WT/TPR/M/411/Add.1  
22 July 2021  
(21-5773) Page: 1/69 
Trade Policy Review Body  
18 and 20 May 2021  Original: English/anglais/inglés  
 
  
TRADE POLICY REVIEW  
THE KYRGYZ REPUBLIC  
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mrs Athaliah Lesiba MOLOKOMME (Botswana)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  the Kyrgyz  Republic .1 
 
 
Organe d'examen des politiques commerciales  
18 et 20 mai 2021  
EXAMEN DES POLITIQUES COMMERCIALES  
REPUBLIQUE KIRGHIZE  
COMPTE RENDU DE LA REUNION  
Addendum  
Présidente  : S.E.  Mme Athaliah Lesiba MOLOKOMME (Botswana)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Memb ers de l'OMC, leurs questions additionnelles, et les réponses  fournies par  la République 
kirghize .1 
 
 
Órgano de Examen de las Políticas Comerciales  
18 y 20 de mayo de 2021  
EXAMEN DE LAS POLÍTICAS COMERCIALES  
REPÚBLICA KIRGUISA  
ACTA DE LA REUNIÓN  
Addendum  
Presidenta: Excma.  Sra. Athaliah Lesiba MOLOKOMME (Botswana)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  la 
República Kirguisa .1 
 
 
 
 
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/4 11/Add.1  
 
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   Contents   
ICELAND  ................................ ................................ ................................ .........................  3 
SINGAPORE  ................................ ................................ ................................ .....................  4 
CHILE  ................................ ................................ ................................ ..............................  6 
CANADA  ................................ ................................ ................................ ..........................  7 
UKRAINE  ................................ ................................ ................................ .......................  19 
CHINA  ................................ ................................ ................................ ...........................  29 
KINGDOM OF SAUDI ARABIA  ................................ ................................ ........................  41 
EUROPEAN UNION  ................................ ................................ ................................ ........  42 
THE UNITED STATES  ................................ ................................ ................................ ..... 51 
TURKEY  ................................ ................................ ................................ .........................  63 
THAILAND  ................................ ................................ ................................ .....................  65 
 
 
 
  WT/TPR/M/4 11/Add.1  
 
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  ICELAND  
Question 1. What is the participation of women in the economy of the Kyrgyz  Republic ?  
Answer . In the Kyrgyz  Republic , the level of female entrepreneurship is at a fairly stable level. The 
share of women who want to do business is constantly growing.  
According to the statistical agency, in the Kyrgyz  Republic , women dominate in the informal labo ur 
market, in certain service an d trade sectors, and in self -employment based on microcredit, which 
automatically cuts off many women from their respective rights to social and pension security, as 
well as the rights to services in health care.  
Data on small/medium and large businesses also show a low representation of women among 
managers of large enterprises – 575 women and 1 ,290 men, medium enterprises – 1,670 women 
and 2 ,374 men, small enterprises – 6,810 women and 15 ,708 men. 
Currently, the share of women among managers of small and medium -sized enterprises registered 
as legal entities is 30% for small enterprises and 43.5% for medium -sized enterprises. The share of 
women among individual entrepreneurs is 35%, among heads of peasant farms – 19.6%.  
Meanwhile, due to traditions and mentality that prescribe certain restrictions to women, the gender 
gap in the economic sphere is increasing in the country, which has led to a decrease in the average 
wage of women. In order to mitigate the restrictio ns on collateral, the Guarantee Fund OJSC was 
created, which at the end of 2019 provided 946 guarantees in the amount of 921 million soms, of 
which 55% in quantitative and 26% in total terms was allocated to women entrepreneurs.  
 
Question 2. Have specific barriers that limit women 's participation in trade been identified?   
 
Answer . Low financial and legal literacy and a lack of business skills, combined with low self -esteem, 
as well as the lack of a comprehensive support system for the development of women's 
entrepreneurship, hinder the quantitative and qualitative growth of women's  entrepreneurship and 
interaction with government agencies and financial institutions.  
The key problems in the development of women's entrepreneurship in Kyrgyz  Republic  are the lack 
of a unified definition of women's entrepreneurship; the lack of gender -disaggregated data on the 
assessment of the contribution of women's entrepreneurship to the economy; underdeveloped 
business infrastructure, lack of incentives and government support measures for market access and 
entry into value chains.  
 
Question 3.  Has t he Kyrgyz  Republic  implemented any specific measures to encourage women 's 
participation in trade and promote women 's entrepreneurship, or are such measures being 
developed?  
 
Answer . Currently, the authorized body in the field of economics, together with th e business 
community, has developed a draft Government Program me for the Development of Women's 
Entrepreneurship for 2021 -2025, which is undergoing the approval procedure with interested 
government agencies. If this program me is adopted, the economic right s and opportunities of 
women will improve.  
 
Question 4. Are the effects of trade policy on women and men measured and monitored, and if so 
how?  
 
Answer . There is currently no assessment and monitoring of the impact of trade policies on women 
and men.    
 
 WT/TPR/M/4 11/Add.1  
 
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SINGAPORE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
3.1.3.1 Applied rates  
Page 56 (Para 3.57)  
Question 1. The WTO Secretariat Report notes that the Eurasian Economic Council (EEC) 
"designates a list of sensitive good of approximately 5,000 tariff lines which the EEC has noted 
competition on the EAEU domestic market is the strongest, and therefore support measures have 
an important impact ". Could the Kyrgyz  Republic  provide any framework on how the EEC determines 
if a product should be designated on the sensitive list?  
 
3.3.5 State trading, state -owned enterprises, and privati zation  
Page 96 (Para 3.165)  
Question 2. The WTO Secretariat Report notes that the Kyrgyz  Republic  has " 104 state -owned 
enterprises (SOEs) and 52 joint stock enterprises in which the State was a shareholder " as at 
1/06/2020. Is there any sectoral breakdown for these SOEs and joint stock enterprises?   
 
Answer : 
In fact, there is a sectoral (sectoral) breakdown of SOEs and JSEs. However, the legislation does not 
provide for a clear delineation of the competences of the state governing body or the authorized 
body in the field of state property management in relation to the activities of state -owned 
enterprises, depending on the industry.  
The authorized body in the field of management of state property is the State Property Mana gement 
Fund under the Ministry of Economy and Finance of the Kyrgyz  Republic , which exercises the rights 
of a shareholder / participant in business entities with state share.  
The state governing body is the body that carries out general management, coordin ation and 
strategic planning of the activities of a state enterprise on supervised industry issues.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
4.8.1 Business environnement  
Page 24 -25 (Para 4.123)  
Question 3. The Government Report states that the Kyrgyz  Republic  intends to further "protect 
private property rights and the safety of investors ' funds invested in the economy ". Could the 
Kyrgyz  Republic  further elaborate on the policies, regulations or mechanisms that will be 
implemented for this?  
 
Answer  
The Law of the Kyrgyz  Republic  "On Amendments to Certain Legislative Acts of the Kyrgyz  Republic  
on Investment Support ", which entered into force on 20 January  2021, provides for the following 
rules concerning investment issues:  
1. The concept of "investment lots " is introduced, which means a set of solutions provided to the 
investor, taking into account the specifics of the initiated projects, which contain an investment offer, 
project infrastructure, assets, analysis of the raw material base and sa les markets, the provision of 
permits and preferences;  
2. The transfer of land has been simplified by transferring the right of transfer to the district state 
administration:  
 – Pastures, hayfields and types of non -agricultural land of the category of agricultural land in other 
types or in other categories of land, except for the transfer of land for the construction of housing 
and agricultural land;  
-All categories of land and types of land allocated for cemeteries, drinking water supply facilities, 
wastewater treatment plants, landfills, and other categories of land;  
- The transfer of agricultural land to another category is allowed in cases related to the formation of 
an investment lot included in the register of the authorized body for the promotion of investments;  
3. The threshold amount of investment in an investment project has been reduced from 
USD 50 million to US D 10 million, which allows for the conclusion of an Investment Agreement 
through direct negotiations between the Government of the Kyrg yz Republic  and the investor.  
4. Amendments have been made to the legislation on PPP:  
- PPP projects are divided into large and small projects;  WT/TPR/M/4 11/Add.1  
 
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  - It is possible to hold a tender if there is one application for participation in the qualification selection 
and/or if there is at least one tender offer at the stage of selecting the winner of the tender for large 
projects.  
- Simplified procedures for initiating and preparing PPP projects;  
-Taking into account the situation with the global coronavirus pandemic and the need to implement 
investment projects to urgently solve economic problems as a result of this problem, it is possible 
to determine a private partner on the basis of direct negotiations in the event of a state of emergency 
or an emergency s ituation on the territory of the republic;  
- For the purpose of high -quality implementation of projects, it is possible to receive comments for 
participation in the tender from the bidders to make changes to the requests for qualifications and 
proposals, a s well as to the draft PPP agreement.  
 
3.1.3.1 Applied rates  
Page 56 (Para 3.57)  
Question 1. The WTO Secretariat Report notes that the Eurasian Economic Council (EEC) 
"designates a list of sensitive good of approximately 5,000 tariff lines which the EEC has noted 
competition on the EAEU domestic market is the strongest, and therefore support measures have 
an important impact ". Could the Kyrgyz  Republic  provide any framework on how the EEC determines 
if a product should be designated on the sensitive list?   
 
Answer:  
The EAEU law defines a list of goods that are sensitive for the internal market of the EAEU. This list 
of goods is formed based on the criteria for the sufficiency of the volume s necessary to ensure food 
security, as well as the protection of th e environment, animals and plants. The list is adopted on the 
basis of consensus reached by the heads of the EAEU Member States. The main criterion is the 
presence of consensus.  
 
 
  WT/TPR/M/4 11/Add.1  
 
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  CHILE  
WT/TPR/G/411 – Report by the Kyrgyz  Republic  
4 TRADE POLICY  
4.5 Investment Policy  
4.80, p. 20. The Kyrgyz  Republic  created fairly liberal investment legislation based on the principles 
of the most -favored  nation treatment. Investment policy in the Kyrgyz  Republic  is aimed at 
improving the investment climate and stimula ting the attraction of domestic and foreign investments 
by providing a fair, equal legal regime to investors and guaranteeing the protection of their 
investments in the economy of the Kyrgyz  Republic . 
 
Question 1: Paragraph 4.80 mentions that the investmen t legislation "is aimed at improving the 
investment climate and stimulating the attraction of domestic and foreign investments by providing 
a fair, equal legal regime to investors and guaranteeing the protection of their investments in the 
economy…" In thi s respect, Chile would be grateful if the Kyrgyz  Republic  could share information 
on the main characters  of the applicable regime in the foreign investment. In addition, Chile would 
like to know which is the applicable legislation, together with the specif ic rules which apply to foreign 
companies investing in the Fishery Sector (including the aquaculture).   
 
Answer:  The Law "On Investments in the Kyrgyz Republic" No.  66 (with additions and amendments 
until 26 December  2020 No.  12) provides for the following conditions for foreign companies' 
investment activity:  
1. Foreign investors are provided with the national regime of economic activity applied to legal 
entities and individuals of the Kyrgyz  Republic ; 
2. Foreign investors, their representatives and foreign employees who are in the Kyrgyz  Republic  in 
connection with investment activities have the right to free movement (with the exception of special 
territories);  
3. The state does not interfere with the economic activities, rights and legally recognized interests 
of investors, except in cases provided by law;  
4. Investors who invest in priority sectors of the economy and social sphere, as well as in certain 
territories of the republic, may be provided with investment benefits in acc ordance with state 
development programs (projects);  
5. Investments may be made in any form in objects and activities not prohibited by the legislation 
of the Kyrgyz  Republic , including licensed activities;  
6. Guarantees of export or repatriation of investm ents, property and information outside the 
Kyrgyz  Republic ; 
7. Guarantees of protection against expropriation of investments and compensation of losses to 
investors. In accordance with paragraph 5 of Article  6 of the above -mentioned Law of the 
Kyrgyz  Repub lic, investors whose investments in the Kyrgyz  Republic  were damaged as a result of 
war or other armed conflict, revolution, state of emergency, civil clashes or other similar 
circumstances are granted legal status and conditions that are no less favo urable than those applied 
to legal entities and individuals.  
According to Article  4 of the Law "On Investments in the Kyrgyz Republic", foreign companies can 
invest in the fishing sector (including aquaculture) and the provisions provided for by the above Law 
apply accordingly.  
 
Question 2: In the case of elaborated products in the Kyrgyz  Republic  by companies with foreign 
investment and which are exported to the Euro -Asia Economy, Chile would be grateful if the 
Kyrgyz  Republic could please indicate which custom s tariffs regime would apply.  
 
Answer:  The country of origin of goods produced by foreign companies on the territory of the 
Kyrgyz  Republic  will be the Kyrgyz  Republic ; according to the Treaty on the EAEU, a duty -free trade 
regime will operate for these products, i.e. the export customs tariff will be "0".  
  WT/TPR/M/4 11/Add.1  
 
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  CANADA  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
SECTION 2 TRADE AND INVESTMENT REGIMES: 2.2 Trade Policy Formulation and 
Objectives  
Page 31 (Para 2.23)  
The Secretariat Report states th at "Similarly, the Development Program me 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 active 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 improve 
quality standards to meet internat ional 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 border, 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 a nd medium -sized businesses in preparing business plans and 
promoting products to foreign 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; (viii) expand the markets for attracting capital, and intensify its 
work with international organizations to implement infrastructure projects in key export -oriented 
sectors of the economy, such as agriculture, light indust ry, and tourism ". 
 
Question:  
1.Do any of these objectives include programs and/or initiatives to support women -owned 
businesses and their participation in the export of goods and services to foreign markets?  
 
Answer : The legislation of the Kyrgyz  Republic  in the field of entrepreneurship development does 
not make a clear gender distinction, therefore, when assessing and analy zing the state of small and 
medium -sized businesses, a gender approach at the legislative and legal levels is not included as a 
legal concept, which, regardless of gender, implies equality of conditions for all entrepreneurs. The 
Government of the Kyrgyz  Republic  is considering the issue that 40% of the financial resources of 
the Guarantee Fund OJSC should be provided specifically to wo men entrepreneurs.  
 
SECTION 3 TRADE POLICIES AND PRACTICES BY MEASURE: 3.1 Measures Directly 
Affecting Imports, 3.1.3 Tariffs, 3.1.3.1 Applied rates  
Page 56 (Para 3.56)  
The Secretariat Report indicates that "… 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…"  
 
Question:  
1.Could the Kyrgyz  Republic  elaborate on the reasoning behind the decrease in duty -free tariff lines 
since the previous Review  period?  
 
Answer : Upon joining the EAEU (2015), the Kyrgyz  Republic , in accordance with the Treaty, applies 
the EAEU Unified Customs Tariff, which is higher than the previously applied customs tariff of the 
Kyrgyz  Republic . Thus, in 2018, the share of duty -free tariffs in the EEU CCT was 15%, and the 
number of non -ad valorem  tariff lines was 14%.  
 
SECTION 3 TRADE POLICIES AND PRACTICES BY MEASURE: 3.2 Measures Directly 
Affecting Exports, 3.2.3.1 Export Control  
Page 81 (Para 3.115)  
"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. 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, WT/TPR/M/4 11/Add.1  
 
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  an end -user certificate containing a n obligation of the authorized body of a foreign state is also 
necessary; 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 fo r 
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 m ilitary -technical cooperation. Currently, a draft 
law is being developed that includes military goods ". 
 
Question:  
1. Could the Kyrgyz  Republic  clarify paragraph 3.115, in particular what has replaced the "temporary 
provisions" for control of weapons and m ilitary goods referred to therein, as they expired on 
31 December  2020?  
 
Answer : In order to take appropriate measures to regulate and control the circulation of military 
goods, in accordance with the Law of the Kyrgyz  Republic  "On the licensing and authorization system 
in the Kyrgyz Republic" in 2017, the "Temporary Regulation on the  Procedure for Licensing the 
Import, Export of Arms and Military Equipment, as well as other military products" was adopted.  
The duration of the Temporary Regulation is currently extended by the Resolution of the Government 
of the Kyrgyz  Republic  "On Amend ments to the Resolution of the Government of the Kyrgyz 
Republic" On Approval of the Temporary Regulation on the Procedure for Licensing the Import, 
Export of Arms and Military Equipment, and Other Military Products "dated 3 February  2017 No.  67" 
Dated 16 December  2020 No.  613, until 31 December  2021.  
 
 
SECTION 3 TRADE POLICIES AND PRACTICES BY MEASURES: 3.2 Measures Directly 
Affecting Exports, 3.2.5 Export finance, insurance and guarantees  
Page 84 (Para 3.123)  
The Secretariat Report states that "the OJSC G F's main aim is to provide access to financing for 
SMEs in case of insufficient collateral. In 2013, the Law on Guarantee Funds in the Kyrgyz  Republic  
was adopted, which provided the legal framework for the GF. Thus, it was originally established in 
2016 w ith KGS 72 million in government funding. Since that time, other funding has been provided 
by the ADB. The GF's main roles is in providing guarantees, mainly to SMEs, but also to exporters. 
According to the authorities, there is no separate guarantee categ ory for exports, as the Fund 
provides universal products ".  
 
Questions:  
1. Does the Kyrgyz  Republic  collect sex -disaggregated data on those companies which receive 
funding as part of the OJSC Guarantee Fund?  
 
2. If so, can the Kyrgyz  Republic  provide data on the percentage of women -owned small and 
medium -sized enterprises that have received funding?   
 
Answer : At the end of 2019, the Guarantee Fund OJSC provided 946 guarantees in the amount of 
921 million KGS soms, of which 55% in quantitative and 26% in total terms were allocated to women 
entrepreneurs.  
 
SECTION 3: TRADE POLICIES AND PRACTICES BY MEASURE: 3.3 Measures Affecting 
Production and Trade, 3.3.7.2 Main policy and legal developments during the review 
period  
Page 105 (Para 3.196)  
The Secretariat Report indicates that the Government adopted a State Program me for the 
Development of Intellectual Property for the Period of 2017 -2021, with the main purpose of creating 
"conditions for the functioning of the intellectual property market by 2021. The main priorities are: 
capacity building for the crea tion 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 the use of objects of intellectual property ".  
 
Question:  
1. With awareness that the COVID ‑19 pandemic may have interrupted regular workflow, can the 
Kyrgyz  Republic  provide any additional information on the achievements of this State Program to 
date?  WT/TPR/M/4 11/Add.1  
 
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  Answer : In 2019, State Service of Intellectual Property And Innovation Under The  Government Of 
The Kyrgyz  Republic (Kyrgyzpatent) began to modernize the electronic filing system for registration 
of all intellectual property objects. The Office has completely switched to electronic document 
management, the process of digitizing the act ive patent fund of the State Patent and Technical 
Library under Kyrgyzpatent is nearing completion. All 10 public services provided by Kyrgyzpatent 
are connected to the Tunduk interdepartmental electronic interaction system and are available in 
electronic format.  
The State Patent and Technical Library under Kyrgyzpatent has introduced a program for the 
automation of library processes "Yordam".  
In 2020, Kyrgyzpatent  introduced an automated system "Hypergraph", which is a software package 
for processing information about authors and copyright holders to collect and distribute royalties, 
interact with copyright holders and manage catalogs.  
One of the most important ach ievements of Kyrgyzpatent during the pandemic was the 
implementation of a large -scale project to create the first State Innovation Cent re aimed at 
developing infrastructure for creating intellectual property objects.  
The innovation cent re will include a mu ltifunctional conference hall with a Coworking cent re, a 
production and innovation laboratory – FabLab, and a children's innovation and technical platform – 
Youth iLab.  
Since November 2020, Kyrgyzpatent has been implementing a project for introducing the p ractice 
of work of business incubators at higher educational institutions of the republic.  
 
 
SECTION 4 TRADE POLICIES BY SECTOR: 4.1 Agriculture, Forestry, and Fisheries, 4.1.1.1 
Trade measures, 4.1.1.1.1 Imports  
Page 112 (Para 4.9)  
The Secretariat Report states that "The tariff increases are particularly marked for animals and 
animal products, sugar and confectionery, and to some extent also for dairy products (Chart 4.2). 
In these product categories, the average CET is also well above rates at which the K yrgyz Republic 
bound its import duties at the time of accession to the WTO ". 
 
Question:  
1. As noted in the secretariat report, the average CET (common external tariffs) of the Eurasian 
Economic Union exceed the Kyrgyz  Republic 's bound import tariffs at the WTO. Does the 
Kyrgyz  Republic  have a plan to balance the demands of the Eurasian Economic Union and its WTO 
tariff commitments?  
 
Answer : Livestock products, sugar and confectionery, dairy products are sensitive categories of 
goods within the EAEU. The issue of equalizing tariff obligations of the Kyrgyz  Republic  will be 
considered within the framework of the current negotiations between the Kyrgyz  Republic  and the 
WTO members on changing tariff obligations in accordance with Article  XXVIII: 5 of the G eneral 
Agreement on Tariffs and Trade (GATT) . 
 
SECTION 4 TRADE POLICY: 4.8 Competition Policy and Business Environment  
Page 23 (Para 4.107)  
The Government Report refers to the Law of the Kyrgyz  Republic  on 'Natural and Permitted 
Monopolies in the Kyrgyz Republic', in which state regulation of permitted monopolies (dominating 
in the market) was cancelled, and interference in business activities by the State was limited.  
Questions:  
1. Could the Kyrgyz  Republic clarify what is meant by "cancelled" and how the new law impact the 
activities and authorities of state permitted or designated monopolies in the domestic market? Are 
these regulations "cancelled" across all economic sectors?  
Answer : All economic enti ties classified as a permitted monopoly in all sectors of the economy were 
removed from regulation. The new Law "On Natural Monopolies in the Kyrgyz Republic" affects the 
activities of entities classified as natural monopolies, which include: - transportat ion, distribution, 
storage and sale of natural gas; - production, distribution, sale, transmission of electrical and 
thermal energy; - services for the operational dispatch management of the national energy system; 
- centralized water supply and sewerage; - telecommunication and postal services of general use: - 
railroad transportation; - air navigation support of flights; - ground handling of domestic air 
transportation.  WT/TPR/M/4 11/Add.1  
 
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  2. Can the Kyrgyz  Republic  explain what is meant by limited interference?  
Answer : Earlier, the activities of entities, permitted (economic entities occupying a dominant 
position in the commodity market) monopolies were regulated by the antimonopoly authority in 
accordance with the Law "On natural and permitted monopolies in the Kyrgyz Repub lic" (hereinafter 
referred to as the Law), that is, prices for goods and services were set, as well as control was carried 
out by the antimonopoly authority in accordance with the requirements of Article  5 of the Law.  
3. Do changes also promote competition  by ensuring that monopolies operate in accordance with 
commercial considerations when selling/purchasing goods and services?  
Answer : Even earlier, the regulation was carried out not to the detriment of commercial interests, 
therefore, it did not affect th e development of competition.  
 
SECRETARIAT REPORT  
SECTION 4: TRADE POLICIES BY SECTOR: 4.4. SERVICES, 4.4.1 FINANCIAL SERVICES  
Page 125 (Para 4.60)  
"Appendix I has generally no restrictions except 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 
central depository) in respect of paragraphs 6 and/or 1 1 of Annex 17 on national treatment or 
establishment ". 
 
Questions:  
1. In your WTO schedule there is a reference to a 49% foreign equity cap in the insurance sector, 
beyond this are there any foreign equity caps or restrictions in the banking, microcredit, credit union, 
or securities sectors?  
 
2. If so, what are these caps or restrictions?  
 
Answer : In accordance with the legislation of the Kyrgyz  Republic  in the field of securities market, 
there are no restrictions on foreign capital, except for the provisio n in the Law of the Kyrgyz  Republic  
"On the special status of the Toktogul hydroelectric power Station cascade and the national high -
voltage power transmission line".  
According to articles 2 and 3 of this Law, joint  stock companies "Electric Stations" and "National 
Electric Network of Kyrgyz  Republic " are formed with state ownership in the amount of 93.72 % of 
shares.  
The property of this joint  stock company is not subject to any types of alienation, including indirect 
ones.  
 
GOVERNMENT REPORT  
SECTION 4 TRADE POLICY: 4.5 Investment Policy  
Page 20 (Para 4.80)  
The Government Report describes the Kyrgyz  Republic 's creation of investment legislation based on 
most-favoured nation treatment, aiming to improve the investment climate, and stimulate domestic 
and foreign investments by providing investor protections.  
 
Questions:  
2. What legislative and administrative mechanisms are in place to guarantee "protection of their 
investments"?   
 
Answer : The Law "On Investments in the Kyrgyz Republic" No.  66 (with additio ns and amendments 
until 26 December  2020 No.  12) provides for the following conditions for foreign companies:  
1. Foreign investors are provided with the national regime of economic activity applied to legal 
entities and individuals of the Kyrgyz  Republic ; 
2. Foreign investors, their representatives and foreign employees who are in the Kyrgyz  Republic  in 
connection with investment activities have the right to free movement (with the exception of special 
territories);  
3. The state does not interfere with the economic activities, rights and legally recognized interests 
of investors, except in cases provided for by law;  WT/TPR/M/4 11/Add.1  
 
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  4. Investors who invest in priority sectors of the economy and social sphere, as well as in certain 
territories of the republic, may be provided  with investment benefits in accordance with state 
development programs (projects);  
5. Investments may be made in any form in objects and activities not prohibited by the legislation 
of the Kyrgyz  Republic , including licensed activities;  
6. Guarantees of e xport or repatriation of investments, property and information outside the 
Kyrgyz  Republic ; 
7. Guarantees of protection against expropriation of investments and compensation of losses to 
investors. In accordance with paragraph 5 of Article  6 of the above -mentioned Law of the 
Kyrgyz  Republic , investors whose investments in the Kyrgyz  Republic  were damaged as a result of 
war or other armed conflict, revolution, state of emergency, civil clashes or other similar 
circumstances are granted legal status and condi tions that are no less favo urable  than those applied 
to legal entities and individuals.  
 
3. Does the Kyrgyz  Republic  have a foreign investment review mechanism/process in place? If so, 
could the Kyrgyz  Republic  share details as to the administrative requirements and process?  
 
Answer : There is no systematic review of foreign investment. Nevertheless, monitoring of indivi dual 
projects on foreign investment was carried out.  
 
SECRETARIAT REPORT  
SECTION 4 TRADE POLICIES BY SECTOR: 4.1 Agriculture, Forestry, and Fisheries, 4.1.1.2 
Domestic support  
Page 113 (Para 4.14)  
The Secretariat Report notes that "the National 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 administered 
under gove rnmental programmes since 2011. 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 ". 
 
Question:  
1. Could the Kyrgyz  Republic  provide the eligibility requirements of agricultural producers to 
receive these preferential loans? Since their implementation in 2011, what sectors have benefited 
from these programmes?  
 
Answer:  The Government of the Kyrgyz  Republic  is not able to meet a ll the requirements of 
agricultural producers and processors. Therefore, auctions are held when commercial banks are 
forced to find their own funds at commercial interest.  
Lending programs, including the "Financing of Agriculture" (FA -1 – FA-8) programs, w hich have been 
implemented since 2013, are aimed at supporting the "Crop Production", "Animal Husbandry" and 
"Processing  sectors ". During the implementation of the FA from 2013 to 2019, loans in the amount 
of about 5 billion KGS were issued for the Crop pr oduction sector, in the sector of "Animal Husbandry" 
– about 23.3 billion  KGS, in the "Processing" sector – about 6 billion KGS. 
 
GOVERNMENT REPORT  
SECTION 4 TRADE POLICY: 4.8.1 Business environment  
Page 24 (Para 4.123)  
The Government Report states that the "tax system is gradually shifting to performing a stimulating 
function, and unnecessary, interfering administrative barriers are systematically removed; 
introducing new financial instruments aimed at increasing access to financial sources of 
entrepreneurs, with the creation of a system of affordable credit, guaranteeing, and insurance; 
protecting private property rights and the safety of investors' funds invested in the economy ". 
 
Question:  
1.Could the Kyrgyz  Republic  please elaborate on which measures are being taken to shift the tax 
system to a stimulating function? Are there examples of interfering administrative barriers that have 
been removed?  
 
Answer : Measures are being taken to improve the tax legislation, which w ould stimulate the 
development of entrepreneurship and promote the exit of business "from the shadows ". To create WT/TPR/M/4 11/Add.1  
 
- 12 - 
 
  favourable  conditions for the development of entrepreneurship, we have established a working group 
to develop a new version of the Tax Code of  the Kyrgyz  Republic . The concept of the draft new 
version of the Tax Code of the Kyrgyz  Republic  provides:  
1. simplification of the mechanism of compensation and refund of the amount of excess VAT;  
2. implementation of the service approach for servicing taxpayers;  
3. development of a mechanism providing for alternative approaches to the consideration of tax 
disputes;  
4. review of the procedure for conducting on -site scheduled inspections, if the taxpayer meets the 
criteria prescribed in the Tax Code of the Kyrgyz  Republic  (Rating of taxpayers);  
5. simplification of tax administration procedures;  
6. elimination of conflicts in tax legislation and development of a clear mechanism aimed at resolving 
controversial issues in favo ur of the taxpayer.  
As a result of the implementation of the proposed measures to improve the tax legislation, the 
following expected development prospects are highlighted:  
For business:  
• simplification the execution of tax obligations;  
• minimization of capital and operating cost s to meet the tax obligations of all participants;  
• simplification and automate reporting and contact with tax officials;  
• elimination of unfair competition and protection of domestic producers;  
• the possibility of increasing the export of products to third countries and the EAEU member 
states.  
For the end user:  
• guarantee of authenticity and quality of goods;  
• an adequate price in a transparent market;  
• simplification of mechanisms for obtaining tax deductions.  
For the state:  
• increasing tax collection;  
• ensuring the traceability of goods throughout the supply chain;  
• the ability to detect illegal trade;  
• creating a favo urable  investment climate;  
strengthening public confidence in government agencies;  
improving the efficiency and quality of socio -economic deci sion-making.  
 
Page 35 (para . 2.40)  
The Secretariat Report refers to a 2016 UNCTAD report, which among other recommendations, 
identifies a priority area for the Kyrgyz  Republic  in enacting policies for sustainable mining and 
linkage development.  
 
Question  
1. Can the Republic  provide further information on its sustainable mining policies?  
Answer:  Currently, in order to implement the Decree of the President of the Kyrgyz  Republic  "On 
Issues of reforming the mining industry of the Kyrgyz Republic" dated 29 January 2021, No.  5, a 
draft Mining Code of the Kyrgyz  Republic  is being developed, aimed at creating an integral system 
of legislation in the field of subs oil use. The Decree of the President of the Kyrgyz  Republic  dated 
29 January  2021 "On the protection of property and support for entrepreneurs and Investors" 
provides for the development of a draft Mining Code of the Kyrgyz  Republic  aimed at creating an 
integral system of legislation in the field of subsoil use in order to provide constitutiona l guarantees 
for the protection of property, stimulate sustainable economic growth, exclude unjustified state 
interference in the economic activities of business entities, as well as increase investor confidence, 
create a favo urable  investment climate and business environment, which provides for:  
- development of subs oil areas of national significance exclusively by a national mining company 
with 100% state participation in the authorized capital, with the exception of enterprises that have 
a licen ce and de velop sub soil areas of national significance at the time of adoption of the Mining 
Code of the Kyrgyz  Republic ; 
- the state share in the development of mineral deposits that are not included in the register of 
subsoil areas of national significance; condit ions for the acquisition of the state share.  
A draft law has been developed and approved, which provides for the introduction of a provision for 
granting the right to use mineral resources on the basis of a decision of the Government of the 
Kyrgyz  Republic  on the basis of an appeal from economic entities and state -owned enterprises with 
a 100% state share. After the approval of the draft law, a by  law will be developed that provides for 
the procedure and mechanisms for implementing such a norm.  
 WT/TPR/M/4 11/Add.1  
 
- 13 - 
 
  SECTION 4 TRADE POLICIES BY SECTOR: 4.1 Agriculture, Forestry, and Fisheries, 4.1.1.2 
Domestic support  
Page 113 (Para 4.14)  
The Secretariat Report notes that "the National 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 administered 
under governmental programmes since 2011. According to the authorities, approximate ly 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 ". 
 
Question:  
1. Could the Kyrgyz  Republic  provide the eligibility requirements of agricultural producers to receive 
these preferential loans? Since their implementation in 2011, what sectors have benefited from these 
programmes?  
Answer:  On 29 April 2021, the President of the Kyrgyz  Republic  signe d the Law adopted by the 
Jogorku Kenesh of the Kyrgyz  Republic  "On Amendments to the Code of the Kyrgyz Republic on 
Violations", according to which, the implementation by a foreign carrier, with the exception of 
carriers of the member States of the Eurasia n Economic Union, of road transport between points 
located on the territory of the Kyrgyz  Republic , as well as non -compliance by carriers of the member 
States of the Eurasian Economic Union with the conditions for the implementation of road transport 
of goods between points, located on the territory of the Kyrgyz  Republic -entails the imposition of a 
fine of category 8.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
SECTION 4 TRADE POLICY: 4.5 Investment Policy  
Page 20 (Para 4.77)  
The Kyrgyz  Republic  notes: "The highest priority economic activities for investment are 
manufacturing; professional, scientific, and technical activities; mining; construction; financial 
intermediation and insurance; and information and communication ". 
Questions:  
1. Could th e Kyrgyz  Republic  please explain whether the Government of the Kyrgyz  Republic  plans 
to incentivi ze investment in these sectors, and if so how?  
Answer:  Resolution of the Government of the Kyrgyz  Republic  No. 502 of 27/09/2019  approved the 
Strategy for Sust ainable Industrial Development of the Kyrgyz  Republic  for 2019 -2023 and a detailed 
Action Plan for its implementation, which defines measures and actions by type of economic activity.  
2. Noting the January Presidential Executive Order on Mining Reform, whi ch states that future 
development of subsoil areas of national importance will be carried out exclusively by a national 
mining company with 100% state participation in the share capital, could the Kyrgyz  Republic  please 
elaborate on how this would be carri ed out in practice?  
Answer:  Currently, a draft law has been developed and approved, which provides for the 
introduction of a provision for granting the right to use mineral resources on the basis of a decision 
of the Government of the Kyrgyz  Republic  on th e basis of an appeal from economic entities and 
state-owned enterprises with a 100% state share. After the approval of the draft law, a by  law will 
be developed that provides for the procedure and mechanisms for implementing such a norm.  
 
Page 31 (Para 2.2 3) 
The Secretariat Report states that "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 Governmen t 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 active 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 improve 
quality standards to meet international standards; (iv)  adopt measures to effectively use the WT/TPR/M/4 11/Add.1  
 
- 14 - 
 
  European  Union 's Generalized System of Preferences Plus (GSP+) scheme; (v)  complete the work 
on the modernization and updating of checkpoin ts at on the border, 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 
promotin g products to foreign 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; (viii) expand the markets for attr acting capital, 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 ". 
 
2. Is the Kyrgyz  Republic  able to provide additional information on some of the successes to date of 
the Project Preparation Fund, in aiding small and medium -sized businesses?  
 
Answer: The Ministry of Economy of the Kyrgyz  Republic  established a Council for the formation of 
a list of priority investment projects, which had the status of a Supervisory body. The Council 
provided services to assist in the preparation of high -quality business and investment plans for 
obtaining funding from financial institutions.  
Measures were develope d and Criteria for selecting priority industries and business projects were 
approved, as well as an Application Form for forming a list of potential investment projects to receive 
strategic and technical support in the preparation of feasibility studies (b usiness plans).  
The first business projects were selected to receive technical assistance from the UNDP project 
"Capacity Building for Financing Sustainable Development in the CIS region". However, these 
projects have not yet been implemented.  
 
Page 35 (pa ra. 2.40)  
The Secretariat Report refers to a 2016 UNCTAD report, which among other recommendations, 
identifies a priority area for the Kyrgyz  Republic  in enacting policies for sustainable mining and 
linkage development.  
 
Question  
1. Could the Kyrgyz  Republic  elaborate on measures, if any, being put forward to follow UNCTAD 's 
recommendations to that effect?  
 
Answer : As part of the recommendations by UNCTAD, the Kyrgyz  Republic  joined the 
WTO Agreement  on Trade Facilitation (TFA) in 2016. The implement ation of the TFA will provide 
access to information using digital technologies, improve indicators at the border, including transit, 
simplify the release of goods for import and export, introduce "single window" mechanisms, 
introduce a risk management syst em for the customs procedure of "customs transit", etc. The Law 
of the Kyrgyz  Republic  "On Public -Private Partnership" of 22 July 2019 No.  95 was adopted, which 
defines policy measures that ensure the protection of private property rights and the security of 
investor 's funds invested in the economy of the Kyrgyz  Republic . The "P rivate Public Partnership  
Centre" under the Ministry of Economy of the Kyrgyz  Republic  was established, the main tasks of 
which are:  
- ensuring effective coordination of the activit ies and interaction of state executive bodies, local self -
government bodies, business entities, non -profit and research organizations on the preparation and 
implementation of PPP projects;  
- promotion of the formation of a single coordinated state policy i n the field of PPP;  
- development of recommendations and proposals on the implementation of policies and the 
application of PPP mechanisms;  
- solving complex and controversial issues in the field of PPP.  
 
Page 117 (Para 4.34)  
The Secretariat Report references Kyrgyz  Republic 's National Development Strategy 2018 -2040, 
which highlights the need for increased mining efficiency and introduction of modern technologies 
with minimal environmental impact.   
Question:  
1. Can the Kyrgyz  Republic  provide more information on its activities towards increasing efficiency 
and deploying such technologies?  
 
Answer:  Currently, in order to implement the Decree of the President of the Kyrgyz  Republic  "On 
Issues of reforming the mining industry of the Kyrgy z Republic" dated 29 January  2021, No.  5, a WT/TPR/M/4 11/Add.1  
 
- 15 - 
 
  draft Mining Code of the Kyrgyz  Republic  is being developed, aimed at creating an integral system 
of legislation in the field of subsoil  use. The development of the Mining Code of the Kyrgyz  Republic , 
aimed at cr eating an integral system of legislation in the field of subsoil  use, provides for:  
- development of subsoil  areas of national significance exclusively by a national mining company 
with 100% state participation in the authorized capital, with the exception  of enterprises that have 
a licen ce and develop subsoil  areas of national significance at the time of adoption of the Mining 
Code of the Kyrgyz  Republic;  
- the state share in the development of mineral deposits that are not included in the register of 
subsoil  areas of national  significance;  
- conditions for the acquisition of the state share.  
A draft law has been developed and approved, which provides for the introduction of a provision for 
granting the right to use mineral resources on the basis of a decision of the Government of the 
Kyrgyz  Republic  on the  grounds  of an appeal from economic entities and state -owned enterprises 
with a 100% state share. After the approval of the draft law, a by  law will be developed that provides 
for the procedure and me chanisms for implementing such a norm.  
 
Page 143 (Para 4.112)  
This paragraph notes that the Law on Transport and the Law on Road Transport apply to all 
individuals, legal entities, and commercial activities in the field of road transport, without 
discrimin ation based on nationality.  
Question:  
1. Recognizing that Section 2.4 (page 34 -37) of the Secretariat Report covers the Investment 
Regime and Policy, could the Kyrgyz  Republic  please confirm if there are any specific restrictions on 
foreign ownership or investment in domestic road transport carriers?  
 
Answer: No, it doesn't exist. According to the Law of the Kyrgyz  Republic  "On Investments in the 
Kyrgyz  Republic ", investments c an be made in any form in objects and types of activities that are 
not prohibited by the legislation of the Kyrgyz  Republic , including licensed types of activities. 
Investment in domestic road carriers is not included in the category of areas of activity p rohibited 
by law.  
 
Page 20 (Para 4.80)  
The Kyrgyz  Republic  explains that the Law On Investments in the Kyrgyz  Republic  No. 66 (with 
additions and amendments until 26 December  2020 No.  12) offers guarantees of protection against 
expropriation of investments  and compensation of losses to investors.  
 
Question:  
1. How will these guarantees be implemented with respect to the recent amendments to the Law on 
Joint Stock Companies and actions undertaken by the Government and Parliament of the 
Kyrgyz  Republic  during and following the extraordinary session of 17 May 2021 which significantly 
harm a foreign investment?  
 
Answer: The aforementioned Law of the Kyrgyz  Republic  "On Investments in the Kyrgyz Republic" 
No. 66 (with amendments and amendments dat ed 26 December  2020 No.  12), which provides for 
guarantees of protection against expropriation of investments and compensation for losses to 
investors, will be fully observed. In case of violation, investors can apply to the international 
arbitration court . 
 
Page 113 (Para 4.14)  
The Secretariat Report notes that "the National 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 administered 
under governmental program mes since 2011. 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 s ubsidy 
element of these loans totalled KGS 4.338 billion ". 
 WT/TPR/M/4 11/Add.1  
 
- 16 - 
 
  Question:  
1. Could the Kyrgyz  Republic  provide the eligibility requirements of agricultural producers to receive 
these preferential loans? Since their implementation in 2011, what sectors have ben efited from these 
programmes?  
 
Answer:  The Government of the Kyrgyz  Republic  is not able to meet all the requirements of 
agricultural producers and processors. Therefore, auctions are held when commercial banks are 
forced to find their own funds at commercial interest.  
Lending programs, including the "Financing of Agriculture" (F A-1 – FA-8) programs, which have been 
implemented since 2013, are aimed at supporting the "Crop Production", "Animal Husbandry" and 
"Processing"sectors. During the implementation of the F A from 2013 to 2019, loans in the amount 
of about 5 billion rubles wer e issued for the Crop production sector. Some, in the sector of "Animal 
Husbandry" - about 23.3 billion  KGS, in the "Processing" sector, about 6 billion KGS. 
 
Page 143 -144 (Paragraph 4.114)  
This paragraph states: "In general, 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 EAEU 
member States, in accordanc e with a programme of gradual liberalization of road cabotage adopted 
by the EAEU in 2015 ". 
 
Question:  
1. Could the Kyrgyz  Republic  please provide an update on the timeline and current status of 
legislative amendments pending before Parliament to relax ca botage restrictions for carriers from 
EAEU member States?  
 
Answer:  On 29 April 2021, the President of the Kyrgyz  Republic  signed the Law adopted by the 
Jogorku Kenesh of the Kyrgyz  Republic  "On Amendments to the Code of the Kyrgyz Republic on 
Violations", according to which, the implementation by a foreign carrier, with the exception of 
carriers of the member States of the Eurasian Economic Union, of road transport between points 
located on the territory of the Kyrgyz  Republic , as well as non -compliance by carriers of the member 
States of the Eurasian Economic Union with the conditions for the implementation of road transport 
of goods between points, located on the territory of the Kyrgyz  Republic -entails the imposition of a 
fine of category 8.  
 
Page 143 (Pa ra 4.112)  
This paragraph notes that the Law on Transport and the Law on Road Transport apply to all 
individuals, legal entities, and commercial activities in the field of road transport, without 
discrimination based on nationality.  
 
Question:  
1. Recognizing that Section 2.4 (page 34 -37) of the Secretariat Report covers the Investment 
Regime and Policy, could the Kyrgyz  Republic  please confirm if there are any specific restrictions on 
foreign ownership or investment in domestic road transport carr iers? 
 
Answer:  
There are no restrictions, only for a foreign company to carry out transport operations on the 
territory of the Kyrgyz  Republic , the automotive device (AMD) of this company must temporarily 
register with the State Registration Service of the  Kyrgyz  Republic  and obtain a licen ce plate of the 
Kyrgyz  Republic . Or invest in a local company its property (AMD) and become an equity participant 
in the company.  
 
Page 143 -144 (Paragraph 4.114)  
This paragraph states: "In general, foreign trucks and buse s 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 EAEU 
member States, in accorda nce with a programme of gradual liberalization of road cabotage adopted 
by the EAEU in 2015 ". 
 WT/TPR/M/4 11/Add.1  
 
- 17 - 
 
  Question:  
1. Could the Kyrgyz  Republic  please confirm if there are any exceptions to domestic road cabotage 
requirements for foreign service suppliers, for example within free economic zones (FEZs) or if there 
are no domestic service providers available?  
 
Answer:  
On the territory of the Kyrgyz  Republic , there is a ban on the implementation of cabotage 
transportation by foreign carriers, with the exception of carriers of the EAEU Member States. In the 
transport legislation of the Kyrgyz  Republic , there is no concept of internal cabotage tr ansportation.  
 
Page 20 (Para 4.80)  
The Government Report describes the Kyrgyz  Republic 's creation of investment legislation based on 
most-favoured nation treatment, aiming to improve the investment climate, and stimulate domestic 
and foreign investments by  providing investor protections.  
Question:  
1. Could the Kyrgyz  Republic  provide additional information on the legislative and administrative 
changes that were made for foreign entities/persons to enjoy a "fair, equal legal regime to 
investors "?  
 
Answer:  
Preferences for foreign investors in the Kyrgyz  Republic  according to the legislation . 
 
Stabilization mode  
In case of amendments or additions to this Law, the tax legislation of the Kyrgyz  Republic  and the 
legislation on non -tax payments, the investor, as  well as the invested enterprise that meets the 
conditions set out in this article, within 10 years from the date of signing the stabilization agreement, 
have the right to choose the most favo urable  conditions for paying taxes, including value added tax, 
but excluding other indirect taxes, and non -tax payments (except for payments for services rendered 
by state bodies) in accordance with the procedure established by the Legislation of the 
Kyrgyz  Republic , established by the legislation of the Kyrgyz  Republi c. The procedure and conditions 
for applying the stabilization regime in tax and non -tax legal relations are established by the 
legislation of the Kyrgyz  Republic . 
The stabilization regime may not be a basis for restricting the rights of an investor and/or  an invested 
enterprise that has signed the stabilization agreement to enjoy favo urable  conditions established by 
the legislation of the Kyrgyz  Republic , which entered into force after the signing of the stabilization 
agreement.  
 
The right to the stabiliza tion mode has:  
a) an investor who invests within three years from the date of signing the stabilization agreement 
in the capital of the invested enterprise, including in the authorized capital of the invested enterprise 
by increasing the number of outstand ing shares, increasing the authorized capital by an amount in 
KGS equivalent to at least three million US dollars, determined at the exchange rate of the National 
Bank of the Kyrgyz  Republic  on the date of signing the stabilization agreement, as well as th e 
invested enterprise itself; or  
b) an investor engaged in activities related to the study, search, exploration, development of 
minerals, who has invested within five years from the date of signing the stabilization agreement in 
the capital of the invested  enterprise, including in the authorized capital of the invested enterprise 
by increasing the number of outstanding shares, increasing the authorized capital by an amount in 
KGS equivalent to at least 20 ( million US dollars, determined at the exchange rat e of the National 
Bank of the Kyrgyz  Republic  on the date of signing the stabilization agreement, as well as the 
invested company itself.  
 
Termination of stabilization mode  
The investor's failure to fulfil its obligations to invest in the invested enterpri se is the basis for 
termination of the stabilization agreement and recovery of unpaid taxes and non -tax payments from 
the investor and the invested enterprise as a result of their application of the stabilization regime.  
Changes in the composition of share holders or participants of the investor and/or the invested 
enterprise do not entail the termination of the right to apply the stabilization regime and the 
expiration of its terms established by this Law.  
The legislation also contains the following article s that provide investors with the following 
guarantees:  
- Guarantees of investment and investor protection  WT/TPR/M/4 11/Add.1  
 
- 18 - 
 
  - Guarantees of export or repatriation of investments, property and information outside the 
Kyrgyz  Republic  
- Guarantees of protection against expropriation of investments and compensation of losses to 
investors  
- Guarantees of the use of income  
- Freedom of monetary transactions  
- Free access to open information  
Investment agreement concluded by the Government of the Kyrgyz  Republic  
has the right to conclude an investment agreement for the implementation of an investment project 
in accordance with state development programs in priority sectors of the economy and the social 
sphere, if the investor initiates the implementation of the investment  project. An investment 
agreement can be concluded through direct negotiations between the Government of the 
Kyrgyz  Republic  and the investor, if the amount of the investor's investments in the investment 
project is at least 10 million US dollars and provi ded that the investor has a generally recognized 
international business reputation, unique knowledge and experience of successful implementation 
of projects in a similar field of activity.  
An investment agreement concluded between the Government of the Kyr gyz Republic  and an 
investor may not establish the provision of benefits and preferences not provided for by the 
legislation of the Kyrgyz  Republic . 
 
 
  WT/TPR/M/4 11/Add.1  
 
- 19 - 
 
  UKRAINE  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT (WT/TPR/S/411)  
SUMMARY  
Page 8 (Para 14)  
The Report states that 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.  
Question:  
1. Could the Kyrgyz  Republic  kindly clarify the reason behind the introduction of the above -
mentioned prohibitions?   
 
Answer :  
In order to rationalize the use of (non -renewable) natural resources and prevent a critical shortage 
of raw materials of natural limestone -shell roc k at the unique Sary -Tash deposit, Government Decree 
No. 284 of 3 June 2020 introduced a ban on the temporary export of raw or roughly crushed 
limestone -shell rock, sawn or otherwise divided into blocks or slabs of rectangular, square shape 
from the territ ory of the Kyrgyz  Republic . This ban was in effect from 5 June 2020 for a period of 6 
months.  
In order to prevent the growth of the shadow economy and replenish the state budget, Government 
Decree Resolution No.  566 of 22 October  2019 introduced a temporar y ban on the import of certain 
types of oil and petroleum products into the territory of the Kyrgyz  Republic  by auto transport. This 
ban was in effect from 12 November  2019 for a period of 6 months.  
 
Page 35 (Para 2.39)  
The Report shortly describes activi ty of the Council on Business and Investments established in 2010 
to provide a unified state policy on attracting investments and improving the business and 
investment climate.  
Question:  
5. Ukraine would appreciate if the Kyrgyz  Republic  could provide more information concerning the 
Council on Business and Investments and elaborate on its functions, tasks, principles, structure, 
results of activities etc.  
 
Answer : 
The Council for Business Development and Investment under the Government of  the Kyrgyz  Republic  
was established by Resolution of the Government of the Kyrgyz  Republic  No. 149 of 5 August  2010 
(as amended by Resolutions of the Government of the Kyrgyz  Republic  No. 36 of 9 February  2011, 
and No.  261 of 17 May 2016), which also appr oved its position and composition. The Prime Minister 
of the Kyrgyz  Republic  is the Chair person  of the Council.  
Members of the Council:  
- Deputy Prime Minister of the Kyrgyz  Republic , responsible for economic and investment issues;  
- Deputy of the Jogorku Kenesh of the Kyrgyz  Republic , member of the Committee on Economic and 
Fiscal Policy of the Jogorku Kenesh of the Kyrgyz  Republic  (by agreement);  
- Head of the Department of Financial and Economic Analysis and Monitoring of the development of 
the Office of  the President of the Kyrgyz  Republic  (by agreement);  
- Head of the authorized state executive body in the field of economic development of the 
Kyrgyz  Republic ; 
From international development partners (as agreed):  
- two representatives from business -associated structures (by agreement):  
members of the Council may be representatives of business -associated structures, duly registered 
in the Kyrgyz  Republic , as a legal entity (business associations, clubs, unions, councils, chambers, 
etc.); The main principles of the Council are:  
- responsibility to society; equality of members of the Council;  
- openness to business and government representatives;  
- transparency of the activity; validity of the prepared decisions;  
- taking public opinion into acc ount when preparing and making decisions;  
- focus on the final result.  
The main task of the Council is to ensure an effective dialogue between the state and business on 
improving the business environment and investment climate in the Kyrgyz  Republic . 
To so lve this problem, the Council performs the following functions:  
- conducts research and analysis of the business environment and investment climate in the country;  WT/TPR/M/4 11/Add.1  
 
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  - develops proposals and recommendations for government agencies to improve the business 
environment and investment climate, reform the public administration system in order to improve 
the regulatory functions of the state and determine the strategy and priorities for attracting 
investment;  
- reviews the implementation of measures to improve the business environment and the investment 
climate.  
Meetings of the Council are held as necessary, but at least once a quarter. During the work of the 
Council, the Council initiated more than 160 regulatory legal acts to improve the business 
environment in Ky rgyz Republic . The most significant and implemented initiatives are the creation 
of a High -Tech Park (HTP), optimization of the licensing permission system (LPS law, guillotine 
principle, Analysis of Regulative Effect), PPP law, risk -based checks, electron ic visa, Investment 
Promotion Agency (IPA), improvement of the World Bank's "Doing business" rating from 98 to 46 
places, transfer of tax administration of the Social Fund to the State Tax Service.  
As a result of the Council's activities, the number of bus iness associations of Council members has 
increased from 8 to 65, which indicates the growing interest of the business community in the Council 
and its effectiveness.  
 
3.1.3.3 Applied rates that exceed the bound rates  
Page 60 (Para 3.63)  
The Report notes t hat many applied rates are above the WTO bindings.  
Question:  
11. What kind of measures does the Kyrgyz Government consider adopting to address these issues?  
 
Answer : 
This question relates to the current process of negotiations of the Kyrgyz  Republic  within the WTO 
on changing tariff obligations, according to Article  XXVIII: 5 of the G eneral Agreement on Tariffs and 
Trade (GATT) . 
 
3.1.4.3 Sales tax  
Page 72 (Para 3.84)  
According to the Report the Kyrgyz  Republic  continues to apply a sales tax , in addition to VAT, on 
domestic and foreign enterprises on goods, works, and services based on sales turnover.  
Question:  
13. Would the Kyrgyz  Republic  kindly clarify if businesses could be both VAT and sales taxpayers 
and whether simultaneous application  of such taxes (a sales tax, in addition to VAT) doesn`t result 
in double taxation?  
 
Answer :  
In accordance with the norms of the Tax Code of the Kyrgyz  Republic , the same entity can be a 
payer of both VAT and sales tax.  
 
3.1.5 Import prohibitions, restrictions, and licensing  
Page 74 (Para 3.93)  
The Report states that 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 
2014, which predates the Kyrgyz  Republic 's membership in the EAEU.  
Questions:  
15. In light of the WTO  Agreement  on Import Licensing Procedures, where does the Kyrgyz  Republic  
publish the current procedures for obtaining an import licen ce?  
16. Could the Kyrgyz  Republic  indicate when it is going to submit relevant notifications on its system 
of import licensing?  
 
Answer :  
All information about the procedures for obtaining a licen ce for the import/export of goods is 
published on the official website of the Ministry of Economy and Finance of the Kyrgyz  Republic  at: 
http://mineconom.gov.kg/ru/direct/13/74 . The relevant notification of the Kyrgyz  Republic  on 
import licensing procedures is being prepared an d will be submitted to the WTO in the near future.  
 WT/TPR/M/4 11/Add.1  
 
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  4.7 Protection of Intellectual Property Rights  
Page 21 (Para 4.89)  
Under the Report, "For 2013 -2019, the legislation of the Kyrgyz Republic in the field of intellectual 
property was harmonized in accorda nce with the requirements of international standards that also 
have determined the obligations of the Kyrgyz Republic during its accession to the EAEU".  
Question:  
26. How has the membership of the Kyrgyz  Republic  in the EAEU contributed to the implementation 
of the international standards in the protection of intellectual property rights, and in particular the 
enforcement of the intellectual property rights?  
 
Answer : 
Answer: Since joining the EAEU, the Kyrgyz  Republic has been actively working to improve its 
national legislation by harmonizing it with the norms of international law.  
To date, intellectual property issues within the framework of the EAEU are regulated by the following 
international treaties:  
1. The E AEU Treaty provides the adoption of a number of additional international treaties on certain 
aspects of intellectual property;  
2. The Agreement on Coordination of Actions for the Protection of Intellectual Property Rights 
(Grodno, 8 September  2015), which regulates cooperation of law enforcement agencies of the EAEU 
Member States in the field of IP rights protection through the harmonization and improvement of 
national legislation, exchange of information and experience, joint activities, etc.  
3. The Treaty  on the Customs Code of the Eurasian Economic Union (Moscow, 11 April 2017), which 
replaced the Treaty on the Customs Code of the Customs Union (Minsk, 27 November  2009), was 
developed on the basis of the latter, taking into account the requirements of the  EAEU. It regulates, 
in particular, the suspension of the release period of goods containing IP objects (Article  124). 
Customs measures to protect the rights to IP objects are covered in Chapter 52, which, among other 
things, incorporates the provisions of  the Agreement on the Unified Customs Register of Intellectual 
Property Objects of the member States of the Customs Union (St. Petersburg, 21 May 2010), 
finalized in order to ensure the proper functioning of the designated register (ETROIS);  
4. The Agreement on the procedure for Managing Copyright and Related Rights on a Collective Basis 
(Moscow, 11 December  2017) establishes an appropriate procedure in the territories of the EAEU 
Member States in cases where the practical exercise of rights o n an individual basis by copyright 
holders is difficult or when the legislation of the Member States allows the use of objects of these 
rights without the consent of the copyright holders, but with the payment of remuneration. The 
Treaty on Trademarks, Ser vice Marks and Appellations of Origin of Goods of the EAEU (Moscow, 
3 February  2020), which aims to create an effective mechanism for obtaining simultaneous legal 
protection of a trademark, service mark of the Union and an appellation of origin of goods of  the 
Union on the territory of the member States, simplifying registration procedures, eliminating 
excessive administrative barriers.  
 
Page 22 (Para 4.102)  
The Report states that according to the general rule, intellectual property rights are judicially 
protected. These disputes fall under the jurisdiction of state courts.  
Questions:  
27. As the intellectual property disputes in the Kyrgyz  Republic  fall under the purview of the state 
courts, do these courts have a special court chamber or are there speciali zed courts which deal solely 
with the cases related to those types of disputes?  
28. How is the training of the judges organized to improve their efficiency in dealing with the 
intellectual property cases?  
 
Answer :  
There are no specialized intellectual property courts in the Kyrgyz  Republic . Disputes on intellectual 
property are considered by courts of general jurisdiction in accordance with their jurisdiction and 
jurisdiction of cases.  
At the same time, it should be noted that the State Int ellectual Property Service of Kyrgyzsta) 
(Kyrgyzpatent ) has an Appeal Board, which is a mandatory primary (pre -trial) body for considering 
disputes on the protection of industrial property objects and selection achievements. Kyrgyzpatent 
annually conducts training courses on the basics of intellectual property. The training activities are 
aimed at raising awareness of the judicial, law enforcement and regulatory authorities of the 
Kyrgyz  Republic , teaching staff, students and masters of higher educational i nstitutions, employees 
of public associations and associations in the application of legislation in the field of intellectual WT/TPR/M/4 11/Add.1  
 
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  property, registration of intellectual property objects, as well as ways to protect intellectual property 
from misuse.  
Kyrgyzpaten t is working to improve the knowledge of judges of the Kyrgyz  Republic  on IP dispute 
resolution issues within the framework of the training program of the World Intellectual Property 
Organization (WIPO)  
 
THE SECRETARIAT REPORT (WT/TPR/S/411)  
2 TRADE AND IN VESTMENT REGIMES  
2.4 Investment Regime and Policy  
Page 34 (Para 2.37)  
The Report informs that the Kyrgyz  Republic  maintains an open investment regime, with very few 
formal entry or ownership restrictions and no formal screening mechanism.  
Questions:  
2. Could the Kyrgyz  Republic  clarify the current situation regarding the licensing of investment 
activities?   
3. Do foreign investors have to get a licen ce or other approvals to conduct investment activities in 
the territory of the Kyrgyz  Republic ? 
 
Answer s: 
2. According to the Decree of the President of the Kyrgyz  Republic  "On the protection of property 
and support of entrepreneurs and investors" regarding the current situation with the licensing of 
investment activities, it is recommended to the Governmen t of the Kyrgyz  Republic : a) create a 
Single electronic Portal for issuing licen ces and permits and by 31 December  2021; b) provide an 
automated system for issuing licen ces and permits; c) integrate it with the State Portal of Electronic 
Services through a Single Identification System.  
3. Foreign investors – any individuals and legal entities that invest in the economy, as well as carry 
out activities on the territory of the Kyrgyz  Republic , as a rule, must obtain a licen ce and other 
permits.  
 
Page 34 (Para 2.38)  
According to the Report the Law on Investments is the principal law of the Kyrgyz  Republic  relevant 
to foreign investment.  
Question:  
4. Would the Kyrgyz  Republic , please, explain how domestic legislation regulates the conducting of 
investment activities by foreign investors in the territory of the State? In particular, what are the 
main laws and other legislative acts in the sphere of investment activities that re gulate this issue?  
 
Answer : 
The Law  "On Investments in the Kyrgyz Republic"  No. 66 (with additions and amendments until 
26 December  2020 No.  12) provides for the following conditions for foreign companies' investment 
activity:  
1. Foreign investors are provided with the national regime of economic activity applied to legal 
entities and individuals of the Kyrgyz  Republic ; 
2. Foreign investors, their representatives and foreign employees who are in the Kyrgyz  Republic  in 
connection with investment activiti es have the right to free movement (with the exception of special 
territories);  
3. The state does not interfere with the economic activities, rights and legally recognized interests 
of investors, except in cases provided for by law;  
4. Investors who invest  in priority sectors of the economy and social sphere, as well as in certain 
territories of the republic, may be provided with investment benefits in accordance with state 
development programs (projects).;  
5. Investments may be made in any form in objects and activities not prohibited by the legislation 
of the Kyrgyz  Republic , including licensed activities;  
6. Guarantees of export or repatriation of investments, property and information outside the 
Kyrgyz  Republic ; 
7. Guarantees of protection against exprop riation of investments and compensation of losses to 
investors. In accordance with paragraph 5 of Article  6 of the above -mentioned Law of the 
Kyrgyz  Republic , investors whose investments in the Kyrgyz  Republic  were damaged as a result of 
war or other armed  conflict, revolution, state of emergency, civil clashes or other similar 
circumstances are granted legal status and conditions that are no less favo urable  than those applied 
to legal entities and individuals.  
 WT/TPR/M/4 11/Add.1  
 
- 23 - 
 
  WTO Secretariat Report  
3.1.1.3.1 Minimum impo rt control prices  
Pages 50 -51 (Para 3.38)  
The Report states that the Kyrgyz  Republic  applies minimum prices to 36 categories of products, 
mostly agricultural products imported into the Kyrgyz  Republic  from EAEU member States.  
Question:  
9. Could the Kyrgyz  Republic  confirm that the minimum import prices do not apply to the imported 
goods from WTO Members?  
 
Answer : According to paragraph 25 of Article  4 of the Tax Code of the Kyrgyz  Republic , the 
minimum levels of control prices apply only to goods imported into the territory of the 
Kyrgyz  Republic  from the EAEU member States.  
 
3.1.4 Other charges affecting imports  
3.1.4.2 VAT  
Pages 70 -71 (Para 3.80)  
The Report presents information on VAT exemptions, including on "supply of agricultural produc e 
and products of the food processing industry" (Table 3.15).  
Question:  
12. Would the Kyrgyz  Republic  kindly elucidate what mechanism of VAT exemption is used in the 
agricultural sector: exemption on transactions for the supply of agricultural products; exemption 
from VAT for business entities that supply agricultural products and what is the procedure of  their 
accounting, tax credits formation on transactions for the supply of agricultural products?  
 
Answer:  In accordance with Article  239 of the Tax Code, the supply by an agricultural producer, an 
agricultural cooperative of agricultural products of its o wn production, as well as products of its 
processing, is a supply exempt from VAT.  
The supply of agricultural products and processed products by an agricultural cooperative received 
from agricultural producers who are members of the cooperative is a VAT -exempt supply.  
The delivery of goods, works, and services by an agricultural cooperative to the members of this 
cooperative is a VAT -exempt delivery.  
The delivery of agricultural products and processed products received from agricultural producers 
and agricu ltural cooperatives by the trade and logistics centre for agricultural purposes is a VAT -
exempt delivery.  
VAT-exempt delivery is the delivery of a machine and tractor station to an agricultural producer and 
an agricultural cooperative.  
The supply of feed f or poultry and fish produced by the taxpayer to an agricultural producer engaged 
in the breeding of poultry and fish is a supply exempt from VAT.  
According to article 258 of the Tax Code, breeding farm animals and seed materials, mineral 
fertilizers and ch emical plant protection products imported into the territory of the Kyrgyz  Republic  
are exempt from VAT.  
The import of goods specified in this article is exempt from VAT according to the list approved by 
the Government of the Kyrgyz  Republic , in accordance  with the EAEU HS codes.  
At the same time, in accordance with parts 1 and 3 of Article  259 of the Tax Code, fixed assets 
imported into the territory of the Kyrgyz  Republic  by economic entities registered as a VAT payer 
directly for their own production pur poses are exempt from VAT.  
The import of fixed assets carried out for its own production purposes is exempt from VAT regardless 
of the fact that the business entity is registered as a VAT payer.  
 
3.1.4.3 Sales tax  
Page 72 (Para 3.84)  
According to the Repo rt the Kyrgyz  Republic  continues to apply a sales tax, in addition to VAT, on 
domestic and foreign enterprises on goods, works, and services based on sales turnover.  
Questions:  
13. Would the Kyrgyz  Republic  kindly clarify if businesses could be both VAT an d sales taxpayers 
and whether simultaneous application of such taxes (a sales tax, in addition to VAT) doesn`t result 
in double taxation?  
14. What control measures does the Kyrgyz  Republic  apply  in the process of sales tax administration 
to determine that appropriate goods, works and services are sold/provided directly to end users?  
 WT/TPR/M/4 11/Add.1  
 
- 24 - 
 
  Answer s:  
13. In accordance with the Tax Code of the Kyrgyz  Republic , enterprises can be both VAT payers 
and simultaneously pay sales tax, while sales tax is charged to payers only in cases where entities 
sell goods paid in cash, in the case of non -cash payment, the tax rate is "0".  
 
14. When subjects buy goods with VAT, but cannot take it to offset, or the goods are intended for 
activities that are exempt from VAT, in accordance with Article  223-3 of the Tax Code, the amount 
of VAT on purchased material resources that are not subject to offset is deducted from the total 
annual income when calculating income tax, and for the rest that are not covered by this article, the 
amount of VAT for purchased material resources is included in the cost of the goods.  
 
3.3 Measures Affecting Production and Trade  
3.3.6 Government procurem ent 
Page 103 (Para 3.189)  
It is stipulated in the Report, that the Kyrgyz  Republic  agreed to pursue membership in the 
WTO Agreement  on Government Procurement when it acceded to the WTO in 1998.  
Question:  
19. Could the Kyrgyz  Republic  inform on its plans to submit the revised offer and updated national 
legislation for consideration by WTO Members?   
 
Answer:  In order to join the Kyrgyz  Republic  to the Agreement on Public Procurement, the 
authorized body in the field of public procuremen t is currently working on a new version of the offer 
on market access.  
After the final preparation and internal approval of the draft offer and internal consultations, the 
Kyrgyz  Republic  will send the revised market access offer to the WTO Secretariat.  
 
Report of the Government of the Kyrgyz  Republic  
4.5 Investment Policy  
Page 20 (Para 4.83)  
The Report notes that the existing investment incentives and preferences are reflected in the Guide 
for Investors on Existing Investment Preferences in the Kyrgyz  Republic and the Register of 
Investment Incentives.  
Question:  
25. Could the Kyrgyz  Republic  provide the website links where these documents are available or, if 
it is not possible, provide detailed information concerning such incentives?  
 
Answer:  All information on investment incentives and preferences can be found at: 
https://invest.gov.kg/ru/%d0%bb%d1%8c%d0%b3 %d0%be%d1%82%d1%8b -%d0%b8 -
%d0%bf%d1%80%d0%b5%d1%84%d0%b5%d1%80%d0%b5%d0%bd%d1%86%d0%b8%d0%b8 -
%d0%b4%d0%bb%d1%8f -
%d0%b8%d0%bd%d0%be%d1%81%d1%82%d1%80%d0%b0%d0%bd%d0%bd%d1%8b%d1%85/   
 
Page 48 (Para 3.32)  
The Report describes six methods of customs valuation set out in the EAEU Customs Code.  
Questions:  
6. How can the Kyrgyz  Republic  ensure that these methods are in compliance with Article  VII of 
General Agreement on Tariffs and Trade (GATT)  1994?  
7. Could the Kyrgyz  Republic , please, clarify stages of the customs valuation procedure?  
8. Please, clarify the difference between the Method Involving the Transaction Value of Identical 
Goods and the Method Involving the Transaction Value of Similar Goods as well as the Deduction 
and Computed methods.  
 
3.1.1.3. Customs assessment  
Answer s: 
6. The Eurasian Economic Union (hereinafter referred to as the Union) implements a single customs 
regulation in accordance with international agreements regulating customs legal relations, includin g 
the Customs Code of the Eurasian Economic Union (hereinafter referred to as the Code).  
The provisions of the Code are binding on the Member States of the Union.  
The methods for determining the customs value of goods are established in Chapter 5 of the Co de, 
the provisions of which are based on the general principles and rules established by Article  VII of 
the General Agreement on Tariffs and Trade of 1994 (GATT  1994) and the Agreement on the 
Application of Article  VII of the General Agreement on Tariffs a nd Trade of 1994, which is enshrined 
in paragraph 1 of Article  38 of the Code.  WT/TPR/M/4 11/Add.1  
 
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  The Eurasian Economic Commission, for the purpose of uniform application of the methods for 
determining the customs value of goods established by Chapter 5 of the Code, adopted Decisions 
on each method based on the relevant provisions of the Agreement on the Application of Article  VII 
of the General Agreement on Tariffs and Trade of 1994, including explanatory notes to it, as well as 
documents on the customs value of goods adopte d by the Technical Committee on Customs 
Valuation of the World Customs Organization.  
For reference: Decisions of the Board of the Eurasian Economic Commission of 20 December  2012 
No. 283 "On the application of the method of determining the customs value of goods by the 
transaction value of imported goods (Method 1)", of October 30, 2012 No. 202 " On the application 
of methods for determining the Customs Value of goods by the transaction v alue of identical goods 
(Method 2) and by the transaction value of similar goods (Method 3)", of 13 November  2012 No.  214 
"On the application of the subtraction method (Method 4) in determining the Customs value of 
goods", of 12 December  2012. No.  273 "On the application of the Addition Method (Method 5) in 
determining the Customs value of goods", dated 6 August  2019 No.  138 "On the application of the 
Reserve method (Method 6) in determining the Customs value of goods".  
 
The decisions of the Eurasian Econom ic Commission are normative legal acts that are binding on all 
member States of the Union. The decisions of the Eurasian Economic Commission are part of the 
law of the Union and are subject to direct application in the territories of the member States, and  
the member States of the Union do not have the authority to adopt acts on methodological issues 
of determining the customs value of goods.  
 
7.The procedure for determining the customs value of goods imported into the customs territory of 
the Union is esta blished in Chapter 5 of the Code. Article  38 of the Code establishes that the customs 
value of goods is determined if, when imported into the customs territory of the Union, the goods 
have crossed the customs border of the Union and a customs procedure is first declared in respect 
of such goods (with the exception of customs procedures of customs transit, customs warehouse, 
destruction, refusal in favo ur of the state or a special customs procedure).  
The customs value of the goods is determined by the declar ant. 
The basis of the customs value of imported goods should be, to the maximum extent possible, the 
value of the transaction with these goods in the meaning defined by Article  39 of the Code.  
If it is impossible to determine the customs value of imported goods by the value of the transaction 
with them (method 1), the customs value of the goods is determined sequentially by the value of 
the transaction with identical goods (method 2, Article  41 of the Code) and by the value of the 
transaction with similar g oods (method 3, Article  42 of the Code).  
If it is impossible to determine the customs value of imported goods using methods 2 and 3, either 
the price at which the estimated, identical or similar goods were sold in the customs territory of the 
Union (method  4 – the method of subtraction, Article  43 of the Code) or the estimated value of the 
goods (method 5 – the method of addition, Article  44 of the Code) can be used as the basis for 
determining the customs value. The declarant has the right to choose the or der of application of 
methods 4 and 5.  
If it is impossible to apply Articles 39, 41 -44 of this Code to determine the customs value of imported 
goods, the determination of the customs value of goods is carried out by the reserve method 
(method 6, Article  45 of the Code).  
 
8.The difference between the methods of customs valuation of goods lies in the basis that is used 
when applying a particular method.  
Thus, when applying method 2, the customs value of goods is the value of the transaction with 
identical g oods sold for export to the customs territory of the Union and imported into the customs 
territory of the Union in the same or in the corresponding period of time as the goods being 
evaluated, but not earlier than 90 calendar days before the import into th e customs territory of the 
Union of the evaluated goods.  
For reference. Article  37 of the Code establishes that identical goods are goods that are identical in 
all respects, including in terms of physical characteristics, quality and reputation. Minor diff erences 
in appearance are not grounds for non -recognition of goods as identical, if otherwise these goods 
meet the following requirements: the goods are produced in the same country as the goods being 
evaluated, if the design, development, engineering, des ign work, decoration, design development, 
sketches and drawings and other similar work were performed outside the customs territory of the 
Union. Identical goods produced by a person other than the manufacturer of the evaluated goods 
are considered only if  identical goods of the same manufacturer are not identified or the available 
information is not considered acceptable for use.  WT/TPR/M/4 11/Add.1  
 
- 26 - 
 
  When applying method 3, the customs value of goods is the value of a transaction with similar goods 
sold for export to the custo ms territory of the Union and imported into the customs territory of the 
Union in the same or in the corresponding period of time as the goods being evaluated, but not 
earlier than 90 calendar days before the import into the customs territory of the Union of the 
evaluated goods. This uses the transaction value of similar goods sold at the same commercial level 
and in substantially the same quantity as the goods being valued.  
For reference. Article  37 of the Code establishes that homogeneous goods are goods that are not 
identical in all respects, but have similar characteristics and consist of similar components, produced 
from the same materials, which allows them to perform the same functions as the goods being 
evaluated, and to be commercially interchangeab le with them. When determining whether products 
are homogeneous, characteristics such as quality, reputation, and the presence of a trademark are 
taken into account. Goods are not considered homogeneous if they are not produced in the same 
country as the g oods being evaluated, or if the design, development, engineering, design work, 
decoration, design development, sketches and drawings and other similar work were performed in 
the customs territory of the Union in respect of these goods. Homogeneous goods pr oduced by a 
person other than the manufacturer of the evaluated goods are considered only if homogeneous 
goods of the same manufacturer are not identified or the available information is not considered 
acceptable for use.  
When applying method 4, the basis for determining the customs value of imported goods is the unit 
price of the goods at which the largest aggregate quantity of the goods being evaluated or identical 
to the goods being evaluated or similar to the goods being evaluated is sold to persons who  are not 
related to the persons carrying out such sales in the customs territory of the Union, in the same or 
in the corresponding period of time in which the goods being evaluated were imported into the 
customs territory of the Union, provided that the am ounts specified in paragraph 2 of Article  43 of 
the Code are deducted.  
When applying method 5, the estimated cost of goods is taken as the basis, which is determined by 
adding up the costs established in Article  44 of the Code, and which are determined on the basis of 
information about the production of the evaluated goods, submitted by or on behalf of the 
manufacturer and confirmed by the manufacturer's commercial documents.  
 
Pages 78 -79 (Para 3.106)  
The Report mentions that the EAEU 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. The list has 
85 categories of goods listed by HS code. The products i nclude 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.  
Questions:  
17. Could the Kyrgyz  Republic  elaborate on the criteria that is being used to form a list of significantly 
important products?  
18. Could the Kyrgyz  Republic  also explain the basic principles for the application of possible 
temporary bans or export restrictions for such products?  
 
Answers : 
17. The EAEU law defines a list of goods that are essential for the internal market of the EAEU and 
for which, in exceptional cases, temporary bans or quantitative restrictions on exports may be 
imposed, which is approved by the EAEU Commission. At the same time, the specified list of goods 
is formed based on the criteria for the sufficiency of the volume of goods necessary to ensure food 
security, as well as environmental protection, animals and plants.  
Please note that the formation of the list of goods essential for the internal market of the EAEU 
complies with the provisions of Article  XI "General elimination of quantitative restrictions" of the 
General Agreement on Tariffs and Trade (GATT 1947).  
 
18. The establishment of bans or quantitative rest rictions on exports in accordance with the EAEU 
Treaty is possible in exceptional cases on a temporary basis, in order to prevent or reduce a critical 
shortage in the domestic market of goods that are essential for the domestic market of the EAEU.  
This rul e is consistent with Article  XI of the GATT and allows WTO Members to impose export or 
import bans when necessary, for example, to overcome a critical situation in the supply of certain 
goods or to apply standards and rules for the classification, sorting and marketing of commodities 
for international trade.  
 WT/TPR/M/4 11/Add.1  
 
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  PART II: QUESTIONS REGARDING THE REPORT  BY THE KYRGYZ REPUBLIC 
(WT/TPR/G/41 1) 
3 SECTORAL POLICIES AND REFORMS  
3.1 Agriculture  
Page 7 (Para 3.20)  
The Report indicates that the Concept for Development of  the Agricultural Cooperative System in 
the Kyrgyz  Republic  for 2017 -2021 is being implemented, which provides solutions to problems of 
developing agricultural cooperatives and is intended to create necessary conditions for resolving 
financial and economic problems.   
Questions:  
20. Could the Kyrgyz  Republic  provid e details on the preliminary results of the implementation of 
the Concept for Development of the Agricultural Cooperative System?  
21. How many agricultural cooperatives have been developed, what kind of conditions have been 
created to resolve financial an d economic problems?  
 
Answer s:  
20. As part of the implementation of the Concept for the Development of the Agricultural Cooperative 
System in the Kyrgyz  Republic , Round tables were held in 2018 on the topic "Problems and solutions 
in the development of a gricultural cooperatives in the Kyrgyz Republic". A draft law of the 
Kyrgyz  Republic  "On Amendments to the Law of the Kyrgyz  Republic  "On Cooperatives" has been 
developed, which provides for improving the activities of the Council of Agricultural Cooperati ves. 
Resolution of the Government of the Kyrgyz  Republic  No. 729 of 30 /12/2019  the draft law of the 
Kyrgyz  Republic  "On Amendments to certain legislative Acts of the Kyrgyz  Republic " (the Land Code 
of the Kyrgyz  Republic , the Law of the Kyrgyz  Republic  "On the Management of Agricultural Land") " 
was introduced and submitted  to the Jogorku Kenesh, which provides for granting priority to 
agricultural cooperatives when obtaining agricultural land (including land of irrigated arable land for 
medium and long -term lease). On the basis of the Kyrgyz National Agrarian University named after 
K. I. Scriabin University has created a training cent re for the training of managers and specialists of 
more than 400 cooperatives and aiyl okmotu. In 2019, training seminars were held on the topic 
"Creation and development of agricultural cooperatives in the Kyrgyz  Republic ". 
21. At the time of the development and adoption of the Concept for the Development of the 
Agricultural Cooperative System in the Kyrgyz  Republic  in 2017, there were only 360 cooperatives, 
of which 45 were commodity -service cooperatives.  
At the beginning of 2021, the number of cooperatives was 480.  
 
Page 8 (Para 3.21)  
The Report states that in the future, in order to resolve current problems, the creation of agro -
industrial clusters is envisaged in agricultural production.   
Questions :  
22. Could the Kyrgyz  Republic  specify what kind of problems it intends to resolve by creating agro -
industrial clusters?  
23. Will any state support and  funding be envisaged for the creation of such clusters?  
24. What types of benefits and incentives will be provided to the clusters ' participants?  
 
Answer s:  
22. The creation of agro -industrial clusters is supposed to solve the problem of overcoming the 
fragmentation of agricultural production, increasing its efficiency and competitiveness of agricultural 
products, including the full value chain, and promoting agr icultural products from the manufacturer 
to the sales market, increasing the volume of exports of products.  
23. State support in the form of financing for the creation of agro -industrial clusters is not yet 
provided. It is possible that some actions will b e carried out within the framework of public -private 
partnership.  
24. As part of the implementation of the F A-8 Program  (Financing Agriculture) , in 2020, preferential 
loans in the amount of 362.1 million soms were disbursed  in the direction of "F A-Cluster" . 
In the F A-9 for 2021, there is no specific indication of the financing of clusters, but there is a condition 
under which "8 percent per annum: - for economic entities of the category of animal husbandry and 
crop production that undertake to conclude cont racts and/or contracts with food processing 
enterprises participating in the project ". 
 WT/TPR/M/4 11/Add.1  
 
- 28 - 
 
  3.1.3 Tariffs  
3.1.3.1 Applied rates  
Page 58 (Para 3.59)  
The Report indicates that the Kyrgyz  Republic  has not made any recent submissions to the WTO 
Integrated Database  of its applied tariffs.  
Question:  
10. As per notification requirements contained in G/MA/367, could the Kyrgyz  Republic  indicate 
when it plans to make relevant submissions to the WTO Integrated Database?  
 
Answer : 
With respect to the question of Ukraine regarding submissions by the Kyrgyz  Republic  into the IDB, 
the Kyrgyz  Republic  would like to inform that the applied tarif f rates until 2020 are in IDB. The tariff 
rates for 2021 would be submitted soon.   
 
  WT/TPR/M/4 11/Add.1  
 
- 29 - 
 
  CHINA  
PART I: QUESTIONS REGARDING THE Secretariat Report  
Page 8, Para. 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 significantly, and tariff -rate 
quotas are now applied on four categories of products  (various meat products and raw cane sugar).  
Question : 
1. Does the Kyrgyz  Republic  plan to gradually increase the number of duty -free lines?  
 
Answer : With the joining of the Kyrgyz  Republic  to the EAEU, in accordance with the Treaty on the 
Eurasian Economi c Union, the Kyrgyz  Republic  applies the Unified Customs Tariff of the EAEU, which 
is higher than the previously applied national customs tariff. Currently, the issues of changing tariff 
regulation are within the competence of the Eurasian Economic Commiss ion (i.e. at the supranational 
level).  
 
Page 8, Para. 13 
The Kyrgyz  Republic  continues to apply certain indirect taxes, i.e. VAT, excise tax, and sales tax, on 
imported goods.  
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 movem ent within the EAEU to harmonize 
indirect taxes.  
Questions : 
2. For the VAT exemption projects implemented by some enterprises, there are cases where the 
purchased goods contain VAT but the relevant VAT cannot be deducted. Are there any measures to 
deal wit h this situation?  
3. Does the Kyrgyz  Republic  have any plan to optimize its measures in respect of tax prepayment?  
 
Answer : In accordance with Article  272 of the Tax Code of the Kyrgyz  Republic , when a taxable 
entity makes taxable and exempt supplies, if the cost of exempt supplies for the tax period does not 
exceed 5 % of the total cost of supplies, the amount of VAT paid for the acquired material resources 
is fully offset.  
Except for the cases provided for in part 1 of Article  272 of the TAX CODE OF THE K R, VAT for 
acquired material resources, subject to offset, is calculated in the following order:  
1) the amount of VAT for the acquired material resources intended for the creation of taxable supplies 
is subject to offset;  
2) the amount of VAT for the acqui red material resources intended for the creation of exempt 
supplies is not subject to offset;  
3) the remaining unallocated part of VAT is subject to offset in the following amount:  
the amount of unallocated VAT x A / A + B = the amount to be offset, where:  
A is the total cost of taxable supplies;  
B – the total cost of exempt deliveries made during the tax period.  
Page 19, Para.1.12  
The Kyrgyz  Republic  also has a significant informal economy that may equal between 24% and 40% 
of the official GDP. Informal activity appears to be most prevalent in trade, hospitality, transport, 
and agriculture. It has also been observed that compliance with administrative  procedures appears 
to generate high costs for many firms, driving informality and acting as a disincentive to organic 
growth.  
Question : 
7. Please introduce the meaning of "informal economy".  
 
Answer : In the practice of national statistics, the concept of  the non -observed or shadow economy 
includes hidden and informal activities.  
Shadow economic activity includes legitimate economic activity that is hidden or diminished by the 
units carrying out it for the purpose of evading taxes, social insurance contrib utions or non -
compliance with certain administrative duties or regulations on labo ur protection, sanitary and other 
standards established by law. This activity can be carried out in almost all sectors of the economy.  WT/TPR/M/4 11/Add.1  
 
- 30 - 
 
  Informal economic activity is carried o ut mainly on a legal basis by individual producers i.e. 
businesses owned by individuals or households. Their activities are based on informal relations 
between production participants; they can (in whole or in part) produce goods or services for their 
own final consumption.  
In accordance with the existing legislation, many entrepreneurs obtain the status of an individual, 
both with the involvement of hired labo ur and without it, and belong to the "Households" sector or 
the informal sector. For example, this  sector includes persons engaged in trade, car repairs, 
transportation of passengers and goods by personal transport, sewing clothes, grinding flour, baking 
cakes and bread, etc.  
Page 22, Para 1.21  
Although the Kyrgyz  Republic  recorded persistent deficits in trade in services (until 2019), these 
deficits 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 services, 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.  
 
Question : 
8. The landlocked situation has raised the transport cost for the transportation. Does the government 
have any plan to solve the problem?  
 
Answer:  One of the priority tasks of the National Development Strategy of the Kyrgyz  Republic  for 
2018-2040 is to ensure fre edom of movement of the population and bring the country out of the 
transport deadlock.  
According to the strategy, 1) rehabilitation and construction of separate sections of transnational 
highways connecting the Bishkek -Osh and North -South highways will be  carried out; 2) the 
construction of an alternative North -South road has been completed; 3) regimes of free movement 
of perishable products on the principle of "green corridors" with neighboring countries Kazakhstan, 
China, Uzbekistan have been introduced.  
Page 74, Para. 3.92 
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 indivi duals for personal use. 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.  
 
Question : 
13. Whether the Traditional Chinese Medicine (TCM) is imported into the Kyrgyz  Republic ? If so, 
which kind of entity is qualified to import the TCM?  
 
Answer : According to Article  9 of the Law of the Kyrgyz  Republic  "On the Circulation of Medicines", 
medicines are imported, produced, sold, used  
on the territory of the Kyrgyz  Republic , if they have passed the state registration procedure or are 
included in a special list of medicinal products permitted for import and medical use without 
registration.  
Also Art.  32 of this Law, wholesalers have the right to supply medicines to individuals and legal 
entities licensed for pharmaceutical activities.  
As at 1 May 2021, there are three  registered medicinal products manufacture d in the PRC in the 
Kyrgyz  Republic . (Li Shuang, oral capsules # 24, manufactured by China Resources Kunming 
Shenqhuo Pharmaceutical Co., Ltd., China; Adamolgrin, capsules # 24, manufactured by Yunnan 
Xiato Green Pharmaceutical Co., Ltd., China; Nephrocin,  capsules # 36 manufactured Shaanxi 
Buchang Hi -Tech Pharmaceutical Co., Ltd., China).  
 
Page 105, Para 3.196  
In 2017, the Government adopted the State Program for the Development of  
Intellectual Property for the Period 2017 -2021. Its main purpose is to crea te the conditions for the 
functioning of the intellectual property 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 the use of WT/TPR/M/4 11/Add.1  
 
- 31 - 
 
  objects of intellectual property. The Government also adopted a Concept for Innovative Development 
of the Kyrgyz  Republic . 
Question : 
16. Please provide more information about the State Program for the Development of Intellectual 
Property for the Period 2017 -2021.  
 
Answer : One of the mechanisms for improving the interaction of all state, law enforcement and 
judicial bodies related to the le gal protection of the rights of authors, performers, producers of 
phonograms and broadcasting organizations, as well as owners of trademarks and patent owners is 
the State Program for the Development of Intellectual Property in the Kyrgyz  Republic  for 2017  – 
2021 years. The main objectives of the State Program are capacity -building for the creation of IP 
objects; improvement of mechanisms for obtaining rights and protecting IP objects; creation of 
conditions for the use of IP objects. Capacity -building invo lves encouraging authors to create new 
results of intellectual activity and increase the prestige of inventions, authors and researchers,  
formation of government orders for the creation of IP objects. Improving the mechanisms for 
obtaining rights and prote cting IP implies improving the procedures for granting rights to the results 
of intellectual activity, developing mechanisms for effective protection of IP rights in the digital 
environment, taking into account international experience. To create condition s for the use of IP 
objects, it is necessary to support activities on the use of IP by public sector organizations; - to 
stimulate small and medium -sized businesses to implement IP objects; to create demonstration and 
experimental platforms for interaction  between IP authors and business structures; develop public -
private partnerships in the creation and use of IP.  
 
Page 112, Para. 4.9 
As at 1  January  2020, application of the CET results in a simple average most -favoured nation (MFN) 
rate of 14.1% for agricu ltural products (WTO definition), compared with 8.4% in 2012. The tariff 
increases are particularly  
marked for animals and animal products, sugar and confectionery, and to some extent also for dairy 
products (Chart 4.2). In these product categories, the a verage CET is also well above rates at which 
the Kyrgyz  Republic  bound its import duties at the time of accession to the WTO.  
 
Question : 
17. Please explain why the tariff rates of some agricultural products in the Kyrgyz  Republic  are 
higher than its WTO accession commitments ? 
 
Answer : Upon joining the EAEU, the Kyrgyz  Republic , in accordance with the Treaty on the Eurasian 
Economic Union, applies the EAEU Unified Customs Tariff, which is higher than the previously applied 
customs tariff of the Kyrgyz  Republic . Within the framework of the EAEU CCT, the customs tariff 
rates for agricultural products are high, in particular, in 2015, the maximum customs tariff rates for 
certain types of meat products were equal to 80%, and in 2019 the y decreased to 65%.  
 
Page 142, Para 4.106  
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, 
(iv) the completion of feasibility studies and commencement of the construction of the Sino -Kyrgyz -
Uzbek Trunk Railroad and a railway branch connecting the north and the south of t he country. 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.  
 
Questio n: 
22. Could the Kyrgyz  Republic  provide more information about its completion of the feasibility 
studies and commencement of the construction of the Sino -Kyrgyz -Uzbek Trunk Railroad?  
 
Answer : To date, the countries participating in the project continue negotiations to determine one. 
the route of the railway through the territory of the Kyrgyz  Republic ; 2. track gauge, three . location 
of the transfer station. There is no information about the beginning of the construction of the railway.  
 WT/TPR/M/4 11/Add.1  
 
- 32 - 
 
  REPORT OF THE SECRETARIAT  
Page 34, Para. 2.38 
The Law contains provisions on the sett lement of investment disputes, including the possibility of 
recourse to international arbitration.  
Question : 
9. Does the Kyrgyz  Republic  have any plan to introduce international arbitration mechanism?  
 
Answer : 
To date, it is planned to develop a draft investment code, where, according to the Law, the arbitration 
court will consider investment disputes.  
 
Page 40 -41, Para 3.8 -3.9 
Since 2013, the Kyrgyz  Republic  has embarked on its single window application, known as the Single 
Window for Foreign Trade Inf ormation System (SWIS) or the Tulpar System . In February 2020, the 
Kyrgyz  Republic  passed a resolution that changed the rules for imports of goods from the EAEU.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.  
Questions : 
10. Please elaborate on the clearance procedure of impor tation. What certificates or documents may 
be involved? How long will it usually take to complete the procedure?  
 
11. How does SWIS facilitate the clearance procedure?   
 
Answers : 
0. The import registration procedure consists of the following steps:  
1. Submission to the customs authorities of preliminary information on goods planned for the 
movement of information in accordance with Article  11 of the Customs Code of the EAEU. Prelimin ary 
information can be submitted in the form of an electronic document, when importing goods to the 
customs territory of the EAEU through the checkpoints of the Kyrgyz  Republic , you can submit it on 
the official website of the State Customs Service (www.cu stoms.gov.kg).  
Upon arrival of the goods at the checkpoint, the person moving the goods must notify the customs 
authority of the arrival of the goods in the customs territory of the Union by submitting the 
documents and information provided for in Article  89 of the Customs Code of the EAEU.  
As a result of the notification of arrival, the carrier or other persons specified in Article  83 of the 
Customs Code of the EAEU, within 3 hours of the working time of the customs body from the moment 
of notification of arrival, must perform one of the customs operations related to:  
1) placing the goods in temporary storage;  
2) transportation (transportation) of goods from the places of arrival to the place of temporary 
storage;  
3) customs declaration of goods;  
4) placing  goods under the customs procedure of a free customs zone on the territory of a port FEZ 
or logistics FEZ;  
5) export of goods from the customs territory of the Union.  
The placement of goods for temporary storage is carried out in accordance with Chapter 16  of the 
Customs Code of the EAEU.  
Taking into account that there are no places intended for temporary storage and customs declaration 
at the automobile checkpoints of the Kyrgyz  Republic , vehicles with goods are sent to the places of 
customs clearance by p lacing them under the customs procedure "customs transit".  
2. When crossing the state border line, border control is carried out, if the goods are specific, then 
sanitary, veterinary and phytosanitary control is also carried out.  
3. Customs clearance invol ves the submission of the following documents: - certificate, contract, 
invoice, packing lists, etc.;  
- declaration is carried out in accordance with Chapter 17 of the Customs Code of the EAEU by 
submitting a customs declaration. At the same time, together  with the customs declaration, the 
customs authority must submit the documents provided for in Article  108 of the Customs Code of 
the EAEU.  
After payment of customs duties, the goods are released. The release of goods must be completed 
by the customs autho rity within 4 hours from the moment of registration of the customs declaration WT/TPR/M/4 11/Add.1  
 
- 33 - 
 
  or from the moment of occurrence of one of the circumstances specified in paragraph 2 of Article  119 
of the Customs Code of the EAEU. Answer  
 
11. The state enterprise "Single W indow Center" is the operator of the information system "single 
window" in the field of foreign trade (hereinafter -SWIS). SWIS allows participants of foreign 
economic activity to submit an application for obtaining permits and other documents in electronic  
format, as well as in electronic format  
provide the customs authorities with access to the issued documents necessary for performing 
customs operations. Electronic submission of an application to SWIS for obtaining other permits for 
foreign economic activ ity takes on average from 10 to 20 minutes. SWIS allows you to optimize 
administrative procedures and reduce administrative barriers in the preparation of documents for 
foreign trade operations. Data exchange between government agencies reduces the amount of data 
requested from applicants, as well as reduces the time for registering users of the system and filling 
out an application for obtaining a permit for foreign economic activity.  
 
Page 113, Para. 4.13 
Following the declaration of a state of emergency i n 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).  
Question : 
18. Is the temporary ban still valid?  
 
Answer : 
The temporary ban was in effect until September 2020. However, taking into account the situation 
related to the COVID ‑19 pandemic, the Government of the Kyrgyz  Republic  adopted Resolution 
No. 569 of 19 November  2020 "On the introduction of a temporary ban on the export (export) of 
certain types of goods from the Kyrgyz Republic outside the customs territory of the Eurasian 
Economic Union".  
 
REPORT OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC  
Page 19, Para. 4.80 
Investment policy in the Kyrgyz  Republic  is aimed at  improving the investment climate and 
stimulating the attraction of domestic and foreign investments by providing a fair, equal legal regime 
to investors and guaranteeing the protection of their investments in the economy of the 
Kyrgyz  Republic  
Question : 
25. Could the Kyrgyz  Republic  please give examples of its work in improving the business 
environment , providing fair and equal institutional arrangements, and protecting investors?  
 
Answer : 
Entrepreneurs were able to interact remotely with the tax service.  There is no need to buy an 
expensive cash register. New standards and technologies for accounting for retail sales have been 
introduced, technical and administrative requirements for the use of new Control Cash Machines 
(CCM) models have been simplified, the monopoly on the CCM market has been eliminated, security 
has been strengthened and the quality of transmitted fiscal information has been improved. The 
number of inspections of entrepreneurs has been significantly reduced. At the end of 2019, the total  
number of inspections decreased from 28,209 to 3,435, or 8.2 times. At the end of 2020, the number 
of inspections amounted to 3 ,162 or 92% of the level of 2019.  
The Law "On Investments in the Kyrgyz Republic", adopted on 27 March  2003 No.  66 (with additions 
and amendments to 26 December  2020 No.  12) provides for equal conditions of activity for Kyrgyz 
and foreign investors. The legal conditions for foreign investors are guaranteed to remain unchanged 
for 10 years from the date of registration . Investors are granted the right to appeal to international 
arbitration, bypassing domestic procedures. The freedom to repatriate capital, dividends and profits 
is also guaranteed. There are no restrictions on the transfer of income to a foreign currency,  including 
the transfer for further import or payment of future expenses . WT/TPR/M/4 11/Add.1  
 
- 34 - 
 
  SECRETARIAT REPORT  
Page 69, Para 3.78  
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 star ting 
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 excise duty on cigarettes. 
These principles of harmonization are pursuant to th e 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 Ministers of the member States . 
Question : 
12. Please explain the reasons for th e growing flow of illegal tobacco  products. Has any measure 
been taken to deal with it?  
 
Answer:  On 13 April 2018, the Law of the Kyrgyz  Republic  "On Amendments to Certain Legislative 
Acts on the introduction of an electronic system for the fiscalization of tax procedures" was adopted 
for No.  39, which created a legal basis, including for the introduction of label ling of tobacco products 
by means o f identification in the Kyrgyz  Republic . 
In order to implement the system of label ling tobacco products by means of identification, the 
Government of the Kyrgyz  Republic  adopted Resolution No.  554 of 17 October  2019 "On the 
procedure for labeling individua l goods by means of digital identification in the Kyrgyz Republic", 
which provides for the introduction of mandatory label ling for tobacco products from 1 July 2021.  
As a result of the introduction of tobacco product label ling by means of identification, t he following 
results are expected:  
* establishment of a national component of the system of traceability and turnover of goods for tax 
purposes.  
* protection of bona fide domestic producers and importers;  
* creation of a modern system for state fiscal ser vices to check and account for commercial products 
and their compliance with the declared characteristics;  
* legalization of the shadow economy;  
* increase of budget revenues;  
* creating conditions for the fair development of fair competition;  
* reduction of inspections by tax authorities;  
* transition to electronic interaction in the supply chain of goods and services.  
 
GOVERNMENT REPORT  
Page 19, Para.4.83  
The existing investment incentives and preferences are reflected in the Guide for Investors on 
Existing Investment Preferences in the Kyrgyz  Republic  and the Register of Investment incentives. 
The mechanism of public -private partnership was legally approved, and the Program for the 
Development of Public -private Partnership defines its application in  five areas: (i)  transport 
(roads,bridges, railways, and airports);  
 
Question : 
24. When did the Kyrgyz  Republic  approve the mechanism of public -private partnership? Please 
explain the applicability, specific regulations and current effect in the field of r ailway transportation. 
Which government department is responsible for promoting this work?  
 
Answer:  The Law of the Kyrgyz  Republic  "On Public -Private Partnership" was adopted on 
22 July 2019 No.  95, which defines policy measures to ensure the protection of  private property 
rights and the safety of investors' funds invested in the economy of the Kyrgyz  Republic . The norms 
pertaining to railway transport are not defined  in this Law . Decree of the G overnment KR dated 
28 June 2019 No.  333 created a state instit ution "PPP Cent re" under the Ministry of Economy of the 
Kyrgyz  Republic  ", the main tasks of which are: -providing effective coordination of activities and 
interaction of state executive bodies, local self -government bodies (hereinafter – LSG bodies), 
business entities, non -profit and scientific o -research organizations on the preparation and 
implementation of PPP projects;  
- assistance in the formation of a unified agreed state policy in the field of PPP;  
- development of recommendations and proposals on the implementation of policy and the use of 
PPP mechanisms;  
- solving complex and controversial issues in the field of PPP.  WT/TPR/M/4 11/Add.1  
 
- 35 - 
 
   
The Kyrgyz  Republic , by virtue of its membership in the EAEU, had 21 measures in force as at 
1 November  2020 (Tabl e 3.17). Most investigations and measures in force relate to China and 
Ukraine and  are concentrated on iron and steel products.  
Question : 
14. Please provide more information about the investigations and measures related to China.  
 
Answer : 
The information on the anti -dumping investigations related to China as at 14 May 2021 is provided 
below.  
 
Nº Product  Type of investigation 
(original/review)  Date of initiation  
1 Graphite electrodes with a diameter of 
520 mm or less  original  9 April 2020 
2 Aluminum cookware  original  29 June 2020 
3 Melamine  original  17 September  2020 
4 Crawler dozers  sunset review  30 July 2020 
5 Commercial vehicle tyres  sunset review  19 August  2020 
 
The EAEU is not conducting any countervailing or safeguard investigations related to China.  
In addition to the measures listed in Table 3.17 since 1 November 2020 the Kyrgyz  Republic  by 
virtue of its membership in the EAEU has two more anti -dumping  measur es related to China in force. 
The information on these measures is presented below.  
 
№ Product  Date of imposition  Length of application 
as at 14/05/2021  
1 Leaf-springs  21 March  2021 1 month, 3 weeks  
2 Welded tubes  14 March  2021 2 months  
 
The full information on the anti -dumping measures and investigations with respect to China is 
provided on the official website of the Eurasian Economic Commission available at:   
http://eec.eaeunion.org/comission/department/podm/ .  
Should China need more information the Kyrgyz  Republic  is ready to provide it.  
 
Part 3. Other questions.  
27. Please elaborate on government's agricultural support in recent years, including varieties, 
specific measures and total amount.  
 
Answer:  The obligations of the Kyrgyz  Republic  on the volume of state support for agriculture 
comply with the WTO  Agreement  on Agriculture.  
The structure of state support for agriculture in the Kyrgyz  Republic  is dominated by measures of 
the green box ", more than 60% of which is occupied by measures to finance infrastructure -related 
services. In general, the budget of the «green box» of the Kyrgyz  Republic  in 2020 was planned to 
increase by 4.2% compared to 201 9. 
Measures to control pests and diseases in the Kyrgyz  Republic  traditionally involve spending the 
state budget on chemical treatment of agricultural land against locust pests and the quarantine pest 
of the American  white butterfly, inspection of agricult ural crops to identify pests, laboratory tests to 
ensure phytosanitary and agro -chemical  safety. Funding for this area in 2020 was supposed to make 
up 5.6% of the «green box».  
28.7% of non -trade -distorting measures are advisory services provided under exte rnal financing 
projects.  
The structure of the «green box» measures is traditionally dominated by areas of pest and disease 
control, as well as services related to infrastructure – irrigation.  
The "amber box» of the Kyrgyz  Republic  consists exclusively of m easures not related to the 
production of a specific product, and about 90% of such measures in 2020 were aimed at subsidizing 
the interest rate on agricultural loans, which were carried out within the framework of the projects 
«Financing of Agriculture - 6,7,8» (hereinafter – «FA»), including for the purpose of lending to flour 
mills for the purchase of grain of food wheat with further processing into flour.  
In the structure of the «amber box» measures for 2020, the share of budget expenditures up to 
96.2 %  is planned to provide agricultural producers with preferential loans and leasing of agricultural 
machinery.  
 WT/TPR/M/4 11/Add.1  
 
- 36 - 
 
  Page 10, Para. 27 
Amendments to the Law on Subsoil Resources, adopted on 19  May 2018, introduced important 
changes regarding the criteria and proce dures for the award of mining licences. They also introduced 
a social package to improve relationships between the local population and subsoil users.  
Questio n: 
4. Does the Kyrgyz  Republic  take any legal measure to adjust the legal relations between 
stakeholders (including local residents) and licensees of mineral resources? If yes, please introduce 
the rights and obligations of both parties.  
 
Answer:  
According to the Law of the Kyrgyz  Republic "On Sub soil Resources", a social package is a voluntary 
agreement between a subsoil  user and a local self -government body to promote the socio -economic 
development of a region where a sub soil use object of national significance is located, which is 
prepared on the basis of a program for the socio -economic development of the local community.  
The obligation to draw up a social package applies only to sub soil objects of national significance 
that are at the stage of exploration and development of minerals . At the same time, the social 
package includes a program of investment in the social and living conditions of the local community 
(training, employment of the local population, construction of infrastructure and other conditions), 
on the territory of whic h the competitive objects are located.  
In order to improve the relationship between the local population and subsoil users, the bodies of 
local state administrations and local self -government are assigned the powers to:  
- carrying out work among the local population in order to prevent illegal interference in the activities 
of subs oil users;  
- providing access to social packages and annual reports on their implementation for the local 
population living in the territory of the administrative -territorial unit  where the subs oil object of 
national significance is located. Social packages and annual reports on their implementation are 
stored in the buildings of local self -government bodies and local state administration from the 
moment of their signing and/or rec eipt. 
 
Page 11, Para.32  
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 their implementation will create 
a basis for the removal of all existing 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 restrict ions in 
relation to carriers from EAEU member States.  
Question : 
5. Can companies from non -EAEU -members enjoy the same preferential treatments pursuant to the 
two Action Plans?  
 
Answer:  
The plan is aimed at liberalizing road transport between the EAEU coun tries by carriers of these 
countries, companies from countries that are not members of the EAEU cannot enjoy the same 
benefits, as this would be contrary to the EAEU norms.  
 
Page 16, Para.1.5  
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 administratively result in operational losses for state -owned 
companies in the energy se ctor. 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 effici ency of the energy 
sector, and the reliability of the electricity supply are discussed further in Section 4.2.2.  
 
Question : 
6. What measures have been taken by the Kyrgyz  Republic  to solve the problem of low prices for 
electricity ？ 
 
Answer:  In order to ensure the energy security of the Kyrgyz  Republic  and sustainable 
development, the Medium -term Tariff Policy (MTTP) of the Kyrgyz  Republic  for Electric and Thermal 
energy for 2014 -2017 was developed, which provided for the gradual achievement of their cost by WT/TPR/M/4 11/Add.1  
 
- 37 - 
 
  tariffs for electric and thermal energy. Electricity tariffs are reviewed annually in accordance with 
the MTTP.  
In 2020, the FTA for 2020 -2022 was approved by the Resolution of t he Government of the 
Kyrgyz  Republic  No. 188 of 27 March  2020. In this MTTP, electricity tariffs were kept unchanged.  
The Ministry of Energy and Industry of the Kyrgyz  Republic  has started developing a draft of a new 
medium -term tariff policy for electric and thermal energy for 2021 -2025. A broad public discussion 
of the MTTP concept is currently underway.  
The implementation of the MTTP will increase the revenue of the energy se ctor and reduce the 
shortage of funds in the energy sector.  
 
Page 117, Para. 4.34 
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 technologies 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 package to improve 
relationships between the local population and subsoil users.  
Question : 
20. Please introduce what actions the government will take to improve the investment climate and 
what legislation will be  introduced.  
 
Answer:   
Currently, in order to implement the Decree of the President of the Kyrgyz  Republic  "On Issues of 
reforming the mining industry of the Kyrgyz Republic" dated 29 January  2021, No.  5, a draft Mining 
Code of the Kyrgyz  Republic  is being  developed, aimed at creating an integral system of legislation 
in the field of subsoil use. The development of the Mining Code of the Kyrgyz  Republic , aimed at 
creating an integral system of legislation in the field of subsoil use, provides for:  
- develop ment of subsoil areas of national significance exclusively by a national mining company 
with 100% state participation in the authorized capital, with the exception of enterprises that have 
a licen ce and develop subsoil areas of national significance at the time of adoption of the Mining 
Code of the Kyrgyz  Republic ; 
- the state share in the development of mineral deposits that are not included in the register of 
subsoil areas of national significance.   
- conditions for the acquisition of the state share.  
A draft law has been developed and approved, which provides for the introduction of a provision for 
granting the right to use mineral resources on the basis of a decision of the Government of the 
Kyrgy z Republic  on the grounds of an appeal from economic entities and state -owned enterprises 
with a 100% state share. After the approval of the draft law, a by  law will be developed that provides 
for the procedure and mechanisms for implementing such a norm.  
 
Question : 
19. Item 4.28. Foreign and local entities may participate on equal terms in the 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 au ction 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 lice nce is 
issued . 
 
Answer : 
Laws and regulations on procedures for obtaining a licen ce for  
the right to use mineral resources  
In accordance with Article  22 of the Law of the Kyrgyz  Republic  "On Subs oil Resources" dated 
19 May 2018 No.  49, the right to use subsoil resources can be granted through tenders, auctions 
and according to the "first submitted application  rule. 
Tenders are held for subsoil areas of national significance by the decision of the Government of the 
Kyrgyz  Republic . 
Auctions are held for subsoil areas included in the relevant register.  
The register of auction sites of subsoil resources is formed and approved by the authorized state 
body for subsoil use in accordance with the criteria established by the Government of the 
Kyrgyz  Republic . 
The register must necessarily contain the coordinates of the corner points of the auction objects.  WT/TPR/M/4 11/Add.1  
 
- 38 - 
 
  In cases where an auction for a subsoil plot is declared invalid twice in a row, a break is declared for 
at least one year.  
The right to use the subsoil un der the "first submitted application" rule is granted:  
1) for subsoil areas, with the exception of those provided by tender or auction;  
2) for subsoil areas that are not related to the geological study of the subsoil and the development 
of mineral deposits . 
At the same time, according to Article  19 of the law:  
1. Subsoil users may be legal entities established in accordance with the legislation of the 
Kyrgyz  Republic , as well as individuals, including foreign citizens, registered as individual 
entrepreneurs  under the legislation of the Kyrgyz  Republic . 
2. When obtaining and exercising the rights to use mineral resources, it is not allowed to discriminate 
against citizens and legal entities, respectively, on the basis of citizenship or the country of 
registra tion. 
3. Foreign legal entities have the right to participate in tenders and auctions for the granting of 
subsoil use rights or to apply for the right to use the subsoil under the "first submitted application" 
rule. 
4. A foreign legal entity recognized as the winner of an auction or tender, or in favo ur of which a 
decision was made to grant the right to use the subsoil under the "first submitted application" rule, 
is obliged to create a subsidiary legal entity in the Kyrgyz  Republic  with a 100% equity parti cipation 
in order to issue a licen ce for the right to use the subsoil.  
5. If a concession agreement or a production sharing agreement is concluded as a result of a tender, 
the requirements of part 4 of this article shall be applied with the exceptions esta blished by the 
relevant legislation.  
Resolution of the Government of the Kyrgyz  Republic  No. 561 of 29 November  2018 approved:  
- Regulation on the procedure for licensing of subsoil use (Annex 1 to the Resolution);  
- Regulations on the procedure and condit ions for holding a tender for the Right to use Mineral 
resources (Annex 2 to the resolution);  
- Regulations on the procedure and conditions for conducting an auction for the Right to use Mineral 
resources (Annex 3 to the resolution);  
- Classification of de posits and their manifestations by mineral reserves (Annex 4 to the resolution).  
- form of information (information) about the beneficiaries of subsoil users and / or applicants for 
the right to use subsoil resources (annex 5 to the resolution).  
In additio n, a draft law has been developed and approved, which provides for the introduction of a 
provision for granting the right to use mineral resources on the basis of a decision of the Government 
of the Kyrgyz  Republic  on the basis of an appeal from economic e ntities and state -owned enterprises 
with a 100% state share . 
 
Page 85, Para 3.127  
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 enterpri ses located in Bishkek and Osh.  
Question : 
15. Please provide more information about the new project . Please  give some examples of what 
kind of support the enterprise has received. Does the new project also apply to foreign invested 
enterprises?  
 
Answer:  By Order of the Government of the Kyrgyz  Republic  No. 118-r of 3 May 2019, the project 
on financing the development of processing and processing enterprises was approved. The project 
should be financed from the republican budget and financial and c redit organizations.  
However, due to objective circumstances, this decision of the Government of the Kyrgyz  Republic  
was not implemented in a timely manner.  
 
Page 116, Para 4.28  
Foreign and local entities may participate on equal terms in the 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 th e 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.  
Question : 
19. Please introduce the relevant laws and regulations on the procedures for obtaining licen ces, 
auction and tender.  WT/TPR/M/4 11/Add.1  
 
- 39 - 
 
  Answer:  In accordance with Article  22 of the Law of the Kyrgyz  Republic  "On Sub soil Resources" 
dated 19 May 2018 No.  49, the right to use sub soil resources can be granted through tenders, 
auctions and according to the "first submitted application"  rule. 
Tenders are held for sub soil areas of national significance by the decision of the Government of the 
Kyrgyz  Republic . 
Auctions are held for sub soil areas included in the relevant register.  
The register of auction sites of sub soil resources is formed and approved by the authorized state 
body for sub soil use in accordance with the criteria established by the Government of the 
Kyrgyz  Republic . 
The register must necessarily contain the coordinates of the corner points of the auction objects.  
In cases where an auction for a subsoil plot is declared invalid twice in a row, a break is declared for 
at least one year.  
The right to use the subsoil under th e "first submitted application" rule is granted:  
1) for sub soil areas, with the exception of those provided by tender or auction;  
2) for sub soil areas that are not related to the geological study of the sub soil and the development 
of mineral deposits.  
At the same time, according to Article  19 of the law:  
1. Sub soil users may be legal entities established in accordance with the legislation of the 
Kyrgyz  Republic , as well as individuals, including foreign citizens, registered as individual 
entrepreneurs under  the legislation of the Kyrgyz  Republic . 
2. When obtaining and exercising the rights to use mineral resources, it is not allowed to discriminate 
against citizens and legal entities, respectively, on the basis of citizenship or the country of 
registration.  
3. Foreign legal entities have the right to participate in tenders and auctions for the granting of 
subsoil use rights or to apply for the right to use the subsoil under the "first submitted application" 
rule. 
4. A foreign legal entity recognized as the wi nner of an auction or tender, or in favo ur of which a 
decision was made to grant the right to use the subsoil under the "first submitted application" rule, 
is obliged to create a subsidiary legal entity in the Kyrgyz  Republic  with a 100% equity participati on 
in order to issue a licen ce for the right to use the subsoil.  
5. If a concession agreement or a production sharing agreement is concluded as a result of a tender, 
the requirements of part 4 of this article shall be applied with the exceptions establishe d by the 
relevant legislation.  
Resolution of the Government of the Kyrgyz  Republic  No. 561 of 29 November  2018 approved:  
- Regulation on the procedure for licensing of sub soil use (Annex 1 to the Resolution);  
- Regulations on the procedure and conditions f or holding a tender for the Right to use Mineral 
resources (Annex 2 to the resolution);  
- Regulations on the procedure and conditions for conducting an auction for the Right to use Mineral 
resources (Annex 3 to the resolution);  
- Classification of deposits  and their manifestations by mineral reserves (Annex 4 to the resolution).  
- form of information (information) about the beneficiaries of sub soil users and / or applicants for 
the right to use sub soil resources (annex 5 to the resolution).  
In addition, a draft law has been developed and approved, which provides for the introduction of a 
provision for granting the right to use mineral resources on the basis of a decision of the Government 
of the Kyrgyz  Republic  on the basis of an appeal from eco nomic entities and state -owned enterprises 
with a 100% state share of participation.  
 
Page 130, Para 4.70  
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. 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 banks.  
Questio n: 
21. Please provide more information about the development of microfinance sector. Why does this 
sector continue to rely heavily on foreign credits or loans but not domestic financing sources?  
 
Answer:  According to the results of 2020, the system of non -bank financial and credit organizations 
(NFCO) and other legal entities licensed and regulated by the  NBKR included one specialized financial 
and credit organization, 92 credit unions, 134 microfinance organizations, including nine 
microfinance companies, 87 microcredit companies and 38 microcredit agencies, 387 exchange WT/TPR/M/4 11/Add.1  
 
- 40 - 
 
  bureaus, two credit bureaus and one guarantee fund. The main source of the microfinance sector 
remains external loans and credits, which is due to insignificant internal sources of financing or their 
unavailability.  
Other questions  
26. Does the Kyrgyz  Republic  plan to formulate new tax policies that are beneficial to enterprises in 
the field of mineral resources development?  
Answer:  A new version of the Tax Code of the Kyrgyz  Republic  is currently being de  
 
Page 145, Para 4.121  
A recent study argues that harmon ization 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.. . The study recommends the progressive implementation of a licensing system for 
domesti c trucks, increased enforcement, especially regarding weight regulations, and the 
development and implementation of training programmes.  
Question : 
23. How will the government ensure a fair competitive environment for international operators in 
its domestic market of transport infrastructure?  
 
Answer:  In order to implement fair and equal access for all participants in the field of cargo 
transportation, a n interdepartmental working group together with the Ministry of Transport and 
Communications of the Kyrgyz  Republic  has developed draft regulatory legal acts regulating both in 
the field of licensing of transportation, including cargo, and in the field of weight and size indicators. 
Currently, the approval procedure is being carried out.  
The Kyrgyz  Republic  is a member of the Eurasian Economic Union, in which the Technical Regulation 
of the Customs Union 018/2011 "On the safety of wheeled vehicles" is in fo rce. 
At the same time, it should be noted that technical regulation in relation to wheeled vehicles is 
carried out in order to ensure a socially acceptable level of their safety, as well as the fulfil ment by 
the member States of the Customs Union of their obligations arising from participation in 
international agreements in the field of safety of wheeled vehicles. The requirements of this technical 
regulation are harmonized with the requirements of the Regulations of the United Nations Economic 
Commission f or Europe adopted on the basis of the "Agreement concerning the Adoption of Uniform 
Technical Prescriptions for Wheeled Vehicles, Equipment and Parts that can be Installed and/or Used 
on Wheeled Vehicles and on the Conditions for Mutual Recognition of Appr ovals Issued on the Basis 
of These Prescriptions", concluded in Geneva on 20 March  1958, Global Technical Regulations, 
adopted on the basis of the "Agreement on the Introduction of Global Technical Regulations for 
Wheeled Vehicles, Equipment and Parts that  can be Installed and/or Used on Wheeled Vehicles", 
concluded in Geneva on 25 June 1998 (hereinafter referred to as the 1998 Agreement) and the 
Regulations adopted on the basis of the "Agreement on the Adoption of Uniform Conditions for 
Periodic Technical Inspections of Wheeled Vehicles and on the Mutual Recognition of Such 
Inspections", concluded in Vienna on 13 November  1997 (hereinafter referred to as the 1997 
Agreement).  
With regard to the overall and weight restrictions applicable to vehicles, they are set out in Annex 
No. 5 of the specified Technical Regulations.  
 
  WT/TPR/M/4 11/Add.1  
 
- 41 - 
 
  KINGDOM OF SAUDI ARABIA  
Secretariat Report WT/TPR/G/411  
3.2 Measures Directly Affecting Exports  
P. 83 – Paragraph 3.2.4 Export support and promotion  
3.119.  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 P romotion 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 foreign markets. The portal provides statistics, gives in formation 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 materials for certain 
sectors or markets.  
Question 1 : We congratulate Kyrgyz  Republic  for its Export Development Program for 2019 -22 and 
its programme of activities along with its action plan. We kindly request the Kyrgyz government to 
provide us with further details about the export trade portal as one of the  initiatives to help improve 
the situation of export growth? We would like to know if there will be any other future initiatives to 
support and promote exports? If yes, what are these initiatives?  
 
Answer:  The portal ( www.export.gov.kg ) contains analytical documents for exporters regarding 
market opportunities, market profiles, as well as guidelines for exporting to foreign markets. Online 
tools for exporters have been developed in the "Export School" section:  
1) "Seven Steps to Export" – according to the guidelines, the exporter will be able to prepare for 
entering the international market: from identifying promising export markets to developing a market 
entry strategy and drawing up an action plan;  
2) Trade Analysis Tools – These tools enable businesses to identify export and import opportunities, 
compare market access requirements, track national trade performance, and make well -informed 
trade decisions.  
3) Guide to Successful Trade Show Participation  – The guide is designed to help SMEs successfully 
cope with this task and provide practical advice on successful planning of participation in an overseas 
trade show, examines the theoretical foundations of holding trade shows and options for making 
decisi ons about participating in them.  
In addition, 125 domestic exporters and manufacturers with manufactured/exported products and 
contact information are presented on the specified portal in the section for importers. This section 
allows foreign buyers to con tact companies directly.  
 WT/TPR/M/4 11/Add.1  
 
- 42 - 
 
  EUROPEAN UNION  
WT/TPR/S/411 – WTO Secretariat's Report  
Paragraph 1.23, page 23, on Foreign Direct Investment (FDI)  
According to the Secretariat's Report, despite maintaining an open investment regime, FDI inflows 
to the Kyrgyz  Republic  are not substantial.  
EU Question N°2: What measures does the Government intend to implement to increase FDI 
inflows?  
 
Answer : In order to introduce new mechanisms to stimulate the inflow of foreign direct investment 
to the Kyrgyz  Republic , the Law of the Kyrgyz  Republic  "On Amendments to Certain Legislative Acts 
of the Kyrgyz Republic on Investment Support" entered into force on  20 January  2021.  
This Law provides for the following rules that affect issues related to investment:  
1. The concept of "investment lots" is introduced, which means a set of solutions provided to the 
investor, taking into account the specifics of the initi ated projects, which contain an investment offer, 
project infrastructure, assets, analysis of the raw material base and sales markets, the provision of 
permits and preferences;  
2. The transfer of land has been simplified by transferring the right of transf er to the district state 
administration:  
- pastures, hayfields and types of non -agricultural land of the category of agricultural land in other 
types or in other categories of land, except for the transfer of land for the construction of housing 
and agricu ltural land;  
-all categories of land and types of land allocated for cemeteries, drinking water supply facilities, 
wastewater treatment plants, landfills, and other categories of land;  
- the transfer of agricultural land to another category is allowed in c ases related to the formation of 
an investment lot included in the register of the authorized body for the promotion of investments;  
3) - the threshold amount of investment in an investment project has been reduced from US $50 
million to US $10 million, wh ich allows for the conclusion of an Investment Agreement through direct 
negotiations between the Government of the Kyrgyz  Republic  and the investor.  
4) amendments have been made to the legislation on PPP:  
- PPP projects are divided into large and small projects;  
- it is possible to hold a tender if there is one application for participation in the qualification selection 
and/or if there is at least one tender offer at the stage of selecting the winner of the tender for large 
projects.  
- simplified procedures for initiating and preparing PPP projects;  
-taking into account the situation with the global coronavirus pandemic and the need to implement 
investment projects to urgently solve economic problems as a result of this problem, it is possible 
to determine a private partner on the basis of direct negotiations in the event of a state of emergency 
or an emergency situation on the territory of the republic;  
- for the purpose of high -quality implementation of projects, it is possible to receive comments  for 
participation in the tender from the bidders to make changes to the requests for qualifications and 
proposals, as well as to the draft PPP agreement.  
 
2. TRADE AND INVESTMENT REGIMES  
Paragraph 2.10, page 28, on political stability and economic perform ance  
The Secretariat's Report indicates that " The Government acknowledges the need to improve the 
quality of governance, as illustrated by various recent reform efforts directed at combating 
corruption, enhancing the integrity of the judicial and law enfor cement system, and improving the 
efficiency and transparency of public administration more generally ". 
EU Question N°3: What specific reforms for strengthening governance, and thereby improving the 
business and investment climate has the Kyrgyz  Republic  recently implemented and/or intends to 
implement?  
 
Answer : The Council for Business Development and Investment under the Government of the 
Kyrgyz  Republic  has been established, which develops proposals and recommendations for state 
bodies to improve the b usiness environment and investment climate, reform the public 
administration system in order to improve the regulatory functions of the state and determine the 
strategy and priorities for attracting investment. During the work of the Council, more than 160  
regulatory legal acts were initiated to improve the business environment in Kyrgyz  Republic . The 
most significant and implemented initiatives are the creation of a High -Tech Park (HTP), optimization 
of the licensing regulatory system (LRS law, guillotine principle, Analysis of Regulative Effect), PPP 
law, risk -based checks, electronic visa, Investment Promotion Agency (IPA), improvement of the WT/TPR/M/4 11/Add.1  
 
- 43 - 
 
  World Bank's "Doing business" rating from 98 to 46 places, transfer of tax administration of the 
Social Fund to th e State Tax Service. And work was also carried out to improve tax administration 
and social contributions, which led to an increase in the receipts of insurance premiums to the 
budget.  
EU Question N°4: How the ongoing comprehensive legislative inventory ac cording to the "guillotine 
principle" will affect the business and investment climate?  
 
Answer : The inventory of legislation in accordance with the "guillotine principle" makes it possible 
to eliminate existing gaps, duplicate and redundant provisions, as  well as internal conflicts and 
contradictions in the legislation. The purpose of this work is to protect the rights and interests of 
citizens and legal entities for compliance with the Constitution, the principles of social justice and 
partnership.  
 
Parag raph 3.110, page 80, on export bans  
The Secretariat's Report notes that, to ensure the country's food security, the Kyrgyz  Republic  
adopted the Government Resolution in November 2020, which has for six months banned the 
exportation of certain types of agri cultural products (live animals, wheat, and rice) to places outside 
the EAEU customs territory.  
EU Question N°13: As the six -month period is coming to an end, does the Kyrgyz  Republic  intend 
to extend this export ban?  
 
Answer : Answer: Resolution of the Gov ernment of the Kyrgyz  Republic  No. 174 of 22/03/2020  "On 
the introduction of a temporary ban on the export of certain types of goods from the Kyrgyz Republic" 
established a temporary ban for a period of six months on the export (export) of certain types of  
goods from the Kyrgyz  Republic  outside the customs territory of the Eurasian Economic Union.  
This resolution was revoked by the Resolution of the Government of the Kyrgyz  Republic  No. 569 of 
19 November  2020 "On the introduction of a temporary ban on the export (export) of certain types 
of goods from the Kyrgyz Republic outside the customs Territory of the Eurasian Economic Union". 
The issue of extending this ban will be resolved based on the monitoring of the current situation, 
taking into account the  COVID‑19 pandemic.  
 
Paragraph 4.36, page 117, on renewable energy  
The Report states that the Kyrgyz  Republic  has a huge potential for the development on renewable 
energy, but only "less than 1% of that potential is currently used".  
EU Question N°17: Have the Government and especially the recently created Ministry of Energy 
and Industry made any recent plans to reform country's energy sector and to further engage in the 
development of renewable energy? If yes, have they set any specific targets?  
 
Answer :  
In order to ensure the energy security of the Kyrgyz  Republic , sustainable development, as well as 
stable and reliable functioning of the country's energy sector, it is planned to build electric power 
facilities (mainly small hydroelectric power plants and  renewable energy facilities), modernize and 
reconstruct power plants, substations, power transmission lines and other electric power facilities. 
Promotion of the development of renewable energy facilities is regulated in accordance with the 
provisions of the Laws of the Kyrgyz  Republic  "On Renewable Energy Sources" and "On Energy 
Conservation". In order to prevent the occurrence of a shortage of electric power, the Medium -term 
Tariff Policy of the Kyrgyz  Republic  for Electric and thermal energy for 2014 -2017 was developed, 
the main goal of which was to gradually achieve their cost by tariffs for electric and thermal energy.  
Although the adopted document made it possible to reduce the electricity deficit, it was not possible 
to achieve this goal.  
In 2020, th e Government of the Kyrgyz  Republic  approved the Medium -term Tariff Policy for 
2020-2022 with similar goals by Resolution No.  188 of 27 March  2020.  
To date, the development of a draft of a new medium -term tariff policy for electric and thermal 
energy for 2 021-2025 has begun. A broad public discussion of the FTA concept is currently underway.  
If the project is adopted, the pace of changes in electricity tariffs until 2025 will be determined, 
which will greatly facilitate consumers ' planning of the corresponding costs in the future. The 
revenues of the energy sector will increase, reducing the shortage of funds in the energy sector.  
 
Paragraph 4.42, page 119, on electricity  
The electricity sector has been constrained by debts and does not have suffic ient financial means to 
undertake investments that would prevent shortage of electricity. The Report indicates that the WT/TPR/M/4 11/Add.1  
 
- 44 - 
 
  Government's budget is limited too and the Kyrgyz  Republic  might have to "turn to its international 
partners for financing".  
EU Question N°19: In light of the latest announcements
1 by the Kyrgyz leadership, could the Kyrgyz Government elaborate on concrete next steps and 
timelines in order to reform struggling electricity sector.   
 
Answer:  To date, the developm ent of a draft of a new medium -term tariff policy for electric and 
thermal energy for 2021 -2025 has begun. A broad public discussion of the FTA concept is currently 
underway.  
If the project is adopted, the pace of changes in electricity tariffs until 2025 will be determined, 
which will greatly facilitate consumers ' planning of the corresponding costs in the future. The 
revenues of the energy sector will increase, reducing the shortage of funds in the energy sector.  
 
Paragraph 4.106, page 142, on transport services  
The Report states that " To improve the transport 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 
preservation 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 const ruction of the Sino -Kyrgyz -Uzbek Trunk Railroad and a railway branch connecting the north 
and the south of the country; and (v)  the creation of an air transport hub ". 
EU Question N°20: Could the Kyrgyz  Republic  explain in more detail what the objective of ensuring 
of transport independence entails?  
 
Answer : In the field of transport infrastructure, freedom of movement of the population will be 
ensured. In the period up to 2023, agreements will be reached and con struction of the China – 
Kyrgyz  Republic  – Uzbekistan railway section will begin. In accordance with international standards, 
rehabilitation and construction of individual sections of the Torugart – Naryn – Bishkek, Irkeshtam 
– Osh – Batken – Isfana, Suusa myr – Talas – Taraz, Tyup -Kegen, Aral -Suusamyr (connecting the 
Bishkek -Osh and North -South highways), Jalal -Abad – Madaniyat, Bishkek – Kara – Balta (sections 
of the Bishkek – Osh highway), Issyk -Kul ring road (Balykchi – Cholpon -Ata – Karakol – 
Bokonbayev o – Balykchi).  
The construction of an alternative North -South highway (Balykchy – Jalal-Abad), bypass roads of 
the cities of Bishkek, Osh and Uzgen will be completed. It is planned that due to these measures, 
passenger and cargo traffic carried out by land  transport will increase. Free movement regimes will 
be provided along the entire length of transnational highways based on the principle of "green 
corridors" and simplified forms of transit regulation with neighboring countries, primarily with 
Kazakhstan,  China, and Uzbekistan.  
EU Question N°21: How far the construction of a railway line connecting China and Uzbekistan via 
the Kyrgyz  Republic  has advanced and what are the main factors hindering progress on this project?  
 
Answer : To date, the participating countries of the project continue negotiations on the definition 
of one. the route of the railway through the territory of the Kyrgyz  Republic ; 2. the width of the 
track, three . the location of the transshipment station. There is no information about the b eginning 
of the construction of the railway.  
 
Paragraph 4.122, page 145, on rail transport services  
The Secretariat's Report mentions that "upgrading the railway network and building a north -south 
railway corridor and a China -the Kyrgyz  Republic -Uzbekistan railway is seen as priorities for the 
medium and long terms ". 
EU Question N°23: The EU would be very interested to get detailed information on how the Kyrgyz 
Government plans to address these priorities.  
 
Answer : In the priority tasks for the development of the railway network and the construction of 
the north -south railway corridor, the Kyrgyz  Republic  is interested in starting the construction of the 
China – Kyrgyz  Republic  – Uzbekistan railway and the full elec trification of the existing 
Lugovaya -Balykchi railway network.  
 
 
1 https://kloop.kg/blog/2021/04/21/zhaparov -predlozhil -povysit -tarify -na-elektroenergiyu -dlya-vyhoda -
iz-energeticheskogo -krizisa -k-2025-godu/ . WT/TPR/M/4 11/Add.1  
 
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  Paragraph 4.123, page 146  
The Secretariat's Report indicates that the share of rail freight remains small but has increased 
somewhat in recent years. Footnote 163 indicates that from 2010 to 2 017, the share of rail in the 
total volume of freight traffic increased from 2.7% to 6%.  
EU Question N°24: The EU would be interested in knowing whether the increase in rail freight has 
also continued between 2017 and 2021. The EU would also like to unders tand how this relates to 
the data provided in the Government report which seems to indicate  that there has actually been a 
slowdown in freight turnover in railway transport since 2012 and a decrease in 2015 -2016.  
 
Answer : According to the NSC, the total trade turnover of the Kyrgyz  Republic  has shown growth 
since 2017, which has led to an increase in the volume of cargo turnover of the Kyrgyz  Republic  on 
railway transport. The slowdown in freight turnover on railway transp ort since 2012 is due to an 
increase in railway tariffs for transportation, and the decrease in 2015 -2016 was due to a decrease 
in total trade turnover during the transition period after the Kyrgyz  Republic 's accession to the EAEU 
(this is due to changes i n the trade regime, adaptation of TBT and SPS procedures).  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
Paragraph 3.30, page 48, on customs valuation  
The Secretariat 's Report provides that the Kyrgyz  Republic  has implemented certain changes to its 
customs r egime, including the entry into force of Law No.  52 of 24  April 2019 on Customs 
Regulation.  
 
EU Question N°12: Could the Kyrgyz  Republic  please indicate if it will notify its updated customs 
valuation legislation to the Committee on Customs Valuation?  
 
Answer: Yes, the Kyrgyz  Republic  will notify the Customs Valuation Committee about  the main 
provisions of the Law of the Kyrgyz  Republic  "On Customs Regulation" dated 24 April 2019.  
 
4. TRADE POLICIES BY SECTOR  
Paragraph 4.2, page 110 , on sustainable development and agriculture  
The National Sustainable Development Strategy for the Period 2013 -2017 prioritized sustainable 
development of several strategic industries including agriculture. In 2017 it was replaced by the new 
five-year policy – Forty Steps to New Era for the Period 2018 -2023.  
 
EU Question N°15: What are the strategic industries as well as the concrete objectives, projects 
and specific targets of the Forty Steps to New Era strategy in regard to  green transitions and 
sustainable de velopment?  
 
Answer:  The Development Strategy of the Kyrgyz  Republic  until 2040 is aimed, first of all, at the 
development of human potential. The main priority areas of economic development are the light and 
manufacturing industries, mining, agriculture and agricultural processing, tourism. The main goal of 
the Strategy i s to maximize the use of local raw materials and labo ur resources, which provide a 
rapid increase in added value and exports. By the Resolution of the Government of 
14 November  2019 No.  605, the Green Economy Development Program for 2019 -2023 was adopted. 
In this program, the priority areas were identified:  
•"Green" energy;  
•"Green" agriculture;  
•"Green" industry;  
•Low carbon and environmentally friendly transport;  
•Sustainable tourism;  
•Municipal waste management;  
•"Green" cities;  
It also identified cross -sectoral areas that support the transition to an inclusive green economy:  
•Sustainable financing;  
•Fiscal incentives;  
•Sustainable government/green procurement;  
• Capacity -building and awareness.  
 
Paragraph 2.23, page 31, on GSP+  
The Secre tariat's Report mentions that one of the objectives of Government's foreign economic 
policy is to " adopt measures to effectively use the European  Union 's Generalized System of 
Preferences Plus (GSP+) scheme ". While there has been a progress made in the utilization of the WT/TPR/M/4 11/Add.1  
 
- 46 - 
 
  GSP+ (from 53% in 2016 to 59% in 2019), there is room for improvement as the Kyrgyz  Republic 's 
GSP utilization rate is lower compared to other Central Asian beneficiaries. Additionally, GSP+ 
eligible products made up less than 1% of Kyrgyz  Republic 's total exports to the EU.  
EU Question N°5: What concrete measures does the Kyrgyz  Republic  consider adopting in order to 
use the EU's GSP+ scheme more effectively?  
 
Answer:  In order to increase the country's export potential, Government Resolution No.  596 of 
20 December  2018 approved the Program of the Government of the Kyrgyz  Republic  for the 
Development of Exports of the Kyrgyz  Republic  for 2019 -2022, as well as the Action Plan for its 
implementati on. 
In the framework of the action plan on a regular basis we are consulting on export -oriented products 
in the direction of the EU domestic exporters, and consumer products, as well as the awareness of 
producers on production requirements and preferences of the consumers, marketing and 
advertising, new markets or the trade partners etc.  
The training of veterinary laboratories to be accredited to ISO/IEC 17 ,025:2017.  
With the assistance of donors, the HACCP/ISO22000 principles were implemented and certified  at 
22 enterprises, and specialists were trained in the quality management system.  
 
Paragraph 4.134, page 148, on tourism  
The Secretariat's Report states that measures have been undertaken by the Government to facilitate 
tourism during the review period in cluded liberalization of the regimes for visas and air transport.  
EU Question N°26: We note that the Kyrgyz Parliament started discussing removing visa 
requirements for the Member States of Bulgaria, Cyprus and Romania. Would the Kyrgyz side 
elaborate on t he progress of this decision and would it be possible to provide an indicative date for 
entering into force of such decision?  
 
Answer:  Currently, the Resolution of the Government of the Kyrgyz  Republic  No. 75 of 
5 March  2021 approved the draft Law of the Kyrgyz  Republic  "On Amendments to the Law of the 
Kyrgyz  Republic  "On the Introduction of a visa -free regime for Citizens of Certain States for a period 
of 60 Days ", which was adopted in the first reading session by the Jogorku Kenesh of the 
Kyrgyz  Republic on 21 April 2021 (No.  45-15-VI).  
Bulgaria, Cyprus and Romania are among the countries whose citizens are subject to a unilateral 
visa-free regime for up to 60 days.  
Secretariat Report  
Paragraph 2.31, pages 32 -33, on customs control between the Kyrgyz  Republic  and 
Kazakhstan  
The Secretariat's Report here indicates that customs control between these two countries was 
abolished. However, further in the Report (page 90 para . 3.148.) it is stated that some customs 
controls (namely veterinary -sanitary controls) between the Kyrgyz  Republic  and Kazakhstan remain.  
EU Question N°7: What is the current situation and what are the plans for the SPS controls on the 
Kyrgyz -Kazakh border?  
 
Answer:  According to the Decision of the Council of th e Eurasian Economic Commission No.  26 of 
29 March  2019 "On the results of the assessment of the veterinary and sanitary control system of 
the Kyrgyz Republic", taking into account the information of the Kyrgyz  Republic  on the elimination 
of shortcomings, t he EEC Council approved the results of the assessment of the veterinary and 
sanitary control system of the Kyrgyz  Republic . 
According to the results of the minutes of the meeting of the representatives of the Kazakh and 
Kyrgyz sides dated 17 /03/2019  on the  issue of eliminating the comments identified by the results 
of the last inspection in December 2016, in accordance with paragraph 2. the parties agreed to 
maintain and operate veterinary posts (veterinary and sanitary) on the Kyrgyz – Kazakh section of 
the state border and after recognizing the equivalence of the veterinary control system of the 
Kyrgyz  Republic  until a certain time.  
EU Question N°9: How will then the control of SPS products entering the Kyrgyz market from third 
countries (non -EAEU) by tran sit via EAEU countries be arranged?  
 
Answer:  Veterinary and sanitary control of animal products entering the market of Kyrgyz  Republic  
from third countries will be controlled in accordance with the Decision of the Customs Union 
Commission of 18 June 2010 N o. 317 "On the application of veterinary and sanitary measures in the 
Eurasian Economic Union".  
 WT/TPR/M/4 11/Add.1  
 
- 47 - 
 
  Paragraphs 2.30 -32, page 32 -33, on accession to the Eurasian Economic Union  
In 2015, the Kyrgyz  Republic  joined the Eurasian Economic Union. In this process, the 
Kyrgyz  Republic  increased many tariffs beyond its commitment to the WTO to align them to the 
Eurasian Unified Custom Tariff. Since the Kyrgyz  Republic  has been negotiating compensations with 
WTO Mem bers impacted by these increases of tariffs  under the Article  XXIV:6 GATT procedure. Six 
years after, negotiations are still going on. One reason, it appears, is the complexity of the 
functioning of the Eurasian Union and the diverging positions of its mem bers. 
EU Question N°10: Could the Kyrgyz  Republic  give an update of these negotiations ? Notably, could 
it present how it intends proceeding to offer genuine compensation particularly on agricultural 
products and finali ze these negotiations swiftly?  
 
Paragr aph 2.32, page 33  
The Secretariat's Report mentions that " 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 i t made in its WTO accession process regarding its 
customs tariff bindings ". 
EU Question N°11: What are the concrete initiatives under consideration on customs regulations 
after the accession to the Custom Union? More generally, what is envisaged by the Kyrgyz 
Government to improve the overall SPS framework?  
 
10. Answer:  This question relates to the current process of negotiations of the Kyrgyz  Republic  
within the WTO on changing tariff obligations, according to Article  XXVIII: 5 of the GATT.  
 
11. Answer:  In order to improve the overall structure of veterinary and sanitary control, the 
Government of the Kyrgyz  Republic  approved the Action Plan of the Program of the Government of 
the Kyrgyz  Republic  "Development of the Veterinary Service of the Kyrgyz Repub lic for 2018 -2023", 
which provides for improving the overall structure of veterinary and sanitary control in the 
Kyrgyz  Republic . 
 
Paragraph 3.176, pages 98 -99, on digitalization of public procurement system  
Digitalization of the public procurement system is one of the Kyrgyz  Republic 's requirements under 
the provisions the EAEU Treaty. The Report indicates that the "full transition to digital signature was 
expected from 1  January  2021".  
EU Question N°14: Did the Government accomplish the full transition to digital signature the way 
it was planned?  
 
Answer:  Yes. According to the Order of the Government of the Kyrgyz  Republic  No. 286-R dated 
20/08/2020 , work has begun on issuing certificates of electronic signature verification keys formed 
throug h "cloud technologies" on a free basis for individuals and legal entities. This event will last 
until 31 December  2021. Currently, an action plan is being developed for the mutual recognition of 
electronic digital signatures between the EAEU countries.  
 
Paragraph 4.42, page 119, on electricity  
The electricity sector has been constrained by debts and does not have sufficient financial means to 
undertake investments that would prevent shortage of electricity. The Report indicates that the 
Government's budget is limited too and the Kyrgyz  Republic  might have to "turn to its international 
partners for financing".  
EU Question N°18: Has there been any agreement made already between the Kyrgyz  Republic  and 
international development partners regarding the financial support for Kyrgyz investment plans in 
the field of electricity?  
 
Answer:  From 2013 to the present, agreements have been concluded between the Kyrgyz  Republic  
and international partners: on the reconstruction of the At -Bashinskaya HPP, the modernization of  
the Bishkek Thermo -Electrical Station, the improvement of the power supply of the Arkin massif of 
the Batken region, the rehabilitation of the Toktogul HPP of Phase 1 -2-3, the modernization of the 
Oshelektro, the commissioning of the second hydroelectric unit of the Kambaratinskaya HPP 2, the 
rehabilitation of the Uch -Kurgan HPP, as well as on the rehabilitation and improvement of other 
energy infrastructure facilities in the Kyrgyz  Republic . 
 WT/TPR/M/4 11/Add.1  
 
- 48 - 
 
  Paragraph 4.125, page 146  
The Secretariat's Report mentions the objectives in the field of rail transport, as established in the 
EAEU Treaty. These include, inter alia , the creation of a common market, 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, enabling access of rail transport 
organizations of one member State to the domestic market of rail transport services of another 
member State, enabli ng access of carriers to infrastructure services of member States.  
EU Question N°25: The EU would be very interested to get detailed information from the Kyrgyz 
Government on the progress made with regards to these objectives.  
 
Answer:  Resolution of the Go vernment of the Kyrgyz  Republic  No. 992 of 10 February  2017 
approved the "Procedure for regulating access to railway transport services, including the basics of 
tariff policy". The Kyrgyz Railway, as a carrier and owner of infrastructure, is ready to provi de access 
to its infrastructure and services related to providing access to the carriers of the EAEU Member 
States.  
 
Government Report  
4. TRADE POLICY  
Paragraph 4.19, page 15 , on rail transport services  
The Government's Report indicates, that in the field of transport services, there has been a slowdown 
in freight turnover in railway transport since 2012 and a decrease in this indicator in 2015 -2016 by 
about 12%, which was related to the introduction and operation of a unified tariff for railroad 
transportation of goods between the Kyrgyz  Republic  and Kazakhstan and the small -scale nature of 
merchandise export.  
EU Question N°27: The EU would like to understand how this relates to the data provided in the 
WTO Secretariat's Report which seems to indicate d that the share of rail freight has increased 
somewhat in recent years (footnote 163 indicates that from 2010 to 2017, the share of rail in the 
total volume of freight traffic increased from 2.7% to 6% ). 
 
Answer:  A small share of rail transport in the tot al volume of freight transport is due to the country's 
transport infrastructure. There is only one railway line in Kyrgyz  Republic . The increase in cargo 
transportation is explained by the growing trade turnover of the Kyrgyz  Republic . 
 
Paragraph 1.9, page 17,  on remittances  
According to the Secretariat's Report, most of the remittances appear to bypass the formal banking 
system and are directed towards real estate and imported goods. The authorities face a major 
challenge in promoting remittance flows to be channelled into productive economic and social 
investments.  
EU Question N°1: In light of the recent announcements by the authorities, what concrete steps 
are planned to make the formal sector more attractive for transferring remittan ces and to use them 
to boost economic sector other than construction and retail?  
 
Answer:  The issues of money transfers of migrant workers in economic sectors are not yet 
considered at the state level, but these resources are used unorganized, mainly in th e real estate 
sector, in the import of goods and in the tourism sector.  
 
Paragraph 2.31, pages 32 -33, on customs control between the Kyrgyz  Republic  and 
Kazakhstan  
The Secretariat's Report here indicates that customs control between these two countries was  
abolished. However, further in the Report (page 90 para . 3.148.) it is stated that some customs 
controls (namely veterinary -sanitary controls) between the Kyrgyz  Republic  and Kazakhstan remain.  
EU Question N°8: When will all customs controls be abolished?  
 
Answer:  In accordance with subparagraph 5 of paragraph 1 of Article  25 of the Treaty on the 
Eurasian Economic Union of 29 /05/2014 , within the framework of the Customs Union of the member 
States, the free movement of goods between the territories of the m ember states is carried out 
without the use of customs declaration. In accordance with the decision of the Supreme Eurasian 
Economic Council "On the abolition of customs control in respect of goods and vehicles transported 
across the Kyrgyz -Kazakhstan sect ion of the state border" No.  5 of 08/05/2015 , customs control on 
the Kyrgyz -Kazakhstan section of the State border was cancel led. 
 WT/TPR/M/4 11/Add.1  
 
- 49 - 
 
  Paragraph 4.109, page 142 , on transport services  
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 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 services 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.  
EU Question N°22: The Kyrgyz  Republic  has already taken full commitments in several transport 
modes in GATS. Could it explain which further commitments it has taken in the context of the 
common EAEU t ransport area?  
 
Answer:  The Treaty on the EAEU provides for the implementation of a coordinated transport policy 
and the gradual formation of a single transport space based on the principles of competition, 
openness, safety, reliability, accessibility and environmental friendliness. When joining the EEU, the 
Kyrgyz  Republic  did not take additional obligations in the context of the common transport space of 
the EAEU. 
 
Replies of the Kyrgyz  Republic  on some questions of the European  Union  
The EU would like to remind about KG GSP+ obligations as regards implementation of the 27 core 
UN conventions that country has signed. In this regard, the EU would be grateful to know more 
about what the next steps of the Government regarding the Trade Union and Non -Commercial 
Organi zation draft laws are. As regards the draft law on trade unions in particular, we would like to 
recall that the ILO Committee of Experts on the Application of Conventions and Recommendati ons 
(CEACR) requested the "Government to make every effort to ensure that the Law on Trade Unions 
when adopted is in full conformity with" ILO Convention 87 on Freedom of Association and Protection 
of the Right to Organi ze (see the ILO CEACR Observation un der ILO Convention 87, adopted in 
2019,2 and reiterated in 2020).3  
EU Question N°6: How does the Kyrgyz  Republic  plan to ensure that these drafts  are laws are fully 
in line with Kyrgyz  Republic 's GSP+ and international/WTO commitments and international labour 
standards?  
 
Answer:  By Order of the Government of the Kyrgyz  Republic  No. 154 of 20 March  2019, an 
interdepartmental working group was established to improve legislation in the field of trade unions, 
including representatives of the Jogorku Kenesh of the Kyrgyz  Republic , the Government of the 
Kyrgyz  Republic  and the Federation of Trade Unions o f Kyrgyz  Republic . 
On 12 April 2019, the draft Law of the Kyrgyz  Republic  "On labor unions" was submitted for public 
discussion.  
The purpose of this draft Law is to improve the legislation of the Kyrgyz  Republic  in the field of trade 
unions and to increase  the effectiveness of professional organizations in providing and protecting 
the interests of employees, preventing social and labo ur conflicts by integrating the activities of 
trade unions on the principles of association at each of the levels of social p artnership: national, 
sectoral, regional, as well as at the level of an enterprise or organization.  
Currently, the draft law has not yet been adopted, and the Jogorku Kenesh of the Kyrgyz  Republic  
is working on finalizing the draft law "On labor unions".  
 
EU Question N°28: How are health and safety at work and compliance with labour legislation 
ensured under the current moratorium on labour inspections?  
 
Answer:  By the Resolution of the Government of the Kyrgyz  Republic  dated 19 /02/2020 , 
amendments were mad e to the Resolution of the Government of the Kyrgyz  Republic  "On the 
introduction of a temporary ban (moratorium) on inspections of business entities" dated 
17 December  2018, No.  586, regarding the lifting of the moratorium on unscheduled inspections of 
violations of labo ur rights. A draft resolution of the Government of the Kyrgyz  Republic  "On the state 
program of labo ur Protection for 2020 -2024" has been developed, which is aimed at preserving the 
health of employees, improving the level and quality of th eir life in the course of work, improving 
labour protection and safety at the workplace. This project is being approved by the State authorities 
of the Kyrgyz  Republic  and the social partners of the Government of the Kyrgyz  Republic . At the 
 
2 https://www.ilo.org/dyn/normlex/en/f?p=1000:13100:0::NO:13100:P13100_COMMENT_ID:4023608 . 
3 https://www.ilo.org/dyn/normlex/en/f?p=1000:13100:0::NO:13100 :P13100_COMMENT_ID:4054235 . WT/TPR/M/4 11/Add.1  
 
- 50 - 
 
  moment, the draft resolution is under consideration in the Cabinet of Ministers of the 
Kyrgyz  Republic . 
 
EU Question N°29: What are the Government's plans regarding the need to remove limitations on 
labour inspection powers and on the undertaking of labour inspections  set in Law No . 72 of 2007, as 
identified by the ILO Committee of Experts on the Application of Conventions and Recommendations 
[see its 2020 Observation4 under ILO Convention 81 (Labour Inspection)]?  
 
Answer:  The Law of the Kyrgyz  Republic  "On the Proced ure for conducting inspections of business 
Entities" of 25 May 2007 No.  72 establishes the procedure for conducting inspections of business 
entities by authorized bodies, defines the rights and obligations of authorized bodies and business 
entities in rela tions related to the implementation of inspections, as well as the protection of the 
rights of business entities from illegal interference in their activities. The above -mentioned law 
stipulates that the audited persons must be notified of the scheduled in spection of the activities of 
legal entities and entrepreneurs at least 10 days before it begins.  
An unscheduled on -site inspection of the activities of entrepreneurs, according to this law, can be 
carried out by an authorized state body only after approva l by the authorized state body in the field 
of economy. This is the only type of inspection in which state labo ur inspectors have the opportunity 
to make sure that employers actually comply with the requirements of labo ur legislation.  
 
 
 
4 https://www.ilo.org/dyn/normlex/en/f?p=1000:13100:0::NO:13100:P13100_COMMENT_ID:4054066:NO  WT/TPR/M/4 11/Add.1  
 
- 51 - 
 
  THE UNITED STATES  
Page 9, paragraph 22:  The Secretariat Report notes that "there were 104 state -owned enterprises 
(SOEs) and 52 joint stock enterprises in which the State was a shareholder ". Please provide the 
percent ownership that the Kyrgyz  Republic  has in each of the joint stock enterprises.  
 
Answer :  
The authorized body in the field of state property management is constantly working to optimize the 
activities of state -owned companies. Currently, out of the specified number of 104 state -owned 
enterpris es and 52 joint  stock companies, not all state -owned companies operate. Detailed 
information on these state -owned companies is available on the website of the authorized body in 
the field of state property management at the link : https://www.fgi.gov.kg/com pany/company -
list?pagination=%7B%22page%22:0,%22count%22:20%7D&filter=%7B%22economicActivityId%
22:null,%22legalFormId%22:null,%22typeId%22:%5B2,4%5D,%22ownershipFormId%22:null,%
22active%22:null%7D&title=&tin=   
 
Page 9, paragraph 22:  The Secretariat Report notes that there were "guidelines adopted for the 
use of key performance indicators to assess the efficiency and financial stability of SOEs ".  
• Please provide a link to these guidelines.  
• What indicators does the Kyrgyz  Republic  use to assess the efficiency and financial stability 
of SOEs?  
• Does the Kyrgyz  Republic  require targets for return on equity or profit, or does the 
government require the payment of a dividend?  
 
Answer :  
Earlier, the authorized body in the field of state property management approved key performance 
indicators for assessing the efficiency and financial stability of state -owned companies (state -owned 
enterprises and joint  stock companies with state shares in the authorized capital). At the same time, 
indicat ors are used that are typical and also applicable in the usual practice when evaluating the 
effectiveness of private companies. Currently, these key indicators are being reviewed in order to 
further optimize the activities of state -owned companies.  
 
Page 5 0, Paragraph 3.37 : In October 2019, the United  States  submitted several questions on the 
notification that the Kyrgyz  Republic  made regarding the Reserve Value Method.  
• Please provide a timeframe as to when responses to our questions listed in document 
G/VAL/W/341 will be made.  
 
Answer :  
The Kyrgyz  Republic  thanks the United  States  for the questions and would like to inform that the 
replies for the posed questions were d istributed through the WTO system on 5th of May 2021 in 
document G/VAL/W/371 dated 14  April 2021.  
 
Report of the WTO Secretariat  
 
Page 49, Paragraph 3.33:  According to Article  112 of the EAEU Customs Code, customs authorities 
may decide to amend the declared value of an import if they are not satisfied with the information 
provided by the importer.  
• Please explain the procedures that the Kyrgyz  Republic  customs authorities must go through 
to determine if an amendment is appropriate and then to communicate those reasons to the 
importer.  
 
Answer : In accordance with Article  125 of the Customs Code of the EAEU, the Customs Authority 
refuses to release goods on the following grounds:  
- failure t o comply with the conditions under which the customs authority issues goods, including 
the conditions provided for in Articles 120 -123 of the Customs Code of the EAEU;  
- failure to comply with the requirements of the customs authority to change (supplement ) the 
information stated in the customs declaration, in the case provided for in paragraph 2 of Article  112 
of this Code;  
- failure to declare the goods at the request of the customs authority within the terms of release of 
the goods established by paragra phs 3 and 6 of Article  119 of this Code.  
 WT/TPR/M/4 11/Add.1  
 
- 52 - 
 
  Pages 82 -83, paragraphs 3.117 and 3.118:  The Secretariat Report indicates that pursuant to 
an Action Plan under the Export Development Program of the Kyrgyz  Republic  for 2019 -2022, certain 
export encouragement incentives, including "preferential access to finance, including subsides, and 
aid for marketing products in foreign markets ", are to be concentrated in particular sectors such as 
textiles and dairy.  
• Please explain the special incentives provided under the Export Development Program for 
exportation in certain sectors, in light of the provision under Article  3.1(a) of the 
SCM Agreement  prohibiting incentives contingent upon export performance.  
• Will the Kyrgyz  Republic  notify the incentives under the Export Development Program 
pursuant to the notification obligations under Article  25 of the SCM  Agreement ? 
Answer:  The Export Development Program of the Kyrgyz  Republic  for 2019 -2022 does not envisage 
the application  of special incentives that fall under the prohibited provisions of the WTO 
SCM Agreement . 
 
3.2.4 Export support and promotion  
Page 79, paragraph 3.108: The Secretariat Report states that export prohibition was imposed on 
the export of onion, garlic, turnips, rye, rice, buckwheat, millet, cereals, grains, soybeans, and 
sunflowers.   
• Please provide a timeline for those temporary export prohibitions.   
 
Answer : 
The temporary ban was in effect until September 2020. However, taking into account the s ituation 
related to the COVID ‑19 pandemic, the Government of the Kyrgyz  Republic  adopted Resolution 
No. 569 of 19 November  2020 "On the introduction of a temporary ban on the export (export) of 
certain types of goods from the Kyrgyz Republic outside the cu stoms territory of the Eurasian 
Economic Union", which is valid from January  8 to 8 July 2021.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1.3 Customs valuation  
Page 49, Paragraph 3.33:  According to Article  112 of the EAEU Customs Code, customs authorities 
may decide to amend the declared value of an import if they are not satisfied with the information 
provided by the importer.  
• Please explain the procedures that the Kyrgyz  Republic  customs authorities must go through 
to determine if an amendment is appropriate and then to communicate those reasons to the 
importer.  
Answer : 
The procedure for checking documents and information (including information about the customs 
value) is described in Article  325 of the Customs Code of the EAEU.  
If there are doubts about the authenticity of the declared customs value, the customs authority is 
obliged to request from the declarant documents, information or written explanations confirming the 
declared information. At the same time, Arti cle 325 of the Customs Code of the EAEU establishes 
that the request from the declarant of documents, information or written explanations must be 
justified and must contain a list of signs indicating that the information stated in the customs 
declaration i s not properly confirmed or may be unreliable, as well as a list of requested documents, 
which is determined based on the verified information.  
If the declarant is unable to submit the requested documents within the established period of release 
of the goo ds (up to 10 days, taking into account the possibility of extension), the goods may be 
released by the customs authority, provided that security (guarantee) is provided for the payment 
of customs duties and taxes that may be accrued as a result of customs control (Article  121 of the 
Customs Code of the EAEU). In this case, the declarant may submit the requested documents within 
60 calendar days from the date of registration of the customs declaration.  
If the declarant has not submitted the requested documen ts, the customs authority decides to 
amend the customs declaration on the basis of the information available to it.  
If the declarant has submitted the requested documents, but such documents do not eliminate the 
doubts of the customs authority, the customs  authority requests additional documents, information 
and explanations from the declarant.  
If the declarant has submitted the requested documents, but such documents do not confirm the 
declared information, the customs authority makes a decision to amend t he customs declaration on 
the basis of the information available to it.  WT/TPR/M/4 11/Add.1  
 
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  If the declarant has submitted the requested documents and they confirm the declared information, 
the customs authority informs the declarant about the completion of the inspection and  about the 
return of the provided security (guarantee) for the payment of customs duties and taxes.  
The procedure for making changes to the customs declaration is established by the EEC Decision 
No. 289 of 10 /12/2013 . In accordance with the specified procedure, the decision of the customs 
authority specifies the grounds for making changes to the customs declaration.  
 
Replies on some of questions of the US  
3.3 Measures Affecting Production and Trade  
3.3.1. Incentives  
Pages 84 -85, paragraphs 3.126 and 3.127:  Pursuant to Article  25 of the Agreement on Subsidies 
and Countervailing Measures (SCM  Agreement ), Kyrgyz  Republic  reported in its most recent New & 
Full Subsidies Notification, G/SCM/N/186/KGZ ( 5 May 2010), that it had not grant ed subsidies during 
the period 1  January  2009-31 December  2009 and has submitted no subsequent such notifications.  
• In light of this, please explain, as to each of the programs mentioned in the Secretariat 
Report and listed below, why the program is not sub ject to the notification requirements 
under Articles 25.1 and 25.2 of the SCM  Agreement ? 
 
a. Special tax allowances for R&D expenditures linked to a company's economic activity.  
 
Answer:  In accordance with Article  197 of the Tax Code of the Kyrgyz  Republic  (hereinafter referred 
to as the Tax Code), the taxpayer's expenses on innovation activities, which include:  
1) research work;  
2) development work;  
3) design and survey work;  
4) work on the introduction of scientific and technical achievements;  
5) implementation of application software packages;  
6) work on the introduction of information and communication technologies.  
It should be noted that the tax base of the mining enterprise is reduced by 15 % with the reservation 
of this amount in the special fund of the enterprise for the reproduction of the extinguished reserves 
of the field. These funds of the special fund must be reinvested by the company within 5 years for 
geological exploration within the boundaries of the mining and geological allotments . The amount 
from the special fund that has not been used for its intended purpose for 5 years is paid to the 
budget.  
 
b. Exemptions for agricultural and processing businesses from corporate income tax, VAT, and 
sales tax, and 50% reduction in property tax l iabilities.  
 
Answer:  According to Article  212 of the Tax Code, profits from the activities of agricultural 
producers, agricultural cooperatives, machine and tractor stations and agricultural trade and logistics 
centres are exempt from taxation.  
In accordan ce with Article  239 of the Tax Code, deliveries are exempt from VAT:  
1) an agricultural producer, an agricultural cooperative of agricultural products of its own production, 
as well as products of its processing;  
2) agricultural products and products processed by an agricultural cooperative obtained from 
agricultural producers who are members of the cooperative;  
3) goods, works, services by an agricultural cooperative to the members of this cooperative;  
4) trade and logistics cent re for agricu ltural purposes of agricultural products and products of its 
processing received from agricultural producers and agricultural cooperatives;  
5) a machine and tractor station for an agricultural producer and an agricultural cooperative:  
- works with the use of agricultural machinery;  
- maintenance and repair services for agricultural machinery;  
- spare parts for agricultural machinery;  
6) feed for poultry and fish produced by the taxpayer to an agricultural producer engaged in the 
breeding of poultry and fish . 
Article  259 of the Tax Code provides for an exemption from VAT, regardless of the fact of registration 
of an economic entity as a VAT payer, the import of fixed assets classified in the commodity items 
of the HS Code provided for in part 2 of this articl e, carried out for its own production purposes:  
1) agricultural producer;  
2) an agricultural cooperative, including for the production purposes of the members of the 
cooperative;  
3) machine and tractor station;  WT/TPR/M/4 11/Add.1  
 
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  4) trade and logistics cent re for agricultura l purposes;  
5) an economic entity under a financial lease (leasing) agreement.  
It should be noted that in accordance with Article  276 of the Tax Code, a taxable entity engaged in 
industrial processing of agricultural products from raw materials of domestic  production pays VAT 
with a reduction of 80 % for the types of activities established by the Government of the 
Kyrgyz  Republic  by Resolution No.  263 of 3 June 2019 "On Approval of the List of Economic Activities 
carried out by Enterprises of the food and pr ocessing industry (Except for the production of Excisable 
Goods), processing domestic agricultural raw materials, making VAT payments with a reduction of 
80 percent ". 
According to part 1 of Article  315 of the Tax Code, sales of goods, performance of works,  provision 
of services by an agricultural producer and/or a machine and tractor station, as well as an agricultural 
cooperative, are exempt from paying sales tax.  
Article  330 of the Tax Code grants local Keneshs the right to exempt them from paying propert y 
tax: 
1) for a period of up to 5 years of a newly created organization engaged in the production and/or 
processing of products, provided that the volume of production and/or processing of manufactured 
products is not less than 30.0 million KGS per year;  
2) enterprises whose activities relate to preferential types of industrial activities subject to 
preferential taxation;  
3) in the amount of 50 % of the buildings, premises and structures owned or temporarily used by an 
agricultural cooperative and a trade an d logistics cent re for agricultural purposes, used for the 
purposes of their main activities.  
 
c. Preferential tax treatments for identified industrial activities, including "any export -oriented 
production ", in designated regions based on investment agreement s with local authorities, including 
exemptions from corporate income tax and sales tax, and reduction in land tax.  
 
Answer:  In order to implement the provisions of Article  159-1 of the Tax Code, Government 
Resolution No.  193 of 24 April 2019 "On Measures t o implement Articles 153, 159 -1, 213, 315, 330 
and 344 of the Tax Code of the Kyrgyz Republic":  
1) defines preferential localities of the Kyrgyz  Republic ; 
2) approved:  
- List of preferential types of industrial activities subject to preferential taxation;  
- A model investment agreement on the implementation of activities in preferential localities.  
Thus, the decision to grant preferential industrial enterprises tax benefits within the territory of a 
particular locality is made on the basis of an investment agreement concluded by local self -
government bodies of localities with investors making investments in new industrial enterprises that 
have passed state registration after 1 January  2019, whose activities relate to preferential types of 
industrial activities subject to preferential taxation.  
When concluding agreements, export -oriented new industrial enterprises/production facilities that 
have passed state registration after 1 January  2019 and carry out export deliver ies of products for 
six consecutive calendar months, representing at least 50 % of the total volume of deliveries, are 
considered to be export -oriented.  
According to part 4 of Article  213 of the Tax Code, the profit tax rate for enterprises whose activities  
relate to preferential types of industrial activities subject to preferential taxation (with the exception 
of mining and processing, mining, as well as enterprises that produce exci zable goods) is set at "0" 
percent.  
Articles 330 and 344 of the Tax Code g rant local Keneshs the right to exempt enterprises whose 
activities belong to preferential types of industrial activity subject to preferential taxation from 
paying property tax and  
land tax.  
It should be noted that the deadline for the application of the above -mentioned provisions of Articles 
213, 330 and 344 of the Tax Code is set at 5 years with the right to further extend to 10 years, 
depending on the amount of sales revenue and the amount of income tax paid.  
 
d. Exemption from corporate income tax for pro fits from large investments using new equipment.  
 
Answer:  In accordance with Article  221-2 of the Tax Code, the profit of a domestic organization 
from carrying out activities for the production and sale of goods of its own production, including the 
product ion and sale of goods obtained as a result of processing goods on the territory of the 
Kyrgyz  Republic , using exclusively new equipment, is taxed at a "zero" rate, if the taxpayer:  WT/TPR/M/4 11/Add.1  
 
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  1) received during the tax period the proceeds from the sale of manufacture d products in the amount 
of at least 170,000,000 KGS; and  
2) pay monthly income tax in the amount of at least 150,000 KGS during the tax period; and  
3) has a paid -up authorized capital of at least 10,000,000 KGS.  
At the same time, new equipment means fixed  assets imported into the territory of the 
Kyrgyz  Republic  after and not used on its territory before 1 May 2015, as well as used real estate 
that is owned by a domestic organization or used by it in accordance with a financial lease (leasing) 
agreement.  
New equipment does not include fixed assets imported by the taxpayer after 1 May 2015 and used 
for the expansion or modernization of fixed assets or production facilities purchased or produced by 
the taxpayer before 1 May 2015.  
The taxpayer has the right to  apply this tax procedure in respect of profits received at the end of 
each of the five consecutive tax periods, starting from the tax period following the tax period in 
which the first profit from the operation of new equipment was received.  
 
e. Exemption fr om corporate income tax and VAT for production of electricity from renewable 
sources.  
 
Answer:  According to paragraph 14 -1 of Part 1 of Article  212 of the Tax Code, profits from the 
activities of new producers of electric and thermal energy, gas and renewa ble fuel in a gaseous 
state, liquid biological fuel obtained as a result of the use of renewable energy sources within 5 years 
from the date of commissioning of the property of power plants based on the use of renewable 
energy sources are exempt from taxat ion. 
Paragraph 17 of Part 1 of Article  257 of the Tax Code provides for the exemption from VAT of 
specialized goods and equipment imported into the territory of the Kyrgyz  Republic  intended for the 
construction of energy installations based on the use of r enewable energy sources, according to the 
list approved by the Government of the Kyrgyz  Republic , in accordance with the Customs Code of 
the EAEU.  
 
f. Free Economic Zones fiscal incentives, including exemptions from import and export duties, 
VAT, retail sales  tax, and levies on imported raw materials, intermediate inputs, machinery, and 
equipment for re -export or production of exports; exemption from corporate income tax; and 
exemption from land and property taxes.  
 
Answer:   
In accordance with Articles 372 and 375 of the Tax Code, the tax regime in the FEZ applies only to 
the activities of FEZ entities operating in accordance with the requirements of the legislation of the 
Kyrgyz  Republic  on free economic zones in the Kyrgyz  Republic , except for the producti on and sale 
of exci zable goods, except for enterprises engaged in the production and sale of tobacco products 
subject to excise duty and VAT when imported to the rest of the Kyrgyz  Republic , registered before 
2000.  
The general tax regime applies to the activities of FEZ entities in the rest of the Kyrgyz  Republic . 
Activity of the FEZ subject:  
- meets the above requirements, is exempt from all types of taxes (including local taxes);  
- does not meet the above requirements, is subject to taxation in accordance with the general tax 
regime.  
The supply of goods, works and services intended for use in production from the territory of the 
Kyrgyz  Republic  by an entity that is not a FEZ subject to a FEZ subject is subject to VAT at a "zero" 
rate. 
When goods are exported from the territory of  the FEZ for delivery to the rest of the Kyrgyz  Republic , 
including when they are alienated in favo ur of persons who are not subjects of the FEZ, the goods 
are subject to VAT in accordance with the generally established procedure.  
The administration of tax es levied on the movement of goods across the border of the FEZ is carried 
out in accordance with the legislation of the EAEU, the legislation of the Kyrgyz  Republic  in the field 
of customs affairs and the legislation on the FEZ of the Kyrgyz  Republic . 
The export of goods produced on the territory of the FEZ for the purpose of delivery to the territory 
of the EAEU Member States, with the exception of the territory of the Kyrgyz  Republic , is exempt 
from VAT. In case of non -confirmation of the import of goods  into the territory of the EAEU Member 
States and payment of indirect taxes within the time limits and in accordance with the established 
procedure, the amount of VAT is payable.  
Services and works provided by FEZ entities for consumption in the domestic m arket of the 
Kyrgyz  Republic  are taxed in accordance with the general tax regime. At the same time, services, WT/TPR/M/4 11/Add.1  
 
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  works for consumption in the domestic market of the Kyrgyz  Republic  are services, works purchased 
by any organizations and individuals who are not  subjects of the FEZ, in the territories of the FEZ 
and in the rest of the Kyrgyz  Republic . 
Income subject to calculation, withholding and payment at the source of income payment is subject 
to taxation in accordance with the Tax Code.  
 
g. High-Technology Park  incentives such as full exemption from 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.  
 
Answer:   
According to article 386 of the Tax Code, the tax regime in the Hi -Tech Park applies only to residents 
engaged in economic or foreign economic activities, provided that they meet the requirements 
established by the legislation of the Kyrgyz  Republic  on the Hi -Tech Park.  
Article  388 of the Tax Code provide s that the activities of a High -Tech Park resident that meet the 
above requirements are exempt from income tax, sales tax, and VAT.  
The income tax rate for employees of a resident of the Hi -Tech Park, residents of the Hi -Tech Park -
individual entrepreneurs,  its management (except for employees who maintain and protect 
buildings, premises, and land plots) is set at 5 %. 
The calculation and payment of tax on income from a source in the Kyrgyz  Republic  is subject to 
taxation in accordance with the Tax Code.  
In case of revocation of the status of a High -Tech Park resident, taxation is carried out on a general 
basis from the moment of revocation of this status, unless otherwise provided by the legislation of 
the Kyrgyz  Republic . 
It should be noted that Article  6 of the Law of the Kyrgyz  Republic " On the High -Tech Park " provides 
that after one year from the date of final registration, at least 80% of goods and services must be 
exported and/or at least 80% of the income of a resident of the High -Tech Park  must be obtained 
as a result of the export of goods and services.  
 
Page 49, Paragraph 3.33 : According to Article  112 of the EAEU Customs Code, customs authorities 
may decide to amend the declared value of an import if they are not satisfied with the information 
provided by the importer.  
Please explain the procedures that the Kyrgyz  Republic  customs authorities must go through to 
determine if an amendment is appropriate and then to communicate those reasons to the importer.  
 
Answer  to paragraph 3.33:  
In accordance with paragraph 2 of Article  112 of the Customs Code of the Eurasian Economic Unio n, 
if during customs control, viola tions of international treaties and acts in the field of customs 
regulation are revealed, which, in accordance with paragraphs two and three of subparagraph 9 of 
paragraph 1 of Article  125 of the Customs Code of the EAEU, when they are eliminated, will not  be 
grounds for refusing to release goods, and the customs authority has established the need to change 
(supplement) the information declared in the customs declaration, such information must be 
changed (supplemented) by the declarant at the request of the  customs authority within the period 
of release of goods, established by paragraphs 3 and 6 of Article  119 of the Customs Code of the 
EAEU.  
The form of the request for amendments (additions) to the information stated in the customs 
declaration before the r elease of goods is determined by the Decision of the Board of the Eurasian 
Economic Commission No.  289 of 10/12/2013 . 
Page 49, Paragraph 3.34 : Considering the Kyrgyz  Republic  does not issue advance rulings for 
customs valuation, is there an entity that doe s issue advance rulings for customs valuation, either 
through the EAEU or through another customs administration of the EAEU, that would apply to 
imports into the territory of the Kyrgyz  Republic ? 
Answer  to paragraph 3.34:  
According to paragraph 19 of Arti cle 38 of the Customs Code of the EAEU, preliminary decisions on 
the application of methods for determining the customs value of imported goods can be made if this 
is established by the legislation of the Member States on customs regulation. The procedure and 
conditions for the issuance by the authorized body of a member State of a preliminary decision on 
the application of methods for determining the customs value of imported goods, as well as the 
procedure and terms for the application of such a prelimina ry decision, are established by the 
legislation of the member State on customs regulation.  WT/TPR/M/4 11/Add.1  
 
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  Currently, the legislation of the Kyrgyz  Republic  in the field of customs regulation does not establish 
the adoption by customs authorities of preliminary decisions on the application of methods for 
determining the customs value of imported goods.  
3.3.5 State trading, state -owned enterprises, and privatization  
Page 97, paragraph 3.168 : The Secretariat Report states that "The Programme  also provides that 
non-strategic SOEs will be liquidated and privatized ... ".  
• Please provide an estimated timeline for the privatization and liquidation of non -strategic 
SOEs.  
 
Answer:  The process of privatization depends on a number of factors: politic al, administrative, and 
the general investment climate in the republic. Currently, the issue of forming a list of state objects 
for possible sale is being considered. The process of approval and approval of this list, subsequent 
procedures related to the i nventory of assets and their evaluation, pre -sale activities, including the 
search for buyers, may take an indefinite time. In general, we expect that we will be able to start 
the active phase of the process of privatization and the elimination of signific ant objects from the 
list in the medium -term.  
• Which SOEs does the Government of the Kyrgyz  Republic  consider to be non -strategic?  
 
Answer:  Enterprises that are not of socio -economic importance for the sustainable development of 
society, the ownership, use and disposal of which will not have an impact on the state of national 
security of the Kyrgyz  Republic , are non -strategic  
 
 
Page 98, paragraph 3.171:  The Secretariat Report states that "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 economi c reform as relevant 
to its WTO obligations1 it has not made such annual notifications."   
• Considering that the Kyrgyz  Republic  did not provide annual notifications, please provide an 
update on Kyrgyz  Republic 's privatization program and the key elements o f its program for 
economic reform.  
 
Answer:  
Within the framework of the approved Program of privatization of state property for 2020 -2022, it 
is planned to privatize 10 state shares in economic entities , as well as three  property complexes. In 
general, the privatization process has not been carried out in recent years. In the coming period, as 
part of the package of economic reforms, it is planned to optimize the portfolio of state -owned 
enterprises, including through the  reorganization and privatization of non -strategic enterprises.  
 
3.3.2.1 Standards and other technical requirements  
Page 87, paragraph 3.135:  The Secretariat Report notes as at 1 July 2020, the Kyrgyz  Republic  
had adopted 6,911 standardization documents, 2 ,544 of which were either harmonized with ISO 
standards, or based on IEC standards, or on Codex Alimentarius guidelines or recommendations. 
That accounts for approximately 37% of the standardization documents that were adopted.  
• How many of the remaining s tandardization documents are based on regional standards? 
How many of the remaining standardization documents are based on national standards of 
other countries?  
• Over the past several years, is the trend in the Kyrgyz  Republic  to base standardization 
documents more or less on existing international standards?  
• Please explain specific challenges the Kyrgyz  Republic  is facing when trying to base its 
standardization documents on international standards such as ISO, IEC, and Codex.  
Answer  on all posed three questions : 
The period of adoption of documents on standardization from 2013 to October 2019: 6 ,911 standards 
were adopted.  
Of the total number of accepted standardization documents (6 ,911), the harmonization of the 
remaining standardiza tion documents in the amount of 4 ,367 units is shown below, including:  
 
1 WTO document WT/ACC/KGZ/26 , 31 July 1998, para.  14. WT/TPR/M/4 11/Add.1  
 
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  - 1,020 standards are harmonized with European EN standards,  
- 203 standards are harmonized with the standards of the Russian  Federation  and the Republic of 
Belarus,  
- 14 standards are harmonized with the UNECE standards, the remaining 3 ,130 are interstate 
standards.  
On the territory of the Kyrgyz  Republic , standardization documents are adopted that are more 
harmonized with the international standards ISO, IEC and Codex Alimentarius. The  Kyrgyz  Republic  
does not face problems when adopting international standards ISO, IEC, Codex Alimentarius, as 
such a category of standards is accepted as national standards in accordance with the fundamental 
document on standardization CMC 1.14:2021 "Nati onal Standardization System of the Kyrgyz 
Republic. Methods of adopting international standards (documents), regional standards (documents) 
and national standards (documents) of other states as national standardization documents".  
Page 89, paragraph 3.146:  The Secretariat Report states that "A certain number of technical 
regulations were also adopted, covering food safety in general, as well as specific regulations 
addressing the safety of milk and dairy products, meat and meat products, fish and fish produ cts, 
grain, marking and packing of food products, and feed and feed additives ".  
• Please provide any new technical regulations related to the safety of milk and dairy products, 
meat and meat products, fish and fish products, grain, marking and packing of food products, 
and feed and feed additives.  
Answer:  
On the territory of the Kyrgyz  Republic , since 12 August  2017, the following technical regulations 
have been in force in the field of food safety: "On grain safety" (TR CU 015/2012), "On packaging 
safety" (TR CU 005/2011), "On Food Safety" (TR CU 021/2011), "Food products in terms of their 
labelling" (TR CU 022/2011), "Technical regulations for juice products from fruits and vegetables" 
(TR CU 023/2011), "Technical regulations for oil and fat products" (TR CU 024/2011), "Requirements 
for the safety of food additives, flavorings and technological aids" (TR CU 029/2012), "On the safety 
of milk and dairy products" (TR CU 033/2013), "On the safety of meat and meat products" (TR CU 
034/2013), "O n the safety of certain types of specialized food products, including dietary therapeutic 
and dietary preventive nutrition" (TR CU 027/2012), On the safety of fish and fish products (TR CU 
040/2016), On the safety of packaged drinking water, natural minera l water (EAEU TR 044/2017).  
No new technical regulations have been adopted, while the existing technical regulations have been 
amended and supplemented, namely:  
- "On grain safety" (TR CU 015/2012) - one change, approved by the Decision of the Council of t he 
Eurasian Economic Commission of 15 /09/2017  No. 101; 
- "Food products in terms of their labeling" (TR CU 022/2011) - two changes approved by the 
Decision of the Council of the Eurasian Economic Commission of 20 /12/2017  No. 90 and of 
14/09/2018  No. 75; 
- "On the safety of milk and dairy products" (TR CU 033/2013) - three amendments approved by 
the Decision of the Council of the Eurasian Economic Commission No.  86 of 20/12/2017 ; No. 102 of 
10/11/2017  and No.  118 of 19/12/2019 . 
In terms of the safety of feed  and feed additives, the national technical regulation "On the safety of 
feed and Feed Additives", approved by the Decree of the Government of the Kyrgyz  Republic  No. 268 
of 22 May 2014, is in force in the Republic.  
 
Page 49,  Paragraph 3.34:  Considering the Kyrgyz  Republic  does not issue advance rulings for 
customs valuation, is there an entity that does issue advance rulings for customs valuation, either 
through the EAEU or through another customs administration of the EAEU, that would apply  to 
imports into the territory of the Kyrgyz  Republic ?  
 WT/TPR/M/4 11/Add.1  
 
- 59 - 
 
  Answer:  
According to paragraph 19 of Article  38 of the Customs Code of the EAEU, preliminary decisions on 
the application of methods for determining the customs value of imported goods can be made if  this 
is established by the legislation of the Member States on customs regulation. The procedure and 
conditions for the issuance by the authorized body of a member State of a preliminary decision on 
the application of methods for determining the customs v alue of imported goods, as well as the 
procedure and terms for the application of such a preliminary decision, are established by the 
legislation of the member State on customs regulation.  
Currently, the legislation of the Kyrgyz  Republic  in the field of c ustoms regulation does not establish 
the adoption by customs authorities of preliminary decisions on the application of methods for 
determining the customs value of imported goods.  
3.3.7.3 Enforcement  of intellectual property rights  
Page 107, paragraph 3.208:  The Secretariat Report states, "Although the Law on Customs 
Regulations 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. The State Customs Service takes measures regarding the border 
enforcement of intellectual property rights exclus ively with respect to intellectual property rights 
included in the customs registry of intellectual property rights, and only in respect of trademarks ". 
• Please provide the status of the State Customs Service's draft regulation to implement ex 
officio  autho rity to suspend the release of goods that are not included within the EAEU 
Common Customs Registry or in the National Customs Registry of Intellectual Property 
Rights? What does, or what will, the State Customs Service's draft regulation provide?  
• Given the  last sentence in paragraph 3.208, would the ex officio  authority apply to 
trademarks only, or would this authority encompass other types of intellectual property? If 
so, please explain why the ex officio  authority is limited and how does this provide effe ctive 
protection of intellectual property rights?  
 
Answer  for two questions : 
Article  107 of the Law of the Kyrgyz  Republic  "On Customs Regulation" establishes that the customs 
authorities have the right to suspend the release of goods containing intellectual property objects 
that are not included in the unified Customs register of the EAEU Member States of IP objects or the 
national customs register of IP objects, without the application of the right holder in accordance with 
the procedure determined by the Government of the Kyrgyz  Republic . 
Currently, only trademarks are registered in the customs register. The authorized stat e body of the 
Kyrgyz  Republic  in the field of customs affairs is working to study the practices of suspending the 
release of goods containing intellectual property objects that are not included in the national customs 
register of intellectual property obje cts of the EAEU countries (ex  officio principle). After the study 
is completed, work will be carried out to develop a corresponding draft decision of the Government 
of the Kyrgyz  Republic . 
3.3 Measures Affecting Production and Trade  
3.3.1. Incentives  
Pages  84-85, paragraphs 3.126 and 3.127:  Pursuant to Article  25 of the Agreement on Subsidies 
and Countervailing Measures (SCM  Agreement ), Kyrgyz  Republic  reported in its most recent New & 
Full Subsidies Notification, G/SCM/N/186/KGZ ( 5 May 2010), that it had n ot granted subsidies during 
the period 1  January  2009-31 December  2009, and has submitted no subsequent such notifications.  
• In light of this, please explain, as to each of the programs mentioned in the Secretariat 
Report and listed below, why the program i s not subject to the notification requirements 
under Articles 25.1 and 25.2 of the SCM  Agreement ? 
a. Special tax allowances for R&D expenditures linked to a company 's economic activity.  
b. Exemptions for agricultural and processing businesses from corporate income tax, VAT, 
and sales tax, and 50% reduction in property tax liabilities.  
c. Preferential tax treatments for identified industrial activities, including "any export -
oriented production ", in designated regions based on investment agreements with  local 
authorities, including exemptions from corporate income tax and sales tax, and reduction 
in land tax.  
d. Exemption from corporate income tax for profits from large investments using new 
equipment.  WT/TPR/M/4 11/Add.1  
 
- 60 - 
 
  e. Exemption from corporate income tax and VAT for product ion of electricity from renewable 
sources.  
f. Free Economic Zones fiscal incentives, including exemptions from import and export 
duties, VAT, retail sales tax, and levies on imported raw materials, intermediate inputs, 
machinery, and equipment for re -export o r production of exports; exemption from 
corporate income tax; and exemption from land and property taxes.  
g. High-Technology Park incentives such as full exemption from 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.  
• With regard to certain programs listed above which appear to be contingent on export 
performance, please explain the export contingency in light of the provision under 
Article  3.1(a) of the SCM Agreement  prohibiting such incentives.  
• Will the Kyrgyz  Republic  notify the programs mentioned listed above pursuant to the 
notification obligations under Article  25 of the SCM  Agreement ? 
Answer : 
The Kyrgyz  Republic  recognize that the transparency is on e of the main core principle of the work of 
the WTO. The Kyrgyz  Republic  will focus on the preparation on the notifications. Should any 
measures have export contingency or should be notified due to the specificity of the support, they 
would be described in  the notification, so that interested Members could pose their questions.  
As soon Kyrgyz  Republic  will complete the preparation, the notification containing all necessary 
information will be circulated in the WTO system.  
Pages 82 -83, paragraphs 3.117 and 3 .118:  The Secretariat Report indicates that pursuant to 
an Action Plan under the Export Development Program of the Kyrgyz  Republic  for 2019 -2022, certain 
export encouragement incentives, including "preferential access to finance, including subsides, and 
aid for marketing products in foreign markets ", are to be concentrated in particular sectors such as 
textiles and dairy.  
• Will the Kyrgyz  Republic  notify the incentives under the Export Development Program 
pursuant to the notification obligations under Articl e 25 of the SCM  Agreement ? 
Answe r:  
The Kyrgyz  Republic  works on the preparation of the relevant notifications. As soon as the necessary 
notification will be ready, it will be distributed among the WTO Members.  
 
Page 108. paragraph 3.211 : The Secretariat Report states, "It has been observed in a recent 
study that 'IPR enforcement remains problematic due to inefficient judicial processes that result in 
lengthy appeals processes and problematic recovery of penalties. IPR infringement, includ ing 
production and trade of counterfeit goods, remains a problem for both the authorities and general 
public. '" 
• Please explain what steps the Kyrgyz Republic is  taking to rectify the inefficient judicial 
process? If none have occurred so far, how does this  comply with Kyrgyz  Republic 's 
obligations under the EAEU treaty that requires member States to take enforcement 
measures for the effective protection of intellectual property rights,  including measures 
provided for in the EAEU Customs Code and internation al treaties and acts of the EAEU on 
customs regulations (Article  91)? 
 
Answer:  
From 2012 -2017, a large -scale judicial reform was carried out in the Kyrgyz  Republic . As part of this 
judicial reform, two new codes – the Code of Misconduct and the Code of Violations -came into force 
on 1 January  2019.  
Due to the absence of liability measures in these regulatory legal acts for violation of intellectual 
property rights, t he State Service for Intellectual Property and Innovation (hereinafter -
Kyrgyzpatent) initiated amendments to the legislation of the Kyrgyz  Republic , providing for the 
establishment of liability for:  
- illegal use of objects of copyright, related rights, pr ograms for electronic computers, databases, as 
well as the acquisition, storage, movement or production of counterfeit copies of works, 
phonograms, programs for electronic computers, databases for the purpose of marketing;  WT/TPR/M/4 11/Add.1  
 
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  - illegal use of a patented inven tion, utility model or industrial design, selection achievement, 
disclosure without the consent of the author or applicant of the essence of the invention, utility 
model, industrial design, selection achievement before the official publication of informati on about 
them, if these acts are committed with the purpose of causing damage or for the purpose of 
extracting income;  
- illegal use of someone else's trademark, service mark, appellation of origin or confusingly similar 
designations for similar goods;  
- illegal use of warning labels in relation to a trademark, service mark or place of origin that is not 
registered in the Kyrgyz  Republic . 
The draft law proposes to authorize Kyrgyzpatent to perform an additional function of the supervisory 
authority in the s uppression of minor offen ces in the field of intellectual property at the request of 
the copyright holders.  
Currently, the draft law of the Kyrgyz  Republic  "On the new version of the Code of Administrative 
Offences of the Kyrgyz Republic"  is being consider ed. 
Due to the low efficiency of the reforms carried out in the Kyrgyz  Republic  in the justice system and 
law enforcement sphere in recent years, the Presidential Decree of the Kyrgyz  Republic  "On the 
Council for Improving Judicial and Law Enforcement Acti vities under the President of the Kyrgyz 
Republic" dated 31 March  2021 No.  83, established the Council for Improving Judicial and Law 
Enforcement Activities under the President of the Kyrgyz  Republic . 
The proposed version of the Code of Administrative Offe nces of the Kyrgyz  Republic , taking into 
account the circumstances and the analysis of law enforcement practice, provides for a number of 
administrative penalties.  
Kyrgyzpatent annually conducts training courses aimed at raising awareness of the judicial, law 
enforcement and regulatory authorities of the Kyrgyz  Republic  in the application of legislation in the 
field of intellectual property, registration of intellectual property objects, as well as ways to protect 
intellectual property from misuse.  
Page 114, Paragraph 4.22 : The Secretariat Report indicates that "Gold min ed at Kumtor is sold 
to the wholly state -owned Kyrgyzaltyn OJSC ".  
• Is Kyrgyzaltyn OJSC the only company that is able to buy the gold produced Kumtor?  
• Does Kyryzaltyn have any other specific rights or privileges to trade in gold?  
 
Answer  on two questions:  
OJSC "Kyrgyzaltyn" has the priority right to purchase all the dore alloy produced from the "Kumtor " 
mine containing gold and silver, according to the terms of the revised agreement on the sale of gold 
and silver dated 6 June 2009, concluded between CJSC "Kumtor Operating Company" on behalf of 
CJSC "Kumtor Gold Company", OJSC "Kyrgyzaltyn" and the Government of the Kyrgyz  Republic  on 
behalf of the Kyrgyz  Republic .  
OJSC "Kyrgyzaltyn" is a registered legal entity operating in ac cordance with the legislation of the 
Kyrgyz  Republic  and does not have any special rights or privileges for trading gold.  
3.3.6 Government Procurement  
Page 103, paragraph 3.189:  The Secretariat Report notes that the Kyrgyz  Republic  is working on 
a revised market access offer for accession to the WTO  Agreement  on Government Procurement.  
• Please elaborate on the steps the Kyrgyz  Republic  is taking to address the outstanding 
concerns previously expressed by the United  States , including, specifically on the pri ce 
preference on the purchase of goods and construction projects.  
Answer:  
 President of the Kyrgyz  Republic  S. Zhaparov signed a new version of the Constitution of the 
Kyrgyz  Republic . An interdepartmental expert group established in accordance with the Decree of 
the President of the Kyrgyz  Republic  dated 8 February  2021 "On Conducting an inventory of 
regulatory legal acts of the Kyrgyz  Republic ” has developed a draft Law of the Kyrgyz  Republic  "On WT/TPR/M/4 11/Add.1  
 
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  the termination of legislative acts on the principle of "Guillotine ". The list of legislative acts subject 
to inventory also includes the Law of the Kyrgyz  Republic  "On Public Procurement ". Currently, the 
authorized body of the Kyrgyz  Republic  in the field of public procurement is working on a new version 
of the  offer for market access. National legislation provides for equal opportunities for domestic and 
foreign suppliers (contractors) to participate in public procurement. In the event of the 
Kyrgyz  Republic 's accession to the WTO GPA, price preferences will no t be applied for purchases 
above the threshold values provided for in the offer for market access to the Kyrgyz  Republic . 
 
  WT/TPR/M/4 11/Add.1  
 
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  TURKEY  
THE GOVERNMENT REPORT  
 
4.9.3 Free trade agreements, 4.141., pg. 26,  
 
It is stated in the Government Report that " The Agreem ent covers all areas of trade and economic 
cooperation. In addition to reducing the rates of import customs duties, obligations of the parties to 
protect intellectual property rights were provided for, areas of cooperation in the field of sustainable 
devel opment, e -commerce, as well as in the field of public procurement, and common principles for 
protecting competition were established. Also, the Agreement significantly increases the 
predictability of trade regulation ". 
  
Question 4:  Could Kyrgyz  Republic  provide detailed information about the Free Trade Agreement 
between the EAEU and the Socialist Republic of Viet  Nam? What are the expected outcomes from 
the agreement in terms of e -commerce?  
 
Answer:   
The Free Trade Agreement between the EAEU cou ntries and Viet  Nam establishes the mutual 
obligations of the participants to simplify access to their markets in a certain way within the 
framework of mutual trade for suppliers of goods and services from the partner countries under the 
agreement.  
At the same time, the Agreement covers all areas of trade and economic cooperation. The agreement 
provides for a reduction in the rates of import customs duties; provides for the obligations of the 
parties to protect the rights to intellectual property; defines a reas of cooperation in the field of 
sustainable development, e -commerce, as well as in the field of public procurement; establishes 
common principles for the protection of competition. The Agreement also significantly increases the 
predictability of trade regulation.  
The conclusion of this agreement opened up favo urable  opportunities for entrepreneurs of the EAEU 
countries, including Kyrgyz entrepreneurs, to supply the Viet namese market with a capacity of about 
90 million people.  
Liberalizing the access of Vietnamese goods to the EAEU market will reduce consumer prices for 
goods for the consumer. E -commerce involves supporting and developing entrepreneurial activities 
in various areas of the economy and will allow, in particular, small and medium -sized enterprises to 
gain access to global markets and compete inter nationally. The development of e -commerce in the 
Kyrgyz  Republic  will allow legalizing unobservable segments of the country's economy.  
 
Question 4: Could Kyrgyz  Republic  provide detailed information about the Free Trade Agreement 
between the EAEU and the S ocialist Republic of Viet  Nam? What are the expected outcomes from 
the agreement in terms of e -commerce?  
 
Answer:  
The Factual presentation on the Free Trade Agreement between the EAEU and the Socialist Republic 
of Viet  Nam was presented to WTO Members at the 94th session of the WTO Committee on Regional 
Trade Agreements held on 17  September  2019 in accordance with WTO Transparency Mechanism 
for Regional Trade Agreements. Detailed information on the FTA and its Chapters, including E -
Commerce can be found in  document WT/REG385/1 .  
Given that section 13 of the Free Trade Agreement with Viet  Nam «Electronic Technologies in Trade» 
does not contain binding provisions, no specific activities have been carried out.  
At the same time, the Law «On Electronic Commerce» is currently being drafted to provide legal 
support for the development of electronic commerce in the Kyrgyz  Republic . 
 WT/TPR/M/4 11/Add.1  
 
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  4.4.2 Telecommunications services, 4.4.2.2 Legal and institutional framework, pg. 138, 
4.94 
It is stated in the Secretariat Report that " The activities of legal entities and individuals in the field 
of communications are carried out on the basis of licenses issued in accordance with the Law on the 
Licensing and Permit System108". Examining the related footnote, no.108, we understand that the 
Law no. 195 of 19  October  2013 has been amended 15 times from 2014 to 2020.  
 
Question 3:  Could Kyrgyz  Republic  provide information on the coverage and main provisions of the 
Law no 195 on the Licensing and Permit System, and give an overview on the purpose  of the recent 
amendments?  
 
Answer:   
Currently, the fundamental provisions of the licensing and licensing system of the Kyrgyz  Republic  
are regulated by the Law of the Kyrgyz  Republic  "On the Licensing and Licensing System in the 
Kyrgyz Republic", which regulates the principles, criteria for determining the types of activities 
subject to licensing, the procedure for introducing licensing, and measures of influence for violating 
licence requirements.  
The Law on the Licensing System regulates relations that arise between executive authorities, 
individuals and legal entities in connection with the licensing of certain types of activities, actions, 
operations, including the use of limited s tate resources.  
In order to support the business, reduce the time for reviewing and issuing a licen ce/permit to the 
applicant, this Law introduced the principle of "silence -a sign of consent", which is aimed at 
regulating the actions of state bodies -licens ors in the implementation of licensing procedures.  
This means that if the licensor does not make a decision to grant or refuse to grant a licen ce and/or 
permit within 30 days, or does not notify the applicant in writing of the refusal to grant a licen ce 
and/or permit, the licen ce and/or permit are considered issued.  
The Law also provides for an electronic licen ce and/or permit, i.e. a licen ce and/or permit in the form 
of an electronic document, issued and issued using information technologies, equivalent to  a licen ce 
and/or permit on paper.  
Licences are issued to all individuals (including foreign citizens and stateless persons) on an equal 
basis, regardless of the type of activity or location of the entrepreneur. Investors can obtain a licen ce 
provided that  they do not violate the requirements of state security, environmental protection 
legislation and do not affect the rights of owners, the requirements for the protection of life and 
health. Licen ces obtained in other States are recognized in the Kyrgyz  Republic in accordance with 
an international agreement.  
Regarding the latest amendments, we note that two types of norms have been introduced into the 
Laws:  
- implementation of differentiated approaches in the field of licensing;  
- the right of the National Bank to establish special licensing conditions, special requirements within 
the framework of special regulatory regimes, which should be laid down in the regulatory framework.  
The objectives of the amendments were as follows:  
- promoting the susta inable development and competitiveness of the financial sector, encouraging 
traditional financial institutions and new/potential market participants to introduce financial 
innovations;  
- granting the National Bank the authority to create special regulatory  regimes and implement 
differentiation in certain areas of regulation, for example, simplified identification, special regulatory 
regime licen ces; 
- increasing the share of personalized operations, creating conditions for the development of new 
products an d services.   WT/TPR/M/4 11/Add.1  
 
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  THAILAND  
WT/TPR/S/411  
Para 9 (Page 8)  
4-green and innovative instrumentation (14 measures);  
1. Please confirm if Kyrgyz  Republic  adopts an "informal " investment  screening mechanism. If the 
answer is affirmative, what are the requirements or conditions that foreign investors need to comply 
with prior to making a new investment in Kyrgyz  Republic ? 
2.What are the measures that Kyrgyz  Republic  maintains in order to promote export -oriented 
manufacturing?  
 
Answer 1:   
The Kyrgyz  Republic is adopting an "informal" investment selection mechanism. The Law "On 
Investments in the Kyrgyz  Republic " No.  66 (with additions and amendments until 
26 December  2020 No.  12) provides for a number of conditions for the selection of foreign 
investments : 
- investments are made in priority sectors of the economy and social sphere, as well as in certain 
territories of the republic, in accordance with state development programs (projects), investment 
benefits may be provided;  
- investments can be made in an y form in objects and types of activities that are not prohibited by 
the legislation of the Kyrgyz  Republic , including licensed types of activities.  
Answer 2:  
Answer: In order to increase the country's export potential and the competitiveness of domestic 
products on the world market, the Government of the Kyrgyz  Republic  approved the Program of the 
Government of the Kyrgyz  Republic  for the Development of Exports of the Kyrgyz  Republic  for 2019 -
2022, as well as the Action Plan for its implementation, by Reso lution No.  596 of 20 December  2018. 
The program is focused on taking measures to increase the volume of exports of products from 
sectors that have the highest export potential as:  
1-dairy industry (36 measures);  
2-clothing industry (12 measures);  
3-process ed fruit and vegetable products (5 measures);  
7-export promotion (29 measures).  
The Program also includes three  cross-industry areas such as:  
5-access to finance (21 measures);  
6-quality infrastructure. (34 measures);  
WT/TPR/G/411  
Para 4.43 Page  17 
After accession  into EAEU, please elaborate on the process of international trade and transit that 
have been simplified. What are the key procedural requirements regarding importation into the 
Kyrgyz  Republic ? 
 
Answer:  
As part of the implementation of the Agreement on Trade Facilitation (TFA), a plan for the 
implementation of the TFA has been prepared. The plan defines priority areas, such as access to 
information using digital technologies, indicators at the border for crossing transi t, for the release of 
goods imported and exported, the introduction of "single window" mechanisms, the introduction of 
a risk management system in the customs procedure of "customs transit", etc. - the movement of 
goods from the EAEU countries has been sim plified, - the procedure for inspection and registration 
of goods imported from the EAEU countries has been eliminated. - The procedure for interaction of 
authorized state bodies of the Kyrgyz  Republic  at automobile checkpoints across the customs border 
of the EAEU in the Kyrgyz  Republic  has been approved, - implementation of risk management 
measures. In order to ensure the exchange of information, together with the authorized regulatory 
authorities and the MEF CR, with the support of donors, software has b een introduced for processing WT/TPR/M/4 11/Add.1  
 
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  and distributing to the authorized state bodies, preliminary information submitted to the customs 
service database.  
Work is underway to develop requirements for the terms of reference for the implementation of a 
risk managemen t system with prior notification.  
In order to simplify international transport and eliminate double weight control in international 
transit, the application of the international weight certificate of vehicles is being implemented, and 
the integration of cu stoms and transport systems for the exchange of information on weight and 
other necessary parameters has been implemented. The import registration procedure consists of 
the following steps:  
- preliminary information is provided about the goods planned for  movement, which can be 
presented in the form of an electronic document, when importing goods into the customs territory 
of the EAEU through the checkpoints of the Kyrgyz  Republic , you can submit on the official website 
of the State Customs Service ( www.customs.gov.kg ).  
- upon arrival of the goods at the checkpoint, the person moving the goods must notify the customs 
authority of the arrival of the goods in the customs territory of the Union by submitting documents  
and information provided for in Article  89 of the Customs Code of the EAEU.  
As a result of the notification of arrival, the carrier or other persons specified in Article  83 of the 
Customs Code of the EAEU, within 3 hours of the working time of the customs  body from the moment 
of notification of arrival, must perform one of the customs operations related to:  
1) placing the goods in temporary storage;  
2) transportation (transportation) of goods from the places of arrival to the place of temporary 
storage;  
3) customs declaration of goods;  
4) placing goods under the customs procedure of a free customs zone on the territory of a port FEZ 
or logistics FEZ;  
5) export of goods from the customs territory of the EAEU;  
The placement of goods for temporary storage is c arried out in accordance with Chapter 16 of the 
Customs Code of the EAEU.  
Taking into account that there are no places intended for temporary storage and customs declaration 
at the automobile checkpoints of the Kyrgyz  Republic , vehicles with goods are sent  to the places of 
customs clearance by placing them under the customs procedure "customs transit".  
- when crossing the state border line, border control is carried out, if the goods are specific, then 
sanitary, veterinary and phytosanitary control is also carried out.  
Customs clearance involves the submission of the following documents: - certificate, contract, 
invoice, packing lists, etc.;  
- declaration is carried out in accordance with Chapter 17 of the Customs Code of the EAEU by 
submitting a customs dec laration. At the same time, together with the customs declaration, the 
customs authority must submit the documents provided for in Article  108 of the Customs Code of 
the EAEU.  
After payment of customs duties, the goods are released. The release of goods must be completed 
by the customs authority within 4 hours from the moment of registration of the customs declaration 
or from the moment of occurrence of one of the circumstances specified in paragraph 2 of Article  119 
of the Customs Code of the EAEU.  
 
Para 4.52 , page 18  
What are exceptional cases referred to in para . 4.52 and has the Kyrgyz  Republic  unilaterally applied 
temporary import restriction to any third country?  
 WT/TPR/M/4 11/Add.1  
 
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  Answer:  The Kyrgyz  Republic  has not unilaterally imposed temporary restrictions on imports to 
third countries, as opposed to exports.  
 
Para 4.80, page 20  
Please clarify what types of protection  that the investments or the investors receive and how this 
protection is guaranteed by th e government of Kyrgyz  Republic . Are foreign investors being granted 
the same protection as compared to local investors?  
 
Answer:  
1. Foreign investors are provided with the national regime of economic activity applied to legal 
entities and individuals of the Kyrgyz  Republic ; 
2. Foreign investors, their representatives and foreign employees who are in the Kyrgyz  Republic  in 
connection with investment activities have the right to free movement (with the exception of special 
territories);  
3. Th e state does not interfere with the economic activities, rights and legally recognized interests 
of investors, except in cases provided for by law;  
4. Guarantees of export or repatriation of investments, property and information outside the 
Kyrgyz  Republic ; 
5. Guarantees of protection against expropriation of investments and compensation of losses to 
investors. In accordance with paragraph 5 of Article  6 of the above -mentioned Law of the 
Kyrgyz  Republic , investors whose investments in the Kyrgyz  Republic  were damaged as a result of 
war or other armed conflict, revolution, state of emergency, civil clashes or other similar 
circumstances are granted legal status and conditions that are no less favo urable  than those applied 
to legal entities and individuals.  
 
Report of the Government of the Kyrgyz  Republic .  
Paragraph 4.93  
What is policy approach of the Kyrgyz  Republic 's Government on FTAs? What are the criteria of the 
Kyrgyz Government in  considering and supporting an FTA request from the third country with EAEU?  
 
Answer : 
For the Kyrgyz  Republic , as for other countries, the FTA agreement provides an opportunity to obtain  
access to strategically important markets, that is, to integrate the economy at the necessary level, 
while preserving the country's sovereig nty as much as possible and applying a minimum amount of 
effort.  
The FTA Agreement is an important trade policy instrument that falls within the competence of the 
Eurasian Economic Commission (EEC) in accordance with the Treaty on the EAEU of 
18 November  2011, which establishes the right of the EEC to carry out its activities in the field of 
establishing trade regimes with respect to third countries.  
Within the framework of the EAEU, the issue of concluding a n FTA is regulated by the Agreement on 
Internatio nal Treaties of the EAEU with Third States, International Organizations or International 
Integration Associations of 14 May 2018.  
According to this agreement, when considering the conclusion of an international agreement on the 
FTA, a joint research group is formed from representatives of the EAEU member States, 
representatives of the EEC and representatives of a third party. This group examines the following 
issues: the structure of trade in goods with a third party, the main issues to be settled in the FT A 
agreement, the possible economic consequences of the creation of the FTA, including the benefits 
and risks for the sectors of the economies of each of the EAEU member states, economic and 
mathematical modeling of the consequences of the conclusion of the  FTA agreement.  
Based on the results of the joint research group, a decision is made on the conclusion of the FTA.  
 
Secretariat Report,  
Paragraph 3.54, page 56  
As a member of the Eurasian Economic Union (EAEU), the Kyrgyz republic has changed its import 
tariffs. There is a higher tariff rates and an overall increase in tariffs with many tariffs exceeding 
WTO commitment. Does the Kyrgyz  Republic  have any future pl an to proceed with this matter?  WT/TPR/M/4 11/Add.1  
 
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Answer:  This question relates to the current process of negotiations of the Kyrgyz  Republic  within 
the WTO on changing tariff obligations, according to Article  XXVIII: 5 of the GATT.  
 
In Article  3.1.1.3.1, Paragraph 3.38, P age 50 – 51 On what grounds the Kyrgyz Customs use 
for determining the case of underestimation of the value of goods before considering the use of 
minimum prices for 36 categories of products?  
 
Answer:  
The Customs Service does not use this mechanism, since there is a single customs territory between 
the EAEU Member States. In respect of goods imported from other countries, the customs authorities 
of the Kyrgyz  Republic  are guided by the provisions of the Customs Code of the EAEU and the Law 
of the Kyrgyz  Republic  on Customs Regulation.  
 
In Article  3.1.1.3.1, Paragraph 3.38, Page 50 – 51 According to the EAEU membership of the 
Republic of Kyrgyz, there were minimum import prices applied to mostly agricultural goods among 
EAEU members. So pleas e clarify that using such minimum prices is aligned with WTO Customs 
Valuation Agreement? And is it possible to extend the use of minimum prices to other WTO members 
outside EAEU?  
 
Answer:   
The mechanism of the minimum level of control prices (MLCP) is use d by the tax authorities of the 
country only for the purpose of determining the tax base when revealing the facts of undervaluation 
of goods or the absence of confirmation of the actual value of imported goods. Taking into account 
the common customs territ ory of the EAEU, the mechanism of the MLCP applies to goods imported 
into the territory of the Kyrgyz  Republic  from the EAEU member States. In this connection, the 
extension of the minimum level of control prices to other WTO members is not possible.  
 
In Article  3.1.1.3.1, Paragraph 3.39, Page 51  
According to the Kyrgyz resolution and order under the State Agency for Antimonopoly Regulation, 
does the Kyrgyz Customs use such resolution and order for the grounds to reject the transaction 
value of imported go ods? And please clarify more in detail on how the 36 controlled prices of goods 
are chosen.  
 
Answer:   
In accordance with the Procedure for determining, applying and controlling the minimum level of 
control prices for goods imported into the territory of th e Kyrgyz  Republic  from the member States 
of the Eurasian Economic Union and produced in the territory of the Kyrgyz  Republic , approved by 
the Government of the Kyrgyz  Republic  Resolution No.  537 of 12 October  2016, the size of the MLCP 
is determined by the State Agency for Antimonopoly Regulation under the MEF of the 
Kyrgyz  Republic , the application and control is carried out by the State Tax Service under the MEF 
of the Kyrgyz  Republic . 
 
2.42 As mentioned in the document, the Kyrgyz govern ment will develop a policy regarding 
investment in the extractive sector and the energy sector, the Thai side requests more insights into 
this policy and the impact that it would bring to the prospect for foreign investors who wish to invest 
in these secto rs in the Kyrgyz  Republic . 
 
Answer : 
Currently, a General Plan for the development of the energy sector of the Kyrgyz  Republic  is being 
developed, which will determine the state of the energy sector of the Kyrgyz  Republic  for the 
shortest, medium and long -term periods.  
Work is being carried out on the gradual formation of a common electric power market of the 
Eurasian Economic Un ion on the basis of parallel electric power systems.  
In order to develop priority sectors of the economy, attract investment, increase the country's 
hydropower potential and implement promising projects in the field of renewable energy, active 
work is bein g done to improve the regulatory framework.  
On 24 July 2019, No.  99 approved the Law of the Kyrgyz  Republic  «On Amendments to Certain 
Legislative Acts in the field of Renewable Energy Sources». The law provides for the establishment WT/TPR/M/4 11/Add.1  
 
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  of legal bases for the further development of economic and organizational legal relations in the 
energy sector, attracting direct investment in the field of renewable energy, and improving the 
efficiency of state regulation of this sector.  
In accordance with article 12 of the La w of the Kyrgyz  Republic  on Renewable Energy, producers of 
electricity and heat generated using renewable energy and consumers of such energy have a 
number of preferences, including tax and customs benefits provided for in the tax and customs 
legislation for producers of electric ity and heat generated using renewable energy.  
In accordance with the Decree of the President of the Kyrgyz  Republic  «On Issues of reforming the 
mining industry of the Kyrgyz Republic» dated 29 January  2021, No.  5, the Ministry is developing a 
draft Code o f the Kyrgyz  Republic  «On Mineral Resources», aimed at increasing the productivity of 
the mining industry, creating a transparent system of legal regulation, unlocking its potential, 
ensuring the safety of the population and minimizing the burden on the en vironment, as well as 
creating a favo urable  investment climate and expanding opportunities for further economic growth 
of the Kyrgyz  Republic . 
 
__________