7 1 WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 23 - 
 
   
2012  2013  2014a 2015  2016  2017  2018  2019  
Construction services  25 42 52 37 46 8 4 7 
Insurance services  -16 -15 -12 -8 -8 -8 -6 -5 
Excursion office services  0 n.a. 0 n.a. n.a. n.a. n.a. n.a. 
Financial services  -5 -5 -10 -5 -11 -2 1 -10 
Computer and information services  -13 -8 -12 -10 -6 -10 -10 -11 
Government services  7 5 -6 -4 -4 -6 0 -13 
Business services  -30 47 25 26 12 -30 -18 -25 
Other services  67 61 45 -20 -6 23 24 49 
n.a. Not applicable.  
a Available data for 2014 do not allow reconciling the total exports and balance of services with the 
figures of the Balance of Payments table.  
Source:   National Bank of the Kyrgyz Republic, Balance of Payments of the Kyrgyz Republic reports, s everal 
issues.  
Because of its liberal trade policies, especially compared with those of its neighbours in Central 
Asia, the Kyrgyz Republic has important re -exports of goods. Established in 1992, the Dordoi Bazaar 
in the capital, Bishkek, is one of the lar gest public markets in Asia. The Kara -Suu Bazaar, located in 
the southern Osh region, also serves a large community in the multi -ethnic Fergana valley. Together, 
these bazaars constitute platforms not only for exports of locally made goods, but also for re -exports 
made in the Russian Federation and China (e.g. fabrics and footwear) to other countries in the 
region.  
1.3.2   Trends and patterns in FDI  
Although the Kyrgyz Republic maintains an open investment regime with few formal 
restrictions and no screening mecha nism (Section 2.4), FDI inflows are not substantial. In the 
first decade after independence, only the mining sector, where the Kyrgyz Republic has considerable 
untapped resources, attracted outside funds of any significance.   
The accumulated FDI amounted to USD 7.2 billion over the period 2012 -19. FDI has 
fluctuated, peaking in 2015 at almost USD 1.6 billion, then fell, only to exceed USD 1 billion once 
again in 2019 (Table 1.5). According to the data aggregated over those eight years, nearly 
three  quarter s of the FDI was channelled into three broad sectors: manufacturing (35%); 
professional, scientific, and technical activities (25%); and financial services (13%). About 
USD 400 million was invested in the production of petroleum products. According to the authorities, 
a further USD  500-USD 600 million is expected to be provided to this sector in 2021, mainly from 
Chinese investors. Foreign investment in mining and quarrying has generally been on a rising trend 
since 2015, when it amounted to less than USD  15 million. Nevertheless, non -mining activities 
accounted for nearly 90% of the FDI in the Kyrgyz Republic during 2017 -19. Foreign investment in 
the tourism sector has so far been negligible. Most of the capital appears to be invested in the 
northern region s, particularly in and around Bishkek.  
Table 1.5 FDI by economic activity, 2012 -19 
(USD '000)   
2012  2013  2014  2015  2016  2017  2018  2019  
Total  590,733  964,507  727,091  1,573,244  813,961  616,793  851,744  1,076,919  
Agriculture, 
forestry and 
fishing  2,046  345 - 316 211 22 2,328  149 
Mining and 
quarrying  25,678  23,152  74,973  14,728  54,302  80,995  91,846  99,481  
Manufacturing  257,259  317,743  271,250  564,715  251,234  186,334  376,442  340,805  
Electricity, gas, 
steam and air 
conditioning 
supply  15 16,201  43,581  136,705  122,247  79,829  15,831  10,596  
Water supply; 
sewerage, waste 
management 
and remediation 
activities  30 159 32 - - - 4 10 
Construction  27,833  15,505  20,046  107,008  25,386  3,071  71,860  56,016  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 24 - 
 
   
2012  2013  2014  2015  2016  2017  2018  2019  
Wholesale and 
retail trade; 
repair of motor 
vehicles and 
motorcycles  32,626  66,575  37,620  64,832  13,231  30,551  34,533  36,144  
Transportation 
and storage  6,449  10,062  6,043  2,552  18 105 8,727  18,536  
Accommodation 
and food service 
activities  1,760  474 219 38 2,103  2,625  638 833 
Information and 
communication  2,642  3,235  13,169  5,699  1,251  14,422  52,604  138,480  
Financial and 
insurance 
activities  42,234  99,847  28,495  411,884  178,725  81,476  53,940  62,670  
Real estate 
activities  3,961  2,568  3,071  2,846  217 1 730 1,030  
Professional, 
scientific and 
technical 
activities  186,850  403,375  228,570  261,903  164,966  132,449  142,129  309,563  
Administrative 
and support 
service activities  1,083  17 11 1 65 123 76 2,247  
Public 
administration 
and defence, 
compulsory 
social security  - - - - - - - - 
Education  - 5,010  12 17 5 6 - 1 
Human health 
and social work 
activities  127 - - - - 73 8 122 
Arts, 
entertainment 
and recreation  142 240 - - - 4,712  - 181 
Other service 
activities  - 0 - - - - 50 58 
- Nil or rounded to zero.  
Source:  National Statistical Committee.  
China is the principal origin of the foreign investment, representing 35.8% of the accumulated 
FDI during 2012 -19. Other major investors were based in the Russian Federation (17%) and Canada 
(14.3%). Although a substantial share of the Canadian investment is channelled into mining, 
Canadian investors are also engaged in other activities. EU countries , including  the United Kingdom , 
accounted for nearly 15% of  the FDI during 2012 -19.13 The entry of the Kyrgyz Republic into the 
EAEU does not appear to have changed the provenance of investment flows in any major way thus 
far, although it may have prompted the surge in investment from the Russian Federation, China , 
and the United Kingdom in 2015 (Table 1.6). However, the authorities are optimistic that new export 
opportunities provided by the EAEU membership will stimulate investment flows with the creation of 
new joint ventures and other forms of cooperation.  
Table 1.6 FDI by partner country, 2012 -19 
(USD '000)   
2012  2013  2014  2015  2016  2017  2018  2019  
Total  590,733  964,507  727,091  1,573,244  813,961  616,793  851,744  1,076,919  
Non-CIS  530,809  839,853  636,025  996,175  499,171  467,727  695,862  999,212  
    China  141,172  468,337  221,646  474,412  301,303  303,025  338,093  338,053  
    Canada  132,978  104,822  183,510  130,251  118,893  4,591  98,439  259,241  
    Switzerland  21,243  17,596  3,707  5,281  3,561  5,476  19,351  103,264  
    Turkey  22,347  23,764  29,211  111,112  33,236  17,175  93,461  94,566  
    United Kingdom  70,653  81,708  53,387  189,509  723 28,866  27,439  73,202  
    Netherlands  1,146  9,500  6,504  13,211  9,372  25,416  57,319  61,430  
    Cyprus  1,298  34,544  31,652  27,989  15,767  10,960  6,908  34,055  
    United States  5,527  8,244  14,899  12,034  3,190  7,366  5,740  6,595  
 
13 UK-based investors represented slightly more than 50% of the investment of EU origin.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 25 - 
 
   
2012  2013  2014  2015  2016  2017  2018  2019  
    Japan  - 0 - - - 15,927  399 5,873  
    Germany  32,643  6,542  18,222  6,958  716 33,599  9,740  3,314  
    British Virgin 
Islands  11,041  4,355  16,558  340 287 58 6,385  1,979  
    Pakistan  4,405  5,902  4,574  3,814  3,009  3,821  8,890  1,551  
    Afghanistan  99 295 509 335 691 - 7 1,318  
    Korea, Republic 
of 27,829  9,505  3,195  3,152  970 722 3,909  1,307  
CIS 59,925  124,654  91,066  577,069  314,790  149,066  155,882  77,707  
    Russian 
Federation  25,445  69,817  60,400  515,488  291,538  98,621  124,361  38,225  
    Kazakhstan  34,083  52,314  30,534  20,796  23,109  46,965  29,447  38,145  
    Azerbaijan  125 17 - - - 123 153 778 
    Belarus  168 1,796  91 40,678  56 35 25 397 
    Uzbekistan  25 90 27 75 17 2,759  1,823  140 
    Ukraine  69 282 3 14 66 563 37 17 
    Tajikistan  - - 12 17 5 0 36 6 
- Nil or rounded to zero.  
Source:  National Statistical Committee.   WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 26 - 
 
  2  TRADE AND INVESTMENT REGIMES  
2.1  General Framework  
The Kyrgyz Republic became an independent state in 1991. The Constitution was originally 
adopted in 1993 and has since been amended several times. In 2010, the system of government 
changed significantly, from a presidential to a mixed presidential -parliamentary system.1 Following 
a referendum in December 2016, amendments to 26 articles of the Constitution took effect in 2017. 
According to the authorities, these amendments were designed to strengthen the independence and 
sovereignty of the Kyrgyz Republic, strengthen parliamentarism by clarifying the principles o f 
interaction between the legislative and executive levels of authority, and improve the constitutional 
framework for the continuation of judicial and law enforcement reform.  
The President is the Head of State and is elected directly for a non -renewable t erm of six years. 
The President calls for elections to the national Parliament and local parliaments; signs and 
promulgates laws and returns laws to the Parliament with objections; submits to the Parliament 
candidates for election as judges of the Supreme Court or judges to be dismissed from the Court; 
appoints or dismisses the Prosecutor General, with the consent of the Parliament; appoints or 
dismisses from office members of the Government in charge of state agencies dealing with defence 
and national secu rity; and submits to the Parliament candidates to be elected to the position of 
chairperson of the National Bank of the Kyrgyz Republic (NBKR). The President represents the 
Kyrgyz  Republic at home and abroad and conducts negotiations and signs internationa l treaties with 
the consent of the Prime Minister. The President is also the Commander in Chief of the Armed Forces. 
The President's powers are exercised through decrees and orders, which are legally binding 
throughout the entire territory.2 The President ial elections held in October 2017 were the first time 
in Central Asia that an elected president was replaced in a peaceful election.  
The Jogorku Kenesh (Parliament) is the highest representative body, and it exercises legislative 
power and oversight funct ions within the limits of its powers. The Jogorku Kenesh consists of one 
chamber of 120 deputies who are elected for a five -year term through a system of proportional 
representation. Its main powers are to: (i) adopt laws on the scheduling of referenda; (i i) call for 
presidential elections; (iii)  introduce changes to the Constitution; (iv) adopt laws, and ratify or 
withdraw from  international treaties; (v) resolve issues relating to the alteration of state borders; 
(vi) approve the country's budget; (vii) d ecide on matters regarding administrative and territorial 
structure3; (viii) issue amnesty acts; (ix) approve the programme of the activity of the Government 
and define its structure and composition (except for the members heading state agencies in charge  
of defence and national security); (x)  approve nationwide development programmes submitted by 
the Government; (xi)  adopt decisions of confidence or no confidence in the Government; (xii) elect 
judges of the Supreme Court, the chairperson of the NBKR, memb ers of the Central Commission on 
elections and referenda, and members of the Chambers of Account Ombudsman; and (xiii)  approve 
the appointment or dismissal of the Prosecutor General.4  
The Government is the highest executive body and is accountable to the  Jogorku Kenesh. The 
Government consists of the Prime Minister, the First Vice -Prime Minister, Vice -Prime Ministers, the 
Head of the Government Office -Minister, Ministers, and Chairpersons of State Committees. There 
are currently 12 Ministries – Agricultur e, Food Industry and Land Reclamation; Culture, Information 
and Tourism; Economy; Education and Science; Emergency Situations; Finance; Foreign Affairs; 
Health; Internal Affairs; Justice; Labour and Social Development; and Transport and Roads – and 
four St ate Committees – Defense Affairs; Industry, Energy, and Mineral Resources; Information 
Technologies and Communications; and National Security.5  
 
1 Toktogazieva, S. (2019), " Constitution Without Constitutionalism? Challenges to Constitutionalism in 
the Kyrgyz Republic", Constitutional Review , Vol. 5, No.  2, December, pp.  276-293, 285. Viewed at: 
https://consrev.mkri.id/index.php/const -rev/article/view/524 . 
2 Constitution, Articles 60 -64.  
3 The territory of the Kyrgyz Republic is divided into 531 administrative territorial units: 7 provinces, 
2 cities of national importance (Osh and Bishkek), 40 districts, 29 cities, and 453 ayil aymaqs .   
4 Constitution, Article  74(1) -(4). The Parliament also has the powers to declare a state of emergency, 
decide on matters of war and peace , impose martial law and declare a state of war, and decide on matters 
concerning the use of the armed forces outside its territory pursuant to international obligations. Constitution, 
Article 74(5). 
5 Jogorku Kenesh Resolution No.  2378-VI of 20 April 2018 . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 27 - 
 
  
The parliamentary faction or coalition of factions accounting for more than half of the total 
number of deputi es nominates a candidate for the office of Prime Minister, who submits to the 
Parliament the programme, structure, and composition of the Government. In the event that no 
party obtains more than half of the number of deputies or that Parliament fails to ap prove the 
programme structure and composition of the Government within a certain period of time, the 
President must propose to one of the factions to create a parliamentary majority and nominate the 
candidate for the office of Prime Minister.6 The Preside nt is obligated to dismiss the Government if 
during a three -month period the Parliament repeatedly adopts a vote of no confidence in the 
Government. If the Prime Minister requests the Parliament to consider a vote of confidence and the 
Parliament refuses t o do so, the President must either dismiss the Government or call early elections 
for a new Parliament.7  
The main powers of the Government are to: (i)  ensure the implementation of the Constitution 
and laws; (ii)  implement the domestic and foreign policy of the State; (iii)  adopt measures to ensure 
law and order, and the rights and freedom of citizens, and to protect public order and combat crime; 
(iv) ensure the implementation of measures aimed at protecting the sovereignty of the State, 
territoria l integrity, and the constitutional order, and those to strengthen defence capacity, national 
security, and law and order; (v)  ensure the implementation of financial, pricing, tariff, investment, 
and tax policy; (vi)  draft and submit to the Parliament the national budget and take measures for 
its execution, take measures to secure equal conditions for the development of all forms of property 
and their protection, and manage public property; (vii)  ensure the implementation of a unified state 
policy in socio -economic and cultural areas; (viii)  develop and implement nationwide programmes 
of economic, social, scientific, technical, and cultural development; (ix)  ensure the implementation 
of foreign economic activity; and (x) ensure interaction with civil society .8 
According to Law No.  241 of 20 July 2009 on Regulatory Legal Acts9, the hierarchy of normative 
legal acts is as follows: Constitution and laws amending or supplementing the Constitution, 
Constitutional Law, Code, Law, Presidential Decree, Jogorku Kene sh Resolution, Government 
Resolution, Acts of the NBKR and the Central Commission on Election and Referenda, normative 
legal acts of public authorities entitled to issue normative legal acts, and normative legal acts of 
local representative bodies. The Law  on Regulatory Legal Acts also outlines provisions with respect 
to substantive and procedural aspects of the adoption, implementation, and interpretation of 
regulatory legal acts. The procedural provisions include requirements regarding regulatory impact 
assessment, public discussion10, and transparency through the inclusion of adopted legal acts in a 
state registry of normative legal acts and their official publication.11 Regulatory legal acts shall in 
principle enter into force 10 days after their officia l publication, in the case of laws, and 15 days 
after their date of publication, in the case of other regulatory legal acts.  
International treaties in force for the Kyrgyz Republic and universally recognized principles and 
norms of international law are i ntegral parts of the legal system. The procedures and modalities of 
application of such treaties and principles and norms of international law are to be defined by law.12  
Judicial power is exercised only by courts. The Supreme Court is the highest body of  judicial 
power in respect of civil, criminal, and administrative cases, and it supervises local courts. A 
Constitutional Chamber exists as part of the Supreme Court to perform constitutional oversight. 
 
6 Constitution, Article  84. 
7 Constitution, Articles 85 -86.  
8 Constitution, Article  88. 
9 Law No.  241 of 20 July 2009, as amended by Laws No.  23 of 13 May 2011, No.  195 of 7 December 
2012, No.  17 of 14 February 2013, No.  22 of 19 February 2013, No.  30 of 22 February 2013, No.  131 of 
11 July 2013, No.  35 of 18 February 2014, No.  47 of 14 March 2014, No.  112 of 7 July 2014, No.  224 of 
29 December 2016, No.  137 of 20 July 2017, No.  115 of 8 August 2019, and No.  33 of 3 April 2020.  
10 Draft regulatory acts di rectly affecting the interests of citizens and legal entities and draft regulatory 
acts regulating entrepreneurial activity must be made available for public discussion on the official website of 
the rule -making body or, in the absence of such a website, m ust be published in the media. One of the 
commitments made by the Government in its National Action Plan 2018 -20 to build an open government is to 
improve the procedures for public discussion provided for in the Law on Regulatory Legal Acts. In this respec t, 
the creation of a unified portal for public discussion of draft normative acts is envisaged.  
11 Law No.  241 of 20 July 2009, Articles  6, 22-23, and 28 -30.  
12 Constitution, Article  6.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 28 - 
 
  Although the Constitution provides for the possibilit y of establishing specialized courts, to date no 
such courts have been created.  
Compared with other countries in Central Asia, the Kyrgyz Republic is widely regarded to have 
a significantly more open political and economic system, but the Asian Developmen t Bank (ADB) 
observes that this "has not translated into better government effectiveness and political stability".13 
Recent analysis of the Kyrgyz Republic's economic performance emphasizes the critical role of poor 
governance as a major impediment to the development of a sound business and investment climate. 
It has been argued that "governance is the main bottleneck for private sector growth", and 
"[r]elative to other low - and middle -income countries (LMICs) and even to low -income countries in 
the Worldwi de Governance Indicators, the Kyrgyz Republic falls well behind average performance in 
key dimensions, including rule of law, control of corruption, and political stability".14 The Government 
acknowledges the need to improve the quality of governance, as i llustrated by various recent reform 
efforts directed at combating corruption, enhancing the integrity of the judicial and law enforcement 
system, and improving the efficiency and transparency of public administration more generally.  
The Kyrgyz Republic bec ame a party to the United Nations Convention Against Corruption in 
2005. Transparency International ranks the Kyrgyz Republic 126th of 180 countries on its Corruption 
Perceptions Index 2019. The Kyrgyz Republic is one of three post -Soviet States that have 
significantly improved on this index since 2012 but that "continue to experience state capture and a 
failure to preserve checks and balances".15 A 2018 Organisation for Economic Co -operation and 
Development (OECD) study provides a comprehensive assessment of the Kyrgyz Republic's 
implementation of the Istanbul Anti -Corruption Action Plan.16 While anti -corruption activities have 
intensified in recent years, significant challenges remain with respect to the institutional framework 
for the development and impl ementation of anti -corruption policy17, the prevention of corruption18, 
the criminalization of corruption, and the prevention and prosecution of corruption in the customs 
sector. In the latter regard, the OECD report specifically recommends, among other th ings, that the 
Kyrgyz Republic complete its accession to the Revised Kyoto Convention of the World Customs 
Organization, adopt rules to prevent and resolve conflicts of interest, improve the recruitment and 
promotion process for customs service employees, consider increasing the remuneration of customs 
officials, implement measures aimed at decreasing the use of indicative prices for customs clearance 
purposes, implement measures aimed at combating unreliable declarations, put in place procedures 
for the el ectronic declaration and for the automatic distribution of declarations between employees, 
and review the functions and powers of the internal security and anti -corruption control department.  
Regarding the judicial system, a perception exists that courts are not independent, especially 
in light of the role that political authorities play in the appointment, oversight, and dismissal of 
 
13 ADB, Kyrgyz Republic: Improving Growth Potential , September 2019, p . 36. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . 
14 World Bank, Kyrgyz Republic – From Vulnerability to Prosperity: A Systematic Country Diagnostic,  
2018, p.  18. Viewed at: http://docu ments.worldbank.org/curated/en/516141537548690118/pdf/Kyrgyz -
Republic -SCD-English -Final-August -31-2018-09182018.pdf . The report also observes that the Kyrgyz Republic 
"is doing reasonably well on the formal quality of the regulatory environment", but that there are "significant 
gaps between de jure design of regulation and de facto implementation" on account of capacity constraints 
within the Government and corruption (Ibid., pp.  20-21). T he importance of governance and rule of law 
reforms is also highlight ed in recent reports of other international bodies, e.g. European Bank for 
Reconstruction and Development (EBRD), Kyrgyz Republic Country Strategy 2019 -2014, 2019, p.  9. Viewed at: 
https://www.ebrd.com/where -we-are/kyrgyz -republic/overview.html ; and IMF (2019), Kyrgyz Republic: 
Article  IV Consultation –Press Release and Staff Report , IMF Country Report No.  19/208, pp.  18-19. Viewed at: 
https://www.imf.org/en/Publications/CR/Issues/2019/07/02/Kyrgyz -Republic -2019-Article -IV-Consultation -
Press -Release -and-Staff-Report -47085 . 
15 Transparency International, Corruption Perceptions Index 2019 , p. 16. Viewed at: 
https://www.transparency.org/cpi2019 . 
16 OECD, Anti-corruption Reforms in Kyrgyzstan. 4th Round of Monitoring of the Istanbul Anti -Corruption 
Action Plan , 2018. Viewed at: https://www.oecd.org/corruption/acn/OECD -ACN-Kyrgyzstan -4th-Round -
Monitoring -Report -2018-ENG.pdf .   
17 The OECD report argues that the anti -corruption policies are fragmented among too many bodies and 
recommends the creation of a single body tasked with the development, coordination, and monitoring of the 
implementa tion of the anti -corruption policy and the coordination of a public education programme.  
18 In this respect, the OECD report discusses developments regarding legislation on conflict of interests 
and reforms of asset declarations of public officials, protect ion of whistle -blowers, integrity of the judiciary and 
public prosecution authorities, administrative procedures (use of e -government tools and transparency and 
access to information), public procurement, and business integrity.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 29 - 
 
  judges.19 As a result of the lack of trust in the courts, market participants often have recourse to 
alternative means of d ispute settlement, which may explain the fact that the Kyrgyz Republic is 
involved in a relatively large number of international arbitration cases.20  
A programme of judicial reform initiated in 2012 and coordinated by the Council for Judicial 
Reform in th e Office of the President resulted in the adoption, in 2017, of several new codes and 
laws. These include the Criminal Code, the Criminal Procedure Code, the Code of Offences, the Code 
Concerning Violations of the Criminal Executive Code, the Law About Gro unds of Amnesty and its 
Application, and the Law on Probation. The new codes and laws entered into force in January 2019.21 
The basic objective of the reform process has been to abandon the traditional, repressive approach 
to the judicial process through e nhanced protection of human rights, decriminali zation and 
depenalization, and prohibition of the abusive and arbitrary exercise of judicial and police powers. 
The main responsibility for implementation of these codes and laws rests with the Ministry of Int ernal 
Affairs. Reform of the judicial and law enforcement system was also identified as a priority in the 
Development Program of the Kyrgyz Republic for the Period 2018 -2022 and in the National 
Development Strategy of the Kyrgyz Republic 2018 -40.22  
A Decr ee establishing a Business Ombudsman was signed in December 2018 and entered into 
force on 15 January 2019.23 The main role of the Business Ombudsman is to investigate complaints 
by businesses about the abuse of power by the State. New legislation to combat money laundering 
and the financing of terrorism came into force in September 2018.  
Another set of policy i nitiatives aimed at strengthening the rule of law and improving the 
quality of public administration was launched in 2019 when the Government adopted the National 
Action Plan 2018 -20 to build an open government.24 It contains 22 commitments in 9 areas: 
(i) access to information and open data; (ii)  judicial and legislative openness; (iii)  citizen 
engagement with government; (iv)  elections and political financing; (v)  fiscal openness; (vi)  natural 
resources and development; (vii)  public integrity measures; (v iii) public procurement; and 
(ix) citizen involvement.  
2.2  Trade Policy Formulation and Objectives  
The Ministry of Economy is the central executive authority responsible for state policy in the 
fields of macroeconomics, antimonopoly, tariffs, licensing, investment, foreign economic relations, 
fiscal policy, public -private partnerships (PPPs), state mate rial reserves, economic and regional 
development, state property management, technical regulation and metrology, the Halal industry, 
trade, entrepreneurship and optimization of the regulatory framework for business activities, and 
free economic zones.   
The WTO Interdepartmental Commission was created in 1999 to coordinate WTO multilateral 
trade issues. It sets out the distribution and responsibilities of the ministries and other government 
 
19 It has been observed, in  this regard, that the constitutional amendments that took effect in 2017 
weakened the independence of the judiciary. Joint Opinion of the European Commission for Democracy through 
Law (Venice Commission) and OSCE Office for Democratic Institutions and Hum an Rights (OSCE/ODIHR), 
Kyrgyz Republic, Endorsed Joint Opinion on the Draft Law on Introduction of Amendments and Changes to the 
Constitution , 2016. Viewed at: https://ww w.venice.coe.int/webforms/documents/?pdf=CDL -AD(2016)025 -e; 
and OECD, Anti-corruption Reforms in Kyrgyzstan. 4th Round of Monitoring of the Istanbul Anti -Corruption 
Action Plan , 2018.  Viewed at:  https://www.oecd.org/corruption/acn/OECD -ACN-Kyrgyzstan -4th-Round -
Monitoring -Report -2018-ENG.pdf .   
20 IMF (2019), Kyrgyz Republic: Article  IV Consultation –Press Release and Staff Report , IMF Country 
Repor t No. 19/208, p.  19. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2019/07/02/Kyrgyz -
Republic -2019-Article -IV-Consultation -Press -Release -and-Staff-Report -47085 . 
21 An action plan for the implementation of the new codes and laws was adopted in April 2017 and 
amended in April 2018. Decree No.  120-R of 14 April 2017, as amended by Decree No.  155-R of 28 April 2018.  
22 Development Program of the Kyrgyz Republic for the Period 2018 -2022, Section 5.7. Viewed at:  
https://www.un -
page.org/files/public/the_development_program_of_the_kyrgyz_republic_f or_the_period_2018 -2022.pdf ; and 
National Development Strategy of the Kyrgyz Republic 2018 -40, Sections IV.3 and V,  adopted by Decree 
No. 221 of 31 October 2018.  Viewed at: http://donors.kg/en/strategy/5174 -national -development -strategy -of-
the-kyrgyz -republic -for-2018-2040. 
23 Decree No.  647 of 31 December 2018.  
24 This Plan was adopted pursuant to the Kyrgyz Republic's accession in 2017 to the  Open Government 
Partnership.   WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 30 - 
 
  bodies with respect to the WTO Agreements.25 The Ministry of Econom y is given the primary role in 
coordinating the Commission and has the most responsibilities for ensuring compliance with WTO 
obligations under the GATT and GATS. Several other ministries are given direct responsibilities over 
certain agreements or provisi ons. For example, the Ministry of Agriculture, Food Industry and Land 
Reclamation has responsibility for the provisions of the WTO Agreement on Agriculture. The 
Interdepartmental Commission meets as needed, typically about five times per year. The 
governme nt bodies are represented at the level of minister, deputy minister, or head of department. 
Certain representatives from the private sector or civil society, e.g. a chamber of commerce, may 
also be invited to attend sessions of the Commission.26 Public cou ncils for the State Customs Service 
and for the Ministry of Economy enable private sector involvement in trade policy.27 
Law No.  41 of 2 July 1997 on State Regulation of Foreign Trade Activity provides the overall 
framework for the regulation of foreign tr ade activity in the Kyrgyz Republic.28 Its purpose is to 
protect the economic sovereignty of the Kyrgyz Republic, promote foreign trade activities, and 
ensure the effective integration of the Kyrgyz economy. The Law defines certain basic principles of 
trade policy and identifies, in general terms, powers and responsibilities of the Government with 
respect to particular aspects of foreign trade, including the customs tariff, measures to protect the 
domestic market, quantitative restrictions and bans on impor ts and exports, negotiation and 
conclusion of international agreements, licensing, export control, technical regulations, sanitary and 
phytosanitary measures, environmental standards and requirements, and free economic zones. It 
also contains provisions on  the promotion and monitoring of foreign trade activities. Following the 
accession of the Kyrgyz Republic to the Eurasian Economic Union (EAEU), the Law  on State 
Regulation of Foreign Trade Activity  was amended in June 2015 in the areas of trade remedies a nd 
licensing of imports and exports of goods.    
Since the Law on State Regulation of Foreign Trade Activity sets out only a general framework, 
its provisions were implemented through more specialized trade laws, including the Customs Code 
(2004), the Custo ms Tariff Law (2006), the Anti -Dumping Act (1998), the Law on Subsidies and 
Countervailing Measures (1998), the Act on Export Controls (2003), and the Law on Technical 
Regulations (2004). Other laws relevant to trade are the Law on Licensing, the Law on In vestment s, 
the Tax Code, and the Civil Code.  
The accession to the EAEU, in August 2015, entailed significant changes to many aspects of 
the Kyrgyz Republic's trade regime. In some cases, domestic law was substantially amended or 
repealed to align it with E AEU law. For example, the Customs Code (2004) is no longer in force and 
was superseded by legislation enacted to implement the EAEU Customs Code (Section 3 .1.1). In the 
case of trade remedies, domestic law was not harmonized with EAEU law but became inappl icable 
because the EAEU provides for the application of trade remedies at the EAEU level (Section 3 .1.6).  
The transformation of the Kyrgyz Republic's economy towards a more productive, 
private -sector -oriented economy requires diversification of export pro ducts and export markets 
(Section 1.3). Trade and trade policy have an important contribution to make in this regard. Specific 
products that appear to offer significant scope for expansion of exports include cotton, processed 
food, garments, and various pr imary material inputs, while there is also potential for exports of 
electricity and in services sectors, such as tourism.29 To realize the potential for expansion of exports 
in these sectors, it will be necessary to overcome various constraints, such as th e lack of institutional 
capacity to meet international sanitary and phytosanitary standards. More generally, the lack of 
 
25 Decree No.  374 of 23 June 2003.  
26 Decree No.  374 of 23 June 2003.  
27 Public councils, previously known as public -sector advisory councils, allow private citizens to 
participate in the control of the activities of executive a uthorities and in discussions on the formation and 
implementation of policy. Such public councils currently exist for 35 ministries, departments, state committees, 
agencies, and services.  
28 Foreign trade activity is defined as the international exchange o f goods, services, information, and 
intellectual property rights.  
29 ADB, Kyrgyz Republic: Improving Growth Potential , September 2019. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf ; and 
World Bank, Kyrgyz Republic – From Vulnerability to Prosperity: A Systematic Country Diagnosis , 2018. Viewed 
at: http://documents.worldbank.org/curated/en/516141537548690118/pdf/Kyrgyz -Republic -SCD-English -
Final-August -31-2018-09182018.pdf . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 31 - 
 
  connectivity with global markets due to the geographical situation of the Kyrgyz Republic30 and the 
state of its infrastructure mean th at implementing an export -oriented trade strategy poses serious 
challenges in terms of high transport and logistical costs (Section 4 .4.3). 
An important objective of the National Sustainable Development Strategy for the Period 
2013-17 was to improve the co untry's export performance through an export development strategy 
aimed at enhancing the competitiveness of domestic products on external markets and promote 
exports of services. Growth in exports was to be supported by the development of transport 
infrast ructure, marketing and information support for domestic export -oriented enterprises, and 
implementation of the one -stop-shop principle for obtaining necessary clearance documents.31  
Similarly, the Development Program of the Kyrgyz Republic for the Period 
2018-2022 indicates that one of the priorities of the Government's foreign economic policy will be 
to create favourable external conditions for the promotion of exports of goods and services to foreign 
markets. In this regard, the Government is pursuing  the following objectives: (i) strengthen and 
develop trade and economic cooperation with key trading partners, such as the Russian Federation, 
China, the countries of Central Asia, Turkey, the European Union, and countries in the Middle East; 
(ii) take an ac tive part in expanding the framework of cooperation of the Eurasian Economic 
Community, including in the negotiation process for concluding free trade agreements (FTAs) and 
non-preferential trade agreements with third countries; (iii) continue to work to i mprove quality 
standards to meet international standards; (iv) adopt measures to effectively use the European 
Union's Generalized System of Preferences Plus (GSP+) scheme; (v) complete the work on the 
modernization and updating of checkpoints at on the bor der, and create a unified database for 
participants in foreign economic activities with a view to facilitating the promotion of their goods and 
services; (vi) assist small and medium -sized businesses in preparing business plans and promoting 
products to fo reign markets by establishing a Project Preparation Fund; (vii) develop a set of 
measures for medium - and long -term financing of export -oriented enterprises and priority sectors 
with high export potential;  and (viii) expand the markets for attracting capit al, and intensify its work 
with international organizations to implement infrastructure projects in key export -oriented sectors 
of the economy, such as agriculture, light industry, and tourism.32  
Pursuant to the Development Program, the Government adopted  in December 2018 an export 
development programme that sets out specific measures to increase exports in certain priority 
sectors33 (Section 3 .2.4).  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
The Kyrgyz Republic was the first Soviet successor State to accede to the WTO, in 
December  1998, with a very open trade regime. It is an observer to the Committee on Government 
Procurement and is currently in the process of acceding to the Agreement on Government 
Procurement (Section 3 .1.6). The Kyrgyz Republic acc epted the 2005 Protocol Amending the TRIPs 
 
30 Eurasian Development Bank, Economic Geography of Eurasian Countries , 2017, p.  47. ("Kyrgyzstan 
and Tajikistan share the third and fourth places among the world's land -locked countries located at the highest 
average elevations above sea level".) The ADB ob serves that "[t]he Kyrgyz Republic is one of the most isolated 
and geographically challenged countries in the world. It is distant from the world's major commercial centres. 
It is 'double landlocked' as it shares a land boundary with three countries that a re also landlocked. Apart from 
its international isolation, subnational economic integration is impeded by extremely rugged mountainous 
terrain". ADB, Kyrgyz Republic: Improving Growth Potential , September 2019,  p. 5. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . 
31 National Council for Sustainable Development of the Kyrgyz Republic, National Sustainable 
Development Strategy for the Kyrgyz Republic for the Period of 2013 -2017, pp. 62-63. Viewed at: 
https://www.un -page.org/files/public /kyrgyz_national_sustainable_development_strategy.pdf . 
32 Development Program of the Kyrgyz Republic for the Period 2018 -2022, pp. 13-14. Viewed at: 
https://www.un -
page.org/files/public/the_development_program_of_the_kyrgyz_republic_for_the_period_2018 -2022.pdf ; and 
National Development Strategy of the Kyrgyz Republic for 2018 -2040, pp. 32-33. Viewed at: 
http://donors.kg/en/strategy/5174 -national -development -strategy -of-the-kyrgyz -republic -for-2018-2040. 
33 Government Resolution No.  596 of 20 December 2018 about Approv al of the Program of the Kyrgyz 
Republic for Development of Export of the Kyrgyz Republic for 2019 -2022.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 32 - 
 
  Agreement on 6 February 2016 and the 2014 Protocol concerning the Trade Facilitation Agreement 
on 6 December 2016.  
Since the previous Review, the Kyrgyz Republic has submitted notifications to the WTO in the 
areas of anti -dumping, countervailing measures, safeguard measures, intellectual property rights, 
trade -related investment measures, preferential rules of origin, trade in services, trade facilitation, 
import licensing, sanitary and phytosanitary measures, reg ional trade agreements, state trading 
enterprises, technical barriers to trade, agriculture, and customs valuation (Table A2.1). As at 
30 April 2020, there were a number of unfulfilled notification obligations, notably with respect to 
import licensing and subsidies.   
The Kyrgyz Republic is a member of several groups in the WTO, including the group of 
Article  XII Members and the group of low -income economies in transition. It participates in 
discussions under the Joint Ministerial Statement Initiatives laun ched in December 2017 on 
investment facilitation for development and on micro, small, and medium enterprises.  
The Kyrgyz Republic was involved in one WTO dispute settlement proceeding. In 2018, 
Ukraine requested consultations with respect to anti -dumping duties on imports of steel pipes into 
the Kyrgyz Republic applied pursuant to a decision of the Eurasian Economic Commission (EEC).34  
2.3.2   Regional and preferential agreements  
2.3.2.1   FTAs predating accession to the Eurasian Economic Union  
The Kyrgyz Republic is a party to the Treaty on a Free Trade Area between Members of the 
Commonwealth of Independent States .35 The Treaty was signed on 18 October 2011 and entered 
into force on 20 September 2012.36 The other parties to the Treaty are Armenia, Belarus, 
Kazakhstan, the Republic of Moldova, the Russian Federation, Tajikistan, Ukraine, and Uzbekistan. 
According to the WTO database on regional trade agreements, the Kyrgyz Republic currently has 
bilateral FTAs in force with Armenia37, Kazakhstan38, the Republic of Moldov a39, Ukraine40, and 
Uzbekistan.41 It also has FTAs in force with Azerbaijan, Belarus, Tajikistan, and Turkmenistan.  
Regarding  the FTA between the Russian Federation and the Kyrgyz Republic, the Russian Federation 
notified in 2017 that this and several othe r FTAs were terminated pursuant to Article  23.2 of the 
Treaty on a Free Trade Area between Members of the Commonwealth of Independent States.   
2.3.2.2   Accession to the Eurasian Economic Union  
The Kyrgyz Republic became a member of the EAEU42 on 12  August 2015 whe n the Treaty on 
the Accession of the Kyrgyz Republic to the Treaty on the Eurasian Economic Union 
(Accession  Treaty) entered into force.43 The main legal instruments defining the terms of this 
accession are the Accession Treaty signed in December 2014, two  Protocols dated 8 May 2015, and 
one dated 11 April 2017.44   
The most important terms of the Kyrgyz Republic's accession to the EAEU can be briefly 
summarized as follows. First, in acceding to the EAEU, the Kyrgyz Republic also acceded to other 
internatio nal treaties concluded in the context of the Customs Union and the Single Economic Space 
 
34 WTO document WT/DS570/1, 22 October 2018.  
35 WTO document WT/REG/GEN/N/9, 28 February 2017.  
36 The Treaty entered into force for the Kyrgyz Republic on 13 December 2013. WTO document 
WT/REG/N/2, 18 March 2015.  
37 Entry into force: 27 October 1995. WTO document WT/REG114/1, 16 January 2001.  
38 Entry into force: 11 November 1995. WTO document WT/REG8 1/1, 29 September 1999.  
39 Entry into force: 21 November 1996. WTO document WT/REG76/1, 15 June 1999.  
40 Entry into force: 19 January 1998. WTO document WT/REG74/1, 15 June 1999.  
41 Entry into force: 20 March 1998. WTO document WT/REG75/1, 15 June 1999.  
42 The EAEU Treaty entered into force on 1 January 2015. The Russian Federation notified the Treaty to 
the WTO in December 2014. WTO documents WT/REG358/N/1 and S/C/N/785, 15 December 2014. The 
Factual Presentation on the EAEU Treaty was circulated in WTO document WT/REG358/1, 13 July 2018.  
43 The Accession Treaty was notified in WTO documents WT/REG366/N/1 and S/C/N/823, 
2 September  2015. The Factual Presentation was circulated in WTO d ocument WT/REG366/1, 29 August 2018.  
44 WTO document WT/REG366/1, 29 August 2018, Box  2.1 – Structure of Legal Instruments on the 
Kyrgyz Republic's Accession to the EAEU.   WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 33 - 
 
  and that form an integral part of the EAEU legal framework.45 Second, the application of the EAEU 
Treaty by the Kyrgyz Republic is subject to certain transitional meas ures and temporary exceptions 
to the EAEU Common External Tariff, as defined in one of the Protocols.46 The Accession Treaty 
required that, subject to the Protocol on Transitional Provisions, the Kyrgyz Republic apply the EAEU 
Common Customs Tariff from th e date of adoption by the Supreme Eurasian Economic Council of a 
decision abolishing customs controls on goods and vehicles across the border between the Kyrgyz 
Republic and Kazakhstan. That decision was adopted on 8 May 2015. On that date, the Council als o 
adopted a decision provided for in the Accession Treaty to abolish sanitary and phytosanitary control 
measures at that border. Third, as at the date of accession, the Kyrgyz Republic will apply all acts 
of the bodies of the EAEU and decisions of the Supr eme Eurasian Economic Council and the EEC in 
effect on that date, subject to the Protocol on Transitional Provisions. Finally, the Accession Treaty 
requires the Kyrgyz Republic to apply in trade relations with third countries a regime that complies 
with th e regime applied by all EAEU member States in accordance with the international treaties 
concluded by them with such countries.  
As discussed in the previous Review and elsewhere in this Report (Section 3 .1.3), a significant 
issue that arose in the context  of the Kyrgyz Republic's accession to the EAEU is the relationship 
between its obligation to apply the EAEU Common External Tariff and the commitments it made in 
its WTO accession process regarding its customs tariff bindings.   
2.3.2.3   Participation in agreement s concluded by the EAEU  
By virtue of its membership in the EAEU, the Kyrgyz Republic is a party to the FTA with 
Viet Nam that entered into force in 2016, an interim agreement leading to the establishment of a 
free trade area with the Islamic Republic of Iran that entered into force in October 201947, and an 
agreement on economic and trade cooperation with China. The EAEU and its member States 
concluded negotiations on FTAs with Singapore and Serbia in October 2019, and currently are in the 
process of nego tiating FTAs with Egypt, India, and Israel.  
2.3.2.4   Enhanced Partnership and Cooperation Agreement with the European Union  
In July 2019, the European Union and the Kyrgyz Republic concluded an Enhanced Partnership 
and Cooperation Agreement (EPCA). This agreement  will replace the Partnership and Cooperation 
Agreement that entered into force in 1999. Its objective is "to reflect the developments in Kyrgyzstan 
and in the region, build on achievements of bilateral cooperation to date and provide a new, modern 
and amb itious legal framework for the future bilateral partnership".48 The main areas of cooperation 
covered by the EPCA are: (i)  political cooperation and reforms; (ii)  enhanced cooperation in foreign 
and security policy; (iii)  justice, freedom, and security; (i v) trade; and (v)  enhanced cooperation in 
some 24 other key sectors. The European Union also committed to supporting the Kyrgyz Republic 
through the provision of financial and technical assistance.  
The Kyrgyz Republic was accorded the status of beneficiar y of the European Union's GSP+ 
scheme in January 2016.  
2.3.3   Other agreements and arrangements  
Apart from its membership in the EAEU, the Kyrgyz Republic participates in several other 
regional arrangements, some of which are relevant to trade. For example, the Central Asian Regional 
 
45 These other international treaties are listed in an Annex to the Accession Treaty . One of the Protocols 
of 8 May 2015 contains amendments to the EAEU Treaty and international treaties incorporated into EAEU law 
as a consequence of the Kyrgyz Republic's accession. Protocol on Amendments to the Treaty on the Eurasian 
Economic Union of 29  May 2014, and Separate International Agreements Incorporated into the Law of the 
Eurasian Economic Union, in View of the Accession of the Kyrgyz Republic to the Treaty on the Eurasian 
Economic Union of 29 May 2014.   
46 Protocol on the Conditions and Trans itional Provisions on the Application by the Kyrgyz Republic of the 
Treaty on the Eurasian Economic Union of 29 May 2014, Separate International Treaties Incorporated into the 
Law of the Eurasian Economic Union, and the Acts of the Bodies of the Eurasian E conomic Union due to the 
Accession of the Kyrgyz Republic to the Treaty on the Eurasian Economic Union of 29 May 2014 (Protocol on 
Transitional Provisions).  
47 WTO document WT/REG/401/N/1, 3 February 2020.  
48 European Union -External Action, Fact Sheet EU -Kyrgyz Republic Enhanced Partnership and 
Cooperation Agreement , 2019. Viewed at: https://eeas.europa.eu/sites/default/files/epca_factsheet.pdf . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 34 - 
 
  Cooperation (CAREC), established in 1997, provides for project -based regional cooperation in the 
areas of trade, energy, and transport. It has 11 members49 and is supported by 6 multilateral 
institutions.50 CAREC's Integrated Trade Agenda 2030 aims to assist CAREC members with 
integrating further into the global economy and comprises three pillars: trade expansion from 
increased market access; greater divers ification; and stronger institutions for trade.51 CAREC  plays 
an important role  in the development of regional and inter -regional transport networks . The Kyrgyz 
Republic also participates in the United Nations Special Programme for the Economies of Central  
Asia (SPECA), launched in 1998, which aims to facilitate economic cooperation in the SPECA region 
and integration of the SPECA participating countries52 into the world economy, and to provide a 
platform for cross -border cooperation for the achievement of the Sustainable Development Goals.53  
2.4  Investment Regime and Policy  
The Kyrgyz Republic maintains an open investment regime, with very few formal entry or 
ownership restrictions and no formal screening mechanism.54 It has been observed that "[o]pening 
the country to FDI was an integral part of the liberalization reforms in the Kyrgyz Republic, and since 
the mid -1990s it has remained one of the most open countries to FDI in Central Asia and Eastern 
Europe".55 
The principal law of the Kyrgyz Republic relevant to foreign investment is the Law on 
Investments.56 It aims to develop a favourable investment climate and attract and stimulate 
domestic and foreign investment by providing a fair legal regime and guarantees of protection of 
investments. First, the Law set s out legal guarantees for foreign investors, including: national 
treatment and non -discrimination; the right of export or repatriation of investments, profits, 
property, and information; guarantees of protection with respect to expropriation of investment s 
and compensation of losses; freedom of currency transactions; free access to open information; 
investors' economic independence and recognition of their rights57; and rights under concession 
contracts. Second, the Law provides for the establishment of a state body to facilitate and attract 
investment.58 Third, it contains provisions on labour legislation, particularly employment of foreign 
workers by foreign investors. Finally, the Law contains provisions on the settlement of investment 
disputes, includin g the possibility of recourse to international arbitration.  
The Council on Business and Investments was established in 2010 to provide a unified state 
policy on attracting investments and improving the business and investment climate.59 The Council 
 
49 Afghanistan, Azerbaijan, China, G eorgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, 
Turkmenistan, and Uzbekistan.  
50 ADB, EBRD, IMF, World Bank, Islamic Development Bank, and United Nations Development 
Programme.   
51 ADB, CAREC Integrated Trade Agenda 2030 and Rolling Str ategic Action Plan 2018 -2020, 
February  2019. Viewed at: https://www.adb.org/documents/carec -trade-agenda -2030-action -plan-2018-2020. 
In addition to trade, tourism, and economic corridors, CAREC's current mandate covers economic and financial 
stability, infrastructure and economic connectivity, agriculture and water, and human development.  
52 Afghanistan, Azerbaijan, Kazakhstan, Kyrgyz  Republic, Tajikistan, Turkmenistan, and Uzbekistan. 
SPECA is supported by the United Nations Economic Commission for Europe (UNECE) and the United Nations 
Economic and Social Commission for Asia and the Pacific (ESCAP).  
53 UNECE and ESCAP, SPECA Terms of Reference , 2019. Viewed at: 
https://www.unece.org/fileadmin/DAM/SPECA/documents/gc/session14/V._SPECA_ToR_ENG_Final.pdf . 
54 Restrictions on FDI exist  in domestic and international transport and ownership of land. UNCTAD, 
Investment Policy Review: Kyrgyzstan , 2016, p.  6. Viewed at: 
https://unctad.org/en/PublicationsLibrary/di aepcb2015d3_en.pdf . 
55 ADB, Kyrgyz Republic: Improving Growth Potential , September 2019, p.  56. Viewed at:  
https://www.adb.org/sites/default/file s/publication/648501/kyrgyz -republic -growth -potential.pdf . 
56 Law No.  66 of 27 March 2003 on Investments, as amended. The Law on Investments was amended in 
2015 to define certain concepts, such as invested enterprise, and to provide more detailed rules on s o-called 
stabilization agreements under which foreign investors are entitled to choose the most favourable regime with 
respect to tax and non -tax conditions. Other laws, such as the Tax Code, various business laws, and the Free 
Economic Zones Law, may have  elements that provide security or other provisions to investors, but in and of 
themselves are not investment legislation.  
57 These rights include, for example, the right to choose freely the amount, composition, and structure 
of the capital of a newly cre ated legal entity; create subsidiaries, branches, and representative offices; 
participate in privatization operations; and protect intellectual property rights.  
58 A State Agency on Promotion of Investments and Export was created in 2016 and renamed the 
Investment Promotion and Protection Agency in 2017.  
59 Resolution No.  149 of 5 August 2010.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 35 - 
 
  is a c onsultative -deliberative body that provides a forum for dialogue between the State and the 
business sector. It is responsible for developing and preparing recommendations to the President, 
the Government, and other state agencies. The Council is chaired by  the Prime Minister, and its 
members include the Minister of Economy, two representatives from international development 
partners, and representatives from business associations.  
An UNCTAD report on the investment regime of the Kyrgyz Republic finds that "[a]lthough 
the regulatory framework for business is generally modern, institutional weaknesses and 
implementation challenges in a number of areas have a negative impact on investment 
attractiveness and are detrimental to the protection of public interests ".60 While the report makes 
several recommendations relating to regulation specific to foreign investment, most of its 
recommendations pertain to the general investment climate. The report makes specific proposals 
for changes in company operations and acce ss to land and real property, taxation, labour legislation, 
employment of non -residents, environment, trade facilitation, access to justice, and governance.61 
The UNCTAD report also identifies strategic priorities to diversify FDI attraction and promote 
sustainable development: (i)  foster investments in public infrastructure through small FDI projects 
and PPPs; (ii)  diversify economic activity by attracting FDI into selected industries such as garments 
and textiles, agro -industries, and tourism; and (iii)  enact policies for sustainable mining and linkage 
development.62  
The Development Program of the Kyrgyz Republic for the Period 2018 -2022 defines the 
promotion of export -oriented manufacturing as one of the key principles of investment policy. 
Specific init iatives to be pursued as part of this policy include, inter alia : (i) the improvement of the 
legal framework for the protection and promotion of investments; (ii)  the identification of priority 
sectors of state support; (iii)  directing investments to parti cular regions in accordance with their 
competitive advantages; (iv)  measures to improve the ranking of the Kyrgyz Republic on the World 
Bank's Doing Business Index, especially regarding the connection to the electricity grid, taxation, 
and enforcement of c ontracts; (v)  introduction of new fiscal and administrative incentives and 
simplification of inspection procedures and reporting requirements; (vi)  review and simplification of 
the procedures for PPP projects; (vii)  introduction of a single window mechanis m for investors; 
(viii) establishment of mechanisms for the creation of new investment funds; (ix)  measures to 
optimize the effective management of state assets; and (x)  review of the system for managing free 
economic zones.63  
Improvement of the investmen t climate is also a key objective of the National Development 
Strategy of the Kyrgyz Republic 2018 -2040. The Government aims to considerably improve the 
investment climate to make the country an attractive investment destination that has a competitive 
advantage in comparison with other countries of the region and the EAEU. It will actively use the 
GSP+ to increase exports to EU member States. The Government will make efforts to provide 
high-quality public administration and governance and create an efficien t institutional mechanism to 
support investors at the national and regional levels. A separate policy will be developed regarding 
investment in the extractive sector and the energy sector. Government agencies will identify key 
areas for investment in their  respective sectors of the economy, taking into account country priorities 
and opportunities provided by the Kyrgyz Republic's participation in the EAEU, the Shanghai 
Cooperation Organization, the Belt and Road initiative, and bilateral cooperation with co untries in 
Central Asia and elsewhere. The Government will support investment activity with the objective of 
creating new export -oriented and innovative sectors of the economy, which will ensure rapid growth 
of value added and exports. The most promising a reas include subsectors of light and processing 
industries, which use local raw materials and labour resources for the most part.64  
 
60 UNCTAD, Investment Policy Review: Kyrgyzstan , 2016,  p. 60. Viewed at: 
https://unctad.org/en/PublicationsLibrary/diaepcb2015d3_en.pdf . 
61 UNCTAD, Investment Policy Review: Kyrgyzstan , 2016,  pp. 9-25. Viewed at: 
https://unctad.org/en/PublicationsLibr ary/diaepcb2015d3_en.pdf . 
62 UNCTAD, Investment Policy Review: Kyrgyzstan , 2016,  pp. 28-49. Viewed at: 
https://unctad.org/en/PublicationsLibrary/diaepcb2015d3_en.pdf .  
63 Developm ent Program of the Kyrgyz Republic for the Period 2018 -2022, pp. 14-15. Viewed at:  
https://www.un -
page.org/files/public/the_dev elopment_program_of_the_kyrgyz_republic_for_the_period_2018 -2022.pdf . 
64 National Development Strategy of the Kyrgyz Republic 2018 -2040, pp. 32-33. Viewed at: 
http://donors.kg/en/strategy/5174 -national -development -strategy -of-the-kyrgyz -republic -for-2018-2040. WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 36 - 
 
  
The authorities point to data showing an increase in inflows of FDI from 2018 to 2019 and the 
improvement of its ranking in  the World Bank's Doing Business Report as evidence that the 
investment climate in the Kyrgyz Republic has become more attractive.65 
Since the previous Review, the Kyrgyz Republic concluded bilateral investment agreements 
with Austria (2016), Kuwait (2015) , Qatar (2014), and the United Arab Emirates (2014). The 
bilateral investment agreement with Indonesia from July 1995 was terminated on 18 February 2018, 
and a bilateral investment agreement was concluded with India in June 2019, replacing an 
agreement con cluded in 1997.  
Table 2.1 lists all bilateral investment agreements concluded by the Kyrgyz Republic with third 
countries as at 30 June 2020.  
Table 2.1 Bilateral investment agreements  
Agreement  Date of signature  Date of entry into force  
Armenia  4 July 1994  26 November 1995  
Austria  22 April 2016  Not yet in force  
Azerbaijan  23 April 1997  27 August 1997  
Belarus  30 March 1999  11 November 2001  
China  14 May 1992  9 September 1995  
Finland  3 April 2003  8 December 2004  
France  2 June 1994  10 August 1997  
Georgia  22 April 1997  28 October  1997 
Germany  28 August 1997  16 April 2006  
India 14 June 2019  Not yet in force  
India 16 May 1997  12 May 2000 
Indonesia  18 July 1995  23 April 1997 (terminated on 
18 February 2018)  
Iran, Islamic Republic of  31 July 1996  27 July 2005  
Kazakhstan  8 April 1997  .. 
Korea, Republic of  19 November 2007  8 July 2008 
Kuwait  12 December 2015  Not yet in force  
Latvia  22 May 2008  Not yet in force  
Lithuania  15 May 2008  Not yet in force  
Malaysia  20 July 1995  Not yet in force  
Moldova, Republic of  7 November 2002  16 November 2004  
Mongolia  4 December 1999  Not yet in force  
Pakistan  26 August 1995  Not yet in force 
Qatar  8 December 2014  Not yet in force  
Sweden  8 March 2002  1 April 2003  
Switzerland  29 January 1999  17 April 2003  
Tajikistan  19 January 2000  7 December 2001  
Turkey  9 April 2018  Not yet in force  
Turkey  28 April 1992  31 October 1996  
Ukraine  23 February 1993  Not yet in force  
United Arab Emirates  7 December 2014  5 January 2016  
United Kingdom  8 December 1994  18 June 1998  
 
65 The Kyrgyz Republic ranks 80th out of 190 countries in the World Bank's Doing Business 2020 Report 
and is one of the 20 countries who se ranking has improved significantly. This reflects progress made regarding 
the reliability of the supply of electricity, access to credit information, and ease of payment of taxes. World 
Bank, Doing Business 2020: Kyrgyz Republic . Viewed at: 
https://www.doingbusiness.org/content/dam/doingBusiness/country/k/kyrgyz -republic/KGZ.pdf . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 37 - 
 
  Agreement  Date of signature  Date of entry into force  
United States  19 January 1993  12 December 1994  
Uzbekistan  24 December 1996  6 February 1997  
.. Not available.  
Source:  Information provided by the authorities; and UNCTAD international investment agreements 
navigator.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 38 - 
 
  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
Pursuant to the Kyrgyz Republic joining the Treaty on the Eurasian Economic Union 
(EAEU  Treaty) of 29 May 2014, most of its customs legal framework changed, and many more 
processes and procedures were harmonized at the level of the customs uni on.1 For example, most 
of its domestic legislation on customs became obsolete, except for Law No.  52 of 24  April 2019 on 
Customs Regulation, and was overtaken by the EAEU Customs Code. Various other decisions, 
treaties, and regulations of the EAEU and a n umber of national laws and regulations form the rest 
of the legal framework (Table 3.1 and Box 3.1). EAEU member States are allowed to have national 
legislation on customs as long as it does not conflict with the rules of the EAEU.  
One of the principal de velopments was the entry into force of the new EAEU Customs Code on 
1 January 2018. It was designed to take into account the latest agreements and developments in 
the WTO, principally the Trade Facilitation Agreement, improve the quality of customs 
adminis tration, and also enable the move from paper to electronic platforms and processes. 
According to the authorities, it does not create any significant new conditions of customs regulation 
but rather helps innovate and modernize customs.  
Article  28 of the EAE U Treaty provides for the free movement of goods among the members of 
the EAEU, and thus there are no customs duties, other duties or charges, non -tariff measures, special 
safeguards, or anti -dumping and countervailing measures, except as may otherwise be provided in 
the EAEU Treaty. However, indirect taxes, i.e. excise tax and value added tax (VAT), are still to be 
paid on imports and are regulated by national legislation (Tax Code of the Kyrgyz Republic) 
(Section  3.1.4).  
The Treaty on the Accession of th e Kyrgyz Republic to the Treaty on the Eurasian Economic 
Union (Accession Treaty) of 29 May 2014 also contains other provisions on customs matters. In 
particular, Article  6 addresses internal customs control measures and paragraph 1 of Article  25 of 
the EA EU Treaty addresses the free movement of goods between the territories of member States 
without the need for a customs declaration. As the Kyrgyz Republic has a land border with only one 
other EAEU member State, Kazakhstan, Article  6 is specific to the Kyr gyz-Kazakh state border. In 
essence, Article  6 prescribes that customs control between the two  States will be abolished after 
Eurasian Economic Commission  (ECC) Council Decision No.  5 of 8 May 2015, which was contingent 
upon a number of measures being unde rtaken, such as equipping airports with certain equipment, 
organizing an exchange of information between tax authorities, organizing an exchange of 
information in electronic form among customs authorities, controlling and confirming the export of 
goods, co ntrolling the temporary importation of transport vehicles, controlling goods in transit, and 
organizing an exchange of information for the implementation of analytical and control functions. 
According to the authorities, per the Decision, customs control o n the Kyrgyz -Kazakh section of the 
state border was cancelled.  
Article  8 of the Accession Treaty provides for the sharing of import customs duties collected 
among the members of the EAEU.2 As one of the smallest trading economies in the EAEU, the Kyrgyz 
Republic also receives one of the lowest percentages, 1.9%, while the others are allocated as follows: 
Russian Federation (85.265%), Kazakhstan (7.055%), Belarus (4.560%), and Armenia (1.220%).3 
 
1 EEC, EAEU Treaty. Viewed at : https://docs.eaeunion.org/Pages/DisplayDocument.aspx?s=bef9c798 -
3978-42f3-9ef2-d0fb3d5 3b75f&w=632c7868 -4ee2-4b21-bc64-1995328e6ef3&l=540294ae -c3c9-4511-9bf8-
aaf5d6e0d169&EntityID=3610 . For a detailed analysis of the provisions of the EAEU Treaty and the Accession 
Treaty, see also WTO documents WT/REG358/1, 13 July 2018 and WT/REG366/1, 29 A ugust 2018.  
2 Including other duties, taxes, and charges having equivalent effect, i.e. import, export, anti -dumping, 
and countervailing duties.  
3 Protocol on the Application of Separate Provisions of the Agreement on Accession of the 
Kyrgyz  Republic to the Treaty on the Eurasian Economic Union of 29 May 2014, signed on 23 December 2014.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 39 - 
 
  Table 3.1 Main national legislation related to customs, 2020  
Reference  Date  Overview  
Law No.  41 on State Regulation of Foreign Trade 
Activity  2 July 1997  Main law on foreign trade  
Law No.  52 on Customs Regulation   24 April 2019  Main law on customs 
implementing the EAEU 
Customs Code  
Law No.  177 on Amendments and Additions to the Law 
on Free Economic Zones of the Kyrgyz Republic  30 December 2014  Law on free economic 
zones  
Law No.  87 on Amendments and Additions to the Law 
on Comba ting the Financing of Terrorism and 
Legalization (Laundering) of Proceeds from Crime  6 August 2018  To counteract terrorism 
and money laundering  
Law No.  170 on Amendments and Additions to Some 
Legislative Acts of the Kyrgyz Republic   29 December 2014  Amend ments and 
additions to various other 
legal acts  
Government Resolution No.  564 on Measures to 
Implement the Requirements of Articles 95, 101, 102, 
105, 128, 135, 153, 157, 158, 163, 176, 180, 213, 
229, and 232 of the Law on Customs Regulation  10 August 201 5 Amending certain articles 
of the Customs Act  
Government Resolution No.  79 on Certain Issues in 
the Field of Customs Regulation  13 February 2020  Implementing the 
provisions of Law No.  52 
on Customs Regulation  
Government Resolution No.  563 on Measures to 
Implement the Requirements of the Law on Customs 
Regulation  6 August 2015   
Government Resolution No.  536 on Certain Issues of 
Activity of Authorized Economic Operators in the Field 
of Customs  27 July 2015  Rules  for AEOs  
Source:  Information provided by the authorities; and Ministry of Justice, Central Database of Legal Acts of 
the Kyrgyz Republic . Viewed at:  http://cbd.minjust.gov.kg .  
Box 3.1 Customs -related treaties adhered to as a result of accession to the EAEU  
Treaty on the Requirements for the Exchange of Information between the Customs Authorities and other 
State Authorities of the Customs Union Member States from 21 May 2010  
Treaty on the Bases, Conditions, and Procedure of Changing the Terms of Payment of Customs Duties from 
21 May 2010  
Treaty on the Specifics of Customs Transit of Goods transferred by Railway Transport in the Customs 
Territory of the Customs Union from 21 May 2010  
Treaty on the Procedure of Transfer of Goods for Personal Use across the Customs Border of the Customs 
Union by Individuals and on Performance of the Customs Operations related to the Release thereof from 
18 June 2010  
Treaty on Free Customs Area Warehouses  and Customs Procedure of Free Customs Area Warehouses from 
18 June 2010  
Treaty on Relief from Application of Certain Forms of Customs Control by the Customs Authorities of the 
Customs Union Member States from 18 June 2010  
Treaty on the Specifics of Use of International Carriage Transport Vehicles, Transporting Passengers as well 
as Trucks, Semitrailers, Containers and Railway Rolling Stocks  transferring Cargo and/or Luggage for 
Internal Carriage within the Customs Territo ry of the Customs Union from 18 June 2010  
Treaty on the Specifics of Customs Operations with respect to the Goods sent via International Postal 
Delivery from 18 June 2010  
Treaty on the Issues of Free Economic Zones in the Customs Territory of the Customs  Union and Customs 
Procedure of a Free Customs Zone from 18 June 2010  
Treaty on the Procedure of Transfer of Cash and/or Cash Instruments by Individuals across the Customs 
Border of the Customs Union from 5 July 2010  
Treaty on the Specifics of Criminal a nd Administrative Liability for Violations (Infringement) of the Customs 
Laws of the Customs Union and Customs Laws of the Customs Union Member States from 5 July 2010  
Treaty on Legal Support and Co -operation of the Customs Authorities of the Customs Unio n Member States 
on Criminal Proceedings and Proceedings on Administrative Offences from 5 July 2010  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 40 - 
 
  Treaty on Cooperation and Mutual Assistance within the Eurasian Economic Community Framework in 
Customs Issues Involving the Activities of the Customs Union Member States Customs Services 
Representative Offices from 22 June 2011  
Treaty on the Organization of Exchange of Information for the Implementation of Analytical and Control 
Functions of the Customs Authorities of the Member States of the C ustom Union from 19 October 2011  
Treaty on Counteraction to Legalization (Laundering) of the Income Received by Criminals, and Financing of 
Terrorism when Moving Cash and/or Cash Tools through the Customs Border of the Customs Union from 19 
December 2011  
Source:  Accession Treaty.  
The Customs Service is guided by its most recent Strategy for the Development of the Customs 
Service of the Kyrgyz Republic 2019 -2023, and its associated Action Plan, as approved by 
Government Resolution No.  363 of 22 July 2019.4 The Strategy highlights the important 
developments and challenges of joining the customs union. As part of the "road map" for the Kyrgyz 
accession to the EAEU, there have been different phases of technical assistance activity by the 
Russian Federation t o equip and modernize the border posts with the technical requirements 
necessary for the EAEU. At the same time, there was acknowledgement of certain challenges, such 
as incorrect declarations, slow movement in clearing customs, and concerns over corruptio n. One of 
the key objectives was to provide for the automation of all customs processes. In order to achieve 
its goal, the Strategy identifies seven main areas for improvement: (i)  automate and apply modern 
digital technologies; (ii)  improve the efficiency  of the customs process, including transit capacity 
development; (iii)  develop customs infrastructure; (iv)  improve effectiveness of enforcement; 
(v) fight against corruption; (vi)  improve the management system; and (vii)  increase motivation 
and incentives . 
The EAEU Customs Code, EEC Board Decisions, and national digitalization programmes also 
expedite the move to electronic systems for customs. The Government developed a plan to 
modernize the common information system of the state customs committee for 201 9-21, which 
includes: integration of information systems of state authorities through the electronic 
interoperability system  (EIS)  Tunduk  system with the customs authorities of the EAEU member 
States, electronic declaration and automatic release of goods, conformity of customs documents 
(structure, format, classifiers), and finalization of the portal for preliminary information on goods 
and vehicles.   
Since 2013, the Kyrgyz Republic has embarked on its single window application, known as the 
Single Window f or Foreign Trade Information System (SWIS) or the Tulpar System.5 The features of 
the SWIS allow the importer to submit an application for obtaining permits and other documents in 
electronic format, as well as to provide the customs authorities with acces s to already issued 
documents necessary for customs clearance in electronic format. The SWIS then generates 
electronic permits and creates a folder for customs clearance. In 2019, more than 40,000 permits 
were issued through the SWIS. Currently, the SWIS i s being modernized, taking into account 
national and international requirements, as well as the requirements of the EAEU. At this time, the 
EAEU member States have different single window applications, but work is underway to ensure 
interoperability among them. In July 2019, the process of a complete modernization of the website 
began in accordance with the recommendations of the World Wide Web Consortium.  
The import procedure begins with the sending of preliminary information, pursuant to 
Article  12 of La w No.  52 of 24  April 2019 on Customs Regulation. The purpose of providing 
preliminary information is for customs authorities to obtain information on goods planned to be 
moved across the customs border, and to assess risks and make preliminary decisions on  the 
selection of transactions , and types of measures to ensure customs control before the goods arrive 
in the customs territory. Preliminary information is used by authorities to speed up operations and 
optimize customs control. Thereafter, goods and vehi cles may cross the border, and a customs 
declaration must be made. This puts the process under customs control, where the respective rules 
are applied and calculation of duties is imposed. Upon completion of the process, goods may be 
 
4 Ministry of Justice, Strategy for the Development of the Cus toms Service of the Kyrgyz Republic for 
2019-2023, Government Resolution No.  363 of 22 July 2019, Annex 1. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/157006?cl=ky -kg.  
5 Single Window for Foreign Trade Information System, Tulpar System. Viewed at: 
http://swis.trade.kg/ .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 41 - 
 
  released. In February 2020, the Kyrgyz Republic passed a resolution that changed the rules for 
imports of goods from the EAEU.6 A series of instructions, rules, and regulations followed for 
implementing the requirements of the EAEU Customs Code, in which, according to the EAEU  Treaty, 
the movement of goods between the territories of EAEU member States is carried out without the 
use of a customs declaration.  
Trade, and the customs revenue it generates, continues to be an important source of income. 
Since 2013, there has been a s teady increase in tax revenues generated from trade (Table 3.2). VAT 
collections on imports remained relatively stable, while excise duties on imports declined during the 
review period due to a decrease in the volume of imports of excisable goods and also due to the 
impact of joining the EAEU. Since the entry into force of the EAEU Treaty, the administration of 
indirect taxes paid when goods are imported from EAEU member States to the Kyrgyz Republic is 
now exercised by the tax authorities. However, the Cus toms Service remains one of the most 
important sources of tax for revenue collection, accounting for about 25% -30% of total government 
revenues.  
Table 3.2 Revenues collected at the border, 2013 -19 
(KGS million)  
 2013  2014  2015  2016  2017  2018  2019  
Total tax revenue at the 
border  36,958.4  42,586.1  32,031.4  29,338.2  34,179.7  41,671.8  43,296.2  
Total net fees of the EAEU  .. .. 28,509.4  16,243.5  18,821.2  25,502.1  26,189.3  
1. VAT on imports  22,048.9  23,879.6  4,735.2  12,060.6  15,142.5  17,933.4  17,957.4  
2. Excise duty on imports  .. .. 3,492.9  7,078.9  7,485.6  8,144.1  8,204.5  
3. Taxes on international 
trade and foreign 
transactions  11,886.2  13,771.1  9,684.3  13,809.3  16,492.9  18,319.2  21,967.7  
 of which:         
 Customs payment at 
the uniform rate of 
customs duties  8,403.8  9,549.0  1,929.3  242.4  567.0  1,483.6  4,237.2  
 Import customs duty  2,636.4  3,070.1  3,553.8  -6.2 6.5 11.8 7.9 
 Entry fees from foreign 
road carriers  11.2 7.0 6.4 7.5 7.8 7.1 5.1 
 Export customs duty  .. .. 1.9 6.7 18.8 19.1 3.0 
 Special duty  0.1 248.2  43.9 .. .. 0.0 0.0 
 Total customs payment  .. 0.1 1.1 3.5 -3.1 0.1 0.0 
 Charges for customs 
clearance  834.8  896.7  626.0  460.8  537.5  627.8  607.7  
 Import duty from the 
EAEU  .. .. 3,522.0  13,094.7  15,358.5  16,169.7  17,106.9  
.. Not available.  
Source:  Information provided by the authorities.  
Pursuant to an initiative of the customs union, the EAEU laid the legal basis for the 
implementation of projects on marking and physical tracking of goods. Since 2016, the EAEU has 
conducted a test for marking fur products with RFID tags, i.e. the Agreement on the Implementation 
in 2015 -2016 of a Pilot Project on the Introduct ion of Marking Goods with Control (Identification) 
Marks for Fur Products. On 2 February 2018, an agreement on the marking of goods with 
identification means in the EAEU was agreed, which entered into force on 29 March 2019. Since the 
Agreement's entry int o force, the marking of fur products has become mandatory in the territory of 
the EAEU member States.7 The main objectives of the Agreement are to ensure the legitimacy of 
the trade turnover, protect consumers, reduce the shadow economy, increase tax reve nues, and 
equalize competitive conditions for doing business within the EAEU. Its provisions regulate the terms 
and procedures for introducing marking, establish uniform requirements for identification means and 
their application to goods, and establish th e format, composition, and structure of information 
transmitted on marked goods among the EAEU member States.  
 
6 State Tax Service, Law No.  79 of 13 February 2020.  
7 HS 4303109010, 4303109020, 4303109030, 4303109040, 4303109050, 43 03109060, and 
4303109090. EEC Customs Union, List of Products Subject to Mandatory Marking . Viewed at: 
https://portal.eaeunion.org/sites/odata/_layouts/15/Portal.EEC.Process73/DirectoryForm.aspx?ListId=0e3ead0
6-5475-466a-a340-6f69c01b5687&ItemId=244# .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 42 - 
 
  
Work remains ongoing at the level of the EAEU, and recent decisions by the EEC Council 
created new marking requirements that also apply to other p roducts, whose circulation is prohibited 
after a certain date if unmarked, as follows:  
• footwear – 1 March 2020;  
• cameras – 1 October 2020;  
• perfume and eau de toilette – 1 October 2020;  
• tyres – 1 December 2020; and  
• certain items of light industry – 1 January  2021.  
As at November 2020, the EEC was discussing a proposal for the introduction of marking of 
dairy products and considering the proposal of the Kyrgyz Republic for marking alcohol and tobacco 
products.  
Thus, the Kyrgyz Republic is required to impose ma rking rules on certain products pursuant 
to the EAEU rules. Government Resolution No.  554 of 17 October 2019 on the Procedure for Marking 
Certain Goods with Digital Identification in the Kyrgyz Republic introduces the marking of goods in 
the Kyrgyz Republi c and specifies the procedures for doing so. The Annex to the Resolution provides 
the list of goods subject to marking, which includes alcohol products and cigarettes from 
1 July 2020.8  
The EAEU Customs Code also has provisions for advance rulings, princ ipally in Article  359. It 
establishes that the customs authorities of the EAEU member States make preliminary decisions on 
the basis of their legislation. It specifically provides for advance rulings on the classification of goods, 
the origin of goods, and  for customs valuation (see also Sections 3.1.1.3 and 3.1.2). The national 
legislation of the Kyrgyz Republic on advance rulings is contained in Government Resolution 
No. 79 of 13 February 2020 on Certain Issues in the Field of Customs Regulation (Annex 17 ) and 
pertains to the classification of goods. The Customs Code also provides for the sharing of information 
on advance rulings among the customs authorities of the EAEU member States (Annex  2). 
Additionally, it has specific rules for customs brokers, auth orized economic operators, and customs 
warehouses; these were further expanded upon by the Kyrgyz Republic in the same Resolution.9 
Provisions also exist for the submission of pre -arrival import documentation. In accordance 
with Article  11 of the EAEU Cus toms Code, the purpose of providing preliminary information is to 
ensure that the customs authorities receive information on the goods planned to be moved across 
the customs border of the EAEU in order to assess the risks and make preliminary decisions wit h 
regard to the choice of customs control before the goods enter the customs territory. The content, 
structure, and format of preliminary information to be presented to the customs authorities are 
determined by the EAEU Commission , depending on the means o f transport used and the purpose 
for which such preliminary information is used by the customs authority.  
As at 1 July 2019, several EEC Board Decisions came into force that determine the procedures 
for submitting preliminary information for goods imported  into the EAEU customs territory by road, 
air, and rail.10 Preliminary information on the import of goods into the customs territory of the EAEU 
 
8 Ministry of Justice, Government Resolution No.  554 of 17 October 2019 on the Procedure for Mar king 
Certain Goods with Digital Identification in the Kyrgyz Republic. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/157198  and http://cbd.minjust.gov.kg/act/view/ky -kg/157199 . List 
of products subject to marking: alcohol products of HS 2204, 2205, 2206, 2207, and 2208; and cigarettes of 
HS 2402.  
9 Ministry of Justice, Government Resolution No.  79 of 13 February 2020 on Certa in Issues in the Field 
of Customs Regulation. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/157558 .  
10 EEC Board Decisions No.  51 of 10 April 2018 on Approval of the Procedure for Submit ting Preliminary 
Information on Goods Intended for Import into the Customs Territory of the Eurasian Economic Union by Water 
Transport; No.  56 of 17 April 2018 on Approval of the Procedure for Submitting Preliminary Information on 
Goods Intended to Be Impo rted into the Customs Territory of the Eurasian Economic Union by Road Transport; 
No. 57 of 17 April 2018 on Approval of the Procedure for Submitting Preliminary Information on Goods 
Intended for Import into the Customs Territory of the Eurasian Economic U nion by Rail Transport; and No.  62 WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 43 - 
 
  through the checkpoints of the Kyrgyz Republic can be submitted through the State Customs 
Service.11 Upon the arrival of goods at the checkpoint, the person moving the goods must notify the 
customs authority of their arrival by submitting documents and information provided for in 
Article  89 of the EAEU Customs Code. Based on the results of the pre -arriva l information, the carrier 
or other persons specified are required to perform a customs operation, i.e. place the goods in 
temporary storage, declare them, transport them to temporary storage, place them under a free 
customs zone procedure, or export them,  within three hours of the time of notification of arrival. 
Considering that there are no places at the automobile checkpoints of the Kyrgyz Republic intended 
for temporary storage and customs declaration, vehicles with goods are sent to the place of custo ms 
clearance by placing them under the customs transit procedure. Another development was the 
Custom Code's introduction of expedited shipment provisions for goods transported by any type of 
high-speed transport using an electronic information system for o rganizing and tracking goods to 
deliver them in the minimum possible period of time. In addition to Article  81 of the Code, the EAEU 
took three decisions simplifying the import declaration and providing for express treatment of 
expedited shipments.12 
As concerns intellectual property rights and enforcement at the border, the Kyrgyz Republic 
changed parts of its customs code in April 2019 in order to modify its rules on intellectual property 
for customs.13 The modified provisions allow for the suspension o f the release of goods for those 
containing intellectual property not included in the unified customs register or the national customs 
register for objects of intellectual property. Goods included in the registers are protected for 
two years. Intellectual property rights holders pay a fee of KGS 1,330 to have their product included 
in the registers and KGS 410 for an extension of its validity.14 As at April 2020, the national customs 
registrar contained about 300 -400 protected entities.15 
The "simplified im port procedures" continue to be applied pursuant to paragraphs 1 and 2 of 
Article  266 of the EAEU Customs Code on goods for personal use.  Customs duties and taxes are 
chargeable at unified rates based on the category of goods, cost, weight, qualitative sta ndards, and 
mode of importation. In cases where the value, weight, or quantity exceeds the duty -free amount, 
and also for vehicles, customs duties and taxes are subject to payment at flat rates or in the form 
of an aggregate customs payment as designated i n Annex 2 to EEC Council Decision No.  107 of 
20 December 2017.  
3.1.1.1   Free (special) economic zones  
The Kyrgyz Republic continues to have five free economic zones (FEZs): FEZ Bishkek, FEZ 
Maimak, FEZ Naryn, FEZ Leilek, and FEZ Karakol. Business activities such as  production of light 
industrial goods, food products, consumer goods, construction materials, services (e.g. legal, 
transportation and air cargo services, and insurance) may be carried out on the territory of a FEZ. 
The advantages offered by establishing i n an FEZ are special customs and tax privileges for exporting 
and importing companies. More specifically, companies may import, store, produce, or sell goods in 
the FEZ without paying taxes or customs duties.16 However, in the case of exportation of goods to 
the territory of the Kyrgyz Republic, the goods shall be subject to taxation in accordance with the 
 
of 24 April 2018 on Approval of the Procedure for Submitting Preliminary Information on Goods Intended for 
Import into the Customs Territory of the Eurasian Economic Union by Air Transport.  
11 State Customs Service. Viewed  at: www.customs.kg .  
12 EEC Board Decisions No.  142 of 28 August 2018; No.  158 of 16 October 2018; and No.  185 of 
20 November 2018.  
13 State Customs Service, Law No.  52 of 24 April 2019 on Customs Regulation. Viewed at: 
http://www.customs.kg/%D0%97%D0%90%D0%9A%D0%9E%D0%9D%20%D0%9A%D0%A0%20%D0%9E
%20%D1%82%D0%B0%D0%BC%D0%BE%D0%B6%D0%B5%D0%BD%D0%BD%D0%BE%D0%BC%20%D1
%80%D0%B5%D0%B3%D1%83%D0%BB%D0%B8%D1%80% D0%BE%D0%B2%D0%B0%D0%BD%D0%B8
%D0%B8.pdf .  
14 Government Decree No.  254 of 23 April 2015. As at July 2020, it was undergoing revision.  
15 State Customs Service, Customs Registrar of Objects of Intellectual Property . Viewed at: 
http://www.customs.kg/%D0%A2%D0%B0%D0%BC%D0%BE%D0%B6%D0%B5%D0%BD%D0%BD%D1%8
B%D0%B9%20%D1%80%D0%B5%D0%B5%D1%81%D1%82%D1%80%20%D0%BE%D0%B1%D1%8A%D
0%B5%D 0%BA%D1%82%D0%BE%D0%B2%20%D0%B8%D0%BD%D1%82%D0%B5%D0%BB%D0%BB%D
0%B5%D0%BA%D1%82%D1%83%D0%B0%D0%BB%D1%8C%D0%BD%D0%BE%D0%B9%20%D1%81%D
0%BE%D0%B1%D1%81%D1%82%D0%B2%D0%B5%D0%BD%D0%BD%D0%BE%D1%81%D1%82%D0%B
8%20%D0%93%D0%A2%D0%A1.pdf .  
16 Regulation on the Requir ements for Arrangement of Territory of the FEZ was approved by 
Government Order No.  332 of 16 June 2014.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 44 - 
 
  common tax regime. Customs authorities of the Kyrgyz Republic and the general directorate of the 
FEZ carry out, within their competence, the control and recording of operations of goods produced 
in FEZs.  
In the territory of the FEZ, the customs procedure of the free customs zone is in accordance 
with Article  201 of the EAEU Customs Code. Thus, it is the customs procedure applied to the foreign 
goods and Un ion goods, under which the said goods are placed or used in the territory of the FEZ, 
without paying customs duties; taxes; and safeguard, anti -dumping, and countervailing duties, 
provided that the terms and conditions of placement of the goods under this customs procedure are 
complied with and that the goods are used in accordance with this procedure.  
According to the general register of companies of FEZs of the EAEU member States, 
398 entities were registered in the Kyrgyz Republic's FEZs, the vast majori ty operating from FEZ 
Bishkek. The registered entities included all types of enterprises, e.g. wholesale and trade, 
manufacturing, construction, consulting, sales, and services.17  
3.1.1.2   Trade facilitation  
The Kyrgyz Republic was supportive of the WTO Trade Faci litation negotiations and showed 
particular interest in technical assistance and transit issues as demonstrated by its proposals or joint 
submissions during the negotiating phase.18 It ratified the Protocol and notified its acceptance of 
ratification to th e WTO on 6 December 2016.19 In 2014, Category A commitments were notified 
(11 provisions); and in September 2018, Category B and C commitments (10 and 30 provisions, 
respectively) (Table 3.3).20 According to the notifications, most commitments were expecte d to be 
implemented by the end of 2020.  
According to the authorities, the Kyrgyz Republic is actively working on implementation of the 
provisions of the Trade Facilitation Agreement (TFA). In 2017, the Government established the 
Council for Trade Facilita tion, which  includes representatives of government agencies and the 
business community, on a parity basis .21 The Council is an interdepartmental consultative and 
advisory body whose activities are aimed at coordinating the activities of state bodies to sim plify 
foreign trade procedures, and is also a platform for dialogue between participants in foreign 
economic activity. The initial plan for the implementation of the TFA (for 2018 -22) was approved by 
the Council in December 2017, and then priorities were d etermined during the implementation 
process and the Plan was revised accordingly. The implementation period of the revised plan is now 
2020-23. Six working groups were established, each of which is currently implementing certain parts 
of the Plan .22 As par t of the process of implementing the Plan, a time release study was conducted, 
providing the average time of import, export, and transit of goods; the study was published on the 
website of the State Customs Service.  
According to a survey on trade facilitat ion as presented by the Central Asia Regional Economic 
Cooperation (CAREC) Program in 2017 on the overall implementation rate of trade facilitation and 
paperless trade measures, the Kyrgyz Republic ranked low compared with other CAREC states, with 
 
17 EAEU, General Register of Residents (Participants, Entities) of Free (Special) Economic Zones of the 
EAEU Member States . Viewed at: 
https://portal.eaeunion.org/sites/odata/_layouts/15/Portal.EEC.Registry.Ui/DirectoryForm.aspx?ViewId=76b62
f0b-9d1b-4554-a5d8-64b98ce84820&ListId=0e3ead06 -5475-466a-a340-
6f69c01b5687&ItemId=224#mixed=1&paginginfo=Paged%3DTRUE%26PagedPrev %3DTRUE%26p_ID%3D133
37&pagenumber=6 .  
18 WTO documents TN/TF/W/74, 10 November 2005; TN/TF/W/79, 15 February 2006; TN/TF/W/113, 
6 June 2006; TN/TF/W/133, 10 July 2006; and TN/TF/W/137, 21 July 2006, including revisions and addenda.  
19 WTO Trade Facilitation Agreement Facility, Ratifications List . Viewed at: 
https://www.tfafacility.org/ratifications ; and Ministry of Justice, Law No.  183 of 22 November 2016. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/111462 .  
20 WTO documents WT/PCTF/N/KGZ/1, 11 August 2014 and G/TFA/N/KGZ/2/Add.1, 30 August 2019.  
21 Government Order No.  639 of 25 September 2017.  
22 Ministry of Economy, Implementation P lan of the Kyrgyz Republic . Viewed at: 
http://mineconom.gov.kg/ru/direct/242/248 ; and information provided by the authorities. The Plan was put in 
place by State Customs Service Order No.  35-4/278 o n the Implementation of the WTO Agreement on Trade 
Facilitation and Other Measures to Simplify Trade and Transport Procedures for 2018 -2022.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 45 - 
 
  about a 38% implementation rate.23 More recently, the Kyrgyz Republic has been working with 
EAEU  partners on a draft agreement for a unified transit system of the EAEU and met with the 
Transport Security Association on simplifying transit procedures for cargo carr iers.   
At the meeting of the EEC Council on 21 July 2020, the EEC Board, together with the member 
States, was instructed to develop a draft international agreement on the use of navigation seals for 
the transportation of goods across the territories of tw o or more EAEU member States. Currently, 
work is underway on a draft framework international agreement on the unified system of transit of 
goods of the EAEU, developed by the United Board of the Customs Services of the EAEU, which will 
use navigation seals  for goods moved through the territory of the EAEU.  
Table 3.3 Implementation of the TFA  
Category A  Category B  Category C  
Arti
-cle Description  Arti-
cle Description  Date  Article  Description  Date  
1.4 Notification  1.1 Publication  31 December 2020 1.2 Information 
available 
through 
Internet  31 December 2022 
     1.3 Enquiry points  31 December 2020 
2.1 Opportunity to 
comment on 
information 
before entry 
into force        
2.2 Consultations        
     3 Advance 
rulings  31 December 2021 
4 Procedures for 
appeal or 
review        
5.1 Notification for 
enhanced 
controls or 
inspections     5.3 Test 
procedures  31 December 2023 
5.2 Detention        
6.2 Specific 
disciplines on 
fees and 
charges for 
customs 
processing 
imposed on or 
in connection 
with 
importation 
and 
exportation     6.1 General 
disciplines on 
fees and 
charges 
imposed on or 
in connection 
with 
importation 
and 
exportation  31 December 2020 
6.3 Penalty 
disciplines        
  7.2 Electronic 
payment  31 December 2020 7.1 Pre-arrival 
processing  31 December 2020 
  7.9 Perishable 
goods  31 December 2020 7.3 Separation of 
release from 
final 
determination 
of customs 
duties, taxes, 
fees, and 
charges  31 December 2020 
     7.4 Risk 
management  31 December 2023 
     7.5 Post-clearance 
audit 31 December 2023 
     7.6 Establishment 
and 
publication of 
average 
release times  31 December 2021 
 
23 CAREC Program, Trade Facilitation and Paperless Trade Implementation in CAREC Countries, Results 
of the UN Globa l Survey 2017 . Viewed at: https://www.carecprogram.org/uploads/2018 -ESCAP -paperless -
trade.pdf .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 46 - 
 
  Category A  Category B  Category C  
Arti
-cle Description  Arti-
cle Description  Date  Article  Description  Date  
     7.7 Trade 
facilitation 
measures for 
authorized 
operators  31 December 2021 
     7.8 Expedited 
shipments  31 December 2020 
     8.1 Border agency 
cooperation  31 December 2023 
     8.2 Border agency 
cooperation  31 December 2022 
9 Movement of 
goods 
intended for 
import under 
customs 
control        
10.5 Pre-shipment 
inspection  10.6 Use of 
customs 
brokers  31 December 2023 10.1 Formalities 
and 
documentation 
requirements  31 December 2022 
  10.8 Rejected 
goods  31 December 2020 10.2 Acceptance of 
copies  31 December 2022 
     10.3 Use of 
international 
standards  31 December 2022 
     10.4 Single window  31 December 2022 
     10.7 Common 
border 
procedures 
and uniform 
documentation 
requirements  31 December 2023 
     10.9 Temporary 
admission of 
goods and 
inward and 
outward 
processing  31 December 2021 
11.1
-
11.4 Freedom of 
transit  11.15  Freedom of 
transit  31 December 2020 11.5-
11.14  Freedom of 
transit  31 December 2020 
     11.16 -
11.17  Freedom of 
transit  31 December 2020 
  12.1 Measures 
promoting 
compliance 
and 
cooperation  31 December 2020    
     12.2 Exchange of 
information  31 December 2020 
     12.3 Verification  31 December 2023 
     12.4 Request  31 December 2020 
     12.5 Protection and 
confidentiality  31 December 2020 
     12.6 Provision of 
information  31 December 2020 
     12.7 Postponement 
or refusal of a 
request  31 December 2020 
  12.8 Reciprocity  31 December 2020    
  12.9 Administra -
tive burden  31 December 2020    
  12.10  Limitations  31 December 2020    
     12.11  Unauthorized 
use or 
disclosure  31 December 2022 
     12.12  Bilateral and 
regional 
agreements  31 December 2020 
Source:  WTO documents WT/PCTF/N/KGZ/1 and G/TFA/N/KGZ/2/Add.1, 30 August 2019.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 47 - 
 
  
As part of CAREC, the Kyrgyz Republic participates with 10 other countries24 and development 
partners on a range of economic and development programmes, including the Corridor Performance 
Measurement and Monitoring (CPMM) mechanism and its evaluation of a set of trade facilitation 
indicators (TFIs). The TFIs provide an overall ann ual performance and efficiency measurement of 
CAREC corridor borders, both rail and road, that allow comparison and assessment of trade 
facilitation and transport initiatives in the region. According to the CAREC CPMM 2019 Annual Report, 
the Kyrgyz Republi c's accession to the EAEU is credited for improving the border -crossing 
procedures, but concerns remain over new procedures instituted at the Kyrgyz -Kazakh border and 
the closure of a Tajikistan border crossing at Karamyk to third -country transit traffic.25 
According to the five TFIs, the Kyrgyz Republic gradually made progress in reducing time and 
costs at the borders during the review period (Table 3.4). For example, the time taken to clear the 
border, by road, was halved, from 3.4 hours in 2016 to 1.6 ho urs in 2019, and the costs significantly 
decreased from USD 142 in 2016 to USD 23 in 2019. For 2019, the time taken to clear a border 
crossing (inbound) declined to two hours, and the same trend occurred regarding the costs incurred 
to cross the border (in bound), which declined significantly, from USD 191 to USD 25 over the period.  
In general, outbound traffic costs and time are better compared with inbound. As compared with 
overall CAREC averages, the Kyrgyz Republic has generally lower times and costs, al though travel 
speed is comparatively worse. The Irkshetam border was cited for having relatively high costs 
compared with other border crossings, although costs dropped considerably in 2018.  
Table 3.4 TFIs and comparison to CAREC members, 2016 -19 
TFI  Kyrgyz Republic  CAREC average  
Road transport  Rail transport  Road transport  Rail transport  
2016  2017  2018  2019  2017  2018  2019  2017  2018  2019  2017  2018  2019  
1 Time taken to 
clear a border -
crossing point 
(hours)  3.4 3.5 1.6 1.6 .. 1.2 1.2 16.9 12.0 12.2 26.2 23.2 20.6 
   Outbound  3.4 2.9 1.1 0.9 .. .. .. .. .. .. .. .. .. 
   Inbound  3.5 4.0 2.0 2.0 .. 1.2 1.2 .. .. .. .. .. .. 
2 Cost incurred at 
border -crossing 
clearance (USD)  142 121 24 23 .. .. .. 159 155 162 202 196 198 
   Outbound  72 36 23 21 .. .. .. .. .. .. .. .. .. 
   Inbound  191 175 25 25 .. .. .. .. .. .. .. .. .. 
3 Cost incurred to 
travel a corridor 
section (USD, 
per 500  km, per 
20-tonne cargo)  1,530  781 1,219  1,122  456 434 338 947 953 901 976 970 820 
4 Speed to travel 
on CAREC 
corridors (km/h)  26.2 28.1 29.8 30.8 35.9 21.6 23.5 22.2 23.4 22.6 14.8 15.9 19.0 
SWOD  Speed without 
delay (km/h)  39.0 49.1 50.9 50.6 50.7 28.7 33.2 45.0 46.3 43.6 37.6 35.4 45.0 
.. Not available.  
Source:  CAREC, CAREC Corridor Performance Measurement and Monitoring Annual Report 2018 . Viewed at: 
https://www.carecprogram.org/uploads/CAREC -Corridor -Performance -Measurement -Monitoring -
Annual -Report -2018.pdf ; and CAREC Corridor Pe rformance Measurement and Monitoring Annual 
Report 2019 . Viewed at: https://www.carecprogram.org/uploads/carec -cpmm -annual -report -
2019.pdf . 
In January 2020, the Kyrgyz R epublic notified the WTO Committee on Trade Facilitation, as 
well as the Council for Trade in Goods, of the difficulties it was having with respect to delays with 
transit of goods with neighbouring Kazakhstan.26 A similar complaint was raised in the Counci l for 
Trade in Goods in 2017, but transit traffic was later normalized as at 11 December 2017 pursuant 
to the signing of a bilateral "Road Map" to address bilateral economic cooperation, including on 
border measures, transport/transit, phytosanitary and ve terinary control, customs, and tax 
administration matters.27 Furthermore, according to an agreement between the Kyrgyz Republic and 
 
24 Other CAREC members include Afghanistan, Azerbaijan, China, Georgia, Kazak hstan, Mongolia, 
Pakistan, Tajikistan, Turkmenistan, and Uzbekistan.  
25 CAREC, CAREC Corridor Performance Measurement and Monitoring Annual Report 2019 . Viewed at: 
https://www.carecprogram.org/uploads/carec -cpmm -annual -report -2019.pdf .  
26 WTO documents G/TFA/W/20 and G/C/W/774, 31 January 2020.  
27 WTO documents G/C/W/745, 18 October 2017; and G/C/W/745/Add.1, 20 December 2017.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 48 - 
 
  the Russian Federation on the provision of technical assistance to the Kyrgyz Republic per its 
accession to the EAEU, arrang ements are underway for the provision of technical equipment at the 
checkpoints on the Kyrgyz section of the external border of the EAEU in order to modernize the 
checkpoints. Also, within the framework of an A sian Development Bank (ADB) programme, 
modernization of the Karamyk checkpoint at the Tajik border is also being carried out.  
Pursuant to Article  11 of the TFA, the Kyrgyz Republic set up a National Transit Coordinator 
and notified this to the WTO.28 Government Resolution No.  445 of 2 September 2019 and its 
appendix designate the State Customs Service as the National Transit Coordinator.29 Furthermore, 
the legislation gives certain powers to the coordinator, creates a Coordination Council among 
government bodies, and sets out the basi c rights of the coordinator.  
3.1.1.3   Customs valuation  
Due to the changes in the customs regime during the review period, several different laws or 
regulations were relevant for the determination of customs valuation. Initially, the Kyrgyz Republic's 
Customs Code and its related resolution on customs valuation had applied since 2004, but became 
invalid following the Kyrgyz Republic's EAEU membership in 2015, whereby customs valuation was 
determined pursuant to Chapter 8 of the 2009 Customs Code of the customs union  along with Law 
No. 52 of 24  April 2019 on Customs Regulation.30 In January 2018, the Treaty on the Customs Code 
of the EAEU entered into force with the main provisions on customs valuation contained in Chapter  5; 
corresponding Kyrgyz legislation, e.g. the  Law o n Customs Regulation, complements the information 
in the EAEU Customs Code.31 Thus, this overview covers the rules in place as at 2018 -19. 
The EAEU Customs Code provides the main framework, definitions, and uniform application 
for customs valuation upon importation into the customs territory of the Union. There are also 
18 decisions of the EAEU or its predecessor organizations that clarify va rious points on customs 
valuation (Table 3.5). When goods are placed under the "export" customs procedure, the customs 
authority accepts the customs value declared by the declarant, which in accordance with 
paragraph  10 of Article  38 of the EAEU Customs Co de must be based on reliable quantifiable 
information supported by documentation. The relevant sections of the code on customs valuation 
(noted below) also do not apply to the special import procedures for goods of personal use moved 
across the customs bor der (Section 3.1.1), as a unified or flat rate is applied as regulated by 
Article  267 of the EAEU Customs Code.  
The Code sets out six methods of valuation in Articles 39 -45, modelled after the Agreement 
on Implementation of Article  VII of the General Agre ement on Tariffs and Trade 1994, including 
interpretative notes. They include: the Method Involving the Transaction Value of Imported Goods 
(Method 1); the Method Involving the Transaction Value of Identical Goods (Method 2); the Method 
Involving the Trans action Value of Similar Goods (Method 3); Deduction Method (Method 4); 
Computed Method (Method 5); and the Residual Method (Method 6). The Code also sets out 
adjustments to the price actually paid or payable for goods in Article  40. The customs value of 
imported goods is to be calculated in the currency of the member State in which the customs duties 
are payable.  
 
28 WTO document G/TFA/W/16, 2 October 2019 . 
29 Ministry of Justice, Government Resolution No.  445 of 2  September 2019 about the National Transit 
Coordinator and its appendix. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/157053?cl=ky -kg and 
http://cbd.minjust.gov.kg/act/view/ky -kg/157054 .  
30 Law No.  88 of 12 July 2004 on the Customs Code; Decree No.  961 of 28 December 2004 on the 
Instruction on the Methodolog y for Determining Customs Value of Imported Goods to the Kyrgyz Republic; 
2009 Customs Code of the Customs Union. Viewed at: 
http://www.eurasiancommission.org/ru/docs/Pages/default.aspx?d db=%D0%95%D0%AD%D0%9A;&db=%D0
%A2%D0%B0%D0%BC%D0%BE%D0%B6%D0%B5%D0%BD%D0%BD%D1%8B%D0%B9+%D0%BA%D0%
BE%D0%B4%D0%B5%D0%BA%D1%81%7Cfb8ec47d -50f0-406e-8366-4ef8a1ba70ec&dpsd=2009 -01-
01&dped=2013 -12-31&qt=Morphology&pt=tree&search=1&page=1&ismain=0&hd=1 ; Law No.  184 of 
31 December 2014 on Customs Regulation; and Government Resolution No.  564 of 10 August 2015 on 
Measures to Implement the Requirements of Articles 95, 101, 102, 105, 128, 135, 148, 153, 157, 158, 163, 
176, 180, 213, 229, and 232 of the Law on Customs  Regulation.  
31 EEC, EAEU Customs Code . Viewed at: 
http://www.eurasiancommission.org/ru/act/tam_sotr/dep_tamoj_zak/Pages/tk_eaes.aspx .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 49 - 
 
  
Article  313 of the Code provides for customs control of the customs value of goods declared 
during the importation process. The national customs a uthority conducts checks of the information 
for correctness and determines the value per the application of the relevant method. The authority 
has the right to request explanations and information about the factors influencing the price of the 
goods as wel l as the circumstance; this is performed pursuant to Article  325 of the Code. Preliminary 
decisions on the application of the methods for determining the customs value are made by the 
national authorities according to their legislation. If the declared val ue and information are 
satisfactory, the customs authority will release the goods; otherwise, the authority may decide to 
amend the declaration pursuant to the provisions of Article  112 of the Code. The EAEU Commission 
also has a role, especially when ther e are signs of incorrect valuation of goods. EEC Board Decision 
No. 42 of 27 March 2018 on the Features of Customs Control of Customs Value Goods Imported into 
the Customs Territory of the Eurasian Economic Union specifies the rules for customs control of the 
customs valuation of goods imported into the customs territory of the EAEU; it is applicable both 
before and after the release of the imported goods.  
The Code further notes that advance rulings on the customs value of goods are not to be 
undertaken unl ess provisions are contained in the legislation of the particular member State. For the 
Kyrgyz Republic, there are no provisions; therefore, the Kyrgyz Republic does not perform advance 
rulings for customs valuation.  
On 21 April 2020, the EAEU Board amend ed the structure and format of the customs value 
declaration following EEC Board Decision No.  52 of 21 April 2020 on Amendments to the Structure 
and Format of the Customs Value Declaration.32 The changes provided for by this decision are related 
to the rel ease of a new version of the structure of the goods declaration and the transit declaration. 
In addition, in the updated structure of the declaration of customs value (version 1.1.0), EEC Board 
Decision No.  34 of 10  March 2020 on the Reference Book of Meth ods for Identifying Business Entities 
during their State Registration in the Member States of the Eurasian Economic Union was 
implemented, as well as related targeted improvements.33 
Table 3.5 Main legislation , regulations, and decisions on customs valuation, 2020  
Reference  Date  EAEUa or 
national 
legislation  
Treaty on the Customs Code of the EAEU, Chapter 5  11 April 2017  EAEU  
Law No.  52 on Customs Regulation, Chapter 5  24 April 2019  National  
EEC Board Decision No.  202 on the Application of Methods for Determining 
the Customs Value of Goods by Transaction Value with Identical Goods 
(Method 2) and Transaction Value with Homogeneous Goods (Method 3)  30 October 2012  EAEU  
EEC Board Decision No.  283 on the A pplication of the Method for Determining 
the Customs Value of Goods by the Value of the Transaction with Imported 
Goods (Method 1)  20 December 2012  EAEU  
EEC Board Decision No.  214 on the Application of the Subtraction Method 
(Method 4) in Determining the Customs Value of Goods  13 November 2012  EAEU  
EEC Board Decision No.  273 on the Application of the Addition Method 
(Method 5) in Determining the Customs Value of Goods  12 December 2012  EAEU  
EEC Board Decision No.  53 on Amendments to the Rules for the Application 
of the Method for Determining the Customs Value of Goods at the Cost of 
Transactions with Imported Goods (Method 1)  26 March 2013  EAEU  
EEC Board Decision No.  145 on Approval of the Regulation on the Specifics 
of Application Methods for Determi ning the Customs Value of Goods 
Imported into a Single Customs Territory of the Customs Union, which Have 
Fallen into Disrepair, Damaged or Damaged due to an Accident or Force 
Majeure  25 June 2013  EAEU  
EEC Board Decision No.  180 on Approval of the Regulat ion on the Features 
of the Application of Methods Determining the Customs Value of Goods 
Transported through the Customs Border of the Customs Union with Non -
declaration  27 August 2013  EAEU  
EEC Board Decision No.  279 on Amending the Rules for the Applicat ion of 
the Method for Determining the Customs Value of Goods at the Cost of 
Transactions with Imported Goods (Method 1)  2 December 2013  EAEU  
 
32 EEC, EEC Board Decision No.  52 of 21 April 2020. Viewed at: https://docs.eaeunion.org/docs/en -
us/01428082/err_24042020_52 .  
33 EEC, EEC Board Decision No.  34 of 10 March 2020. Viewed at: https://docs.eaeunion.org/docs/en -
us/01428064/err_17032020 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 50 - 
 
  Reference  Date  EAEUa or 
national 
legislation  
EEC Board Decision No.  112 on Approval of the Addition of Intermediary 
Remuneration (Brokers) and Remuneration to the Price Actually Paid or 
Payable for the Imported Goods  15 July 2014  EAEU  
EEC Board Decision No.  113 on the Regulation on the Use in the Application 
of Determination Methods for Customs Value of Goods of Documents 
Corresponding to Generally Accepted Accounting Principles  15 July 2014  EAEU  
EEC Board Decision No.  118 on Approval of the Rules for Accounting for 
Interest Payments when Determining the Customs Value of the Goods  22 September 2015  EAEU  
EEC Board Decision  No. 130 on Approval of the Regulation on the Specifics 
of Determining the Customs Value of Goods at the End of the Customs 
Procedure of Free Customs Areas and Customs Procedures of Free 
Warehouses  1 January 2016  EAEU  
EEC Board Recommendation No.  20 on the Regulation on the Addition of 
License and Other Similar Payments for the Use of Intellectual Property to 
the Price Actually Paid or Payable for Imported Goods, as Amended by EEC 
Board Recommendation No.  15 on Amendments to the Regulation on 
Adding License and Other Similar Payments for the Use of Intellectual 
Property to the Price Actually Paid or Payable for Imported Goods  15 November 2016  
28 August 2018  EAEU  
EEC Board Decision No.  4 on the Structure and Format of the Declarat ion  16 January 2018  EAEU  
EEC Board Decision No.  42 on the Features of Customs Control of Customs 
Value Goods Imported into the Customs Territory of the Eurasian Economic 
Union  27 March 2018  EAEU  
EEC Board Decision No.  82 on Approval of the Regulation on  the Specifics 
of Determining the Customs Value of Waste  22 May 2018  EAEU  
EEC Board Decision No.  83 on Calculating Additional Charges when 
Determining the Customs Value of Goods  22 May 2018  EAEU  
EEC Board Decision No.  103 on Approval of the Procedure for Deferred 
Determination of Customs Value of Goods  19 June 2018  EAEU  
EEC Board Decision No.  160 on Cases of Filling Out a Customs Value 
Declaration, Approval Forms of Declaration of Customs Value and the 
Procedure for Filling Out the Declarati on of Customs Value  16 October 2018  EAEU  
EEC Collegium Decision No.  138 on the Rules of Application of Methods on 
Determination of Customs Value of Goods According to the Reserve Value 
Method (Method 6)  6 August 2019  EAEU  
a EAEU refers to the EAEU or its predecessor organizations.  
Source:  Compiled by the WTO Secretariat from the EEC. Viewed at: 
http://www.eurasiancommission.org/ru/act/tam_sotr/dep_tamoj_zak/SiteAssets/%D0%9C%D0%B5
%D0%B6%D0%B4%D1%83%D0%BD%D0%B0%D1%80% D0%BE%D0%B4%D0%BD%D1%8B%D
0%B5%20%D0%B4%D0%BE%D0%B3%D0%BE%D0%B2%D0%BE%D1%80%D1%8B%20%D0%B
8%20%D0%B0%D0%BA%D1%82%D1%8B%20%D0%B2%20%D1%81%D1%84%D0%B5%D1%8
0%D0%B5%20%D1%82%D0%B0%D0%BC%D0%BE%D0%B6%D0%B5%D0%BD%D0%BD%D0%
BE%D0%B3%D0%BE%20%D1%80%D0%B5%D0%B3%D1%83%D 0%BB%D0%B8%D1%80%D0%
BE%D0%B2%D0%B0%D0%BD%D0%B8%D1%8F/%D0%9F%D0%B5%D1%80%D0%B5%D1%87
%D0%B5%D0%BD%D1%8C%20%D1%80%D0%B5%D1%88%D0%B5%D0%BD%D0%B8%D0%B
9.pdf and http://w ww.eurasiancommission.org/ru/act/trade/catr/value/Pages/default.aspx ; and 
Ministry of Justice, Law No.  52 of 24 April 2019 on Customs Regulation. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ ky-kg/111908 . 
Article  39 of the Law on Customs Regulation confirms that to determine the valuation of 
carrier media, the value of the carrier media is used and not the value of software or data contained 
therein.  
In September 2019, the Kyrgyz Republic noti fied the Customs Valuation Committee of 
relevant legislation of the EAEU on the Rules of Application of Methods on Determination of Customs 
Value of Goods According to the Reserve Value Method (Method 6), approved by EEC Collegium 
Decision No.  138 of 6 Aug ust 2019.34 This essentially clarifies the rules used in applying the "reserve 
method" of customs valuation. No other notification of customs valuation legislation has been 
received since 2000.  
3.1.1.3.1   Minimum import control prices  
Pursuant to Article  72 of and A nnex 18 to the EAEU Treaty, the Kyrgyz Republic passed 
Resolution No.  537 on 12 October 2016, as modified by Resolution No.  609 of 25 September 2017, 
 
34 WTO document G/VAL/N/1/KGZ/2, 24 September 2019.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 51 - 
 
  on the minimum level of control prices for goods imported into the Kyrgyz Republic from EAEU 
member States .35 This Resolution was reportedly introduced to be able to determine the taxable 
base when there is underestimation of the value of goods or the absence of the actual value of the 
imported goods. As at 2020, there were minimum prices applied to 36 categor ies of products, mostly 
agricultural products (Table 3.6).  
The Kyrgyz Republic also issued relevant legislation to operationalize these provisions 
domestically. In 2016 and 2017, the Government approved a resolution and issued a corresponding 
order under the State Agency for Antimonopoly Regulation.36 These rules determine the inclusion of 
goods on the list; the minimum level of the control price, which is essentially a 20% reduction of the 
average retail price; and the forms and process for businesses to request a product's inclusion. The 
authorized state body in the field of antimonopoly regulation maintains the list of goods for minimum 
control prices. If the importer is importing goods included in the list and indicates in the contract 
and in the shippi ng documents that the price of the goods is less than the established minimum 
control price, the tax liability is calculated using the established minimum price level and is reflected 
as such in the reporting.  
Changes were made in 2020 with minimum prices modified or imposed on a number of other 
products. Government Resolution No.  279 of 29 May 2020 revised the list of products subject to 
minimum import prices and also amended the Resolution from 2016. Furthermo re, Law No.  3657-VI 
on Amending Certain Legislative Acts on the Stabilization of the Social and Economic Situation in 
Connection with Force Majeure, which was adopted on 1  April 2020, provides for the application of 
the minimum level of control prices both  for imports of goods from the EAEU and goods produced in 
the Kyrgyz Republic.  
Table 3.6 List of products subject to minimum import prices from the EAEU, 2020  
Name  Tariff code  Minimum price  Legal reference – State Agency 
for Antimonopoly Regulation  
Portland cement  2523 21000 0  3,947 KGS/tonne  
4,072 KGS/tonne  Regulation No.  1 of 5 January 2017  
Regulation No.  35 of 25 September 
2017 
Wheat flour from soft 
wheat and spelt  1101 00150 0  20.3 KGS/kg  
 
18.0 KGS/kg  
16.0 KGS/kg  
28 KGS/kg  
22 KGS/kg  Regulation No.  8 of 24 September 
2017 
Regulation No.  21 of 2 June 2017  
Regulation No.  21 of 14 June 2018  
Regulation No.  18 of 8 May 2020  
Regulation No.  22 of 26 June 2020  
White sugar  1701 99100 9  24 KGS/kg  Regulation No.  22 of 26 June 2020  
Coal 2701 19000 0  2,083 KGS/tonne  
 
2,514 KGS/tonne  Regulation No.  8 of 24 February 
2017 
Regulation No.  14 of 31 March 2020  
Wheat flour from durum 
wheat  1101 00110 0  22 KGS/kg  Regulation No.  8 of 24 February 
2017 
Wheat flour from soft 
wheat and spelt  1101 00 150 0  22 KGS/kg  Regulation No.  8 of 26 June 2020  
Wood materials  4407 11930 0  6,582 KGS/cm3 Regulation No.  12 of 14 March 2017  
Wood materials  4407 10930 0  7,275 KGS/cm3 Regulation No.  12 of 14 March 2017  
Rice, broken  1006 40000 0  14.4 KGS/kg  Regulation No.  12 of 14 March 2017  
Rice 1006 30940 0  28 KGS/kg  Regulation No.  12 of 14 March 2017  
 
35 State Tax Service, Resolutions No.  537 of 12 October 2016 and No.  609 of 2 5 September 2017. 
Viewed at: http://www.sti.gov.kg/ky/%D0%B1%D0%B0%D0%B0%D0%BD%D1%8B%D0%BD -
%D0%BC%D0%B8%D0%BD%D0%B8%D0%BC%D0%B0%D0%BB%D0%B4%D1%8B%D0%BA -
%D0%B4%D0%B5%D2%A3%D0%B3%D1%8D%D1%8D%D0%BB%D0%B8 -
%D0%B6%D3%A9%D0%BD%D2%AF%D0%BD%D0%B4%D3%A9/30 -
%D0%BD%D0%BE%D1%8F%D0%B1%D1%80%D0%B4%D1%8B%D0%BD -2017-
%D0%B6%D1%8B%D0%BB -537 and http://www.sti.gov.kg/docs/default -
source/ppkr/ppkr20172509n609kg.pdf?sfvrsn=2 .  
36 Ministry of Justice, Resolution No.  537 of 12 October 2016 on Approval of the Procedure for 
Determination, Application and Control of the Minimum Level of Control Prices for the Goods Imported into the 
Territory of the Kyrgyz Republic from the Member States of the Eurasian Economic Union, as amended by 
Resolution No.  609 of 25  September 2017 and Regulation No.  537 of 12 October 2016 about Implementation 
of Government Order No.  1 of 30 November 2017 about Appr oval of the Procedure for Determination, 
Application and Control of the Minimum Level of Control Prices for the Goods Imported into the Territory of the 
Kyrgyz Republic from the Member States of the Eurasian Economic Union. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/99473  and http://cbd.minjust.gov.kg/act/view/ky -kg/200205 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 52 - 
 
  Name  Tariff code  Minimum price  Legal reference – State Agency 
for Antimonopoly Regulation  
Eggs 0407 21000 0  4.9 KGS/piece  Regulation No.  12 of 14 March 2017  
Beer 2203 00 010 0  48.0 KGS/bottle 0.5 l  Regulation No.  21 of 9 August 2019  
Sanitary napkins classic 
for women without wings, 
pack, 10 pcs.  9619 00 710 1  45 KGS  Regulation No.  28 of 28 August 2020  
Sanitary napkins classic 
for women with wings, 
pack, 10 pcs.  9619 00 710 1  48 KGS  Regulation No.  28 of 27 August 2020  
Sanitary pads for women 
ultra-thin, pack, 10 pcs.  9619 00 710 1  47 KGS  Regulation No.  128 of 27 August 
2020  
Sanitary pads for women 
daily classic, pack, 20 pcs.  9619 00 710 1  37 KGS  Regulation No.  28 of 27 August 2020  
Sanitary pads for women 
daily ultra -thin, pack, 
20 pcs. 9619 00 710 1  38 KGS  Regulation No.  28 of 27 August 2020  
Cotton pads cosmetic, 
pack, 100 pcs.  5601 21 100 0  42 KGS  Regulation No.  10 of 19 March 2020  
Cotton buds, pack, 
100 pcs. 5601 21 100 0  19 KGS  Regulation No.  10 of 19 March 2020  
Urological pads, 20 pcs.  9619 00 710 1  155 KGS/package  Regulation No.  10 of 19 March 2020  
Adult diapers hygiene, 
30 pcs. 9619 00 89 0 1 1,011 KGS/package  Regulation No.  10 of 19 March 2020  
Adult diapers hygiene, 
60x60, 30 pcs.  9619 00 890 1  705 KGS/package  Regulation No.  10 of 19 March 2020  
Adult diapers hygiene, 60, 
90, 30 pcs.  9619 00 890 1  954 KGS/package  Regulation No.  10 of 19 March 2020  
Butter  0405 10 190 0  241 KGS/kg  Regulation No.  22 of 26 June 2020  
Margarine  1517 10 100 0  94 KGS/kg  Regulation No.  15 of 11 April 2020  
Pasta  1902 30 100 0  93 KGS/kg  Regulation No.  15 of 11 April 2020  
Bananas  0803 90 100 0  81 KGS/kg  Regulation No.  16 of 21 April 2020  
Soft wheat and meslin  1001 99 000 0  15 KGS/kg  Regulation No.  19 of 27 May 2020  
Soft wheat  1104 29 510 0  17 KGS/kg  Regulation No.  21 of 11 June 2020  
Buckwheat  1008 10 000 9  52 KGS/kg  Regulation No.  24 of 15 July 2020  
Sunflower oil refined in 
primary packaging with a 
net volume of 10 litres or 
less 1512 11 910 1  65 KGS/kg  Regulation No.  24 of 15 July 2020  
Cheese with fat content 
exceeding 40%  0406 90 990 9  316 KGS/kg  Regulation No.  22 of 26 June 2020  
Buckwheat  1008 10 0009  52 KGS/kg  Regulation No.  24 of 15 July 2020  
Sunflower -seed oil in net 
primary packs of 10 litres 
or less  1512 11 9101  65 KGS/litre  Regulation No.  24 of 15 July 2020  
Adult diapers hygiene, 
30 pcs. 9619 00 890 1  745 KGS  Regulation No.  28 of 27 August 2020  
Adult diapers hygiene, 
60x60, 30 pcs.  9619 00 890 1  503 KGS  Regulation No.  28 of 27 August 2020  
Adult diapers hygiene, 
60x90, 30 pcs.  9619 00 890 1  653 KGS  Regulation No.  28 of 27 August 2020  
Fresh pineapple  0804 30 000 1  85 KGS/kg  Regulation No.  29 of 28 August 2020  
Source:  Information provided by the authorities; and State Tax Service, Minimum Level of Control Prices on 
a Set List of Goods . Viewed at: 
http://www.sti.gov.kg/ky/%D0%B1%D0%B0%D0%B0%D0%BD%D1%8B%D0%BD -
%D0%BC%D0%B8%D0%BD%D0%B8%D0%BC%D0%B0%D0%BB%D0%B4%D1%8B%D0%BA -
%D0%B4%D0%B5%D2%A3%D0%B3%D1 %8D%D1%8D%D0%BB%D0%B8 -
%D0%B6%D3%A9%D0%BD%D2%AF%D0%BD%D0%B4%D3%A9 .  
3.1.2   Rules of origin  
The Kyrgyz Republic's basic legal framework for rules of origin has also undergone significant 
change since the previous Review as a result of joining the EAEU. Similar to o ther customs 
provisions, Article  37 of the EAEU Treaty provides a uniform basic framework for rules of origin for 
all EAEU member States. The EAEU Customs Code further expands on the provisions in 
Articles  28-36, and there are two  main EEC Council Decision s that provide the details of origin WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 53 - 
 
  determination for non -preferential and preferential trade.37 The 2019 Customs Regulation of the 
Kyrgyz Republic also gives details on certain aspects of origin determination. The last five articles of 
Chapter 4 of the E AEU Customs Code are concerned with the issue of advance rulings on the origin 
of goods. Issues not covered by these Articles may be further defined in accordance with the Law 
on Customs Regulation.  
3.1.2.1   Non-preferential  
The EAEU non -preferential rules of origi n apply to third -country imports into the customs 
territory of the EAEU for all non -preferential policy instruments, including application of non -tariff 
measures, trade remedies, origin marking requirements, trade statistics, and government 
(municipal) pro curement.38 EEC Council Decision No.  49 of 13 July 2018 on Rules of Origin of Goods 
Imported into the Customs Territory of the Eurasian Economic Union (Non -preferential Rules of 
Origin), which entered into force on 12 January 2019, gives the details of how  origin should be 
determined.39 It establishes two main methods:  
• wholly obtained or produced, according to a list of products40; and  
• sufficiently processed according to two possibilities:  
• a change of HS classification at the 4 -digit level; or  
• the value o f non -originating materials does not exceed 50% of the value41 of the 
goods.  
If origin cannot be determined by these two methods, two residual rules may be used.42 But 
these provisions may be used only for determining the origin of goods similar to those for which 
trade remedies are applied in accordance with the EAEU Treaty. A list of operations that do not 
confer origin is also provided; these processes include cl eaning, freezing, simple assembly, and 
colouring. Furthermore, the Decision allows for the EEC Council to establish product -specific rules 
based on change of HS classification, fulfilment of specific work processes, a specific percentage of 
value -added con tent, or a combination of any of these. While the EEC may establish product -specific 
 
37 EEC, EEC Council Decisions No.  49 of 13 July 20 18 and No.  60 of 14 June 2020.  
38 They are also used to determine origin for non -tariff measures and measures to protect the domestic 
market, i.e. trade remedies; implement state (municipal) procurement; maintain statistics on external trade; 
and establish requirements for marking the origin of goods.  
39 EEC, EEC Council Decision No.  49 of 13 July 2018 on Rules of Origin of Goods Imported into the 
Customs Territory of the Eurasian Economic Union (Non -preferential Rules of Origin), as amended by Decision 
No. 57 of 10 July 2020. Viewed at: 
http://www.eurasiancommission.org/en/act/trade/dotp/prav_proish/Documents/Non -
preferential%20rules%20of%20origin_.pdf .  
40 The products include: (i)  minerals, mineral goods, and other naturally occurring substances extracted 
from a country's soil, its terri torial waters (other internal waters), or its seabed or taken from the air in the 
territory of that country; (ii) vegetable goods harvested and/or gathered in that country; (iii) live animals born 
and raised (grown) in that country; (iv) goods obtained fro m live animals in that country; (v) goods obtained 
from hunting and fishing in that country; (vi) goods of sea fishing and other marine goods taken (caught) from 
the sea outside the territorial waters of that country by a vessel registered in the country a nd flying its flag; 
(vii) goods produced exclusively from goods referred to in subparagraph (vi) on board a factory ship registered 
in that country and flying its flag; (viii) goods extracted from marine soil or subsoil outside that country's 
territorial w aters, provided the country has sole rights to work that soil or subsoil; (ix) waste and scrap 
(secondary raw materials) resulting from production or consumption conducted in that country provided that 
such goods fit only for utilization and/or recovery of  raw materials; (x) used goods collected in that country 
provided that such goods can no longer fulfil their original function and fit only for utilization and/or recovery of 
raw materials; (xi) high -tech goods produced in outer space on board a spacecraft  registered in that country 
(including those leased by such country); and (xii) goods produced in that country solely from the goods 
referred to in subparagraphs (i) through (xi) above.  
41 The value is defined as the price paid for the goods to the producer  in whose undertaking the last 
working or processing is carried out, in accordance with the International Commercial Terms (Incoterms 2010), 
provided the value does not include internal taxes that are, or may be, repaid when the goods are exported.  
42 These  are: (i) if the good is produced from materials originating in a single country other than the 
country in which the production takes place, such good shall be considered as originating in the country in 
which those materials originated; or (ii) if the goo d is produced from materials originating in more than one 
country, such good shall be considered as originating in the country in which the major portion of those 
materials originated, as determined on the basis of the value of materials in the value of go ods. WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 54 - 
 
  rules, currently there are no product -specific rules developed for non -preferential origin purposes. 
The Decision also specifies documentary proof of origin and requiremen ts for certificates of origin.  
3.1.2.2   Preferential  
The preferential rules of origin are dependent upon the underlying agreement, and thus there 
are three main types: (i)  preferences for developing countries and least developed countries (LDCs); 
(ii) Commonwealth of Independent States (CIS) rules of origin for the current CIS members plus 
one former member (Georgia); and (iii)  rules of origin for the EAEU preferential trade agreements  
(Viet Nam and the Islamic Republic of Iran).  
Rules of origin for developing count ries and LDCs under the EAEU's Common System of Tariff 
Preferences (CSTP) underwent modification during the review period. Prior to joining the customs 
union, the Kyrgyz Republic had its own preference regime based on GSP, and its rules of origin were 
specified in its Customs Code. Thereafter, the rules of origin for the EAEU's CSTP were applied from 
its accession.43 The EAEU rules were later withdrawn and replaced with new rules of origin applicable 
from 16 January 2019.44  
The new rules of origin from 201 9 specify two main criteria for the origin determination: 
(i) "wholly obtained", in which a listing of certain goods is provided; and (ii)  "sufficiently processed", 
whereby non -originating materials shall not exceed a certain percentage of the value of the  exported 
goods. In the case of developing countries, the limit is 50%. For LDCs, a percentage is applied for 
the use of non -originating materials in the exported product that increases gradually during 2019 -25, 
as follows:  
• 50% from January 2019 to 31 Dece mber 2019;  
• 55% from 1 January 2020 to 31 December 2024; and  
• 60% from 1 January 2025.  
Furthermore, certain minimal processing pursuant to a list, as above for non -preferential rules of 
origin, have been designated as non -origin conferring.  
These rules of or igin were modified temporarily on 3 April 2020 in response to the COVID -19 
pandemic in order to simplify the requirements for certificates of origin for these countries until 
30 September 2020.45 In particular, paper or electronic copies of the Certificate  of Origin, Form A, 
could be used for a period of six months, and there was no obligation to submit the original during 
the customs process. After the six -month grace period, the original certificate needed to be 
submitted, otherwise full customs fees or f ines would be applied. This measure has since expired, 
and thus it is required to submit the original certificate of origin for the granting of tariff preferences.  
Rules of origin for the two recently concluded FTAs with Viet  Nam and the Interim Agreement 
with the Islamic Republic of Iran (Iran FTA) follow a similar approach, but with three main elements 
designated for determining origin:  
• wholly obtained, per a list of eligible products;  
• produced entirely by one or both parties from originating materials fr om one or both; and  
 
43 EEC, Agreement on Rules of Origin for Developing and Least Developed Countries , 12 December 
2008. Viewed at: 
http://www.eurasiancommission.org/en/act/trade/dotp/commonSytem/Documents/Rules%20of%20Origin%20
for%20for%20developing%20and%20least%20developed%20countries.pdf . 
44 EEC, EEC Council Decision No.  60 of 14 June 2018, as am ended by EEC Council Decision No.  36 of 
3 April 2020. Viewed at: 
http://www.eurasiancommi ssion.org/en/act/trade/dotp/commonSytem/Documents/Rules%20of%20origin%20f
or%20DC%20and%20LDC%20%28new%29+COVID%20%28GPS%29.pdf .  
45 EEC, EEC Council Decision No.  36 of 3 April 2020 on Amending the Rules of Identifying Goods 
Originating from Developing and t he Least Developed Countries and on the Particularities of Supplying 
Certificates of Origin of Goods amid the Spread of COVID -19. Viewed at: 
http://www.eurasiancommission .org/en/nae/news/Pages/03 -04-2020-2.aspx .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 55 - 
 
  • sufficiently processed (for goods produced using non -originating materials).  
The FTA with Viet  Nam contains the requirements for sufficient processing for all goods in 
product -specific rules (Annex 3 to the FTA). The mentioned annex use s a variety of methods to 
confer origin, such as a change of HS classification, percentage of value added content, processing 
operations, or their combination. The Iran FTA provides as a general origin rule the minimum 
percentage of the value added content  (50% of the value of goods) and, for certain goods 
(HS 7303-7307 and 8702 -8704), stipulates specific origin criterion (Annex 2 to the Interim 
Agreement).  
The preferential rules of origin that are applicable to the CIS countries remain determined by 
the A greement on the Rules for Determining Country of Origin for Goods in the CIS from 
20 November 2009 (CIS Rules), and there have been several protocols amending these rules.46 The 
main rules of origin are wholly obtained and sufficient processing. As with th e other similar rules, a 
list of wholly obtained goods is provided. For "sufficient processing", the main element is a change 
in HS classification at the 4 -digit level but with the exception of goods listed in the annex where 
specific conditions or technol ogies are applied that determine origin.  However, for Uzbekistan and 
Turkmenistan, in accordance with the Protocol on the Application of the Agreement for a Free Trade 
Zone of 18 October 2011, the parties to the Protocol apply the rules of determining coun try of origin 
of goods of 24 September 1993.  
The Kyrgyz Republic made several notifications of its rules of origin during the review period. 
In 2018, it notified the EAEU non -preferential rules or origin and those that apply to the CSTP47, and 
progressivel y notified rules of origin that apply to the CIS, Viet  Nam, and the Islamic Republic of 
Iran.48  
3.1.2.3   Free (special) economic zones  
As part of the transitional arrangements contained in the Protocol on Subsidies of the EAEU 
upon joining the customs union, the Kyrgyz Republic was granted an exemption from customs duties 
and taxes until 1 January 2017 for goods recognized by the Kyrgyz R epublic's criteria of sufficient 
processing when exported from the territories of FEZs Bishkek, Naryn, and Karakol or from the free 
warehouses to the rest of the customs territory of the EAEU.49 With respect to these measures, the 
provisions of the Protoco l are not applied, provided that the Kyrgyz Republic introduces an 
amendment to its legislation that establishes criteria for sufficient processing as follows, for certain 
goods50: 
• textile and footwear products of HS 51 -64 (origin criteria as per the CIS Rules);  
• equipment and mechanical devices of HS 8415, 8418, 8421, and 8422; and electrical 
machines and equipment of HS 8508, 8509, 8510, 8512, 8513, 8516, and 8528 (origin 
criteria as per the CIS Rules or in which the percentage of value added cannot be less than 
40%);  
• plastics of HS 3901 -3921 (origin criteria as per the CIS Rules or in which the percentage 
of value added cannot be less than 50%); and  
 
46 EEC, Agreement on the Rules for Determining the Country of Origin of Goods in the Commonwealth of 
Independent States , 20 November 2009. Viewed at: 
http://www.eurasiancommission.org/hy/act/trade/dotp/commonSytem/Documents/CIS_Agreement_on_ROO.p
df.  
47 WTO documents G/RO/N/177 and G/RO/LDC/N/KGZ/1, 28 November 2018.  
48 WTO documents G/RO/N/106, 19 Septem ber 2013; G/RO/N/106/Corr.1, 2 July 2015; G/RO/N/162, 
21 July 2017; and G/RO/N/194, 18 February 2020.  
49 According to paragraph 1 of Section V of the Protocol on Unified Rules for the Provision of Industrial 
Subsidies, i.e. EAEU Treaty of 29 May 2014, Annex  28. 
50 Law No.  6 of 11 January 2014 on Free Economic Zones, Government Resolution No.  715 of 
3 November 1998 on the Procedure for Determining Country of Origin of Goods Manufactured in Free Economic 
Zones of the Kyrgyz Republic, the Agreement on the Issues  of Free (Special) Economic Zones in the Customs 
Territory of the Customs Union and the Customs Procedure of the Free Customs Zones of 18 June 2010, Law 
No. 184 of 31 December 2014 on Customs Regulation, and the Agreement on Free Warehouses and Customs 
Procedures of Free Warehouses of 18 June 2010.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 56 - 
 
  • wood and wood products of HS 44, 9401, and 9403 (origin criteria as per the CIS Rules).  
 As at 1 Janu ary 2017, the criteria for sufficient processing in the EAEU, in all EAEU member 
States including the Kyrgyz Republic, were not applied. Thus, goods that are imported into the 
territory of the EAEU from the territory of free warehouses or FEZs are subject to customs duties 
and taxes.  
3.1.3   Tariffs  
The tariff regime of the Kyrgyz Republic has undergone one of the most significant changes 
since it joined the EAEU, as Article  42 of the EAEU Treaty put in place the EAEU Common External 
Tariff (CET) as one of its most  significant trade policy instruments. Upon the Kyrgyz Republic's 
accession, a small number of deviations from the common tariff were allowed for a transition period 
up to end -2019, but the vast majority of changes were immediately implemented in 2015. As a 
result, the Kyrgyz Republic had an overall increase in tariffs during this review period, with many 
tariff rates exceeding WTO commitments, and thus it began the process for renegotiation of its WTO 
schedule.  
3.1.3.1   Applied rates  
The EAEU requires a common regu lation for foreign trade with third countries as well as a 
uniform customs tariff for its members; thus the Unified Customs Tariff (UCT) is the common 
customs tariff that emanated from the Agreement on Creation of the Common Customs Territory 
and Establish ment of the Customs Union of 6 October 2007 and, currently, the EAEU Treaty . EEC 
Board Decision No.  54 of 16 July 2012 sets out the common nomenclature, known as the Foreign 
Economic Activity Commodity Nomenclature (FEACN)51, and the rates of customs duty on imports. 
The UCT is under regular modification and has been amended approximately 75 times since 2016.  
The EAEU's UCT has three basic types of duty rates – ad valorem , specific, and combined, i.e. 
combining ad valorem  and specific components. With the m ove to the EAEU UCT, the structure and 
rates of customs duties for the Kyrgyz Republic have changed significantly since the previous Review 
(Table  3.7 and Chart 3.1). Although the total number of tariff lines is largely comparable, the 
situation otherwise points to a significant deterioration in market access for most-favoured nation 
(MFN) partners as illustrated by a number of parameters. The number of duty -free tariff lines 
declined significantly, from 46.4% in 2012 to 15.5% in 2020. The number of non -ad valorem  tariff 
lines increased significantly, from 1.4% of tariff lines to 13.3% during the same period, and they 
increased in complexity as well. Most take the form of an ad valorem  rate with a "but not less than" 
specific component, which offers less tra nsparency and predictability to traders. Most of these 
non-ad valorem  rates are in the agriculture, textiles, and vehicle sectors. The simple average tariff 
rate increased from 5% to 8.4%, with more significant increases in agricultural tariffs compared wi th 
non-agricultural tariffs. Other barriers were added as well, as the Kyrgyz Republic now applies 
tariff-rate quotas (TRQs) on 1.2% of tariff lines, whereas previously there were none. The percentage 
of lines with tariff peaks increased as well, approxima tely doubling.  
Supreme Eurasian Economic Council Decision  No. 16 of 8 May 2015 designates a list of 
sensitive goods of approximately 5,000 tariff lines in which the EEC has noted competition on the 
EAEU domestic market is the strongest, and therefore suppo rt measures have an important impact.52 
The designation of a product on the sensitive list allows the EAEU to change the rates of import 
customs by the EEC Council by consensus; it also allows member States to inform others in order 
to carry out consultati ons to mutually consider the various positions.  
  
 
51 The FEACN is a 10 -digit code at the tariff -line level based on the World Customs Organization's (WCO) 
Harmonized Commodity Description and Coding System (HS) 6 -digit code. Throughout the report, "HS" is used 
when referring to tariff lines.  
52 Supreme Eurasian Economic Council Decision No.  16 of 8 May 2015 in accordance with EAEU Treaty 
of 29 May 2014, Article  45, para.  2. WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 57 - 
 
  Table 3.7 Structure of the tariff schedule, 2012 and 2020  
(%)  
2012a 2020b 
Total number of tariff lines  10,990  12,135  
Non-ad valorem  tariffs (% of all tariff lines)  1.4 13.3 
Lines subject to tariff quotas (% of all tariff lines)  0.0 1.2 
Duty-free tariff lines (% of all tariff lines)  46.4 15.5 
Dutiable lines tariff average rate (%)  9.4 9.9 
Simple average tariff (%)  5.0 8.4 
  WTO agriculture  8.4 14.1 
  WTO non -agriculture (incl. petroleum)  4.1 6.9 
Domestic tariff "peaks" (% of all tariff lines)c 1.3 2.4 
International tariff "peaks" (% of all tariff lines)d 1.3 4.5 
Overall standard deviation  .. 11.2 
Nuisance applied rates (% of tariff lines)e 0.0 0.4 
Bound tariff lines (% of all tariff lines)  99.9 99.9 
.. Not available.  
a Calculations are based on national tariff -line level, excluding specific duties and including the 
ad valorem  component of the mix ed or compound duties.  
b Ad valorem  equivalents (AVEs) were estimated based on 2018 and 2017 import data at the 10 -digit 
tariff level from the authorities, and on 2018 import data at the 6 -digit level from UN Comtrade. AVEs 
were calculated for 731 tariff lines; however, the calculation of t hree AVEs (pig meat, steel, and 
aluminium cans) resulted in extremely high rates due to the low volumes of trade and thus were 
excluded from the analysis. Where AVEs could not be estimated, the ad valorem  component of the 
mixed or compound duty was taken f or the calculations. Two hundred seventy lines with specific duties 
were excluded from the calculations, as no AVEs could be calculated.  
c Domestic tariff peaks are defined as those exceeding three times the overall average applied rate.  
d International tariff peaks are defined as those exceeding 15%.  
e Nuisance rates are greater than 0% but less than or equal to 2%.  
Note:  All tariff calculations exclude in -quota lines.  
Source:  WTO Secretariat calculations, based on data provided by the au thorities.  
Chart 3.1 Frequency distribution of MFN tariff, 2012 and 2020  
(Number of tariff lines)  
 
Note:  The total number of tariff lines is 10,990 in 2012 and 12,135 in 2020.  
 AVEs are excluded in the 2012 t ariff, while they are included (as available) in the 2020 tariff.  
 The tariffs exclude in -quota rates.  
 The 2012 tariff is composed of six tiers: duty free, 5%, 10%, 12%, 15%, and 20%.  
 Numbers in parentheses represent the share in the total number of ta riff lines.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 58 - 
 
  
Furthermore, there are significant variations in tariff rates and averages among the sectors 
(Table 3.8). The highest tariff protection, according to WTO category,  is for animals and products 
thereof (35%), sugars and confectionery (22%), and clothing (19%). On the other hand, non -electric 
machinery (2.8%) and cotton (0%) have the lowest protection. Nearly all product categories and 
HS sections faced increases in ta riff averages in 2020 compared with 2012, some more than doubling 
(Table 3.8 and WTO document WT/TPR/S/288/Rev.1, Tables 3.7 and A3.1). The sectors, by 
HS section, with the largest increases were wood and articles from 0 to 8.5%, pulp and paper from 
0 to 7 %, footwear and headgear from 9% to 20.2%, and arms and ammunition from 0 to 14.6%. 
One category, works of art, declined from 3% to 0. The overall applied average tariff and many 
product -category averages exceed the bound rate averages (Section s 3.1.3.2  and 3.1.3.3).  
In terms of WTO notifications, the Kyrgyz Republic has not made any recent submissions to 
the WTO Integrated Database of its applied tariffs.  
Table 3.8 Summary analysis of the Kyrgyz Republic MFN tariff, 2020  
Description  MFN Bound  
averagea 
(%) No. of lines  Average  
(%)  Range  
(%)  
Total  12,135  8.4 0-254.8  7.8 
HS 01 -24 3,008  13.2 0-254.8  11.6 
HS 25 -97 9,127  6.8 0-221.7  6.5 
By WTO category  
WTO agriculture  2,553  14.1 0-228.2  11.8 
 - Animals and products thereof  412 35.5 0-149.8  10.7 
 - Dairy products  161 15.1 5-36.6 11.5 
 - Fruit, vegetables and plants  565 8.7 0-29.9 15.6 
 - Coffee and tea  74 9.9 0-119.3  9.5 
 - Cereals and preparations  243 11.1 0-228.2  12.4 
 - Oil seeds, fats and oils and their products  200 7.5 0-30 11.5 
 - Sugars and confectionery  130 22.2 3.7-119.6  5.2 
 - Beverages, spirits and tobacco  458 11.4 0-115.9  11.6 
 - Cotton  6 0.0 0 10.0 
 - Other agricultural products , n.e.s.  304 4.8 0-10.9 10.1 
WTO non -agriculture (incl. petroleum)  9,582  6.9 0-254.8  6.7 
 - WTO non-agriculture (excluding petroleum)  9,504  6.9 0-254.8  6.6 
 - - Fish and fishery products  605 7.3 0-254.8  10.1 
 - - Minerals and metals  1,770  7.5 0-123.6  4.8 
 - - Chemicals and photographic supplies  1,459  4.6 0-10 5.4 
 - - Wood, pulp, paper and furniture  630 8.2 0-50.6 0.7 
 - - Textiles  887 8.7 0-130.8  8.8 
 - - Clothing  361 19.5 1.6-134.4  11.9 
 - - Leather, rubber, footwear and travel goods  339 9.7 0-221.7  9.3 
 - - Non-electric machinery  1,284  2.8 0-15 6.6 
 - - Electric machinery  609 4.4 0-31.6 6.4 
 - - Transport equipment  786 9.5 0-20 9.2 
 - - Non-agriculture articles, n.e.s.  774 6.9 0-20 6.9 
 - Petroleum  78 4.6 0-5 9.6 
By ISIC sectorb 
Agriculture and fisheries  779 6.1 0-30 10.0 
Mining  130 4.5 0-15 9.4 
Manufacturing  11,225  8.6 0-254.8  7.6 
By HS section  
 01 Live animals & products  1,109  17.7 0-149.8  10.8 
 02 Vegetable products  616 7.5 0-30 13.5 
 03 Fats & oils  151 9.1 0-30 12.6 
 04 Prepared food , etc. 1,132  12.3 0-254.8  11.3 
 05 Minerals  281 4.4 0-10 9.4 
 06 Chemical & products  1,333  4.5 0-10 5.4 
 07 Plastics & rubber  365 5.7 0-16.8 7.6 
 08 Hides & skins  218 5.6 0-15 8.5 
 09 Wood & articles  352 8.5 0-14 1.0 
 10 Pulp, paper etc.  223 7.0 0-14 0.0 
 11 Textile & articles  1,211  10.9 0-134.4  9.7 
 12 Footwear, headgear  115 20.2 0-221.7  10.0 
 13 Articles of stone  299 11.0 0-15 9.7 
 14 Precious stones, etc.  83 16.4 0-123.6  10.0 
 15 Base metals & products  1,176  6.6 0-15 2.4 
 16 Machinery  1,975  3.4 0-31.6 6.5 
 17 Transport equipment  805 9.5 0-20 9.2 WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 59 - 
 
  Description  MFN Bound  
averagea 
(%) No. of lines  Average  
(%)  Range  
(%)  
 18 Precision equipment  359 4.9 0-15 5.3 
 19 Arms and ammunition  24 14.6 12-15 15.0 
 20 Miscellaneous manufacturing  301 9.7 0-50.6 7.1 
 21 Works of art, etc.  7 0.0 0 14.3 
a Nine unbound lines  are excluded from the calculations.  
b SIC (Rev.2) classification, excluding electricity (1 line).  
Note:  All tariff calculations exclude in -quota lines.  
 Ad valorem  equivalents (AVEs) were estimated based on 2018 and 2017 import data at the 10 -digit 
tariff level from the authorities, and on 2018 import data at the 6 -digit level from UN Comtrade.  
 AVEs were calculated for 731 tariff lines; however, the calculation of three AVEs (pig meat, steel, and 
aluminium cans) resulted in extremely high rates due to th e low volumes of trade and thus were 
excluded from the analysis. Where AVEs could not be estimated, the ad valorem  component of the 
mixed or compound duty was taken for the calculations. Two hundred seventy lines with specific duties 
were excluded from the  calculations, as no AVEs could be calculated.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.1.3.2   Bound rates  
The bound rates of the Kyrgyz Republic still largely reflect its commitments in its Protocol of 
Accession when it a cceded to the WTO in 1998.53 Since that time, there have been minor 
modifications to implement changes to tariff nomenclature, as a result of the changes to the HS 
introduced by the WCO at periodic intervals, i.e. for the HS02 and HS07 changes for the 
Kyrgyz  Republic.54 The HS 12 and HS17 changes were incorporated in the UCT, but the Kyrgyz bound 
schedule was not modified accordingly, and thus these remain in disaccord and the Kyrgyz Republic 
is not covered by the WTO HS12 nor HS17 waivers.55 The average level of bound tariffs remains 
unchanged compared with that in the previous Review (7.8%), and the Kyrgyz Republic's bound 
tariff average remains low compared with those of most other WTO Members. According to the tariff 
summary tables of the WTO's World Trade Report 2019, the Kyrgyz Re public had the 15th lowest 
average of bound tariffs among WTO Members. Although the overall average of bound tariffs is 
7.8%, there is significant variation between sectors.56 The pulp and paper sector has bound rates at 
zero, i.e. the lowest average, whil e arms and ammunition has the highest bound average at 
15% (Table 3.8). The agricultural sector also has relatively high bound rates compared with other 
sectors, i.e. above 10% on average. All other duties and charges in the Kyrgyz Republic's schedule 
are bound at zero.  
It was recognized at the time of joining the customs union that adjustments would need to 
be undertaken at the WTO to modify the Kyrgyz Republic's tariff commitments. Thus, the Protocol 
on the Conditions and Transitional Provisions on the Ap plication by the Kyrgyz Republic of the EAEU 
Treaty of 29 May 2014, Separate International Treaties Incorporated into the Law of the EAEU, and 
the Acts of the Bodies of the EAEU due to the Accession of the Kyrgyz Republic to the EAEU Treaty 
of 29 May 2014 (Protocol on Transitional Provisions) sets certain principles in this respect.57 First, 
the commitments contained in the Protocol of Accession of the Kyrgyz Republic do not become the 
commitments of other EAEU member States; second, negotiations for amendi ng its WTO 
commitments would be carried out by an authorized delegation set out in directives of the EEC 
Council; third, agreements reached on renegotiation would be approved by the EEC Council before 
their final adoption at the WTO; and last, in terms of trade of goods and services, and treatment of 
investment, the Kyrgyz Republic will apply a regime with EAEU member States no less favourable 
than it does with WTO Members through its commitments in its Protocol of Accession.  
On 1 April 2015, the Kyrgyz Rep ublic notified the WTO pursuant to Article  XXIV:6 of  the GATT 
1994 of its intent to modify concessions contained in Schedule CXLII – Kyrgyz Republic within the 
 
53 WTO document WT/ACC/KGZ/26/Add.1 and Corr.1, 29 September 1998.  
54 WTO documents WT/Let/604 , 7 December 2007; and WT/Let/1008, 28 November 2014.  
55 WTO documents WT/L/1084, 2 October 2015; and WT/L/1085, 7 October 2015.  
56 The 7.8% is calculated using the methodology for TPR reports, which varies slightly compared with 
the methodology used in the World Trade Report , resulting in a slightly different figure (7.5%).  
57 EEC, Protocol on Transitional Provisions . Viewed at: https://docs.eaeunion.org/docs/ru -
ru/0147703/itia_1205201 5.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 60 - 
 
  framework of the procedures in Article  XXVIII of the GATT 1994.58 The notification contained the  
necessary list of products and related statistics; 3,714 tariff lines were submitted for renegotiation, 
i.e. about 31% of all tariff lines. As at April 2020, the negotiations had not been finalized, and the 
schedule of the Kyrgyz Republic remains unchange d. According to a status report of 
Article  XXVIII  renegotiations by the Secretariat in March 2020, there were six claims of interest on 
record by other WTO Members, no conclusion of bilaterals or final reports, and the status of the 
negotiations was "ongoi ng".59  
3.1.3.3   Applied rates that exceed the bound rates  
A comparison of the bound and applied rates was undertaken, as there were many applied 
rates that were raised as a result of acceding to the customs union, and the data indicate they are 
above the WTO bindi ngs. As shown (Table 3.9), a significant number, 3,880 tariff lines, exceed their 
respective WTO bound rate of duty, i.e. about one third of all tariff lines. Their distribution is not 
uniform throughout the tariff schedule, as certain sectors are more or less impacted. Prepared 
foodstuffs, base metals, and vehicles are the ones most affected. On the other hand, mineral 
products, plastics, and raw hides and skins are minimally affected, with arms and ammunition and  
works of art not impacted at all (Table 3. 9). Also, the Kyrgyz Republic now imposes quantitative 
measures through TRQs, which are not part of its bound commitments.60 
Table 3.9 Tariff lines where the UCT is greater than the bound tariff, by HS section and 
product group (WTO definition), 2020  
(Number of tariff lines and %)   
No. of  
lines 
exceeding  
the bound 
rates  Share of tariff 
lines  
Total tariff  3,880  32.0 
HS sections    
1 - Live animals; animal products  363 32.7 
2 - Vegetable products  39 6.3 
3 - Animal or vegetable fats and oils; prepared edible fats  44 29.1 
4 - Prepared foodstuffs; beverages, spirits and vinegar; tobacco  513 45.3 
5 - Mineral products  6 2.1 
6 - Products of the chemical or allied industries  137 10.3 
7 - Plastics and articles thereof; rubber and articles thereof  8 2.2 
8 - Raw hides and skins, leather, fur skins and articles thereof; travel goods, 
handbags; articles of animal gut  25 11.5 
9 - Wood and articles of wood; wood charcoal; cork and articles of cork  314 89.2 
10 - Pulp of wood or of other fibrous cellulosic material; paper and paperboard 
and articles thereof  207 92.8 
11 - Textiles and textile articles  222 18.3 
12 - Footwear, headgear, umbrellas; prepared feathers and articles; artificial 
flowers  67 58.3 
13 - Articles of stone, plaster, cement, etc.; ceramic products; glass and 
glassware  174 58.2 
14 - Natural or cultured pearls, precious or semi -precious stones,  
precious metals  66 79.5 
15 - Base metals and articles of base metal  874 74.3 
16 - Machinery and mechanical appliances; electrical equipment;  
television image and sound recorders  224 11.3 
17 - Vehicles, aircraft, vessels and associated transport equipment  329 40.9 
18 - Optical, photographic, precision, medical or surgical instruments; clocks and 
watched; musical instruments  103 28.7 
19 - Arms and ammunition  0 0.0 
20 - Miscellaneous manufactured articles  165 54.8 
21 - Works of art, collectors' pieces and antiques  0 0.0 
Product groups    
WTO agriculture  903 35.4 
 - Animals and products thereof  282 68.4 
 - Dairy products  111 68.9 
 - Fruit, vegetables  and plants  69 12.2 
 - Coffee and tea  36 48.6 
 
58 WTO document G/SECRET/38, 16 April 2015 . 
59 WTO document G/MA/W/123/Rev.6, 6 March 2020 . 
60 These have not been included in the Kyrgyz Republic's Article XXVIII submission.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 61 - 
 
   
No. of  
lines 
exceeding  
the bound 
rates  Share of tariff 
lines  
 - Cereals and preparations  62 25.5 
 - Oil seeds, fats and oils and their products  44 22.0 
 - Sugars and confectionery  34 26.2 
 - Beverages, spirits and tobacco  264 57.6 
 - Cotton  0 0.0 
 - Other agricultural products, n.e.s.  1 0.3 
WTO non -agriculture (incl. petroleum)  2,977  31.1 
 - Fish and fishery products  56 9.3 
 - Minerals and metals  1,104  62.4 
 - Chemicals and photographic supplies  124 8.5 
 - Wood, pulp, paper  and furniture  574 91.1 
 - Textiles  134 15.1 
 - Clothing  123 34.1 
 - Leather, rubber, footwear and travel goods  67 19.8 
 - Non-electric machinery  143 11.1 
 - Electric machinery  79 13.0 
 - Transport equipment  323 41.1 
 - Non-agriculture articles, n.e.s.  248 32.0 
 - Petroleum  2 2.6 
Source:  WTO Secretariat calculations, based on data provided by the authorities and the WTO Consolidated 
Tariff Schedules (CTS) database.  
3.1.3.4   Temporary measures  
As part of the transition measures agreed to upon joining the customs union, 
the Kyrgyz  Republic was allowed to deviate from the UCT rates for a limited number of tariff lines 
for a set period of time.61 This was known as the list of exemptions for the Kyrgyz Republic 
(Table A3.1). Total deviations were initially authorized on 166 tariff lines from 12 August 2015 until 
31 December 2019 at the latest, at which time all tariffs reverted to the UCT rates. In accordance 
with the Protocol of 14 April 2020 on Amending the Proto col on Accession of the Kyrgyz Republic, 
these deviations from the UCT were extended from 1 January 2020 to 31 December 2020 with some 
modifications to the list of exemptions, after which (i.e. from 1 January 2021) the Kyrgyz Republic 
is expected to apply the rates of import customs duties of the EAEU in full.62 In the vast majority of 
cases, the temporary rates were lower than the UCT, mostly at zero, and lasted for the initial 
transition period 2015 -19. The temporary rates were mainly in the pharmaceutica l, machinery, and 
vehicle sectors (Table 3.10).  
The list of exemptions was not applicable to all importers; rather, the reduced rates of 
customs duties were applicable, provided that the declarant of these goods was included in the 
corresponding list of o rganizations and persons submitted annually by the Kyrgyz Republic to the 
Commission, and also subject to confirmation of the designated purpose of the imported goods by 
the authorized body of the Kyrgyz Republic.63 The Kyrgyz Republic enacted Government R esolution 
No. 162 of 15 May 2017 to enable it to provide information to the Commission on the list of persons 
and organizations entitled to import goods according to the list of exemptions.64 
 
61 EEC, EEC Board Decision No.  68 of 30 June 2015 on Goods and Rates for which During the Transition 
Period the Kyrgyz Republic Applies Import Customs Duty Rates Different fro m the Duty Rates Established in 
the Common Customs Tariff of the Eurasian Economic Union, as amended. Viewed at: 
http://eec.eaeunion.org/ru/act/trade/catr/ttr/Documents/%D0%98%D0%97%D0%AA%D0%AF%D0%A2%D0
%98%D0%AF%20%D0%9A%D0%A0%20%D0%BD%D0%B0%2001.09.2019.p df; EAEU Treaty and the 
Protocol on the Conditions and Transitional Provisions, Article 42, para. 6; and Protocol on the Accession of the 
Kyrgyz Republic to the EAEU Treaty of 29 May 2014.  
62 EEC, EEC Board Decision No.  61 of 28 April 2020 makes certain mod ifications to the original list of 
exemptions.  
63 EEC, EEC Board Decision No.  68 of 30 June 2015, Annex, Note 2.  
64 State Tax Service, Government Resolution No.  162 of 15 May 2017, para.  2. Viewed at: 
http://www.sti.gov.kg/docs/default -source/ppkr/jobo20171702n109kg.pdf?sfvrsn=2 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 62 - 
 
  
Another set of transitional measures provides, or provided, for the exemption of customs 
duties on certain products under the conditions outlined below. All of these special exemptions are, 
or were, subject to special import procedures:  
• Military goods for the Armed Forces for the period 2015 -22 on the condition that they are 
not produced in the territory of the EAEU and are imported pursuant to a request from the 
Ministry of Defense;  
• Certain aviation goods65 used for domestic or internati onal transport for transport in the 
Kyrgyz Republic and/or between EAEU member States until 31 December 2022; and  
• A measure that expired at the end of 2016 on certain plastic articles in Chapter 39 of the 
HS66, pursuant to quantitative limits, i.e. quotas .67 
Table 3.10 Summary of temporary deviations from the UCT, 2015 -19a 
HS chapter  No. of tariff lines  Applicable ratesb Applicable end date  
05 2 0 2020 
06 1 0 2020 
07 2 0 2020 
10 2 0 2020 
21 1 0 2020 
23 2 0 2020 
28 1 0c 2017 
29 2 0c 2020 
30 36 0 2020 
32 1 0c 2020 
33 1 0c 2020 
36 3 0 2020 
38 10 0 2020 
39 12 0 2017 and 2020  
40 1 0 2020 
72 4 0c 2020 
73 4 0c 2020 
74 2 0 2020 
75 1 0 2020 
76 11 0c 2020 
81 2 0c 2018 
84 21 0 or 10c 2017 and 2020 
85 3 0 2016 and 2020  
87 35 0 or 10  2018 and 2020  
90 5 0 2020 
94 1 0 2020 
a  Many of the temporary deviations were extended and remained in place in 2020 but, due to the 
change in coverage, a second analysis was not performed.  
b Import customs duty rate (as a percentage of customs value, either in euros or US dollars). The 
rates of import customs duties are applied from January 1 of the specified calendar year; in 2015, 
the rate was applied from the date of adoption by the Supreme Eurasi an Economic Council of the 
decision on cancellation of customs control of goods and vehicles transported through the 
Kyrgyz -Kazakh section of the state border.  
c The rate of import customs duty is applied, provided that the declarant of the goods is includ ed in 
the relevant list of organizations and persons submitted annually to the EEC by the Kyrgyz Republic, 
and also subject to submission to the customs body of the EAEU member State confirmation of the 
intended purpose of the imported goods.  
Source:  Comp iled by the Secretariat from the Protocol on Transitional Provisions.  
Another set of temporary measures is identified in the UCT, whereby approximately 200  tariff 
lines were given lower or duty -free status (Table 3.11). Most of these temporary rates are fo r raw 
 
65 HS ex8802 11 000 1, ex8802 12 000 1, ex8802 20 000 1, ex8802 40 003 9, ex8802 40 009 7, 
ex8802 40 003 5, and ex8802 40 003 6, as define d in the Protocol on Transitional Provisions, Annex 1, 
Section  V, para. 46.  
66 HS 3920 10 250 0 in an amount of not more than 820 tonnes per year, 3920 20 210 0 in an amount 
not more than 75 tonnes per year, and 3923 30 101 0 CNFEA in an amount not more th an 200 tonnes per 
year. 
67 Protocol on Transitional Provisions, Annex 1, Section V, Articles 44 -46. WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 63 - 
 
  hides and skins, although they are present throughout the tariff schedule on a variety of products. 
These measures emanate from Articles 42, 43, and 45 of the EAEU Treaty and its Annex  6, whereby, 
following consideration of proposals from EAEU member  States, exemptions from import customs 
duties can be put in place. Prior to the entry into force of the EAEU Treaty, these or similar tariff 
exemptions were in place pursuant to the Protocol on the Terms and Conditions of Application in 
Exclusive Cases of  Rates of Import Customs Rates Different from Rates of the CCT of 
12 December  2008.  
Table 3.11 Temporary duty rates, 2018 -20 
 
2018  2019  2020  
Number of temporary rates  178 196 168 
Distribution by HS section (number of lines):     
1 - Live animals; animal products  8 10 3 
2 - Vegetable products  2 2 1 
4 - Prepared foodstuffs; beverages, spirits and vinegar; tobacco  1 5 6 
5 - Mineral products  4 4 3 
6 - Products of the chemical or allied industries  21 22 13 
7 - Plastics and articles thereof; rubber and articles thereof  7 6 5 
8 - Raw hides and skins, leather, fur skins and articles thereof; travel 
goods, handbags; articles of animal gut  88 88 88 
9 - Wood and articles of wood; wood charcoal; cork and articles  
of cork  1 1 - 
10 - Pulp of wood or of other fibrous cellulosic material; paper and 
paperboard and articles thereof  - 1 1 
11 - Textiles and textile articles  2 5 4 
13 - Articles of stone, plaster, cement, etc.; ceramic products; glass and 
glassware  1 1 - 
14 - Natural or cultured pearls, precious or semi -precious stones, precious 
metals  5 8 12 
15 - Base metals and articles of base metal  1 1 2 
16 - Machinery and mechanical appliances; electrical equipment; television 
image and sound recorders  12 19 14 
17 - Vehicles, aircraft, vessels and associated transport equipment  14 12 7 
18 - Optical, photographic, precision, medical or surgical instruments; 
clocks and watched; musical instruments  11 11 9 
Number of lines with temporary rate of 0%  168 184 160 
MFN average of lines with 0% temporary rate (%)  5.40 5.75 5.83 
Number of lines with a temporary rate of 5%  7 9 8 
MFN average of lines with 5% temporary rate (%)  9.43 8.72 9.81 
Number of lines with a temporary rate of 12.1%  3 3 - 
MFN average of lines with 12.1% temporary rate (%)  10.00  10.00  - 
- None.  
Note:  Three lines have a temporary rate of "17% or 12.1%, but not less than 1.14 euro per 1 cm3". The 
rate of 12.1% was considered for the calculations. Recording of a temporary rate in a year is not 
based on its duration, but on whether it is in effect at some point during the year or over several 
years. For example, a temporary rate from 1 -30 September is recorded in 2018, and a temporary 
rate from 1  September 2018 to 30 June 2020 is recorded in 2018, 2019, and 2020.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
As a result of the COVID -19 pandemic, the EAEU took a decision on 24 March 2020 to add 
paragrap h 7.1.33 to the Unified Customs and Tariff Regulation on temporary import relief for certain 
critically imported goods, e.g. mainly food, medical, and baby products.68 This removed all customs 
duties on these products until 30 June 2020.69 
The EAEU Treaty provides, in paragraph 5 of Article 42, for the possibility of establishing 
seasonal customs duties, if necessary, for the operational regulation of the import of goods into the 
customs territory of the EAEU. The validity period of seasonal customs duties cannot exceed 
six months, and they are subject to a special payment instead of the normal customs duties of the 
 
68 These goods include potatoes, onions, garlic, cabbage, carrots, pepper, certain juices, baby food, 
sugar, certain protein concentrates, certain chemical an d pharmaceutical products, endoscopes, and baby 
diapers.  
69 EEC, EEC Board Regulation No.  47 of 24 March 2020 on EEC Council Decision on Amendments to 
Some Decisions of the Commission of the Customs Union and on the Approval of the List of Critical Import 
Goods. Viewed at: https://docs.eaeunion.org/docs/en -us/01025269/err_27032020_47 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 64 - 
 
  Common Customs Tariff (CCT) of the EAEU. At present, seasonal duties are applied only as 
established in the CCT of the EAEU (depending on the ti me of year, different rates of duty may be 
charged, e.g. on tomatoes).  
3.1.3.5   Tariff -rate quotas (TRQs)  
The Kyrgyz Republic historically has not had any TRQs since its accession to the WTO in 1998. 
In its Protocol of Accession to the WTO, the Kyrgyz Republic stat ed that it "maintained no tariff 
quotas and did not intend to introduce tariff rate quotas in the future. Any tariff rate quotas 
introduced in the future would be operated in conformity with the relevant WTO provisions, including 
Article XIII:5 of the GATT  1994".70 The EAEU CET regime allows for TRQs in the member States; the 
volumes are adjusted on an annual basis with differing volumes attributed to each EAEU member 
State.71 As at 2020, three MFN TRQs were in place. There is also a transitional measure al lowing for 
a preferential tariff on a specific volume of sugar imported into the Kyrgyz Republic.72 TRQs can also 
be established pursuant to FTAs; at present, there is a TRQ on long -grain rice from Viet  Nam at the 
level of the customs union.73  
The Kyrgyz Republic's TRQs pertain to meat products (beef, pork, and poultry) and offer 
varying reductions from the out -of-quota rates (Table 3.12) (see also Section 4.1.1.1.1 on TRQs and 
administration). The preferential tariff on 100,000 tonnes annually of r aw cane sugar for industrial 
processing was a transitional measure from 8 May 2015 until 8 May 2020, pursuant to the Protocol 
on Transitional Provisions. The quota had other conditions such as it needed to be confirmed by an 
authorized body of the Kyrgyz R epublic that the sugar is for industrial processing and that no exports 
of the raw or processed sugar would enter other EAEU member States. The FTA with Viet  Nam 
establishes an overall quota of 10,000 tonnes annually on long -grain rice  for the customs unio n. 
Similar to the MFN quotas, the quota is assigned to EAEU member States. In accordance with EEC 
Board Decision No.  163 of 17 September 2019, the specified volume is distributed for 2020 between 
Armenia, Belarus, and the Russian Federation; thus, no quota  was assigned to the Kyrgyz Republic 
during this period.   
Article  44 and Annex 6 to the EAEU Treaty provide the basic framework for TRQs for the 
customs union. The EAEU allows TRQs to be established in respect of third countries if like goods 
are produced in the territory of the EAEU. The Annex further specifies that TRQs cannot be 
established if the production volume of the like product in the EAEU is equal to or exceeds the 
consumption in the EAEU. TRQs are to be established for a specific period of time,  and all interested 
third countries should be informed of the quota volumes if distributed among them. For the EAEU 
member States, quota volumes are distributed according to the difference between production and 
consumption or, in the case of WTO membershi p, in respect of their WTO commitments.  
Table 3.12 Products subject to TRQs, 2020  Description  
HS 4 -digit level  HS at the tariff -line level  Duty  
Quota 
volume  
('000  
tonnes)  
In quota  Out-of-
quota  
Cattle meat, 
fresh, chilled or 
frozen  0201, 0202  0201100001; 0201202001; 
0201203001; 0201205001; 
0201209001; 0201300004; 
0202100001; 0202201001; 
0202203001; 0202205001; 
0202209001; 
0202301004;0202305004; 
0202309004  15% 50%, but at 
least 1 euro 
per 1 kg  5.0 
Fresh, chilled or 
frozen pork, 
including pork 
trimming  0203 0203111001; 0203119001; 
0203121101; 0203121901; 
0203129001; 0203191101; 
0203191301; 0203191501; 0% 65%/25%  3.5 
 
70 WTO document WT/ACC/KGZ/26, 31 July 1998.  
71 EAEU Treaty, Article 44; and EEC Board Decision No.  127 of 31 July 2019.  
72 A quota category for whey and modified whey is established by the EAEU, but in 2020 there were no 
volumes established. EEC Board Decision No.  127 of 31 July 2019.  
73 Free Trade Agreement between the Eurasian Economic Union and its Me mber States, of the One Part, 
and the Socialist Republic of Viet Nam, of the Other Part, 29 May 2015; and EEC, EEC Board Decision No.  163 
of 17 September 2019. Viewed at: https://docs.eaeunion.org/docs/en -us/01425813/clcd_19092019_163 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 65 - 
 
  
Description  
HS 4 -digit level  HS at the tariff -line level  Duty  
Quota 
volume  
('000  
tonnes)  
In quota  Out-of-
quota  
0203195501; 0203195901; 
0203199001; 0203211001; 
0203219001; 0203221101; 
0203221901; 0203229001;  
0203291101; 0203291301; 
0203291501; 0203295501; 
0203295502; 0203295901; 
0203299001; 0203299002  
Meat and food 
by-products of 
poultry listed in 
product 
position 0105, 
fresh, chilled or 
frozen  0207 0207141001  25% 80% 58.0 
  
0207144001; 0207149901; 
0207271001  25%, but 
at least 
0.2 euros 
per 1 kg  80%  
  
0207111001; 0207113001; 
0207119001; 0207121001; 
0207129001; 0207131001; 
0207543101; 0207544101; 
0207132001; 0207133001; 
0207134001; 0207135001; 
0207136001; 0207137001; 
0207139101; 0207139901; 
0207142001; 0207143001; 
0207145001; 0207146001; 
0207147001; 0207149101; 
0207241001; 0207249001; 
0207251001; 0207259001; 
0207261001; 0207262001; 
0207263001; 0207264001; 
0207265001; 0207266001; 
0207267001; 0207268001; 
0207269101; 0207269901; 
0207272001; 0207273001; 
0207274001; 0207275001; 
0207276001; 0207277001; 
0207278001; 0207279101; 
0207279901; 02074120 01; 
0207413001; 0207418001; 
0207423001; 0207428001; 
0207430001; 0207441001; 
0207442101; 0207443101; 
0207444101; 0207445101; 
0207446101; 0207447101; 
0207448101; 0207449101; 
0207449901; 0207451001; 
0207452101; 0207453101; 
0207454101; 0207455101; 
0207456101; 0207457101; 
0207458101; 0207459301; 
0207459501; 0207459901; 
0207511001; 0207519001; 
0207521001; 0207529001; 
0207530001; 0207541001; 
0207542101; 0207543101; 
0207544101; 0207545101; 
0207546101; 0207547101; 
0207548101; 0207549101; 
0207549901; 0207551001; 
0207552101; 0207553101; 
0207554101; 0207555101; 
0207556101; 0207557101; 
0207558101; 0207559301; 
0207559501; 0207559901; 
0207600501; 0207601001; 
0207602101; 0207603101; 
0207604101; 0207605101; 
0207606101; 0207608101; 
0207609101; 0207609901  25%, but at 
least 0.2  euros 
per 1 kg  80%, but 
at least 
0.7 euros 
per 1 kg   WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 66 - 
 
  
Description  
HS 4 -digit level  HS at the tariff -line level  Duty  
Quota 
volume  
('000  
tonnes)  
In quota  Out-of-
quota  
Raw cane sugar 
for industrial 
processinga 1701 170113; 170114  0% USD 140-
USD 250 per 
1,000 kg  100 
a Transitional measure applicable until 8 May 2020.  
Source:  Information provided by the authorities; Protocol on Transitional Provisions, Annex 1, Section  V, 
Article  44; and EEC, EEC Board Decision No.  127 of 31 July 2019. Viewed at: 
https://docs.eaeunion.org/docs/en -us/01222607/clcd_02082019_127 .  
3.1.3.6   Preferential tariffs  
As a member of the EAEU, the Kyrgyz Republic has a preferential tariff regime that is also 
largely determined by the customs union and its agreements with third countries.  
The Kyrgyz  Republic's preferential trade with Armenia, Belarus, Kazakhstan, the Republic of 
Moldova, the Russian Federation, Tajikistan, Ukraine, and Uzbekistan pre -date the customs union, 
i.e. from 2011 pursuant to the CIS Free Trade Area Agreement.74 A 1994 agreement among the CIS 
(amended in 1999) resulted in preferential trade with Georgia and Turkmenistan.75 The preferential 
tariffs among these parties are therefore the same and remain unchanged. There are few 
restrictions, as 98% of tariff lines are duty-free (Table  3.13). The few remaining tariffs, 
approximately 200 tariff lines, are mainly on certain agricultural products, fish, chemicals, fur skins, 
pearls, and nuclear reactors.  
The free trade agreement s with Viet  Nam and the Islamic Republic of Iran are more recent 
and were negotiated by the customs union. As such, the number of duty -free lines is fewer, and 
average tariffs applied are higher compared with those in the earlier FTAs (Table 3.13). The Iran 
FTA has only slightly lower average rates t han the MFN rates, as only 502 tariff lines have 
preferences due to it being an interim agreement leading to formation of a free trade area. 
Approximately 42% of the tariff lines covered a zero rate of duty, and the remaining 58% have 
reduced duties rangin g from 2% to 18%.76  
Pursuant to Article  36 of the EAEU Treaty and EEC Council Decision No.  47 of 6 April 2016, a 
unified system of tariff preferences is applied by all EAEU member States.77 The EAEU has a 
preferential tariff programme, the CSTP, with two levels of preferences, one for developing counties, 
based on the GSP principles established by UNCTAD, and another for LDCs.78 The EAEU Treaty 
 
74 Ministry of Economy, Law No.  212 of 9 December 2013 Implementing the Free Trade Area 
Agreement. Viewed at: 
http://mineconom.gov.kg/froala/uploads/file/cec9fcab37fb45c5551b08d83293822f4071217c.rtf .  
75 Ministry of Economy, Agreement of 15 April 1994 on Creating a Free Trade Area. Viewed at: 
http://mineconom.gov.kg/froala/uploads/file/aa4a9cedfcb384dcec7555f04f6cf779c7990177.rtf .  
76 This only takes into consideration ad valorem  rates of duty. Commission Board Decision No.  10 of 
22 January 2019  on Preferential Rates of Import Customs Duties in Respect of Goods Originating from the 
Islamic Republic of Iran and Imported to the Territory of the Eurasian Economic Union, which entered into force 
on 27 October 2019.  
77 EEC, EAEU Treaty. Viewed at: https://docs.eaeunion.org/Pages/DisplayDocument.aspx?s=bef9c 798-
3978-42f3-9ef2-d0fb3d53b75f&w=632c7868 -4ee2-4b21-bc64-1995328e6ef3&l=540294ae -c3c9-4511-9bf8-
aaf5d6e0d169&EntityID=3610 ; and EEC Council Decision No.  47 of 6 April 2016. Viewed at:  
http://www.eurasiancommission.org/en/act/trade/dotp/commonSytem/Documents/%d0%9f%d0%be%d0%bb
%d0%be%d0%b6%d0%b5%d0%bd%d0%b8%d0%b5%20%d0%95%d0%a1%d0%a2%d0%9f_eng.pdf .  
78 EEC Council Decision No.  8 of 13 January 2017, as amended, provides the list of eligible  goods. 
Viewed at: 
http://www.eurasiancommission.org/en/act/trade/dotp/commonSytem/Documents/%d0%9f%d0%b5%d1%80
%d0%b5%d1%87%d0%b5%d0%bd%d1%8c%20%d0%bf%d1%80%d0%b5%d1%84%d0%b5%d1%80%d0
%b5%d0%bd%d1%86%d0%b8%d0%b0%d0%bb%d1%8c%d0%bd%d1%8b%d1%85%20%d1%82%d0%be
%d0%b2%d0%b0%d1%80%d0%be%d0%b2%20%28%d0%bf%d0%be%20%d1%81%d0%be%d1%81%d1
%82%d0%be%d1%8f%d0%bd%d0%b8%d1%8e%20%d0% bd%d0%b0%2005.06.20%29%20 -%20eng.pdf . 
The Decision was amended by EEC Council Decisions No.  44 of 23 June 2017; No.  47 and No.  53 of 
22 August  2017; No.  103 of 20 December 2017; No.  52, No.  53, and No.  54 of 14 June 2018; No.  65 of 
13 July 2018; No.  77 of 8 August 2019; No.  86 of 30 September 2019; No.  30 of 16 March 2020; and No.  42 
of 29 April 2020.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 67 - 
 
  specifies duty rates of 75% of the import custo ms duties of the UCT for preferential goods from 
developing countries and duty -free treatment for LDCs.  The list of goods eligible for tariff preferences 
was approved by EEC Council Decision No.  8 of 13 January 2017.  The EAEU provides preferential 
GSP tari ff treatment to 103 countries or territories.79 Viet Nam and the Islamic Republic of Iran 
continue to be included in list of developing beneficiary countries. About 20% of tariff lines have GSP 
preferences, and the vast majority are agricultural and fisher ies products. A Decision of the Customs 
Union from 2009, as amended, designates 50 LDC beneficiaries for preferential tariff treatment.80 
They benefit from duty -free and quota -free preferential access on about 62% of total tariff lines.81 
The preferential access is concentrated in the chemicals, fish, and agriculture sectors.  
Table 3.13 Analysis of preferential tariffs, 2020  
Partners a  
WTO categories   
Total  Agricultural products  Non-agricultural 
products  
(excluding petroleum)   
Average 
(%) Duty -free 
lines (%)  Average 
(%) Duty -free 
lines (%)  Average 
(%) Duty -free 
lines (%)  
MFN 8.4 15.5 14.1 5.7 6.9 18.1 
CIS members FTAd 0.1 98.4 0.1 98.6 0.1 98.4 
Iran, Islami c Rep. of 6.3 16.9 8.6 7.1 5.9 19.6 
Viet Nam  2.7 77.1 6.8 65.1 1.6 80.1 
GSP 7.9 15.5 12.6 5.7 6.7 18.1 
GSP, preferential 
lines onlyb 7.1 0.0 8.0 0.0 5.8 0.0 
LDCs 5.2 60.1 7.1 71.7 4.7 56.7 
LDCs, preferential 
lines onlyc 0.0 44.6 0.0 13.9 0.0 30.7 
a Free trade agreements are also in place with respect to the Republic of Moldova, Tajikistan, and 
Ukraine , but no preferential tariff data w ere available for analysis.  
b Those calculations are based on 2,532 tariff lines with a preferential duty and exclude the lines 
where MFN applies.  
c Those calculations are based on 5,4 15 tariff lines with a preferential duty and exclude the lines 
where MFN applies.  
d The average duties and duty -free lines on agriculture products for Georgia slightly differ compared 
to other CIS cou ntries ; they are 0.2% and 98.2% , respectively.  
Note:  In cases where the preferential tariff is higher than the MFN tariff, the MFN tariff is used to calculate 
the averages. Averages include AVEs when available; when not available, the ad valorem  part of 
compound or mixed duties is taken.  
Source:  WTO Secreta riat calculations, based on the WTO IDB database.  
3.1.4   Other charges affecting imports  
Since joining the customs union, the Kyrgyz Republic has also faced new developments in the 
area of indirect taxes, in particular on how they are collected within the EAEU. I ndirect taxes, i.e. 
excise taxes and VAT, are levied by the tax authorities of the member State into whose territory the 
goods are imported, unless otherwise provided by the legislation of that member State (i.e. certain 
goods subject to excise stamp).82 Article 71 of the EAEU Treaty sets out that member States in 
mutual trade shall collect taxes, other charges, and payments so that taxation in the member State 
in which territory the goods of other member States are sold is no less favourable than the taxat ion 
applied by this member State under similar circumstances. There was increasing coordination on the 
collection of indirect taxes within the customs union, so that indirect taxes on imports into 
the Kyrgyz  Republic from another EAEU member State are levi ed and collected by the Kyrgyz tax 
authorities, at the place of registration of the taxpayer, pursuant to the rules outlined in Annex 18  to 
 
79 EEC Council Decision No.  130 of 27 November 2009. Viewed at:  
http://www.eurasiancommission.org/en/act/trade/dotp/commonSytem/Documents/%d0%9f %d0%b5%d1%80
%d0%b5%d1%87%d0%b5%d0%bd%d1%8c%20%d1%81%d1%82%d1%80%d0%b0%d0%bd -
%d0%bf%d0%be%d0%bb%d1%8c%d0%b7%d0%be%d0%b2%d0%b0%d1%82%d0%b5%d0%bb%d0%b5
%d0%b9%2029.07.20_eng.pdf . 
80 EEC Council Decision No.  130 of 27 November 2009. As amended by EEC Council Dec isions No.  46 of 
16 May 2012, No.  35 of 23 April 2015, No.  48 of 6 March 2016, No.  122 of 19 December 2019, and No.  50 of 
27 May 2020.  
81 According to EEC Council Decision No.  8 of 13 January 2017.  
82 EAEU Treaty, Article  71 and Article  72, para.  4. WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 68 - 
 
  the EAEU Treaty, rather than by the customs authorities as was done previously.83 The level of 
taxation remains subj ect to national rules, and indirect taxes on imports from countries outside the 
EAEU are still collected by customs authorities when crossing the border.  
 The Kyrgyz Republic continues to apply certain indirect taxes, i.e. VAT, excise tax, and sales 
tax, on imported goods.84 Another tax was put in place in 2013 that charged an environmental 
pollution fee on foreign freight carriers when they crossed the border.85 The level of the tax varied 
by the type of vehicle, e.g. from 500 KGS for motorcycles to 2,500 KGS for buses, trucks, and 
tractors. Also, 16 specific automobile checkpoints were designated for the payment and collection of 
the tax. This provision was abolished in 2019.86  
3.1.4.1   Excise  
Excise duties are levied on a few products, i.e. alcohol, tobacco, and  fuel products 
(Table  3.14), and the rates of duty are determined annually by the Government. During the review 
period, the excise duty charged on tobacco products rose gradually and is expected to continue 
rising until 2022 as a result of measures put in place to counteract the growing flow of illegal tobacco 
products. But starting in 2024, the EAEU member States will proceed from an indicative rate of 
EUR 35 per 1,000 cigarettes with a deviation of no more than 20% when calculating national rates 
of excis e duty on cigarettes. These principles of harmonization are pursuant to the Agreement on 
the Principles of Tax Policy in the Field of Excise Taxes on Tobacco Products of the EAEU Member 
States, which was signed on 19 December 2019 by the Deputy Prime Minis ters of the member 
States. Currently, member States are carrying out the relevant domestic procedures necessary for 
its entry into force. For imported goods, the rate of excise is levied based on the customs value, as 
per the customs legislation. Certain e xemptions exist, e.g. goods imported by individuals are not 
subject to excise duty. Upon confirmation of export, excise duties are not applied. Excisable 
products, e.g. alcoholic beverages and tobacco products produced or imported into the Kyrgyz 
Republic,  are required to have an excise stamp, with the exception of beer and grape must.87 
Since the previous Review, goods subject to excise have remained the same or similar, but 
the excise duty rates have increased on most products, particularly on tobacco pro ducts. This is due 
to the reasons stated above and is also attributable to principles of state policy in the field of 
protecting the health of citizens against harmful effects of tobacco, including the implementation of 
a tax policy that dissuades its use.88 As a result, amendments to the Tax Code in 2017 instituted a 
phased increase in the base rate of excise tax on tobacco products.89  
Table 3.14 Goods subject to excise tax, 2020  
Product  HS Rate 
Undenatured ethyl alcohol with an alcohol 
strength by volume of 80% or more; ethyl 
alcohol and other spirits, denatured, of 
any strength  2207 350 KGS/litre  
Vodka  220860  300 KGS/litre  
Liquor -vodka products  220830; 220870, 220890  300 KGS/litre  
Fortified drinks, fortified juices and tonics  220840; 220850  300 KGS/litre  
Wine 220410; 220430; 2205; 2206  100 KGS/litre  
 
83 Protoc ol on the Procedure of Levying Indirect Taxes and the Mechanism of Control Over their Payment 
while Exporting and Importing Goods, Performing Works, Rendering Services (EAEU Treaty, Annex 18).  
84 EAEU Customs Code, Article 46, paras. 1-2. 
85 Ministry of Just ice, Government Resolution No.  675 of 17 December 2013 on Approval of the 
Temporary Regulation on the Procedure for Collecting Fees for Environmental Pollution when Vehicles of 
Foreign States Enter the Territory of the Kyrgyz Republic. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -
kg/94886 .  
86 Ministry of Justice, Government Resolution No.  19 of 28 January 2019 on the Recognition as Invalid 
Certain Decisions of the Government of the Kyrgyz Re public. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ru -ru/12877?cl=ru -ru.  
87 HS 2203 and 220 430. 
88 Ministry of Justice, Law No.  175 of 21 August 2006 about Protection of the Health o f Citizens of the 
Kyrgyz Republic against Harmful Effects of Tobacco and Its Consumption. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/1967 .  
89 Ministry of Justice, Law No.  65 of 28 April 2017 on Amendments to the Tax Code of the Kyrgyz 
Republic. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/111572 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 69 - 
 
  Product  HS Rate 
Cognac  2208201200 -2208202900; 
2208206200 -2208208900  200 KGS/litre  
Sparkling wine, including champagne  220410  140 KGS/litre  
Beer 2203 30 KGS/litre  
Wine products  220430  35 KGS/litre  
Low alcohol drinks  220890  200 KGS/litre  
Filtered and unfiltered cigarettes  2402 1,750 KGS/1,000 pieces  
Cigarillos  2402 1,220 KGS/1,000 pieces  
Cigars  2402 150 KGS/1 piece  
Other articles containing tobacco  2403 610 KGS/kg  
Petrol, light and medium distillates  2710121100 -2710129009; 
2710191100 -2710191500; 
2710192500 -2710192900  5,000 KGS/tonne  
Jet fuel  2710192100  2,000 KGS/tonne  
Diesel fuel  2710193100 -2710194800; 
2710201100 -2710201900  800 KGS/tonne  
Fuel oil  2710195100 -2710196809;  
2710203101 -2710203909  1,000 KGS/tonne  
Oil condensates  2709001001, 2709001009, 
2710197100, 2710197100 -
2710199800  2,000 KGS/tonne  
Crude oil 2709009001 -2709009009  0 KGS/tonne  
Source:  State Tax Service, 2008 Tax Code, as amended. Viewed at: http://www.sti.gov.kg/docs/default -
source/law/nkr_44.pdf?sfvrsn=2 . 
3.1.4.2   VAT 
The Kyrgyz Republic charges a standard 12% rate of VAT on the sale of goods, works, and 
services supplied in the Kyrgyz Republic, including most imports. A small category is zero rated, 
including exports (Table 3.15). There are about 30 categories of exe mptions on imports, which have 
been slightly increased or expanded in scope since the previous Review (Table 3.16). Businesses 
registered for VAT charge it on their taxable supply and report VAT liabilities; the VAT threshold for 
reporting is KGS 8 million . VAT on imports is calculated on the customs value and includes customs 
duties and taxes payable upon importation but excludes VAT in the calculation.  
Within the EAEU, there has been a movement to harmonize indirect taxes, including VAT, in 
particular wit h respect to establishing electronic methods to report and track VAT among member 
States. The tax authorities of the EAEU member States exchange information on paid VAT amounts 
in electronic form, pursuant to the Protocol on the Exchange of Information in Electronic Format 
between the Tax Authorities of the Member States of the EAEU. In the Kyrgyz Republic, the Ministry 
of Economy launched an electronic platform for VAT.  In accordance with Government Resolution 
No. 580 of 12 December 2018 on Measures to Imp lement Articles 85, 86 and 89 of the Tax Code of 
the Kyrgyz Republic, VAT payers, as well as those making payments on imported and/or exported 
goods, submit tax reports in the form of electronic documents with a digital signature as from 
1 July 2019.  
Law N o. 44 of 18 April 2020 on Amending Certain Legislative Acts of the Kyrgyz Republic (the 
Tax Code of the Kyrgyz Republic, the Code on Violations of the Kyrgyz Republic, the Budget Code of 
the Kyrgyz Republic) made several amendments to the Tax Code involvin g VAT, including:  
• from 1 January 2021 the mechanism of imputed VAT accrual on imports is being 
introduced;  i.e. the mechanism with the introduction of the accrued amount of VAT will be 
paid to a deposit account and this entity will pay a single tax of 3% of the value of the 
goods ; and 
• the supply of services for the issuance and generation of means of identification and for 
the marking of goods are VAT -exempt.90 
 
90 Ministry of Justice, Law No.  44 of 18 April 2020 on Amending Cer tain Legislative Acts of the Kyrgyz 
Republic (the Tax Code of the Kyrgyz Republic, the Code on Violations of the Kyrgyz Republic, the Budget Code 
of the Kyrgyz Republic). Viewed at: http://cbd .minjust.gov.kg/act/view/ky -kg/112046 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 70 - 
 
  
 Further, in accordance with Law No.  122 of 12 August 2020 on Amending Certain Legislative 
Acts on Clean Air and Improvement of Tax Administration, the supply of vehicles powered only by 
an electric motor produced at enterprises in the Kyrgyz Republic is exempt from VAT as at 
September  2020.91 In May 2020, the Protocol on the Procedure of Levying Ind irect Taxes and the 
Mechanism of Control Over their Payment while Exporting and Importing Goods, Performing Works, 
Rendering Services (EAEU Treaty, Annex 18) was amended to change how VAT is collected for FEZs. 
This amendment allows a grace period of appro ximately 200 calendar days for the payment of 
indirect taxes (except excise goods requiring a stamp) when goods are imported into the territory 
of EAEU member States from certain free zones.  
Table 3.15 VAT exemptions and those with zero rate of duty, 2020  
Tax code 
reference  Good, work, or service  
Exemptions:  
237 Exempt deliveries  
238 Supply of residential land, buildings, and facilities  
239 Supply of agricultural produce and products of the food processing industry  
240 Delivery of public services and delivery to correctional institutions  
242 Goods and services in the medical and veterinary fields  
243 Financial services  
244 Insurance services  
245 Pension fund services  
246 Transport services  
247 Roaming services, interconnection, and international communication services  
248 Supply of textbooks, school supplies, and scientific publications in the state language  
249 Processing of goods placed unde r customs regimes  
250 Privatization  
250-1 Supply of identification tools, as well as services for issuing and generating codes for product 
labelling  
251 Delivery to charitable organizations  
251-1 Delivery of services by preschool educational organizations (kindergartens created on the 
basis of private ownership)  
251-2 Delivery of services by private cardiac surgery medical institutions  
251-3 Delivery of services by educational institutions establ ished on the basis of private ownership  
251-4 Supply of services of the Main Directorate of the State Specialized Service Ministry of 
Internal Affairs of the Kyrgyz Republic  
251-5 Private medical organizations supplying haemodialysis services to people w ith chronic renal 
failure in the terminal stage  
252 Supplies by non -profit organizations  
253 Delivery free of charge  
254 Delivery by state or municipal organizations of ritual goods and funeral services  
255 Supply of mineral fertilizers and chemical plant protection products  
255-1 Delivery of agricultural machinery manufactured at enterprises in the Kyrgyz Republic  
256 Importation and exportation of metal containing ores, including alloys, concentrates, and 
refined metals  
256-1 Deliveries by a private partner and/or project company in accordance with the legislation of 
the Kyrgyz Republic on public -private partnership  
256-2 Supply of jet fuel for refuelling aircraft for international air transportation  
256-3 Supply of goods or work in accordance with an agreement on a socially significant objective  
Zero rate of duty:  
260 and 
261 Export of goods, works and services with the exception of exports of metal ores, 
concentrates, alloys and refined metals  
262 International transport, except for rail transport  
263 Services for servicing transit flights of aircraft and services related to international transport, 
except railway transport  
263-1 Services related to power supply of pumping stations involved in irr igation of agricultural 
land, providing the population with drinking water  
 
91 Ministry of Justice, Law No.  122 of 12 August 2020 on Amending Certain Legislative Acts on Clean Air 
and Improvement of Tax Administration. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/112068 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 71 - 
 
  Tax code 
reference  Good, work, or service  
375 Supply of goods, works and services intended for use in production from the territory of the 
Kyrgyz Republic, subject of an FEZ 
Source:  State Tax Service, 2008 Tax Code, as a mended. Viewed at: http://www.sti.gov.kg/docs/default -
source/law/nkr_44.pdf?sfvrsn=2 . 
Table 3.16 VAT exemptions on imported goods, works, and services  
Tax code 
reference  Good, work, or service  
257 Securities, passports, and identity cards of Kyrgyz citizens  
257 Specialized items for the disabled  
257 Textbooks and school supplies, scientific publications  
257 Goods provided VAT exemptions under customs legislation of the EAEU or Kyrgyz Republic  
257 Scientific equipment used for geological expeditions to measure and monitoring seismic 
activity  
257 Excise duty stamps and currency, except that used for numismatic purposes  
257 Materials used to assist after the consequences of natural di sasters, armed conflicts  
257 Under an agreement on a socially significant object, in the manner and on the conditions 
established by part 2, Article 256 -3 of the Code  
257 Humanitarian assistance, grants, as determined by the Government of the Kyrgyz Repu blic 
257 For official use of diplomatic missions and consular offices of foreign States and international 
organizations, as well as for private use by diplomatic agents, including members of their 
families, in accordance with international treaties  
257 Baby food  
257 Natural gas  
257 Medicines including vaccines and medicines for animals, as well as medical devices  
257 Specialized items for the construction and renovation of glass melting or ferroalloy furnaces  
257 Banking equipment (ATMs, POS term inals, payment terminals and bank kiosks)  
257 Electricity  
257 Jet fuel imported by refuelling organizations as airborne supplies for refuelling aircraft 
engaged in international air transport  
257 Specialized goods and equipment intended for the construction of energy installations based 
on the use of renewable energy  
258 Pedigree livestock and seed materials, mineral fertilizers, and chemical plant protection 
products  
258-1 Imported weapons, mil itary equipment, military property, and special equipment  
259 Fixed assets  
Source:  State Tax Service, 2008 Tax Code, as amended. Viewed at: http://www.sti.gov.kg/docs/default -
source/law/nkr_44.pdf?sfvrsn=2 . 
3.1.4.3   Sales tax  
The Kyrgyz Republic continues to app ly a sales tax, in addition to VAT, on domestic and foreign 
enterprises on goods, works, and services based on sales turnover. The tax rates are:  
• banks: 2%;  
• mobile communication activities: 5%;  
• goods, works, and services paid via non -cash settlement: 0%;  
• goods, works, and services paid in cash, trading activities: 1%; others: 2%; and  
• goods, works, and services not outlined above, and trading activities: 2%; others: 3%.92 
 
92 State Tax Service, 2008 Tax Code, as amended. Viewed at: http://www.sti.gov.kg/docs/default -
source/law/nkr_44.pdf?sfvrsn=2 . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 72 - 
 
  3.1.5   Import prohibitions, rest rictions, and licensing  
The main import prohibitions and restrictions derive from the EAEU rules as contained in 
Articles 46 and 47 of and Annex 7 to the EAEU Treaty, which provide uniform application of non -tariff 
measures vis-à-vis third parties. Article  46 designates common non -tariff barriers, such as 
prohibitions, quantitative restrictions, exclusive rights, licensing, and authorization procedures, to 
be put in place. In addition, Article  47 allows unilateral introduction of non -tariff barriers by a 
member State. The rationales for introducing unilateral non -tariff measures are defined in Annex 7: 
(i) protect human life and health and the environment, animals, and plants; (ii)  protect cultural 
artefacts and heritage; (iii)  prevent the exhaustion of natu ral resources; (iv)  ensure defence and 
security; and (v) fulfil international and other obligations.  
The EAEU prohibitions and restrictions are designated in a "Single List" of products for the 
customs union (Table A3.2).93 The Single List entered into for ce on 1 January 2010 and has been 
amended a number of times.94 As at April 2020, 7 items were prohibited for importation, 15 were 
restricted and required permission through licensing for import (non -automatic licensing), and 1 was 
under surveillance and subject to automatic licensing (Table A3.2). Many of the items w ere in place 
due to international conventions, such as CITES, the Stockholm Convention, and the Basel 
Convention, while others reflect national or regional interests. The majority of items were of a 
permanent nature. The Single List also contains a surveil lance mechanism that was established on 
certain steel products that are subject to automatic licensing. It was put in place pursuant to EEC 
Board Decision No.  90 of 4 June 2019 and was valid from 1 January 2020 to 31 December 2020.  
 At the national level, the Kyrgyz Republic adopted a resolution in 2019 that is a temporary 
prohibition on the importation of oil and petroleum products by motor transport.95 The measure 
became applicable in November 2019 and applies to such products as crude petroleum, light an d 
medium distillates, gas oils, benzene, naphtha, furnace fuels, and other petroleum products.  
 Import prohibitions and restrictions are controlled upon entry in the territory of 
the Kyrgyz  Republic, pursuant to the rules of the EAEU Customs Code (Article  12) and 
the Kyrgyz  Republic's 2019 Law on Customs Regulation (Article  8). These provisions provide for 
compliance with the customs importation process and rules, which may include immediate 
exportation or detainment by Customs in case of non -compliance.  
In 2017, the Kyrgyz Republic launched a project to strengthen the capacity for national 
implementation of international agreements related to chemicals and waste, e.g. the Basel 
Convention, the Rotterdam Convention, and the Minamata Convention. The goal was  to support 
institutional capacity to facilitate better implementation and strengthen the Kyrgyz Republic's 
legislative and regulatory framework. As a result, a number of recommendations, regulatory 
documents, and draft decrees were prepared to improve che mical safety.96 Within this project, an 
analysis was carried out to identify ways to phase out the use of glyphosate.97 According to the 
results of the analysis, it was recommended to allow reasonable use of glyphosate -based herbicides 
in agriculture until  2029, whereafter a subsequent ban on importation and use in the Kyrgyz Republic 
is envisaged.  
 
93 EEC, Unified List of Goods that Are Subject to Non -tariff Regulation Measures  in Trade with Third 
Countries and the Regulations on the Import and/or Export of These Goods. Viewed at: 
http://www.eurasiancommission.org/ru/act/trade/catr/nontariff/Pages/ep.new.aspx . 
94 EEC, EEC Board Decision No.  30 of 21 April 2015. Viewed at: 
https://docs.eaeunion.org/sites/storage1/Lists/Documents/2f2762e7 -6ad2-4b76-8362-
cec16f1a8ff7/95578e07 -961c-458b-b86e-
56063e83a603_%d0%a0%d0%b5%d1%88%d0%b5%d0%bd%d0%b8%d0%b5%20%d0%9a%d0%be%d0%
bb%d0%bb%d0%b5%d0%b3%d0%b8%d0%b8%20%e2%84%96%2030%20%d0%be%d1%82%2021%20%
d0%b0%d0%bf%d1%80%d0%b5%d0%bb%d1%8f%202015%20%d0%b3.pdf .   
95 Ministry of Justice, Government Resolution No.  566 of 22 October 2019 about the Temporary 
Prohibition on Imports of Certain Types of Oil and Petroleum Products in the Territory of the Kyrgyz Republic by 
Motor Transport. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/157207 .  
96 Ministry of Economy. Viewed at: 
http://mineconom.gov.kg/froala/uploads/file/82fc1b353fd8250da1213ca61c252f645fd424ce.pdf .  
97 Ministry of Economy. Viewed at: http://ghs.eco -expertise.org/wp -content/uploads/2019/12/Analiz -
po-glifosatu.pdf .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 73 - 
 
  
As regards import licensing procedures, the Appendix to Annex 7 to the EAEU Treaty sets out 
the main framework for import and export licences of the customs uni on. It gives the possibility of 
three types of licences – one-time, general, and exclusive; most have a validity of one year. It 
defines automatic licences as temporary measures for monitoring or surveillance the import or 
export dynamics of the good. The Appendix also outlines the reasons for non -issuance of a licence 
and for its termination or suspension.  
Import and export licensing and transit of certain types of specific goods are regulated by 
national legislation and EAEU law. By EEC Board Decision No.  30 of 21 April 2015 on Non -tariff 
Regulation Measures, the Unified List of Goods was approved, which includes goods where a 
permissive procedure for import into, or export from, the customs territory of the Union is necessary 
(Annex 2 to the Decision). Th e national legislation regulates the import, export, and transit of: 
(i) dual-use goods and products subject to export control and included in the National Control List 
of the Kyrgyz Republic of controlled products approved by Government Resolution No.  197 of 2 April 
2014; and (ii)  weapons and military products included in the designated list of weapons, military 
equipment, other military products and services subject to licensing for their export and import 
approved by Government Resolution No.  370 of 6 Ju ly 2011. Several laws and regulations provide 
detailed information on licensing procedures: (i) Law No.  41 of 2 July 1997 on State Regulation of 
Foreign Economic Activity; (ii) the Law on Export Control ; (iii) the Law on the Licensing and Permit 
System in the Kyrgyz Republic; (iv)  the Temporary Regulation on the Procedure for Licensing the 
Import and Export of Arms and Military Equipment, as well as Other Military Products, approved by 
Government Resolution No.  67 of 3 February 2017; (v)  Regulation on the P rocedure for Exercising 
Export Control over Controlled Products in the Kyrgyz Republic, approved by Government Resolution 
No. 257 of 27 October 2010; (v i) Government Resolution No.  708 of 26 December 2019 on the 
Procedure for Issuing an Electronic Permit D ocument (License/Conclusion/Permit) for the 
Export/Import/Transit of Goods included in the Unified List of Goods to Which Non -tariff Regulation 
Measures Are Applied in Trade with Third Countries on the Principle of a Single Window; and 
(vii) Government Res olution on Approval of the List of Expert Organizations and Licensors for 
Licensing the Export and Import of Specific Goods Included in the Unified List of Goods to Which 
Non-tariff Measures Are Applied in Trade with Third Countries, and Making Additions a nd Changes 
to Some Decisions of the Government of the Kyrgyz Republic.98 The latter identifies the appropriate 
expert organization and licensor for each measure. In most cases, the Ministry of Economy is in 
charge of issuing licences; it operates through a  licensing commission charged with reviewing and 
issuing licences. As part of the modernization of the SWIS, a number of measures or actions are 
envisaged to develop software modules for the departments concerned and to ensure interoperability 
of data exch ange through EIS Tunduk and at the supranational level within the EAEU, including on 
the automation of internal business processes for issuing electronic licences.   
Pursuant to the Law on the Circulation of Medicines, the importation of drugs or medicines  is 
limited to certain entities: manufacturers of medicines, wholesale organizations, research 
organizations, healthcare organizations, and individuals for personal use.99 The same law also 
prohibits the importation of low -quality counterfeit medicines and  drugs that have less than one 
third of their shelf life before expiration. The wholesale and retail distribution of medicines is also 
controlled (e.g. sales to entities licensed for pharmaceutical activity or to physical persons having a 
licence for medic al activity, and to healthcare, state, and research organizations), as are the prices 
of medicines (Section 3.3.4.2).  
As at April 2020, none of the import prohibitions or restrictions had been notified as 
quantitative restrictions to the WTO, and the last notification regarding import licensing was from 
 
98 Ministry of Justice, Law No.  41 of 2 July 1997 on State Regulation of Foreign Trade Activities, Law 
No. 195 of 19 October 2013 about the Licensing and Permit System in the Kyrgyz Republic, and Government 
Resolution No.  142 of 24 March 2016 about the Approval of the List of the Organizations -Experts and Licensors 
on Licensing of Export and Import of the Spec ific Goods included in the Single List of the Goods to Which 
Measures of Non -tariff Regulation in the Field of Trade with the Third Countries Are Applied, and about 
Modification and Amendments in Some Decisions of the Government of the Kyrgyz Republic. Vie wed at: 
http://cbd.minjust.gov.kg/act/view/ru -ru/541 ; http://cbd.minjust.gov.kg/act/view/ru -ru/205058 ; and 
http://cbd.minjust.gov.kg/act/view/ky -kg/99102 .  
99 Ministry of Justice, Law No.  165 of 2 August 2017 on the Circulation of Medicines. Viewed at: 
http://c bd.minjust.gov.kg/act/view/ky -kg/111672 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 74 - 
 
  2014, which predates the Kyrgyz Republic's membership in the EAEU.100 According to the authorities, 
work is ongoing with respect to preparing the outstanding notifications for submission to the WTO.  
3.1.6   Anti-dump ing, countervailing, and safeguard measures  
The Kyrgyz Republic has maintained trade remedy legislation since the late 1990s but, like 
with other border measures, the regime has changed substantially since joining the customs union 
in 2015. The Kyrgyz laws on anti -dumping, countervailing measures, and safeguards ceased to apply 
as at the date of joining the customs union and, consequently, the respective legislation of the 
customs union became operational at the same time. Therefore, measures tha t had been in force in 
the Kyrgyz Republic as at this date ceased while, at the same time, the measures in force in the 
EAEU were extended to cover the territory of the Kyrgyz Republic.101 This was notified to the WTO 
in January 2016.102 
Thus, the applicable  rules for trade remedies for the Kyrgyz Republic comprise the EAEU 
Treaty and a number of related decisions or regulations (Box 3.2). These were notified to the WTO, 
and the respective WTO committees on trade remedies reviewed the legislation during 2016 -17. The 
authorized body for investigations is the Department for Internal Market Defence of the EEC. Rules 
on procedure provide that the term for an anti -dumping or countervailing duty investigation is from 
12 to 18 months, and for safeguards, from 9 to 12  months.  
Box 3.2 Trade remedy legislation, 2020  
EAEU Treaty of 29 May 2014 (Part 2, Section IX, subsection 3)  
Protocol on the Application of Safeguard, Anti -dumping and Countervailing Measures with Regard to Th ird 
Countries (Annex  8 to the EAEU Treaty)  
EEC Board Decision No.  1 of 7 March 2012 on Some Issues of Safeguard, Anti -dumping and Countervailing 
Measures in the Common Customs Territory of the Customs Union  
EEC Board Decision No.  44 of 16 May 2012 on Som e Issues of Protecting the Internal Market  
Provision of 7 March 2012 for the Use and Protection of Confidential Information and Proprietary Information 
of Limited Distribution in the Body Responsible for Investigating  
Regulation of 7 March 2012 Making and Drafting Decisions of the Eurasian Econom ic Commission for 
Safeguard, Anti -dumping and Countervailing Measures  
Agreement of 19 November 2010 on the Procedure for the Application of Safeguard, Anti -dumping and 
Countervailing Measures with Regard to Third Countries during the Transition Period  
Protocol on the Procedure for Provisions to the Body Making Investigations, the Data including Confidential 
Information for the Purpose of the Investigations Preceding  
EEC Council Decision No.  99 of 14 September 2018 on the Date of Entry into Force of Some Decisions of the 
Board of the Eurasian Economic Commission on the Application of Measures to Protect the Internal Market  
EEC Council Decision No.  30 of 22 February 2019 on the Date of Entry into Force of Some Decisions of the 
Board of the Eurasian Ec onomic Commission on the Application of Measures to Protect the Internal Market  
Source:  WTO documents G/ADP/N/1/KGZ/3, G/SCM/N/1/KGZ/3, and G/SG/N/1/KGZ/3, 17 October 2016; 
information provided by the authorities; and EEC, Department for Internal Market D efence . Viewed 
at: http://www.eurasiancommission.org/ru/act/trade/podm/Pages/default.aspx .  
The Kyrgyz Republic, by virtue of its membership in the EAEU, had 21 measures  in force as 
at 1 November 2020 (Table 3.17). Most investigations and measures in force relate to China and 
Ukraine, and are concentrated on iron and steel products.  
 
100 WTO document G/LIC/N/1/KGZ/2, 26 September 2014.  
101 At the time, one safeguard measure of the Kyrgyz Republic ceased to apply and two of the customs 
union commenced; for anti -dumping, 10 measures of the customs un ion were extended to the Kyrgyz 
Republic.  
102 WTO documents G/ADP/N/1/KGZ/2, G/SCM/N/1/KGZ/2, and G/SG/N/1/KGZ/2, 27 January 2016.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 75 - 
 
  Table 3.17 Measures imposed, 12 August 201 5-1 November 2020  
 
 
Typea Product  Affected 
trading 
partner(s)  Current 
status  Reviews  Date of original 
imposition  Length of 
application 
as at 
01/11/2020  
SG Harvesters 
and modules 
thereof  All Expired     
SG Tableware  All Expired     
AD Enamelled 
baths of cast 
iron China  Expired     
AD Light 
commercial 
vehicles  Germany, 
Italy, 
Turkey  Expired     
AD Citric acid  China  Expired     
AD Certain steel 
pipes and 
tubes  Ukraine  In force  Extended as a 
result of an 
expiry review 
in 2016;  
interim review 
in 2018  12 August 2015  5 years,  
2 months  
AD Cold-rolled 
flat steel 
products with 
polymer 
coating  China  In force  Extended as a 
result of an 
expiry review 
in 2018  12 August 2015  5 years,  
2 months  
AD Cold-worked 
seamless 
pipes and 
tubes of 
stainless 
steel China,  
Malaysia  
(since 
January 
2018)  In force  Anti-
circumvention 
review in 
2017: 
extended to 
Malaysia; 
extended as a 
result of an 
expiry review 
in 2018  12 August 2015  5 years,  
2 months 
(China);  
2 years, 10 
months 
(Malaysia)  
AD Forged 
work-rolls Ukraine  In force  Extended as a 
result of  an 
expiry review 
in 2020  12 August 2015  5 years,  
2 months  
AD Stainless 
steel flatware  China  In force  Expiry review 
ongoing  12 August 2015  5 years,  
2 months  
AD Rolling -
element 
bearings 
(excl. needle 
roller 
bearings)  China  In force  Extended as a 
result of an 
expiry review 
in 2018  12 August 2015  5 years,  
2 months  
AD Graphite 
electrodes  India In force  Extended as a 
result of an 
expiry review 
in 2018  12 August 2015  5 years,  
2 months  
AD Seamless 
steel OCTG  China  In force  Expiry review 
ongoing  23 September 
2015 5 years,  
1 month  
AD Crawler 
dozers  China  In force  Extended as a  
result of an 
expiry review 
in 2020  12 December 
2015 4 years, 10 
months  
AD Commercial 
vehicle tyres  China  In force  Expiry review 
ongoing  18 December 
2015 4 years, 10 
months  
AD Steel railway 
wheels  Ukraine  In force  Interim 
reviews in 
2018 and 2020  22 January 2016 4 years, 
9 months  
AD Seamless 
pipes and 
tubes of 
stainless 
steel Ukraine  In force  Expiry review 
ongoing  26 February 2016 4 years, 
8 months  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 76 - 
 
   
 
Typea Product  Affected 
trading 
partner(s)  Current 
status  Reviews  Date of original 
imposition  Length of 
application 
as at 
01/11/2020  
AD Bars and rods  Ukraine  In force   30 April 2016 4 years,  
6 months  
AD Ferrosilicon 
manganese  Ukraine  In force   28 October 2016 4 years  
 
AD Hot-rolled 
steel angles  Ukraine  In force   11 June 2017 3 years,  
4 months  
AD Aluminium 
alloy wheels   China  In force  28 April 2019 1 year, 6 
months  
AD Herbicides  European 
Union  In force   20 July 2019 1 year, 3 
months  
SG Certain flat -
rolled steel 
products  All In force   1 December 2019 11 months  
AD Zinc plated or 
coated flat -
rolled steel 
products  China, 
Ukraine  In force   5 January 2020 10 months  
AD Hot-worked 
seamless 
pipes and 
tubes of 
stainless 
steel China  In force   1 February 2020 9 months  
AD Aluminium 
alloy strips  China, 
Azerbaijan  In force  24 October 2020 1 week  
a AD = anti -dumping; SG = safeguards.  
Note:  Anti-dumping measures were originally imposed for five years. Safeguard measures on certain flat -
rolled steel products were imposed for one year.  
Source:  Data provided by the authorities.  
3.1.7   Other measures affecting imports  
The issue of trade sanctions has not been a significant issue for the Kyrgyz Republic's trade 
and trade policies. According to the authorities, the EAEU Treaty does not contain any provisions on 
trade sanctions, and thus they remain an issue under national remit . However, the EAEU examine d 
the issue and in 2018 issued a report titled On the Application of Collective Measures to Protect 
Economic Interest in Response to the Action of a Third Party in International Practice and Possible 
Recommendations to the Member States of the EAEU, Taking  into Account Their Current Legislation 
and the Legal Framework of the EAEU. The report was presented to the EAEU Intergovernmental 
Council in November 2018, and there was an understanding that there was no need to adopt any 
additions to the laws of the EA EU. As at April 2020, various international sanctions were in place on 
some member States of the EAEU but not the Kyrgyz Republic. Nevertheless, the Kyrgyz Republic 
may be indirectly impacted.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and req uirement  
The general customs rules for exports are contained in the same legislation and regulations 
as for imports (Section 3.1.1, Table 3.1, and Box 3.1). However, the content and application of the 
export customs procedures, as well as the conditions fo r placing goods under the export procedure 
are regulated by Chapter 21 of the EAEU Customs Code. In order to be placed under the customs 
procedure for export, the exporter must fulfil certain criteria such as payment of export duties and 
comply with condit ions such as prohibitions and restrictions. Thereafter, a declaration needs to be 
submitted. As with imports,  the Tulpar System single window web service is used to allow 
participants of foreign economic activity to submit applications and accompanying doc uments WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 77 - 
 
  electronically to government agencies and other organizations that issue permits and other 
documents necessary for export operations.103 
3.2.2   Taxes, charges, and levies  
Article  46 and other related articles of the EAEU Customs Code allow for the application of 
customs duties on exports. However, as at April 2020, there were no export duties applied at the 
level of the EAEU. The Code further notes that the rate of export customs duties would be established 
by the legislation of the respective membe r State.104 Article  40 of the Law on Customs Regulation 
of the Kyrgyz Republic likewise provides for the provision of duties on exports, and Article  51 
confirms that the rates of duty on exports are to be determined by the Government of 
the Kyrgyz  Republic.  During the review period, three Government resolutions were issued that 
impose export duties on a number of products.  
Export duties have been applied on scrap and waste of certain ferrous and non -ferrous 
metals since October 2019, pursuant to Government Resolution No.  479 of 16 September 2019.105 
Export duties of "15%, but not less than USD 150 per ton" are applied on 15 HS subheadings or 
tariff lines of various metal scrap106 and a rate of "15%, but not less than USD 300 per ton" on 
copper scrap.107 The dut ies are applied on exports outside the EAEU. Another similar measure for 
unprocessed or coarsely crushed cut blocks or slabs of limestone has been in place since 2016 for 
exports outside the EAEU and free trade zone states.108 The rate of duty is "100%, but  not less than 
50 euros per 1000 kg" and was put in place to reduce smuggling.  
Export duties on raw hides of cattle and horses were also instituted in 2016.109 The export 
duty is "20%, but not less than 200 euros per 1000 kg" and was also reportedly establ ished to 
reduce smuggling. It is also not applied to exports to the EAEU.110  
During the review period, there was a significant rise in the revenues from export duties, 
i.e. from 1.9 million KGS in 2013 to 19.1 million KGS in 2018 (Table 3.2); this was due to the new 
export duties instituted during the period.  
At the time of the previous Review, there were export duties in force on mineral fertilizers, 
coal, paper and paperboard, wool, certain wool products, and various agricultural products. These 
export d uties have expired, except for those on paper and paperboard.  
In terms of indirect taxes, i.e. excise taxes and VAT, the EAEU Treaty provides that upon 
exportation from the territory of one member State to another, there is generally an exemption from 
the payment of excise duties and a zero rate of VAT.111 Paragraph 3 of Annex  18 to the EAEU Treaty 
(Protocol on the Procedure for Levying Indirect Taxes and the Mechanism of Control over their 
Payment while Exporting and Importing Goods, Performing Work, Render ing Services) specifies 
when exporting goods from the territory of one member State to the territory of another, that the 
taxpayer of the member State from whose territory the goods were exported has a zero VAT rate 
and/or exemption from the payment of exc ise tax when the documents stipulated by the Protocol 
are submitted to the tax authority.  
 
103 Tulpar System. Viewed at: http://swis.trade.kg/ . 
104 EAEU Customs Code, Article 53.  
105 Ministry of Justice, Government Resolution No.  479 of 16 September 2019. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ru -ru/157112 .  
106 HS 7204, 750300, 760200, 780200, 790200, 800200, 810197, 81 0297, 810330, 810420, 810530, 
81060010, 810730, 810830, and 810930.  
107 HS 740400.  
108 Ministry of Justice, Government Resolution No.  534 of 7 October 2016. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/99470 . HS 2515110000 and 2515120000.  
109 Ministry of Justice, Government Resolution No.  254 of 16 May 2016. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/98456 . HS 4101503000, 4101505000, and 4101509000.  
110 Ministry of Justice, Government Resolution No.  254 of 16 May 2016 on Approval of Rates of Export of 
Customs Duties on Export (Raw) of Raw  Hides of Cattle and Horses. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/98456 .  
111 EAEU Treaty, Annex 18 (Protocol on the Procedure of Levying Indirect Taxes and the Mechanism of 
Contro l over their Payment while Exporting and Importing Goods, Performing Works, Rendering Services).  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 78 - 
 
  3.2.3   Export prohibitions, restrictions, and licensing  
As is the case with import prohibitions, restrictions, and licensing, the same framework on 
non-tariff measures also applies to export prohibitions, restrictions, and licensing (Section 3.1.5). 
Most importantly, the national provisions of the Kyrgyz Republic were replaced by the Single List of 
measures of the EAEU. The list, however, has a different composition of produc ts impacted on the 
export side (Table A3.3). As at April 2020, 17 categories of products were subject to restrictions, 
essentially export licences, and 6 categories subject to prohibition although 2 are temporary 
measures due to the COVID -19 pandemic (see below).  
The EAEU also maintains a list of products that are significantly important to the internal 
market in which temporary bans or export restrictions can be put in place.112 The list has 
85 categories of goods listed by HS code. The products include meat, milk, grains, flour, beans, 
oilseeds, vegetable oil and oilcakes, animal feed, fuels, hides and skins, wood, waste paper, wool, 
and various metal waste and scrap.  
The Kyrgy z Republic also put in place a number of temporary measures during the review 
period. In June 2019, the Government issued a decree prohibiting the export of marble and 
travertine, in crude, roughly trimmed, and cut forms.113 The measure entered into force o n 
20 July 2019 for six months. The Kyrgyz Republic notified this measure as a quantitative restriction 
with the justification as Article  XX(g) of the GATT 1994.114 Another temporary measure was put in 
place in June 2020, banning the export of Kyrgyz limesto ne115 outside the customs territory of the 
EAEU for six months. According to the authorities, the Resolution was adopted in order to rationalize 
the use of an irreplaceable natural resource and to prevent a critical shortage of raw material natural 
limeston e shell rock at the Sary -Tash deposit.116 This measure has not been notified to the WTO.  
The EAEU took a decision on 24 March 2020 in response to the COVID -19 pandemic to 
impose temporary export prohibitions on a range of medical products, devices, and per sonal 
protective equipment to prevent critical shortages.117 They apply mainly to cotton wool, gauze, 
bandages, masks, half masks, respirator masks, respirators, filters for personal protective 
equipment for respiratory devices, goggles, disinfectants, shoe  covers, certain types of clothing and 
accessories, and gloves; they were currently in force until 30 September 2020. A second similar 
decision was taken with respect to certain agricultural goods as at 21 April 2020. It prohibits the 
exportation of onions , garlic, turnips, rye, rice, buckwheat (including crushed and finished food 
products), millet, cereal grains, soybeans, and sunflower seeds.118 
Furthermore, the Kyrgyz Republic also put in place a number of  temporary measures relating 
to COVID -19, prohibiting the export of certain products. An export ban on certain medicines and 
medical devices was put in place as at 3 February 2020 for six months.119 The list of 27 products 
included such things as aspirin, p aracetamol, ibuprofen, antibiotics, syringes, and medical masks.120 
 
112 EEC, EEC Board Decision No.  83 of 26 July 2016. Viewed at: 
http://www.eurasiancommission.org/ru/act/trade/catr/nontariff/Pages/shv.aspx . 
113 Ministry of Justice, Government Resolution No.  323 of 28 June 2019. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/14327 .  
114 WTO document G/MA/QR/N/KGZ/1, 25 July 2019.  
115 Raw limestone shell rock or roughly shattered, sawn or divided in a different way into blocks or 
plates of rectangular or square shape in HS codes 2515 11 000 0 and 2515 12 000 0.  
116 Government Resol ution No.  284 of 3 June 2020 about Introduction of a Temporary Ban on the Export 
of Raw Limestone Shell Rock or Roughly Shattered, Sawn or Divided in a Different Way into Blocks or Plates of 
Rectangular or Square Shape, from the Territory of the Kyrgyz Rep ublic.  
117 Amendments to EEC Board Decision No.  30 of 21 April 2015 on Measures of Non -tariff Regulation. 
EEC Board Decision No.  41 of 24 March 2020. Viewed at: https://docs.eaeuni on.org/docs/ru -
ru/01425254/err_26032020_41 .  
118 EEC, EEC Board Decision No.  43 of 30 March 2020, as amended by EEC Board Decision No.  57 of 
21 April 2020. Viewed at: 
http://www.eurasiancommission.org/ru/act/trade/catr/nontariff/Documents/EP.pdf/1.11.pdf .  
119 Ministry of Justice, Government Resolution No.  57 of 3 Februar y 2020 on Temporary Ban on the 
Export of Medicines and Medical Supplies from the Kyrgyz Republic. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/157481 .  
120 Acetylsalicylic acid, HS 3004 9 0 000 2; Paracetamol, HS 3004 90 000 2; Ibuprofen, HS 3004 90 000 
2; Azithromycin, HS 3004 20 000 2; Amoxicillin + Clavulanic acid, HS 3004 10 000 5; Moxifloxacin, HS 3004 
90 000 2; Imipenem, HS 3004 90 000 2; Clindamycin, HS 3004 20 000 1; Roxithromycin, HS 3004 20 000 2; 
Cefazolin HS 3004 20 000 2; Cefepim, HS 3004 20 000 2; Cefotaxime, HS 3004 20 000 1; Ceftriaxone, HS WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 79 - 
 
  A second similar measure was put in place on 22 March 2020, prohibiting the export of mainly 
foodstuffs and disinfectants, also for six months.121 This latter measure was notified to the WTO  on 
23 March 2020 as a quantitative restriction with justification pursuant to Articles  XI:2(a) and XX(b) 
of the GATT 1994.122  
Thereafter, similar temporary measures were put in place in 2020 to address the ongoing 
situation as the original measures expire d. A Government Resolution from July 2020 temporarily 
banned the export of certain medicines and medical devices from the Kyrgyz Republic for six months. 
Compared with the earlier similar measure, this Resolution is much more comprehensive and covers 
118 p roducts in total, including 56 medicines listed by international non-proprietary  name and 
62 categories of medical products and devices.123 According to the authorities, this decree was 
adopted in order to protect the life and health of the population, prev ent a critical shortage in the 
provision of medicines and medical products, and prevent a difficult epidemiological situation in the 
country.124 Another Government Resolution from November 2020 temporarily bans the exportation 
of certain types of agricultur al products, such as live animals, wheat, and rice, to places outside the 
EAEU customs territory for six months.125 This Resolution was adopted in order to prevent a critical 
shortage of certain types of agricultural products and ensure the country's food s ecurity.  
It is noted that as part of its commitments pursuant to its Protocol of Accession to the WTO, 
the Kyrgyz Republic undertook commitments to bind its existing policies of not requiring licences for 
the export of agricultural products and not imposi ng tariffs or quotas on the export of agricultural 
products, except in accordance with WTO Agreements.126 
3.2.3.1   Export control  
Unlike other export measures, export control is an area where competency rests largely with 
individual member States, and thus the Kyrgy z Republic continues to have its own rules and 
legislation on the matter. Although the Kyrgyz Republic is not a member of the main export control 
arrangements127, it applies measures to control exports of certain goods, through licensing, often 
pursuant to other international conventions.  
The Kyrgyz Republic's main law on export control remains Law No.  30 of 23 January 2003 
on Export Control that was developed to introduce and create a legal framework for the export 
control system; a number of related resol utions complement the legal framework (Table 3.18). The 
Law on Export Control underwent some amendments during the review period, but the main 
 
3004 20 000 2; Ceftriaxone + Sulbactam, HS 3004 90 000 2; Ceftriaxone + Tazobactam, HS 3004 90 000 9; 
Cefuroxime, HS 3004 20 000 2; Levof loxacin, HS 3004 90 000 2; Dopamine, HS 3004 90 000 2; Furosemide, 
HS 3004 90 000 2; Norepinephrine, HS 3004 39 000 1; Epinephrine, HS 3004 90 000 2; Sodium chloride, 
HS 3004 90 000 2; Famotidine or omeprazole by injection, HS 3004 90 000 2; Ringer's solut ion, HS 3004 90 
000 9; Disposable injection syringes, HS 9018 31 100 9; Filling device, HS 9018 90 500 1; and Medical mask, 
HS 3005 90 500 0 and 6307 90 980 0.  
121 Ministry of Justice, Government Resolution No.  178 of 22 March 2020  on Introduction of the 
Temporary Ban on Export (Export) of Separate Types of Goods from the Kyrgyz Republic. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/157473 . Wheat and meslin, HS 1001; wheat flour, HS 1101 0 0; 
oil-seed oil, HS ex1512; rice, HS ex1006; pasta, HS ex1902; granulated sugar, HS 1701 99; eggs, 
HS 0407 11 000 0 and 0407 21 000 0; edible salt, HS 2501 00 91; fodder, straw and feed, HS 1214 90 900 0, 
2302, and ex2309; soap and other antibacterial agen ts, ex3401; and disinfectants, ex3808.  
122 WTO document G/MA/QR/N/KGZ/1/Add.1, 24 March 2020.  
123 For a complete list, see Annex to Government Resolution No.  390 of 20 July 2020 on the Introduction 
of Temporary Ban on the Export of Medicines and Medical Device s from the Kyrgyz Republic. Viewed at:  
http://cbd.minjust.gov.kg/act/view/ky -kg/157731 .  
124 Ministry of Justice, Government Resolution No.  390 of 20 July 2020. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/157731 .  
125 Government Resolution No.  569 of 19 November 2020 on the Introduction of Temporary Ban on the 
Export (Export) of Certain Types of Agricultural  Products from the Kyrgyz Republic Outside the Customs 
Territory of the Eurasian Economic Union. It includes 14 categories of agricultural products: live horses, 
donkeys, mules and hinnies, HS 0101; live cattle, HS 0102; live sheep and goats, HS 0104; live  poultry, 
HS 0105; wheat and meslin, HS 1001; barley, HS 1003; maize, HS 1005; rice, HS 1006; wheat flour, 
HS 1101 00; vegetable oil, HS 1512, except for 1512 11 990 1 (safflower oil); granulated sugar, HS 1701 99; 
eggs, HS 0407 11 and 0407 21; iodized sal t for cooking food, HS 2501 00 91; and fodder (hay, straw, 
compound feed, bran and grain forages), HS 1214 90 900 0 and 2302.  
126 WTO document WT/ACC/KGZ/26, 31 July 1998.  
127 The Kyrgyz Republic has not accepted, nor is it a member of, the Wassenaar Arrangeme nt, the 
Australia Group, the Missile Technology Control Regime, or the Nuclear Suppliers Group.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 80 - 
 
  elements remain unchanged. In 2019, amendments were made to implement UN Security Council 
Resolution 1540. The La w prescribes that any foreign economic operation with controlled  materials, 
equipment, technologies, scientific and technical information, work and services, and the results of 
intellectual activity can be carried out only after obtaining an appropriate pe rmission of a 
state-authorized body for export control. The main element of control is the issuance of licences for 
the controlled movement in transit, importation, exportation, or re -export of the established list of 
products.128 The Ministry of Economy is  the authorized state body to issue licences of controlled 
products, but it works in conjunction with other Ministries or state agencies that have expertise in 
the relevant field of the controlled product, e.g. defence and health.  
In 2014, the Kyrgyz Repu blic established  its National Control List, which lists controlled 
products and their HS codes.129 It harmonizes the product coverage with international 
non-proliferation conventions.130 The National Control List was developed on the basis of 
the EurAsEC  Model Lists approved by the Decision of the Interstate Council of EurAsEC No.  190 of 
21 September 2004. The Kyrgyz Republic joined, by Law No.  36 of 20  March 2019, the Geneva 
Protocol for the Prohibition of the Use in War of Asphyxiating, Poisonous or Othe r Gases, and of 
Bacteriological Methods of Warfare of 17 June 1925. The Regulation on the Implementation of the 
Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical 
Weapons and their Destruction from 13 January 1993  was also developed. Currently, this draft has 
been submitted to the Government Office of the Kyrgyz Republic for approval. In addition, 
amendments were made by Law No.  51 of 24  April 2019 to the Export Control Law in order to 
implement requirements of int ernational treaties of the Kyrgyz Republic in the field of 
non-proliferation of weapons of mass destruction, their means of delivery, as well as in the field of 
export, import, re -export, and transit of controlled products that can be used to create weapon s of 
mass destruction.  
The Kyrgyz Republic passed temporary provisions in 2017, which were in place until 
31 December 2020, on procedures for licensing the import and export of weapons and military 
goods.131 The Resolution sets out the Ministry of Economy as the relevant body for the issuance of 
both import and export licences and prescribes the relevant procedures and forms. For exports of 
these goods, an end -user certificate containing an obligation of the authorized body of a foreign 
state is also necess ary; this is separate from the National Control List. These temporary provisions 
result from the accession of the Kyrgyz Republic to the EAEU. Previously, there was a general 
procedure for issuing permits for all types of goods approved by the Resolution, but a legal 
framework for export control was created within Article  2 of the Law on Export Control so that control 
of military goods is carried out in accordance with the legislation on military -technical cooperation. 
Currently, a draft law is being develo ped that includes military goods.  
 
128 The Law on Export Control was initially designed to implement the Convention on the Prohibition of 
the Development, Production and Stockpiling of Bacteriolog ical (Biological) and Toxin Weapons and on their 
Destruction.  
129 Ministry of Justice, National Control List . Viewed at: http://cbd.minjust.gov.kg/act/view/ru -
ru/96281?cl=ru -ru.  
130 These conventions include: (i)  the Treaty on the Non -Proliferation of Nuclear Weapons (NPT) since 
5 July 1994; (ii)  the Comprehensive Test Ban Treaty (CTBT); (iii)  the IAEA Statute (ratified by the Law No. 174 
of 1 August 2003); (iv)  the Agreement for the Appl ication of Safeguards in Connection with the Treaty on the 
NPT; (v) the Treaty on the Nuclear -Weapon -Free Zone in Central Asia (ratified by Law No.  58 on 28 April 
2007); (vi) the Convention on the Prohibition of the Development, Production, Stockpiling and  Use of Chemical 
Weapons and on Their Destruction (ratified by the Law No.  89 on 29 April 2003); (vii)  the Convention on the 
Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons 
and on their Destructi on (ratified by the Law No.  144 on 17 August 2004); (viii) the Joint Convention on the 
Safety of Spent Fuel Management and on Safety of Radioactive Waste Management, signed on 
5 September  1997 in Vienna (ratified by Law No.  195 on 5 December 2006); (ix) th e Protocol for the 
Prohibition of the Use in War of Asphyxiating, Poisonous or Other Gases, and of Bacteriological Methods of 
Warfare signed on 17 June 1925 in Geneva; and (x) Law No.  36 of 20 March 2019 on Accession of the Kyrgyz 
Republic to the Protocol.  
131 Ministry of Justice, Government Resolution No.  67 of 3 February 2017 on Approval of the Temporary 
Situation for the Procedure for Licensing of Import and Export of the Weapons and Military Equipment, and also 
Other Military Products, as Amended by Gover nment Resolution No.  14 of 22 January 2019. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/98768  and http://cbd.minj ust.gov.kg/act/view/ky -kg/12886?cl=ky -
kg.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 81 - 
 
  
Also, in 2017, another Resolution was passed on the Action Plan to implement UN Security 
Council Resolution 1540 during the period 2017 -19.132 According to the authorities, many of tasks 
outlined in the Plan were completed.  In view of their scale, some measures of the Plan are long 
term; in this regard, the Plan is currently being updated and, after it is agreed upon with the 
respective state authorities, will be approved by the Government.  
Table 3.18 Laws and regulations on export controls, 2020  
Instrument  Reference  Summary  
Law on Export Control  Law No.  30 of 
23 January 2003  Main law on export controls  
Measures for Implementing the National 
Export Control System  in the Kyrgyz 
Republic  Government Resolution 
No. 330 of 4  May 2004  Procedures for control, uniform 
conditions, and filling out of 
export licences  
About Modification of Some Legal Acts of 
the Kyrgyz Republic (Laws on Export Control 
and about the Licensing System in the 
Kyrgyz Republic)  Law No.  51 of 24 April 
2019 To ame nd the main Law on Export 
Control  
About Modification of Some Legal Acts of 
the Kyrgyz Republic in Connection with 
Signing of the Agreement on the Customs 
Code of the Eurasian Economic Union  Law No.  40 of 29 March 
2019 To amend the main Law on Export 
Contr ol 
Regulation of the Implementation of Export 
Control  Order No.  257 of 
27 October 2010  Revised regulations on the export 
control system in the Kyrgyz 
Republic  
About Approval of the Action Plan of the 
Kyrgyz Republic for 2017 -2019 on 
Implementation of the UN Security Council 
Resolution 1540  Government Resolution 
No. 443 of 24 July 2017  To implement the Action Plan to 
implement UN Resolution 1540  
About Modification of Government Order 
No. 257 of 27  October 2010 about Further 
Measures for Enhancement of National 
System of Export Control in the Kyrgyz 
Republic  Government Resolution 
No. 748 of 
17 November 2017  To make improvements in the law 
of 2010  
On Amendments to Government Resolution 
No. 67 of 3  February 2017 on Approval of 
the Temporary Situation on the Procedure 
for Licensing the Import, Export of Weapons 
and Military Equipment, as well as Other 
Military Products  Government Resolution 
No. 14 of 22 January 
2019 To make amendments to the 
provisional regulation  
On Approving the National Control List of 
the Kyrgyz Republic of Controlled Products  Government Resolution 
No. 197 of 2  April 2014  To approve the National Control 
List 
On Amending Government Resolution 
No. 197 of 2  April 2014 on Approving the 
National Control List of the Kyrgyz Republic 
of Controlled Products  Government Resolution 
No. 597 of 
21 September 2017  To amend the National Control 
List 
On Approval of the Temporary Situation for 
the Procedure for Licensing of Import and 
Export of the Weapons and Military 
Equip ment, and also Other Military Products  Government Resolution 
No. 67 of 3  February 
2017 To take appropriate measures to 
regulate and control the turnover 
of military goods  
About Ratification of the Convention on the 
Prohibition of Development, Production, 
Storage and Use of Chemical Weapons and 
about Their Destruction  Law No.  89 of 9 April 
2003 To ratify the Convention on the 
Prohibition of Development, 
Production, Storage and Use of 
Chemical Weapons and Their 
Destruction  
Source:  Ministry of Ju stice. Viewed at: http://cbd.minjust.gov.kg/ky -kg/npakr/search . 
3.2.4   Export support and promotion  
In December 2018, the Kyrgyz Republic passed a resolution on the Export Development 
Program of the Kyr gyz Republic for 2019 -22. It contains a programme of activities and an action 
plan to help improve the situation of export growth.133 Noting the general decline in imports and 
 
132 Ministry of Justice, Government Resolution No.  443 of 24 July 2017. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/100166 .  
133 Ministry of Just ice, Government Resolution No.  596 of 20 December 2018. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ru -ru/12807 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 82 - 
 
  exports during the period 2013 -17, with the exception of an increase in exports i n 2017, the Program  
aimed to put in place measures to further strengthen exports, realizing there were certain shortfalls, 
such as lack of access to finance, export promotion, and foreign markets. It points out that certain 
measures, such as joining the EA EU and improving the technical standards infrastructure, were 
already put in place to help exports.  
The Action Plan identifies 11 main goals grouped under several themes, such as access to 
finance or encouraging exports (Table 3.19). Certain goals are conc entrated in particular sectors, 
such as textiles and dairy. It envisions that exporters in these sectors will be provided with 
preferential access to finance, including subsides, and aid for marketing products in foreign markets.  
Table 3.19 Main elements of the Action Plan in the Export Development Program, 
2019 -22 
 Element  Summary  
1 Institutional development of exporting 
enterprises  Implement transparent accounting systems, 
corporate governance systems, and preferential 
lending for innovation in export enterprises  
2 Attracting financial resources and providing 
financing for exporters  Expand the government's subsidization of interest on 
loans; attract additional funds; improve climate for 
raising  funds of commercial banks  
3 Introduction of new financial instruments to 
provide financing for export -oriented 
enterprises  Expand the use of export financing instruments such 
as letters of credit, financing and leasing 
arrangements, guarantees, etc.; provide a legal 
framework for export insurance  
4 Reducing collateral requirements  Take measures to reduce collateral requiremen ts; 
increase funding to the Guarantee Fund  
5 Improving the national standards 
infrastructure, including product testing  Create an information system for exporters; translate 
directives; establish product requirements  
6 Ensuring product compliance with technical 
regulations in the export market  Introduce international standards; improve 
accreditation and training  
7 Encourage exports  Improve staffing; develop transport and logistics 
infrastructure; improve efficiency; support exports to 
foreign markets  
8 Dairy industry  Increase exports; increase volume and quality of 
production of milk and finished products  
9 Textile industry  Increase the production capacity of companies in the 
industry; expand access to finance; improve access 
to sales markets  
10 Fruit and vegetable processing  Increase the production capacity of companies in the 
industry; increase access to sales markets  
11 Green and innovative devices  Change the school curricula for a greater emphasis 
on sciences  
Source:  Ministry of Justice, Government Resolution No.  596 of 20 December 2018. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ru -ru/12807 . 
Guided by the Action Plan, the Kyrgyz Republic started to implement some of the measures. 
One such initiative is the establishment of an export trade portal ( www.export.gov.kg ) to provide 
information and create awareness for enterprises.134 The portal is established under the Agency for 
the Promotion and Protection of Investments of the Kyrgyz Republic with the main goal of promoting 
investments and assisting existing and potential domestic exporters to export and promote their 
goods in fore ign markets. The portal provides statistics, gives information on target markets and 
market opportunities, helps arrange participation in trade fairs or exhibitions, identifies and lists 
service providers that aid in exportation, and provides analytical ma terials for certain sectors or 
markets.135  
According to the Tax Code of the Kyrgyz Republic, the export of works and services is a 
VAT-exempt supply, and a zero VAT rate is applied for exportation to another EAEU member State.  
 
134 Ministry of Economy. Viewed at: http://mineconom.gov.kg/ru/post/6073 .  
135 Agency for the Promotion and Protection of Investments of the Kyrgyz Republic. Viewed at: 
https://www.export.gov.kg/ru .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 83 - 
 
  3.2.5   Export finance, insurance, an d guarantees  
The Kyrgyz Republic does not provide direct government support measures for export 
finance, insurance, or guarantees. However, as indicated in the report Export Development Program 
of the Kyrgyz Republic for 2019 -22 (Section 3.2.4), access to export financing is one element that 
was identified for improvement, as reportedly only 2.9% of the banks' loan portfolios in 2016  was 
for export financing.136 
However, there is certain funding available to promote or finance companies through the 
Russian -Kyrgyz Development Fund (RKDF) and the OJSC Guarantee Fund (GF). The RKDF operates 
in accordance with the Agreement between the Government of the Kyrgyz Republic and the Russian 
Federation of 24 November 2014. As such, it offers certain financing products: lending to 
self-sustaining projects in priority sectors, participation in the capital of business entities in the 
Kyrgyz Republic, and providing assistance to business entities. Through Exim banks, e.g. Czech 
Export Bank and Turkish Eximbank, it offers sho rt-term letters of credit.137 The RKDF acts as 
guarantor for an amount up to USD 1 million per letter of credit.  
The OJSC GF's main aim is to provide access to financing for SMEs in case of insufficient 
collateral.138 In 2013, the Law on Guarantee Funds in t he Kyrgyz Republic was adopted, which 
provided the legal framework for the GF. Thus, it was originally established in 2016 with 
KGS 72 million in government funding. Since that time, other funding has been provided by  the ADB . 
The GF's main roles is in pro viding guarantees, mainly to SMEs, but also to exporters. According to 
the authorities, there is no separate guarantee category for exports, as the Fund provides universal 
products.   
The Investment Promotion Agency runs an annual information campaign know n as Export 
Caravan for the business community in the region. Experts from the RKDF and the GF are involved 
in this initiative in order to increase awareness and recognition of what these funding entities can 
offer manufacturers and exporters.  
Article  41 of the EAEU Treaty also provides for measures for export development at the 
customs union level in line with WTO rules. For example, joint measures may include insurance, 
credits, leasing, promotion, and labelling activities. However, to date, no such measu res have been 
implemented at the EAEU level.  
3.3  Measures Affecting Production and Trade  
3.3.1   Incentives  
The Kyrgyz Republic has not made a notification of subsidies under Article  25 of the SCM 
Agreement since 2010. Available evidence suggests that various types o f financial incentives exist, 
notably under the tax regime.139  
a. Special tax allowances are provided in respect of research and development expenditures 
linked to the economic activity of a company.140  
 
136 Ministry of Justice, Government Resolution No.  596 of 20 December 2018. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ru -ru/12808?cl=ru -ru. 
137 RKDF, Letters of Credit with Export Banks . Viewed at: 
http://www.rkdf.org/ru/kreditovanie/kredity_dlya_msb/akkreditiv_s_eksportnymi_bankami .  
138 OJSC Guarantee Fund. Viewed at: http://gf.kg/en/ . 
139 See also Section 3.1.4.2 on exemptions from VAT. The Kyrgyz Republic's tax regime has been 
characterized as "very liberal", with a corporate tax rate and a top personal income tax rate of 10% and a VAT 
of 12%, although it has also been observed that the regime is somewhat biased against SMEs. UNCTAD, 
Investment Policy Review: Kyrgyzstan , 2016, pp.  13-14. Viewed at: https://unctad.org/syst em/files/official -
document/diaepcb2015d3_en.pdf . The Government has announced its intention to reform the taxation of 
SMEs. The Development Program of the Kyrgyz Republic for the Period 2018 -2022, 2018, 
paras.  3.3.4.8 -3.3.4.10.  
140 Tax Code of 2008, Article  197. WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 84 - 
 
  b. Agricultural and processing businesses enjoy exemptions from corporate income tax, VAT, 
and sales tax, and benefit from a reduction in property tax liabilities by 50% and a 
simplified computation of payroll taxes.141  
c. Amendments to the Tax Code adopted in July 2017 provide that the Government will once 
every fiv e years identify industrial activities that will benefit from preferential tax 
treatment in designated regions based on investment agreements with local authorities.142 
The preferential tax treatment consists of exemptions from corporate income tax and sale s 
tax, and a reduction in land tax. The tax benefits are granted for 5 years with a possible 
extension to 10 years. The list of eligible activities currently includes textiles, sewing, 
leather, food and agricultural processing, energy, assembly production,  and any 
export -oriented production.  
d. An exemption from corporate income tax applies to profits related to large investments 
using new equipment.143  
e. The production of electricity from renewable sources benefits from exemptions from 
corporate income tax and  VAT.144  
f. Free Economic Zones145 (FEZs) provide three categories of fiscal incentives: (i ) full 
exemptions from import and export duties and from other indirect taxes, including VAT, 
retail sales taxes, and levies on imported raw materials, intermediate inputs, machinery, 
and equipment when these are re -exported or used in the production in th e FEZs of goods 
for export; (ii) exemption from corporate income tax; and (iii) exemption from land and 
property taxes.146  
g. Pursuant to legislation adopted in 2011, a High -Technology Park was established in 
2013 for a period of 15 years. The relevant legisl ation147 stipulates that the main areas of 
the Park's activities are software development, the export of information technologies, and 
the provision of services from interactive service centres.148 The tax incentives provided 
by the High -Technology Park are:  (i) a full exemption from the VAT, retail sales taxes, and 
corporate income tax, provided that 80% of the firm's income is earned from exports or 
that 80% of its products are exported; (ii) a reduction of the personal income tax rate 
from 10 to 5%; and (i ii) a reduction, from 17.25% to 12%, of the percentage of the 
employees' average monthly salaries that employers must pay in social security 
contributions.149  
h. In addition to FEZs and the High -Technology Park, the Tax Code provides for five special 
taxation  schemes: (i) a mandatory patent regime150; (ii) a voluntary patent regime151; 
 
141 PwC, Worldwide Tax Summaries: Kyrgyzstan . Viewed at: https://taxsummaries.pwc.com/kyrgyzstan . 
142 The amendments were implemented through Government Decree No.  193 of 24 April 2019 about 
Measures  for Implementation of Articles 153, 159 -1, 213, 315, 330 and 344 of the Tax Codes of the Kyrgyz 
Republic.  
143 Deloitte, Tax and Investment Guide: Kyrgyz Republic , 2019, p.  12. Viewed at: 
https://www2.deloitte.com/content/dam/Deloitte/kz/Documents/kyrgyzstan/Tax&Investment%20Guide.pdf  
144 PwC, Worldwide Tax Summaries: Kyrgyzstan . Viewed at: https://taxsummaries.pwc.com/kyrgyzstan . 
145 The relevant domestic legislation relating to FEZs includes Law No.  6 of 11 January 2014, as 
amended, and Chapter 57 of the Tax Code of 2008. While attracting export -oriented activities and investment 
was one of the main original objectives of the FEZs, the available evidence suggests that this objective has not 
been achieved. To the extent that FEZs are operational, they tend to be oriented towards the domestic  market. 
In 2016, goods exported from FEZs accounted for only 5.3% of the total merchandise exports from the Kyrgyz 
Republic. CAREC, A Diagnostic Study of Kyrgyz Republic's Free Economic Zones and Industrial Parks , April 
2018, pp.  90-91. Viewed at: https://www.carecprogram.org/uploads/2018 -diagnostic -study -ecozones -kgz.pdf . 
146 CAREC, A Diagnostic Study of Kyrgyz Republic's Free Economic Zones and Industrial Parks , April 
2018, pp.  49 and 53. The exemptions from VAT, retail sales taxes, and corporate income tax are provided for 
in Chapter 57 of the Tax Code.  
147 Law No.  84 of 8 July 2011.  
148 Entities operating in the Park must derive 90% of their revenues from software  development, 
software exports, or call -centre operations.  
149 CAREC, A Diagnostic Study of Kyrgyz Republic's Free Economic Zones and Industrial Parks , April 
2018, p.  55. Viewed at: https://www.carecprogram.org/uploads/2018 -diagnostic -study -ecozones -kgz.pdf . 
150 Tax Code of 2008, Chapter 53.  
151 Tax Code of 2008, Chapter 54.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 85 - 
 
  (iii) a simplified tax regime based on the single tax (for SMEs)152; (iv) a contract -based 
tax regime153; and (v) a simplified tax regime based on retail sales tax and mining tax.  
In May 2019, the Government approved a new project aimed at providing support in the 
form of preferential credit funds to business entities engaged in manufacturing and industrial 
activities in the field of food processing and clothing, except for enterpris es located in Bishkek and 
Osh.154  
Several studies and reports by international organizations questioned the effectiveness of 
the various tax incentives granted by the Kyrgyz Republic and recommended that steps be taken to 
reduce their number and complexity .155 The authorities intend to "conduct a phased optimization of 
the existing system of tax preferences and benefits [and] introduce a ban on unfounded benefits 
and exemptions".156 An interdepartmental working group was created in December 2019 to prepare 
proposals for the elimination of ineffective tax incentive schemes.  
The RKDF was created in 2014. Its mission is to contribute to the modernization and 
development of the economy of the Kyrgyz Republic, the expansion and strengthening of the 
economic cooper ation between the Kyrgyz Republic and the Russian Federation, and the promotion 
of the integration of the Kyrgyz Republic into the EAEU.157 The RKDF lends to self -sustaining projects 
in priority sectors of the economy of the Kyrgyz Republic, participates in  the capital of business 
entities registered and operating in the Kyrgyz Republic, and provides assistance to business entities 
registered and operating in the Kyrgyz Republic in obtaining medium and long -term loans on 
acceptable financial terms.158 RKDF fi nancing accounts for about 10% of the banking system's loan 
portfolio and is provided on concessional terms.159  
The EAEU Treaty contains disciplines on the granting of subsidies in relation to industrial 
products and on the provision of state support to ag riculture.160 EAEU rules on industrial subsidies 
are to a large extent based on the rules of the WTO Agreement on Subsidies and Countervailing 
Measures but differ in several important respects. They prohibit export subsidies, import substitution 
subsidies, specific subsidies that cause injury to any section of the national economy of another 
member State, specific subsidies contingent upon local content or trade -balancing requirements, 
and specific subsidies that may cause serious prejudice to the interest o f other member States.161 
Subsidies other than specific and prohibited subsidies are deemed permissible and certain types of 
subsidies are treated as non -actionable. In addition to rules on procedural and substantive aspects 
of countervailing duty investiga tions by national competent authorities of the member States, the 
EAEU also grants important powers to the EEC to enforce implementation of the common rules on 
industrial subsidies.162  
The application of the EAEU substantive disciplines on industrial subsi dies is subject to 
country -specific temporary exceptions. When it acceded to the EAEU Treaty, the Kyrgyz Republic 
 
152 Tax Code of 2008, Chapter 55.  
153 Tax Code of 2008, Chapter 56.  
154 Information provided by the a uthorities.  
155 ADB, Kyrgyz Republic: Improving Growth Potential , September 2019, pp.  18-19. Viewed at: 
https://www.adb.org/sites/default/files/pu blication/648501/kyrgyz -republic -growth -potential.pdf ; CAREC, A 
Diagnostic Study of Kyrgyz Republic's Free Economic Zones and Industrial Parks , April 2018, p.  90. Viewed at: 
https://www.carecprogram.org/uploads/2018 -diagnostic -study -ecozones -kgz.pdf ; UNCTAD, Investment Policy 
Review. Kyrgyzstan , 2016, p.  16. Viewed at: https://unctad.org/system/files/official -
document/diaepcb2015d3_en.pdf ; and IMF (2013), Kyrgyz Republic: Selected Issues , IMF Country Report 
No. 13/176, pp.  10-12. Viewed at: https://www.imf.org/external/pubs/ft/scr/2013/cr13176.pdf . 
156 The Development Program of the Kyrgyz Republic for the Period 2018 -2022, para.  3.3.4.11.  
157 RKDF, Annual Report 2019 , p. 5. 
158 Information provided by the authorities.  
159 RKDF, Annual Report 2019 , pp. 7-8. 
160 EAEU Treaty, Article  93, Annex 28 (industrial subsidies), Article  95, and Annex 29 (state support to 
agriculture). See the Secretariat Factual Presentation in WTO doc ument WT/REG358/1, 13 July 2018, 
paras.  3.117 -3.125.  
161 EAEU Treaty, Annex 28, Section II.  
162 One aspect of this is the EEC's power to make rulings on whether a subsidy granted by a member 
State is consistent with the Voluntary Harmonization Agreement conc luded in May 2017 pursuant to 
paragraph  7 of Annex 28. If the EEC determines that a subsidy is in conformity with that Agreement, member 
States may not take action against such a subsidy under their domestic countervailing duty legislation.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 86 - 
 
  was granted a temporary exemption until 1 January 2017 from the rules on industrial subsidies in 
respect of certain customs duty and tax exemp tions applied in FEZs and free warehouses.163  
3.3.2   Standards and other technical requirements  
During the review period, most developments regarding standards, technical regulations, 
and conformity assessments resulted from the Kyrgyz Republic's accession to the EAEU. The 
2004 Law on the Basics of Technical Regulation, which remains the key law for standards and 
technical regulations, was amended in June 2019 to update it and bring it in line with the EAEU 
regulatory framework. Although many former Kyrgyz standards and technical regulations have been 
replaced by common EAEU technical regulations, the underlying regulatory acts of the 
Kyrgyz  Republic remain relevant.  
The Centre for Standardization and Metrology (CSM) under the Mi nistry of Economy is the 
principal government body involved in the development and adoption of standards and technical 
regulations. The CSM is a correspondent member of the ISO and Codex Alimentarius and an affiliate 
member of the International Electrotech nical Commission (IEC). The CSM is the national enquiry 
point for standards, while the TBT Enquiry Point and Technical Regulation Information Service under 
the Ministry of Economy is the national enquiry point for technical regulations and conformity 
asses sments.  
3.3.2.1   Standards  
In order to fulfil the requirements of EAEU technical regulations, the EAEU Commission 
approves the list of international and regional standards, or in their absence national standards. 
Voluntary application of relevant standards on this list is a sufficient condition of compliance with 
requirements of the relevant EAEU technical regulations. If standards on this list are not used, 
conformity assessment is carried out based on risk analysis.164 In the absence of an applicable 
international standard, regional standards, or national standards of other countries, may be used as 
a basis for EAEU measures.   
As at 1 July 2020, the CSM had adopted 6,911 standardization documents, 1,608 of which 
were harmonized with ISO standards, 691 of which were  based on IEC standards, and 245 of which 
were based on Codex Alimentarius guidelines or recommendations.165 The Kyrgyz Republic is 
currently developing national standards for certain types of food products.  
3.3.2.2   Technical regulations  
The EAEU Treaty states tha t "technical regulation of the EAEU members shall be used for 
the purpose of protecting life and (or) human health, property, the environment, protecting life and 
(or) health of animals and plants, prevention of actions misleading consumers as well as to e nsure 
energy efficiency and resource conservation within the EAEU. Adoption of technical regulations of 
the EAEU for other purposes is not allowed".166 The implementation of a common set of technical 
regulations is designed to establish a unified legal fram ework for ensuring product safety and 
protection against unsafe and falsified products within the customs territory, thus eliminating 
technical barriers in intra -EAEU trade.167 
International standards and recommendations form the basis for EAEU technical re gulations, 
except in cases where they do not comply with the purposes of adoption of technical regulations of 
the EAEU, including due to climatic and geographical factors, technological reasons, or other 
particularities.168 The EAEU Commission approves a Co mmon List of products to which technical 
regulations of the EAEU or national mandatory requirements of its member States may be applied. 
 
163 WTO document WT/REG366/1, 29 August 2018, para.  3.50.  
164 EAEU Treaty, Annex 9 (Protocol on Technical Regulation within the Eurasian Economic Union), 
para. 4. 
165 Information provided by the authorities.  
166 EAEU Treaty, Article  52(1).  
167 EEC, The Kyrgyz Republic in the Eura sian Economic Union, First Results , 2018.  
168 EAEU Treaty, Annex 9 (Protocol on Technical Regulation within the Eurasian Economic Union), 
para. 3. WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 87 - 
 
  A product subject to a technical regulation may be put into circulation within the EAEU only if it has 
complied with th e necessary conformity assessment procedures.  
 Under the Protocol on Transitional Provisions (Section 2.3.2.2), the Kyrgyz Republic was 
granted a general six -month transition period, and longer extensions ranging from one to four years 
for the adaptation to 22 specific EAEU technical regulations: (i) one year for technical regulations 
pertaining to machinery, explosive equipment, and farm tractors; (ii) two years for technical 
regulations pertaining to railway rolling stock, railway infrastructure, packagi ng, pyrotechnic 
products, children's and teens' products, toys, elevators, light industry products, food products and 
their labelling, juices, fat -and-oil products, furniture, specialized nutrition, explosives, food additives, 
milk, and meat; and (iii) fou r years for technical regulations pertaining to petrol and jet fuel, diesel 
and marine fuel, and heating oil.169 Prior to the adoption of these EAEU technical regulations, such 
products made by domestic enterprises could only be circulated within the Kyrgyz  Republic.170  
Pursuant to these transition arrangements, EAEU technical regulations gradually became 
applicable in the Kyrgyz Republic during the period 2017 -19.171 The authorities indicate that there 
currently are 43 EAEU technical regulations in force in the Kyrgyz Republic, and a further 5 that are 
planned to be put into effect by 2022.172 Among the 44 national technical regulations adopted prior 
to the Kyrgyz Republic's accession to the EAEU, 19 remain in force, and 7 of them establish 
requirements for pr oducts not included in the EAEU Common List ( Box 3.3 ).  
Box 3.3 National technical regulations establishing product requirements not included in 
the EAEU Common List  
Source:  Information  provided by the authorities.  
3.3.2.3   Conformity assessment  
The EAEU Treaty calls for harmonization of rules and approaches towards accreditation in 
accordance with international standards while ensuring the objectivity, impartiality, and competence 
of the accredi tation bodies of the member States. Accredited bodies for conformity assessment 
(certification bodies and testing laboratories) are listed in the Unified Register of Conformity 
Assessment Bodies of the EAEU. According to the EAEU Treaty, the accreditation bodies of the 
member States must be independent and not compete with each other. An application for 
 
169 Annex to the Accession Protocol of the Kyrgyz Republic to the EAEU, para.  50. 
170 Annex to the Accession Proto col of the Kyrgyz Republic to the EAEU, para.  56. See also WTO 
document WT/REG366/1, pp.  19-20. 
171 Specifically, 16 EAEU technical regulations entered into full force in the Kyrgyz Republic on 
1 January  2017; 18 entered into force in August 2017, but with t ransition periods; and 1 came into force on 
12 August 2019. An Action Plan adopted in March 2017 terminated the validity of national technical regulations 
on subjects covered by EAEU technical regulations.  
172 The provisions of EAEU Technical Regulation CU T R 002/2011 on the Safety of High -Speed Rail 
Transport do not apply due to the absence of such facilities in the Kyrgyz Republic. With regard to  the domestic 
production of petroleum products, subject to EAEU Technical Regulation CU TR 013/2011 on Requirements for 
Automobile and Aviation Gasoline, Diesel and Marine Fuel, Jet Engine Fuel and Fuel Oil, as from 
12 August  2019, the Board of the EAEU Com mission decided that conformity assessment documents may be 
issued in accordance with national legislation for domestically produced oil products until 12 August 2023.  Law No.  151 of 8 May 2009 o n Environmental Safety  
Law No.  224 of 29 November 2011 o n Radiation Safety  
Government Decree No.  444 of 5 August 2013 o n the Safety of Veterinary Medicines  
Government Decree No.  646 of 25 September 2012 o n the Safe Storage of Medicines in Pharmaceutical 
Organizations and Healthcare Organizations and the Sanitary Regime of Pharmaceutical Organizations  
Government Decree No.  137 of 6 April 2011 o n the Safety of Medicines for Medical Use  
Government Decree No.  113 of 5 March 2013 o n the Safety of Medical Implants  
Decree No.  320 of 26 May 2012 , approved by Government, o n Medicines Manufactured in Pharmacies  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 88 - 
 
  accreditation as a conformity assessment certification body is addressed to the accreditation body 
of the member State where the applicant is registered as a legal entity.173 
The Kyrgyz Centre of Accreditation (KCA) under the Ministry of Economy performs 
accreditation of certificated bodies and testing laboratories. On 23 October 2013, the Kyrgyz Republic 
joined the multilateral Agreement on Mutual Recognition  of International Cooperation on Laboratory 
Accreditation (ILAC) and became a full member of ILAC with respect to accreditation of testing 
laboratories according to international standard ISO/IEC 17025. ILAC suspended the status of the 
KAC in 2014, but fol lowing corrective actions and confirmation of its effectiveness, the KCA had its 
status as signatory body reinstated on 2 October 2018. The KCA more recently took steps to 
implement new versions of international standards on accreditation systems.  
Accordi ng to the authorities, the Kyrgyz Republic has made substantial efforts to ensure the 
necessary infrastructure to apply the standards and technical regulations of the EAEU. This includes 
the establishment, equipment, and modernization of a number of testin g laboratories. Funds for this 
work were provided by the Russian Federation.  
The Kyrgyz Republic has submitted 17 notifications related to TBT measures applicable 
within the EAEU (including one revision and one corrigendum) since it formally joined the EA EU in 
August 2015.   
Up to end -March 2020, the Kyrgyz Republic, jointly with the Russian Federation and 
Kazakhstan, was a subject to two specific trade concerns raised at the TBT Committee. These were 
related to: (i ) pharmaceutical products; and (ii) safety of toys. The Kyrgyz Republic has never used 
the TBT Committee to raise its own concerns regarding measures proposed or implemented by other 
Members.  
3.3.3   Sanitary and phytosanitary requirements  
As with technical regul ations and standards, the membership of the Kyrgyz Republic in the 
EAEU involves a sanitary and phytosanitary (SPS) regime of shared and exclusive competencies 
between the EEC and the national regulatory authorities. During the review period, 
the Kyrgyz  authorities introduced legislation that implements a common framework for EAEU 
member States, including revisions and amendments to national legislation to bring it line with EAEU 
requirements.  
The EAEU rules include a unified regime for sanitary, veterinary, and SPS quarantine 
measures (Table 3. 20). SPS legislation at the EAEU level comprises a set of decisions taken at 
Council, Board, and EEC levels, and includes rules governing the application of veterinary and 
sanitary measures; the interaction of authorized bodies of the member States in the application of 
temporary measures; joint inspections and sampling; laboratory testing, confirmation of conformity, 
and the issuance of veterinary certificates; and the establishment of maximum permissible le vels of 
residues of veterinary drugs in non -processed food products of animal origin (Table A3. 4). A certain 
number of technical regulations were also adopted, covering food safety in general, as well as specific 
regulations addressing the safety of milk a nd dairy products, meat and meat products, fish and fish 
products, grain, marking and packaging of food products, and feed and feed additives. The EEC 
established lists of high -risk and low -risk goods that may be subject to SPS quarantine at the border 
of the Customs Union.174  
Table 3.20 Customs Union unified sanitary, veterinary, and SPS quarantine measures  
Treaty of the Customs Union on phytosanitary measures  
Common list of products subject to sanitary and e pidemiological surveillance (control)  
Procedure of state sanitary and epidemiological surveillance (control) over persons crossing the Customs Union customs 
border, goods subject to control that are being moved through the customs border and customs territory of the Customs 
Union  
Common sanitary and epidemiological and hygienic requirements for products subject to sanitary and epidemiological 
surveillance (control)  
Common product (goods) safety documents  
Customs Union Agreement on Sanitary Measures  
Common list of goods subject to veterinary control  
 
173 EAEU Treaty, Article  54(3).  
174 On the website of the EEC, these lists are available only in Russian.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 89 - 
 
  Treaty of the Customs Union on phytosanitary measures  
Common veterinary requirements for goods subject to veterinary control (surveillance)  
Procedure of carrying out veterinary control at the customs border and on the customs territory of the Cust oms Union  
Procedure of carrying out joint inspections and sampling of goods (products) subject to veterinary control (surveillance) on 
the territory of the Customs Union member States and third countries  
Consolidated list of highly dangerous and quaranti ne diseases of animals  
Common templates of veterinary certificates (movement, import)  
Customs Union Agreement on Plant Quarantine  
List of Quarantine Products subject to quarantine and phytosanitary control (surveillance) while being imported to the 
common customs territory of the Customs Union  
Procedure of carrying out the quarantine and phytosanitary control (surveillance) at the external border of the Customs 
Union  
Procedure of carrying out the quarantine and phytosanitary control in respect of q uarantine products that are moved within 
the customs territory of the Customs Union  
Source:  UNECE, Regulatory and Procedural Barriers to Trade in Kyrgyzstan  (ECE/TRADE/412), 2015.  
At the national level, Parliament adopted two SPS -related laws – one on vet erinary medicine, 
and another on the identification of animals and products of animal origin – during the review period. 
The Government passed a number of resolutions covering veterinary and SPS issues (Table A3. 5). 
In addition, the State Inspectorate for Veterinary and Phytosanitary Safety (SIVPS) developed 
strategic plans for  the prevention and control of murrains, small animal plague, rabies, and sheep 
pox; the fight against brucellosis, anthrax, and echinococcosis; and the control of bovine leukaemia. 
It also established rules for epizootic monitoring; the taking and selection of pathological material, 
blood, and feed to be submitted for laboratory examination, analysis, and research; and the fight 
against especially dangerous and socially significant di seases of farm animals. In addition, it issued 
instructions containing recommendations for ensuring the biological safety of animal owners when 
handling animals, and for the active surveillance of animals to diagnose diseases, as well as standard 
operating  procedures for: (i) personal protective equipment; (ii) procedure sampling in the field; 
(iii) areas of control (supervision); (iv) sending samples to a national or regional laboratory; (v) the 
delivery of samples to international laboratories; (vi) the d isposal of small animal carcasses and 
materials; and (vii) the decontamination of an infected farm. Moreover, on 2 May  2019 the SIVPS 
issued an order approving the methods of sampling for laboratory studies carried out in the 
framework of active epizootic monitoring.   
Prior to the accession of the Kyrgyz Republic to the EAEU, road maps were developed for 
the harmonization of Kyrgyz legislation and the alignment of its customs infrastructure, including 
facilities for SPS controls and quarantine, with EAEU r equirements. With no detailed assessment of 
the outcome of work undertaken, it was decided at the level of Heads of State to abolish customs 
controls on the Kyrgyz -Kazakh border as from 12 August 2015. The Council removed the quarantine 
control system effe ctive from 18 November 2015. However, this did not resolve all issues. Due to 
objections from Kazakhstan, phytosanitary controls were maintained until 26 October 2016, and 
veterinary -sanitary controls are still performed at the Kyrgyz -Kazakh border because  the Kazakh 
authorities question whether the veterinary inspection system in the Kyrgyz  Republic is equivalent 
to the systems of other EAEU member States.175 Some progress has been made. Low -risk goods, 
e.g. processed meat and dairy products that underwent heat treatment, have been exported to the 
Russian Federation since February 2016. Dairy products from certain Kyrgyz enterprises are also 
admitted into Kazakhstan, but subject to enhanced laboratory control.  
Responding to Kazakh claims that Kyrgyz milk - and dairy -processing firms lack proper 
laboratories to certify export products, major efforts were undertaken (with donor funding) in 2017 
to enhance the capacity of Kyrgyz facilities. The laboratories at the State Sanitary and 
Epidemiological Service (Bish kek) and at Osh were re -equipped and modernized. These are national 
centres of veterinary diagnostics and expertise. In addition, 12  zonal and inter -district veterinary 
laboratories were repaired, and the construction of zonal centres of veterinary diagnos tics and 
expertise was initiated in Balykchi, Batken, Karakol, and Talas. Funds to equip the veterinary 
laboratories were made available through Government Decision No.  224-r of 27 July 2018. According 
to the authorities, the national centres in Bishkek an d Osh are now fully equipped and have received 
accreditation according to ISO/IEC standards 17025:2017 and 2019.   
The SIVPS, as by the authorized body, examines exports of goods subject to veterinary 
control are examined and then issues certificates. Acco rding to the authorities, a Food Safety Law 
 
175 EEC, The Kyrgyz Republic in the Eurasian Economic Union, First Results , 2018.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 90 - 
 
  presented in 2017, that, inter alia , would have reduced the number of inspection agencies from 
22 to 11, has not been adopted.  
At the time of its previous Review in 2013, the Kyrgyz Republic did not have a national 
enquiry point or national notification authority for SPS issues. These were subsequently established. 
The Kyrgyz Republic notified the WTO Secretariat that three institutions serve as its national SPS 
Enquiry Points: (i) the Department of Disease Prevention and State Sanitary Epidemiological 
Supervision (Ministry of Health); (ii)  the Ministry of Agriculture and Melioration; and (iii)  the SIVPS. 
The Department of Technical Regulation and Metrology (Ministry of Economy) is the national 
notification a uthority. Since 2015, the Kyrgyz Republic has notified three laws (the Laws on 
Quarantine of Plants, about Veterinary, and about Animal Identification), two Government 
Decrees176, one Government Resolution177, and two EAEU Technical Regulations on Safety of Grain 
(CU TR 015/2011 and CU  TR 015/2012).  
No specific trade concerns were raised in the WTO Committee on Sanitary and Phytosanitary 
Measures relating to measures maintained by the Kyrgyz Republic during the review period. 
Likewise, the Kyrgyz Republic ha s not raised any specific trade concerns regarding measures 
imposed by other Members.  
3.3.4   Competition policy and price controls  
3.3.4.1   Competition  
Competition is another area that has undergone significant developments since 
the Kyrgyz  Republic joined the EAEU, as the EAEU Treaty imposes a number of disciplines and rules 
at the level of the customs union on its members. This, in turn, required the Kyrgyz Republic to 
amend and update its competition framework in order to be compliant with  EAEU rules. So as to 
have enough time to make these adjustments, the Protocol on Transitional Provisions granted the 
Kyrgyz Republic 18 months for the EAEU Treaty provisions on competition and natural monopolies 
to become applicable. This period expired o n 12 February 2017, after which the Kyrgyz Republic has 
adhered to EAEU rules on these issues.  
The main disciplines of the EAEU Treaty on competition are contained in Section XVIII 
(Articles  74-77) and Annex 19, which set out the common principles and rul es of competition; 
Section XIX and Annexes 20, 21, and 22 are concerned with the rules on natural monopolies, 
including access to services of natural monopolies in certain sectors. Thus, the main disciplines 
include prohibitions of competition -restricting economic agreements among market entities, the 
abuse of dominant business position, the coordination of economic activity, and unfair competition. 
The member States are therefore required to provide for this minimum set of prohibitions in their 
national la ws. Furthermore, EAEU member States, may, within their national competences, establish 
additional requirements or restrictions as long as these do not conflict with the EAEU rules.  
The EEC also has an important role in competition; it is tasked with monit oring the 
observance of common competition rules in transboundary markets. It specifically examines 
applications on existence of signs of violations, initiates and examines cases of violation of common 
competition rules, renders determinations, adopts bind ing decisions, requests and receives 
information from the authorized competition bodies in member States, and reports and disseminates 
information. At the national level, the State Agency for Antimonopoly Regulation was created by a 
Government Resolution i n 2013, as the authorized state body executing antimonopoly policy and 
regulation in all sectors of the economy except the fuel, banking, and energy sectors.178 The main 
 
176 These were Government Decrees No.  580 of 7 October 2014 on Approval of Regulation on Procedure 
of Con ducting Sanitary Epidemiological Supervision (Control) of Persons, Vehicles, Goods and Cargo 
Transported Through Border Point of the Kyrgyz Republic, and No.  568 of 2 October 2014 on the Authorized 
Body in the Field of Sanitary Epidemiological Welfare of t he Population of the Kyrgyz Republic.  
177 Government Resolution No.  175 of 1 April 2015 on Introduction of Changes and Amendments in 
Some Decisions of the Government of the Kyrgyz Republic was notified as a trade facilitation measure, 
exempting certain food  products coming from Afghanistan, Azerbaijan, Belarus, China, Kazakhstan, the 
Russian Federation, Tajikistan, and Uzbekistan from additional supporting documentation requirements (WTO 
document G/SPS/N/KGZ/5, 14 December 2015).  
178 Ministry of Justice, Gover nment Resolution No.  271 of 17 May 2013. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/94359 . Antitrust regulation in the banking services market is carried WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 91 - 
 
  tasks of the Agency are the development and defence of competition for the effective fu nctioning of 
the markets; implementation of measures to prevent monopolistic activity and unfair competition; 
ensuring a balance of interest between consumers and monopolies; implementation of consumer 
rights protections; and implementation of protections regarding advertising. The Agency has key 
oversight and regulation in five key areas – natural monopolies, state and municipal paid services, 
antitrust laws, consumer protection, and advertising (Table 3. 21). The main work of the Agency is 
aimed at protect ing and developing competition in the commodity markets; preventing, limiting, and 
suppressing monopolistic activities and unfair competition; and providing conditions for the creation 
and effective functioning of the markets of the Kyrgyz Republic.  
The Ky rgyz Republic was active during the review period in updating its main competition 
laws to align with the EAEU rules; thus, several laws underwent revision in 2015, and some additional 
amendments have also been undertaken since that time (Table 3. 22). The 2011 Law on Competition 
was amended several times during 2015 -19 to harmonize it with the EAEU Model Law on 
Competition, although its main framework remains intact.179 A number of changes were incorporated 
on: clarification to determine the "dominant positi on"; introduction of a new concept of "economic 
and statistical surveillance"; revision of the concepts of monopolistically high and low prices; 
clarification of the concept of "vertical agreements"; introduction of conditions on concerted actions 
of econo mic entities; and introduction of state and municipal preferences. One of the other 
developments during the review period was the amendment of Law No.  149 of 8 August 2011 on 
Natural Monopolies to eliminate direct state regulation of so -called "permitted" monopolies, and such 
rules now only apply to "natural" monopolies.180 As a consequence, the State Agency for 
Antimonopoly Regulation's regulatory and monitoring aspect has ceased and intervention would be 
only in cases of violation of the antimonopoly legis lation.  
Table 3.21 Statistics on the State Agency for Antimonopoly Regulation's activities, 
2015 -19 
 2015  2016  2017  2018  2019  
Number of natural monopolies  83 84 75 77 77 
  of which regional  74 74 70 71 71 
  of which federal  9 10 5 6 6 
Regulation of natural monopolies       
  Settlements considered  150 62 110 34 26 
  Price and tariff issues  973 133 275 49 103 
  Contractual issues  19 13 8 6 2 
  Orders (Art.  12) 45 23 12 10 0 
State services       
  Price/tariffs agreed for state 
services  10,869  11,808  2,871  3,515  1,284  
  Fines and economic sanctions 
for state services  
(KGS 1,000)  6,268  8,011  22,643  7,618  102,961  
Monitoring compliance of 
provisions of the Law on 
Competition       
   Number of 
complaints/statements received  36 75 55 70 45 
   Total decisions on violations:  63 56 65 94 97 
       Signs of violation of Art.  8  6 19 15 30 20 
       Signs of violation of Art.  9 23 167 36 33 20 
       Consideration of application 
of business entities in Arts.  11 
and 12  0 0 11 .. 27 
       Orders issued  36 82 90 83 69 
 
out by the NBKR in accordance with regulatory legal acts binding on commercial banks and other financial and 
credit institutions licensed and regulated by the NBKR.  
179 Ministry of Justice, Law No.  22 of 21 January 2015 about Modification and Amendments in Some 
Legal Acts of the Kyrgyz R epublic. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/205450 . The Law 
retains provisions on abuse of dominant position, unfair competition, acts aimed at preventing or restricting 
compe tition, antitrust requirements for procurement, forced divesture, obligation to submit information, etc. 
Ministry of Justice, Law No.  96 of 22 July 2019 on Amendments to the Law of the Kyrgyz Republic on 
Competition. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/111943 .  
180 The Law on Natural Monopolies provides that natural monopolies include electric and thermal energy, 
natural gas, oil and oil products, rail transportation services, air  navigation services, airport services, public 
telecommunication and postal services, and centralized water supply and sewage.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 92 - 
 
   2015  2016  2017  2018  2019  
   Penalties and economic 
sanctions (KGS million)  119 124 226 317 7,993  
Economic and statistical 
observation for the activities of 
business entities that occupy a 
dominant position in the 
commodity markets of the 
Kyrgyz Republic       
  Total number of dominant 
business entities:  .. .. 112 114 113 
      Regional  .. .. 93 96 95 
      Federal  .. .. 19 18 18 
  Analyses and reviews  50 115 57 89 77 
Compliance with legislation in 
the field of consumer protection 
and advertising       
  Appeals from consumers 
examined  228 410 339 358 329 
  Violations identified  266 495 223 204 193 
   Orders identified  181 269 286 305 217 
   Administrative fines (KGS 
1,000)  365.1  97.0 295.2  318.4  .. 
Compliance with the Law on 
Advertising       
  Inspections  325 318 309 34 190 
  Violations identified  438 457 571 32 334 
  Orders issued  324 331 423 511 175 
  Administrative fines (KGS 
1,000)  302.3  287.0  445.0  1,030.0  280.0  
.. Not available.  
Source:  State Agency for Antimonopoly Regulation, Annual Activity Reports . Viewed at: 
http://antimonopolia.gov.kg/index.php?act=category&id=14 ; and information provided by the 
authorities.  
Table 3.22 Main rules, legislation, and regulations on competition, 2020  
Reference  Date  EAEU or 
national 
legislation  
EAEU Treaty, Section XVIII (General Principles and Rules of 
Competition), Section XXIX (Natural Monopolies), and Annex 19 
(Protocol on Common Principles and Rules of Competition)  29 May 2014  EAEU  
Supreme Eurasian Economic Council Decision No.  50 on Model Law on 
Competition  24 October 2013  EAEU  
Law No.  116 on Competition, as amended  22 July 2011  National  
Government Resolution No.  183 on Amending Government Resolution 
No. 304 of 20 May 2015 on Approving the Procedure for Forming and 
Maintaining the State Register of Economic Entities Occupying a 
Dominant Position in the Commodity Markets  of the Kyrgyz Republic  18 April 2019  National  
Law No.  22 on Amendments and Additions to Some Legislative Acts of 
the Kyrgyz Republic  21 January 2015  National  
Law No.  40 on Internal Trade in Kyrgyz Republic  20 March 2002  National  
Law No.  23 on Amendments and Additions to the Law on Advertising  21 January 2015  National  
Law No.  9 on Amendments and Additions to the Law on Natural and 
Permitted Monopolies in the Kyrgyz Republic  13 January 2015  National  
Law No.  225 on Amendments and Additions to So me Legislative Acts 
of the Kyrgyz Republic  13 August 2015  National  
Law No.  96 on Amending the Law on Competition  22 July 2019  National  
Law No.  90 on Consumer Protection, as amended  10 December 1997  National  
Law No.  149 on Natural Monopolies  8 August 2011  National  
Resolution No.  431 on Approval of the Rules for Monitoring 
Compliance with the Antimonopoly Legislation of the Kyrgyz Republic 
in the Process of Economic Concentration  21 June 2012  National  
Resolution No.  365 on Approval of the Rules for the Consideration of 
Cases of Violations of the Antimonopoly Legislation of the Kyrgyz 
Republic  2 June 2012  National  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 93 - 
 
  Reference  Date  EAEU or 
national 
legislation  
Government Resolution No.  461 on Approval of the Procedure for 
Conducting Analysis of the State of Competition in the Kyrgyz Re public 
Commodity Market  7 July 2015  National  
Government Resolution No.  364 on Approval of the Rules on 
Identifying and Preventing Agreements and Concerted Actions 
Restricting Competition  2 June 2012  National  
Government Resolution No.  365 on Approval of the Rules of 
Consideration of Cases of Violations of the Antimonopoly Legislation of 
the Kyrgyz Republic  2 June 2012  National  
Government Resolution No.  404 on Approval of the Procedure of 
Conducting Economic and Statistical Monitoring of Econ omic Entities 
Included in the State Register of Economic Entities that Dominates the 
Commodity Markets of the Kyrgyz Republic  7 August 2019  National  
Supreme Eurasian Economic Council Decision No.  29 on Approval of 
the Criteria for Classifying the Market as Cross -Border  19 December 2012  EAEU  
EEC Council Decision No.  117 on the Methodology for Determining 
Monopolistically High (Low) Prices  17 December 2012  EAEU  
EEC Council Decision No.  118 on the Methodology for Calculation and 
the Procedure for Fines for Violating the General Rules of Competition 
in Cross -Border Markets  17 December 2012  EAEU  
EEC Council Decision No.  97 on the Procedure for Considering 
Applications (Materials) on Violation of the General Rules of 
Competition in Cross -Border Markets  23 November 2012  EAEU  
EEC Council Decision No.  98 on the Procedure for Investigating 
Violations of the General Rules of Competition in Cross -Border Markets  23 November 2012  EAEU  
EEC Council Decision No.  99 on the Procedure for the Co nsideration of 
Cases of Violation of the General Rules of Competition in Cross -Border 
Markets  23 November 2012  EAEU  
EEC Council Decision No.  7 on the Methodology for Assessing the 
State of Competition  30 January 2013  EAEU  
Source:  EEC. Viewed at: http://eec.eaeunion.org/comission/department/cpol/ ; and information provided by 
the authorities.  
The State Agency for Antimonopoly Regulation is also guided by its Strategi c Program for 
the Development of Antimonopoly Regulation for 2018 -2025 that provides direction for the 
development of competition policy; it contains seven strategic goals.181 In 2018, there were 
17 specific objectives or tasks identified pursuant to the St rategic Program, including such issues as 
formation and maintenance of the list of goods for which a minimum level of control prices is 
established, providing industry and the population with coal at affordable prices, maintaining a 
balance of interests be tween consumers and suppliers providing drinking water to consumers, and 
improving the country's antimonopoly legislation.182 Similarly, in 2020, a number of objectives were 
set out, inter alia : (i) Stage 2 of amending the Law on Competition as part of alig ning it with the 
EAEU legal framework; it has now been completed and sent to the EAEU; (ii) participation in 
investigations indicating violations of the general rules of competition in the framework of the EEC's 
work in cross -border markets; and (iii) a pl an to form a Single Market to advertise the services of 
the EAEU.183 
Law No.  40 of 20 March 2002 on Domestic Trade, as amended, regulates trading activity in 
the territory of the Kyrgyz Republic. In particular, it sets out the legal relationship among entit ies as 
a result of trading activities and ensures equality and competition among entities in the trading 
process. It furthermore provides for the support and protection of certain socially significant trade 
 
181 State Agency for Antimonopoly Regulation, Strategic Program for the Development of Antimonopoly 
Regulation for 2018 -2025. View ed at: http://antimonopolia.gov.kg/index.php?act=material&id=3705 .  
182 State Agency for Antimonopoly Regulation, Action Plan -Obligations of the Director of the State 
Agency for Antim onopoly Regulation under the Government of the Kyrgyz Republic for 2018 . Viewed at: 
http://antimonopolia.gov.kg/index.php?act=material&id=2820 . 
183 State Agency for Antimonopoly Regul ation, Action Plan of the State Agency for Antimonopoly 
Regulation under the Government of the Kyrgyz Republic for the Implementation of the Strategic Program for 
the Development of Antimonopoly Regulation for 2020 . Viewed at: 
http://antimonopolia.gov.kg/index.php?act=material&id=3500 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 94 - 
 
  activities in which the local governments have a role in determining these activities and related 
benefits.  
Other amendments to laws related to competition include the Laws on Consumer Protection 
from 1998, on Advertising from 1998, and on Natural and Permitted Monopolies from 2011. These 
were updated in  2015 to also align with EAEU competition rules.184 
3.3.4.2   Price controls  
The Kyrgyz Republic has two main regimes for price controls: one that sets minimum import 
prices on certain goods from other EAEU member States (Section 3.1.1.3.1), and another that 
determin es prices on goods, works, and services of natural monopolies in the domestic market. 
Domestic market prices are controlled pursuant to the Law on Natural Monopolies that designates 
natural monopoly entities.185 The State Agency for Antimonopoly Regulation determines the set price 
for goods and services of these natural monopolies, pursuant to Resolution No.  85 of 10 February 
2012 on Approval of the Single Register (List) of Public Services Provided by State Bodi es, Their 
Structural Divisions and Subordinate Institutions and Resolution No.  6 of 14 January 2015 on 
Approval of the Basic Register of Municipal Services Provided by Local Authorities of the 
Kyrgyz  Republic. In addition, the EAEU Treaty, through Article  77 and Annex 19, Section VII, also 
provides disciplines on state price regulation for goods not from natural monopolies or designated 
in a list of exempt products.186 These price regulations may be introduced in exceptional 
circumstances, e.g. natural disas ters and emergencies, provided they cannot be solved by other 
methods having less impact on the state of competition. Further, they can be applied only on certain 
socially important goods as an interim measure, generally not to exceed 90 calendar days.  
The Kyrgyz Republic also has provisions for temporary price control measures, pursuant to 
the Law on Domestic Trade, for socially significant goods. The Kyrgyz Republic's Resolution listing 
socially significant goods from 2009 was modified several times durin g the review period.187 As at 
1 January 2020, there were 14 categories of products, basically foodstuffs and fuel, on which the 
Government can invoke price control measures on a temporary basis, i.e. not more than 90 calendar 
days, in order to ensure their economic accessibility  when their price increases 20% or more during 
the month.188 On 13 March 2020, in response to the COVID -19 pandemic, the Government issued 
Resolution No.  155 to impose these temporary measures on 11 categories of products for a period 
not exceeding 90 calendar days.189 These temporary measures expired on 13 June 2020. In 
April 2020, another Resolution was passed, increasing the number of categories of socially significant 
goods to 25  with the inclusion of products such as salt, tea, baby  food, fish, and millet.190  
Other products were also subject to price controls, pursuant to various government 
legislation, including coal, cigarettes, medicines, and certain services (Table 3. 23). Due to a sharp 
increase in coal prices, a Resolution was passed in 2017 to restrain the growth rate of prices and to 
ensure timely supply of coal to the population during autumn/winter 2017 -18; the measure was in 
place for 90 days. Price regulations wer e put in force on medicines in 2019 with the approval of 
Interim Rules for the regulation of prices of medicinal products following a move to compulsory 
 
184 Ministry of Justice, Law No.  38 of 21 February 2015 on Modification and Amendments in the Law of 
the Kyrgyz Republic about Protection of the Rights  of Consumers. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/205459 .  
185 See list above.  
186 These exempt products include: (i)  natural gas; (ii)  liquefied gas for household needs; (iii) electric 
and heat energy; (iv)  vodka, liquor, and other alcoholic beverages with strength exceeding 28% (minimum 
price); (v) ethyl alcohol from food raw material (minimum price); (vi) solid fuel and heating fuel; 
(vii) production of nuclear energy cy cle; (viii) kerosene for household needs; (ix) petroleum products; 
(x) medications; and (xi) tobacco products.  
187 Ministry of Justice, Government Resolution No.  242 of 22 April 2009 on State Regulation of Prices for 
Different Types of Socially Important Goo ds. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -
kg/59697?cl=ky -kg#p1 .  
188 Wheat, rye flour; bread; pasteurized milk with a fat content of 2.5 -3.2%; vegetable oil (sunflower  
and cotton); cream; meat (beef, mutton, pork); sugar; rice; pasta; chicken eggs; potatoes; coal; gasoline 
AI-80 and AI -92, diesel fuel; and liquified gas.  
189 Ministry of Justice, Government Resolution No.  155 of 13 March 2020 on State Regulation of Prices 
for Different Types of Socially Important Goods. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/157469 . 
The products include wheat flour, bread, milk, vegetable oil, cream, meat, sugar, r ice, pasta, eggs, and 
potatoes.  
190 Information provided by the authorities.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 95 - 
 
  medical insurance. The authorized body in the healthcare sector sets the prices, while the State 
Agency  for Antimonopoly Regulation and its territorial divisions carry out state control through 
inspections for compliance. The Interim Rules are the first step towards a permanent measure 
expected to be put in place in 2021. Minimum retail prices for filtered and unfiltered cigarettes were 
established by a Resolution in 2016; the State Tax Service is responsible for monitoring compliance. 
Prices are scheduled to rise each year from KGS 50 to KGS 90 over the period 2018 -21. The price 
increase was instituted in o rder to improve the health of the population and reduce the harmful 
effects of tobacco.191  
Table 3.23 Products and services subject to price control  
Product  Legal reference  Overview  
Medicines  Resolution No.  579 of 29 October 2019  Interim price regulation 
mechanism per an electronic price 
catalogue, pending final 
provisions expected in 2021  
Coal Resolution No.  745 of 16  November 2017  State regulation of the price of 
coal due to the high pace of 
growth in order to ensure 
sustainability  
Cigarettes  Order No.  668 of 13 December 2016  Minimum retail price of cigarettes 
that rises each year  
List of socially 
important goods 
(basic foodstuffs  and 
fuels)  Resolution No.  155 of 13 March 2020  Temporary measures in response 
to the COVID -19 pandemic  
Construction, design 
works, construction 
material, operation of 
construction 
machines  Order No.  2 of 28 March 2016  Approval of uniform prices for 
these  goods and services upon 
agreement with the authorized 
body 
Source:  Compiled by the Secretariat from Ministry of Justice website. Viewed at: http://cbd.minjust.gov.kg/ .  
3.3.5   State trading, state -owned enterprises , and privatization  
In notifications submitted in June 2015 and May 2020 under Article  XVII:4(a) of the GATT 
1994 and paragraph 1 of the Understanding on the Interpretation of Article  XVII, the Kyrgyz Republic 
stated that since its accession thr ough 2019 it had not maintained any state  trading enterprises 
within the meaning of the working definition set forth in the Understanding.192  
While the Secretariat Report prepared for the previous Review identified "a number of 
entities that appeared to have state -trading privileges pursuant to the provisions of Article  XVII"193, 
the authorities indicated that the list of state  trading entities in that Report194 is outdated and that 
currently foreign trade operations are carried out by OJSC TNC Dastan and by the state -owned 
enterprise Bishkek Stamping Plant.  
State ownership remains an important factor in the Kyrgyz economy. As at 1 June 2020, 
there were 104 state -owned enterprises (SOEs) and 52 joint stock enterprises in which the State 
was a sha reholder.195  
 
191 Ministry of Justice. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/98717 . 
192 WTO documents G/STR/N/5/KGZ, G/STR /N/6/KGZ, G/STR/N/8/KGZ, and G/STR/N/9/KGZ, 
29 June 2015; G/STR/N/7/KGZ, G/STR/N/10/KGZ, G/STR/N/11/KGZ, G/STR/N/12/KGZ, G/STR/N/13/KGZ, 
G/STR/N/14/KGZ, and G/STR/N/15/KGZ, 29 June 2015; and G/STR/N/16/KGZ, G/STR/N/17/KGZ, and 
G/STRN/18/KGZ, 28 May 2020.  
193 WTO document WT/TPR/S/288/Rev.1, 21 January 2014, para.  3.74.  
194 The Report identified four state trading enterprises: Kyrgyz Pechat (import and export of postal 
stamps); Kyrgyz Gaz (natural gas); Temir SE (scrap and wastes of ferrous and non -ferrous met als); and 
Kyrgyzalko (spirit production).   
195 Information provided by the authorities. Of the 52 joint stock companies with State ownership, 32 
are operating. At the time of the previous Review, there were 159 state -owned enterprises and 59 joint stock 
enterprises in which the State, represented by the Fund for State Property Management, was a shareholder. 
WTO document WT/TPR/S/288/Rev.1, 21 January 2014, para.  3.149.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 96 - 
 
  
The Kyrgyz Republic initiated a comprehensive and rapid privatization process in the early 
1990s.196 As described in the previous Review, the process comprised three stages: a first stage 
involving small -scale privatization of entities in servi ces, trade, and housing and construction; a 
second stage that comprised sales of shares of large and medium -sized state enterprises in 
manufacturing, transport, and construction; and a third stage that focused on the large strategic 
entities of monopolized  sectors, privatization of insolvent or bankrupt enterprises, and completion 
of coupon privatization.197 According to a recent European Bank for Reconstruction and Development 
(EBRD)  report, "[p]rivatisation allowed the private sector to grow rapidly since independence but 
privatisation efforts have slowed in the past decade".198 The Program for State Property Privatization 
in the Kyrgyz Republic for 2015 -2017 listed companies offered for both full and partial privatization, 
including strategic companies such  as Kyrgyzstan Airways and Alfa Telecom. The Concept of 
Reforming the State Owned Property, approved in June 2015, aimed to reduce state participation in 
non-strategic sectors. Nine privatizations have since been completed in non -strategic sectors.199 
Rationalization of state ownership in the economy has been an important policy objective in 
recent years, as most SOEs in the Kyrgyz Republic operate at a loss or do not operate at all.200 In 
order to create an effective system for management of public assets an d property, the 2013 -2017 
Development Program calls for measures to improve the quality of management of state property 
and to increase revenue through: (i)  the replacement of the existing control of SOEs' costs and 
prices by the State Agency for Antimonop oly Regulation antimonopoly authority with a mechanism 
focused more on the need to generate operating profits; (ii)  a full-scale inventory count of all state 
assets and the creation of a Registry of State Property; (iii)  introduction of economic performanc e 
indicators for SOEs, creation of mechanisms for independent auditing of SOEs, and of a new body 
for the control of compliance with performance indicators; (iv)  selection of executive personnel of 
SOEs on a competitive basis; and (v)  introduction of publi c-private partnership principles for the 
management of SOEs.201 
Similarly, the Development Program 2018 -2022 provides that the Government will introduce 
systematic and effective management of state assets by ensuring the full functioning of the 
interagency automated information system to complete a full inventory of all state assets. Electronic 
trading platforms will be introduced to increase the transparency and openness of privatization 
processes and the provision of state property for rent. The Programme also provides that 
non-strategic SOEs will be liquidated and privatized, that a review will be undertaken of the 
management system of SOEs, and that SOEs will implement the best practices of corporate 
governance.202  
According to information provided by the  authorities, many of the measures envisaged in 
the 2013 -2017 and 2018 -2022 Development Programs regarding the improvement of the corporate 
governance of SOEs have recently been implemented. These include the reorganization, 
transformation, or liquidation of SOEs203; a clearer delineation of the respective responsibilities of 
sectoral state bodies and the State Property Management Fund; the introduction of centralized 
monitoring of the financial and economic activities of SOEs; the creation of a unified stat e property 
registry and an electronic trading platform for bidding for the right to conclude lease agreements for 
 
196 Pomfret, R. (2019), The Central Asian Economies in the Twenty -First Century: Paving a N ew Silk 
Road, Princeton University Press, pp.  157-158.  
197 WTO document WT/TPR/S/288/Rev.1, 21 January 2014, para.  3.148.  
198 EBRD, Kyrgyz Republic Diagnostic , May 2019, p.  6. The report notes that a total of 7,357 state 
assets have been privatized since inde pendence.  
199 Information provided by the authorities. Law No.  94 of 23 May 2008 on Strategic Objects of the 
Kyrgyz Republic lists the sectors that are considered strategic.  
200 According to the EBRD,  less than 10% of the SOEs generate most of the profits rea lized by SOEs. 
EBRD, Kyrgyz Republic Diagnostic , May 2019, p.  6. In July 2019, then Prime Minister Abylgaziyev was reported 
to have observed that 51 out of 106 state enterprises and 22 out of 52 joint stock companies with state 
shareholding were not profit able and that half of the SOEs were not operating. Times of Central Asia , "Does 
Kyrgyzstan Need Another State Management Company?" 17 July 2019. Viewed at: 
https://www.timesca.com/index.php/news/26 -opinion -head/21394 -does-kyrgyzstan -need-another -state-
management -company . 
201 National Sustainable Development Strategy for the Kyrgyz Republic for the Period 2013 -2017, 
pp. 69-70. Viewed at: https://www.un -
page.org/files/public/kyrgyz_national_sustainable_development_strategy.pdf . 
202 The Development Program of the Kyrgyz Republic for the Period 2018 -2022, paras.  3.5.1-3.5.2.  
203 The authorities indicate that 45 SOEs have recently been reorganized, 94 transformed, and 10 
liquidated.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 97 - 
 
  state property; the adoption of methodological guidelines for the use of key performance indicators 
to assess the efficiency and financial sta bility of SOEs; the appointment of managers through 
transparent and competitive processes; and the introduction of a model charter for SOEs.204  
It would appear that there are currently no new plans to undertake large -scale privatizations 
and that the focus  of policy is on measures to improve the performance of SOEs.205 As an alternative 
to privatization, the Government is considering mechanisms such as public -private partnerships, 
investment lease, and trust management of property.  
While the Kyrgyz Republic made a commitment in its WTO Protocol of Accession to provide 
annual information for as long as its programme of privatization existed and on other issues related 
to its economic reform as relevant to its WTO obligations206, it has not made such annual 
notifications.  According to the authorities, all relevant information is provided through the periodic 
trade policy reviews.  
Until 2015, SOEs and joint stock companies in which the State was a shareholder were also 
covered by the Law on Natural and Permitted Monopolies.207 As a consequence of the Kyrgyz 
Republic's accession to the EAEU, this law was amended in January 2015 to abolish the category of 
"permitted monopolies". The State Registry of Natural Monopolies of the Kyrgyz Republic currently 
lists 78 entities.208 These i nclude 6 SOEs and 16 joint stock companies in which the State is a 
shareholder.  
The EAEU Protocol on Trade in Services and Investment contains provisions on "state 
participation", which require member States to accord national treatment to persons of other  
member States regarding their participation in privatization. They also require member States to 
ensure that: (i)  juridical persons in their territory that the member States control, or in the capital 
in which they participate, conduct their activities in  accordance with commercial considerations and 
in a non -discriminatory manner; and (ii) such persons do not enjoy special rights or privileges by 
virtue of the State's control or participation in their equity.  
3.3.6   Government procurement  
As is the case with sev eral trade subjects, the Kyrgyz Republic is gradually phasing in the 
provisions of the EAEU Treaty in the area of government procurement. Pursuant to Section XV of 
Annex 1 to the Protocol on Transitional Provisions, there was a two -year transitional period  
established after the entry into force of the agreement:  
• For the Kyrgyz Republic to introduce national treatment in the field of government 
(municipal) procurement for EAEU member States;  
• For the Kyrgyz Republic to introduce electronic government procurem ent using an 
electronic digital signature; and  
• For EAEU member States to provide the Kyrgyz Republic with national treatment in the 
field of government (municipal) procurement.  
Thus, these transitional provisions have expired, and the measures have been p ut in place 
or are underway. As regards the national treatment regime, Law No.  72 of 3  April 2015 on Public 
Procurement was amended in 2019 to include a new Article  4-1 with the following provision: "when 
procuring organizations are purchasing goods from a  foreign state or a group of foreign states, 
works, goods, or services performed by suppliers (contractors), the national regime is applied on 
equal terms with goods of Kyrgyz origin, works, services, respectively performed by suppliers 
(contractors) from the Kyrgyz Republic, pursuant to the conditions provided for by this Law and 
 
204 Many of these measures were implemented by Government Resolution No.  468 on the Stre amlining 
of the Activities of SOEs, which was adopted in September 2019.  
205 EBRD, Kyrgyz Republic Diagnostic , May 2019, p.  6.  
206 WTO document WT/ACC/KGZ/26, 31 July 1998, para.  14.  
207 WTO document WT/TPR/S/288/Rev.1, 21 January 2014, para.  3.155.  
208 State A gency for Antimonopoly Regulation, State Register of Natural Monopolies of the Kyrgyz 
Republic . Viewed at: http://antimonopolia.gov.kg/documents/reestr/reestr_es.docx .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 98 - 
 
  international treaties that have entered into force in the manner prescribed by law, to which the 
Kyrgyz Republic is a party".209 
In order to improve and digitalize the public procurement system in terms of embedding 
crypto algorithms by introducing cryptographic protection means, as well as implementing 
subparagraph  7 of paragraph 1 of Article  88 of the EAEU Treaty, where the member  States provide 
unhindered access to potential suppliers of the member States to participate in procurement carried 
out in electronic format, a project was implemented to introduce electronic signatures on the web 
portal and for their mutual recognition by  EAEU member States. Software was developed and is 
being tested. From September to December 2020, an information campaign was planned and a 
transitional period was provided for the acquisition of an electronic digital signature by users of the 
Public Procu rement portal. Full transition to digital signature was expected from 1  January 2021.  
EAEU rules are contained in Section XXII of the EAEU Treaty (Article  88: Government 
(Municipal) Procurement) and Annex 25 (Protocol on Regulation of Procurement). The mai n elements 
of Article  88 include: (i)  granting national treatment to EAEU member States; (ii)  ensuring openness 
of information and transparency of procurement; (iii)  excluding third countries from receiving a more 
favourable treatment than EAEU member Stat es; (iv)  granting unhindered access to suppliers of 
member States so they can participate in procurement conducted electronically through the mutual 
recognition of electronic signatures; (v)  ensuring the existence of authorized regulatory and 
supervisory a uthorities; (vi)  developing competition and opposition to corruption in procurement; 
and (vii)  establishing liabilities for violations. Coverage includes all municipal procurement of goods, 
works, and services, and other purchases financed by the budget as  stipulated in the procurement 
legislation of the member State; it excludes procurement by the national central banks and 
procurement of state secrets.  
Annex 25 expands on these basic principles by specifying tendering methods (Box 3. 4), 
requiring the for mation and maintenance of a Register of Unfair Suppliers, providing rules on fees 
and participation, and conditions for the procurement contract ; ensuring openness of information 
and transparency of procurement ; providing national treatment to other member  States ; and 
safeguarding rights of those participating in procurement. The type of procurement method aligns 
in certain cases with those in the national legislation of the Kyrgyz Republic, but in other cases do 
not (Box 3. 4). Article  16 of the Law on Public Procurement sets out the five procurement methods, 
and Articles 17 -21 further expand and explain the methods.  
Box 3.4 Types of procurement methods prescribed in Annex 25 to the EAEU Treaty and 
in the procurem ent law of the Kyrgyz Republic  
EAEU Treaty, Annex 25  Kyrgyz Law on Public Procurement, Article  16 
Open tender  
 
 
 
 
 
Open electronic 
auction  Where two -stage procedures and 
preliminary qualifying selection 
could be applied; price proposals 
request; per paras. 1 and 5 of 
Appendix 1  
 
Per para.  7 of Appendix 1; 
Appendix 4 lists goods, works, 
and services required to be 
procured through auction  One-step The main method of 
procurement; the number of 
suppliers is not limited; when the 
planned amount exceeds tw ice 
the maximum threshold amount, 
a two -envelope method is to be 
used (Art. 28 -1) 
Two-step Held by a two -stage method if 
certain conditions are met  
  Simplified  Finished products that do not 
require special manufacturing, as 
well as works and services with a 
specific description when the 
amount is below the maximum 
threshold amount  
  Price reduction  This method can be used in 
specified cases as outlined in 
Art. 20. In particular there  needs 
to be established quality 
 
209 Ministry of Justice, Law No.  4 of 11 January 2019 on Public Procurement. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/111831 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 99 - 
 
  EAEU Treaty, Annex 25  Kyrgyz Law on Public Procurement, Article  16 
standards and a competitive 
market of at least three 
suppliers.  
Procurement 
from a single 
source or a 
single supplier   Direct 
conclusion of the 
contract  Procuring Entity signs a 
procurement contract after 
monitoring the pr ices, subject to 
certain conditions  
Request for 
proposals  If it is provided by the 
procurement legislation of a 
member State;  per para.  6 of 
Appendix 1, Appendix 2, and 
paras. 10, 42, 44, 47, 59 and 63 
of Appendix 3    
Exchange trades  If it is provided by the 
procurement legislation of a 
member State    
Commodity 
exchange  Procurement of commodity 
exchange goods covered by 
Appendix 4    
Source:  EAEU Treaty, Annex 25; and Ministry of Justice, Law No.  72 of 3  April 2015 on Public Procurement. 
Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/111125 . 
In order to improve procedures, reduce corruption in the procurement system, and  align its 
domestic legislation with the new rules of the EAEU, the Kyrgyz Republic enacted a new law on 
government procurement  in 2015, replacing the old law from 2004.210 Since its entry into force, it 
has been amended seven times. The main emphasis is on eliminating corruption schemes, increasing 
transparency, and increasing responsibility for the use of budgetary funds through the introduction 
of electronic information technologies.211 Overall, the revised Law covers almost the entire process 
of government procurement, from planning to conclusion of contracts, as well as the redistribution 
of some functions of the authorized proc urement body, procuring organizations, and tender 
commissions. Decision -making, as it was done previously by the Tender Commission, was 
transferred to the procuring organizations that may independently take decisions where authorized 
when the procurement m ethod does not require tendering. The new Law also incorporates the goals 
and principles for procurement as elaborated in Article  88 of the EAEU Treaty, such as ensuring 
optimal and efficient expenditure of funds used for procurement, openness of informati on, and 
transparency of procurement.212 
New concepts or innovations were introduced in a number of areas, including:  
• a requirement of a full reimbursement of expenses to the State if purchases were made 
without complying with the Law, i.e. without a tender;  
• the implementation and terms of procedures for using Framework Agreements as a 
procurement method;  
• an obligation to record underperforming suppliers on the Register of Unfair Suppliers (the 
so-called Black List of Suppliers); and  
• the introduction of the concept of anti -dumping measures in public procurement.  
The process of addressing complaints was also overhauled in the new legislation. The 
previous three -phase process was replaced with a two -phase process, with the main entity being an 
independent Inter agency Commission for the Review of Complaints and Protests. ThisCommission 
was originally composed of 15 people divided into thee subgroups of five people ( five procurement 
 
210 Ministry of Justice, Law No.  72 of 3 April 2015 on Public Procure ment. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/111125 . 
211 This is also in line with its commitments on transparency in its National Action Plan (Section 2).  
212 See Article  88 of the E AEU Treaty for the full list of objectives and principles.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 100 - 
 
  specialists, five NGOs, and five members of the public), but in 2018 it was amended. As at 
11 October  2017, consideration of complaints and appeals is carried out in accordance with the 
Regulations on the Procedure for the Operation of the Independent Interdepartmental Commission 
for the  Consideration of Complaints and Protests, as well as for the inclusion in the database of 
unreliable and unscrupulous suppliers (contractors), which is published on the public procurement 
web portal.  
There has been a steady rise in complaints since 2015, which has been attributed in part to 
the move to electronic submission of complaints. In 2017, there were 781 complaints and 
102 appeals sent to the Interagency Commission.213 By comparison, there were no more than 
10 complaints a year prior to 2015. A majority, about half, of the complaints received were deemed 
justified by the Commission. The complaints were most numerous in respect of the one -step method, 
followed by the sim plified method.  
By Government Resolution No.  10 of 16 January 2016, the Kyrgyz Republic introduced new 
thresholds that replaced those in the old resolution from 2005. These thresholds aligned the 
thresholds for works to those of goods and services, and ad justed the levels by raising both the 
minimums and maximums (Box 3. 5). A further amendment in 2017 raised the minimum threshold 
for the first category of enterprises from KGS  800,000 to KGS 1,000,000.214 
Box 3.5 Thresholds  
For state (municipal) institutions, enterprises, joint stock companies in 
which the State and/or local governments, together or separately, own 
50% or more of shares, and other business entities created at the 
expense of state funds, where the a uthorized capital is up to 
KGS 100 million, the following threshold amounts are allocated for the 
purchase of goods, works and services:  - minimum: KGS 1 million    
- maximum: KGS 3 million    
For state (municipal) enterprises and joint stock companies in w hich the 
State owns 50% or more of shares, where the authorized capital is 
more than KGS 100 million, the following threshold amounts are 
allocated for the purchase of goods, works and services:  - minimum: KGS 3 million    
- maximum: KGS 15 million   
Source:  Ministry of Justice, Government Resolution No.  10 of 16 January 2016 about Approval of Threshold 
Amounts in Purchases of the Goods, Works and Services, as amended. Viewed at: 
http://cbd .minjust.gov.kg/act/view/ky -kg/98303 .  
The Kyrgyz Republic recognizes the important role small and medium -sized businesses play 
in its domestic economy and is actively working to reform its public procurement system in order to 
provide support to them and the domestic economy. In January 2019, several amendments to the 
Law on Public Procurement were made to favour domestic suppliers. Article  4 was amended to 
include the principle of national treatment with two main exceptions: (i) a 20% preference allowance  
on the bid price of goods produced by domestic suppliers; and (ii) for works, a preference of 20% is 
given to domestic contractors provided that they use at least 70% local labour resources and at 
least 30% local raw materials.215 Furthermore, Article  2 was amended to remove production and/or 
personification of documents of national importance and special state forms from the scope of the 
Law216, and Article  21 (Part 4, para.  20) was amended to allow procurement through direct 
contracting for the protection of the domestic market and the development of the national economy. 
An instruction from the Ministry of Finance from 2015, as amended, gives guidance on applying 
 
213 Department of Public Procurement at the Ministry of Finance Kyrgyz Republic, Detailed Analysis of 
Complaints and Appeals for 2017 . Viewed at: http://zakupki.gov.kg/popp/home.xhtml?cid=1 ; and 
http://zakupki.gov.kg/popp/download?key=kHniv3woQPogYaMafwKvneyMZbrtQdRCqmQwbJaYwRFGlTVvFdwJv
Ev4XzmTWSN8Q991SEiB5Aw%3D . 
214 Ministry of Justice, Resolutions No. 10 of 16 January 2016 about Modification of the Order of the 
Government of the Kyrgyz  Republic and No. 225 of 19 April 2017 about Approval of Threshold Amounts in 
Purchases of the Goods, Works and Services. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -
kg/99937?cl=ky -kg.  
215 According to Article  3 of the Law, domestic suppliers or contractors are individual entrepreneurs or 
legal entities register ed as such in the territory of the Kyrgyz Republic.  
216 The Law also excludes procurement of national banks, state secrets, haemodialysis services, and 
goods, works, services within the implementation of investment projects financed by international 
organiza tions.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 101 - 
 
  benefits to domestic suppliers.217 It reaffirms the obligation to provide discounts on the prop osed 
price of up to 20% for goods produced in the territory of the Kyrgyz Republic, including the similar 
provisions on works, in comparison with tenders for goods of foreign manufacture, and that suppliers 
from the EAEU are to be granted the same preferen ces.  
At the time of the previous Review, the Kyrgyz Republic was working towards 
e-procurement, which was gradually implemented and became operational in 2014 with the 
first five pilot procuring organizations. In 2015, the migration of over 600 procuring organizations 
and the creation of an electronic catalogue of government procurement was launched, and thus all 
tenders began to be held in electronic format with full uptake after June 2015 with the creation of 
the new platform and the entry into  force of the new Law on Public Procurement.218 All procurement 
is now therefore conducted electronically through the Government's procurement portal 
(http://zakupki.gov.kg ). The portal continues to be improved in stage s, e.g. it is now integrated with 
the Treasury's automated information system for control of cost estimates and with the state tax 
service for the exchange of information.  In 2018, the portal was amended to allow the procurement 
of projects funded by inter national organizations. Work is currently underway to develop and 
implement the consulting services' module, which provides for a point assessment system. Ministry 
of Finance Order No.  175-P of 14  October 2015 on the Rules of Electronic Public Procurement 
provides the main rules for electronic procurement.219 
The total number of tenders published including their amount generally increased gradually 
over the review period, although it slightly declined in 2019 compared with 2018, which had the 
highest figures  to date. Goods, as opposed to works or services, remained the main type of entity 
procured. Government agencies funded from the federal and local budgets were the main procuring 
entities, accounting for approximately two thirds of the value of all tenders , although joint stock 
companies, in which the State had more than 50% stake also remained significant, accounting for 
about one quarter of the value of all tenders. In terms of procurement methods, the direct conclusion 
of the contract method was the domi nant method (about one half of all tenders), followed by the 
simplified method (Table 3. 24).  
Table 3.24 Overview of government procurement, 2017 -19 
 2017  2018  2019  
Total tenders published (number)  105,770  132,906  118,580  
Successfully completed tenders (number)  68,217  87,159  77 477  
Total tenders published (KGS billion)  72.8 94.3 100.5  
Successfully completed tenders (KGS billion)  61.8 69.9 63.2 
By type of entity procured (KGS billion)  
Goods  36.6 43.5 33.8 
Works  19.7 16.9 18.1 
Services  5.5 9.5 11.3 
By type of enterprise (KGS billion)  
State institutions of the federal budget  26.2 29.6 31.1 
Government agencies on local budgets  9.7 11.2 10.1 
Joint stock companies with a state share of more than 
50%  16.3 18.2 14.9 
State -owned enterprises  9.6 10.9 7.1 
By tendering methods (% of total tenders)  
Simplified  16.1 44.4 34.9 
Direct conclusion of contract  14.1 42.2 48.1 
One-step 69.8 13.2 16.6 
Price reduction  0 0.18 0.3 
One-step (to conclude a framework agreement)  0 0.002  0.097  
Two-step  0 0.002  0.003  
Source:  Data provided by the authorities and Ministry of Finance. Viewed at: 
 http://www.minfin.gov.kg/ru/novosti/novosti/departament -goszakupok -v-proshl om-godu-uspeshno -so.  
As at September 2018, there were 4,010 purchasing organizations registered for conducting 
procurement. The largest purchasing entities, as measured by the value of announced tenders, were 
 
217 Ministry of Justice, Methodical Instruction No.  175-P of 14 October 2015 on the Application of 
Benefits to Domestic Suppliers (Contractors). Viewed at: http://cbd.minjust.gov.kg/act/v iew/ky -kg/200016 .  
218 Initially, the platform accommodated only the one -stage, simplified, and direct conclusion of contract 
methods of procurement in electronic format.  
219 Ministry of Justice. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/200015 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 102 - 
 
  the OAO Electric Station s, the State Informati on Technology and Communications Committee, and 
the Chek -Abad Rural Council.220 Together, these three entities accounted for one quarter of the total 
value tendered in 2018. The category of works for building repair was the largest single category of 
procur ement in terms of value, followed by building materials.  
Foreign participation in the Kyrgyz Republic's government procurement amounted to about 
9% of the total value of procurements in 2018, i.e. KGS 6.48  billion out of KGS  69.9 billion.  The 
major foreign  suppliers were the Russian  Federation, Lithuania, and Kazakhstan (Table 3. 25).221 
Table 3.25 Data on contracts concluded with non -residents of the Kyrgyz Republic, 2018  
Non-resident  No. of contracts  Amount (KGS)  
Total  319 6,482,681,823  
Russian Federation  194 3,311,141,848  
Lithuania  4 998,238,408  
Kazakhstan  57 748,769,273  
China  18 392,024,528  
Uzbekistan  4 390,023,391  
Estonia  1 270,653,243  
Romania  1 114,010,772  
Czech Republic  3 62,587,986  
United Kingdom  4 58,429,366  
Germany  8 46,641,324  
Ukraine  6 40,192,935  
Israel  1 17,497,844  
Hong Kong, China  3 9,920,331  
Belgium  1 7,959,947  
Belarus  2 7,613,924  
Turkey  9 4,336,792  
India  1 2,368,913  
Italy  2 271,000  
Source:  Information provided by the authorities.  
The Kyrgyz Republic agreed to pursue membership in the WTO Agreement on Government 
Procurement when it acceded to the WTO in 1998. An application for Observer status was submitted 
in 1999, and a formal offer was submitted in 2002. At the time of the previo us Review, it was noted 
that questions and answers were exchanged during 2002 -03, updated responses to the checklist of 
issues were received in 2009, after which the accession process stagnated for a number of years. In 
December 2015, the Kyrgyz  Republic s ubmitted its Law on Public Procurement to the Committee on 
Government Procurement, followed shortly by its revised initial offer in January 2016, and thus its 
accession process recommenced.222 During 2016 -19, negotiations were ongoing with a number of 
quest ions and answers on revised offers and draft laws. A communication was received in June 2019 
with the notification of the 2015 Law on Public Procurement, as amended.223 At a meeting of the 
Committee in October 2019, the Kyrgyz Republic expressed its continu ed interest in pursuing 
membership as it remained  a priority, and informed members about its current status of accession. 
Further, the Kyrgyz delegation informed the Committee that all comments and suggestions received 
were carefully studied and taken into  account and work was underway to improve its legal framework 
on procurement. There were plans to revise the offer, and the Kyrgyz Republic was working on its 
third offer.224 
 
220 Official Public Procurement Portal, Report for the Period 01.01.2018 -31.12.2018 . Viewed at: 
http://zakupki.gov.kg/popp/home.xhtml?cid =1.  
221 Official Public Procurement Portal, Report for the Period 01.01.2018 -31.12.2018.  
222 WTO documents GPA/ACC/KGZ/2, 7 January 2016; and GPA/ACC/KGZ/3, 26 May 2016.  
223 WTO document GPA/S/1, 21 February 2020.  
224 Information provided by the authorities.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 103 - 
 
  3.3.7   Intellectual property rights  
3.3.7.1   Overview of legal and institutional framework  
The pri ncipal dedicated laws on the protection of intellectual property rights in 
the Kyrgyz  Republic are225:  
• Law No.  6 of 14 January 1998 on Copyright and Related Rights, as amended;  
• Law No.  7 of 14 January 1998 on Trademarks, Service Marks and Appellations of Origin, 
as amended;  
• Law No.  8 of 14 January 1998 on Patents, as amended;  
•  Law No.  27 of 30 March 1998 on Commercial Secrets, as amended;  
• Law No.  28 of 30 March 1998 on the Legal Protection of Computer Programs and 
Databases, as amended;  
• Law No.  29 of 31 March 1998 on the Legal Protection of Integrated Circuit Topologies, as 
amended;  
• Law No.  79 of 13 June 1998 on the Legal Protection of Breeding Achievements, as 
amended;  
• Law No.  74 of 16 July 1999 on Service Inventions, Utility Models and Industrial Designs, 
as amended;  
• Law No.  24 of 19 February 2001 on Patent Attorneys, as amended;  
• Law No.  79 of 17 March 2006 on Secret Inventions, as amended;  
• Law No.  116 of 31 July 2007  on the Protection of Traditional Knowledge, as amended; and  
• Law No.  116 of 22 July 2011 on Competition, as amended.  
The legal framework for the protection of intellectual property rights also comprises: 
(i) relevant provisions of the Constitution and the  Civil Code (Part II, Section 5), the Civil Procedure 
Code, the Criminal Code (Articles 199 and 218), the Code on Violations (Article  104), and the 
Customs Code (Section IX); (ii) a large number of implementing decrees, regulations, decisions, and 
orders; and (iii) international treaties.226  
Regarding copyright and related rights, the Kyrgyz Republic is a party to the WIPO Copyright 
Treaty; the WIPO Performances and Phonograms Treaty; the Convention for the Protection of 
Producers of Phonograms Against Unau thorized Duplication of their Phonograms; the Rome 
Convention for the Protection of Performers, Producers of Phonograms and Broadcasting 
Organizations; the Berne Convention for the Protection of Literary and Artistic Works; the Marrakesh 
Treaty to Facilita te Access to Published Works for Persons Who Are Blind, Visually Impaired or 
Otherwise Print Disabled; the Agreement on Cooperation in the Field of the Protection of Copyright 
and Neighbouring Rights; and the Agreement on Cooperation in the Area of Legal P rotection of 
Intellectual Property and on Establishment of Interstate Council on Legal Protection of Intellectual 
Property.  
Regarding industrial property rights, the Kyrgyz Republic is a party to the Paris Convention 
for the Protection of Industrial Prope rty; the Patent Cooperation Treaty; the Patent Law Treaty; the 
Eurasian Patent Convention; the Protocol Amending the Agreement on Trade -Related Aspects of 
 
225 WIPO, Country Information: Kyrgyzstan -WIPO Lex . Viewed at: 
https://wipolex.wipo.int/en/legislation/profile/KG ; and information provided by the authorities.  
226 WIPO, Country Information: Kyrgyzstan -WIPO Lex.  Viewed at: 
https://wipolex.wipo.int/en/legislation/profile/KG ; and information provided by the authorities.   WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 104 - 
 
  Intellectual Property Rights; the Strasbourg Agreement Concerning the International Patent 
Classifica tion; the Budapest Treaty on the International Recognition of the Deposit of Microorganisms 
for the Purposes of Patent Procedure; the Hague Agreement Concerning the International 
Registration of Industrial Designs; the Locarno Agreement Establishing an Int ernational 
Classification for Industrial Designs; the Singapore Treaty on the Law of Trademarks; the Trademark 
Law Treaty; the Madrid Agreement Concerning the International Registration of Marks; the Protocol 
Relating to the Madrid Agreement Concerning the  International Registration of Marks; the Vienna 
Agreement Establishing an International Classification of the Figurative Elements of Marks; the Nice 
Agreement Concerning the International Classification of Goods and Services for the Purposes of 
Registrati on of Marks; the Nairobi Treaty on the Protection of the Olympic Symbol; the Agreement 
on Mutual Preservation of Inter -State Secrets in the Area of Legal Protection of Inventions; and the 
Agreement on Cooperation in the Repression of Offenses in the Field of Intellectual Property.  
The main government body in the field of intellectual property is the State Service for 
Intellectual Property and Innovation under the Government of the Kyrgyz Republic (Kyrgyzpatent). 
Its mandate is to provide legal protection i n respect of all categories of intellectual property and to 
develop mechanisms to encourage innovative activity.227 It is responsible for the development of the 
legislative framework for the protection of intellectual property rights, and it grants titles o f 
protection to intellectual property objects. Within Kyrgyzpatent, a special Appeal Board exists that 
has jurisdiction to consider disputes arising out of decisions on the registration of intellectual 
property. Enforcement of intellectual property rights is under the competence of other state entities, 
such as law enforcement, customs, and judicial bodies.  
3.3.7.2   Main policy and legal developments during the review period  
During the period 2012 -16, the Kyrgyz Republic's policy on intellectual property rights was 
based on the National Strategy for the Development of Intellectual Property and Innovations adopted 
in 2011.228 The adoption of the Strategy was motivated to an important extent by a recognition of 
the need to address the problem of production and trade in counterfeit goods. The strategy identified 
the following priority areas: creating favourable conditions for the development of innovative activity 
and use of intellectual property objects; promoting modernization of the economy by intensifying 
the transfer  of advanced technologies; raising awareness of the general public to the role and value 
of intellectual property; and creating an efficient system of intellectual property protection.229 The 
authorities consider that the main positive results achieved unde r this strategy are the establishment 
of an environment to create and use the outcome of intellectual activities, an increase in the number 
of students and youths engaged in scientific and technical creativity, and increased public awareness 
of the role an d significance of intellectual property.  
In 2017, the Government adopted the State Program for the Development of Intellectual 
Property for the Period 2017 -2021.230 Its main purpose is to create the conditions for the functioning 
of the intellectual proper ty market by 2021. The main priorities are: capacity building for the creation 
of objects of intellectual property; the improvement of mechanisms to obtain the right and protection 
for objects of intellectual property; and the creation of conditions for th e use of objects of intellectual 
property.231 The Government also adopted a Concept for Innovative Development of 
the Kyrgyz  Republic.  
The intellectual property rights regime was amended in several respects during the review 
period.  
First, with respect to  copyrights and related rights, there were amendments to Law No.  14 of 
21 January 2014 on Copyright and Related Rights232, Law No.  149 of 7 July 2015 on the Legal 
Protection of Integrated Circuit Topologies233, Law No.  178 of 20 July 2015 on the Protection of 
Traditional Knowledge234, and Law No.  45 of 3 May 2018 on the Legal Protection of Programs for 
 
227 Decree No.  131 of 20 February 2012, as amend ed.   
228 Decree No.  593 of 23 September 2011.  
229 WTO document WT/TPR/S/288/Rev.1, 21 January 2014, para.  3.140.  
230 Decree No.  424 of 6 July 2017.  
231 Information provided by the authorities.  
232 WTO document IP/N/1/KGZ/14, 15 November 2018.  
233 WTO document IP/N/1/KGZ/18, 28 November 2018.  
234 WTO document IP/N/1/KGZ/11, 12 November 2018.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 105 - 
 
  Electronic Computers and Databases.235 The Government also adopted several Decrees on fees for 
registration of copyright, related rights, and topolog ies of integrated circuits; minimum rates of 
royalty fee for use of objects of copyright and related rights; administration of copyright and related 
rights on a collective basis; and minimum requirements specified for entities administering property 
rights  on a collective basis and control of their activities by the authorized government authority.  
Second, with respect to industrial property, amendments were made to Law No.  76 of 
10 April 2015 on Patents236, Law No.  4 of 12 January 2015 on the Legal Protection of Selection 
Achievements237, and Law No.  28 of 6 February 2014 on Trademarks, Service Marks and Appellations 
of Origin.238 The Government adopted Decrees in this area including on fees for patenting inventions, 
utility models, industrial designs,  selection achievements, registration of trademarks, service marks, 
geographical indications, the right to use geographical indications and patent attorneys; conditions 
and procedures for the provision of mandatory licences for objects of industrial proper ty, traditional 
knowledge; approval of the rules for the submission of objections, applications, and their 
consideration in the Appellate Board under the State Service of Intellectual Property and Innovation; 
approval of the rules for registration of assig nment contract for object of industrial property, 
selection achievement, licence contract on providing the right for their use, contract for the pledge 
of an exclusive right for object of industrial property, and contract of technology transfer.  
Third, asi de from the amendments to laws directly governing the protection of specific 
categories of intellectual property rights, there were changes to relevant related laws, notably the 
Civil Code239, the Criminal Code240, the Criminal Procedure Code241, the Code on Offenses, and the 
Law on Customs Regulations.242  
Finally, certain changes to the intellectual property rights regime resulted from the accession 
of the Kyrgyz Republic to the EAEU.  
Section XXIII of and Annex 26 to the EAEU Treaty contain provisions on sta ndards of 
protection of all categories of intellectual property rights found in the TRIPS Agreement and their 
enforcement.243 It requires member States "to cooperate in the sphere of protection and 
enforcement of intellectual property rights and ensure in t heir territories the protection and 
safeguarding of these rights in accordance with international law, international treaties and acts 
constituting the law of the Union and the legislation of the Member States" (Article  89). Cooperation 
between the EAEU me mber States shall aim at harmonizing their legislation regarding the protection 
and enforcement of intellectual property rights and protecting interests of owners of intellectual 
property rights of member States. Such cooperation shall cover the following areas: support of 
scientific and innovative development; improvement of mechanisms for the commercialization and 
use of intellectual property objects; creation of favourable conditions for copyright and related rights 
owners; introduction of a system of re gistration of EAEU trademarks and service marks and of EAEU 
appellation of origin of goods; enforcement of intellectual property rights on the Internet; effective 
customs enforcement, including the introduction of a common customs registry of intellectual 
property rights objects; and application of coordination measures to prevent the circulation of 
counterfeit goods (Article  89). 
 EAEU member States are required to accord national treatment regarding the protection of 
intellectual property to persons of ot her member States and to comply with a list of relevant 
international treaties and with requirements set out in Annex 26 to the EAEU Treaty regarding 
specific categories of intellectual property (Article  90). Annex 26 contains provisions on substantive 
standards of protection regarding: copyright and related rights; trademarks and service marks; 
 
235 WTO document IP/N/1/KGZ/23, 17 December 2019.  
236 WTO document IP/N/1/KGZ/13, 15 November 2018.  
237 WTO documen t IP/N/1/KGZ/15, 15 November 2018.  
238 WTO document IP/N/1/KGZ/6, 12 November 2018.  
239 Law No.  133 of 23 July 2016; and WTO document IP/N/1/KGZ/17, 28 November 2018.  
240 Law No.  10 of 24 January 2017.  
241 Law No.  4 of 11 January 2014; WTO document IP/N/1/KGZ/8,  12 November 2018; Law No.  10 of 
24 January 2017; and Law No.  62 of 15 May 2019.  
242 Law No.  52 of 24 April 2019.  
243 The EAEU rules on intellectual property rights were analysed in the Secretariat's Factual Presentation 
on the EAEU, WTO document WT/REG358/1 , 13 July 2018, Section 5.9. See also the Secretariat Report 
prepared for the most recent Trade Policy Review of Armenia, WTO document WT/TPR/S/379/Rev.1, 
30 January 2019, Section 3.3.8.3.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 106 - 
 
  EAEU trademarks and service marks; exhaustion of trademark and trademark of the EAEU244; 
geographical indications; appellation of origin of goods; appellation of ori gin of goods of the EAEU; 
patent rights; selection achievements; topologies of integrated circuits; and trade secrets. It also 
requires the conclusion of an international treaty within the EAEU on the enforcement of intellectual 
property rights. Finally, t he EAEU Treaty obligates member States to take enforcement measures 
for the effective protection of intellectual property rights, including measures provided for in the 
EAEU Customs Code and international treaties and acts of the EAEU on customs regulation s 
(Article  91).245 
 Pursuant to Section IV of Annex 26, a treaty providing for the creation of an EAEU trademark 
and service mark and an EAEU appellation of origin of goods was signed in December  2018 and was 
expected to become operational by the end of 202 0. An agreement on collective management of 
copyright and related rights within the EAEU was signed in 2017 and entered into force on 
27 May 2019.  
In 2017, the Kyrgyz Republic acceded to the Marrakesh Treaty to Facilitate Access to 
Published Works for Per sons Who Are Blind, Visually Impaired or Otherwise Print Disabled and 
accepted the Protocol of Amendments of the TRIPS Agreement of 6 December 2005.  
 Table 3 .26 provides the number of applications for intellectual property rights and the 
number of intellec tual property rights registered in the State Registers of Intellectual Property 
Objects of the Kyrgyz Republic during the period 2013 -19.  
Table 3.26 Trends in intellectual property, 2013 -19 
 
2013  2014  2015  2016  2017  2018  2019  
Applications         
 Patents  114 139 126 89 146 114 93 
Utility models  9 10 17 24 22 32 19 
 Industrial designs  14 53 23 18 17 17 6 
 Trade marks  706 714 748 640 795 954 847 
Copyright  180 273 228 331 170 250 292 
Registrations         
 Patents  88 100 111 120 78 110 67 
Utility models  19 11 13 26 11 22 28 
 Industrial designs  35 26 31 28 5 17 15 
 Trade marks  684 600 612 671 534 726 805 
Copyright  181 262 225 329 167 250 292 
Source:  Information provided by the authorities.  
3.3.7.3   Enforcement of intellectual property rights  
 Enforcement of intellectual property rights by customs authorities is currently provided for 
in the EAEU Customs Code, which entered into force in January 2018, and in Article  107 of the 
Kyrgyz Law on Customs Regulations, which entered into force in April 2019. Under Article  124 and 
Chapter  52 of the EAEU Customs Code, customs authorities of EAEU member States are required to 
suspend the release of goods for 10 business days if they discover signs of  violations of intellectual 
property rights of copyright holders violations in respect of goods containing intellectual property 
 
244 In accordance with the Protocol on Transitional Provisions, the provisions of Section IV of Annex 26 
on the regional exhaustion of EAEU trademarks became directly applicable in the Kyrgyz Republic in 
August  2017.  
245 Two legal instruments related to the enforcement of intellectual property rights have been adopted 
since the entry into force of the EAEU Treaty. The Treaty on Coordination of Enforcement of Intellectual 
Property Rights, concluded on 8 September 2015, entered into force on 19 July 2016. The Regulation on 
Information Interaction of the Authorized Bodies of th e Member States of the EAEU and the Eurasian Economic 
Commission in the Field of Enforcement of Intellectual Property Rights, adopted on 30 August 2016, entered 
into force on 1  October 2016. WTO document WT/REG358/1, 13 July 2018, para.  5.68. WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 107 - 
 
  included in the EAEU Common Customs Registry246 or in their national customs registries.247 This 
period can be extended for anoth er 10 business days if the copyright holder initiates legal 
proceedings. Article  107 of the Kyrgyz Law on Customs Regulations lays down detailed rules for the 
implementation of this provision of the EAEU Customs Code.  
 Although the Law on Customs Regulati ons provides for the possibility of a suspension by 
the customs authorities ex officio  of the release of goods containing objects of intellectual property 
not included in the EAEU Common Customs Registry or in the National Customs Registry of 
Intellectual Property Rights, to date this authority has not been used.248 The State Customs Service 
takes measures regarding the border enforcement of intellectual property rights exclusively with 
respect to intellectual property rights included in the cus toms registry of intellectual property rights, 
and only in respect of trademarks.  
In October 2019, the State Customs Service issued an order to reinforce control of goods 
included in the National Customs Registry of Intellectual Property Rights. Between 1  January 2017 
and 16  October 2019, the service suspended the release for internal consumption of hygienic 
products, spare parts for transport vehicles, alcoholic drinks, palm oil, confectionery, assorted drinks 
and nectars, and electric appliances.  
In add ition to actions taken by the customs authorities, enforcement of intellectual property 
rights protection in the Kyrgyz Republic typically occurs through civil action before the courts; there 
were no administrative or criminal enforcement proceedings durin g the review period. The largest 
number of cases (87) considered by the courts related to Kyrgyz  patent's role in the collective 
management of copyrights, followed by 31 disputes concerning alleged infringement of trademarks, 
21 disputes concerning alleged  infringement of copyright and related rights, and 10 disputes 
concerning decisions of the Appeal Board on the registration of intellectual property rights.  
It has been observed in a recent study that "IPR enforcement remains problematic due to 
inefficien t judicial processes that result in lengthy appeals processes and problematic recovery of 
penalties. IPR infringement, including production and trade of counterfeit goods, remains a problem 
for both the authorities and general public".249  
 
 
 
246 The EAEU Co mmon Customs Registry of intellectual property of the member States is maintained by 
the EEC. It includes intellectual property items protected in each EAEU member State. The items that can be 
included in the Registry are copyright and related rights, trad emarks, service marks, and geographical 
indications of goods. Items can be included in the register based on applications of the rights holders or 
persons representing their interests. EAEU Customs Code, Article 385.  
247 National customs registries are main tained by the customs authorities of the individual member 
States and contain intellectual property items protected in the member State whose customs authorities 
maintain the registry. The terms and procedure for the inclusion of intellectual property in t he national 
registries are provided for in the customs legislation of the individual member States. EAEU Customs Code, 
Article  386.  
248 The State Customs Service is currently developing a draft regulation to implement this provision.  
249 UNECE, Innovation for  Sustainable Development Review of Kyrgyzstan , 2019, p.  32. Viewed at: 
https://unece.org/DAM/ceci/publications/I4SD_Kyrgyzstan/ECI_CECI_25_ENG.pdf . 
  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 108 - 
 
  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, Forestry, and Fisheries  
4.1.1   Agriculture  
The territory of the Kyrgyz Republic classified as agricultural land has been relatively stable at 
approximately 10.6 to 10.8 million hectares (ha) in recent years. Most of this area is pastures 
(9 million ha) or arable land (1.2 million ha), of which near ly two thirds is irrigated and one third is 
rainfed arable land. About 55% of the agricultural output is derived from livestock and 45% from 
crop production. Measured in production volume, the principal crops are potatoes, vegetables, sugar 
beet, maize, wh eat, and barley (Table 4.1). The increase in sugar beet production was particularly 
strong. During 2016 to 2018, output of sugar beet was almost four times higher than in the preceding 
three -year period. Measured in production value, the most valuable comm odities in 2019 were 
livestock and poultry (USD 894 million), raw milk (USD 488 million), vegetables (USD  451 million), 
grains and legumes (USD 417 million), and potatoes (USD 243 million).  
Table 4.1 Gross ou tput value and production volumes of agriculture, hunting, and forestry, 
2012 -19 
(USD million and '000 tonnes)   
2012  2013  2014  2015  2016  2017  2018  2019a 
Values (USD million)  
Crops  1,709  1,780  1,830  1,513  1,399  1,571  1,460  1,583  
   Grains and legumes  531 577 491 456 363 386 405 418 
   Potatoes  281 358 428 229 235 357 254 243 
   Vegetables  338 310 387 408 408 406 334 451 
   Raw cotton  80 68 57 34 35 47 54 46 
   Tobacco  9 6 4 2 0 2 2 1 
   Sugar beet (fabric)  6 12 9 9 35 33 36 34 
   Melons  45 29 36 38 28 31 29 39 
   Fruit 162 154 160 130 117 132 140 129 
   Grapes  8 8 13 7 8 6 6 7 
   Other  250 256 244 202 170 171 201 216 
Livestock  1,769  1,686  1,734  1,469  1,356  1,380  1,438  1,489  
   Growing livestock and 
poultry  1,157  1,040  1,055  933 857 860 892 894 
   Raw milk  519 548 587 460 426 446 469 488 
   Eggs 50 57 53 48 48 48 48 50 
   Wool (physical weight)  10 9 8 2 3 3 3 9 
   Other  34 32 30 26 23 24 26 48 
Hunting and forestry  5 5 5 5 5 5 5 5 
         
Volumes ('000 tonnes)  
Grains (weight after 
reprocessing)  1,334  1,701  1,328  1,723  1,728  1,682  1,742  1,781  
   of which:          
   Wheat (weight after 
reprocessing)  541 819 573 705 662 601 616 601 
   Barley (weight after 
reprocessing)  213 310 197 370 415 424 429 466 
   Maize  578 568 556 642 649 653 693 712 
Leguminous (weight after 
reprocessing)  81 85 90 97 98 103 107 109 
Sugar  beet (fabric)  102 195 174 183 705 712 773 741 
Сotton  (at recorded weight)  85 69 69 44 52 65 75 80 
Tobacco (at recorded 
weight)  7 7 4 1 1 2 2 1 
Oil-producing crops  59 56 46 49 41 40 35 31 
Potatoes  1,313  1,332  1,321  1,416  1,388  1,416  1,447  1,374  
Vegetables  866 882 920 1,052  1,069  1,087  1,095  1,134  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 109 - 
 
   
2012  2013  2014  2015  2016  2017  2018  2019a 
Melons  193 196 200 249 237 259 249 246 
Fruits and berries  223 234 237 209 239 241 251 270 
Grapes  8 8 9 6 9 9 9 9 
Meat (at slaughter weight)  192 193 203 208 212 217 221 223 
   Beef and veal  .. .. 102 99 103 104 109 .. 
   Pork .. .. 16 15 16 16 17 .. 
   Lamb and goat meat  .. .. 59 61 62 64 63 .. 
   Horse meat  .. .. 20 25 23 25 24 .. 
   Poultry meat  .. .. 6 8 8 8 9 .. 
   Rabbit meat  .. .. 0 0 0 0 0 .. 
Milk 1,382  1,408  1,446  1,481  1,525  1,556  1,590  1,628  
Eggs (million pieces)  418 422 446 433 470 511 533 561 
Wool (physical weight)  11 12 12 12 12 13 13 13 
.. Not available.  
a Preliminary data.  
Source:  WTO Secretariat, based on data from the National Statistical Committee and provided by the authorities.  
The agro -industrial sector was included among the priorities for development in the National 
Sustainable Development Strategy for 2013 -17. Specific targets included enhanced food security, 
improved efficiency and competitiveness in Kyrgyz agriculture and a gro-processing, more efficient 
use of government budget resources, and addressing various social issues of peasants. Although the 
actual outcomes appear to have fallen short of the ambitions expressed, certain improvements were 
made, notably in the availab ility of veterinary services, provision of seeds, rehabilitation of 
infrastructure (with donor funding), better market opportunities through accession to the EAEU, 
higher volumes of credit to farmers and agribusinesses on improved terms, and implementation  of 
various tax concessions favouring the sector.1 The new five -year policy announced in 2017, Forty 
Steps to New Era: 2018 -23, focuses on irrigation and the provision of clean drinking water, 
particularly in rural and remote areas, as well as further str ategies to develop agri -business and 
collective systems.  
The national programme for the development of the food and processing industry (2017 -21) 
targets a 25% increase in agricultural production by 2021, and the creation of new logistics centres 
for stor age and distribution, as well as a minimum of 10 new processing enterprises. Specific 
programmes or "concepts" were elaborated for subjects such as fine -fleeced sheep (2015 -20), the 
preservation and enhancement of soil fertility (2017 -20), cotton (2017 -21), organic farming 
(2017 -22), food security and nutrition (2019 -23), and trade and logistics centres (2019 -23). In 
addition to a review of the funding mechanisms in agriculture, i.e. approval procedures, interest 
rates, and the duration of loans, the author ities intend to examine the feasibility of an insurance 
scheme, the establishment of industry associations, and support to potential exporters for their 
participation at international fairs and exhibitions. A certification scheme for organic products, 
involving the labelling of honey, fruit (fresh or dried), nuts, and vegetables, is also contemplated.    
The agricultural sector has significant potential for further growth. Relative to its neighbours, 
the Kyrgyz Republic has abundant water resources, but it faces challenges regarding land availability 
and degradation. Most farms are small, and peasants lack knowledge of modern farming techniques. 
Land productivity is low. The support services and infrastructure that would allow smallholder 
farmers to increase productivity are largely missing. Although improved access to the entire EAEU 
market offers new opportunities, capturing them requires better regulatory services, improved 
transportation, and modern processing facilities.2   
The Kyrgyz Republic is a net importer of agricultural goods (Chart 4.1). Imports cover a wide 
range of products, notably chocolate, sugar and confectionery, sunflower oil, wheat, fruit and berries, 
 
1 Asian Development Bank (ADB), Kyrgyz Republic: Improving Growth Potential , September 2019. 
Viewed at: https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . 
2 International Food Policy Research Institute, Agriculture Development in the Central Asia Regional 
Economic Cooperatio n Program Member Countries: Review of Trends, Challenges, and Opportunities , 
December 2019. Viewed at: https://www.adb.org/sites/default/ files/publication/549916/agriculture -
development -carec -countries.pdf . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 110 - 
 
  bread, bakery products, and other processed foods, including baby foo d. Most imports are either 
sourced in Kazakhstan or transported by road from the Russian Federation to the Kyrgyz -Kazakh 
border. According to the authorities, the self -sufficiency ratio in food was approximately 72% in 
2017 and 2018, up from 65% in 2015. H owever, in their view, the consumption of meat and meat 
products, eggs, sugar, fruit, and berries is insufficient.  
Chart 4.1 Exports and imports of agricultural products, 2012 -19 
(USD million)  
 
Note:  WTO agricultural definition.  
Source:  WTO Secretariat calculations, based on UN Comtrade database.  
Turkey, the Russian Federation, Kazakhstan, and China are the principal foreign markets for 
Kyrgyz agricultural output. Dried kidney beans, which are not a tradit ional staple food in the 
Kyrgyz  Republic, are the single most important export commodity. The main market for 
Kyrgyz  kidney beans is Turkey, but shipments have gradually been increasing to the 
Russian  Federation and Eastern Europe, i.e. Bulgaria, Montenegr o, and Serbia.3 Other significant 
items are cotton lint, dried fruit, and dairy products (butter, cheese, and cow milk).  
4.1.1.1   Trade measures  
4.1.1.1.1   Imports  
With the accession of the Kyrgyz Republic to the EAEU, imports from its preferential partners 
are now generall y free from customs duties and other trade restrictions. However, for certain goods, 
including wheat flour, rice, eggs, sugar, and beer, the Kyrgyz Republic established minimum prices 
for imports from other EAEU members.4 This measure has been applied sin ce late 2016 
(Section  3.1.1.3).  
For other trading partners, the move to the Common External Tariff (CET) of the EAEU largely 
implies higher tariffs and more complex market access. During a transitional period that lasted until 
the end of 2019, the Kyrgyz Republic was authorized to apply rates that were different from the CET 
 
3 The beans are predominantly grown in the Talas valley, among farming families originating from the 
Caucasus region but removed from there in the 1930s. The cultivation of kidney beans,  subsequently dried for 
export, was developed with investments from Turkey in the late 1990s.  
4 State Agency for Antimonopoly Regulation Decision No.  197 of 16 December 2016, implementing 
Government Resolution No.  537 of 12 October 2016 on Approval of the  Procedure for Determining, Applying 
and Controlling the Minimum Level of Control Prices for Goods Imported into the Territory of the Kyrgyz 
Republic from the Member States of the Eurasian Economic Union, as amended by Government Resolutions 
No. 609 of 25 September 2017, No.  21 of 9 August 2019, and No.  29 of 12 December 2019.  
0100200300400500600700800900
 2012  2013  2014  2015  2016  2017  2018  2019
Exports ImportsChart 4.[X] Kyrgyz Republic exports and imports of agricultural products, 2012 -19
(USD million)
Source:  WTO Secretariat calculations, based on UNSD Comtrade database.Note:  WTO agricultural definition.WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 111 - 
 
  for 166 items.5 The list included plant protection products, agricultural machinery, and veterinary 
drugs (Table A3.1).  
As at 1  January  2020, application of the CET results in a simpl e average most -favoured nation 
(MFN) rate of 14.1%  for agricultural products (WTO definition), compared with 8.4% in 2012. 
Whereas the national tariff applied previously consisted exclusively of ad valorem  tariffs with a 
maximum rate of 20%, the current CE T includes specific and/or compound rates with estimated 
ad valorem  equivalents (AVEs) running as high as 228.2%. The tariff increases are particularly 
marked for animals and animal products, sugar and confectionery, and to some extent also for dairy 
produ cts (Chart 4.2). In these product categories, the average CET is also well above rates at which 
the Kyrgyz Republic bound its import duties at the time of accession to the WTO. For animals and 
animal products, where the maximum tariff was 10%  in the past, ad valorem  rates currently reach 
up to 80% and compound rates affect 247 tariff lines. For sugar and confectionery, where the 
national tariff stipulated a maximum ad valorem  rate of 7%, the majority of the tariff lines 
(93 of 130) now face specific duties,  with estimated AVEs ranging from 3.7% to 119.6%. The higher 
rates are to some extent mitigated by tariff -rate quotas (TRQs), which were not utilized in the earlier 
national regime, for beef, pork, and poultry meat. However, the annual TRQs for beef and po rk are 
quite small (5,000 tonnes and 3,500 tonnes, respectively), and the in -quota tariff rates are 15% for 
beef and 25% for poultry meat. The quotas are allocated administratively, and fixed percentages of 
the beef, pork, and poultry quotas are reserved f or new entrants.6 Suppliers that fail to utilize their 
quota for the year may not participate in the quota allocation the following year.   
Chart 4.2 Applied and bound rates by agricultural broad products, 20 12 and 2020  
 
Note:  Averages for 2012 exclude AVEs, while averages for 2020 include AVEs when available.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
Seasonal or temporary duties are also applied on certain items. Whereas in the past, seasonal 
duties were approved by Parliament and could replace the normal rate of customs duty for up to 
six months, they are now an integral part of the CET. Seasonal tariffs were established for potatoes, 
tomatoes, cucumbers, sweet pe ppers, apples, pears, and raw sugar (sugar cane and beet). 
 
5 The list of such goods and the corresponding tariff rates was stipulated in EEC Board Decision No.  68 
of 30 June 2015.  
6 Detailed rules are laid down in Government Resolution No.  889 of 29 December 2015, as amended by 
Government Resolution No.  252 of 23 May 2018.  
0%5%10%15%20%25%30%35%40%
1 2 3 4 5 6 7 8 9 10 11 12MFN 2012 MFN 2020 Bound 2020
Note:   Averages for 2012 exclude AVEs, while averages for 2020 include AVEs when available.Chart 4.2 -Applied and bound rates by agricultural broad products, 2012 and 2020
1   Agriculture (HS 01 -24)
2   WTO agricultural products
3   Animals & products thereof
4   Dairy products
5   Fruit, vegetables & plants
6   Coffee & tea7   Cereals & preparations
8   Oil seeds, fats, oils & products
9   Sugars & confectionery
10   Beverages, spirits & tobacco
11   Cotton
12   Other agricultural products n.e.s.
Source:   WTO Secretariat calculations, based on data provided by the authorities.WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 112 - 
 
  Temporary duty arrangements, including temporary reductions to mitigate the effects of the 
COVID -19 pandemic, are covered in Section 3.1.3.4.  
According to the Treaty of Accession of the Kyrgyz Rep ublic to the Eurasian Economic Union, 
up to 100,000 tonnes of raw cane sugar could be imported free of MFN duty for industrial processing 
for five years from the date of accession, i.e. until May 2020.7 The Government of the 
Kyrgyz  Republic provided guara ntees that the white sugar produced from these imports was not to 
be redirected to the other EAEU member States.  
4.1.1.1.2   Exports  
Export duties on agricultural products were applied for a six -month period in 2010 -11 in 
response to critical shortages of certain cer eals and animal feed. The export duties ranged from 
5% to 30% on the products concerned. The measure was notified to the WTO.8 Export duties on raw 
hides and skins of cattle and horses (HS  41.01) have been in place since 2016 (Section 3.2).  
Following the declaration of a state of emergency in response to the COVID -19 pandemic, the 
Kyrgyz Republic imposed a temporary ban on exports of certain food products and essential goods 
through Government Resolution No.  178 of 22  March  2020. The temporary ban affected  exports of 
wheat, flour, vegetable oils, rice, pasta, sugar, eggs, salt, hay, straw, animal feed, bran, and grain 
feed (Section 3.2).  
4.1.1.2   Domestic support  
Access to credit is one of the main constraints for the development of the agricultural sector. 
The Nat ional Bank of the Kyrgyz Republic (NBKR) has conducted credit auctions for the refinancing 
of commercial banks to facilitate their lending to priority sectors, including agriculture, since 2012. 
Preferential loans to agricultural producers have been admini stered under governmental 
programmes since 2011.9 According to the authorities, approximately 12,000 loans per year on 
average, constituting a gross lending volume of KGS 35 billion for the commercial banks, were 
granted to rural producers on preferential  terms between 2013 and 2019. The subsidy element of 
these loans totalled KGS 4.338 billion. About 68% of the credits were allocated to livestock, 17% to 
processing enterprises, and 15% to crop cultivation. The concessional loans are currently channelled 
through six banks.  
 The budgeted subsidy element for 2020 amounts to KGS 1.25 billion.10 Although the two  state 
banks channelling the loans receive compensation (KGS 250 million) for the concessional rates of 
interest, the programme also foresees that the banks should provide KGS 300 million on their own 
account. "Financing of agriculture – 8" is divided in two parts: one with a social orientation to support 
small farming collectives with loans that do not require collateral, and the other addressing the 
financing of agricultural clusters.   
A programme dedicated to the financing of business start -ups, in particular the processing of 
local agricultural production, was introduced in 2018.11 The programme is supported by the NBKR, 
the Russian -Kyrgyz Developmen t Fund (RKDF), and the open joint  stock company (OJSC) Guarantee 
Fund. Loans are provided at concessional rates (as low as 4% p.a.) on terms up to seven years with 
a 24-month grace period for reimbursements. Moreover, the facility sets standards regarding the 
acceptance of collateral and may allow new businesses to operate for up to three years before 
breaking even.   
 
7 Protocol on the Conditions and Transitional Provisions on the Application by the Kyrgyz Republic of the 
EAEU Treaty of 29 May 2014, Separate International Treaties Inco rporated into the Law of the EAEU, and the 
Acts of the Bodies of the EAEU due to the Accession of the Kyrgyz Republic to the EAEU Treaty of 29 May 2014 
(Protocol on Transitional Provisions), Annex 1, Section V, as summarized in WTO document WT/REG366/1, 
29 August 2018.  
8 WTO document G/AG/N/KGZ/3, 7 January 2011.  
9 The scheme was entitled "Affordable loans to farmers" in 2011 -12. Subsequently, the name was 
changed to "Financing of agriculture – 1" in 2013, "Financing of agriculture – 2" covering 2014, and so on. 
Measures applicable in 2020 were funded under "Financi ng of agriculture – 8".  
10 Government Resolution No.  81 of 14 February 2020 on Financing of Agriculture – 8.  
11 The new mechanism is part of the implementation of the Presidential Decree on Declaring 2019 the 
Year of Regional Development and Digitalization  of the Country.  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 113 - 
 
  
According to the authorities, the Kyrgyz Republic provided limited support to the agricultural 
sector between 2000 and 2019. With reference t o the definitions established in the WTO  Agreement 
on Agriculture, about 63% of the outlays were on "amber box" -type measures, while the remainder 
were spent on assistance in the "green box" category. As the entire amber box support is reported 
as non -product-specific, it has on average amounted to 0.55% of the total value of the agricultural 
production, which is well below the established de minimis  ceiling (5%) for the Kyrgyz Republic. The 
support primarily relates to financing measures (92%), i.e. either  to provide loans at concessional 
rates, or to cover the costs of leasing agricultural machinery, equipment, or animals. Limited support 
was also made available to repair or maintain on -farm reclamation networks (5%), and to assist the 
production of seeds (3%). "Green box" assistance mainly took the form of infrastructure -related 
services (85%), such as expenditures for the provision of electricity, roads, other communications, 
irrigation, dams, or drainage systems. Some funds were also spent on pest and di sease control 
(13%) or on inspection services (2%).  
The Kyrgyz Republic resumed notifications of its domestic support programmes to the 
WTO Committee on Agriculture in 2017, providing information for calendar year 2012.12 Since then, 
notifications were al so received for 2015, 2016, and 2017 .13 According to the most recent 
notification, assistance under the "green box" totalled KGS 2.9 billion, of which nearly KGS 2 billion 
concerned expenses on infrastructure -related services. The non -product -specific supp ort amounted 
to KGS 1.363 billion, or 0.65% of the aggregate production value, and related to expenditures under 
the "Credits available to farmers" programme (KGS 950 million), and agricultural leasing 
arrangements (KGS 413 million), a support measure in p lace since 2016.  
According to the authorities, the budgetary outlays in 2018 towards the agricultural sector 
amounted to KGS 2.5 billion, of which KGS 1.3 billion was spent on the operation, maintenance, and 
overhaul of irrigation and land -reclamation fac ilities owned by the State. The budgetary 
appropriation in 2019 reached KGS 3.7 billion, of which KGS 1.4 billion was envisaged to be funded 
through the development budget, i.e. the State Investment Program.  
4.2  Mining and Energy  
4.2.1   Mining  
Mining, principally of  gold, antimony, mercury, tin, coal, oil, gas, and materials used in 
construction, is an important sector of the economy. The Kyrgyz Republic has a complicated 
geological structure. Many types of sedimentary, igneous, and metamorphic rocks were formed 
under different geodynamic conditions. More than 10,000  deposits of ore, non -ore, energy, and 
non-metallic minerals have been discovered. As at 1  January  2019, the reserves recorded in the 
State Balance of Mineral Reserves included 654.2 tonnes of indigenous a nd placer gold in 
107 deposits, 257.2 tonnes of silver reserves in 23 deposits, and 1.5 billion tonnes of coal reserves 
in 45 deposits.14 While mining and quarrying activities account for less than 1% of GDP, ore 
processing, statistically recorded as manuf acturing, is a significant component of value added.  
One large gold mine, Kumtor, located in the east of the country, accounts for nearly 10% of 
GDP.15 The 534,563 ounces of gold produced by the mine in 2018 represented 18.4% of the entire 
industrial output. The Kumtor Gold Company CJSC (KGC) is the largest taxpayer and largest 
private -sector employer. It holds the concession for the Kumtor deposit and is  responsible for the 
entire production cycle. KGC is wholly owned by Centerra Gold Inc. (Centerra), whose shares are 
held by Kyrgyz state -owned enterprises and private Canadian shareholders. Centerra is a publicly 
listed company in Canada.  
Gold mined at Ku mtor is sold to the wholly state -owned Kyrgyzaltyn OJSC. Kyrgyzaltyn owns 
27% of Centerra and has stakes in Altynken LLC, Makmal Gold Company LLC, and Eti Bakir Terreksai 
LLC. The gold production of these three companies totalled 4,070.3 kgs in 2019, 10 ti mes more than 
the production reported by Kyrgyzaltyn in 2015 (364.5 kgs). Kyrgyzaltyn's profits increased 
 
12 WTO document G/AG/N/KGZ/4, 12 September 2017.  
13 WTO documents G/AG/N/KGZ/5, 25 May 2018; and G/AG/N/KGZ/6 and 7, 5 August 2019.  
14 Information provided by the authorities.  
15 ADB, Kyrgyz Republic: Improving Growth Potential , 2019, p.  65. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 114 - 
 
  significantly in recent years due to an expansion in production at its joint ventures with foreign 
investors.  
Exports of gold, of which almost 98% ori ginate from Kumtor16, averaged about 35% of Kyrgyz 
merchandise exports in recent years (Chart 4. 3). The observed volatility in export value reflects 
changes in the world market price of gold and domestic supply disruptions. Switzerland was the 
main destina tion for Kyrgyz gold until 2017, when sales appear to have been redirected towards the 
United Kingdom (Table 4. 2).  
Table 4.2 Exports of non -monetary gold and silver by destination, 2014 -19 
(USD million)   
2014  2015  2016  2017  2018  2019  
Gold (incl. gold plated with platinum) 
unwrought  716.9  665.4  701.6  700.4  664.2  832.9  
United Kingdom  - - 31.3 186.8  663.9  832.0  
Turkey  0.1 0.4 0.6 0.2 0.1 0.8 
Poland  - - - - - 0.0 
China  - - - - 0.1 - 
Italy - - - 0.1 0.1 - 
Switzerland  573.0  559.3  644.0  484.7  - - 
United Arab Emirates  130.8  85.6 25.7 28.6 - - 
British Virgin Islands  11.8 20.0 - - - - 
Belgium  1.2 - - - - - 
- No export.  
Source:  WTO Secretariat calculations, based on data from UN Comtrade database.  
Chart 4.3 Gold in total merchandise exports, 2000 -17 
 
Source:  WTO Secretariat, based on data compiled from the NBKR, various years.  
The State Committee for Industry, Energy and Subsoil Use (SCIESU) is the central executive 
body responsible for the development and implementation of state policy in the field of subsoil use. 
The SCIESU issues, extends, suspends, and r evokes licences for the right to use subsoil, in 
 
16 ADB, Kyrgyz Republic: Improving  Growth Potential , 2019, p.  65. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . 
05101520253035404550
05001,0001,5002,0002,5003,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total merchandise exports Gold exports Gold share (%, right scale)Chart 4.[X]   Gold in total merchandise exports, 2000 -17Exports, USD million
Source:  WTO Secretariat, based on data compiled from  the National Bank of the Kyrgyz Republic, various years.
Share of gold in total exports (%)WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 115 - 
 
  accordance with legislation on subsoil use, and monitors compliance with the terms of licence 
agreements.  
Several general laws, notably the Tax, Labour, Civil, and Land Codes, include sections 
dedicated to exploration and mining. In addition, the sector is governed by specific laws such as the 
Laws on Subsoil Resources, on Coal, on Mineral Oil and Gas, and on Concessions. A new version of 
the Law on Subsoil Resources, adopted on 19  May 201817, introduced several important changes, 
including: (i) licences granted on a first -come, first -served basis (First Filed Application), instead of 
through direct negotiation; (ii) enhanced transparency, including the disclosure and publication of 
information r egarding the beneficial owners of mining companies, and the publication of licence 
agreements; (iii) shortenings the terms of licences while expanding the rights of licence holders; 
and (iv) the transfer of rights to grant and register licences for explora tion and development of 
construction materials, such as clay and gravel from the SCIESU to local government authorities.  
The Law on Subsoil Resources defines several types of licences, including those for 
prospecting, exploration, and development. Licence s for the development of mineral deposits may 
be granted for up to 20 years, with the possibility to extend until the mineral resource is depleted.  
The right to use subsoil resources may be granted through tenders, auctions, or application 
of the First Fi led Application Rule. A tender process is required when the Government has identified 
a project to be of national importance. To conduct a tender, the Government establishes a tender 
commission.18 Auctions are held for the subsoil plots included in the rel evant register.19 The register 
of auction subsoil fields is formed and approved by the authorized state body for subsoil use in 
accordance with the criteria established by the Government. The First Filed Application Rule applies 
to: (i) subsoil plots, with  the exception of subsoil use rights provided through a tender or auction; 
and (ii) subsoil plots not related to the geological study of the subsoil and the development of mineral 
deposits.20  
Foreign and local entities may participate on equal terms in th e procedures to obtain licences, 
and no foreign ownership restrictions apply to applicants or licence holders. A foreign legal entity 
recognized as the winner of an auction or tender or in whose favour a decision was made to grant 
the right to use subsoil according to the First Filed Application Rule is obliged to establish a subsidiary 
legal entity with 100% equity participation in the Kyrgyz Republic to which the licence is issued.  
Small -scale mining of raw materials and artisanal gold mining based on sp ecial regulatory 
acts21 do not require subsoil use licensing. Instead, operators may easily acquire affordable 
individual permits. Although artisanal mining is encouraged, it remains a small and stagnant 
subsector, employing an estimated 5,500 people.  
Extractive industries are a significant source of government revenue. Taxes received from 
companies in extractive industries constituted 9.7% of the state budget in 2017, and increased from 
KGS 9.9 billion in 2017 to KGS 11.4 billion in 2018 and to KGS 12.9 bi llion in 2019. KGC is subject 
to a special tax regime, stipulated in its investment and concession agreements with the Government 
and approved by Parliament. According to a recent Asian Development Bank ( ADB) report, the 
Government derives about 20%  of its revenues from the Kumtor mine.22  
The rest of the mining industry operates under the general tax regime laid down by the Tax 
Code. The income tax paid by mining companies is similar to the general (10%) corporate income 
tax. However, starting from Novembe r 2020, the income tax for gold mining companies will vary 
 
17 Law No.  49 of 19  May 2018 on Subsoil Resources.  
18 The tender commission may include in the terms of the tender a provision on the gratuitous transfer 
to the Kyrgyz Republic of a share in the authorized capital of the future licensee.  
19 The auction organizer may include in the conditions of the auction a provision on the gratuitous 
transfer to the Kyrgyz Republic of a share in the authorized capital of a future licence, as well as other 
additional conditions with respect to investment, attraction of qualified personnel, terms of commencement of 
operations, construction of a factory, and work experience.  
20 The SCIESU held 10 auctions in 2019, although it planned to hold 20 auctions and 5 tenders . 
21 For example, the Regulation on the Implementation of Individual Artisanal Mining of Placer Gold in the 
Territory of the Kyrgyz Republic, approved by Government Resolution No.  524 of 23  July 2015 and amended by 
Government Resolution No.  108 of 16  February 2017.  
22 ADB, Kyrgyz Republic: Improving Growth Potential , 2019, p.  65. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 116 - 
 
  from 8% to 30%, depending upon the price of gold per troy ounce, on gold -containing concentrate 
(ore) or in gold alloy (refined gold).  
In addition to general corporate taxes, bonus and licence fee s can be set for mining 
companies. The tax base for a one -time bonus tax is calculated according to the total geological 
reserves or the size of the licence area. The tax rate determined by the Government also depends 
on the type of minerals, the estimated  ore reserves (in the case of development), and the size of 
the licence area (in the case of exploration and research). Royalties are charged on the proceeds 
from the sale of mineral raw materials and mineral processing products. Royalty rates range from 
1% for coal to 12% for natural facing stones. Mining activities are also subject to VAT (total rate of 
12%; zero for exports of non -metallic goods), excise tax, and sales tax (from 0% to 3%). The Tax 
Code also defines local taxes, such as land and property taxes.  
Although the Kumtor mine shows good profitability under current conditions, the 
Government's heavy reliance on Kumtor as a source of revenue is regarded as a significant risk. 
Production may be disrupted by accidents and social unrest and was also affected by disputes 
between the Government and the mine's owners. According to a compromise struck in 2017 and 
subsequently fine -tuned in a Strategic Agreement, Centerra is committed to support environmental 
protection and investment promotion policies th rough various environmental and social funds 
established by the Government. Notwithstanding joint efforts by Centerra and the Government to 
extend the life of the Kumtor mine, it is expected to close in 2026. The Government is therefore 
developing other me dium- and long -term projects as alternatives.  
The National Development Strategy 2018 -2040, the Government's programme, and the 
concept of regional policy development all point to the need for increased mining efficiency and the 
introduction of modern tech nologies with minimal environmental impact. The creation of a favourable 
investment climate and the elimination of certain legal, tax, and regulatory issues are also mentioned 
as priorities. Law 49 of 19 May 2018 on Subsoil Resources introduced a social pa ckage to improve 
relationships between the local population and subsoil users.23  
4.2.2   Energy  
4.2.2.1   General features  
The Kyrgyz Republic is rich in energy resources, particularly hydropower and coal, and is 
potentially self -sufficient. It has small reserves of oil an d natural gas, and for these forms of energy 
is heavily reliant upon imports. Table 4.3 provides data on the recent evolution of trade in natural 
gas, crude petroleum, and coal.  
Table 4.3 Trade balance of sel ected energy products, 2012 -19 
(USD million)  
Product type  2012  2013  2014  2015  2016  2017  2018  2019  
Natural gas  
Imports  78.3 64.2 50.5 40.4 40.3 41.8 46.2 45.5 
Exports  - - - - - 0.0 - - 
Balance  -78.3 -64.2 -50.5 -40.4 -40.3 -41.8 -46.2 -45.5 
Crude petroleum  
Imports  4.7 0.6 2.8 0.7 4.0 0.5 0.7 0.5 
Exports  - 1.0 2.8 - 2.6 4.7 17.3 16.2 
Balance  -4.7 0.4 0.1 -0.7 -1.4 4.3 16.6 15.7 
Coal 
Imports  38.1 50.6 45.3 39.9 15.4 20.9 21.0 17.5 
Exports  3.7 4.8 7.1 5.7 5.4 5.1 11.0 14.9 
Balance  -34.4 -45.8 -38.2 -34.2 -10.0 -15.7 -9.9 -2.6 
-  No exports.  
Source:  WTO Secretariat calculations, based on data from UN Comtrade database.  
While the Kyrgyz Republic has significant potential for the development of renewable energy, 
the authorities estimate that less than 1% of that potential is currently used. An Action Plan for 
 
23 The oblig ation to draw up a social package applies only to subsoil projects of national importance that 
are at the stage of exploration and development of minerals.  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 117 - 
 
  Reforming the Energy Sector was implemented in 2013 -14, leading to the Electricity Law being 
amended (at the end of 2014), the approval of a Medium -Term Tariff Policy (2014 -2017), and the 
establishment of a regulator for tariff setting and licensing. Steps were also taken that aim to 
improve energy security. In this re gard, the Council of Defence recommended in 2015 that the 
Government work towards a new system, including unified corporate governance and the elimination 
of administrative inefficiencies, e.g. by transferring the stakes in energy companies to the Ministry  
of Energy and Industry. However, Parliament abolished the Ministry of Energy and Industry in 
November 2015, as part of a general reorganization of the Government, and transferred the 
responsibilities for fuel and energy to the Ministry of Economy. Parliam ent also approved a 
government programme titled "Stability, trust and new opportunities", calling for further reform of 
the energy sector by creating a National Energy Holding entity. In the initial stage of the planned 
reforms, the Government established the National Energy Holding Company JSC with 100% state 
ownership, which was registered as a legal entity by the Ministry of Justice on 2  February  2016. 
Parliament subsequently added energy assets to the privatization programme for 2015 -17 by 
passing certa in laws – the Law on the Special Status of the Cascade of Toktogul Hydroelectric Power 
Plants and the National High -Voltage Power Line, the Law on Strategic Objects of the Kyrgyz 
Republic, and the Law on Privatization of State Property – thereby allowing t he state stakes in these 
energy companies to be allocated to the authorized capital of the National Energy Holding Company 
JSC.  
The licensing of operators and the regulation of tariffs for electricity, thermal energy, and 
natural gas is entrusted to the S tate Agency for Regulation of the Fuel and Energy Complex. The 
agency has developed a Medium -Term Tariff Policy for Electric and Thermal Energy for 2020 -2022.24 
The new tariff policy maintains the separation of electricity tariffs for energy -intensive cons umers 
and residential customers.  
4.2.2.2   Electricity  
Electricity generation and transmission account for more than 3% of GDP, about 15% of 
industrial output, and more than 5% of government revenue. More than 90% of the domestic 
demand for electricity is covered b y hydropower.25 The development of hydropower is hampered by 
aging infrastructure, most of which is at the end of its life span.26 The developed electric power grid 
provides access to electricity for the majority of the population. Worn -out infrastructure and years 
of insufficient maintenance resulted in frequent outages and transmission losses. However, as a 
result of ongoing work on the reconstruction and modernization of energy equipment, electricity 
losses declined by more than 5% from 2011 to 2018 (Tab le 4.4).  
Table 4.4 Electricity balance, 2012 -19 
(Million kWh)   
2012  2013  2014  2015  2016  2017  2018  2019  
Electricity 
produced  15,168  14,011  14,572  13,017  13,118  15,430  15,728  15,115  
Electricity 
imported  - 30 286 746 385 15 15 269 
Electricity 
consumed in:  13,580  13,666  14,785  13,580  13,306  14,232  14,990  15,115  
  Manufacturing  5,599  5,905  7,293  5,706  5,461  5,874  6,484  6,635  
  Agriculture  2,468  2,552  2,517  3,164  3,116  3,398  3,237  3,165  
  Transport  56 51 59 59 63 65 92 91 
  Construction  77 81 98 108 110 124 181 162 
  Social services  2,137  2,236  2,187  2,112  2,248  2,399  2,562  2,725  
  Transmission 
losses  3,242  2,841  2,632  2,432  2,308  2,373  2,435  2,338  
Electricity 
exported  1,589  375 72 182 198 1,213  753 269 
-  Nil or rounded to zero.  
Source:  National Statistical Committee.  
 
24 Approved by Decree No.  188 of 27 March 2020.  
25 According to the authorities, hydropower resources are estimated at 142.5 tWh, of which 42% is 
economically exploitable, but only about 10% of these economically exploitable resources are currently used.  
26 The average productive age of the electricity infrastructure is estimated at 34 years.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 118 - 
 
  
The electricity sector is organized according to the type of activity. Electricity is mainly 
produced by the Electric Power Plants OJSC, while the high -voltage grids used to transmit electricity 
are operated by the National Electrical Grid of Kyrgyzstan OJ SC. The distribution of electricity to final 
consumers through grids of 35  kW (or less) is undertaken by four regional distribution companies, 
i.e. Severelektro OJSC, Jalalabadelektro OJSC, Oshelektro OJSC, and Vostokelektro OJSC. All 
electricity companies  are currently daughter companies of the National Energy Holding Company 
OJSC, the majority shareholder of which (80%) is the State. T he Kyrgyz Electricity Settlement Center 
carries out technical and commercial metering of electricity between energy compan ies. 
The electricity system is relatively small and heavily dependent on a few 
hydropower -generation facilities. Two combined heat and power plants (CHPPs) – Bishkek CHPP and 
Osh CHPP  – are added during winter. The system is very vulnerable, affected both by the water level 
in the Toktogul Reservoir and by breakdowns or disruptions in key plants. The possibility of exporting 
electricity depends upon several factors, including the flow of the Naryn river and the volume of the 
water in the Toktogul Reservoir.  During the high -water period, the Kyrgyz power system produces 
electricity in enough volume to cover internal needs and to export electricity to neighbouring power 
systems.  
The performance of the electricity sector is undermined by financial difficulties . Overall, the 
industry makes a large loss, primarily because electricity tariffs are set well below costs. The large 
operating losses of the electricity companies are financed by the Government, primarily through soft 
loans from the State Fund for Economi c Development. At the end of 2016, the debt accumulated 
over 25 years reached about USD 1.2 billion or 18% of GDP.27 Apart from the coverage of operational 
losses, some capital injections are at present allocated to repairs and maintenance of existing 
equipment, and the rehabilitation of large hydropower stations. It is a priority to eliminate the 
shortage of electricity in the winter.  
According to the authorities, with forecasts of growing demand for electricity, measures are 
currently being undertaken to  increase generating capacity through the construction of new facilities 
(stations, substations, power lines, and other assets) and the modernization and rehabilitation of 
existing facilities. The industry itself, constrained by debt and recurrent losses, does not have the 
financial resources to undertake such investments. The government budget, so far the only source 
for large investments, is highly constrained. The Kyrgyz Republic may thus have to turn to its 
international development partners for financi ng.  
4.2.2.3   Hydrocarbons  
Prospective oil and gas lands cover 22,500  km², of which more than 7,500  km² is located in 
the Fergana valley. The recoverable reserves from 10 deposits are estimated to comprise 14  million 
tonnes of crude oil and 6 billion cubic metres of natural gas. These modest reserves are insufficient 
to meet local demand. The Kyrgyz Republic mainly imports oil from Kazakhstan and the Russian 
Federation.  
Gas is imported by the Russian company Gazprom, which also undertakes transportation, 
distribut ion, and sales of gas within the Kyrgyz Republic. Gazprom bought the sole national 
distributor, Kyrgyzgas, in 2014.28 Although the purchase price was symbolic (USD 1), Gazprom also 
took over all debt obligations of Kyrgyzgas (USD 40 million), and is commit ted to invest at least 
RUB 20 billion over five years to modernize the gas distribution networks and to resume gas 
exploration.  
Kyrgyzneftegaz OJSC is a major player in petroleum and natural gas exploration, extraction, 
and processing, as well as in the t ransport, storage, and sale of petroleum products. It owns most 
prospecting drilling holes and active wells for crude oil and natural gas in the Kyrgyz Republic. Its 
shares are owned by the State (85%) and 2,000 individual shareholders. The annual producti on of 
Kyrgyzneftegaz amounts to approximately 80,000 tonnes of crude oil and 30 million cubic metres of 
natural gas. More than 50% of the crude oil is refined and sold locally as petrol, diesel, and other 
fuels. However, the quality of the refined products  does not always meet contemporary standards. 
 
27 ADB, Kyrgyz  Republic: Improving Growth Potential , 2019, pp.  211-212. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf .  
28 Kyrgyzgaz owns the infrastructure for transmission and distribution of natural gas. It was previously 
majority state -owned.  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 119 - 
 
  Modernization is thus required for the output of the Kyrgyz Petroleum Company CJSC, a subsidiary 
of Kyrgyzneftegaz, to be in conformity with EAEU requirements for petrol and diesel. In March 2019, 
Gazprom and t he Kyrgyz Government signed a Roadmap on Gazprom's participation in the 
acquisition of the property and assets of Kyrgyzneftegaz.29  
4.2.2.4   Coal 
Coal mining is an important part of the energy sector in the Kyrgyz Republic. Coal production 
amounted to 431,000 tonnes in 2018, up by 23% from 2017. According to the authorities, the 
increase was due to a larger number of stripping operations and further deployment of specialized 
equipment. At present, the domestic industry comprises 23 OJSCs  united under th e management of 
Komur, a state -owned enterprise, and seven smaller companies engaged in seasonal coal mining 
(autumn/winter). Their activities are supervised by the S CIESU.  
Coal is used as raw material in the production of electricity and thermal energy a t thermal 
power plants and boiler stations, as inputs in the production of construction materials and for heating 
in households. Plans to develop the industry focus on structural reforms, market liberalization, and 
privatization of existing enterprises. La rge-scale coal mining, such as the Kara -Kechinskoe, 
Besh-Burkhan, Sulukta, and Uzgen basins, should boost production further, and the construction of 
a railway line between the Kyrgyz Republic and China should facilitate internal transport as well as 
expor ts of coal.   
4.2.2.5   Energy policy at the EAEU level  
The EAEU Treaty foresees the establishment of unified energy markets, including a common 
electricity market and common markets for natural gas, crude oil, and petroleum products. The 
functioning of the Union's Common Energy Market (CEM) will require joint rules for trade in the 
products concerned as well as rules for exchange trading within the CEM.  
Ongoing negotiations among the EAEU member States envisage the implementation of 
large-scale projects to create c ommon markets for energy resources. The aim is to enhance the 
energy security of the national economies through enhanced reliability of supply, increased 
availability for consumers, and stable prices for electricity and hydrocarbons. The intention is to 
make the CEM fully operational by 1  January  2025.  
4.3  Manufacturing  
The Kyrgyz Republic's manufacturing sector remains an important, albeit modest, contributor 
to the economy; during the review period, it accounted for between 16% and 18% of GDP, 14% of 
employm ent, and 18% of tax revenues.30 When looking at it as part of the EAEU market, it is very 
small, accounting for 0.3% of the industrial output.31 The sector was particularly impacted by the 
greater socio -politico impact of the dissolution of the Soviet  Union, followed by large -scale 
privatization, and subsequent reactivation of public investment whereby certain subsectors, such as 
the extractive sector, were revitali zed, but the processing industries generally continued to decline. 
More recently, the downstr eam natural resource sectors, such as metallurgy, have generally thrived, 
but many others have fluctuated in their growth and output (Chart 4.4).  
 
29 The sale of Kyrgyzneftegas has been on the table for several years, motivated by inefficient 
management and operational difficulties such as volatile sales and insufficient stocks, overproduction of certain 
products, and declining fuel and lubricant processing at the Jalal -Abad refinery.  
30 These figures also include mining, electric, gas, water supply, and waste management activities. 
National Statistical Committee, Kyrgyzstan, Brief Statistical Handbook , 2019. Viewed at: 
http://www.stat.kg/media/publicationa rchive/40d3dbd4 -2455-41b1-a2f2-aaecf5f887f0.pdf ; and information 
provided by the authorities.  
31 EEC, Industrial Policy in the Eurasian Economic Union: Three Years Integration . Viewed at: 
http://www.eurasiancommission.org/ru/Documents/%d0%9f%d1%80%d0%be%d0%bc%d1%8b%d1%88%d
0%bb%d0%b5%d0%bd%d0%bd%d0%b0%d1%8f%20%d0%bf%d0%be%d0%bb%d0%b8%d1%82%d0%b8
%d0%ba%d0%b0%20%d0%b2%20%d0%95%d0%90%d0%ad%d0%a1 -
3%20%d0%b3%d0%be%d0%b4%d0%b0% 20%d0%b8%d0%bd%d1%82%d0%b5%d0%b3%d1%80%d0%b
0%d1%86%d0%b8%d0%b8 -%d1%80%d1%83%d1%81%d1%81_.pdf .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 120 - 
 
  
The sector continues to face a number of challenges. It was described as underperforming, 
suffering from low p roductivity, and lacking export competitiveness.32 It also has a high rate (84%), 
the highest among EAEU member States, of worn or obsolete machinery and equipment, which 
reflects the need for investment.33 The manufacturing value added (MVA) as a proporti on of GDP 
continually declined during the last 20 years, albeit flattening in recent years, and the proportion of 
medium and high -tech industry value added is very low at 2.7%.34 Furthermore, it can be 
characterized as highly concentrated in a few subsecto rs, i.e. production and fabrication of base 
metals and metal products, and food processing, account for 60% of the economic output of the 
sector. Most other subsectors are small and are minor contributors.  
However, on the positive side, the manufacturing sector contributes the largest share to 
exports and attracts the most FDI (46.7% of total FDI in 2018).35 According to the authorities, the 
competitive advantages for the industrial sector include the existing education base, the relatively 
low cost of pro duction (in particular for labour -intensive industries), and a moderate inflation rate. 
Several efforts are underway to help promote and develop certain sectors, such as textiles, jewellery, 
and food processing, in particular for export, as the Kyrgyz  Republic has realized that, for sustainable 
economic growth and poverty reduction, it needs to continue to strengthen its industrial sector.  
The main subsectors, in terms of economic activity, are production of base metals 
(metallurgy); processed food products ; construction materials; textiles, clothing, and footwear; and 
refined petroleum products (Chart 4.4 and Table 4.5). Overall, there was a general growth in output 
of the manufacturing sector during the review period, from KGS 137 billion in 2014 to KGS  219 billion 
in 2019.36 Positive trends were also seen with the general rise in employment, number of enterprises, 
and wages, despite some fluctuations (Chart 4.5 and Table 4.5). It is, however, noted that the 
financial situation of firms gradually deteriorated in recent years, perhaps reflecting the increased 
competition as a result of joining the EAEU market. While the base metals and metal products sector 
ranked first in economic output, but not in terms of employment. The textile, clothing, and footwear 
sector employed the mo st people, followed by the food processing sector (Chart  4.5). 
In terms of trade, exports of manufactured goods are dominated by machinery and equipment 
(19.4%), coke and oil products (16.5%), automotive products (10%), and construction materials 
(9%). The se products are predominantly exported to other EAEU member States, in particular, the 
Russian Federation and Kazakhstan. Thus, the export base is narrow in terms of both products and 
markets. The sector may also be adversely impacted by the move to the EA EU Common Customs 
Tariff, whereby certain manufacturing inputs that have traditionally been imported duty -free or with 
low tariffs, e.g. sugar, textiles, and metals, now face higher import duties (Section 3.1.3.3). Some 
had temporary, short -term relief thr ough transitional measures, including TRQs, that recently c ame 
to an end (Table A3.1 and Section 3.1.3.5).  
By Eurasian Intergovernmental Council Decision No.  9 of 8  September  2015, the main 
directions of industrial cooperation within the framework of the EAEU were approved. The EEC 
Council approved the Plan for developing acts and measures to implement the main directions of 
industrial cooperation within the framework of the EAEU; it provides for developing acts of various 
levels on the following issues:  
• addressing import substitution, including by increasing the localization of production and 
deepening industrial cooperation;  
• increasing exports of manufactured products; and  
• creating new innovative sectors of industry and modernization of enterprises in tra ditional 
industries.  
 
32 UNIDO,  Industrial Development of Kyrgyzstan: Background , October 2018. Viewed at: 
https://www.unido.org/sites/default/files/files/2018 -12/Industrial_Development_Kyrgyzstan -Background.pdf .  
33 EEC, Industrial Policy in the Eurasian Economic Union: Three Years Integration .  
34 UNIDO, Manufacturing  Value Added . Viewed at: https://stat.unido.org/SDG .  
35 National Statistical Committee,  Kyrgyzstan, Brief Statistical Handbook , 2019. Viewed at: 
http://www.stat.kg/media/publicationarchive/40d3dbd4 -2455-41b1-a2f2-aaecf5f887f0.pdf . 
36 National Statistical Committee,  Manufacturing Industry of the Kyrgyz Republic . Viewed at: 
http://www.stat.kg/en/publications/sbornik -promyshlennost -kyrgyzskoj -respubliki -2008-2012g/ .  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 121 - 
 
  Chart 4.4 Manufacturing economic activity by type, 2014 -19 
(KGS million)  
 
Note:  Other includes wood and paper products, electrical equipment, vehicles, chemicals, pharmaceuticals, 
machinery and equipment, computers, and electronics and optical equipment.  
Source:  National Statistical Committee.  
Chart 4.5 Average annual number of employees, by type of manufacturing, 2014 -19 
(Number of persons)  
 
Note:  Other includes electrical equipment, vehicles, chemicals, pharmaceuticals, machinery and 
equipment, computers, electronics and optical equipment.  
Source:  National Statistical Committee.  
050,000100,000150,000200,000250,000300,000
2014 2015 2016 2017 2018 2019Basic metals & fabricated metal products Food products, drinks & tobacco
Rubber & plastic products Textiles, clothing & footwear
Refined petroleum products OtherManufacturing production by type of economic activity, 2014 -19
Source:   National Statistical Committee.(KGS million)
Note:   Other includes wood and paper products, electrical equipment, vehicles, chemicals, pharmaceuticals, machinery and equ ipment, 
computers, and electronics and optical equipment.
050,000100,000150,000
2014 2015 2016 2017 2018 2019Basic metals & fabricated metal products Food products, drinks & tobacco
Rubber & plastic products Textiles, clothing & footwear
Refined petroleum products Wood & paper products
OtherAverage annual number of employees by type of manufacturing economic activity, 2014 -19
Source:   National Statistical Committee of the Kyrgyz Republic.(Number of persons)
Note:   Other includes electrical equipment, vehicles, chemicals, pharmaceuticals, machinery and equipment, computers, electr onics 
and optical equipment.WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 122 - 
 
  Table 4.5 Overview of industrial manufacturing sector, 2014 -19 
 2014  2015  2016  2017  2018  2019  
Share in GDP, %  16.5 16.7 18.2 18.7 18.6 17.9 
Employment ('000)  126 129 120 137.6  137.4  .. 
Average monthly wage (KGS)  19,335  20,896  23,299  25,289  24,935  .. 
Economic output (KGS billion)  140.3  140.6  163.3  181.6  199.9  219.2  
Indices of industrial output 
(percentage compared with 
previous year)  98.4 95.6 104.9  111.5  105.4  78.7 
Number of enterprises  1,745  1,622  1,707  1,728  1,725  .. 
Financial situation (profit – 
loss) (KGS billion)  .. .. 25.4 11.1 8.1 .. 
.. Not available.  
Source:  National Statistical Committee,  Manufacturing Industry of the Kyrgyz Republic . Viewed at: 
http://www.stat.kg/en/publications/sbornik -promyshlennost -kyrgyzskoj -respubliki -2008-2012g/ ; 
and Kyrgyzstan, Brief Statistical Handbook , 2019. Viewed at: 
http://www.stat.kg/media/publicationarchive/40d3dbd4 -2455-41b1-a2f2-aaecf5f887f0.pdf .  
At present, work is underway to build cooperative ties between the industrial enterprises of 
the EAEU member States and to invo lve small and medium -sized enterprises in production chains 
by creating a Eurasian network of industrial cooperation and subcontracting. Such a network will 
allow the optimization of production processes by building a more efficient organizational structur e 
and ensuring optimal utilization capacities in the EAEU. Industrial cooperation between the EAEU 
and the Kyrgyz Republic includes activities such as the production of machinery and equipment for 
the mining industry, the energy sector, the production of c onstruction materials, and light industry. 
Another coordinated effort at the EAEU level is a framework for joint export development measures.  
The Kyrgyz Republic has also given direction and support to the manufacturing sector through 
several policy initi atives in recent years. The SCIESU  is the government agency that oversees the 
industrial sector and provides policy direction. It has set out a direction for industrial policy that 
emphasizes a number of trade issues, such as promoting exports, investment,  and quality standards, 
and improving supply chains (Box 4. 1). The draft Law on Industry and Industrial Policy was under 
consideration by government authorities as at October 2020. A number of laws or resolutions have 
been passed in recent years, with an e mphasis on promoting certain industrial subsectors or industry 
in general:  
• Government Order No.  118-r of 3  May 2019 on Financing the Development of Processing 
and Conversion Enterprises, which is to provide state support to business entities engaged 
in man ufacturing and industrial activities in the fields of food processing and clothing by 
providing subsidi zed credit and VAT reductions37; 
• The Zhana Diorgo Kyrk  Kadam for 2018 -2023 programme, approved by Resolution 
No. 1836-VI of 25  August  2017, which will create a technopolis or clusters of light 
industry, in particular the textile, leather, and footwear sectors38; 
• Government Resolution No.  403 of 23  June 2017 o n Transfer of the Parcel of Land, which 
transfers a parcel of land for the purpose of building a technopolis of textile and garment 
 
37 Ministry of Justice. Vie wed at: http://cbd.minjust.gov.kg/act/view/ky -kg/217009 .  
38 Ministry of Justice. Viewed at: http://cbd.minjust.gov. kg/act/view/ru -ru/216052#unknown .  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 123 - 
 
  production for the Association of Light Industry Enterprises of the Kyrgyz Republic 
(LEGPROM)39; 
• Government Resolution No.  350 of 17  July 2019 on Approval of the Concept of 
Development of Jewellery Industry of the Kyrgyz Republic for 2019 -2022, which creates 
favourable conditions for the development of the jewellery industry, including establishing 
a special customs zone and ma king a request to the EEC for zero customs duties on 
jewellery inputs40;  
• Resolution No.  1509-VI of 13  April 2017 on Instruction to the Government of the Kyrgyz 
Republic Concerning Protection and Support of Domestic Producers, Exporters in the 
Conditions o f Integration into the Eurasian Economic Union, which aims to improve 
macroeconomic indicators, investment, and the situation of domestic producers and 
exporters41; and  
• Government Resolution No.  191 of 30  March  2017 on the Program of Development of the 
Food and Processing Industry of the Kyrgyz Republic for 2017 -2021, which approves a 
programme and action plan for the development of the food processing industry.42 
Box 4.1 Main direction of industrial policy  
Provide export orientation; the main objective is to promote the growth of industrial exports.  
Provide support, opportunities, and protection of new industries, which should not contradict EAEU 
or WTO rules.  
Promote k now-how and innovation for the production of high -tech and innovative products for 
export.  
Promote investment for industrial development.  
Provide quality and international certification, in particular implementation of ISO and 
international standards.  
Position the Kyrgyz Republic as a supplier country through adherence to logistics and 
communications systems standards to improve supply chains.  
Modernize technology and equipment; support for affordable loans or leasing to do so.  
Train specialists and m anagers.  
Improve conditions on the labour market; improve qualifications of specialists.  
Promote energy efficiency, environmental protection, conservation of biodiversity, and 
management of industrial effluents and wastes.  
Promote a social partnership t hat takes into account the interests of employers and employees.  
Create both vertical and horizontal clusters.  
Source:  State Committee for Industry, Energy and Subsoil Use, Main Directions of Industrial Policy . Viewed 
at: http://www.gkpen.kg/index.php/2018 -01-09-06-31-11.  
 
39 Ministry of Justice. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/100112 .  
40 Ministry of Justice. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/14620 .  
41 Ministry of Justice. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/78040 .  
42 Ministry of Justice. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/99894 . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 124 - 
 
  4.4  Services  
4.4.1   Financial services  
The Kyrgyz Republic's financial services sector continues to develop with gradual growth in 
total assets, increased access to financial produ cts, and improved financial stability. The sector 
continues to be dominated by commercial banks, which comprised about 92% of total assets in 
2018 (Table 4.6).43 The percentage of bank loans and deposits in foreign currency declined over the 
period due to restrictions put in place to reduce dollarization. This was in response to the 
2015 currency shock that exposed certain vulnerabilities, mainly the inability of borrowers to repay 
foreign currency loans after the significant depreciation (Section 4.4.1.1).  For 2018, the IMF 
encouraged loans in dollars to be reduced to 38% and deposits in dollars to be reduced to 44% in 
favour of the local currency.44 As at the end of 2019, the Kyrgyz Republic had reduced these to 
35.1% and 38.2% , respectively, but as at mid -2020 these had increased slightly.45 Furthermore, 
the IMF has noted that the overall soundness and stability of the banking sector has improved in  
recent years, but there were still some concerns such as the acquisition of a problem bank that 
created a conflict of interest and slow liquidation of insolvent banks (Section 1. 2).46  
Despite the many positive developments and the move towards more stabi lity and confidence 
as outlined in its banking strategy (Section 4.4.1.1), the Kyrgyz Republic still has a number of 
vulnerabilities or room for improvement. For example, according to the European Bank for 
Reconstruction and Development's (EBRD) Kyrgyz Rep ublic Country Strategy, 2019 -24, the banking 
sector was characterized as needing improvement in several areas as it had low penetration, 
sophistication, and diversification. It was suggested to continue to develop local currency lending, 
offer new products  such as mobile banking, and provide intermediate financing to MSMEs.47 
Another significant development in the sector is the impact of the Kyrgyz Republic joining the 
EAEU, whereby the Kyrgyz Republic adheres to the provisions on financial markets that for esee a 
gradual deepening of economic integration to create a common financial market by 2025. 
Section  XVI (Article  70) and Annex 17 with its Protocol of Financial Services provide the framework, 
including a list granting national treatment (Appendix I) and  a list of limitations in respect of 
establishment and/or activity (Appendix II). Through the Protocol on Amendments to the Treaty on 
the Eurasian Economic Union of 29 May 2014 and Separate International Agreements Incorporated 
into the Law of the Eurasian  Economic Union, in view of the Accession of the Kyrgyz Republic to the 
Treaty on the Eurasian Economic Union of 29 May 2014 (Amendments Protocol), the Kyrgyz Republic 
made additions to Appendix I and Appendix II. Appendix I has generally no restrictions e xcept for 
services of insurance agents and insurance brokers, whereby certain intermediary insurance 
activities are restricted.48 In Appendix II, the Kyrgyz Republic specified three restrictions (financial 
service establishments, deposit protection, and ce ntral depository) in respect of paragraphs  6 and/or 
11 of Annex  17 on national treatment or establishment.  
Furthermore, the EAEU plan for harmonization of the financial sector sets out three phases 
for harmonization of legislation: Stage I – revision of ba sic concepts and definitions ( 2020-21); 
Stage  II – licensing and harmonization of professional activities ( 2021-24); and Stage III – 
supervision and corporate governance (2022 -25). The Kyrgyz Republic, together with other EAEU 
member States, is currently w orking on implementation of Stages I and II.49 Pursuant to the EAEU 
Advisory Committee on the Financial Markets, EAEU member States approved the Agreement on the 
Harmonization of the Legislation of the EAEU Member States in the Financial Sector50, which wa s 
 
43 The assets of state banks increased considerably over the period, more than doubling.  
44 EBRD, Kyrgyz Republic Country Strategy, 2019 -2024, 2019. Viewed at: 
https://www.ebrd.com/cs/Satellite?c=Content&cid=1395238316086&d=&pagename=EBRD%2FContent%2FDo
wnloadDocument . 
45 Informatio n provided by the authorities.  
46 IMF (2019), Kyrgyz Republic: 2019 Article  IV Consultation –Press Release and Staff Report , IMF 
Country Report No.  19/208. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2019/07/02/Kyrgyz -
Republic -2019-Article -IV-Consultation -Press-Release -and-Staff-Report -47085 .  
47 EBRD, Kyrgyz Republic Country Strategy, 2019 -2024, 2019. Viewed at: 
https://www.ebrd.com/cs/ Satellite?c=Content&cid=1395238316086&d=&pagename=EBRD%2FContent%2FDo
wnloadDocument .  
48 See also WTO document WT/REG366/1, 29 August 2018.  
49 Information provided by the authorities.  
50 E.g. banking activities, securities market insurance, and currency regul ations.  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 125 - 
 
  signed in 2018 and entered into force on 1  March  2020. The Concept for forming an EAEU common 
financial market was approved on 1 October 2019. In particular, work continues on the preparation 
and approval of the following draft international agreements t hat will be included in EAEU law: on 
the admission of brokers and dealers of one EAEU member State to participate in organized trading 
of exchanges (trade organizers) of other Member States; on the mutual admission of placing and 
circulating securities in organized trading in EAEU member States; on the procedure for the 
exchange of information included in credit histories within the EAEU; on the Advisory Council on the 
Exchange Rate Policy of the EAEU member States; on a standardized licence; on coordinated  
approaches to the regulation of currency legal relations; and on the adoption of liberalization 
measures .  
Table 4.6 Financial services, 2013 -19 
(KGS million/%)  
  2013  2014  2015  2016  2017  2018  2019  
Total assets of the financial 
system, of which:  134,528  166,476  197,912  191,773  213,314  242,009  275,840  
Banks  111,092  137,621  178,028  178,178  198,011  221,954  248,988  
Assets of state banks  19,035  24,252  33,796  37,005  41,812  50,591  50,977  
 Non-bank financial and 
credit institutions ( NBFCO ) 23,436  28,855  19,884  13,594  15,303  20,055  26,852  
Loans, including:  73,069  101,702  108,928  104,414  121,057  144,848  168,540  
 Banks (debt on loans of 
commercial banks)  53,962  78,756  93,954  93,499  108,325  127,882  146,439  
State bank  9,090  13,661  17,714  21,275  25,229  31,851  34,900  
NFCU  19,107  22,946  14,975  10,915  12,732  16,966  22,102  
Non-performing loans / total 
loans  3.2 2.3 2.4 3.4 2.5 2.2 .. 
Non-performing loans / bank 
loans  4.3 3.0 2.8 3.8 2.8 2.5 .. 
Non-performing loans / NFCU 
loans  12.1 10.4 17.8 32.9 24.1 18.5 4.8 
Bank loans in foreign currency 
/ total loans  39.6 44.6 47.5 39.9 34.0 33.5 30.5 
Loans / GDP  20.6 25.4 25.3 21.9 22.8 25.4 28.6 
Deposits from which  67,415  82,549  102,886  107,079  121,597  133,118  151,346  
Banks  67,334  82,535  102,878  107,079  121,597  133,118  150,953  
NFCU  81.1 14.2 8.5 0.0 0.0 0.0 393.3  
Bank deposits in foreign 
currency / total deposits  48.7 56.3 65.6 51.0 47.5 43.9 .. 
Deposits / GDP  19.0 20.6 23.9 22.5 22.9 23.9 .. 
For reference:                
Non-performing bank loans 
(overdue debt)  1,769  1,700  1,815  2,750  2,378  2,350  2,570  
Bank loans in foreign currency  28,924  45,393  51,738  41,624  41,119  48,516  51,462  
Bank deposits in foreign 
currency  32,848  46,501  67,494  54,652  57,758  58,484  57,668  
GDP 355,295  400,694  430,489  476,331  530,476  569,386  590,042  
Non-performing loans to NFKU  539 680 851 837 692 784 1,063  
Deposit base of NFCU   .. .. .. .. .. .. 19.5 
 Demand deposit  1,108,586  438,109  345,306  452 970 2,030  1,406  
 Time deposit  79,969,283  13,726,842  8,126,906  8,128  14,490  17,474  19,744  
Total amount of deposits of 
NFCU  81,077,869  14,164,951  8,472,212  8,580  15,460  19,503  21,150  
..  Not available.  
Source:  Information provided by the authorities.  
4.4.1.1   Banking  
The Kyrgyz Republic's banking sector is composed of 24 commercial banks, of which 16 have 
foreign participation in terms of capital; of these, 11 have a majority of foreign capital (Box 4.2).51 
During the review period, there was a steady increase in the assets and credit portfolio of commercial 
banks, with assets reaching KGS 263 billion as at the first quarter 2020. The percentage of 
non-performing loans declined slightly from 4.3% to 2.5% (Ta ble 4.6).52 As a result of measures 
taken after the 2014 Russian economic crisis, there was a continual and steady reduction in the 
dollarization of the credit portfolio, from 57.6% in 2014 to 35.1% at the end of 2019.53 In terms of 
 
51 NBKR, The Financial Sector Stability Report of the Kyrgyz Republic , December 2019. Viewed at: 
https://www.nbkr.kg/DOC/30012020/000000000053806.pdf . These figures do not include insolvent banks.  
52 However, the majority of non -performing loans were in the trade sector of the economy.  
53 The highest level of dollarization in the period was 65.6% in 2015.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 126 - 
 
  the structure of commer cial bank loans in 2019, the majority (58%) were for the production (internal 
consumption) sector, while 15.8% were to finance imports, and about 4% were for the 
export -oriented production sector.54 According to the IMF, the Kyrgyz banking sector has high 
capitalization and ample liquidity, and is generally sound; however, it suffers from low profitability 
and there are concerns over bank insolvency (Section 4.4.1 and Section 1).55  
Box 4.2 Overview of banking sector, 31 December 2019  
• 24 commercial banks, including:  
  - a branch of the National Bank of Pakistan  
  - 323 branches  
• Aggregate assets: KGS 146.4 billion  
• Total liabilities: KGS 206.9 billion  
• Credit portfolioa volume: KGS 3.86 billio n 
• Share of non -performing loans: 8% (KGS 11.7 billion)  
• Aggregate deposit base: KGS 151.0 billion  
• Net total capital: KGS 43.6 billion  
- share of foreign contribution in capital: 31.9 % or KGS 9.1 billion  
• Total capital adequacy ratio of the banking system: 2 4.1%  
• Liquidity ratio of the banking system: 64.0%  
• Return of assets (ROA) of the banking sector: 1.3%  
a Excluding loans extended to the banks and other financial -credit organizations.  
Source:  National Bank of the Kyrgyz Republic, Development Trends of the Banking Sector . Viewed at: 
https://www.nbkr.kg/index1.jsp?item=80&lang=ENG .  
The NBKR is the regulatory and supervisory independ ent government body that oversees 
activities of banks and finance and credit institutions, including licensing them. The main standards 
and requirements established by the NBKR in order to strengthen the stability and reliability of the 
banking system are:  (i) a maximum risk per borrower or group of related borrowers; (ii)  maximum 
risk for interbank placements in a bank; (iii)  minimum authorized capital of banks; (iv)  capital 
sufficiency (adequacy) ratios; (v)  additional stock of capital of the bank ("capit al buffer"); 
(vi) leverage; (vii) liquidity ratio; (viii) standard maximum risk obligations for individuals; 
(ix) requirements for the formation of reserves; and (x)  requirements to limit and manage currency, 
credit, operational, and other risks. Prudentia l standards and requirements are established for all 
commercial banks operating in the Kyrgyz Republic, regardless of foreign or domestic capital. One 
regulatory development during the review period was the transition to risk -based supervision of 
banks by the NBKR.  
The main law regulating the NBKR, banks, and banking activities was new as at 2016 and 
replaces a number of previous laws on the same subject plus related rules or regulations.56 Further, 
about 130 resolutions of the NBKR Board were adopted to re gulate banks and non -bank financial 
intermediaries. Thus, the legal framework underwent significant revision (Table 4.7). As part of 
initiatives to develop regions and digitalize the economy, a Resolution on Amending Certain 
Normative Legal Acts of the Nat ional Bank of the Kyrgyz Republic was adopted in June 2019 
regarding the use of electronic signatures.57 The changes are aimed at expanding remote servicing 
of the population by financial and credit organizations. The users of remote service systems will a lso 
be able to open additional bank accounts, receive loans, and perform other operations that currently 
require a paper contract or signature.  
In August 2018, the new Law on Countering the Financing of Terrorist Activities and the 
Legalization (Launderin g) of Criminal Incomes was adopted, in accordance with which new versions 
of the Provision on Minimum Requirements for the Organization of Internal Control in Commercial 
Banks in Order to Combat the Financing of Terrorist Activities and Legalization (Laund ering) of 
 
54 NBKR, The Financial Sector Stability Report of the Kyrgyz Republic , December 2 019. Viewed at: 
https://www.nbkr.kg/DOC/30012020/000000000053806.pdf . 
55 IMF (2019), Kyrgyz Republic: 2019 Article  IV Consultation –Press Release and Staff Report , IMF 
Country Report No.  19/208. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2019/07/02/Kyrgyz -
Republic -2019-Article-IV-Consultation -Press -Release -and-Staff-Report -47085 . 
56 NBKR, Law No.  206 of 16 December 2016 on the National Bank of the Kyrgyz Republic, Banks and 
Banking Activity. Viewed at: https://www. nbkr.kg/index1.jsp?item=42&lang=ENG . 
57 Resolution No.  2019-P-12 / 32 -3 of 19 June 2019 on Amending Certain Normative Legal Acts of the 
National Bank of the Kyrgyz Republic.  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 127 - 
 
  Criminal Proceeds and the Provision on the Procedure for Conducting Exchange Operations with Cash 
Foreign Currency in the Kyrgyz Republic were also adopted. At the same time, amendments and 
additions to a number of normative legal acts of the NBK R regulating the activities of banks and 
non-bank financial institutions (NBFIs) were also enacted. The changes establish requirements to 
implement an internal control programme in banks for the purpose of, inter alia , countering the 
financing of terrorist  activities through a risk -based approach when conducting due diligence, and 
reporting to the financial intelligence unit.  The changes were enacted to allow the Kyrgyz Republic 
to comply with recommendations of the Eurasian Group on combating money launder ing and 
financing of terrorism.   
As part of improving its regulatory framework and building resilience in the financial sector, 
the Kyrgyz Republic is working on implementing the Basel III regulations. As part of this effort, work 
was ongoing with the ADB  on a technical assistance project to implement Pillar 2 of Basel III, i.e. 
supervisory review practices and approaches. In particular, this project will help the NBKR by 
improving its capabilities in terms of stress -testing, econometric forecasting, micro - and 
macroprudential supervision, and capital adequacy assessments.58 In order to improve the 
normative legal acts of the NBKR in terms of market risk management (interest rate risk) and bring 
them in line with the international standards of the Basel Com mittee on banking supervision in terms 
of disclosure of information by banks for users in 2019, separate regulatory acts were approved. As 
at May 2020, a number of other new legislative initiatives were enacted or were in the pipeline in 
order to implement  Basel III: Resolution of the Board of the National Bank on the Minimum 
Requirements for Managing the Liquidity Risk of Commercial Banks of the Kyrgyz Republic; 
amendments and additions to the Instruction on the Determination of Standards of Sufficiency 
(Adequacy) of Capital of Commercial Banks; Resolution on Calculating Issue of Total Capital 
Adequacy Ratio Taking into Account Operational Risks, Leverage Ratio, and Liquidity Indicators in 
Foreign Currency; and Provisions on Requirements for Disclosing Info rmation on the Activities of a 
Commercial Bank, and on the Calculation of the Liquidity Coverage Ratio of Commercial Banks of 
the Kyrgyz Republic.59 
Table 4.7 Main laws and regulations for the banking sector, 2020  
Law/regulation  Date  
Law No.  206 on the National Bank of the Kyrgyz Republic, Banks and Banking 
Activities  16 December  2016 
Provision on Minimum Requirements for Risk Management in Banks of the Kyrgyz 
Republic, adopted by NBKR Board Resolution No.  2017-P-12 / 25 -8 (Legal act)  15 June  2017 
Provision on Corporate Governance in Commercial Banks of the Kyrgyz Republic, 
adopted by NBKR Board Resolution No.  19/12  17 May  2017 
Instruction on Requiremen ts for Bank Operations with Affiliates and Related Parties of 
the Bank, adopted by NBKR Board Resolution No.  21/5 31 May  2017 
Rules for the Formation of an Internal Control and Internal Audit System in Banks and 
Non-banking Financial and Credit Organizations Licensed and Regulated by the 
National Bank of the Kyrgyz Republic, adopted by NBKR Board Resolution No.  2017-P-
12/25 -3-(Legal act)  15 June  2017 
Provision on the Provisional Administration, adopted by NBKR Board Resolution 
No. 2017-P-12/23 -8 (Legal act)  8 June  2017 
Provision on the Liquidation of Banks, adopted by NBKR Board Resolution No.  2017-P-
12/23 -5 (Legal act)  8 June  2017 
Provision on the Procedure for Conducting Certain Banking Operations by the Banks of 
the Kyrgyz Republic in the Ca se of Introducing the Temporary Administration Regime 
or the Beginning of the Liquidation Procedure, adopted by NBKR Board Resolution 
No. 2017-P-12/25 -9 (Legal act)  15 June  2017 
Provision on the Criteria for the Consistency of Commercial Banks and Non -banking 
Financial and Credit Organizations, adopted by NBKR Board Resolution No.  2017-P-
12/23 -9 (Legal act)  8 June  2017 
Provision on Licensing the Activities of Banks, adopted by NBKR Board Resolution 
No. 2017-P-12/23/1 (Legal act)  8 June  2017 
Provision on the Procedure for Endowing a Foreign Bank with Cash Funds of Its Branch 
as Capital, adopted by NBKR Board Resolution No.  2017-P-12/23 -2 (Legal act)  8 June  2017 
NBKR Board Resolution No.  2017-P-12 / 23 -3 (Legal act) on the Minimum Amount of 
Authorized and Own (Regulatory) Capital of Commercial Banks  8 June 2017  
 
58 ADB, Kyrgyz Republic: Promoting Financial Sector Resilience, Project Data Sheet . Viewed at: 
https://www.adb.org/projects/53392 -001/main#project -pds.  
59 NBKR Board Resolutions No.  2019-P-12/17 -3 of 29 March 2019 and No.  2019-P-12/20 -2 of 
15 April 2019.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 128 - 
 
  Law/regulation  Date  
NBKR Board Resolution No.  2018-P-12/24 -2 (Legal act) on Approving the Instruction 
on Implementation Banking Supervision  20 June 2018  
NBKR Board Resolution No.  2019-P-12/34 -4 (Legal act ) on Approving the Provision on 
Consolidated Supervision and on Periodic Regulatory Consolidated Reporting  28 June 2019  
Recommendations on the Application of IFRS 9, NBKR Oversight Committee 
Resolution No.  51/2  28 December 2017  
Resolution on Amending Certain Normative Legal Acts of the National Bank of the 
Kyrgyz Republic  19 June 2019  
Source:  Information provided by the authorities. The full list of regulatory legal acts governing the activities 
of banks can be found at : https://www.nbkr.kg/index1.jsp?item=103&lang=RUS .  
In 2017, the Kyrgyz Republic established a policy for the banking sector titled Banking Sector, 
Main Directions for 2018 -2021 (Box 4.3).60 It recalls achievements from the previous strategy 
2014-17, such as opening of new banks, growth of the deposit base, and capitalization of banks with 
foreign capital that have led to positive outcomes including strengthening investor confidence in the 
banking system. Building on this, the new strategy aims to, inter alia , further strengthen the stability 
of the banking sector and increase its role in the economy. To implement the strategy, an Action 
Plan was also developed, which sets out 26 activities co nsisting of 31 tasks.61 Thus far, three 
activities were carried out during 2018 -19, while the other 23 have a deadline of 2021.62 
Box 4.3 Banking sector, main directions for 2018 -21 
1. Creating prerequisites for in creasing the level of financial intermediation, including through the 
introduction of innovations in banking  
1.1 Credit development  
1.2 Remote banking  
1.3 Precious metals savings and market development  
2. Creating conditions and prerequisites to reduce interest rates on loans  
3. Creating conditions for improving quality and expanding access to banking services  
4. Promoting the expansion of Islamic finance principles  
5. Improving and strengthening the stability of the banking system; conducting comprehensive 
measures for t he implementation of the elements of Basel II and III and further improving the 
principles based on a risk -based approach  
6. Harmonizing legislation in the framework of integration cooperation in the EAEU  
7. Enhancing cybersecurity  
Source:  NBKR, Banking Sector , Main Directions for 2018 -2021, NBKR Board Resolution No.  2017-P-11 / 54 -
1-(BS) of 27 December 2017. Viewed at: 
https://www.nbkr.kg/contout.jsp?item=1436&lang=KGZ&material=9 0252.  
In August 2018, the NBKR Board took policy decisions to amend a number of regulatory legal 
acts in order to reduce risks in the activities of banks, reduce the level of dollarization of the economy 
and interest rates on loans, and encourage banks to  participate in government programmes related 
to financing agriculture, and export -oriented, and import -substituting enterprises. To implement 
some of these measures, a Resolution prohibited lending in foreign currencies for mortgages and 
consumer credits,  required higher reserve requirements for loans in USD, and offered lower 
exchange rates for conversion of USD mortgages into national currency.63 In 2016,  as a result of  
amendments and additions for establishing restrictions on the distribution of profits  by banks and 
reducing the growth of classified loans, the Instruction on Determination of Capital Adequacy 
Standards of Commercial Banks of the Kyrgyz Republic (NBKR Board Resolution No.  18/2 of 
21 July 2004) was supplemented with the sixth and seventh ca tegories of balance sheet assets with 
a credit risk degree of 150% and 200%, respectively. For Category 6, commercial, consumer, 
mortgage, and other loans in foreign currencies should be taken into account, with the exception of 
loans in the currency of th e EAEU member States, and also with the exception of balance sheet 
 
60 NBKR, Banking Sector, Main Directions for 2018 -2021, NBKR Board Resolution No.  2017-P-11 / 54 -1-
(BS) of 27 December 2017. Viewed at: 
https://www.nbkr.kg/contout.jsp?item=1436&lang= KGZ&material=90252 .  
61 Action Plan of the Main Directions for Development of the Banking Sector and the Microfinance Sector 
in the Kyrgyz Republic for 2018 -2021. National Bank Order No.  2018-Pr-111/88 -O of 8 May 2018.  
62 The three so far are "Increasing an availability and reduc ing of cost of financial services in the regions 
of the Kyrgyz Republic", "Promoting efficiency improvements and reducing of cost of banking products and 
services", and "Revision of basic concepts and definitions within the framework of integration coopera tion in 
the EAEU".  
63 NBKR, Report on Stability of the Financial Sector of the Kyrgyz Republic , 2017.  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 129 - 
 
  assets specified in Category 4. Category 7 should include loans to individuals and individual 
entrepreneurs in national currency with a nominal annual rate of 30% or more at the time of iss uance 
of loans. In the area of bank correspondent accounts, the authorities note the issue of market access 
in other countries. In particular, commercial banks face obstacles to open correspondent accounts 
in foreign banks due to country risks, stricter co mpliance measures, requirements for deposits, bank 
asset size, and minimum payment amounts.64 This has an impact, as it leads to a reduction in 
financial services and concentration of these services by only a few providers, plus it can increase 
systemic ri sks for the financial sector.65 
4.4.1.2   Non-banking financial and credit organizations sector  
The non -banking financial and credit organizations (NBFCO) sector consists of 
microfinance/microcredit organizations (MFOs), credit unions (CUs), specialized financial -credit 
organizations (SFCOs), and exchange/credit bureaus. As at 31 December 2019, there were 664 such 
organizations: 1 SFCO, 106 CUs, 142 MFOs, 413 exchange bureaus, and 2 credit bureaus.66 Most of 
these entities operate pursuant to a licence of  the NBKR and are regulated by it; only the microcredit 
companies operate on a certificate of registration and receive a licence for certain operations. 
Regulation is conducted via off -site supervision and inspections.  
The microfinance sector has been long established in the Kyrgyz Republic; it was first 
established by foreign donor organizations about 20 years ago. It underwent rapid growth, and the 
first law on microfinance was enacted in 2002.67 It still maintains its original focus of providing 
financial services to those mainly in rural areas who do not otherwise have access to financial 
services. One of the developments during the review period was the reduction in the number of 
MFOs and their lending as a result of some of them transforming into b anks. This was reportedly 
due to the restrictions on hard -currency lending and the need to expand activities, provide banking 
services, gain access to financing in the form of deposits from the population, and increase the client 
base.68 The sector continu es to rely heavily on foreign credits or loans as opposed to domestic 
sources of financing, a situation that was amplified from 39% in 2017 to 52% in 2019.69 In 2019, 
the main volume of credit funds of NBFCOs was issued in the city of Bishkek (26%) and in the Osh 
(23%) and Chui regions (14%).  
Guided by the policy document Main Directions for Development of the Microfinance Sector in 
the Kyrgyz Republic for 2018 -2021, the main goal of the microfinance sector is to "increase access 
to quality financial servic es and provision of the financial and social intermediation for low -income 
clients" as part of the Kyrgyz Republic's National Sustainable Development Strategy.70 It aims to 
achieve this by improving the legislative and regulatory framework, strengthening t he system of 
regulation and supervision, improving institutional development, developing market infrastructure, 
ensuring transparency, and protecting the rights of consumers.71 As at 2020, the main achievements 
have been to improve the regulatory legal fra mework by making amendments or additions to the 
terms of restructured loans, the Instruction on Conducting Inspections, the regulation activities of 
those with Islamic principles of finance, the Regulation on the Procedure for Issuing a License for 
 
64 Information provided by the authorities.  
65 World Bank, The Decline in Access to Correspondent Banking Services in Emerging Markets: Trends, 
Impacts, and Solutions , 2018. Viewed at: 
http://documents.worldbank.org/curated/en/552411525105603327/The -decline -in-access -to-correspondent -
banking -services -in-emerging -markets -trends -impacts -and-solutions -lessons -learned -from-eight-country -case-
studies .  
66 NBKR, Annual Report 201 8. Viewed at: https://www.nbkr.kg/DOC/27062019/000000000052567.pdf .  
67 AKDN, Microfinance . Viewed at: https://www.akdn.org/where -we-work/central -asia/kyrgyz -
republic/microfinance -kyrgyz -republic ; and Law No.  124 of 23 July 2002  on Microfinance Organizations in the 
Kyrgyz Republic.  
68 Euromoney, "Impact Banking: Microfinance Comes of Age in Kyrgyzstan", 19 September 2018. 
Viewed at: https://www.euromoney.com/article/b1b0967crmxs3m/impact -banking -microfinance -comes -of-
age-in-kyrgyzstan ; and information provided by the authorities.  
69 NBKR, Annual Report 2018 . Viewed at: https://www.nbkr.kg/DOC/27062019/000000000052567.pdf ; 
and information provided by th e authorities.  
70 NBKR Board Resolution No.  2017-P-11/51 -4 of 13  December 2017.  
71 NBKR, Main Directions for Development of the Microfinance Sector in the Kyrgyz Republic for 
2018-2021. Viewed at: https://www.nbkr.kg/contout.jsp?item=3206&lang=ENG&material=84608 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 130 - 
 
  the Rig ht to Conduct Exchange Operations with Foreign Currency in Cash, and the Regulation about 
Licensing Activities of Microfinance Companies.72  
The main NBFCOs, in terms of assets, are microcredit organizations. As noted above, due to 
certain developments in the sector during the review period, the amount of microcredit issued 
declined substantially in 2015 -16 before gradually increasing again and almost recovering to 2014 
levels in 2019 (Table 4. 8). The main sector served, both in terms of amount of credit an d number 
of recipients, was the agriculture sector, in large part due to the rural focus of the MFOs. A similar 
situation also exists for the CUs, where agriculture dominates. There have been significant increases 
in microcredits for the construction, indu stry, and consumer credit sectors during the review period, 
and decreases for trade and catering. This is due to changes in the economic orientation of the 
population and the development of the NBFCO sector.  
Table 4.8 Overview of microcredit and credit union sectors, 2014 -19 
 2014  2015  2016  2017  2018  2019  
Microcredit:  
Issued microcredit by 
sector ('000 KGS)  30,523,409  18,325,202  13,300,465  17,166,544  23,116,240  30,188,227  
 Industry  223,727  160,232  100,745  161,790  234,552  835,112  
 Agriculture  14,582,363  8,148,035  4,184,544  4,823,551  7,083,059  9,424,247  
 Construction  1,191,915  867,212  987,929  1,525,062  2,158,017  3,143,672  
 Trade and catering  6,487,950  3,126,509  2,152,495  2,774,268  3,160,722  3,799,296  
 Consumer credits  4,612,221  3,697,935  3,927,047  6,081,621  5,751,768  8,555,043  
 Other  3,425,233  2,325,279  1,947,706  1,800,252  4,728,121  4,430,857  
Number of recipients 
by aims  456,587  333,658  239,413  307,997  481,895  624,460  
 Industry  2,897  2,385  1,562  2,492  4,266  20,265  
 Agriculture  237,716  161,531  80,812  87,961  161,372  210,291  
 Construction  13,728  11,707  13,787  21,831  36,033  45,133  
 Trade and catering  64,288  36,593  24,708  26,744  36,655  44,862  
 Consumer credits  85,916  75,372  82,216  139,021  126,563  181,447  
 Other  52,042  46,070  36,328  29,948  117,006  122,462  
Average size loan  .. .. .. 55.7 48.0 48.3 
Repayment of 
microcredit (%)  .. .. .. 97.2 91.1 93.4 
Credit unions:  
Credits of CUs, by 
industry ('000 KGS)  1,152,563  933,532  940,554  999,124  1,000 332  963,741  
 Industry  11,078  8,460  9,220  8,890  8,243  5,496  
 Agriculture  540,920  475,406  446,926  402,803  356,685  296,780  
 Transport  5,550  6,499  5,027  7,398  10,548  13,442  
 Communication  0 0 0 334 0 0 
 Trade and commerce  385,918  232,635  215,629  228,947  249,040  228,599  
 Procurement and 
processing  2,541  2,226  8,358  9,402  8,904  8,126  
 Construction and 
mortgage  44,910  53,552  96,422  153,317  167,859  188,377  
 Services  12,783  15,279  9,183  9,750  9,873  8,532  
 Other  148,863  139,476  149,790  178,283  189,180  214,389  
.. Not available.  
Source:  National Statistical Committee of the Kyrgyz Republic, Microcrediting of Population by Aims . Viewed 
at: http://www.stat.kg/en/statistics/download/dynamic/478/ ; Number of Recipients of Microcrediting 
by Aims . Viewed at: http://www.stat.kg/en/statistics/download/dynamic/477/ ; Microcrediting of the 
Population for January -December 2017 -2019. Viewed at: 
http://www.stat.kg/en/statistics/download/operati onal/1201/ ; and NBKR, Statistics of Microfinance 
Organizations and Credit Unions . Viewed at: 
https://www.nbkr.kg/index1.jsp?item=2265&lang=ENG .  
4.4.1.3   Insurance  
The Kyrgyz Republic's insurance sector has exhibited steady growth in recent years, 
somewhat propelled by a movement requiring more types of insurance to be compulsory rather than 
 
72 NBKR,  Annual Report 2018 . Viewed at: https://www.nbkr.kg/DOC/27062019/000000000052567.pdf ; 
and R egulations No.  40/4 of 27 July 2011 and No.  78/26 of 23 December 2015.  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 131 - 
 
  voluntary, as was previously the case, and higher minimum capital requiremen ts.73 However, despite 
this growth, the sector has been described as still in its infancy, as it has one of the lowest 
penetration rates and densities74, in particular compared with those in other Commonwealth of 
Independent States (CIS) countries.75 This has b een attributed to a low level of financial inclusion 
and government support. It is also noted that the sector is highly concentrated, with the top five 
companies accounting for over two thirds of the market.  
As at January 2019, the insurance sector had 17 companies, mostly of domestic origin and 
one with state ownership76, a number that remained nearly constant during the review period 
(Box 4.4). The total volume of insurance premiums was 1.33 billion in 2019, of which property 
insurance was the largest par t, accounting for 62% of total premiums (Chart 4. 6). 
Box 4.4 Overview of insurance sector, as at 1 January 2019  
• 17 insurance or reinsurance, including:  
  - 12 organizations with 100% domestic capital  
  - 4 organ izations with foreign participation  
  - 1 organization with mixed capital  
• Total assets: KGS 3.99 billion  
• Total equity: KGS 3.86 billion  
• Total liabilities: KGS 907.1 million  
• Volume of insurance reserves by insurance/reinsurance organizations to meet obliga tions of 
agreements: KGS 271.5 million  
Source:  Information provided by the authorities.  
The main law on insurance remains the 1998 Law about the Organization of Insurance in the 
Kyrgyz Republic, although it was amended five times during the review period.77 The basic structure 
remains the same, and the law provides disciplines on establishment, activities, financial stability, 
accounting and reporting, and insurance supervision. Per the Law, there are some restrictions on 
foreign participation in th e sector. On the one hand, it specially allows Kyrgyz insurers to be 
re-insured with foreign reinsurers, but on the other it limits foreign intermediation, i.e. agents or 
brokers cannot conclude contracts on behalf of foreign insurance companies. The amend ments were 
in two main areas:  
• To add sections on insurance brokers and actuaries that define and regulate these 
activities. The amendments require persons performing these functions to be licensed. In 
the case of insurance brokers, the amendments allow foreign insurance brokers to work 
in the Kyrgyz Republic upon recognition of the foreign licence by the relevant authorities 
and legislation.78 
• To define types and sub -types of insurance, specify licensing requirements and state 
oversight of insurance activi ties, and improve the financial position of financial 
organizations.79 
 
73 Compulsory third -party motor vehicle insurance was expected to enter into force on 1 January 2021 
pursuant to the amendments to Law No.  27 of 13 March 2020 on Compulsory Insurance of Civil Liability of 
Motor Vehicle Owners and Law No.  209 on Compulsory In surance of Residential Premises against Fire and 
Natural Disasters, which was adopted on 31 July 2015 and entered into force on 11 February 2016. According 
to the authorities, insurance of residential premises against fire and natural disasters is voluntar y. 
74 As measured by the ratio of gross written premiums to GDP.  
75 RA Expert, Central Asia, Industry Research – Insurance , 1 November 2019. Viewed at: 
https://raexpert.eu/ files/Industry_report_Insurance_CA_01.11.2019.pdf .  
76 The Kyrgyz Republic – OJSC State Insurance Organization.  
77 Ministry of Justice, Law No.  96 of 23  July 1998 about the Organization of Insurance in the Kyrgyz 
Republic. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/105?cl=ky -kg.  
78 Ministry of Justice, Law No.  122 of 28 May 2015 about Modification and Amendments in Some Legal 
Acts of the Kyrgyz Republic. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/111165?cl=ky -kg.  
79 Ministry of Justice, Law No.  117 of 9 July 2014 about Modification and Amendments in the Law of the 
Kyrgyz Republic about the Organization  of Insurance in the Kyrgyz Republic. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/205338?cl=ky -kg.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 132 - 
 
  Chart 4.6 Insurance premiums according to type of insurance, 2019  
(premiums %)  
 
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
The other amendments were minor, making consequential changes due to other laws, e.g.  law 
on combating money laundering. In addition to the main law, there are a number of other laws on 
the various types of insurance.80 The oth er main laws about insurance adopted during the review 
period include Law No.  192 of 24 July 2015 on Compulsory Third Party Liability Insurance of Motor 
Vehicle Owners and Law No.  209 of 31 July 2015 on Compulsory Insurance of Residential Premises 
against Fire and Natural Disasters.81 The State Service for Regulation and Supervision of the 
Financial Market under the Ministry of Economy and Finance of the Kyrgyz Republic   is the insurance 
sector's regulatory body. Its main role with respect to the insurance sector is to receive reports from 
insurers on their activities and financial situation; perform compliance inspections; issue licences; 
enforce violations; and participate in liquidation in case of insolvency.  
In other developments, a Resolution was passe d in 2016 regulating the activities of insurance 
brokers, in particular the process for obtaining a licence.82 Also, the State Insurance Organization 
OJSC was established in 2015 pursuant to a Government Resolution with the purpose of creating 
economic con ditions for compensation of losses associated with damage or destruction of residential 
premises as a result of fire and natural disasters. It carries out activities on compulsory 
(i.e. insurance of premises against fire and natural disasters, insurance of  civil liability of the 
employer for harm to the employee, for operating hazardous production facilities, carrier liability for 
passengers, and liability insurance of carriers of dangerous goods) and voluntary types of insurance 
(insurance against fire and  other hazards, property insurance/leased property, insurance of land 
vehicles, civil liability against vehicle accidents, health insurance, and medical travel insurance).83 
The State Insurance Organization makes pay -outs in the event of an insured event, which is an 
event under an insurance contract concluded in accordance with the Law on Compulsory Insurance 
 
80 State Insurance Organization OJSC, Rules and Laws on Voluntary and Compul sory Insurance . Viewed 
at: http://gso.kg/ru/%d0%bd%d0%bf%d0%b0/ .  
81 Despite the title of the Law, the authorities confirm insurance of residential premises against fire and 
natural disasters is voluntary , not mandatory.  
82 Ministry of Justice, Government Resolution No.  239 of 11 May 2016 on Issues of Activity of Insurance 
Brokers in the Kyrgyz Republic. Viewed at: http://cbd.minjust.gov.kg/act/ view/ky -kg/98447 .  
83 Ministry of Justice, Government Resolution No.  883 of 28 December 2015 on the Establishment of the 
State Joint -Stock Insurance Organization Open Joint -Stock Company. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/98289 .  
Property 
insurance
62.0%Mandatory type 
of insurance
15.2%Personal 
insurance
14.7%Liability insurance
8.1%Insurance premiums according to type of insurance, 2019
Source:  WTO Secretariat calculations, based on data provided by the authorities.Total value of insurance premium:  KGS 1,332 millionWT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 133 - 
 
  of Residential Premises against Fire and Natural Disasters and the Rules for Compulsory Insurance 
of Residential Premises against Fire and Natural Di sasters, of 31 January 2020, No.  3, approved by 
the Protocol Board of the OJSC State Insurance Organization, that caused damage or destruction of 
residential premises during the validity period of the compulsory insurance contract (insurance 
policy) and co nfirmed by documents of the competent state bodies.  
The insurance sector is also bound by certain financial solvency, i.e. minimum capital 
requirements. The government raised the minimums in recent years, propelling the total equity 
growth for the sector.  As at 2020, the minimum capital requirements were as follows:  
• for companies that have voluntary types of insurance or reinsurance, with the exception 
of life insurance: KGS 30 million;  
• for companies that have both voluntary and compulsory insurance or rei nsurance 
activities, including life insurance: KGS 150 million;  
• for companies engaged only in reinsurance: KGS 300 million;  
• for companies engaged only in reinsurance and operating in a free economic zone: 
KGS 100 million; and  
• for insurance or reinsurance brokers: KGS 1 million.84 
4.4.1.4   Capital markets  
The Kyrgyz Republic's first stock exchange was founded in 1994 and since that time other 
securities markets have been established that have subsequently either been dissolved or 
consolidated, and thus t he Kyrgyz Stock Exchange (KSE) is the only stock exchange at this time. 
The exchange remains small, with 18 broker/dealer companies as at October 2020. Trading volumes 
and transactions fluctuated during the review period, with the most recent trading volum e reaching 
KGS 6.98 billion in 2019 (Box 4. 5).85 Furthermore, the portfolios of securities of Kyrgyz banks 
remain small, and thus the capital markets sector remains underdeveloped. As part of its policy 
discussions with the IMF in the context of its Articl e IV consultation process in 2019, it was agreed 
that the Kyrgyz Republic should promote a deepening of the financial sector by, inter alia , developing 
its domestic securities market.86 To develop the capital markets and create a mechanism for their 
inflow  into the real sector of the economy, the Program for the Privatization of State Property in the 
Kyrgyz Republic for 2020 -2022 was approved; this document provides for an initial public offering 
with the sale of up to 10% of the shares of an additional iss ue of five state -owned companies on the 
stock market.    
Box 4.5 Overview of capital markets, 2019 -20 
• Securities market transactions: KGS 6.07 billion (2019)  
• Trading volume: KGS 6.98 billion (30 September 2020)  
• Corporate security transactions: 2,707  
• Corporate bond volume: KGS 250.5 million  
Source:  Information provided by the authorities; and KSE, Trade Archive . Viewed at: 
https://www.kse.kg/en/TradeArchive . 
The securities sector is still governed by the 2009 Law on the Securities Market, which was 
amended several times during the review period.87 These changes involved the te rms of issue that 
apply to bonds and securities, the state's registration of securities, the procedure for liquidation of 
 
84 Ministry of Justice, Government Resolution No.  292 of 1  June 2016 about Approval of the Minimum 
Size of the Authorized Capital for Insurance (Reinsurance) Organizations and Insurance (Reinsurance) Bro kers. 
Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/98475 .  
85 Information provided by the authorities.  
86 IMF (2019), Kyrgyz Republic: 2019 Article  IV Consultation -Press Release and Staff Report . IMF 
Country Report No.  19/208. Viewed at: https://www.imf.org/en/Publications/CR/Issues/2019/ 07/02/Kyrgyz -
Republic -2019-Article -IV-Consultation -Press -Release -and-Staff-Report -47085 . 
87 Ministry of Justice, Law No.  251 of 24 July 2009 on the Securities Market. Viewed at: 
http://cbd.minj ust.gov.kg/act/view/ky -kg/202677 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 134 - 
 
  seized securities, and consequential changes to implement the Law on Measures to Combat the 
Financing of Terrorism and Legalization (L aundering) and the Law on Investment Funds.  
In 2017, a Government Resolution was issued that allows for the creation and circulation of 
Islamic securities.88 It amends earlier legislation from 2009 on  Islamic insurance products to include 
five specific typ es of Islamic financial products, such as equity shares and leasing instruments.  
There are no restrictions on the purchase of securities by foreigners. As at 2017, purchases 
of securities by foreigners amounted to KGS 2.37 billion. The majority of foreign purchases was from 
CIS countries (92%).89 In addition, foreign issuers of securities may participate in the Kyrgyz 
security market if they comply with a number of conditions, i.e. have a relationship with a 
broker/dealer and an entity with depository funct ion, and meet the listing requirements.  
The State Service for Regulation and Supervision of the Financial Market under the Ministry 
of Economy and Finance of the Kyrgyz Republic  is also the regulator for the capital markets. It 
conducts inspections and administers administrative penalties in case of infraction. In 2017, there 
were 177 violations; the two major categories of violations were with respect to disclosure of 
information (29%) and audit (26%).90 The Service also licenses securit y market activities. In 2018 -
19, it issued 108 licences for a variety of activities but mostly for dealers and brokers (Table 4. 9). 
Table 4.9 Entities engaged in the securities market, by activity, 2018  and 20 19 
(Number)  
Source:  Information provided by the authorities.  
The KSE also has a commodity sector for the promotion of commodity circulation.91 Its 
structure and operation are set out in the 1992 Law on Commodity Exchange and Exchange Trade 
in the Kyrgyz Republic, which was amended in 2020 to change the types of transactions allowed on 
the exchange, the types of commodities permitted, and the org anizational structure and legal form.92 
The commodity sector is at a development stage, and companies are gradually being accredited.  
The exchange has a partnership with the Uzbek Republican Commodity and Raw Materials Exchange 
JSC and the St. Petersburg I nternational Commodity and Raw Materials Exchange, in order to 
increase its offerings. The volume of this trade turnover with Uzbekistan was USD 325 million in 
2018.93  
 
88 Government Resolution No.  323 of 1  June 2017 on Approval of the Regulation on the Issue, 
Circulation and Redemption of Islamic Securities, Issued on Islamic Principles of Financing. Viewed at: 
http://cbd.minjust.gov.kg/act/view/ky -kg/100023 .  
89 State Service for Regulation and Supervision of Financial Markets, Report about the Activities of the 
Public Service Regulation and Supervisio n of the Financial Market under the Government of the Kyrgyz Republic 
(Gosfinnadzor) for 2017 . Viewed at: https://fsa.gov.kg/docs/file/actreport/3763 --__2017.pdf .  
90 State Service for Regulation and Supervision of Financial Markets, Report about the Activities of the 
Public Service Regulation and Supervision of the Financial Market under the Government of the Kyrgyz Republic 
(Gosfinnadzor) for 2017 .  
91 KSE, Commodity -Raw Material Sector . Viewed at: http://ts.kse.kg/index . 
92 Ministry of Justice, Law No.  915-XII of 29 June 1992 on Commodity Exchange and Exchange Trade in 
the Kyrgyz Republic. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/809 ; and Law No.  22 of 29 February 
2020 about Modification of the Law of the Kyrgyz Republic about Commodity Exchanges and Exchange Trade in 
the Kyrgyz Repu blic. Viewed at: http://cbd.minjust.gov.kg/act/view/ky -kg/112020?cl=ky -kg.  
93 KSE, "Trade Turnover between Kyrgyzstan and Uzbekistan Rose to USD  325 Million", 
8 December  2018. Viewed at: http://ts.kse.kg/news/item/765 . Name  2018  2019  
Organizers of trading on the securities market  2 2 
Depository activity  3 1 
Broker activity  35 39 
Dealer activity  37 35 
Maintaining a register of securities owners  16 19 
Trust management of investment assets  11 9 
Investment fund  4 3 
Total  108 108 WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 135 - 
 
  4.4.2   Telecommunication services  
4.4.2.1   Recent market and policy developments  
The telecommunication s market shows an increasing level of competition in nearly all 
segments. According to the ITU, based on data for 2013, there was full competition in virtually all 
telecommunications services.94 The authorities indicate that as at June 2020 there were 
303 operators owning 492 licences.  
In fixed line services, the two largest operators (Kyrgyz Telecom and JSC Saimatelecom) 
account for 96.6% of the market.95 State -owned Kyrgyz Telecom OJSC owns about 70% of this 
market, serving around 95% of fixed telephone s ubscribers.96 In the mobile communications market, 
the three largest operators are Nur Telecom LLC (O!  TM), CJSC Alfa Telekom (Megacom TM), and 
SkyMobile LLC (Beeline TM), which together account for 99.9% of the market.97 Revenue generated 
by the mobile communication services market fell in recent years as a result of price declines due to 
fierce competition.98 Kyrgyz Telecom OJSC, Aknet LLC, and Mega Line LLC are the three largest 
Internet service providers, accounting fo r 86.6% of the market.  
The fixed line telephone penetration rate (the number of fixed telephone lines per 
100 inhabitants) is one of the lowest in the region, which reflects the difficulty posed by the country's 
geographic conditions for the deployment of  fixed infrastructure.99 The number of fixed telephone 
line subscriptions declined significantly during the review period, mainly due to the growing 
popularity of mobile phones (Table 4. 10).100 While the penetration rate for mobile communications 
is somewhat below the CIS average,  it is higher than the corresponding rate in Azerbaijan, Tajikistan, 
Uzbekistan, and the world average.101 The level of Internet penetration remains rather low but 
increased in recent years (Table 4. 10). The Internet is primarily accessed through mobile pho nes.  
Table 4.10 Telecommunications indicators, 2012 -18 
 
2012  2013  2014  2015  2016  2017  2018  
Fixed telephone 
subscriptions  488,853  461,277  443,184  408,037  382,149  362,288  331,140  
Fixed telephone 
subscriptions per 
100 inhabitants  8.7 8.0 7.6 6.8 6.3 5.9 5.3 
Mobile -cellular 
subscriptions  6,797,850  6,737,490  7,563,440  7,579,440  7,613,530  7,369,930  7,726,860  
Mobile -cellular 
subscriptions per 
100 inhabitants  120.9  117.6  129.4  127.2  125.3  119.1  122.6  
Fixed -broadband 
subscriptions  54,614  136,200  170,706  211,521  240,873  258,013  240,192  
Fixed -broadband 
subscriptions per 
100 inhabitants  1.0 2.4 2.9 3.5 4.0 4.2 3.8 
 
94 ITU, Kyrgyzstan Profile (2018) . Viewed at: https://www.itu.int/itu -
d/apis/clients/res/pdf/country_profile/report_KGZ.pdf . 
95 Information provided by the authorities.  
96 ITU, Measuring the Information Society Report 2018 , Vol. 2, p.  95. Viewed at: 
https://www.itu.int/en/ITU -D/Statistics/Pages/ publications/misr2018.aspx . 
97 Kyrgyztelecom does not provide mobile communication services.  
98 According to data provided by the authorities, the income from mobile communications services was 
17,792 KGS in 2013 and 12,587 KGS in 2018.  
99 A significant disp arity exists between urban and rural areas in the number of fixed telephone lines. 
ADB, Kyrgyz Republic: Improving Growth Potential , September 2019, p.  148. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . 
100 A recent study observes that "[m]obile phone se rvices have been important in Central Asia. The 
development of mobile phone technology, coinciding with the independent history of the Central Asian 
countries, provided the countries' citizens and businesspeople with a valuable means of leapfrogging one 
aspect of their low -quality inherited infrastructure, i.e. the poor fixed -line telephone system". Pomfret, R. 
(2019), The Central Asian Economies in the Twenty -First Century: Paving a New Silk Road , Princeton University 
Press, p.  257.  
101 ADB, Kyrgyz Republic : Improving Growth Potential , September 2019, pp.  17-18. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 136 - 
 
   
2012  2013  2014  2015  2016  2017  2018  
Mobile broadband 
subscriptions per 
100 inhabitants  18.6 23.4 25.7 29.7 44.0 72.0 94.0 
3G mobile coverage 
(% of the 
population)  n.a. n.a. 57.0 59.0 60.0 75.0 88.0 
Share of population 
using Internet (%)  19.8 23.0 28.3 30.2 37.0 38.0 38.0 
Households with a 
computer (%)  14.0 16.0 17.6 19.5 21.4 23.3 23.3 
Households with 
Internet access at 
home (%)  7.2 11.9 13.8 16.5 18.8 21.1 21.1 
n.a. Not applicable.  
Source:  ITU Statistics.  
According to a recent Economic and Social Commission for Asia and the Pacific (ESCAP) study, 
the main market trends include the growth of Internet services, a reduction of traditional television 
and broadcasting, a significant increase in demand for fixed international and long -distance services, 
growth in the volume of cellular services, widespread use of instant messengers gradually replac ing 
traditional voice traffic, and fierce competition between telecoms operators, which resulted in a price 
war. The same study observes that major problems are the low coverage of the population, 
especially in rural areas, the lack of digital readiness an d limited development of broadband access, 
high Internet access prices relative to the quality of the access and income of the population, and 
the lack of qualified personnel in the fields of telecommunications and cybersecurity.102 
The Kyrgyz Republic's recent policies recognize the importance of information and 
communication technology (ICT) to the country's development prospects.103 The National Strategy 
for Sustainable Development 2013 -2017 sets out ICT targets with respect to e -government, t he 
transition to digital broadcasting, and universal Internet access. The National Development Strategy 
2018-2040 defines national digital transformation as one of its objectives. In this regard, the Digital 
Transformation Concept "Digital Kyrgyzstan" 2019 -2023 aims to: (i) create new opportunities for 
the population through the development of digital skills; (ii) provide high -quality digital services; 
increase the efficiency, effectiveness, openness, transparency, and accountability of public 
administratio n; and reduce corruption and increase the level of citizen involvement in state and 
municipal decision -making processes; and (iii) ensure economic growth through the digital 
transformation of priority sectors of the economy, the strengthening international  partnerships, and 
the creation of new economic clusters. Three priority tasks for the medium term are: (i) the digital 
transformation of business processes and production chains, especially in priority sectors; (ii) the 
development of digital strategies i n cooperation with partner countries, notably in the context of the 
EAEU 2025 Digital Agenda and the Digital Silk Road programme; and (iii) the development of digital 
technologies and the reduction of barriers to their development in order to create new ec onomic 
clusters.104  
 
102 ESCAP, In-depth National Study on ICT Infrastructure Co -deployment with Road Transport and 
Electricity Infrastructure in Kyrgyzstan , 2019, p.  15. Viewed at: 
https://www.unescap.org/sites/default/files/In%20depth%20national%20study%20 on%20ICT%20infrastructu
re%20co -
deployment%20with%20road%20transport%20and%20electricity%20infrastructure%20in%20Kyrgyzstan%2C
%20ESCAP.pdf . 
103 It has been observed that ICT can address barriers posed by the Kyrgyz Republic's geographic 
remoteness and its hig h transport costs and that realizing its plans with respect to sectors such as hydropower 
and tourism will require more sophisticated communication and information processing. ADB, Kyrgyz Republic: 
Improving Growth Potential , September 2019, p.  145. Viewed  at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . For a 
comprehensive assessme nt of the Kyrgyz Republic's digital development, see National Institute for Strategic 
Studies of the Kyrgyz Republic, State Committee on Information Technologies and Communications, and World 
Bank, Digital Development Assessment – Kyrgyzstan , 2017. Viewed at: 
http://www.ict.gov.kg/uploads/ckfinder/files/KG_Digital%20Development%20Assessment_Final.pdf . 
104 State Committee of Information Technologies and  Communications of the Kyrgyz Republic (SCITC), 
Digital Transformation Concept "Digital Kyrgyzstan" 2019 -2023, Ch. 3. The Government adopted a Roadmap 
for the implementation of the Digital Transformation Concept by Order No.  20 of 15  February 2019.  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 137 - 
 
  
The World Bank's Digital CASA -Kyrgyz Republic Project , approved in March 2018, aims to 
increase access to more affordable Internet, crowd in private investment in the ICT sector, and 
improve the Government's capacity to deliver digital government services in the Kyrgyz Republic, 
by contributing to the develo pment of a regionally integrated digital infrastructure and enabling 
environment. The Project has four components: Regional Digital Connectivity Infrastructure; 
Regional Data Centers, Digital Platforms, and Smart Solutions; Enabling Environment for Digital  
Economy; and Project Management.  
4.4.2.2   Legal and institutional framework  
The primary law regulating electronic communications is the Law on Electric and Postal 
Communication, originally adopted in 1998.105 It establishes the legal basis for the operation of 
communication networks and the provision of electric and postal services and determines the 
competencies of state executive bodies authorized to regulate such services, the mode of obtaining 
the necessary permits for their provision, and the rights and obliga tions of legal entities and 
individuals operating electric and postal networks and providing such services. The Law was 
amended several times during the review period.106  
The Law on Electric and Postal Communication sets outs a number of key principles, in cluding 
the provision of services on the basis of competition, private enterprise, and commercial 
independence; the separation of the functions of the State in developing policies in the field of 
electric and postal communications and regulating the activi ties of postal enterprises and operators 
and providers of telecommunications services from the functions of operating networks and providing 
electric and postal communication services; comprehensive support for the provision of high -quality 
traditional and  innovative electric and postal communication services; creating favourable conditions 
for attracting foreign investment; and equal access of all legal entities and individuals to public 
telecommunications networks and services and postal services (Article  1).  
The Law on Electric and Postal Communication provides for the establishment of the 
authorized state body for transport and communications, the state commission on radio frequencies, 
and the state communication authority. The latter body is the regula tory authority.107 It has the 
power, inter alia , to: (i)  issue numbering resources to telecommunications operators; (ii)  issue 
licences in accordance with the Law on the Licensing and Permit System; (iii) issue certificates of 
conformity for communication e quipment and services; (iv) issue frequency assignments; (v)  take 
measures to prevent anti -competitive practices in the communication industry (in cooperation with 
the state body responsible for competition policy); (vi)  regulate prices and quality of serv ices of 
electric and postal communication services; and (vii) with the consent of the state body in charge of 
competition policy, approve tariffs for electric and postal services of monopoly enterprises (Article  8).  
The Kyrgyz Republic operates an individ ual licensing scheme rather than a general 
authorization regime. The activities of legal entities and individuals in the field of communications 
are carried out on the basis of licences issued in accordance with the Law on the Licensing and 
Permit System108 and the Law on Electric and Postal Communications. The activities subject to 
licensing in the field of communications are telecommunications (except for operators and services 
of domestic or closed telecommunications networks), postal services, data trans mission, and use of 
the radio frequency spectrum.  
Specifically with respect to telecommunications, the following types of services are subject to 
licensing: telegraph communication; local telephone communication; international communication; 
long-distance  communication; telematic services (i.e.  telecommunications services intended for the 
 
105 Law No. 31 of 2 April 1998, as amended.  
106 Laws No.  75 of 22 May 2013, No.  129 of 11 July 2013, No.  20 of 15 January 2015, No.  51 of 
6 March  2015, No.  30 of 20 February 2017, No.  68 of 28 April 2017, No.  75 of 4 May 2017, No.  68 of 
17 May 2019, and No.  107 of 30 July 2019.  
107 As discussed below, the "state communication authority" provided for in the Law on Electric  and 
Postal Communication is now the State Communication Agency under the State Committee on Information 
Technologies and Communications established  in 2016.  
108 Law No.  195 of 19 October 2013, as amended by Laws No.  179 of 31 December 2014, No.  74 of 
8 April 2015, No.  91 of 30 April 2015, No.  109 of 21 May 2015, No.  122 of 28 May 2015, No.  91 of 
28 June 2016, No.  75 of 4 May 2017, No.  79 of 10 May 2017 , No. 84 of 23 May 2017, No.  167 of 
2 August  2017, No.  29 of 14 March 2018, No.  51 of 24 April 2019, No.  89 of 18  July 2019, No.  150 of 
31 December 2019, and No.  29 of 23 March 2020.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 138 - 
 
  transmission of information through telecommunications networks, except for telephone 
communications, telegraph communications, and data transmission); mobile radioteleph one 
communication (i.e. reception and transmission of messages carried out by means of mobile 
radiotelephone communication); and distribution of television and radio programmes (i.e. the 
distribution of an electrical broadcast signal in telecommunications networks). The Law on Electric 
and Postal Communication outlines the procedures and criteria for the issuance of licences for the 
use of the radio frequency spectrum109 and for frequency assignments for the right to operate 
electronic equipment, and for the  issuance of licences in the field of electric and postal 
communications (Articles  10 and 11).110 Licences for activities in the field of electric and postal 
communications must contain requirements regarding obligations of the licensee, e.g. with respect 
to the development or expansion of the network or the scope of the service and the provision of 
services to all users on a non -discriminatory basis. The requirement to invest at least KGS  20 million 
in telecommunications as a condition to obtain a licence t o provide certain services111 was eliminated.  
Foreign legal entities and individuals can obtain licences for activities in the field of 
communication services, and participate in privatization processes in this sector, on the same 
conditions and in the sam e manner as legal entities and individuals of the Kyrgyz Republic. Under 
the GATS, the Kyrgyz Republic made commitments on market access and national treatment with 
respect to telecommunications services that contain no limitations, except as far as the mo vement 
of natural persons is concerned. It has also accepted the Reference Paper on the regulatory 
framework for basic telecommunications services.112 The liberalization commitments made by the 
Kyrgyz Republic in telecommunications services under the EAEU T reaty are similar to its 
commitments under the GATS.113 
The Law on Electric and Postal Communication designates Kyrgyz Telecom OJSC as a national 
telecommunications operator and provider of public telecommunications services and defines 
additional obligatio ns and rights that Kyrgyz Telecom's licence must contain. Among these are the 
obligation to: (i)  provide public telecommunications services to any person in any part of the Kyrgyz 
Republic where it is technically or economically possible and to justify the  refusal or inability to 
provide services; (ii)  develop a public telecommunications network; and (iii)  manage national 
long-distance and international telecommunications services. The licence must also establish a 
procedure for regulating prices for the us e of networks and services provided by Kyrgyz Telecom on 
an exclusive basis (Article  13). More generally, the Law provides that the authorized state body, 
with the consent of the authorized state body for antimonopoly policy, has the right to regulate 
prices of telecommunications and postal services in certain circumstances, such as when there is 
only one telecommunications or postal service operator that owns or exercises control over the 
telecommunications or postal network or one telecommunications servi ce provider or one postal 
service company providing services (Article  17).  
Public telecommunications services are treated as natural monopolies in the Kyrgyz Republic's 
legislation on natural monopolies114 and have been subject to EAEU Treaty rules on natu ral 
monopolies since February 2017.115  
The EAEU Treaty provides for specific rules on telecommunications services in a supplement 
to its Protocol on Services and Investment. The rules deal with matters such as : (i) the obligation 
to ensure that information  on the terms of access to public telecommunications networks is publicly 
available; (ii)  non-discriminatory access to networks and services; (iii)  universal service obligations; 
(iv) independence of regulatory authorities; (v) the right of member States t o regulate tariffs; and 
(vi) the obligation to provide unimpeded traffic transmission.  
 
109 As amended in May 2017, the Law requires licences for the use of the frequency spectrum to be 
allocated through public auctions if certain conditions are met.  
110 More detailed licensing rules are defined in the Regulation on Licensing Activities for Use of  Radio 
Frequency Spectrum, approved by Government Resolution No.  754 of 17 November 2017 and in the Regulation 
on Licensing of Activities in the Field of Electric and Postal Communications, approved by Government 
Resolution No.  746 of 31 December 2019.  
111 WTO document WT/TPR/S/288/Rev.1, 21 January 2014, para.  4.67.  
112 WTO document GATS/SC/125, 22 April 1999.  
113 WTO document WT/REG366/1, 29 August 2018, Table 4.1 and para.  4.26.  
114 Law No.  149 of 8 August 2011, as amended.  
115 WTO document WT/REG366/1, 29 Au gust 2018, para.  4.12. WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 139 - 
 
  
 In addition to the Law on Electric and Postal Communication and EAEU Treaty rules, other 
laws relevant to telecommunications services are the Law on Electronic Governan ce116, the Law on 
Electronic Signature117, and the Law on Personal Information.118 There is also a body of secondary 
legislation. During the review period, the Regulation on Licensing Activities for Use of Radio 
Frequency Spectrum119 and the Regulation on Lice nsing Activities in the Field of Electric and Postal 
Communication120 entered into force. The national radio frequency allocation table between the radio 
services of the Kyrgyz Republic was also approved121, and the national system and numbering plan 
for telecommunications networks of the Kyrgyz Republic was adopted.  
An important change in the institutional framework for policy development and regulation in 
the areas of telecommunications and ICT was the cr eation, in 2016, of a new body, the State 
Committee of Information Technologies and Communications of the Kyrgyz Republic (SCITC).122 The 
SCITC was created to provide a more coordinated and focused approach to ICT policies and 
regulation by combining severa l authorities previously located in other agencies. Thus, it 
incorporates the State Communication Agency (SCA) and the Center for Electronic Governance. The 
SCITC is a state executive body that implements state policy and carries out intersectoral 
coordina tion in the field of informatization, electronic governance, electronic government, electronic 
services, and electric and postal communications, including radio and television broadcasting.123 Its 
purpose is to create favourable conditions for (i) the const ruction of a modern, high -tech competitive 
data transmission network for the development of informatization; (ii) electronic governance; 
(iii) the market for services in the field of communications ; and (iv) integration into the global 
information space. T he SCITC's four main functions are industry development, regulation, 
coordination and control, and support. The SCITC is also the executive body of the Council on 
Electronic Governance and Development of ICT under the Government.  
While the SCITC is responsible for the implementation of the overall state policy in this area, 
the SCA under the SCITC is the telecommunications regulatory authority.124 Its regulatory functions 
are to125:  
• monitor  the conditions  and volume  of use of networ ks and public  services  of 
telecommunications  operators;  
• create,  develop,  and operate  a state system  of radio monitoring;   
• carry out the allocation  of denominations  and bands  of radio frequencies  in accordance  
with the National  Table  of the Distribution  of Radio  Frequencies;  
• create,  develop,  and operate  the state system  of identification  of mobile  communication  
devices;  
• change,  modify,  and redistribute  channels,  denominations,  and radio frequency  bands  
previously  allocated  to users;   
• carry out licensing  in accordance  with legislation  in the field of the licensing  system,  and 
maintain  the appropriate  registers  of licences  and permits  issued;  
• issue expert  opinions  on the import  and export  of goods;  
 
116 Law No.  127 of 19 July 2017.  
117 Law No.  128 of 19 July 2017.  
118 Law No.  58 of 14 April 2008.  
119 Resolution No.  754 of 17 November 2017.  
120 Resolution No.  746 of 31 December 2019.  
121 Resolution No.  146 of 20 March 2018.  
122 The SCITC was created by Resolution No.  373 of 4 July 2016, as part of the implementation of 
Jogorku Kenesh Resolution No.  439-VI of 13 April 2016 on the Structure of the Government of the Kyrgyz 
Republic.  
123 Appendi x 1 to Decree No.  402 of 15 July 2016 contains the Regulations on the Objective, Functions, 
and Powers of the SCITC.  
124 The State Agency for Communications is one of eight organizations subordinate to the SCITC.  
125 Decree No.  402 of 15 July 2016, Appendix  3. WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 140 - 
 
  • create  and maintain  a database  of frequency  assignments;  
• genera te and maintain  a register  of certificates  of conformity  for equipment  and technical  
means  of communication;  
• conduct  analysis  on the issue of preventing  cross-subsidization  between  different  
categories  and groups  of consumers,  and develop  proposals  for its termination  in the 
communications  industry;  and  
• support  free competition  between  all electric  and postal  communication  operators,  
telecommunications  services,  and postal  service  enterprises.126 
The SCA is responsible  for the implementation  of the Regulati on on Licensing  Activities  in 
the Field of Electric  and Postal  Activities  approved  by Decree  No. 746 of 31 December  2019 and the 
Regulation  on Licensing  Activities  for Use of Radio  Frequency  Spectrum  adopted  by Resolution  
No. 754 of 17 November  2017.   
4.4.3   Transport services  
4.4.3.1   Transport infrastructure challenges and policy  
The Kyrgyz Republic faces high transport costs. In 2014, it was among the 10 countries with 
the highest export delivery costs, in terms of USD per container127, due to the country's unique 
geogr aphic conditions as a double -landlocked, mountainous country128, a transport infrastructure 
originally constructed mainly to provide long -distance connectivity within the former Soviet Union, 
and the inadequate development of its transport infrastructure in  recent decades, mainly because 
of insufficient financial resources. Thus, enhancing the Kyrgyz Republic's transit and trade potential 
requires improvements to both domestic and international connectivity.129  
Road transport is the most important mode of transport for both passengers and freight 
(Table  4.11).  
Table 4.11 Freight and passengers by types of transport, 2012 -19 
 
2012  2013  2014  2015  2016  2017  2018  2019  
Total freight (million 
tonnes) of which:  39.8 41.0 28.9 29.7 31.2 32.0 33.0 34.2 
Rail 1.1 1.4 1.5 1.3 1.7 1.9 2.3 2.2 
Motor  38.4 39.4 27.2 28.2 29.3 29.8 30.5 31.7 
Pipeline  0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 
Water  0.0 0.0 0.0 0.0 0.0 - - - 
Air 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Total passengers 
(million persons) of 
which:  603.2  619.0  638.7  653.1  682.2  710.0  731.6  756.6  
Rail 0.5 0.4 0.3 0.3 0.3 0.3 0.3 0.4 
Motor vehicles  601.8  617.6  637.1  651.6  680.9  708.2  729.9  755.1  
Buses  563.8  579.5  596.1  604.1  627.3  649.7  664.4  682.4  
Trolleybuses  19.5 19.0 20.1 23.3 25.9 29.3 33.1 36.3 
 
126 Other functions of the SCA relate to coordination, supervision, and control; service; and support.  
127 Eurasian Development Bank (EDB), Microeconomics of the Eurasian Geography , Special Report, 
August 2017, pp. 49 -50. Viewed at: https://eabr.org/en/analytics/special -reports/microeconomics -of-the-
eurasian -geography/ . A UNECE report notes that "in Central Asia, including Kyrgyzstan, transport costs for 
export -import products amounts to 25%, while in countries situated close to maritime transport this share is 
about 10%". UNECE, Logistics and Transport Competitiveness in Kyrgyzstan , 2019, p.  6. Viewed at: 
https://unece.org/DAM/trans/main/wp24/Logistics_and_Transport_Competitiveness_in_Kyrgyzstan_2019.pdf . 
128 It has been observed that "Kyrgyzstan and Tajikistan share the third and fourth places a mong the 
world's land -locked countries located at the highest average elevations above sea level". EDB, Economic 
Geography of Eurasian Countries,  Special Report, January 2017, p. 47. Viewed at: 
https://eabr.org/en/analytics/special -reports/economic -geography -of-eurasian -countries/ . 
129 See generally, ADB, Kyrgyz Republic: Improving Growth Potential , 2019, pp.  171-195. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 141 - 
 
   
2012  2013  2014  2015  2016  2017  2018  2019  
Cars (taxies)  18.5 19.1 20.9 24.2 27.7 29.2 32.4 36.4 
Air 0.8 1.1 1.2 1.2 1.1 1.5 1.4 1.1 
-  Nil or rounded to zero.  
Source:  National Statistical Committee. Viewed at: http://www.stat.kg/en/opendata/category/1975 ; and  
http://www.stat.kg/en/opendata/category/23 0. 
The National Sustainable Development Strategy for the Period 2013 -2017 prioritized the 
development of several strategic industries, including transport. The Strategy notes that while the 
volume of cargo and passenger traffic was expected to increase at a rate of up to 10% per year, 
limited financial resources available for the maintenance, operation, and development of transport 
infrastructure resulted in a significant degradation of the quality of that infrastructure. To improve 
the transpor t and transit potential in order to enhance the population's access to markets for goods 
and services, the Strategy defined the following objectives: (i) the rehabilitation of five motorways 
that are used as international transport corridors; (ii) the pres ervation and improvement of the 
country's network of domestic hard -surface roads; (iii) the ensuring of transport independence; 
(iv) the completion of feasibility studies and commencement of the construction of the 
Sino-Kyrgyz -Uzbek Trunk Railroad and a ra ilway branch connecting the north and the south of the 
country; and (v) the creation of an air transport hub.130 Similar objectives appear in the Development 
Program of the Kyrgyz Republic for the Period  2018-2022131 and in the National Development 
Strategy of the Kyrgyz Republic for 2018 -2040.132 The latter document provides that the objective 
to be achieved by 2040 is to transform the country into a transit country for goods, passengers, and 
cargo.133  
The development of transport infrastructure takes place i n the context of broader regional 
developments related to Euro -Asian transport routes. Most of the Kyrgyz Republic's infrastructure 
projects are undertaken in the context of the six multimodal transport corridors of the Central Asia 
Regional Economic Coope ration (CAREC) Program.134 These corridors aim to link the key economic 
hubs in Central Asia to each other and to connect the landlocked CAREC countries to other Eurasian 
and global markets.135 The Kyrgyz Republic also participates in the 
Transport  Corridor  Europe -Caucasus -Asia (TRACECA) programme, which aims to develop transport 
relations in the regions of the Black Sea basin, the Caucasus, and Central Asia.  
The Ministry of Transport and Roads (known as the Ministry of Transport and 
Communications until a name change in 2016) is responsible for transport policy. The State Road 
and Water Transport Agency was transformed in 2017 into the Road and Water Transport  and Weight 
and Dimension Control Agency at the Ministry of Transport and Roads. The Civil Aviation Agency, 
also part of the Ministry of Transport and Roads, is responsible for the regulation of the civil aviation 
sector. The agency in charge of the rail s ector is the state enterprise Kyrgyz Temir Zholu.  
An important factor in the development of the transport policy during the review period was 
the Kyrgyz Republic's accession to the EAEU. The EAEU Treaty aims to create a common EAEU 
 
130 National Sust ainable Development Strategy for the Kyrgyz Republic for the Period 2013 -2017, 
pp. 98-99. Viewed at: https://www.un -
page.org/files/public/kyrgyz_natio nal_sustainable_development_strategy.pdf . 
131 Development Program of the Kyrgyz Republic for the Period 2018 -2022, p.  29. Viewed at: 
https://www.un -
page.org/files/public/the_development_program_of_the_kyrgyz_republic_for_the_period_2018 -2022.pdf . 
132 National Development Strategy of the Kyrgyz Republic for 2018 -2040, November 2018, pp.  38-40. 
Viewed at: 
https://policy.thinkbluedata.com/sites/default/files/National%20Development%20Strategy%20of%20the%20K
yrgyz%20Republic%20 for%202018 -2040%20%28EN%29.pdf . 
133 A Transport Master Plan was adopted in 2012, followed by several sector -specific plans: the Railway 
Development Programme 2014 -2020; the Aviation Development Programme 2015 -2020; and the Road Sector 
Development Strategy up  to 2025.  
134 Ministry of Transport and Roads, CAREC Corridors: Implementation Progress and Priority Actions 
2020-2030, 2019. Viewed at: https://www.carecprogram.org/uploads/8E_KGZ_EN_re v.pdf. 
135 The six corridors are: Corridor 1: Europe -East Asia; Corridor 2: Europe -Mediterranean -East Asia; 
Corridor 3: Russian Federation -Middle East and South Asia; Corridor 4: Russian Federation -East Asia; 
Corridor  5: East Asia -Middle East and South Asia;  and Corridor 6: Europe -Middle East and South Asia. There 
are also designated Rail Corridors. CAREC, CAREC Corridors . Viewed at: 
https://www.carecprogram.org/?page_id=20 .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 142 - 
 
  transport area by 2025.136 To this end, two Action Plans were adopted in 2017, which cover the 
period 2018 -2020 and the implementation of which will create a basis for the removal of all existing 
restrictions on transport services by 2025.137 For most transport services and service s auxiliary to 
transport, the liberalization commitments undertaken by the Kyrgyz Republic as part of its accession 
to the EAEU went beyond its GATS liberalization commitments.138  
4.4.3.2   Road transport services  
The road transport industry was privatized during th e second half of the 1990s, and there 
are no state companies currently involved in the provision of cargo and non -urban passenger 
transport.139 In major cities, municipal and private transport companies operate in parallel based on 
agreements concluded with  the municipalities.  
The main domestic legal acts regulating the provision of road transport services are: Law 
No. 89 of 8 July 1998 on Transport, as amended; Law No.  154 of 19 July 2013 on Road Transport, 
as amended; and Law No.  12 of 3 March 1997 on the  Licensing and Permit System, as amended. 
Other relevant legislation includes Law No.  72 of 2 June 1998 on Roads, as amended; Law No.  52 
of 20 April 1998 on Road Traffic, as amended;  and the Law on Safety of Wheeled Vehicles, as well 
as several implementin g decrees.140 In addition, the Government approved an Action Plan for the 
application of EAEU technical regulations on the safety of wheeled vehicles.  
The Law on Transport and the Law on Road Transport define the general conditions for the 
carriage of good s, passengers, and luggage by trucks, buses, cars, motor vehicles, trailers, and 
semi-trailers, as well as general conditions for providing services to passengers, charterers, 
consignors, consignees, and carriers. The laws apply to all individuals, legal e ntities, and commercial 
activities in the field of road transport, without discrimination based on nationality.141  
The Law on the Licensing and Permit System distinguishes between licences and permits. 
Licences are required for international freight transp ort by road and for all passenger transport 
services. The criteria and procedures to obtain such licences have not changed since the previous 
Review.142 Licences are issued without a tender, in accordance with the licensing requirements 
provided for in the Law. Carriers wishing to obtain a licence must be incorporated and pay taxes in 
the Kyrgyz Republic. Licences are valid for three  years for international freight transport and one 
year for passenger transport.143 In addition to licensing, the provision of i nternational road transport 
services is also subject to a requirement to obtain a permit before a journey is undertaken. Upon 
the Kyrgyz Republic's accession to the EAEU, carriers from EAEU member States were no longer 
required to obtain a permit.144 
In gen eral, foreign trucks and buses are not allowed to transport cargo or passengers 
between two domestic destinations in the Kyrgyz Republic (cabotage). Legislative amendments are 
pending before the Parliament that would relax this prohibition in relation to E AEU member States, 
 
136 EAEU Treaty, Section XXI and Annex 24, Protocol on the Coordinated Transport Policy of the Member 
States.  
137 WTO document WT/REG358/1, 13 July 2018, paras.  4.120 -4.123.  
138 WTO document WT/REG366/1, 29 August 2018, Table 4.1 and para.  4.35.  
139 WTO document WT/TPR/S/288/Rev.1, 21 Jan uary 2014, para.  4.73. 
140 For example, Decree No.  519 of 23 September 2013 on Rules for the Organization of Passenger 
Transport by Road and Decree No.  311 of 21 May 2015 on Rules for the Organization of Freight Transport by 
Road.  
141 UNECE, Logistics and Tra nsport Competitiveness in Kyrgyzstan , 2019, p.  104. Viewed at: 
https://unece.org/DAM/trans/main/wp24/Logistics_and_Transport_Competitiveness_in_Kyrgyzstan_2019.pdf . 
142 Decree No.  430 of 31 May 2001.  
143 WTO document WT/TPR/S/288/Rev.1, 21 January 2014, para.  4.74. 
144 Annex 24 to the EAEU Treaty requires that internationa l carriage of goods by road performed by 
carriers registered in the territory of a member State be carried out on a permit -free basis: (i) between the 
member State of registration of such carriers and another member State; (ii) in transit through the terri tory of 
other member States; and (iii) between other member States. At the time of the previous Review, transport 
from the Kyrgyz Republic to Kazakhstan, the Russian Federation, and Tajikistan was already exempted from 
this permit requirement. WTO document  WT/TPR/S/288/Rev.1, 21 January 2014, para.  4.74. WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 143 - 
 
  in accordance with a programme of gradual liberalization of road cabotage adopted by the EAEU in 
2015.145  
Except in respect of EAEU member States, the Road and Water Transport and Weight and 
Dimension Control Agency issues transit permit s to foreign freight vehicles entering Kyrgyz territory, 
based on bilateral agreements. E ntry without a permit results in a USD  250 fee.  Foreign carriers are 
required to register with the Agency within three days of entry into the Kyrgyz Republic; there ar e 
no limits on transit time.  
Tariffs, fees, and charges on public road transport services are regulated by Article  11 of the 
Law on Road Transport as follows: (i ) tariffs, fees, and charges associated with the carriage of 
passengers, goods, and mail carried out by dominant market entities are established in accordance 
with the Law on Natural Monopolies; (ii) tariffs for passenger transportation on public road vehi cles 
are set by local authorities in the framework of the tariff policy for road transportation; (iii) tariffs, 
fees, and charges for motor vehicles that are not regulated in accordance with Part 1 of Article  11 
are established on a contractual basis; (iv)  tariffs, fees, and charges for road transport in 
international traffic are set in accordance with international treaties and agreements to which the 
Kyrgyz Republic is a party.  
In addition to domestic legislation and EAEU rules, the international transpo rt of goods is 
covered by other international agreements to which the Kyrgyz Republic is a party.  
Regarding international road transport, the Kyrgyz Republic currently has 19 bilateral 
agreements: (i) 17 intergovernmental agreements on international road traffic and road transport 
with Armenia, Belarus, China, Georgia, Germany, the Islamic Republic of Iran, Kazakhstan, Latvia, 
the Republic of Moldova, Mongolia, Pakistan, Poland, the Russian Federation, Turkey, Turkmenistan, 
Ukraine, and Uzbekistan; and (ii ) 2 intergovernmental agreements with Azerbaijan on the basic 
principles of relations in the transport field and with Tajikistan on the development and improvement 
of international road traffic. Finally, two interdepartmental agreements were concluded with  France 
and Austria.146  
Regional and multilateral road transport agreements to which the Kyrgyz Republic is a party 
include: (i)  Economic Co -operation Organization Transit Transport Framework Agreement147; 
(ii) Basic Multilateral Agreement on International Transport for Development of the Europe – the 
Caucasus -Asia Corridor148; (iii)  Agreement on Weights and Dimensions of Vehicles Undertaking 
International Transport on Roads of the CIS Member States149; (iv) Agreement on Co -operation of 
the CIS Member States in the Field of International Road Freight Transport150; (v) Agreement on 
Introduction of the International Vehicle Weight Certificate in the CIS Member States151; 
(vi) Agreement on Building a Common Transport Space and Co -operation on Transport Polic y among 
the Members of the CIS152; (vii)  Agreement on Traffic in Transit153; (viii)  Agreement on International 
Road Transportation154; (ix) Agreement on Establishing the System of International Road Transport 
Permit155; and (x)  Agreement on Principles of Co -operation and Conditions of Relations in the Area 
of Transport.156  
 
145 The programme provided for in Annex 24 to the EAEU Treaty envisaged the gradual liberalization of 
cabotage in four stages from 2016 -25. See WTO document WT/REG358/1, 13 July 2018, p.  76, Table 4.4 for a 
description of the different stages of this programme.  
146 Information provided by the authorities.  
147 Afghanistan, Azerbaijan, the Islamic Republic of Iran, Kazakhstan, Kyrgyz Republic, Pakistan, 
Tajikistan, and Turkey.  
148 Armenia, Azerbaijan, Bulgaria, Georgia, the Islamic Republic of Iran, Kazakhstan, Kyrgyz Republic, 
the Republic of Moldova, Romania, Tajikistan, Turkey, and Uzbekistan.  
149 Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Russian Federation, Taji kistan, and 
Uzbekistan.  
150 Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Russian Federation, Tajikistan, and 
Uzbekistan.  
151 Armenia, Georgia, Kazakhstan, Kyrgyz Republic, Russian Federation, Tajikistan, and Uzbekistan.  
152 Armenia, Azerbaijan, K azakhstan, Kyrgyz Republic, Russian Federation, Tajikistan, and Uzbekistan.  
153 China, Kazakhstan, Kyrgyz Republic, and Pakistan.  
154 China, Kyrgyz Republic, and Uzbekistan.  
155 China, Kyrgyz Republic, and Uzbekistan.  
156 Kazakhstan, Kyrgyz Republic, Tajikista n, Turkmenistan, and Uzbekistan.  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 144 - 
 
  
The Kyrgyz Republic is also a party to 11 UN Transport Conventions and Agreements: 
(i) Agreement on the International Carriage of Perishable Foodstuffs and on the Special Equipment 
to be used  for such Carriage of 1 September 1970; (ii)  Customs Convention on Containers of 
2 December 1972; (iii)  Convention on Road Traffic of 8 November 1968; (iv)  Convention on Road 
Signs and Signals of 8  November 1968; (v)  Convention on the Contract for the Inte rnational Carriage 
of Goods by Road of 19  May 1956; (vi)  Protocol to the Convention on the Contract for the 
International Carriage of Goods by Road of 5 July 1978; (vii)  Customs Convention on the 
International Transport of Goods under Cover of TIR Carnets of 14 November 1975; (viii)  Customs 
Convention on the Temporary Importation of Commercial Road Vehicles of 18 May 1956; 
(ix) International Convention on the Harmonization of Frontier Controls of Goods of 21 October 
1982; (x)  Protocol on Road Signs and Sign als of 19 September 1949; and (xi)  Convention on Road 
Traffic of 19 September 1949 (1994).157  
A recent study argues that harmonization of legislation is one of the most important 
conditions for the development of the transport infrastructure of the Kyrgyz Republic and of the CIS 
more generally. 158 In this regard, the study points out that the Kyrgyz Republic is not a party to 
many UN Inland Transport Conventions and Legal Agreements, including all the infrastructure 
agreements, the vehicle regulation Conven tions, and many of the road traffic and road safety 
Conventions. Another study observes that the road transport sector is "loosely regulated" and that 
entry is not subject to any consideration of professional qualifications.159 The gap in regulation 
compare d with most other countries gave unlicensed domestic operators an unfair competitive 
advantage over international operators and hindered the development of higher -quality services in 
the domestic market. The study recommends the progressive implementation of a licensing system 
for domestic trucks, increased enforcement, especially regarding weight regulations, and the 
development and implementation of training programmes.  
4.4.3.3   Rail transport services  
 Kyrgyz railroads are essentially spokes of a Soviet -era rail  network providing connections 
to hubs in neighbouring Kazakhstan and Uzbekistan, with limited and fragmented national coverage. 
Instead of an integrated network, there are two unconnected sets of lines, a northern line of 
323.4  km and a southern line of 1 01.2 km. The northern line provides access to the railway network 
of Kazakhstan, while the southern line ensures access to the railway network of Uzbekistan.160 
Transit through the Kyrgyz Republic is impossible under the current railroad configuration; 
connections between certain Kyrgyz cities involve transit through neighbouring countries. Thus, the 
railway sector provides a stark illustration of the country's problem of inadequate domestic and 
international connectivity. As stated in a 2019 study, "[f]ragm ented and dead -end railways do not 
support intracountry trade and limit international trade development".161 Upgrading the railway 
network and building a north -south railway corridor and a China -Kyrgyzstan -Uzbekistan railway are 
seen as priorities for the m edium and long terms.162  
 
157 UNECE, Number of UN Transport Conventions and Agreements per Country . 
158 UNECE, Logistics and Transport Competitiveness in Kyrgyzstan , 2019, pp. 107 -108. Viewed at: 
https://unece.org/DAM/trans/main/wp24/Logistics_and_Transport_Competitiveness_in_Kyrgyzstan_2019.pdf . 
The Report prepared for the previous Review observes that the Kyrgyz Republic was not a party  to the 
European Agreement concerning the Work of Crews of Vehicles Engaged in International Road Transport 
(AETR) and had not established AETR -compliant requirements for the use of digital tachographs in freight 
vehicles. Accordingly, some 95% of the 1,80 0-strong Kyrgyz cargo fleet involved in international transport 
were ill equipped to circulate in the 32 countries that had implemented the AETR digital tachograph system 
since July  2010. Tajikistan was the Kyrgyz Republic's only neighbour that had not ado pted AETR -compliant 
requirements. WTO document WT/TPR/S/288/Rev.1, 21 January 2014, para.  4.76.  
159 International Transport Forum, Enhancing Connectivity and Freight in Central Asia,  2019, 
pp. 137-138. Viewed at: https://www.itf -oecd.org/sites/default/files/docs/connectivity -freight -central -
asia_2.pdf . 
160 ADB, Kyrgyz Republic: Improving Growth Potential , 2019, p.  178. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf ; and UNECE, 
Logistics and Transport Competitiveness in Kyrgyzstan,  2019, p.  56. Viewed at: 
https://unece.org/DAM/trans/main/wp24/Logistics_and_Transport_Competitiveness_in_Kyrgyzstan_2019.pdf . 
161 ADB, Kyrgyz Republic: Improving Growth Potential , 2019, p.  178. Viewed at: 
https://www.adb.org/sites/default/files/publication/648501/kyrgyz -republic -growth -potential.pdf . 
162 National Development Strategy of the Kyrgyz Republic for 2018 -2040, November 2018, pp.  38-39. 
Viewed at: 
https://policy.thinkbluedata.com/sites/default/files/National%20Development%20Strategy%20of%20the%20KWT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 145 - 
 
  
Railways are mainly used for the transport of goods; passenger traffic by rail takes place 
only in the north of the country near Bishkek. The share of rail in the transport of goods remains 
small but has increased somewhat in recen t years.163  
The Ministry of Transport and Roads is the authority responsible for policy and regulation in 
the field of rail transport, based on the Law No. 121 of 18 July 2016 on Railway Transport. The 
railways are operated by the state enterprise Kyrgyz Temir Zholu ( KTHz), which retains a statutory 
monopoly over all rail services and infrastructure. KTHz performs both passenger and cargo 
transport. As a natural monopoly, KTHz is subject to price regulation by the State Agency for 
Antimonopoly Regulation. KTHz does not  receive any allocations from the state budget.164  
The EAEU Treaty stipulates the following objectives in the field of rail transport165: 
(i) establishing a common market; (ii) ensuring that consumers of member States have access to 
rail transport services in the territory of each member State on terms no less favourable than for 
consumers of that member State; (iii) maintaining the balance between the economic interests of 
consumers of rail services and the interests of rail transport organizations of the m ember States; 
(iv) enabling access of rail transport organizations of one member State to the domestic market of 
rail transport services of another member State; and (v) enabling access of carriers to infrastructure 
services of member States.166,167 
4.4.3.4   Air tran sport services  
There are currently 22 airlines registered in the Kyrgyz Republic, 6 of which have a valid 
operator certificate and 3 of which (Aviatraffic, Tez Jet, and Air Manas) carry out regular passenger 
traffic. International and domestic passenger tr affic is operated by Aviatraffic and Air Manas, while 
Tez Jet operates only domestic flights. All of these airlines are privately owned. The remaining 
airlines operate in the field of aviation special operations and transportation of official delegations o f 
the Kyrgyz Republic. Regarding the national flag carrier, state -owned OJSC Air Kyrgyzstan, which 
suspended its activities, the Government in November 2019 approved an Order of the State Property 
Management Fund to increase the company's authorized capita l. This increase in capital is intended 
to enable it to acquire modern aircraft and thus to contribute to the development of domestic and 
international air transportation. All domestic airline companies registered in the Kyrgyz Republic 
appear on the Europ ean Union's blacklist.168 There are 32 international airlines operating in the 
Kyrgyz Republic.169  
The Kyrgyz Republic has 11 airports, all of which are operated by JSC International Airport 
of Manas (IAM), in which 80% of the equity is owned by the State. Development of airport 
infrastructure during the past decade took place only at a few airports and did not reflected the 
overall growth in passenger air travel.170 IAM's recent change in business strategy is geared towards 
creating a major air transport hub  in Central Asia, in accordance with the Government's civil aviation 
development programme.  
 
yrgyz%20Republic%20for%202018 -2040%20%28EN%29.pdf ; EBRD, Kyrgyz Republic Diagnostic , 2019, p. 17; 
and UNECE,  Logistics and Transport Competitiveness in Kyrgyzstan,  2019, p.  56. Viewed at: 
https://unece.org/DAM/trans/main/wp24/Logistics_and_Transpo rt_Competitiveness_in_Kyrgyzstan_2019.pdf . 
163 From 2010 to 2017, the share of rail in the total volume of freight traffic increased from 2.7% to 6%.  
164 Regarding KTHz's financial position, the Report prepared for the previous Review points out that 
"[t]he p assenger and domestic cargo segments remain lossmaking and continue to rely on cross -subsidies 
from international freight services" and that "[t]he railway company's financial situation is further complicated 
by considerable external debt". WTO document WT /TPR/S/288/Rev.1, 21 January 2014, para.  4.80. 
165 EAEU Treaty, Annex 24, para.  18. 
166 Regarding this last item, the Treaty sets forth a procedure for Regulating Access to Rail Transport 
Services, including Tariff Policy Framework.  
167 The liberalization commitments of the Kyrgyz Republic in the field of rail transport services under its 
EAEU Accession Treaty go beyond its GATS commitments. WTO document WT/REG366/1, 29 August 2018, 
Table  4.1. 
168 In 2018, Air Manas became the first airlin e from the Kyrgyz Republic to receive an IATA Operational 
Safety Audit.  
169 UNECE, Logistics and Transport Competitiveness in Kyrgyzstan , 2019, p.  87. Viewed at: 
https://unece.org/DAM/trans/main/wp24/Logistics_and_Transport_Competitiveness_in_Kyrgyzstan_2019.pdf . 
170 UNECE, Logistics and Transport Competitiveness in Kyrgyzstan , 2019, p.  83. Viewed at: 
https://unece.org/DAM/trans/main/wp24/Logistics_and_Transport_Competitiveness_in_Kyrgyzstan_2019.pdf . WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 146 - 
 
  
As at June 2020, the Kyrgyz Republic had 31 bilateral air service agreements (Table 4.12). 
Regular flights are carried out between the Kyrgyz Republic and the Russ ian Federation, Kazakhstan, 
Uzbekistan, Tajikistan, Turkey, China, Mongolia, India, Kuwait, and the United Arab Emirates.171 All 
international flights are handled by the international airports Manas, Osh, and Issyk -Kul.172 
Table 4.12 Air service agreements  
 Date of conclusion  Date of ratification  
Ukraine  23/02/1993  22/09/1999  
Iran, Islamic Republic 
of 22/06/1993  22/09/1999  
India 08/09/1993  22/09/1999  
Pakistan  14/10/1993  22/09/1999  
Mongolia  04/12/1993  12/07/2002  
Turkmenistan  24/12/1993  22/09/1999  
Kazakhstan  18/02/1994  22/09/1999  
Turkey  14/10/1994  22/09/1999  
Russian Federation  28/03/1996  22/09/1999  
United Kingdom  08/12/1994  22/09/1999  
Indonesia  18/07/1995  22/09/1999  
China  04/07/1996  22/09/1999  
Uzbekistan  04/09/1996  22/09/1999  
Georgia  22/04/1997  22/09/1999  
Germany  13/05/1997  22/09/1999  
Austria  17/03/1998  22/09/1999  
Hong Kong, China 
(transit)  15/07/1999  15/01/2003  
Belarus  02/02/2000  28/07/2008  
Thailand  02/07/2001  15/01/2003  
Malaysia  17/11/2000  15/01/2003  
Armenia  04/04/2002  25/07/2008  
Switzerland  25/10/2002  01/08/2003  
Greece  01/11/2004  13/02/2006  
Czech Republic  29/04/2004  02/03/2006  
Tajikistan  26/05/2004  05/04/2008  
Korea, Republic of  11/07/2006  30/07/2007  
European Union  01/07/2007  05/04/2008  
Saudi Arabia, Kingdom 
of 02/12/2014  20/07/2015  
United Arab Emirates  07/12/2014  20/07/2015  
Kuwait  13/12/2015  26/07/2016  
Qatar  21/01/2018  17/12/2018  
Source:  Information provided by the authorities.  
The Civil Aviation Agency under the Ministry of Transport and Roads is responsible for the 
management of civil aviation. The relevant legislation regulating the civil aviation sector is the Air 
Code of the Kyrgyz Re public173, which was amended in 2019 to provide for the unilateral adoption 
of an open skies policy and introduction of the fifth degree of freedom.174 In February 2016, a large 
number of safety regulations were adopted that were designed to ensure consistency with the 
standards and recommended practices of the International Civil Aviation Organization (ICAO).  
 
171 Information provided by the authorities.  
172 During the summer tourist season, t he Issyk -Kul international airport serves flights from the Russian 
Federation, Uzbekistan, and Kazakhstan.  
173 Law No.  218 of 6 August 2015.  
174 Law No.  3 of 11 January 2019.  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 147 - 
 
  
Passenger and cargo air transport services and aircraft ground -handling services are subject 
to licensing under the Law on the Licensing and Permit System.  
In accordance with Article  138, Part 3, of the Air Code of the Kyrgyz Republic, the creation 
in the Kyrgyz Republic of an airline with the participation of foreign individuals and legal entities is 
allowed, provided that the share of participation of forei gn individuals or legal entities in the airline 
does not exceed 49% of the authorized capital of the airline. The GATS market access and national 
treatment commitments of the Kyrgyz Republic in respect of air transport services relate mainly to 
the mainten ance and repair of aircraft. The market access commitment regarding the supply of such 
maintenance and repair services was subject to a foreign ownership restriction, to be removed by 
2005. The authorities have confirmed in the context of this Review that this restriction was 
eliminated.  
The EAEU Treaty provides for coordination by member States to ensure a common approach 
to the application of ICAO standards and recommended practices and lays down certain principles 
for the gradual establishment of a comm on market of air transport services including harmonization 
of legislation, fair and honest competition, non -discriminator access of aviation companies of the 
member States to the aviation infrastructure, and expansion of air services between the member 
States.175,176  
4.4.4   Tourism   
The Kyrgyz Republic has unique potential for travel and leisure activities. More than 90% of 
its territory is situated at more than 1,000 metres above sea level, and it has some of the world's 
highest mountain peaks, interspersed with glaciers. The mountainous landscape offers a wide range 
of possibilities for hiking and skiing. Other popular attractions include Lake Issyk -Kul and ancient 
cities on the Silk Road. The successful organization of the World Nomad Games in 2014, 2016, and 
2018 drew favourable reviews in international media, further highlighting the potential for an 
increase in foreign visitors.  
Measures undertaken by the Government to facilitate tourism during the review period 
included liberalization of the regimes for visa s and air transport. A visa -free regime for stays up to 
60 days was introduced unilaterally for 52 countries in 2012. A simplified visa regime is available for 
residents of the Kingdom of Bahrain, Brunei Darussalam, Kuwait, Oman, Qatar, and the United Arab  
Emirates. For other countries, an online system to obtain business and tourist visas (up to 90 days) 
has been in place since 1  September  2017.177 Amendments to the Air Code entered into force on 
25 January  2019, reflecting the "open skies" policy of the Ky rgyz Republic. The revisions codify the 
acceptance of fifth freedom rights in respect of scheduled international air services.  
Statistics indicate a growing number of travellers to the Kyrgyz Republic (Table 4. 13). Most 
visitors originate from Kazakhstan (70%) or the Russian Federation (13%). The tourism sector 
employs approximately 40,000 people, which constitutes roughly 2% of formal employment. Gross 
value added in tourism amounted to more than KGS 27 billion, or 5% of GDP, in 2018.178  
Table 4.13 Selected tourism sector indicators, 2013 -18 
Measurement indicators  2013  2014  2015  2016  2017  2018  
Foreign citizens arriving under the 
classification of the World Tourism 
Organization (UNWTO)  
('000 pe rsons ) 4,133.6  3,790.8  4,000.5  3,853.4  4,567.4  6,946.5  
 
175 EAEU Treaty, Annex 24, paras.  10-14; and WTO document WT/REG358/1, 13 July 2018, para.  4.125.  
176 The liberalization commitments made by the Kyrgyz Republic with respect to air transport services as 
part of its accession to the EAEU are similar to its commi tments under the GATS. WTO document 
WT/REG366/1, 29 August 2018, Table 4.1, pp.  30-31.  
177 The system can be viewed at: www.evisa.e -gov.kg .  
178 National Statistical Committee of the Kyrgyz Republic. Viewed at: 
http://www.stat.kg/ru/news/turizm -v-2018-godu/ .  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 148 - 
 
  Measurement indicators  2013  2014  2015  2016  2017  2018  
Citizens arriving in the Kyrgyz Republic 
covered by the Law on Visa -Free Travel 
(persons ) 54,411  83,989  82,542  82,317  98,683  130,624  
Source:  State Border Service.  
According to official data, the tourism infrastructure consists of 486 recreation facilities and 
tourism organizations, including 187 specialized accommodation facilities; 185 hotels; 64 travel 
agencies and tour operators, and travel and excursion agencies; 9 nature parks ; and more than 
40 other tourist sites179 (Table 4 .14). Growth in tourism also has positive spill -over effects for the 
production of handicrafts and local food.  
Table 4.14 Tourism enterprises and organizations, recreation institutions by form of 
ownership, 2018  
 
Total  By ownership  
Public  Private  
Total  486 59 427 
Hotels & similar accommodation facilities  194 5 189 
Tourist centre  9 1 8 
Sanatoria  13 4 9 
Children's sanatorium  6 4 2 
Sanatorium -dispensaries  10 2 8 
Holiday home  7 2 5 
Boarding houses with treatment  96 10 86 
Holiday resorts  4 2 2 
Recreation centre  9 0 9 
Sports & recreation camps  8 4 4 
Children's health centres  25 12 13 
Travel agencies, tour operators, travel & sightseeing agencies  64 2 62 
Natural parks & reserves  9 9 0 
Other tourism businesses  32 2 30 
Source:  Data provided by the authorities.  
Although the tourism sector is expanding, it continues to face several challenges. Customer 
service standards remain weak and inconsistent, and the marketing and promotion of the Kyrgyz 
Republic as a tourist destination is underdeveloped. The infrastructure is slowly improving, but 
significant capital investment is needed to reverse two decades of degradation. However, the sources 
of finance and credit are limited, and foreign investment is subject to restrictions.180 The general 
infrastructure used for tourism, such as roads and roadside facilities, also needs to be improved. 
Evidence of ineffective nature conservation is widespread in some areas. The Kyrgyz Republic ranked 
110th of 140 countries in the World Economic Forum's Tourism and Travel Competitiveness Rating 
2019.  
The Centre for Standardization and Metrology at the Ministry of Economy oversees the 
classification of accommodation facilities. However, as the classification is voluntary, statistics are 
incomplete. The Ministry of Culture, Information and Tourism and the Na tional Statistical Committee 
thus took the initiative to establish a unified register of tourist attractions in 2019. Other recent 
initiatives to strengthen the sector included the creation of an Interdepartmental Commission for 
Coordination of Tourism Dev elopment Issues in 2016 and the establishment of the state -owned 
Kyrgyz Tourism under the Ministry of Culture, Information and Tourism in 2019.  
 
179 National Statistical Committee of the Kyrgyz Republic. Viewed at: 
http://www.stat.kg/ru/news/turizm -v-2018-godu/ .  
180 For example, Article  20, paragraph 2, of the Law on Sustainable Development of the Issyk -Kul 
Ecological and Economic System prohibits the transf er of recreational facilities and tourism infrastructure to 
foreigners.  WT/TPR/ S/411/Rev.1  • Kyrgyz Republic  
 
- 149 - 
 
  
At a broader level, the Kyrgyz Republic signed a Mutual Cooperation Programme for 
2018-19 with Kazakhstan, Tajik istan, Turkmenistan, and Uzbekistan outlining several joint 
initiatives, including in tourism. At the national level, a government programme has been established 
for the development of the tourism sector during 2019 -23. Sustainable tourism is also identifi ed as 
a priority area of development in the National Development Strategy for 2018 -2040. Moreover, the 
2018 Concept of a green economy emphasizes the promotion of sustainable forms of tourism as a 
way to protect biological diversity.  
 
 WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 150 - 
 
  APPENDIX TABLES  
Table A1.  1 Merchandise exports by HS section and main chapter, 2012 -19  
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  2019  
Total exports  1,683  1,773  1,819  1,441  1,423  1,757  1,835  1,986    
(% of total exports)  
1 - Live animals; animal products  2.0 1.7 12.4 1.7 1.9 2.8 2.5 3.2  
04. Dairy produce; birds' 
eggs; natural honey; edible 
products of animal origin  1.5 1.0 2.7 1.3 1.7 2.1 1.8 2.4 
 
02. Meat and edible meat 
offal 0.0 0.0 9.2 0.0 0.0 0.1 0.2 0.2 
2 - Vegetable products  8.8 9.4 9.3 5.1 6.2 6.7 5.2 6.8  
07. Edible vegetables and 
certain roots and tubers  5.3 6.2 7.1 3.9 4.4 4.3 3.4 4.5 
 
08. Edible fruit and nuts; 
peel of citrus fruit or melons  3.3 3.0 2.2 1.1 1.6 1.9 1.6 2.2 
3 - Animal or vegetable fats and oils; 
prepared edible fats  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
4 - Prepared foodstuffs; beverages, 
spirits and vinegar; tobacco  2.5 2.5 3.2 3.2 2.2 2.8 3.0 2.9 
 
24. Tobacco and 
manufactured tobacco 
substitutes  0.8 1.1 2.1 2.0 1.1 1.3 0.6 1.3 
 
19. Preparations of cereals, 
flour, starch or milk  0.3 0.3 0.3 0.4 0.4 0.6 0.8 0.8 
 
21. Miscellaneous edible 
preparations  0.5 0.3 0.4 0.3 0.3 0.4 0.3 0.3 
5 - Mineral products  14.9 11.7 10.4 7.1 8.9 13.7 15.9 15.9  
26. Ores, slag  and ash  3.3 1.0 2.3 1.4 4.8 8.2 6.8 8.2  
27. Mineral fuels, mineral 
oils and products of their 
distillation  10.5 9.4 7.1 5.2 3.4 5.0 7.6 6.0 
 
25. Salt; sulphur; earths and 
stone; plastering materials, 
lime and cement  1.1 1.2 1.0 0.5 0.6 0.5 1.6 1.7 
6 - Products of the chemical or allied 
industries  1.0 0.8 0.7 0.6 0.7 0.8 0.8 1.5 
 
33. Essential oils and 
resinoids; perfumery, 
cosmetic or toilet 
preparations  0.0 0.0 0.0 0.1 0.1 0.2 0.0 0.6 
 
31. Fertilisers  0.3 0.3 0.1 0.1 0.2 0.1 0.2 0.4 
7 - Plastics and articles thereof; 
rubber and articles thereof  1.6 3.0 2.2 1.9 1.1 1.3 1.8 1.8 
 
39. Plastics and articles 
thereof  0.9 1.5 1.1 1.2 0.9 0.9 1.7 1.7 
8 - Raw hides and skins, leather, 
furskins and articles thereof; travel 
goods, handbags; articles of animal 
gut 0.6 0.6 0.5 0.8 0.6 0.7 0.9 0.6 
 
42. Articles of leather; travel 
goods, handbags; articles of 
animal gut  0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.3 
9 - Wood and articles of wood; wood 
charcoal; cork and articles of cork  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 
10 - Pulp of wood or of other fibrous 
cellulosic material; paper and 
paperboard and articles thereof  0.6 0.5 0.4 0.3 0.3 0.3 0.3 0.3 
11 - Textiles and textile articles  12.2 7.7 7.5 4.8 6.6 8.5 10.5 7.5  
61. Articles of apparel and 
clothing accessories, knitted 
or crocheted  2.4 1.3 1.5 0.7 2.4 5.6 7.7 3.8 
 
52. Cotton  2.1 1.2 1.3 1.1 1.4 1.5 2.0 1.9 WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 151 - 
 
  Description  2012  2013  2014  2015  2016  2017  2018  2019   
62. Articles of apparel and 
clothing accessories, not 
knitted or crocheted  6.8 4.6 4.0 2.1 2.5 1.1 0.5 1.3 
12 - Footwear, headgear, umbrellas; 
prepared feathers and articles; 
artificial flowers  0.2 0.3 0.4 1.6 0.6 1.8 1.3 0.8 
 
64. Footwear, gaiters  and 
the like; parts of such 
articles  0.2 0.2 0.4 1.6 0.6 1.7 1.2 0.8 
13 - Articles of stone, plaster, cement, 
etc.; ceramic products; glass and 
glassware  1.7 2.6 2.1 1.4 1.8 2.3 2.8 2.6 
 
70. Glass and glassware  1.1 1.8 1.5 1.0 1.2 1.7 1.7 1.5 
14 - Natural or cultured pearls, 
precious or semi -precious stones, 
precious metals  33.8 41.9 39.9 46.4 49.7 41.3 37.2 43.0 
 
7108. Non -monetary gold in 
inwrought form  33.4 41.5 39.4 46.2 49.3 39.9 36.2 41.9 
 
7112. Waste and scrap of 
gold 0.0 0.0 0.0 0.0 0.0 1.1 0.7 0.8 
 
7106. Unwrought silver  0.2 0.2 0.2 0.2 0.3 0.3 0.2 0.2 
15 - Base metals and articles of base 
metal  3.8 3.5 2.4 2.2 2.5 4.1 9.3 6.2 
 
74. Copper and articles 
thereof  0.6 0.5 0.5 0.6 0.7 1.5 6.1 3.2 
 
72. Iron and steel  1.9 2.0 1.1 0.6 1.1 1.4 1.9 1.4  
76. Aluminium and articles 
thereof  0.2 0.1 0.2 0.2 0.2 0.5 0.6 0.5 
16 - Machinery and mechanical 
appliances; electrical equipment; 
television image and sound recorders  4.2 4.4 4.0 5.2 3.8 4.2 3.3 2.1 
 
84. Nuclear reactors, boilers, 
machinery and mechanical 
appliances  2.5 2.5 2.1 2.8 2.2 2.9 2.0 1.3 
 
85. Electrical machinery and 
equipment; sound recorders 
and reproducers  1.8 1.9 1.8 2.5 1.6 1.3 1.2 0.8 
17 - Vehicles, aircraft, vessels  and 
associated transport equipment  8.3 5.6 4.2 7.8 7.0 7.9 4.4 3.3 
 
87. Vehicles other than 
railway or tramway rolling -
stock, parts and accessories  7.3 4.8 3.5 4.4 3.9 3.4 2.6 2.5 
 
88. Aircraft, spacecraft, and 
parts thereof  0.9 0.5 0.6 2.8 3.1 4.5 1.7 0.8 
18 - Optical, photographic, precision, 
medical or surgical instruments; 
clocks and watched; musical 
instruments  0.3 0.8 0.2 0.4 1.0 0.3 0.2 0.3 
19 - Arms and ammunitions  .. .. .. .. .. .. .. .. 
20 - Miscellaneous manufactured 
articles  0.3 0.4 0.3 0.2 0.2 0.3 0.2 0.5 
21 - Works of art, collectors' pieces 
and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Other  3.1 2.6 0.0 9.1 4.8 0.1 0.4 0.4 
.. Not available.  
Source:   WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 152 - 
 
  Table A1.  2 Merchandise imports by HS section and main chapter, 2012 -19  
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  2019  
Total  
5,373  5,983  5,681  4,068  3,844  4,487  5,292  4,989    
(% of total imports)  
1 - Live animals; animal products  1.9 1.9 2.2 1.6 0.8 2.3 0.9 1.2  
02. Meat and edible meat offal  1.4 1.4 1.6 1.2 0.5 0.8 0.6 0.8  
04. Dairy produce; birds' eggs; 
natural honey; edible products 
of animal origin  0.3 0.3 0.3 0.3 0.2 1.3 0.2 0.2 
2 - Vegetable products  3.4 3.5 3.4 3.4 2.6 3.4 3.0 4.1  
08. Edible fruit and nuts; peel 
of citrus fruit or melons  0.4 0.6 0.6 0.6 0.8 1.0 1.3 1.7 
 
10. Cereals  1.9 1.7 2.0 1.8 0.9 1.1 0.5 0.9  
11. Products of the milling 
industry; malt; starches; 
inulin; wheat gluten  0.7 0.9 0.4 0.5 0.3 0.5 0.4 0.5 
3 - Animal or vegetable fats and oils; 
prepared edible fats  1.4 1.4 1.4 1.6 1.3 1.3 1.0 1.1 
4 - Prepared foodstuffs; beverages, 
spirits and vinegar; tobacco  7.9 7.3 7.9 7.4 7.2 7.2 6.4 7.2 
 
24. Tobacco and manufactured 
tobacco substitutes  1.0 1.1 1.4 1.3 1.1 1.7 1.5 1.6 
 
19. Preparations of cereals, 
flour, starch or milk  1.1 1.1 1.2 1.1 1.3 1.2 1.0 1.2 
 
22. Beverages, spirits and 
vinegar  1.2 1.2 1.3 1.1 0.7 0.9 1.1 1.2 
 
21. Miscellaneous edible 
preparations  0.8 0.8 0.8 0.7 1.0 0.9 0.7 1.0 
5 - Mineral products  22.4 22.2 21.2 19.9 11.0 14.9 17.8 14.8  
27. Mineral fuels, mineral oils 
and products of their distillation  21.7 21.4 20.5 19.1 10.4 14.2 17.0 14.0 
6 - Products of the chemical or allied 
industries  8.4 8.3 8.9 8.9 8.9 9.0 8.4 9.5 
 
30. Pharmaceutical products  3.5 3.2 3.5 3.6 3.0 4.0 3.1 3.8  
38. Miscellaneous chemical 
products  0.6 0.6 0.7 0.6 0.7 0.7 0.8 1.2 
 
33. Essential oils and resinoids; 
perfumery, cosmetic or toilet 
preparations  0.9 0.9 1.0 1.0 2.2 1.2 1.1 1.1 
 
31. Fertilisers  1.1 1.0 1.2 1.0 0.5 0.7 0.7 1.0 
7 - Plastics and articles thereof; rubber 
and articles thereof  4.2 4.5 4.3 4.1 4.6 4.3 4.5 4.4 
 
39. Plastics and articles thereof  2.6 3.0 3.0 3.0 3.5 3.0 3.3 3.2  
40. Rubber and articles thereof  1.6 1.6 1.3 1.1 1.2 1.3 1.2 1.2 
8 - Raw hides and skins, leather, 
furskins and articles thereof; travel 
goods, handbags; articles of animal gut  0.3 0.2 0.2 0.4 1.0 1.0 1.2 0.7 
 
42. Articles of leather; travel 
goods, handbags; articles of 
animal gut  0.2 0.1 0.1 0.3 0.9 0.9 1.1 0.5 
9 - Wood and articles of wood; wood 
charcoal; cork and articles of cork  2.5 2.5 2.6 1.7 2.7 1.1 1.2 1.9 
 
44. Wood and articles of wood; 
wood charcoal  2.5 2.5 2.6 1.7 2.7 1.1 1.2 1.9 
10 - Pulp of wood or of other fibrous 
cellulosic material; paper and 
paperboard and articles thereof  1.5 1.6 1.8 2.1 1.7 2.0 1.9 2.2 
 
48. Paper and paperboard; 
articles of paper pulp, of paper 
or of paperboard  1.3 1.4 1.6 1.8 1.5 1.7 1.6 2.0 
11 - Textiles and textile articles  7.0 6.2 5.9 7.4 14.3 15.0 14.8 11.8  
55. Man-made staple fibres  1.2 1.0 1.1 2.0 4.0 4.3 3.4 3.1  
61. Articles of apparel and 
clothing accessories, knitted or 
crocheted  2.2 2.1 1.7 1.6 3.9 3.5 4.5 2.9 WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 153 - 
 
  Description  2012  2013  2014  2015  2016  2017  2018  2019   
60. Knitted or crocheted fabrics  0.0 0.0 0.1 0.2 0.6 0.5 1.2 1.4  
62. Articles of apparel and 
clothing accessories, not 
knitted or crocheted  2.1 1.7 1.5 1.6 2.7 2.1 2.5 1.4 
 
54. Man -made filaments  0.4 0.3 0.3 0.6 1.4 2.6 1.6 1.1 
12 - Footwear, headgear, umbrellas; 
prepared feathers and articles; artificial 
flowers  1.6 1.3 1.0 2.2 6.8 6.8 7.3 5.4 
 
64. Footwear, gaiters and the 
like; parts of such articles  1.5 1.2 0.9 2.1 6.7 6.7 7.0 5.1 
13 - Articles of stone, plaster, cement, 
etc.; ceramic products; glass and 
glassware  1.7 1.8 2.0 1.9 2.1 2.6 1.5 1.9 
 
69. Ceramic products  0.9 1.0 1.1 0.9 1.1 1.7 0.8 0.9 
14 - Natural or cultured pearls, precious 
or semi -precious stones, precious 
metals  0.4 0.5 0.6 0.6 0.1 0.1 0.2 0.2 
15 - Base metals and articles of base 
metal  7.7 9.2 8.2 11.7 7.4 7.4 8.2 9.4 
 
72. Iron and steel 3.2 3.7 4.0 7.3 3.5 3.3 3.6 3.8  
73. Articles of iron or steel  2.9 3.9 2.9 3.0 2.5 2.3 1.9 2.6  
83. Miscellaneous articles of 
base metal  0.3 0.2 0.3 0.4 0.5 1.0 1.9 1.6 
16 - Machinery and mechanical 
appliances; electrical equipment; 
television image and sound recorders  11.9 11.6 10.4 13.0 15.7 14.2 14.8 17.4 
 
84. Nuclear reactors, boilers, 
machinery and mechanical 
appliances  7.0 6.8 6.6 8.8 10.3 8.4 9.0 10.0 
 
85. Electrical machinery and 
equipment; sound recorders 
and reproducers  4.9 4.8 3.8 4.2 5.4 5.7 5.8 7.4 
17 - Vehicles, aircraft, vessels and 
associated transport equipment  13.3 13.4 15.9 6.3 5.6 4.4 4.2 4.2 
 
87. Vehicles other than railway 
or tramway rolling -stock, parts 
and accessories  12.6 12.3 14.2 5.1 3.2 3.4 3.2 3.4 
 
88. Aircraft, spacecraft, and 
parts thereof  0.6 0.7 1.0 1.0 2.2 0.8 0.8 0.5 
18 - Optical, photographic, precision, 
medical or surgical instruments; clocks 
and watched; musical instruments  0.8 0.9 1.0 1.4 1.6 1.1 1.0 1.1 
 
90. Optical, photographic, 
cinematographic, measuring, 
precision, medical or surgical 
instruments and apparatus  0.8 0.8 1.0 1.4 1.5 1.1 1.0 1.1 
19 - Arms and ammunitions  .. .. .. .. .. .. .. .. 
20 - Miscellaneous manufactured 
articles  1.1 1.1 1.2 1.4 1.4 1.6 1.5 1.6 
 
96. Miscellaneous 
manufactured articles  0.1 0.2 0.2 0.2 0.3 0.4 0.5 0.7 
 
94. Furniture; bedding, 
mattresses, mattress supports, 
cushions and similar stuffed 
furnishings  0.8 0.7 0.9 0.8 0.8 0.9 0.7 0.6 
21 - Works of art, collectors' pieces and 
antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Others  0.6 0.3 0.0 2.8 3.2 0.2 0.1 0.1 
.. Not available.  
Source:   WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 154 - 
 
  Table A1.  3 Merchandise exports by trading partner, 2012 -19  
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  2019  
Total exports  1,683  1,773  1,819  1,441  1,423  1,757  1,835  1,986   
(% of total exports)  
Americas  1.1 0.9 0.9 1.5 0.1 0.2 0.1 0.3 
  United States  0.2 0.3 0.1 0.1 0.0 0.1 0.1 0.1 
  Other America  1.0 0.7 0.7 1.4 0.0 0.1 0.0 0.1 
          Canada  0.1 0.0 0.1 0.0 0.0 0.1 0.0 0.1 
Europe  39.1 37.9 39.9 48.9 57.5 49.8 47.6 49.7 
  EU-28 3.2 3.7 3.1 3.5 5.1 14.0 41.4 44.6 
          United Kingdom  0.1 0.0 0.0 0.1 2.2 10.9 36.5 42.0 
          Lithuania  0.1 0.2 0.3 0.3 0.5 0.9 2.5 0.9 
          Germany  1.0 0.6 0.5 0.5 0.4 0.2 0.3 0.4 
          Belgium  0.8 1.0 1.3 1.5 0.8 1.2 0.8 0.3 
          Bulgaria  0.5 0.5 0.3 0.4 0.3 0.2 0.4 0.3 
  EFTA 32.6 28.9 31.6 39.0 45.5 27.8 0.0 0.2 
          Switzerland  32.6 28.9 31.6 39.0 45.5 27.8 0.0 0.2 
  Other Europe  3.3 5.3 5.1 6.5 6.8 8.0 6.2 5.0 
          Turkey  3.0 4.8 4.7 5.8 6.3 7.5 5.7 4.5 
Commonwealth of Independent States (CIS)  52.5 44.0 46.1 37.3 32.1 41.0 46.8 43.4 
          Kazakhstan  24.1 21.6 25.2 15.8 10.6 15.1 14.7 17.5 
          Russian Federation  13.0 8.6 6.3 10.9 10.2 15.1 19.4 14.2 
          Uzbekistan  11.3 9.0 9.0 6.6 8.8 8.3 8.6 7.0 
          Tajikistan  2.4 2.8 4.1 1.7 1.5 1.4 2.6 2.9 
          Ukraine  0.3 0.6 0.3 0.6 0.2 0.2 0.4 0.7 
          Belarus  0.7 0.7 0.4 0.9 0.1 0.4 0.7 0.7 
          Azerbaijan  0.3 0.2 0.2 0.3 0.0 0.1 0.1 0.2 
Africa  0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 
Middle East  1.8 13.3 9.4 8.4 3.5 2.8 1.3 1.8 
          Iran, Islamic Republic of  0.6 0.4 0.4 0.3 0.6 0.7 0.8 0.8 
          United Arab Emirates  1.0 12.5 7.8 6.9 2.6 1.7 0.4 0.5 
          Iraq 0.2 0.3 1.0 1.1 0.2 0.1 0.1 0.2 
Asia 5.4 3.6 3.6 3.8 6.8 6.1 4.1 4.7 
  China  3.6 2.2 1.8 2.5 5.6 5.5 3.3 4.1 
  Japan  0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.0 
  Other Asia  1.7 1.3 1.7 1.2 1.1 0.5 0.8 0.6 
          India 0.0 0.0 0.0 0.1 0.2 0.1 0.3 0.2 
          Mongolia  0.1 0.2 0.2 0.2 0.2 0.1 0.1 0.1 
          Afghanistan  1.5 0.7 1.3 0.6 0.6 0.1 0.1 0.1 
Other  0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 
Source:   WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 155 - 
 
  Table A1.  4 Merchandise imports by trading partner, 2012 -19  
(USD million and %)  
Description  2012  2013  2014  2015  2016  2017  2018  2019  
Total imports  5,373  5,983  5,681  4,068  3,844  4,487  5,292  4,989   
(% of total imports)  
Americas  5.7 4.4 4.7 3.5 4.8 3.8 2.9 2.2 
  United States  4.7 3.7 4.1 3.0 4.0 3.5 2.4 1.8 
  Other America  1.0 0.7 0.6 0.5 0.8 0.3 0.5 0.4 
          Ecuador  0.1 0.2 0.1 0.1 0.0 0.0 0.1 0.1 
          Canada  0.5 0.3 0.2 0.3 0.3 0.1 0.2 0.1 
          Mexico  0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Europe  14.0 14.4 15.4 12.6 12.1 12.5 11.8 11.4 
  EU-28 10.3 10.6 10.9 7.9 6.4 6.6 5.9 6.3 
          Germany  3.7 3.9 4.1 2.3 1.6 1.5 1.4 1.4 
          France  0.6 0.6 0.7 0.6 0.6 0.6 0.5 0.8 
          Lithuania  0.2 0.3 0.4 0.4 0.2 0.6 0.7 0.6 
          Poland  0.7 0.6 0.6 0.6 0.4 0.5 0.4 0.5 
          Italy 0.4 0.4 0.6 0.6 0.7 0.6 0.5 0.5 
  EFTA 0.3 0.4 0.4 0.5 0.4 0.5 0.3 0.2 
          Switzerland  0.3 0.3 0.3 0.5 0.3 0.4 0.3 0.1 
  Other Europe  3.3 3.5 4.1 4.3 5.3 5.4 5.6 4.9 
          Turkey  3.3 3.4 4.0 4.0 5.0 5.0 5.5 4.5 
Commonwealth of Independent States (CIS)  50.0 49.2 48.1 53.6 41.7 46.5 45.2 47.6 
          Russian Federation  33.2 33.2 32.4 31.3 20.8 27.5 28.5 28.1 
          Kazakhstan  9.7 9.3 9.4 16.7 16.5 11.6 11.4 13.0 
          Uzbekistan  1.2 1.6 1.9 1.5 1.8 3.6 3.4 4.0 
          Ukraine  2.6 2.6 2.0 2.2 1.0 0.9 0.6 1.0 
          Belarus  3.0 1.9 1.6 1.3 0.9 2.4 0.9 0.9 
          Tajikistan  0.1 0.1 0.1 0.2 0.2 0.3 0.2 0.2 
          Georgia  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
          Turkmenistan  0.0 0.0 0.0 0.1 0.1 0.0 0.0 0.1 
          Azerbaijan  0.1 0.2 0.4 0.1 0.2 0.0 0.1 0.0 
Africa  0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.4 
          South Africa  0.0 0.0 0.0 0.0 0.0 0.0 0.1 0.3 
          Egypt  0.2 0.2 0.2 0.1 0.1 0.2 0.1 0.1 
Middle East  0.4 0.4 0.4 0.4 0.4 0.5 0.5 0.8 
          Iran, Islamic Republic of  0.2 0.2 0.2 0.1 0.2 0.2 0.3 0.4 
          United Arab Emirates  0.1 0.1 0.1 0.1 0.1 0.2 0.1 0.3 
Asia 29.7 31.3 31.2 29.7 40.9 36.5 39.5 37.6 
  China  22.5 23.9 21.1 25.3 38.1 33.3 36.7 34.8 
  Japan  4.0 4.3 6.4 1.5 0.5 0.8 0.9 0.5 
  Other Asia  3.1 3.1 3.7 2.9 2.3 2.5 1.9 2.3 
          India 0.6 0.4 0.4 0.6 0.6 0.6 0.6 0.8 
          Korea, Republic of  1.7 1.9 2.3 1.3 0.7 1.0 0.5 0.7 
          Viet Nam  0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
          Pakistan  0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 
          Malaysia  0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 
Other  0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
Source:   WTO Secretariat calculations, based on UN Comtrade database.  
  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 156 - 
 
  Table A2.  1 Notifications to the WTO, 1 July 2013 -29 April 2020  
Legal provision  Measure(s) notified  WTO document and date  
Agreement on Agriculture  
Art. 12.1(b) -Table ER:1  Export prohibitions or restrictions  G/AG/N/KGZ/8, 31/03/2020  
Art. 18.2-Table DS:1  Domestic support  G/AG/N/KGZ/7, 05/08/2019  
G/AG/N/KGZ/6, 05/08/2019  
G/AG/N/KGZ/5, 25/05/2018  
G/AG/N/KGZ/4, 12/09/2017  
Agreement on Trade in Services, 
Art. V:7 Regional trade agreement  S/C/N/889, 05/05/2017  
S/C/N/823, 02/09/2015  
Agree ment on Implementation of Article  VI of the GATT 1994  
Art. 16.4  Anti-dumping actions – ad hoc   G/ADP/N/340, 24/04/2020  
G/ADP/N/338, 27/02/2020  
G/ADP/N/334, 15/11/2019  
G/ADP/N/333, 31/10/2019  
G/ADP/N/330, 05/08/2019  
G/ADP/N/329, 28/06/2019  
G/ADP/N/327, 29/05/2019  
G/ADP/N/320, 29/11/2018  
G/ADP/N/317, 21/08/2018  
G/ADP/N/315, 29/06/2018  
G/ADP/N/313, 30/05/2018  
G/ADP/N/312, 12/04/2018  
G/ADP/N/311, 26/03/2018  
G/ADP/N/310, 22/02/2018  
G/ADP/N/309, 24/01/2018  
G/ADP/N/302, 18/07/2017  
G/ADP/N/299, 31/ 05/2017  
G/ADP/N/293, 13/12/2016  
G/ADP/N/289, 24/08/2016  
G/ADP/N/288, 28/07/2016  
G/ADP/N/281, 21/01/2016  
Art. 16.4  Anti-dumping actions – semi-annual reports  G/ADP/N/382/KGZ, 16/09/2019  
G/ADP/N/322/KGZ, 12/04/2019  
G/ADP/N/314/KGZ, 04/10/2018  
G/ADP/N/308/KGZ, 28/03/2018  
G/ADP/N/300/KGZ, 09/10/2017  
G/ADP/N/294/KGZ, 13/03/2017  
G/ADP/N/280/KGZ, 03/10/2016  
G/ADP/N/286/KGZ, 03/10/2016  
Art. 18.5 Anti-dumping legislation  G/ADP/N/1/KGZ/3, 17/10/2016  
G/ADP/N/1/KGZ/2, 27/01/2016  
Agreement on Implementation of 
Article  VII of the GATT 1994, Art. 22 Customs valuation legislation  G/VAL/N/1/KGZ/2, 24/09/2019  
Article  XVII:4(a) of the GATT 1994 
and Understanding  State trading enterprises  G/STR/N/5 -15/KGZ, 
29/06/2015  
Article  XXIV of the  GATT  1994  Regional trade agreement  WT/REG385/N/1, 05/05/2017  
WT/REG366/N/1, 02/09/2015  
WT/REG343/N/2, 18/03/2015  
WT/REG401/N/1, 03/02/2020  
Art. XXVIII:5 of the GATT 1994  Reservation of right to modify schedule  G/MA/302, 27/10/2014  
Agreement on Import Licensing 
Procedures  
Arts. 1.4(a) and/or 8.2(b)  Publications  G/LIC/N/1/KGZ/2, 26/09/2014  
Agreement on Trade Facilitation  
Category commitments   G/TFA/N/KGZ/2, 14/09/2018  
Arts. 1.4, 10.4.3, 10.6.2, and 12.2.2  Places where information is published on 
import, export, and transit procedures; 
operation of single window; measures on the 
use of customs brokers; contact point for 
exchange of information  G/TFA/N/KGZ/1/Add.1, 
30/08/2019  
G/TFA/N/KGZ/1, 04/04/2018  
Decision on notification procedure s 
for quantitative restrictions 
(G/L/59/Rev.1)  Quantitative restrictions in force  G/MA/QR/N/KGZ/1/Add. 1, 
24/03/2020  
G/MA/QR/N/KGZ/1, 25/07/2019  
Rules of origin  
Annex II, para. 4  Preferential rules of origin  G/RO/N/194, 18/02/2020  
G/RO/N/106, 19/09/2013  
G/RO/N/162, 21/07/2017  
G/RO/LDC/N/KGZ/1, 
28/11/2018  
Art. 5 and Annex II, para. 4  Non-preferential rule of origin  G/RO/N/177, 28/11/2018  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 157 - 
 
  Legal provision  Measure(s) notified  WTO document and date  
Agreement on Subsidies and Countervailing Measures  
Art. 25.11  Countervailing duty actions – ad hoc  G/SCM/N/311, 11/11/2016  
Art. 25 11  Countervailing duty actions – semi-annual 
reports  G/SCM/N/349/KGZ, 
14/06/2019  
G/SCM/N/342/KGZ, 
14/12/2018  
G/SCM/N/334/KGZ, 
15/06/2018  
G/SCM/N/328/KGZ, 
15/12/2017  
G/SCM/N/321/KGZ, 
15/06/2017  
G/SCM/N/313/KGZ, 
16/12/2016  
G/SCM/N/298/KGZ, 
12/10/2016  
G/SCM/N/305/KGZ, 
07/10/2016  
Art. 32.6 Countervailing duty legislation  G/SCM/N/1/KGZ/3, 17/10/2016  
G/SCM/N/1/KGZ/2, 27/01/2016  
Agreement on Safeguards    
Art. 12.1(a)  Initiation of safeguard investigation  G/SG/N/6/KGZ/8 -9, 
04/04/2019  
G/SG/N/6/KGZ/7, 20/09/2018  
G/SG/N/6/KGZ/5 -6, 
07/01/2016  
G/SG/N/6/KGZ/4, 15/08/2013  
Art. 12.1(b)  Finding of serious injury or threat thereof  G/SG/N/8/KGZ/5, 24/06/2019  
G/SG/N/8/KGZ/3 -4, 
07/01/2016  
 Termination of investigation without 
application of a safeguard measure  G/SG/N/9/KGZ/2, 31/01/2020  
G/SG/N/9/KGZ/1, 14/05/2019  
Art. 12.1(c)  Decision to  apply or extend a safeguard 
measure  G/SG/N/10/KGZ/5, 24/06/2019  
G/SG/N/10/KGZ/4, 07/01/2016  
G/SG/N/10/KGZ/2, 20/12/2013  
Art. 12.6 Safeguards legislation  G/SG/N/1/KGZ/3, 17/10/2016  
G/SG/N/1/KGZ/2, 27/01/2016  
Art. 9.1, footnote 2  Application of de minimis  import volume 
provision  G/SG/N/11/KGZ/1 -2, 
07/01/2016  
 
Agreement on Sanitary and Phytosanitary Measures  
Art. 7, Annex B  Sanitary or phytosanitary measures  G/SPS/N/KGZ/12, 18/03/2020  
G/SPS/N/KGZ/11, 04/03/2020  
G/SPS/N/KGZ/10, 03/02/2020  
G/SPS/N/KGZ/9, 29/03/2016  
G/SPS/N/KGZ/8, 22/03/2016  
G/SPS/N/KGZ/6 -7, 08/01/2016  
G/SPS/N/KGZ/5, 14/12/2015  
G/SPS/N/KGZ/3 -4, 28/07/2015  
G/SPS/N/KGZ/1 -2, 09/01/2015  
Agreement on Technical Barriers to Trade  
Arts. 2.10 and 5.7  Technical regulations and conformity 
assessment procedures  G/TBT/N/KGZ/35 -44, 
25/02/2016  
G/TBT/N/KGZ/34, 24/02/2016  
Art. 2.9  G/TBT/N/KGZ/48, 08/07/2016  
Arts. 2.9 and 5.6   G/TBT/N/45 -47, 24/03/2016  
 
Agreement on Trade -related Intellectual Property Rights  
Art. 63.2 IPR Legislation  IP/N/1/KGZ/28 -30, 03/04/2020  
IP/N/1/KGZ/26 -27, 02/04/2020  
IP/N/1/KGZ/23 -25, 17/12/2019  
IP/N/1/KGZ/22, 30/11/2018  
IP/N/1/KGZ/16 -22, 28/11/2018  
IP/N/1/KGZ/12 -15, 15/11/2018  
IP/N/1/KGZ/10, 13/11/2018  
IP/N/1/KGZ/5, 13/11/2018  
IP/N/1/KGZ/11, 12/11/2018  
IP/N/1/KGZ/4, 12/11/2018  
IP/N/1/KGZ/6 -9, 12/11/2018  
Art. 69.2 Contact point  IP/N/3/KGZ/3, 29/10/2019  
IP/N/3/KGZ/2, 25/01/2018  
Source:  WTO Secretariat.  
  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 158 - 
 
  Table A3.  1 List of goods for which different tariff treatment applied to the Kyrgyz 
Republic compared with other EAEU members during the transition period  
Tariff code  Name of item  Import customs duty rate (as a percentage of customs 
value , either in euros or in US dollars)a 
2015  2016  2017  2018  2019  2020  
0511 10 000 0  - bull sperm  0 0 0 0 0 UCT rate  
0511 91 901 9  ----- other 0 0 0 0 0 UCT rate  
0602 90 450 0  ------  rooted cuttings and 
young plants  0 0 0 0 0 UCT rate  
0701 10 000 0  - seminal  0 0 0 0 0 UCT rate  
0713 33 100 0  --- for sowing  0 0 0 0 0 UCT rate  
1005 10 1100  --- double hybrids and top 
cross hybrids  0 0 0 0 0 UCT rate  
1005 10 150 0  --- simple hybrids  0 0 0 0 0 UCT rate  
2103 90 900 9  --- other 0 0 0 0 0 UCT rate  
2309 90 100 0  -- soluble fish products 
or products from 
marine mammals  0 0 0 0 0 UCT rate  
2309 90 990 0  ----- other 0 0 0 0 0 UCT rate  
2815 11 000 0  -- in solid form  0b 0b UCT rate     
2922 41 000 0  -- lysine and its esters; 
salts of these compounds  0b 0b 0b 0b 0b UCT rate  
2930 40 900 0  -- other 0b 0b 0b 0b 0b UCT rateb 
3002 10 100 9  --- other 0 0 0 0 0 UCT rate  
3002 10 910 0  --- haemoglobin, blood 
globulins and serum 
globulins  0 0 0 0 0 UCT rate  
3002 10 950 1  ----- factors of blood 
coagulability  0 0 0 0 0 UCT rate  
3002 10 950 9  ----- other 0 0 0 0 0 UCT rate  
3002 10 990 0  ---- other 0 0 0 0 0 UCT rate  
3002 20 000 2  -- against hepatitis B  0 0 0 0 0 UCT rate  
3002 20 000 9  -- other 0 0 0 0 0 UCT rate  
3002 30 000 0  - vaccines for veterinary 
use 0 0 0 0 0 UCT rate  
3002 90 500 0  -- crop microorganisms  0 0 0 0 0 UCT rate  
3002 90 900 0  -- other 0 0 0 0 0 UCT rate  
3004 10 000 1  --- containing as the 
main active ingredient 
only: ampicillin 
trihydrate or ampicillin 
sodium salt or 
benzylpenicillin salt and 
compounds or 
carbenicillin or oxacillin 
or sulacillin 
(sultamicillin) or 
phenoxymethylpenicillin  0 0 0 0 0 UCT rate  
3004 10 000 5  ---- other 0 0 0 0 0 UCT rate  
3004 10 000 6  ---- containing as the main 
active substance only 
streptomycin sulphate  0 0 0 0 0 UCT rate  
3004 10 000 8  --- other 0 0 0 0 0 UCT rate  
3004 20 000 1  --- containing as the main 
active substance only: 
amikacin or gentamicin or 
griseofulvin, or 
doxycycline, or 
doxorubicin, or kanamycin, 
or acid fusidic and its 
sodium salt, or levomycetin 
(chloramphenicol) and its 
salts, or lincomycin, or 
metacycline, or n ystatin, or 
rifampicin, or cefazolin, or 
cephalexin, or cephalothin, 
or erythromycin base  0 0 0 0 0 UCT rate  
3004 20 000 2  --- other 0 0 0 0 0 UCT rate  
3004 20 000 3  --- containing as the main 
active substance only 
erythromycin base or 
kanamycin sulphate  0 0 0 0 0 UCT rate  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 159 - 
 
  Tariff code  Name of item  Import customs duty rate (as a percentage of customs 
value , either in euros or in US dollars)a 
2015  2016  2017  2018  2019  2020  
3004 32 000 1  --- packaged in forms or 
packages for retail sale and 
containing as the main 
active substance only 
fluocinolone  0 0 0 0 0 UCT rate  
3004 32 000 9  --- other 0 0 0 0 0 UCT rate  
3004 39 000 1  --- packaged in forms or 
packages for retail sale  0 0 0 0 0 UCT rate  
3004 40 000 1  -- packaged in forms or 
packages for retail sale and 
containing as the main 
active ingredient only: 
sodium caffeine -benzoate 
or xanthinol nicotinate, or 
papaverine, or pilocarpine, 
or theobromine, or 
theophylline  0 0 0 0 0 UCT rate  
3004 40 000 9  -- other 0 0 0 0 0 UCT rate  
3004 50 000 1  --- containing as the main 
active ingredient only: acid 
ascorbic (vitamin C) or acid 
nicotinic, or cocarboxylase, 
or nicotinamide, or 
pyridoxine, or thiamine and 
its salts (vitamin B1), or 
cyanocobalamin (vitamin 
B12) 0 0 0 0 0 UCT rate  
3004 50 000 2  --- other 0 0 0 0 0 UCT rate  
3004 50 000 5  --- containing as the main 
active substance only 
alpha -tocopherol acetate 
(vitamin E)  0 0 0 0 0 UCT rate  
3004 50 000 6  --- containing as the main 
active substance only: 
cocarboxylase or acid 
ascorbic (vitamin C), or 
cyanocobalamin (vitamin 
B12) 0 0 0 0 0 UCT rate  
3004 50 000 8  --- other 0 0 0 0 0 UCT rate  
3004 90 000 1  --- containing iodine or 
iodine compounds  0 0 0 0 0 UCT rate  
3004 90 000 2  --- other 0 0 0 0 0 UCT rate  
3004 90 000 6  ---- containing as the main 
active substance only: acid 
acetylsalicylic or 
paracetamol, or riboxin 
(inosine), or 
polyvinylpyrrolidone  0 0 0 0 0 UCT rate  
3004 90 000 9  ---- other 0 0 0 0 0 UCT rate  
3005 10 000 0  - adhesive dressing 
material and other 
products having an 
adhesive layer  0 0 0 0 0 UCT rate  
3006 20 000 0  - reagents for determining 
the blood group  0 0 0 0 0 UCT rate  
3006 30 000 0  - contrast preparations for 
radiographic examinations; 
diagnostic reagents 
intended for injections to 
patients  0 0 0 0 0 UCT rate  
3006 60 100 1  --- packaged in forms or 
packages for retail sale  0 0 0 0 0 UCT rate  
3006 60 900 0  -- on the basis of 
spermicides  0 0 0 0 0 UCT rate  
3204 19 000 0  -- other, including mixtures 
of two or more colouring 
substances of subheadings 
3204 11 -3204 19  0b 0b 0b 0b 0b UCT rate  
3302 10 400 0  --- other 0b 0b 0b 0b 0b UCT rate  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 160 - 
 
  Tariff code  Name of item  Import customs duty rate (as a percentage of customs 
value , either in euros or in US dollars)a 
2015  2016  2017  2018  2019  2020  
3602 00 000 0  explosive materials, ready -
made, ot her than 
gunpowder  0 0 0 0 0 UCT rate  
3603 00 100 9  -- other 0 0 0 0 0 UCT rate  
3603 00 900 1  -- detonating caps, non -
electric  0 0 0 0 0 UCT rate  
3808 93 130 0  ---- on the basis of 
triazines  0 0 0 0 0 UCT rate  
3808 93 150 0  ---- based on amides  0 0 0 0 0 UCT rate  
3808 93 170 0  ---- based on carbamates  0 0 0 0 0 UCT rate  
3808 93 210 0  ---- on the basis of 
dinitroaniline derivatives  0 0 0 0 0 UCT rate  
3808 93 230 0  ---- based on carbamide 
derivatives, uracil  or 
sulphonyl carbamide  0 0 0 0 0 UCT rate  
3808 93 270 0  ---- other 0 0 0 0 0 UCT rate  
3810 90 900 0  -- other 0 0 0 0 0 UCT rate  
3822 00 000 0  diagnostic or laboratory 
reagents on a substrate, 
ready -made diagnostic or 
laboratory reagents on or 
without a substrate, other 
than the commodity lines 
of heading 3002 or 3006; 
certified reference 
materials  0 0 0 0 0 UCT rate  
3824 90 640 0  ---- other 0 0 0 0 0 UCT rate  
3824 90 970 9  ----- other 0 0 0 0 0 UCT rate  
3907 60 800 0  -- other 0 0 0 0 0 UCT rate  
3918 90 000 0  - from other plastics  0 0 UCT rate     
3919 10 120 0  --- of polyvinyl chloride or 
polyethylene  0 0 UCT rate     
3919 10 150 0  --- from polypropylene  0 0 UCT rate     
3919 10 190 0  --- other 0 0 UCT rate     
3919 90 000 0  - other 0 0 UCT rate     
3920 10 240 0  ----- stretch layer  0 0 UCT rate     
3921 19 000 0  -- from other plastics  0 0 UCT rate     
3921 90 900 0  -- other 0 0 UCT rate     
3923 30 109 0  --- other 0 0 UCT rate     
3923 30 901 0  --- preforms for the 
manufacture of products 
with a capacity of more 
than 2 litres  0 0 UCT rate     
3923 90 000 0  - other 0 0 UCT rate     
4015 11 000 0  -- surgical  0 0 0 0 0 UCT rate  
7202 60 000 0  - ferronickel  0b 0b 0b UCT rate    
7210 20 000 0  - with galvanic or other 
coating of lead, including 
lead-tin alloy  0b 0b 0b UCT rate    
7217 10 100 0  --- with a maximum 
transverse size of less than 
0.8 mm  0b 0b 0b UCT rate    
7217 30 410 0  --- copper -plated  0b 0b 0b UCT rate    
7318 15 590 0  -------  other 0b 0b 0b 0b 0b UCT rate  
7318 16 100 0  --- carved from bars, cut -
outs or wire of solid cross -
section, with a hole 
diameter of not more than 
6 mm 0b 0b 0b 0b 0b UCT rate  
7318 21 000 9  --- other 0b 0b 0b 0b 0b UCT rate  
7318 22 000 9  --- other 0b 0b 0b 0b 0b UCT rate  
7408 19 900 0  --- with a maximum cross -
sectional dimension of not 
more than 0.5 mm  0 0 0 0 0 UCT rate  
7408 21 000 0  -- of alloys based on 
copper and zinc (brass)  0 0 0 0 0 UCT rate  
7505 22 000 0  -- from nickel alloys  0 0 0 0 0 UCT rate  
7604 29 100 9  ---- other 0b 0b 0b 0b 0b UCT rate  
7604 29 900 0  --- cut-outs 0b 0b 0b 0b 0b UCT rate  
7606 12 920 1  ----- louvers for blinds  0b 0b 0b 0b 0b UCT rate  
7606 12 920 9  ------  other 0b 0b 0b 0b 0b UCT rate  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 161 - 
 
  Tariff code  Name of item  Import customs duty rate (as a percentage of customs 
value , either in euros or in US dollars)a 
2015  2016  2017  2018  2019  2020  
7606 12 930 9  ----- other 0b 0b 0b 0b 0b UCT rate  
7606 92 000 0  -- from aluminium alloys  0b 0b 0b 0b 0b UCT rate  
7607 11 900 0  --- thickness not less than 
0.021  mm, but not more 
than 0.2  mm 0b 0b 0b 0b 0b UCT rate  
7607 19 900  1 ---- self-adhesive  0b 0b 0b 0b 0b UCT rate  
7607 20 900 0  -- thickness (except the 
base) is not less than 
0.021 mm, but not more 
than 0.2 mm  0b 0b 0b 0b 0b UCT rate  
7608 20 200 9  --- other 0b 0b 0b 0b 0b UCT rate  
7608 20 810 8  ----- other 0b 0b 0b 0b 0b UCT rate  
8101 96 000 0  -- wire 0b 0b 0b UCT rate    
8102 96 000 0  -- wire 0b 0b 0b UCT rate    
8414 60 000 1  -- the smallest horizontal 
size not exceeding 100 cm, 
the vertical size not 
exceeding 130 cm, the 
rated voltage not 
exceeding 250 V, the 
capacity not exceeding 
1500 m3/h, with a grease 
collecting element or a 
place for its installation, 
with a seat for connecting 
the air duct  0 0 0 0 0 UCT rate  
8418 61 001 1  ---- absorption heat pumps  0b 0b 0b 0b 0b UCT rate  
8418 69 000 8  --- other 0b 0b 0b 0b 0b UCT rate  
8418 99 100 9  ---- other 0 0 0 0 0 UCT rate  
8418 99 900 0  --- other 10 10 UCT 
rate    
8424 81 910 0  ----- sprays and powder 
dispensers intended for 
installation on tractors or 
for towing these tractors  0 0 0 0 0 UCT rate  
8424 81 990 0  ----- other 0 0 0 0 0 UCT rate  
8432 21 000 0  -- disc harrows  0 0 0 0 0 UCT rate  
8432 30 190 0  --- other 0 0 0 0 0 UCT rate  
8433 40 000 1  -- balers  0 0 0 0 0 UCT rate  
8433 51 000 1  --- since the release of 
which more than 3 years 
have passed  0 0 0 0 0 UCT rate  
8433 51 000 9  --- other 0 0 0 0 0 UCT rate  
8433 53 300 0  --- beet slicers and beet 
harvesters  0 0 0 0 0 UCT rate  
8436 10 000 0  - machines and 
mechanisms for the 
preparation of animal feeds  0 0 0 0 0 UCT rate  
8437 10 000 0  - machines for cleaning, 
sorting or calibrating 
seeds, grains or dry 
legumes  0 0 0 0 0 UCT rate  
8457 20 000 0  - single -stage machine 
tools 0 0 0 0 0 UCT rate  
8462 10 100 1  --- forging and stamping 
hydraulic presses with a 
pressing force of 200  MN, 
with the possibility of 
simultaneous placement of 
three stumps on the 
working table, equipped 
with a gas heating system 
for stumps  0 0 0 0 0 UCT rate  
8467 22 100 0  --- chain saws  0 0 0 0 0 UCT rate  
8467 22 300 0  --- saws disk  0 0 0 0 0 UCT rate  
8483 10 950 0  -- other 0 0 0 0 0 UCT rate  
8483 40 900 0  -- other 0 0 0 0 0 UCT rate  
8501 40 200 4  ----- other 0 0 0 0 0 UCT rate  
8507 20 800 8  --- other 0 0 0 0 0 UCT rate  
8542 32 900 9  ----- other 0 UCT 
rate     WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 162 - 
 
  Tariff code  Name of item  Import customs duty rate (as a percentage of customs 
value , either in euros or in US dollars)a 
2015  2016  2017  2018  2019  2020  
8701 20 101 3  ---- environmental level 4 
or higher than 7  0 0 0 0 0 UCT rate  
8701 20 901 5  ---- since the release of 
which more than 5 years 
have passed, but not more 
than 7 years  0 0 0 0 0 UCT rate  
8701 20 901 7  ---- other 0 0 0 0 0 UCT rate  
8701 90 110 0  ---- not more than 18 kW  0 0 0 0 0 UCT rate  
8701 90 200 0  ---- more than 18 kW, but 
not more than 37 kW  0 0 0 0 0 UCT rate  
8701 90 250 0  ---- more than 37 kW, but 
not more than 59 kW  0 0 0 0 0 UCT rate  
8701 90 310 0  ---- more than 59 kW, but 
not more than 75 kW  0 0 0 0 0 UCT rate  
8701 90 350 0  ---- more than 75 kW, but 
not more than 90 kW  0 0 0 0 0 UCT rate  
8701 90 390 9  ----- other 0 0 0 0 0 UCT rate  
8701 90 900 0  -- other 0 0 0 0 0 UCT rate  
8702 10 119 9  ----- other 10 10 10 UCT rate    
8702 90 119 0  ----- other 0 0 0 0 0 UCT rate  
8702 90 909 0  --- other 0 0 0 0 0 UCT rate  
8703 21 909 8  ----- other 10 10 10 10 10 UCT rate  
8703 22 909 8  ----- other 10 10 10 10 10 UCT rate  
8703 23 191 0  ----- with an engine 
displacement of more than 
1500 cm3, but not more 
than 1800 cm3  10 10 10 10 10 UCT rate  
8703 23 192 1  ------  with an engine 
displacement of more than 
1800 cm3, but not more 
than 2300 cm3 10 10 10 10 10 UCT rate  
8703 23 192 2  ------  other 10 10 10 10 10 UCT rate  
8703 24 109 9  ----- other 10 10 10 10 10 UCT rate  
8703 24 909 8  ----- other 10 10 10 10 10 UCT rate  
8703 32 909 8  ----- other 10 10 10 10 10 UCT rate  
8703 33 199 0  ----- other 10 10 10 10 10 UCT rate  
8704 22 910 8  ----- other 0 0 0 0 0 UCT rate  
8704 32 910 9  ----- other 10 10 10 10 10 UCT rate  
8704 90 000 0  - other 10 10 10 10 10 UCT rate  
8705 10 009 1  --- new 0 0 0 0 0 UCT rate  
8705 40 000 1  -- new 0 0 0 0 0 UCT rate  
8708 21 900 9  ---- other 0 0 0 0 0 UCT rate  
8708 40 500 9  ---- other 0 0 0 0 0 UCT rate  
8716 20 000 0  - trailers and semitrailers 
self-loading or self -
unloading for agriculture  0 0 0 0 0 UCT rate  
8716 31 000 0  -- tank trailers and tank 
semitrailers  0 0 0 0 0 UCT rate  
8716 39 300 1  ------  automotive, with a 
gross mass of more than 
15 tons and an overall 
length of at least 13.6 m  0 0 0 0 0 UCT rate  
8716 39 300 2  ------  automotive 
refrigerating, with an 
internal volume of a body 
not less than 76 m3 0 0 0 0 0 UCT rate  
8716 39 300 9  ------  other 0 0 0 0 0 UCT rate  
8716 80 000 0  - other vehicles  10 10 10 10 10 UCT rate  
9018 31 100 1  ---- for insulin of no more 
than 2 ml  0 0 0 0 0 UCT rate  
9018 31 100 9  ---- other 0 0 0 0 0 UCT rate  
9018 31 900 9  ---- other 0 0 0 0 0 UCT rate  
9018 32 100 0  --- tubular metal needles  0 0 0 0 0 UCT rate  
9018 90 500 1  --- systems for blood 
collection and transfusion, 
blood substitutes and 
infusion solutions  0 0 0 0 0 UCT rate 
9406 00 310 0  --- greenhouses  0 0 0 0 0 UCT rate  
a  The rates of import customs duties are applied from 1 January of the specified calendar year; in 
2015, the rates were applied from the date of adoption by the Supreme Eurasian Economic Council WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 163 - 
 
  of the decision on cancellation of customs control of goods and  vehicles transported through the 
Kyrgyz -Kazakh section of the state border. 
b  The rate of import customs duty is applied, provided that the person who is the declarant of the 
goods is included in the relevant list of organizations and persons submitted a nnually to the EEC by 
the Kyrgyz Republic, and also subject to submission to the customs body of the EAEU member State 
confirmation of the intended purpose of the imported goods.  
Source:  Protocol on Transitional Provisions.  
  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 164 - 
 
  Table A3.  2 Import prohibitions and restrictions on the EAEU Single List, 2020  
Description  UCT code  Measure and 
scope  
1. Prohibitions  
1.1 Ozone 
depleting substances  
 2903 77 100 0; 2903 77 200 0; 2903 77 300 0; 
2903 77 400 0; 2903 77 500 0; 2903 76 100 0; 
2903 76 200 0; 2903 76 900 0; 2903 77 900 0; 2903 14  000 
0; 2903  19 100 0 ; ex2903  79 210 0; ex2903 79  900 0; 
ex2903 39  110 0; ex3824  71 000 0; ex3824 72  000 0; 
ex3824  74 000 0 -ex3824  79 000 0; 8415 10; 8415 81 00; 
8415 82  000; 8418 61 00; ex8418 69  000; 84 18 10  200; 
8418 10  800; ex8418 50; ex8418  69 000; ex8418; ex8419; 
8418 10  200; 8418 10  800; 8418 30  200; 8418 30  800; 
8418 40  200; 8418 40  800; ex8418  50; ex8418 69  000; 
ex8479 89  970 1; ex8479  89 970 2; ex3921 11  000 0 -
ex3921 19  000 0; ex3907  20 200 1; ex 3907 20  200 9; 
ex8424 10  000 0  Import 
prohibition 
(except for goods 
in transit)  
1.2  Hazardous 
waste  ex0511 99  100 0; ex2106 90  980 3; ex2524; ex2620; 
ex2620  91 000 0; ex2620 21 000 0; ex2620 29 000 0; 
ex2620  99 950 9; ex2621; ex2706 00  000 0; 2707 91 000 0; 
2707 99; ex2710; 2710 91 000 0; 2713 20  000 0; 
ex2713  90; ex2714 90  000 0; ex28; ex29; ex2805 40; 
ex2818; ex2826  19 100 0; ex2826 90 800 0; 2833  25 000 0; 
ex2837; ex2842; ex2901 -2942 00 000 0; ex2903; 
ex2908  99; ex2915; ex2916; ex2917 ex2918; ex3 006 
92 000 0; ex3101 00  000 0; ex3802; ex3808; ex3811 11; 
ex3824; ex3824 90 610 0; ex3825; ex3825  30 000 0; 
ex3825 41 000 0; ex3825 50 000 0; ex3825 61 000 0; 
ex3825 69 000 0; ex3915; ex3923; ex4013; ex4017 00 000 
0; ex4101 -4103; ex4115 20  000 0; ex4301;  ex4401 39; 
ex4415; ex4707; ex4819; ex5701 90; ex5702 32; ex5702 
42; ex5702 50 310 0; ex5702 50 390 0; ex5702  92 100 0; 
ex5702 92  900 0; ex5703 20; ex5703 30; ex5705 00  300 0; 
6811 40  000; ex6812; ex7001 00  100 0; ex7010; ex7019; 
ex7204; ex7404  00; ex7503 00 ; ex7602 00; ex7802 00  000 
0; ex7902 00  000 0; ex8002 00  000 0; ex8101  97 000 0; 
ex8102 97  000 0; ex8103 30  000 0; ex8104  20 000 0; 
ex8104 30 000 0; ex8104 90  000 0; ex8105  30 000 0; 
ex8106 00  100 0; ex8107 30  000 0; ex8108  30 000 0; 
ex8109 30  000 0; ex811 0 20 000 0; ex8111  00 190 0; 
ex8112 13  000 0; ex8112 22  000 0; ex8112  52 000 0; 
ex8112 92  100 0;  ex8112 92  210 1; ex8112  92 210 9; 
ex8113 00  400 0; ex8539; ex8540; ex8548  10 Import 
prohibition 
(including goods 
in transit)  
1.3  Information 
printed, audio -visual 
and other media 
sources that may 
cause damage to 
political or economic 
interest, state 
security or the health 
and morality of 
citizens  ex3706; ex4901; ex4902; ex4908; ex4909 00 000 0; 
ex4910  00 000 0; ex4911; ex8523  Import 
prohibition 
(including goods 
in transit)  
1.4  Plant protection 
chemicals prohibited 
to be imported to the 
customs territory of 
the EAEU subject to 
Annexes A and B to 
the Stockholm 
Convention on 
persistent polluting 
substances signed in 
Stockholm on 
22 May 2001 2903 82 000 0; 2903 89  900 0; 2903 92  000 0; 2903 99; 
2910 40 000 0; 2910 90  000 0; 3808 59  000 9; 
3808 91 200 0; 3824 82  000 0  Import 
prohibition 
(except for goods 
in transit)  
1.5   Weapons , 
including main parts 
and cartridges, for 
military and civilian ex93; ex9303; ex9304 00 000 0; ex9306 21 000 0; 
ex9306  30; ex9306 90; ex9307 00 000 0  Import 
prohibition 
(including goods 
in transit) WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 165 - 
 
  Description  UCT code  Measure and 
scope  
purposes  (except for 
goods, subject to 
the import 
contro l system)  
1.6   Equipment for 
catching aquatic  
biological resources  ex5608 11  800 0;  8543 20  000 0  Import 
prohibition  
1.7   Skins of harp 
seals and baby seals  ex4301 80  709 5; ex4301 80  709 7; ex4301 90  009 0; 
ex4302  19 410 0; ex4302 19  499 0; ex4302 20  009 0; 
ex4302  30 100 0; ex4303 10  101 0; ex4303 10  109 0; 
ex4303  10 908 0; ex4303 10  909 0; ex4302 30  510 0; 
ex4302  30 559 0; ex6506 99  908 0  Import 
prohibition   
2. Restrictions (Non -automatic licensing)  
2.1  Ozone depleting 
substances and 
products containing 
such substances  ex2903 71 000 0; ex2903 73 000 0; ex2903 74 000 0; 
ex2903  75 000 0; ex2903 79 110 0  Import licensing 
(except for goods 
in transit)a 
2.2  Plant protection 
chemicals  ex3808  Import licensinga 
2.3  Hazardous 
waste  ex0511 99  100 0; 2307 00; ex2520 10  000 0; ex2530 90 
000 9; 2618 00  000 0; ex2619 00; ex2619 00 900 0; 
ex2620  2620 11 000 0; ex2620 19 000 0; ex2620 21  000 0 -
ex2620 29  000 0; ex2620 29 000 0; ex2620 30 000 0; 
ex2620  40 000 0; 2620; ex2620 60 000 0; ex2620  91 000 0; 
ex2620 99 950 9; ex2621 ex28; ex2805  40; ex2806 10 000 
0; ex2807 00; ex2808 00 000 0; ex2811 11 000 0; 
ex2811  19 100 0; ex2814 20 000 0; ex2815 12 000 0;  
ex2815  20 000 0; ex2837; ex2907; ex2908; ex2926; 
ex2929 ; ex3206; ex3208; ex3212; ex3504  00; ex3802; 
ex3824; ex3825; ex3825 41 000 0; ex3825 49 000 0; 
ex3825 61 000 0; ex3912 20; ex4004  00 000 0; ex4012 
20 000 0; ex4101 -4103; ex4115  10 000 0; ex4115 20  000 
0; ex4301; ex5003 00  000 0; ex5103 20  000 0;  ex5202 
10 000 0; ex5505; ex5601  30 000 0; ex7112 30  000 0; 
ex7112 99  000 0; ex7204; ex7404 00; ex7503 00; 
ex7602  00; ex7802  00 000 0; ex7902 00  000 0; ex8002 
00 000 0; ex8101 97  000 0; ex8102 97  000 0; 
ex8103  30 000 0; ex8104 20  000 0; ex8105 30  000 0; 
ex8106  00 100 0; ex8107 30  000 0; ex8108 30  000 0; 
ex8109  30 000 0; ex8110 20  000 0; ex8111 00  190 0; 
ex8112  13 000 0; ex8112 22  000 0; ex8112 52  000 0; 
ex8112  92 210 9; ex8113 00  400 0; ex85 ex8548 10 910 0; 
ex8548 10 100 0; ex8548 10 210 0; ex8548 10 290 0; 
ex2620  Import licensinga 
2.4  Species of wild 
fauna and flora 
subject to the 
Convention on 
international trade in 
endangered species 
of wild fauna and 
flora  No UCT codes are provided. Only the names of species of wild 
fauna and flora are specified according to CITES appendix.  Import r estriction  
2.5  Precious metals 
and gems, including 
Kimberley Process 
diamonds, rubies, 
sapphires, emeralds, 
alexandrites, etc.  ex2530 90  900 1; 7101 10  000 0; ex7102 21  000 0; 
7102 29 000 0; 7102 31  000 0; ex7102 39 000 0; 
7103 10 000 2; 7103 10 000 3; 7103 10 000 4; 
7103 10 000 5; 7103 91  000 1; 7103 91 000 2; 
7103 91 000 3; 7103 99  000 2; 7105 10 000 0; 
ex7116  10 0000; 7116 20  Import licensing 
(except for 
precious metals 
imported by the 
Central 
(National) Banks 
of the EAEU 
member  States)  
2.6  Precious metals 
and commodities 
containing precious 
metals  2603 00  000 0; 2604 00  000 0; 2607 00  000 0; 2608 00  000 
0; 2609 00  000 0; 2616; ex2617; 2620 19  000 0; 2620 
21 000 0; 2620 29  000 0; 2620 30  000 0; 2620 91  000 0; 
2620 99  100 0; 2620 99  400 0; 262 0 99 950 1; 2620 99  950 
2; 2620 99  950 3; 2620 99  950 9; ex2621; 7106 91 000; 
7108 12  000 9; 7110  11 000 9; 7110 21  000 9; 7110 31  000 
0; 7110 41  000 0; 7112; 7401 00  000 0; 7402 00  000 0; 
7501; 7801 99  100 0  Import licensing  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 166 - 
 
  Description  UCT code  Measure and 
scope  
2.7  Narcotic drugs 
with psychotropic  
substances and their 
precursors  1209 99  910 0; 1211 30  000 0; 1211 40  000 0; 1211 90  850 
0; 1301 90  000 0; 1302 11  000 0; 1302 19  800 0; 2806 
10 000 0; 2807 00  100 0; 2812 10  950 0; 2841 61  000 0; 
2902 30  000 0; 2902 90 000 0; 2903 39  190 0; 
2903 99 900 0; 2904 20  000 0; 2905 39  250 0; 
2905 51 000 0; 2907  19 900 0; 2909 11 000 0; 
2909 30 900 0; 2912 21  000 0; 2912 49  000 0; 
2914 11 000 0; 2914  12 000 0; 2914  31 000 0; 2914 50  000 
0; 2915 21  000 0; 2915 24  000 0; 2915 90 000 0; 
2916 12 000 0; 2916 14 000 0; 2916 34  000 0; 
2918 19 980 0; 2920 90  100 0; 2921 11 000 0; 
2921 19 990 0; 2921 30  100 0; 2921 46  000 0; 2921 49 000 
0; 2922  14 000 0;  2922 19 850 0; 2922 29  000 0; 2922 
31 000 0; 2922 39  000 0; 2922 43  000 0; 2922 44  000 0; 
2922 49  850 0;  2922 5 0 000 0; 2924 23  000 0; 2924 24  000 
0; 2924 29  980 0; 2925 12  000 0; 2926 90  950 0; 2926 
30 000 0; 2924 11  000 0; 2924 29  980 0; 2930 90 990 0; 
2932 11  000 0; 2932 20 900 0; 2932 91  000 0; 2932 92  000 
0; 2932 93  000 0; 2932 94  000 0; 2932 95  000 0; 2932 
99 000 0; 2933 29  900 0; 2933 32  000 0; 2933 33  000 0; 
2933 39  990 0; 2933 41  000 0; 2933 49  300 0; 2933 49  900 
0; 2933 53  100 0; 2933 53  900 0; 2933 55  000 0; 2933 
59 950 0; 2933 72  000 0; 2933 91  100 0; 2933 91  900 0; 
ex2933 99; 2933 99  800; 2933 99  800 9;  2934 91  000 0; 
2934 99 900 0; 2939 11  000 0; 2939 19  000 0; 2939 41  000 
0-2939 49  000 0; 2939 51  000 0; 2939 61  000 0; 2939 
62 000 0; 2939 63  000 0; 2939 69  000 0; 2939 91  000 0;  
2939 99  000 0; ex3003; 3003 40  000 0; 3003 90  000 0; 
ex3004; 3004 40 000; 30 04 40 000 9; 3004 90 000 2; 3004 
90 000 9; 3824 90  970 Import licensing  
2.8  Toxic 
substances except 
for precursors of the 
drugs and substances  
with psychotropic 
effects  ex1211 90  850 0;  ex1302 19  800 0; 2804 70  001 0; 
2804 80 000 0; ex2805 40; ex2811 29  900 0; 
ex2837  11 000 0; ex2837 19  000 0; ex2842 90  800 0; 
ex2843  29 000 0; ex2848 00  000 0; ex2852 10  000 7; 
ex2852  90 000 8; 2905 11  000 0; ex2905 59; 
ex2907  11 000 0; ex2922 19  850 0; ex2924 19  000 0; 
ex2926  90 950 0;  ex2930 90 990 0; ex2931 10 000 0; 
ex2931  90 900 9; ex2933 39  990 0; ex2939 20  000 0; 
ex2939  99 000 0; ex3001 90  980 0; ex8112 51  000 0  Import licensinga 
2.9  Medicines and 
pharmaceutical 
products  ex2106 90  980 3; ex2106 90  980 9; ex2904 -ex2909; 
ex2912 -ex2942 00  000 0; ex2936; ex3001; ex3002; 
ex3003; ex3004; 3006 30  000 0; 3006 60; ex3913  Import restriction  
2.10 Civil 
radio-electronic 
and/or high -
frequency means 
including built -in or 
forming part of other 
goods  ex8419; ex8470; ex8471; ex8514; 8516 50  000 0; ex8517; 
ex8517 12 000 0; ex8517 62 000 9; ex8517 69 900 0; 
ex8518; ex8518 10; ex8519; ex8521; ex8525; ex8526; 
ex8527; ex8528; ex8531; ex8540; ex90; ex9018 ; ex9021; 
ex9027  Import licensing  
2.11 Technical 
devices used for 
obtaining information 
in secret  
 
 ex8301 70  000 0; ex8471; ex8505 90  200 0; ex8517 
61 000; ex8517 62  000; ex8517 69  390 0; ex8517 69  900 0; 
ex8517  70 900 1; ex8518 30  950 0; ex8518 40; 
ex8519  81 550; ex8519 81 510 0; ex8519 81  610; 
ex8519  81 650; ex8519 81  750; ex8519 81  850; 
ex8519  89 900; ex8521; ex8523 51; ex8523 29  310 1; 
ex8523  29 310 2; ex8523 49 250 0; ex8523 49 450 0; 
ex8523  49 910 1; ex8523 51  910 1; ex8523 59  910 1; 
ex8523  80 910 1; ex8525 50  000 0; ex8525 60  000 0; 
ex8525  80; ex8526 10  000 9; ex8526 91; ex8527; 
ex8529  10 390 0; ex9002; ex9006 51  000 0; ex9006 52  000 
9; ex9006 53  100 0; ex9019 10  900 9; ex9022 19  000 0  Import licensinga 
2.12 Encryption 
devices  
 ex8443 31; ex8443 32  100 9; ex8443 32  300 0; 
ex8443  99 100 9; ex8470 10  000 9; ex8470 50  000; 
ex8471  30 000 0; ex8471 41  000 0; ex8471 49  000 0; 
ex8471  50 000 0; ex8471 70  500 0; ex8471 70  980 0; 
ex8471  80 000 0; ex8471 90  000 0; ex8473 21  100 0; 
ex8473  21 900 0; ex8473 30  200 9; ex8473 30  800 9; 
ex8517 11 000 0; ex8517 12  000 0; ex8517 18  000 0; Import licensing  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 167 - 
 
  Description  UCT code  Measure and 
scope  
ex8517  61 000 1; ex8517 61 000 2; ex8517 61  000 8; 
ex8517  62 000; ex8517 69  390 0; ex8517 69  900 0; 
ex8517  70 900; ex8523 29  310 1; ex8523 29  310 2; 
ex8523  29 330; ex8523 49 250 0; ex8523 49  450 0; 
ex8523  49 10 1; ex8523 49 930 0; ex8523 51  910 1; 
ex8523  51 930 0; ex8523 52; ex8523 59  910 1; 
ex8523  59 930 0; ex8523 80  910 1; ex8523 80  930 0;  
ex8525  50 000 0; ex8525 60  000 0; ex8528 71 130 0;  
ex8529  90 200 1;  ex8529 90  650 0; ex8529 90  970 0; 
ex8526  91 200 0; e x8526 91  800 0; ex8526 92  000; 
ex8542  31 901 1; ex8542 31  909 9; ex8542 32  900 9; 
ex8543  70 900 0; ex8543 90  000 9  
2.13 Human organs 
and tissue, blood and 
its components  ex3001 90  200 0; ex3002 90  100 0; ex3002 12 000 3; 
ex3002  12 000 4; ex3002 12 000 5; ex3002 13 000 0; 
ex3002  14 000 0; ex3002 90 100 0; ex3001 90 200 0; 
ex0511  99 853 9; ex0511 99 859 9  Import licensing  
2.14 Official and civil 
weapons, its main 
parts and cartridges  ex9302 00 000 0; ex9303 20; ex9303 30 000 0; 
ex9303  20 100 0; ex9303 20 950 0; ex9304 00 000 0; 
ex9305  10 000 0; ex9305 20 000 1; ex9305 20 000 9; 
ex9305  20 000; ex9306 21 000 0; ex9306 30 100 0; 
ex9306  30 900 0; ex9306 29 000 0; ex3603 00 900 2; 
ex9307  00 000 0; ex8211; ex9506 99 900 0; ex9304 00 00 0 
0; ex9303; ex93; ex9705 00 000 0; ex9706 00 000 0  Import licensing  
2.15 Plant protection 
products and other 
persistent organic 
pollutants to be used 
in laboratory -scale 
research, as well as 
the reference 
standard  2903 82 000 0; 3808 59 000 9; 2910 40 0 00 0; 2910 90 000 
0; 2903 92 000 0; 2903 83 000 0; 3808 91 200 0; 2903 99  
3824 82 000 0; 2903 92 000 0  Import licensinga 
3. Surveillance (automatic licensing)  
3.1  Steel pipes  7304 22 000 1; 7304 22 000 2; 7304 22 000 9; 7304 23 000 
1; 7304 23 000 2; 7304 23 000 9; 7304 24 000 1; 7304 24 
000 2; 7304 24 000 3; 7304 24 000 4; 7304 24 000 5; 7304 
24 000; 7304 24 000; 7304 29 100 1; 7304 29 100 2; 7304 
29 100 3; 7304 29 100 9; 7304 29 300 1; 7304 29 300 2; 
7304 29 300 3; 7304 29 300 4; 7304 29 300 9; 7304 29 900 
1; 7304 29 900 9; 7305 20 000 0; 7306 21 000 0; 7306 29 
000 0; 7304 24 000 1; 7304 24 000 2; 7304 24 000 5; 7304 
24 000 9; 7304 29 100 1; 7304 29 100 2; 7304 29 100 9; 
7304 29 300 1; 7304 29 300 2; 7304 29 300 9; 7306 21 000 
0; 7306 29 000 0  Automat ic import 
licensing  
a It is forbidden to import this product by individuals as products for personal use.  
Source:  EEC, Unified List of Goods that Are Subject to Non -tariff Regulation Measures in Trade with Third 
Countries and the Regulations on the Import and/or Export of These Goods. Viewed at: 
http://www.eurasiancommission.org/ru/act/trade/catr/nontariff/Pages/ep.new.aspx . 
  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 168 - 
 
  Table A3.  3 Export prohibitions and restrictions on the EAEU Single List, 2020  
Description  UCT code  Measure and 
scope  
1. Prohibitions  
1.1 Ozone 
depleting 
substances  
 2903 77 100 0; 2903 77 200 0; 2903 77 300 0; 2903 77 400 0; 
2903 77 500 0; 2903 76 100 0; 2903 76 200 0; 2903 76 900 0; 
2903 77 900 0; 2903 14  000 0; 2903 19  100 0 ; ex2903 
79 210 0; ex2903 79  900 0; ex2903 39  110 0; ex3824 71  000 0; 
ex3824  72 000 0; ex3824 74  000 0 -ex3824 79  000 0; 8415 10; 
8415 81 00; 8415 82  000; 8418 61 00; ex8418 69  000; 
8418 10 200; 8418 10  800; ex8418 50; ex8418 69  000; ex8418; 
ex8419; 8418 10  200; 8418 10  800; 8418 30  200; 8418  30 800; 
8418 40  200; 8418 40  800; ex8418 50; ex8418 69  000; 
ex8479  89 970 1; ex8479 89  970 2; ex3921 11  000 
0- ex3921  19 000 0; ex3907 20  200 1; ex3907 20  200 9; 
ex8424  10 000 0  Export 
prohibition 
(except for goods 
in transit)  
1.2  Information 
printed, audio -
visual and other 
media sources that 
may cause damage 
to political or 
economic interest, 
state security or 
the health and 
morality of citizens  ex3706; ex4901; ex4902; ex4908; ex4909 00 000 0; 
ex4910  00 000 0; ex4911; ex8523  Export  
prohibition 
(including goods 
in transit)  
1.3  Weapons , 
including main 
parts and 
cartridges, for 
military and civilian 
purposes  ex93; ex9303; ex9304 00 000 0; ex9306 21 000 0; ex9306 30; 
ex9306 90; ex9307 00 000 0  Export 
prohibition 
(including goods 
in transit) 
(except for 
goods, subject to 
the export 
control system)  
1.4  Sables, live  0106 19  009 3  Export 
prohibition  
1.5  Personal 
protective 
equipment, safety 
and disinfectants, 
medical products  2905 12 000 0; 3005; 3808 94; 3926; 3926 20 000 0; 4015; 
5603; 5603 11 900 0; 5603 12 100 0; 5603 12 900 0; 
5603 13 100 0; 5603 13 900 0; 5603 14 100 0; 5603 14 900 0; 
5603 93 900 0 ; 5603 94 900 0; 5903; 5903 10; 5903 20 900 0; 
5903 90 990 0; 5906; 5906 91 000 0; 6210 10 920 0; 
6210 10  980 0; 6210 40 000 0; 6210 50 000 0; 6307 90 980 0; 
6307 90 920 0; 9020 00 000 0; 8421 39 200 9; 9020 00 000 0; 
9004 90  Export 
prohibition  
1.6  Certain types 
of food items  0703 10 110 0; 0703 10 190 0; 0703 20 000 0; 0706 10 000 9; 
1002; 1006; 1008 10  000;1008 21 000 0; 1008 29 000 0; 1103; 
1103 19 500 0; 1103 20 500 0; 1104 29 300 0; 1201; 1206 00;  
1904 90 800 0  Export 
prohibition  
2. Restrictions (licensing)  
2.1 Ozone 
depleting 
substances and 
products containing 
such substances  ex2903 71 000 0; ex2903 73 000 0; ex2903 74 000 0; 
ex2903  75 000 0; ex2903 79 110 0  Export licensing 
(except for goods 
in transit)a 
2.2  Hazardous 
waste  ex0511 99  100 0; 2307 00; ex2520 10  000 0; ex2530 90 000 9; 
2618 00  000 0; ex2619 00; ex2619 00 900 0; 
ex2620  2620 11 000 0; ex2620 19 000 0; ex2620 21  000 0 – 
ex2620 29  000 0; ex2620 29 000 0; ex2620 30 000 0; 
ex2620  40 000 0; 2620; ex2620 60 000 0;  ex2620 91 000 0; 
ex2620 99 950 9; ex2621  ex28; ex2805 40; ex2806 10 000 0; 
ex2807 00; ex2808  00 000 0; ex2811 11 000 0; 
ex2811  19 100 0; ex2814  20 000 0; ex2815 12 000 0; 
ex2815  20 000 0; ex2837; ex2907; ex2908; ex2926; ex2929; 
ex3206; ex3208; ex3212; ex3 504 00; ex3802; ex3824; ex3825; 
ex3825 41 000 0; ex3825 49 000 0; ex3825 61 000 0; 
ex3912  20; ex4004 00  000 0; ex4012 20  000 0; ex4101 – 4103; 
ex4115  10 000 0; ex4115 20  000 0; ex4301; ex5003 00  000 0; 
ex5103 20  000 0;  ex5202 10  000 0; ex5505; ex5601 30  000 0; 
ex7112 30  000 0; ex7112 99  000 0; ex7204; ex7404 00; Export licensinga WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 169 - 
 
  Description  UCT code  Measure and 
scope  
ex7503  00; ex7602 00; ex7802 00  000 0; ex7902 00  000 0; 
ex8002 00  000 0; ex8101 97  000 0; ex8102 97  000 0; 
ex8103  30 000 0; ex8104 20  000 0; ex8105 30  000 0; 
ex8106  00 100 0; ex8107 30  000 0; ex8108  30 000 0; ex8109 
30 000 0; ex8110 20  000 0; ex8111 00  190 0; ex8112  13 000 0; 
ex8112 22  000 0; ex8112 52  000 0; ex8112  92 210 9; ex8113 
00 400 0; ex85 ex8548 10 910 0; ex8548 10 100 0; ex8548 10 
210 0; ex8548 10 290 0; ex2620  
2.3  Collectible 
materials in 
mineralogy and 
palaeontology  ex9601; ex9705 00  000 0  Export licensing  
2.4 Wild animals, 
live, certain wild 
plants, including 
those used for 
medicinal purposes  ex01; ex0301; ex0306; ex0307; ex0308;  ex0407; 
0802 90 500 0; 1211; 1212 21 000 0; 1212 29 000 0; ex1302  Export licensing  
2.5  Species of 
wild fauna and flora 
subject to the 
Convention on 
international trade 
in endangered 
species of wild 
fauna and flora  No UCT codes are provided. Only the names of species of wild 
fauna and flora are specified according to CITES appendix.  Export restriction  
2.6  Rare and 
endangered species 
of wild animals and 
wild growing plants 
and parts thereof 
and/or derivates 
inscribed in the 
"Red book" of the 
EAEU  ex0101 -0106; ex0301; 0306 -0308; ex0601 -0604; ex07; 
ex1211; ex1212; ex20; ex2102  Export licensing  
2.7  Precious 
metals and gems, 
including Kimberley 
process diamonds, 
rubies, sapphires, 
emeralds, 
alexandrites, etc.  ex2530 90  900 1; 7101 10  000 0; ex7102 21  000 0; 
7102 29 000  0; 7102 31  000 0; ex7102 39 000 0; 
7103 10 000 2; 7103 10 000 3; 7103 10 000 4; 7 103 10 000 5; 
7103 91  000 1; 7103 91 000 2; 7103 91 000 3; 7103 99  000 2; 
7105 10 000 0; ex7116 10 0000; 7116 20  Export licensing 
(except for 
precious metals 
exported by the 
Central 
(National) Banks 
of the EAEU 
member  States)  
2.8  Precious 
metals and 
commodities 
containing precious 
metals  2603 00  000 0; 2604 00  000 0; 2607 00  000 0; 2608 00  000 0; 
2609 00  000 0; 2616; ex2617; 2620 19  000 0; 2620 21  000 0; 
2620 29  000 0; 2620 30  000 0; 2620 91  000 0; 2620 99  100 0; 
2620 99  400 0; 2620 99  950 1; 2620 99 950 2; 2620 99  950 3; 
2620 99 950 9; ex2621; 7106 91 000; 7108 12  000 9; 
7110 11 000 9; 7110 21  000 9; 7110 31  000 0; 7110 41  000 0; 
7112; 7401 00  000 0; 7402 00  000 0; 7501; 7801 99  100 0  Export licensing  
2.9  Raw mineral 
substances and 
untreated stones  ex7103 10  000 0; ex2530 90  000 1  Export licensinga 
2.10 Narcotic 
drugs with 
psychotropic  
substances and 
their precursors  1209 99  910 0; 1211 30  000 0; 1211 40  000 0; 1211 90  850 0;  
1301 90  000 0; 1302 11  000 0; 1302 19  800 0; 2806 10 000 0; 
2807 00  100 0; 2812 10  950 0; 2841 61  000 0; 2902 30  000 0; 
2902 90 000 0; 2903 39  190 0; 2903 99 900 0; 2904 20  000 0; 
2905 39  250 0; 2905 51  000 0; 2907 19  900 0; 2909 11 000 0; 
2909 30 900 0; 2912 21  000 0; 2912 49  000 0; 2914 11  000 0; 
2914 1 2 000 0; 2914 31  000 0; 2914 50  000 0; 2915 21  000 0; 
2915 24  000 0; 2915 90 000 0; 2916 12 000 0; 2916 14 000 0; 
2916 34  000 0; 2918 19 980 0; 2920 90  100 0; 2921 11 000 0; 
2921 19  990 0; 2921 30  100 0; 2921 46  000 0; 2921 49 000 0; 
2922 14  000 0;  2922 19  850 0; 2922 29  000 0; 2922 31  000 0; 
2922 39  000 0; 2922 43  000 0; 2922 44  000 0; 2922 49  850 0;  
2922 50  000 0; 2924 23  000 0; 2924 24  000 0; 2924 29  980 0; 
2925 12  000 0; 2926 90  950 0; 2926 30  000 0; 2924 11  000 0; 
2924 29  980 0; 2930 90 990 0; 2932 11  000 0; 2932 20 900 0; 
2932 91  000 0; 2932 92  000 0; 2932 93  000 0; 2932 94  000 0; Export licensing  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 170 - 
 
  Description  UCT code  Measure and 
scope  
2932 95  000 0; 2932 99  000 0; 2933 29  900 0; 2933 32  000 0; 
2933 33  000 0; 2933 39  990 0; 2933 41  000 0; 2933 49  300 0; 
2933 49  900 0; 2933 53  100 0; 2933 53  900 0; 2933 55  000 0; 
2933 59  950 0; 2933 72  000 0; 2933 91  100 0; 2933 91  900 0; 
ex2933 99; 2933 99  800; 2933 99  800 9; 2934 91  000 0; 
2934 99 900 0; 2939 11  000 0; 2939 19  000 0; 2939 41  000 0 -
2939 49  000 0; 2939 51  000 0; 2939 61  000 0; 2939 62  000 0; 
2939 63  000 0; 29 39 69  000 0; 2939 91  000 0;  2939 99  000 0; 
ex3003; 3003 40  000 0; 3003 90  000 0; ex3004; 3004 40 000; 
3004 40 000 9; 3004 90 000 2; 3004 90 000 9; 3824 90  970 
2.11 Toxic 
substances except 
for precursors of 
the drugs and 
substances  with 
psychotropic effects  ex1211 90  850 0;  ex1302 19  800 0; 2804 70  001 0; 
2804 80 000 0; ex2805 40; ex2811 29  900 0; ex2837 11 000 0; 
ex2837 19  000 0; ex2842 90  800 0; ex2843 29  000 0; 
ex2848  00 000 0; ex2852 10  000 7; ex2852 90  000 8; 
2905 11 000 0; ex2905 59; ex2907 11  000 0;  ex2922 19  850 0; 
ex2924 19  000 0; ex2926 90  950 0;  ex2930 90 990 0; 
ex2931  10 000 0; ex2931 90  900 9; ex2933 39  990 0; 
ex2939  20 000 0; ex2939 99  000 0; ex3001 90  980 0; 
ex8112  51 000 0  Export licensinga 
2.12 Technical 
devices used for 
obtaining 
information in 
secret  
 ex8301 70  000 0; ex8471; ex8505 90  200 0; ex8517 61  000; 
ex8517 62  000; ex8517 69  390 0; ex8517 69  900 0; 
ex8517  70 900 1; ex8518 30  950 0; ex8518 40; ex8519 81  550; 
ex8519 81 510 0; ex8519 81  610; ex8519 81  650; 
ex8519  81 750; ex8519 81  850; ex8519 89  900; ex8521; 
ex8523  51; ex8523 29  310 1; ex8523 29  310 2; 
ex8523  49 250 0; ex8523 49 450 0; ex8523 49 910 1; 
ex8523  51 910 1; ex8523 59  910 1; ex8523 80  910 1; 
ex8525  50 000 0; ex8525 60  000 0; ex85 25 80; 
ex8526  10 000 9; ex8526 91; ex8527; ex8529 10  390 0; 
ex9002; ex9006 51  000 0; ex9006 52  000 9; ex9006 53  100 0; 
ex9019 10  900 9; ex9022 19  000 0  Export licensinga 
2.13 Encryption 
devices  
 ex8443 31; ex8443 32  100 9; ex8443 32  300 0; 
ex8443  99 100 9; ex8470 10  000 9; ex8470 50  000; 
ex8471  30 000 0; ex8471 41  000 0; ex8471 49  000 0; 
ex8471  50 000 0; ex8471 70  500 0; ex8471 70  980 0; 
ex8471  80 000 0; ex8471 90  000 0; ex8473 21  100 0; 
ex8473  21 900 0; ex8473 30  200 9; ex8473 30  800 9; 
ex8517  11 000 0; ex8517 12  000 0; ex8517 18  000 0; 
ex8517  61 000 1; ex8517 61 000 2; ex8517 61  000 8; 
ex8517  62 000; ex8517 69  390 0; ex8517 69  900 0; 
ex8517  70 900; ex8523 29  310 1; ex8523 29  310 2; 
ex8523  29 330; ex8523 49 250 0; ex8523 49  450 0; 
ex8523  49 910 1; ex8523 49 930 0; ex8523 51  910 1; 
ex8523  51 930 0; ex8523 52; ex8523 59  910 1; 
ex8523  59 930 0; ex8523 80  910 1; ex8523 80  930 0;  
ex8525  50 000 0; ex8525 60  000 0; ex8528 71 130 0;  
ex8529  90 200 1;  ex8529 90  650 0; ex8529 90  970 0; 
ex8526  91 200 0; ex85 26 91  800 0; ex8526 92  000; 
ex8542  31 901 1; ex8542 31  909 9; ex8542 32  900 9; 
ex8543  70 900 0; ex8543 90  000 9  Export licensing  
2.14 Goods having 
cultural value, 
documents o f the 
national archives, 
and original 
archival documents  ex37; ex39; ex40; ex42;  ex44; ex4420; ex46; ex49; ex4907 00; 
ex57; ex58; ex61; ex62; ex63; ex64; ex65; ex66; ex69; 
ex6913; ex70; ex7018; ex7113; ex7114; ex7117; ex7118; 
ex73; ex74; ex75; ex76; ex78; ex79; ex80; ex81; ex82; 
ex8306; ex84; ex85; ex87; ex88; ex89; ex90; ex91; ex92; 
ex93; ex94; ex95; ex96; ex9611 00 000 0; ex97; ex9702 
00 000 0; ex9705 00  000 0  Export licensing  
 
2.15 Human 
organs and tissue, 
blood and its 
components  ex3001 90  200 0; ex3002 90  100 0; ex3002 12 000 3; 
ex3002  12 000 4; ex3002 12 000 5; ex3002 13 000 0; 
ex3002  14 000 0; ex3002 90 100 0; ex3001 90 200 0; 
ex0511  99 853 9; ex0511 99 859 9  Export licensing  
2.16 Official and 
civil weapons, its 
main parts and 
cartridges  ex9302 00 000 0; ex9303 20; ex9303 30 000 0; ex9303 20 
100 0; ex9303 20 950 0; ex9304 00 000 0; ex9305 10 000 0; 
ex9305  20 000 1; ex9305 20 000 9; ex9305 20  000; 
ex9306  21 000 0; ex9306 30 100 0; ex9306 30 900 0; 
ex9306  29 000 0; ex3603 00 900 2; ex9307 00 000 0; ex8211; 
ex9506 99 900 0; ex9304 00 000 0; ex9303; ex93; 
ex9705  00 000 0 ; ex9706 00 000 0  Export licensing  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 171 - 
 
  Description  UCT code  Measure and 
scope  
2.17 Information 
on subsoil deposits, 
such as fuel, 
energy and mineral 
raw materials  Description of the products only  Export licensinga 
a It is forbidden to export  this product by individuals as products for personal us e. 
Source:  EEC, Unified List of Goods that Are Subject to Non -tariff Regulation Measures in Trade with Third 
Countries and the Regulations on the Import and/or Export of These Goods. Viewed at: 
http://www.eurasiancommission.org/ru/act/trade/catr/nontariff/Pages/ep.new.aspx .  
  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 172 - 
 
  Table A3.  4 SPS legislation adopted at the EAEU level  
EAEU body  Title Instrument/date  
Council  Procedure for the Interaction Between Authorized Persons of the 
Veterinary Authorities of the EAEU Member States During 
Implementation of Interim Sanitary, Veterinary -Sanitary and 
Quarantine Phytosanitary Measures  Decision No.  149 of 
16 May 2016  
College  On the Maximum Permissible Levels of Residues of Veterinary 
Medicinal Products (Pharmacologically Active Substances) that May 
Be Contained in Unprocessed Food Products of Animal Origin, 
Including Raw Materials, and Methods for their Determination  Decision No. 28 of 
13 May 2018  
College  On the Application of Veterinary and Sanitary Measures in the 
Eurasian Economic Union  Decision No.  317 of 
18 June 2010 with 
amendments of 
9 July 2019  
Council  Regulations on the Single Procedure for Carrying Out Joint Checks 
of Objects and the Sampling of the Goods (Products) which Are 
Subject to Veterinary Control (Supervision)  Decision No.  94 of 
9 October 2014  
College  Templates of the Common Veterinary Certificates for Goods 
Subject to Veterinary Control, Imported to  the Territory of the 
Eurasian Economic Union from Third Countries  Decision No.  607 of 
7 April 2011 with 
amendments of 
9 July 2019  
College  Regarding the Adoption of the Technical Regulations of the 
Customs Union on the Safety of Packaging  Decision No.  769 of 
16 August 2011 with 
amendments of 
16 April 2019  
College  About the Single List of Products, Confirmation of Conformity 
which Is in the Form of Issuing a Declaration of Conformity  Decision No.  620 of 
7 April 2011 with 
amendments of 
15 September 2017  
College  About Issues in the Field of Veterinary Control (Supervision) in The 
Customs Union  Decision No.  342 of 
17 August 2010  
Council  About Approval of Rules of Organization of Laboratory Inspection 
(Tests) During Veterinary Control (Supervision)  Decision  No. 80 of 
10 November 2017  
Council  About Approving the Uniform Veterinary (Veterinary and Sanitary) 
Requirements Imposed on Goods Subject to Veterinary Control 
(Supervision)  Decision No.  27 of 
13 February 2018  
Council  On Draft Documents in the Field of Application of Veterinary 
Measures of the Customs Union, Followed by Council Decision 
No. 880 of 9 December 2011 and Technical Regulation CU TR 
021/2011 on Food Safety  Decision No.  455 of 
18 November 2010  
Council  On the Technical Regulations of the Custom s Union on the Safety 
of Milk and Dairy Products (CU TR 033/2013), as amended on 
20 December 2017, effective as from 15 July 2018  Decision No.  67 of 
9 October 2013  
Council  On the Technical Regulations of the Customs Union on the Safety 
of Meat and Meat Products  Decision No.  68 of 
9 October 2013  
Council  On the Technical Regulations of the Customs Union on the Safety 
of Fish and Fish Products  Decision No.  162 of 
18 October 2016  
College  On the Adoption of the Technical Regulations of the Customs Unio n 
on Food Products in Terms of Their Labelling  Decision No.  881 of 
9 December 2011  
Source:  Information provided by the authorities.  
  WT/TPR/S/ 411/Rev.1  • Kyrgyz Republic  
 
- 173 - 
 
  Table A3.  5 SPS legislation adopted at the national level, 2013 -18 February 2020  
Instrument  Title Date 
Law No.  175 On Veterinary  30 December 2014  
Law No.  91 On Animal Identification of Animals and Animal 
Products  6 June 2013  
Government Resolution 
No. 377 On Approval of Priority Veterinary and Sanitary 
Requirements for the Prevention of Animal Diseases  18 June 2015  
Government Resolution 
No. 555 On Approval of the Rules for Veterinary Zoning of the 
Territory of the Kyrgyz Republic for Animal Infectious 
Diseases  3 August 2015  
Government Resolution 
No. 235 On Approval of the Procedure for Exercising State 
Control (Supervision) of Goods Subject to Sanitary 
Epidemiological and Veterinary Control 
(Supervision), in Respect of Which the Republic of 
Kazakhstan Applies Requirements Different from the 
Requirements of the Eurasian Econ omic Union, and 
Products Made from Them  10 May 2016  
Government Resolution 
No. 528 On Approval of Acts in the Field of Veterinary 
Medicine  24 August 2017  
Government Resolution 
No. 583 On Approval of the List of Regulated Products 
(Goods, Materials and Com modities Under 
Quarantine) Subject to Quarantine and Phytosanitary 
Control (Surveillance) at the Customs Boundary of 
the Customs Union and in the Customs Territory of 
the Customs Union  7 October 2014  
Government Resolution 
No. 376 On Approval of Quarantine Phytosanitary Laws of the 
Kyrgyz Republic and Regulations on the Procedure 
for Issue of Phytosanitary, Re -Export Phytosanitary 
and Quarantine Certificates  18 June 2015  
Government Resolution 
No. 500 On Approval of the Regulation on Subordinate U nits 
of the State Inspection on Veterinary and 
Phytosanitary Safety Under the Government of the 
Kyrgyz Republic  18 August 2017  
Government Resolution 
No. 901 On Regulations on Conformity Assessment of 
Facilities and Safety Measures in the Field of 
Veterina ry Medicine, Plant Quarantine, Epidemiology, 
Sanitation and Ecology in the Kyrgyz Republic  30 December 2006  
Government Resolution 
No. 173 Regarding the Approval of the Technical Regulation 
on Safety of Medical and Veterinary Products Meant 
for Laboratory Diagnostics in Artificial Conditions (In -
Vitro)  5 April 2013  
Government Resolution 
No. 43 On Approval of the Rules on the Classification 
System of Hazardous Chemicals/Mixtures and 
Requirements for Elements of Hazard Information: 
Labelling and Safety Data Sheet  9 February 2015  
Government Resolution 
No. 17 On the Regulation of Private Veterinary Practice in 
the Kyrgyz Republic  15 January 2018  
Government Resolution 
No. 673 Program of the Government of the Kyrgyz Republic 
"Development of the Veterinary Service of the 
Kyrgyz Republic for 2018 -2023"  17 October 2017  
Government Resolution 
No. 556 About Measures to Streamline the Functioning of 
Checkpoints Through the Frontier of the Kyrgyz 
Republic, Intended for International Automobile, Air 
and Rail Service, and Internal Stationary Posts on 
the Roads of the Kyrgyz Republic  19 November 2007  
Government Resolution 
No. 268 On Approval of the Technical Regulation on the 
Safety of Feed and Feed Additives (as amended by 
Government Decisions No.  15 of 2 0 January 2015 
and No.  184 of 29 March 2017)  22 May 2014  
Government Resolution 
No. 260 On the Authorized State Bodies for the 
Implementation of State Control (Supervision) over 
Compliance with the Technical Regulations of the 
Customs Union (as amended by Government Decree 
No. 780 of 18  November 2015)  27 April 2015  
Government Resolution 
No. 184 About the Action Plan for the Application of Technical 
Regulations of the Customs Union in the Kyrgyz 
Republic  29 March 2017  WT/TPR/S /411/Rev.1  • Kyrgyz Republic  
 
- 174 - 
 
  Instrument  Title Date 
Government Resolution 
No. 694 On Approval of the Rules of Animal Identification (as 
amended by Government Decree No.  703 of 
6 August 2018)  5 December 2014  
Government Decree 
No. 444 On Approval of the Technical Regulation on the 
Safety of Veterinary Medicinal Products (as amended 
by Gover nment Decree of the Russian Federation 
No. 15 of 20 January 2015)  5 August 2013  
Government Resolution 
No. 93 On Ensuring Food Safety  18 February 2020  
Source:  Information provided by the authorities.  
 
__________