RESTRICTED  
  
WT/TPR/S/288  
1 October 2013  
(13-5230)  Page: 1/103  
Trade Policy Review Body   
 
TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
KYRGYZ REPUBLIC  
This report, prepared for the second Trade Policy Review of the Kyrgyz Republic, has been drawn 
up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from the Kyrgyz Republic on its 
trade policies and practices.  Any technical questions arising from this report may be addressed to Ms. Denby Probst 
(022 739 5847) and Mr. Rosen Marinov (022 739 6391). 
 Document WT/TPR/G/288 contains the policy statement submitted by the Kyrgyz Republic. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review  Body on the Kyrgyz Republic. This report was 
drafted in English. WT/TPR/S/288 • Kyrgyz Republic 
 
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  CONTENTS 
SUMMARY ....................................................................................................................... . 8 
1  ECONOMIC EN VIRONMENT ......................................................................................... 10  
1.1  Main Featur es ........................................................................................................... 10 
1.2  Recent Econom ic Developments .................................................................................. 11 
1.3  Trade and Inve stment Pa tterns.................................................................................... 13 
1.4  Outlook .................................................................................................................... 17 
2  TRADE POLICY REGIME: FR AMEWORK AND OB JECTIVES ........................................... 18  
2.1  General Constitution al and Legal Framework ................................................................. 18 
2.2  Development and Admini stration of Trade Policy ............................................................ 18 
2.2.1  Main trade laws ...................................................................................................... 18 
2.2.2  Ministry and private-sect or involvement in trade policy ................................................ 19 
2.2.2.1  Government tr ade policy fr amework ....................................................................... 19 
2.2.2.1.1  WTO inter-de partmental Commission ................................................................... 20 
2.2.2.1.2  Minist ry of Ec onomy .......................................................................................... 20 
2.2.2.2  Involvement of the priv ate sector in trade po licy ...................................................... 20 
2.3  Trade Policy  Objectives .............................................................................................. 21 
2.3.1  General objectives .................................................................................................. 21 
2.3.2  Sectoral objectives .................................................................................................. 21 
2.4  Trade Agreements and Arrangements ........................................................................... 21 
2.4.1  Participat ion in the WTO .......................................................................................... 21 
2.4.2  Regional, bilateral,  and preferen tial tr ade ................................................................... 22 
2.4.2.1  Overview ............................................................................................................ 22 
2.4.2.2  Free-tra de agreements ......................................................................................... 23 
2.4.2.3  Eurasian Ec onomic Co mmunity .............................................................................. 24 
2.4.2.4  Cust oms Un ion .................................................................................................... 24 
2.4.3  Preferential regimes ................................................................................................ 25 
2.5  Trade Disputes and Consul tations ................................................................................ 26 
2.5.1  Dispute settl ement in the WT O ................................................................................. 26 
2.5.2  Regional or bila teral disput e syst ems ......................................................................... 26 
2.6  Foreign Inve stment Regime ........................................................................................ 26 
2.6.1  Legal framework ..................................................................................................... 26 
2.6.2  Public Investme nt Programme  (PIP) .......................................................................... 27 
2.6.3  Investment policy ................................................................................................... 27 
2.6.4  Bilateral invest agreements  (BIAs) and othe r initiatives ................................................ 28 
3  TRADE POLICIES AND PRACTICES BY MEASURE ......................................................... 29  
3.1  Measures Directly  Affecting Imports ............................................................................. 29 
3.1.1  Customs procedures ................................................................................................ 29 
3.1.1.1  Customs legal fram ework and Cust oms Code ........................................................... 29 
3.1.1.2  International, regional, and bilate ral agreements and coop eration on customs .............. 30 WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.1.1.3  Developments on tr ade facilitating  measures ........................................................... 31 
3.1.1.4  Simplified import procedures ................................................................................. 32 
3.1.1.5  Free ec onomic zones ............................................................................................ 32 
3.1.1.6  Customs brokers .................................................................................................. 33 
3.1.1.7  Pre-shipment inspection ........................................................................................ 33 
3.1.1.8  Other cu stoms ma tters ......................................................................................... 33 
3.1.2  Custom s valuation .................................................................................................. 33 
3.1.2.1  Overview of basic rules ......................................................................................... 33 
3.1.2.2  Price sens itive products ........................................................................................ 34 
3.1.3  Rules of origin ........................................................................................................  35 
3.1.3.1  Non-preferential .................................................................................................. 35 
3.1.3.2  Preferential .........................................................................................................  35 
3.1.3.3  Special rules of origin in free economic zones ........................................................... 36 
3.1.3.4  Noti fications ........................................................................................................  36 
3.1.4  Tariffs ................................................................................................................ ... 36 
3.1.4.1  Nomenclature ...................................................................................................... 36 
3.1.4.2  MFN applied tariffs ............................................................................................... 36 
3.1.4.3  WTO bindings ...................................................................................................... 38 
3.1.4.4  Applied rates exceeding bound rates ....................................................................... 38 
3.1.4.5  Preferential and duty-free regimes .......................................................................... 39 
3.1.4.6  Seasonal duties ................................................................................................... 39 
3.1.5  Other charges affecting imports ................................................................................ 39 
3.1.5.1  Charges and fees upon importation ......................................................................... 39 
3.1.5.2  Value-added tax (VAT) .......................................................................................... 40 
3.1.5.3  Exci se taxes ........................................................................................................ 41 
3.1.5.4  Sales tax ............................................................................................................  42 
3.1.5.5  Special tax exemptions ......................................................................................... 42 
3.1.6  Import prohibitions, restrictions, an d licensing ............................................................ 43 
3.1.6.1  Import prohibitions .............................................................................................. 43 
3.1.6.2  Quotas  ...............................................................................................................  43 
3.1.6.3  Licensing ............................................................................................................  44 
3.1.7  Contingency measures ............................................................................................ 46 
3.1.7.1  Anti-dumping ...................................................................................................... 46 
3.1.7.2  Countervailing duties ............................................................................................ 47 
3.1.7.3  Safeguards ......................................................................................................... 47 
3.1.8  Other measures ...................................................................................................... 48 
3.1.9  State trading and import-related  operations of st ate enterprises .................................... 48 
3.1.10  Standards and other technical requirements ............................................................. 48 
3.1.10.1  Standards ......................................................................................................... 48 
3.1.10.2  Technical regulations .......................................................................................... 49 WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.1.10.3  Conformi ty asse ssment ....................................................................................... 50 
3.1.10.4  Cooperation at  the region al level .......................................................................... 50 
3.1.10.5  Sanitary and phytosanitary requirements ............................................................... 51 
3.1.10.5.1  Over all fram ework ........................................................................................... 51 
3.1.10.5.2  Legal framework.............................................................................................. 51 
3.1.10.5.3  Labelling ........................................................................................................ 52 
3.1.10.5.4  Cooperation at  the regional level........................................................................ 52 
3.2  Measures Directly Affecting Exports .............................................................................. 53 
3.2.1  Procedures ............................................................................................................ 53 
3.2.1.1  Certificate of origin ............................................................................................... 53 
3.2.2  Export taxes, charges, and levies .............................................................................. 53 
3.2.2.1  Export taxes ........................................................................................................ 53 
3.2.2.2  Other ta xes on exports ......................................................................................... 56 
3.2.3  Export prohibitions, restrictions, and licensing ............................................................. 57 
3.2.3.1  Export prohibitions ............................................................................................... 57 
3.2.3.2  Export  licenc es .................................................................................................... 57 
3.2.3.3  Export  controls .................................................................................................... 58 
3.2.4  Duty and tax concessions, subsidies, EPZs, and export-performance requirements ........... 59 
3.2.5  Export operations of state enterprise s, monopolies ...................................................... 59 
3.2.6  Export finance, in surance, and guarantees ................................................................. 60 
3.2.6.1  Expo rt fina nce ..................................................................................................... 60 
3.2.6.2  Export insurance .................................................................................................. 60 
3.2.7  Export promotion and marketing assistance ................................................................ 60 
3.2.7.1  Export Deve lopment St rategy ................................................................................ 60 
3.2.7.2  Export Promotion ................................................................................................. 61 
3.3  Measures Affecting Production and Trade ...................................................................... 61 
3.3.1  Legal framework for businesses in cluding registration  and licensing ............................... 61 
3.3.1.1  Types of business entities ..................................................................................... 61 
3.3.1.2  Busi ness climate .................................................................................................. 61 
3.3.1.3  Business procedures ............................................................................................. 62 
3.3.1.4  Legal framework .................................................................................................. 62 
3.3.1.5  Small and medi um-sized bu sinesses ....................................................................... 63 
3.3.2  Incentives, subsidies, an d other government  assist ance ............................................... 63 
3.3.2.1  General incentives ................................................................................................ 63 
3.3.2.2  High te chnology parks .......................................................................................... 63 
3.3.2.3  Subsidies ............................................................................................................  63 
3.3.3  Government  Procurement ........................................................................................ 64 
3.3.3.1  St ructure ............................................................................................................  64 
3.3.3.2  Main elements of the procur ement law .................................................................... 64 
3.3.3.3  Recent developments  and future initiatives .............................................................. 65 WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.3.3.4  Kyrgyz Repu blic and the GPA ................................................................................. 65 
3.3.4  Intellectual property rights ....................................................................................... 65 
3.3.4.1  Legal framework .................................................................................................. 65 
3.3.4.2  Framework .......................................................................................................... 66 
3.3.4.3  Kyrgyz IP stra tegy ............................................................................................... 66 
3.3.4.4  IP enforcem ent .................................................................................................... 67 
3.3.4.5  Us e of IP ............................................................................................................  67 
3.3.5  Role of state-owned enterprises, state monopolies, and privatization .............................. 68 
3.3.6  Competition policy and regulatory issues .................................................................... 71 
4  TRADE POLICIES BY SECTOR ...................................................................................... 73  
4.1  Agriculture .............................................................................................................. . 73 
4.1.1  Overview ...............................................................................................................  73 
4.1.2  Border  measur es .................................................................................................... 74 
4.1.3  Domestic measures ................................................................................................. 74 
4.2  Mining ................................................................................................................... .. 75 
4.3  Energy ..................................................................................................................... 78 
4.3.1  General features ..................................................................................................... 78 
4.3.2  Electricity ............................................................................................................ .. 79 
4.3.3  Hydrocarbons ......................................................................................................... 80 
4.4  Manufacturing ........................................................................................................... 81 
4.5  Services ................................................................................................................. .. 83 
4.5.1  Financial services .................................................................................................... 83 
4.5.1.1  Banking ..............................................................................................................  84 
4.5.1.2  Non-bank financial and credit in stitutions ................................................................ 85 
4.5.1.3  Securities market ................................................................................................. 85 
4.5.1.4  In surance ........................................................................................................... 86 
4.5.2  Communicati on services .......................................................................................... 87 
4.5.3  Tr anspor t ..............................................................................................................  88 
4.5.3.1  Road ................................................................................................................. . 89 
4.5.3.2  Rail ................................................................................................................. ... 90 
4.5.3.3  Air .................................................................................................................. ... 91 
4.5.4  Tourism ................................................................................................................. 92 
REFERENCES .................................................................................................................. 9 4 
5  APPENDIX TABLES ..................................................................................................... 95  
 
CHARTS 
 
Chart 1.1 Product composition of merchandise trad e, 2006 an d 2012 ...................................... 15 
Chart 1.2 Direction of merchandise trade, 2006 and 2012 ...................................................... 16 
Chart 1.3 FDI inflow s during 2006-12 ................................................................................. 17 
Chart 2.1 Main bodies involved in trade policy formulation and implementation ......................... 19 WT/TPR/S/288 • Kyrgyz Republic 
 
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  Chart 2.2 Preferential  trade, 2007 and 2012  ........................................................................ 23 
Chart 3.1 Distribution of  MFN tariff ra tes, 2012 .................................................................... 37 
Chart 3.2 Average applied MFN and bound  tariff rates, by HS sectio n, 2012 ............................. 38 
Chart 3.3 Import licences, 2007-12  .................................................................................... 45 
Chart 3.4 Main bodies in volved in SPS matters ..................................................................... 51 
Chart 4.1 Agricultural output by main category, 2007-11 ....................................................... 73 
Chart 4.2 Structure of manufactu ring production , 2006 and 2012 ........................................... 82 
Chart 4.3 Capacity utilization in manufacturing, 2006 and 2010 .............................................. 82 
Chart 4.4 Passenger and cargo tr ansport, 2006, 200 9, and 2012 ............................................ 89 
Chart 4.5 Passenger travel options to selected destinatio ns, Januar y 2013 ............................... 92 
 
TABLES 
 Table 1.1 Selected macroeco nomic indicato rs, 2006- 12 ......................................................... 10
 
Table 1.2 Balance of payments, 2006-12 ............................................................................. 12 
Table 2.1 Main trade-related legislation ............................................................................... 19 
Table 2.2 Free-trade agreements or regimes ........................................................................ 24 
Table 2.3 Main laws governing inve stment in the Ky rgyz Republic ........................................... 26 
Table 2.4 Bilateral inve stment agr eements .......................................................................... 28 
Table 3.1 Overview of the Customs Code ............................................................................. 29 
Table 3.2 Bilateral and regional agreemen ts on cooperation on  customs matters ....................... 30 
Table 3.3 Overview of imports under simplified procedures, 2007-12 ....................................... 32 
Table 3.4 Free economic zone  trade, 2007, 2010, and 2012 ................................................... 33 
Table 3.5 Overview of cust oms valuation legislation .............................................................. 34 
Table 3.6 Rules of origin, the wholly obtained criteria ............................................................ 35 
Table 3.7 Tariff structure, 2006, 2009, and 2012 .................................................................. 37 
Table 3.8 VAT exem ption li st, 2013 .................................................................................... 40 
Table 3.9 VAT exemptions on import ed goods, works,  and services ......................................... 41 
Table 3.10 Goods subjec t to exci se tax ............................................................................... 41 
Table 3.11 Import prohibitions ........................................................................................... 43 
Table 3.12 Main laws concer ning import licensing ................................................................. 44 
Table 3.13 Products subjec t to import licensing .................................................................... 45 
Table 3.14 State-trading enterprises ................................................................................... 48 
Table 3.15 Technical regulati ons adopted du ring 2006-12 ...................................................... 49 
Table 3.16 Main laws concerning sani tary and phytosan itary measures .................................... 52 
Table 3.17 Certificates of origin for exported goods ............................................................... 53 
Table 3.18 Export duties ................................................................................................... 54 
Table 3.19 Export prohibitions ........................................................................................... 57 
Table 3.20 Products subjec t to export licensing .................................................................... 57 
Table 3.21 Laws and procedur es on export  controls .............................................................. 59 
Table 3.22 Export control list ............................................................................................. 59 WT/TPR/S/288 • Kyrgyz Republic 
 
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  Table 3.23 Types of business entities .................................................................................. 61 
Table 3.24 Main laws governing business ............................................................................ 62 
Table 3.25 Overview of  procuremen t, 2011  ......................................................................... 64 
Table 3.26 Main intellec tual property laws ........................................................................... 66 
Table 3.27 Objections filed and their consideration by the Appeals Council, 2006-12 .................. 67 
Table 3.28 Court proceedings on IP, 2006-12 ....................................................................... 67 
Table 3.29 Trends in intelle ctual property , 2007-2 012 ........................................................... 68 
Table 3.30 Laws on st ate-owned pr operty ........................................................................... 69 
Table 3.31 State-owned enterprise s and joint-stoc k companies .............................................. 69 
Table 3.32 State-owned enterprises and joint-st ock companies included in the Registry of 
Natural and Permi tted Monopolies ...................................................................................... 70 
Table 3.33 Main competition laws ....................................................................................... 71 
Table 4.1 Registered mineral re serves, January 2012 and 20 13 .............................................. 76 
Table 4.2 Main energy  indicators , 2006-12  .......................................................................... 78 
Table 4.3 Selected financial system indica tors, 2006- 12 ........................................................ 83 
Table 4.4 Communication services, selected indicators, 2006-12 ............................................. 87 
Table 4.5 Regulated telecomm unication mono polies, 2012 ..................................................... 88 
 
BOXES 
 Box 4.1 Key structural weaknesses of th e Kyrgyz electrical  energy system ............................... 80
 
 
APPENDIX TABLES 
 
Table A1. 1 Merchandise exports by HS se ction and major HS chapter, 2006-12 ....................... 95 
Table A1. 2 Merchandise imports by HS se ction and major HS chapter, 2006-12 ....................... 96 
Table A1. 3 Merchandise export s by destinat ion, 2006- 12 ...................................................... 97 
Table A1. 4 Merchandise im ports by orig in, 2006- 12 ............................................................. 98 
Table A1. 5 Trade in  services , 2006-12  ............................................................................... 99 
 
 
Table A2. 1 Selected notifications to the Central Registry of Notifications (CRN), 1 January 
2007-30 June  2013 ........................................................................................................ 100  
 
 
Table A3. 1 Tariff  summary , 2012 .................................................................................... 102  
 
 
 WT/TPR/S/288 • Kyrgyz Republic 
 
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  SUMMARY 
1. The Kyrgyz Republic acceded to the WTO in 1998, with a very open trade regime and low 
tariffs. As a landlocked country with a predomin antly mountainous terrain and several neighbours 
not yet WTO Members, the Kyrgyz Republic face s a number of challenges and opportunities. The 
Kyrgyz Republic's natural resources and tourism potential remain largely unrealized, and transport 
and infrastructure issues have limited its pote ntial for further development and export. The 2010 
ethnic violence, frequent changes in government and institutions, and tensions in certain regions 
have also created political uncertainties that have impacted the country's development and 
investment attractiveness. 
2. The Kyrgyz economy is relatively diversified, with the GDP shares of services, mining, and 
construction on an upward trend, and that of ag riculture declining. The service sector accounts for 
approximately half of GDP. The Kyrgyz economy grew erratically during the review period, on 
account of external shocks, harsh climatic conditions, political and ethnic crises, and a sharp decline in gold production in 2012. During the review period, the current account of the balance of 
payments remained in deficit. 
3. The Kyrgyz Republic's total merchandise trade more than doubled during 2006-12. While 
exports have approximately doubled during the last six years, imports have more than tripled from 
a larger base, thus the Kyrgyz Republic maintains a merchandise trade deficit. The export base is 
narrow, with gold and agriculture products dominating. Despite its considerable potential for tourism and transport, the Kyrgyz Republic was pr edominantly a net importer of services during 
2006-12. CIS countries remain the key trading partners, both as suppliers of imports and export 
destinations, although Switzerland has become a significant market for gold exports in recent 
years. 
4. Although it registered an increase from 2006-07 levels, foreign direct investment (FDI) in 
the Kyrgyz Republic has not been commensurate with its potential dynamism and remains low 
relative to FDI inflows into neighbouring countries. FDI has mostly been concentrated in the processing, real estate, and services sectors. The main legal framework governing investment 
remains unchanged from the 2003 Law on Investments. The Government has placed a high 
priority on attracting foreign investment and recently increased efforts on outreach and created institutions to attract foreign investment. 
5. While Kyrgyz legal provisions generally comply with WTO obligations and are aimed at 
facilitating trade, they are often undermined by inadequate resources or gaps in implementing 
regulations. There is also scope for improvement in the Kyrgyz Republic's notification record. The Kyrgyz Republic has yet to use the Dispute Settlement system or to initiate any anti-dumping or 
countervailing duty investigations. 
6. The Kyrgyz Republic’s trade regime is likely to undergo changes in the near future, as the 
country is expected to join the customs union, currently comprised of Belarus, Kazakhstan, and 
Russia. Adopting the customs union's common extern al tariff (CET) would require re-negotiation of 
Kyrgyz tariff bindings at the WTO, which are lo wer, on average. The authorities are currently 
drafting a roadmap for acceding to the customs un ion; the draft might be finalized by the end of 
2013.  It is expected that Kyrgyz Republic would also be impacted by aligning its rules and 
procedures to that of the customs union, for example, harmonization of TBT and SPS rules could 
trigger significant changes in these policy areas as well.  
7. Recent trade facilitating measures undertaken by the Kyrgyz Republic include the "paperless 
trade" initiative and a "single window" for customs, whereby work remains on-going. Free 
economic zone legislation remains in place, al though changes are foreseen in the future. A 
simplified customs procedure for physical  persons, allowing substitution of ad valorem  tariffs with 
a uniform weight-based specific duty, remains in place; it continues to facilitate re-exports through 
the Kyrgyz Republic, although the list of eligible goods was formally shortened and re-focused on the textile industry during the review period. A number of non-tariff measures remain in place or were introduced during the period, in particular, prohibitions, seasonal duties, import licences, 
safeguard measures, and products subject to state-trading. WT/TPR/S/288 • Kyrgyz Republic 
 
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  8. The Kyrgyz Republic's MFN applied tariffs curre ntly average 5% and have remained virtually 
unchanged during the period of review. It maintain s low tariff protection overall, with over 20% of 
tariff lines bound at zero. Products with higher duty protection include tobacco, alcohol, fish, and clothing products. A number of applied tariffs cu rrently exceed the Kyrgyz Republic's WTO tariff 
bindings. 
9. During the period, the Kyrgyz Republic regularly used export duties, export licences, 
controls, and prohibitions. Government export promotion incentives remain an area that is very 
underdeveloped. There is not much on the export side to aid in export finance, insurance, or 
promote exports; although the government is current ly in the process of approving its first export 
development strategy with the help of the ITC. 
10. Standards and technical requirements remain an area under frequent change in the Kyrgyz 
Republic, especially as concerns SPS issues. The Kyrgyz Republic does not currently have an SPS 
inquiry point.  
11. While the legal framework remains broadly unchanged since 2004, several developments 
have taken place in the area of government proc urement. The state agency in charge of public 
procurement was dissolved in 2009, and its procur ement functions are now under the Ministry of 
Finance. E-procurement was introduced in 2010 and implementation is on-going. The Kyrgyz 
Republic has yet to accede to the GPA. 
12. Privatization of state owned enterprises, a process that commenced in the 1990s is still on-
going but at a slower pace. Many of the remaining enterprises under state ownership are large, in strategically important industries such as mining, energy, and telecommunications. Many of the 
state owned enterprises operate under the Law on Natural and Permitted Monopolies and are 
subject to regulation, such as price controls. 
13. The Kyrgyz Republic is endowed with considerable subsoil resources, but their economic 
potential remains largely untapped. Gold mining and processing is heavily concentrated in state 
ownership and accounts for a significant share of export revenue and GDP. The economic performance is therefore heavily dependent upon the operations of the single large-scale mine. 
14. The Kyrgyz Republic has considerable hydropower potential and is a net exporter of 
electricity, but depends crucially on imports of hydrocarbons. The state retains control over all primary energy sources. Electricity generation an d transmission remain underdeveloped and face 
several structural constraints, which exacerbate commercial losses and hamper investment in 
infrastructure maintenance and upgrades. 
15. The Kyrgyz telecommunications market expanded throughout the review period, driven by 
sustained dynamism in mobile telephony and intern et subscriptions. While there are no significant 
regulatory barriers to entry, market contestability could be strengthened through provisions that 
establish or clarify, inter alia : infrastructure-sharing obligations ; interconnection terms; secondary-
spectrum trading; (fixed and mobile) number portability; local loop unbundling; domestic mobile 
roaming; and frameworks allowing the entry of virtual-network operators and carrier (pre) 
selection for certain calls. 
 WT/TPR/S/288 • Kyrgyz Republic 
 
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1  ECONOMIC ENVIRONMENT 
1.1  Main Features 
1.1 The vast economic potential of the Kyrgyz Republic's natural resources and historic 
attractions remains largely unrealized. Its picturesque mountainous terrain and abundant water 
and subsoil reserves offer considerable opportunities to develop tourism, hydropower, and mining. While processed gold, derived from a single mine, accounts for nearly half of export earnings, a 
number of gold and other mineral deposits are yet to be commercially exploited. 
1.2 The Kyrgyz economy is relatively diversified, with the GDP shares of services, mining (gold 
production), and construction on an upward tren d, and that of agriculture on a downward path 
(Table 1.1). The services sector makes up approximately half of Kyrgyz GDP, largely on account of 
wholesale and retail trade (essentially re-exports) and telecommunications. Economic performance 
remains dependent on external factors, including weather conditions, world commodity prices, and terms of access to neighbouring countries' markets and infrastructure. Notwithstanding its 
declining GDP share, agriculture (crop and livestock farming) provides livelihood to about a third of 
the active workforce; some 66% of the population lived in rural areas at end 2011.  
1.3 The economic disadvantages of the Kyrgyz Repu blic's landlocked situation are exacerbated 
by inadequate transport and energy infrastructure, and limited international air links. Years of poor 
maintenance have caused widespread deterioration; railroads and the electricity grid have not evolved beyond their Soviet-era configurations, and cannot ensure nationwide service coverage. High transportation costs and frequent power outages, coupled with domestic market 
fragmentation and numerous (nationwide and local) monopolies, continue to undermine 
competitiveness. The underdeveloped financial system, still largely dependent on financing from international development partners and worker remittances, is another impediment to economic 
growth.  
1.4 The Kyrgyz Republic remains a net food importer , with a widening agricultural trade deficit; 
several staple foodstuffs are imported almost exclusively from Kazakhstan. Imported oil and gas 
are estimated to account for more than half of primary energy consumption. The unemployment 
rate has been high for over a decade, causing many working-age Kyrgyz to seek employment opportunities abroad.
  
Table 1.1 Selected macroeconomic indicators, 2006-12 
  2006  2007  2008  2009  2010 2011 2012  
Miscellaneous  
Population growth (%) 1.1 0.8 1.1 1.3 1.1 1.4 2.0 
Current GDP (US$ million) 2,833.3 3,803.4 5,140.7 4,691.5 4,794.8 6,197.8 6,474.9 
e.g. GDP per capita at current 
market price (US$) 557.3 740.1 969.2 865.9 875.3 1,116.3 1,143.4 
Real GDP (%age change) 3.1 8.5 8.4 2.9 -0.5 6.0 -0.9 
Employment (%age change) 0.9 2.7 1.5 1.5 1.2 1.5 .. 
Unemployment rate (%) 8.3 8.2 8.2 8.4 8.4 8.5 .. 
Sectoral distribution of nominal GDP (%) 
Agriculture and forestry 28.7 26.9 23.5 18.8 17.4 16.6 17.5 
Mining 0.4 0.5 0.5 0.5 0.6 0.8 1.3 
Manufacturing 11.0 9.9 13.2 14.2 17.0 18.3 12.5 
  e.g. processed gold from Kumtor 
 mine 3.1 2.7 5.9 7.3 11.3 12.2 6.6 
Electricity, gas and water supply 3.5 2.7 1.4 2.2 3.1 3.4 3.0 
Construction 2.7 3.6 5.3 6.7 5.5 4.9 5.7 
Services 41.3 42.9 43.0 46.6 46.1 45.0 46.6 
  e.g. wholesale and retail trade, 
 repair 18.4 17.9 16.3 16.8 16.0 15.2 16.2 WT/TPR/S/288 • Kyrgyz Republic 
 
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    2006  2007  2008  2009  2010 2011 2012  
  Hotels and restaurants 1.4 1.2 1.3 1.3 1.3 1.5 1.5 
  Transport and communication 6.1 7.4 7.9 8.8 8.6 8.1 8.6 
  Finance 0.5 0.8 0.8 0.7 0.6 0.6 0.6 
  Real estate 2.9 3.0 4.0 4.6 4.8 4.3 4.1 
  Government 4.4 4.3 4.6 5.3 5.6 5.1 5.1 
  Education 4.0 4.5 4.2 4.4 4.4 5.3 6.0 
  Health and social services 2.3 2.1 2.1 2.6 2.6 3.0 2.7 
  Community, social and personal  1.3 1.6 1.7 2.1 2.3 1.9 1.9 
Tax on products 12.5 13.5 13.1 11.0 10.2 11.0 13.4 
Government finance (% of GDP)  
Current revenue 22.0 25.0 24.2 27.5 26.0 27.0 28.5 
 Tax revenue 17.6 18.7 19.1 17.9 17.9 18.5 21.0 
Current expenditure 22.2 20.8 19.7 24.9 27.9 28.8 32.9 
Government total debt 72.4 57.0 48.6 58.5 59.7 50.1 50.0 
 Domestic debt  6.1 5.0 4.0 4.2 3.8 4.5 4.3 
National accounts (%age change)  
Private consumption expenditure 17.3 2.7 11.5 -13.1 2.2 8.6 13.1 
Government consumption 
expenditure -1.0 1.8 0.7 0.7 -2.5 1.3 3.8 
Gross fixed capital formation 49.4 10.8 13.2 8.5 -7.1 -4.4 .. 
Exports of goods and services 8.9 25.8 9.1 -1.1 -11.7 15.7 -11.3 
Imports of goods and services 45.0 11.0 13.6 -19.4 -6.9 14.9 18.5 
Prices and interest rates (end-period)  
CPI (%age change, end-period) 5.1 20.1 20.0 0.0 19.2 5.7 7.5 
Exchange rate  
KGS/US$ (annual average) 40.2 37.3 36.6 42.9 46.0 46.1 47.0 
Real effective exchange rate 
(%age change)a -3.8 4.2 10.4 4.4 -4.3 6.9 -1.2 
Memorandum:  
Current account balance 
(% of GDP) -9.3 -6.0 -13.8 -2.0 -6.5 -7.8 -22.1 
Trade in goods and services 
(% of GDP) 124.8 137.8 146.2 133.1 133.7 136.9 149.0 
   Exports 45.3 53.2 53.9 54.6 52.3 55.0 48.7 
   Imports 79.5 84.6 92.3 78.5 81.4 81.9 100.4 
International reserves, excl. gold 
(US$ million) 764.3 1,107.2 1,152.9 1,494.0 1,603.6 1,703.0 1,903.2 
 in months of imports of goods 
 and services 3.0 3.0 4.0 4.9 4.1 3.6 3.3 
Total external debt (% of GDP) 79.9 93.6 69.9 87.8 91.4 78.6 85.0 
 Public external debt (% of GDP) 69.4 54.3 40.6 53.7 55.4 47.5 47.9 
.. Not available. 
a A negative sign indicates depreciation. Source: IMF (2012), International Financial Statistics ; National Bank of Kyrgyz Re public online information; 
and authorities of the Kyrgyz Republic. 
1.2  Recent Economic Developments 
1.5 The Kyrgyz economy grew erratically during the review period, on account of harsh climatic 
conditions in 2009, domestic political and ethnic crises in 2010, and a sharp decline in gold production in 2012 due to several problems at the only large-scale mining facility. Amid the WT/TPR/S/288 • Kyrgyz Republic 
 
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  volatile economic performance, budgetary outlays have generally been on the rise, whereas 
revenue streams have not kept apace. Neverthe less, the debt burden remains manageable; the 
authorities obtained debt relief from Turkey (US$49.2 million) and Russia (US$188.9 million) in 
2012, and a further US$300 million write-off is to take place over ten years, from 2016. 
1.6 The government formed at end 2010 revisited so me tax policies and took steps to improve 
tax administration. Recent efforts to improve the fiscal position have included: imposing limits on government agencies' spending; enforcing the ex clusive placement of government securities 
through an auction system operated by the Na tional Bank of the Kyrgyz Republic (NBKR); 
introducing stricter reporting requirements for th e largest state-owned enterprises; and reducing 
the scope of the simplified import regime, allowing substitution of ad valorem  tariffs with a uniform 
weight-based duty. During 2011-13, the authoritie s undertook to raise wages, pensions, and the 
minimum monthly income under social assistance programmes, resulting in an estimated 2% 
increase in budgetary outlays. Savings-oriented me asures have focused on reducing the number of 
civil servants by 15% (savings estimated at 0. 3% of GDP) and planned implementation of an 
electronic public procurement system. A fiscal amnesty programme aimed at expanding the tax 
base through reduction of informal economic  activity was also launched in July 2013. 
1.7 During the review period, inflation was driven mainly by international food and fuel prices, 
reflecting the relatively complete pass-through to domestic prices. Steady inflows of worker 
remittances and the recent increases of public sector wages and pensions also contributed to inflationary pressures. Mindful of the weaker (interest rate and credit) channels of monetary policy transmission in a transitional economy, the NBKR has retained the objective of containing inflation 
at single-digit levels, in the absence of adverse sh ocks. In the first half of 2013, inflation was 8.1% 
on an annualized basis. 
1.8 The Kyrgyz Republic maintains a flexible exchange rate regime, without restrictions on 
payments and transfers for current international transactions. The NBKR has pursued a policy of 
limited intervention in the interbank foreign exchange market aimed at mitigating excessive volatility and ensuring orderly market conditions . Foreign exchange reserves more than doubled 
between 2006 and 2012. 
1.9 During the review period, the current account of the balance of payments remained 
structurally in deficit, attributable above all to the goods component. While favourable gold prices have provided a boost to export revenue, it ha s remained a poor match for sustained merchandise 
imports driven by purchases of energy products , foodstuffs and capital goods. International 
development partners have continued to play a ke y role in financing the balance-of-payments gap. 
Table 1.2 Balance of payments, 2006-12 
(US$ million) 
  2006 2007  2008  2009  2010 2011 2012  
Current account balance -264.2 -227.9 -707.6 -93.9 -312.5 -483.6 -1,430.6 
Goods, services, and income 
balance -1,016.6 -1,246.4 -2,183.5 -1,301.1 -1,703.8 -2,322.2 -3,492.1 
 Goods and services balance -968.5 -1,195.9 -1,976.8 -1,119.7 -1,398.7 -1,663.1 -3,347.7 
  Goods balance -886.5 -1,275.8 -1,879.1 -1,119.8 -1,202.2 -1,668.9 -3,045.9 
Exports 906.0 1,337.8 1,874.4 1,693.8 1,778.7 2,267.0 1,920.6 
Imports 1,792.4 2,613.6 3,753.5 2,813.6 2,980.9 3,935.9 4,966.5 
  Services balance -82.0 79.9 -97.7 0.1 -196.5 5.8 -301.8 
Exports 378.7 684.8 896.1 869.1 727.8 1,143.8 1,230.1 
Imports 460.8 604.8 993.8 869.0 924.2 1,138.0 1,531.9 
  Income balance -48.1 -50.5 -206.7 -181.4 -305.1 -659.1 -144.4 
Compensation of 
employees -24.2 -20.8 -24.3 -25.8 -32.3 -29.4 -28.9 
Investment income -23.8 -29.7 -182.5 -155.6 -272.8 -629.8 -115.5 
  Current transfers (net) 752.4 1,018.5 1,476.0 1,207.1 1,391.3 1,838.7 2,061.5 
General government 12.4 30.9 45.9 194.9 78.2 83.3 63.2 
Other sectors 740.0 987.6 1,430.1 1,012.1 1,313.1 1,755.4 1,998.3 WT/TPR/S/288 • Kyrgyz Republic 
 
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    2006 2007  2008  2009  2010 2011 2012  
Capital and financial 
account 287.9 892.7 385.7 416.4 423.7 893.3 1,138.4 
Capital account (net) -43.9 -74.9 -5.7 16.3 -11.1 64.1 166.1 
Financial account (net) 331.8 967.6 391.4 400.0 434.8 829.2 972.4 
Direct investment 182.0 208.9 377.1 189.6 437.6 693.6 372.1 
Kyrgyz's direct 
investment abroad 0.0 1.0 0.1 0.3 0.0 0.1 0.0 
 Direct investment in 
 Kyrgyz Republic 182.0 207.9 377.0 189.4 437.6 693.5 372.2 
 Portfolio investment -3.0 -28.3 -4.5 -13.9 27.1 -0.3 5.7 
Other investment 138.8 786.9 18.7 224.3 -29.9 135.9 399.1 
Assets (- accretion) -24.0 11.5 -352.0 -237.5 128.7 -232.1 144.1 
 Liabilities (+ accretion) 162.8 775.4 370.7 461.8 -158.6 368.0 450.8 
Net errors and omissions 160.2 -348.1 415.5 -82.2 -45.8 -303.8 480.9 
Overall balance of 
payments 183.9 316.7 93.6 240.3 65.5 105.9 188.7 
Source: National Bank of the Kyrgyz Re public online information. Viewed at: 
http://www.nbkr.kg/index1.jsp?item=138&lang=ENG  [24.07.13]; and data provided by the Kyrgyz 
authorities. 
1.10  Conscious of the need to improve the busine ss environment, the authorities have taken 
steps to strengthen governance, streamline public  administration and reduce bureaucracy. Recent 
structural reforms include: consolidating ministries and government agencies; reducing the number of licences and permits, as well as the entities with powers to inspect businesses; and establishing a State Service on Fighting Economic Crimes. Nevertheless, uncertainties stemming 
from weak protection of property rights and non- transparent licensing practices, particularly in 
mining, continue to discourage private investment. The business community has also flagged the authorities' poor compliance with legislative provisions requiring public consultations and 
regulatory impact assessments prior to the adoption or amendment of normative acts and 
regulations. 
1.3  Trade and Investment Patterns 
1.11  The Kyrgyz Republic's total merchandise trade more than doubled during 2006-12, with an 
unsteady pattern reflecting domestic socio-political instability and swings in international commodity prices. Total services trade mirrore d that trend, albeit with more moderate 
fluctuations.  
1.12  Manufactures, fuels, and agricultural goods accounted for more than two thirds of Kyrgyz 
export earnings in 2006. However, despite a gene ral expansion of export volumes, the sum of 
their respective contributions in 2011 was less than that of gold exports; a drop in gold output 
occurred in 2012, but a rebound is expected in 2013 (Chart 1.1 and Table A1.1). The 
compositional shifts reflect the impact of socio-political tensions on domestic production, as well as world price developments. The composition of imports has remained relatively stable, with the 
shares of transport equipment (particularly motor vehicles and parts) and textiles expanding. 
Although the fuel bill more than doubled between 2006 and 2012, its share in total imports 
contracted by about 7 percentage points (Table A1.2). WT/TPR/S/288 • Kyrgyz Republic 
 
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  1.13  During 2006-12, on account of gold purchases at rising international prices, Switzerland 
became the main destination for Kyrgyz merchandise exports; in 2011, its share in merchandise exports proceeds exceeded that of all CIS count ries (Chart 1.2 and Table A1.3). The Russian 
Federation has remained the principal supplier of goods imported into the Kyrgyz Republic, 
although its relative weight in aggregate Kyrgyz  imports decreased by approximately 5 percentage 
points during the period (Table A1.4). Petroleum products, including those under a quota exempt from Russian export tax, account for about 57% of Kyrgyz imports from the Russian Federation. 
During the same period, merchandise shipments to and from China followed opposite trends, with 
the former's relative share contracting and the latte r intensifying to reach 22.5% of total imports.  
1.14  Despite its considerable potential for tourism and (transit-related) transport, the Kyrgyz 
Republic was predominantly a net importer of services during 2006-12. Its services trade deficit 
remains predominantly driven by railroad transpor t and, to a lesser degree, by road transport 
(Table A1.5). Tourism receipts have generally been on the rise, but have yet to offset the equally growing transport bill. 
1.15  In general, foreign direct investment (FDI) in the Kyrgyz Republic has not been 
commensurate with its potential dynamism, partly because of the socio-political instability. According to the authorities, FDI inflows over 2006-12 were mainly channelled into services, 
particularly real estate and financial intermediation. There has also been substantial investment in 
processing industries. The principal countries of origin of FDI are Kazakhstan and Canada (Chart 1.3). WT/TPR/S/288 • Kyrgyz Republic 
 
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  Chart 1.1 Product composition of merchandise trade, 2006 and 2012 
% 
2006 2012
(a)    Exports 
Total:   US$794. 1 million Total:  US$1,683.2 million  
(b)    Imports 
Base metals & 
articles thereof
6.1  (XV)
Chemicals 
8.5  (VI)Precious stones
26.8  (XIV)Machinery;
electrical equip.
4.2  (XVI)
Base metals &
articles thereof
7.7  (XV)
Total:   US$1,718. 2 million Total:   US$5,373. 9 million Transport 
equipment
8.3 (XVII)
Textiles & 
textile 
articles
12.2  (XI)Other
13.4
Other 
11.1Base metals &
articles thereof
3.4 (XV)
Other
13.3Vegetable  products
4.6 (II)
Transport equipment
13.3  (XVII)Transport 
equipment
3.0  (XVII)Other
15.7
Chemicals 
9.0 (VI)Transport equipment
8.0  (XVII)Mineral products
22.4  (V)
Textiles & textile 
articles
12.2  (XI)Base metals &
articles thereof
4.4 (XV)Machinery; 
electrical equip.
6.4  (XVI)Vegetable products
8.8 (II)
Prepared foodstuff, 
beverages & tobacco
7.9  (IV)Prepared foodstuff, 
beverages & tobacco
8.2  (IV)Mineral products
14.9  (V)
Textiles & 
textile articles
7.0  (XI)Textiles & 
textile articles
3.0  (XI)Machinery;
electrical equip.
15.8  (XVI)Machinery; 
electrical equipment
11.8  (XVI)
Plastics & 
rubber 
4.2  (VII)Plastics & 
rubber
5.0  (VII)Articles of stone, 
ceramic & glassware
5.5 (XIII)
Vegetable
products
3.6 (II)Vegetable
products
3.4 (II)
Mineral 
products
30.7  (V)Mineral 
products
22.4  (V)Precious stones
33.8  (XIV)
 
Note: Data in brackets refer to the HS section number. 
Source: WTO calculations, based on data provided by the Kyrgyz authorities. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Chart 1.2 Direction of merchandise trade, 2006 and 2012 
% 
 
 
Source: WTO calculations, based on data provided by the Kyrgyz authorities. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Chart 1.3 FDI inflows during 2006-12 
By economic activity
Total:  US$4,405.6 millionRussian 
Federation
5.8%
Canada
22.1%
Finance
20.0%Other CIS
0.3%Othera
16.3%
China
11.5%EU27
18.8%Agriculture
0.2%
Construction
2.4%Manufacturing
39.9%Real estate & 
leasing
22.4%
Transport &
communication
2.8%Wholesale 
& retail trade
7.4%By origin
Mining
4.1%
Turkey
2.6%Kazakhstan
22.5%Other services
0.7%
Services
53.3%CIS
28.6%
 
a Including international organizations (2.9%) and the European Bank for Reconstruction and 
Development (0.6%). 
Source: WTO calculations, based on data provided by the Kyrgyz authorities. 
1.4  Outlook 
1.16  The Kyrgyz Republic's medium-term economic gr owth prospects remain uncertain due to the 
lingering socio-political tensions, which could undermine structural reform efforts. The Kyrgyz economy remains vulnerable to external shocks, including weather-related factors and fluctuations 
in global commodity prices. Inadequate infrastr ucture and an underdeveloped financial system 
continue to exacerbate its vulnerability. Give n the scale of public expenditure needed to 
rehabilitate basic infrastructure and expand social services, in the medium term the fiscal (non-grant) and trade imbalances are very likely to persist. Recourse to external financing, 
including support from development partners, would probably remain a key factor in the 
acceleration of economic activity.  
1.17  The authorities expect annual GDP growth of  no less than 6% during 2013-16, on the 
assumption of a swift rebound in gold production  and stable economic relations with the Kyrgyz 
Republic's main trading partners. The manufacturing sector is expected to quickly recover, while construction is projected to expand considerably. Inflation is expected to remain in the upper end 
of the 5%-10% range. The authorities acknowledge that economic performance may be 
considerably worse, in the event of adverse shocks. WT/TPR/S/288 • Kyrgyz Republic 
 
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  2  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.1  General Constitutional and Legal Framework 2.1.  There have been significant changes in the structure and operation of the Government 
following the 2010 ethnic violence, departure of the two previous presidents, establishment of an 
interim government, and the entry into force of a new constitution. The stability of the 
Government was threatened during the 2010 uprising, but the interim government proceeded with the planned referendum on a new draft constituti on in June 2010. The Constitution was approved 
by the voters and immediately replaced the old constitution. Its most important aspect was a shift 
in power from the President to the parliament ( Jogorku Kenesh ). Under the Constitution, a hybrid 
system is established in which the President, Prime Minister, and parliament share power. Previously, the Prime Minister appointed the President; now the parliament has a role in appointing 
the President. Although the President is weaker under the new Constitution, the President has the 
authority to sign and publish laws, may return laws with objections to the Jogorku Kenesh, acts as 
Commander-in-Chief of the Armed Forces, and has the right to appoint and dismiss members of 
the Government. 
2.2.  The new Constitution also introduced changes to the judicial system, which is being 
simultaneously examined for reform. The changes for the judiciary involved the Constitutional 
Chamber, which shall act as part of the Supr eme Court, and the mandate and appointment of 
judges. In 2012 a commission was established to prepare a strategy for judicial reform, in particular to make the process more transparent and reduce corruption. The reforms are scheduled to be finalized by 2016. 
2.2  Development and Administration of Trade Policy 
2.2.1  Main trade laws 2.3.  The Law on State Regulation of Foreign Tr ade sets the overall framework for foreign trade, 
which includes the international exchange of goods, services, information, and rights with respect 
to intellectual activity, i.e. intellectual property rights. Its purpose is to protect the economic sovereignty of the Kyrgyz Republic, promote foreig n trade activities, and ensure the integration of 
the Kyrgyz economy.
1 Article 5 of the law sets out the principles of Kyrgyz foreign trade policy 
relations with foreign states. These are built on the basis of respect for obligations arising from international treaties, including international instruments relating to customs unions and free-trade areas.  
2.4.  Articles 3 and 9 set out the legal framework fo r foreign trade activities. Article 3 provides that 
foreign trade activities are regulated by the Constitution, this law, other laws and legal acts, and international treaties. Article 9 provides that th e executive branch is responsible for regulations 
relating to foreign trade activities. Other provisions in the law provide for the customs tariff, 
quantitative restrictions, export controls, state monopolies, protective measures, prohibitions and restrictions, technical regulations, free economic zones, and promotion and monitoring foreign 
trade activities. 
2.5.  Two legislative changes to the Law, both in 2011, concerned export controls and export 
prohibitions.
2 According to the authorities, these we re a consequence of the changes in the 
Constitution that re-aligned powers granted to the President, parliament, and Prime Minister.  
2.6.  In addition to the main law on State Regulation of Foreign Trade, several other laws are 
concerned with trade policy and form part of the basic legal framework (Table 2.1). There are also 
many government decrees, resolutions, and orders that provide legal or regulatory direction and 
procedures on trade issues. 
                                               
1 Law of the Kyrgyz Republic, 2 July 1997, No. 41. 
2 Laws of the Kyrgyz Republic of 5 October 2011, No. 161 and 4 November 2011, No. 201. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Table 2.1 Main trade-related legislation 
Law Description  Reference 
Law on State Regulation of 
Foreign Trade Foreign trade framework 2 July 1997, No. 41 
Law on Licensing Framework for all licensing, including import and 
export licensing 3 March 1997, No. 12 
Customs Code Customs framework for all matters for goods 
crossing the border 12 July 2004, No. 87 
Customs Tariff Customs tariff and preferences 29 March 2006, No. 81 
Law on Investment Main investment law framework 27 March 2003, No. 66 
Anti-dumping Act  Regulates conduct, proc eedings, and application 
of anti-dumping measures 31 October 1998, No. 139 
Law on Subsidies and 
Countervailing Measures Regulates conduct, proc eedings, and application 
of countervailing measures 31 October 1998, No. 140 
Law on Safeguard 
Measures Regulates conduct, proc eedings, and application 
of special safeguard measures 31 October 1998, No. 141 
The Act on Export Controls Provisions  of the national system of export 
controls 23 January 2003, No. 30 
Tax Code Overall tax law and policies 17 October 2008, No. 230 
Civil Code Regulations of the civil legislation 8 May 1996, No. 15 
Law on Technical 
Regulations Legal basis for establishing technical regulations 22 May 2004, No. 67 
Source: Compiled by the Secretariat from information from the Kyrgyz authorities. 
2.2.2  Ministry and private-sector involvement in trade policy 
2.2.2.1  Government trade policy framework 
2.7.   The Ministry of Economy is the central body in the executive given authority for the functions 
of state policy on tariffs, licensing, investment, and foreign trade.3 It is guided by the Constitution, 
normative legal acts, international law, and treaties that have entered into force for the Kyrgyz 
Republic. Several decrees and regulations of the Kyrgyz Republic have established an inter-departmental commission on the WTO in which various ministries and other state bodies have a 
role in developing WTO-related policy and overseeing obligations (Chart 2.1). 
Chart 2.1 Main bodies involved in trade policy formulation and implementation 
First Deputy Prime Minister
National BankMinistry of 
Transport and 
CommunicationsMinistry of 
HealthMinistry of 
Agriculture 
and Land 
ReclamationMinistry of 
Culture and 
TourismMinistry of 
EnergyPrime Minister
Ministry of 
FinanceMinistry of 
Foreign 
AffairsMinistry of 
Economy
Interdepartmental
Commission on WTOState Tax 
Service
State Customs 
Service
 
Source: Information provided by the Kyrgyz authorities. 
                                               
3 Kyrgyz Decree of 4 June 2013, No. 312. WT/TPR/S/288 • Kyrgyz Republic 
 
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  2.2.2.1.1  WTO inter-de partmental Commission 
2.8.  The WTO inter-departmental Commission was created in 1999 to coordinate WTO multilateral 
trade issues. In particular, it sets out the distribution and responsibilities of the ministries and other government bodies with respect to the WTO Agreements.
4 The Ministry of Economy is given 
the primary role in coordinating the commission and has the most responsibilities for ensuring 
compliance with WTO obligations under the GATT and GATS. Several other ministries are given direct responsibilities over certain agreements  or provisions. For example, the Ministry of 
Agriculture and Land Reclamation has responsibility for the provisions of the WTO Agreement on 
Agriculture. The inter-departmental Commission meets as needed, typically about five times per year. The government bodies are represented at the level of minister, deputy minister, or head of department. Certain representatives from the private sector or civil society, i.e. Chamber of 
Commerce, may also be invited to attend sessions of the Commission.
5 
2.2.2.1.2  Ministry of Economy 2.9.  Due to many government reforms and re-structuring in recent years, there have been 
several changes to the ministries. Since the last review, the Ministry of Industry, Trade, and 
Tourism has changed four times. In 2007 it was Mi nistry of Economic Development and Trade, in 
2009, the Ministry of Economic Regulation, in 2011, the Ministry of Economy and Anti-trust Policy, 
and in 2012, it became the current Ministry of Economy.  
2.10.  The Ministry of Economy is the principal ministry involved in trade policy matters and takes 
the lead role in WTO multilateral trade policy. Its functions include development and 
implementation of public policy in the areas of anti-monopoly, tariffs, licensing, investment, and 
foreign economic and fiscal policy, with the aim of creating a favorable environment for business 
and entrepreneurship. It has other roles in state material reserves, economic and regional 
development, state property and mineral reso urces management, technical regulation and 
metrology, and the development of free economic zones.  
2.2.2.2  Involvement of the private sector in trade policy 2.11.  The Kyrgyz Republic has 41 public sector advisory councils that work with various ministries 
and departments. Their advisory or supervisory function is to allow the private sector to interact 
with the Government and to promote transparency . They comprise persons from civil society, 
academia, business, and non-government entities. The councils for the ministries and bodies involved in trade play important roles in the formulation of tariff, non-tariff, investment, and other 
policies.  
2.12.  The public supervisory council under the State Customs Service was established in 
December 2010 to involve civil society in customs matters and increase transparency.
6 The main 
functions of the council are to promote and discuss public initiatives, implement public monitoring 
and effective implementation of decisions, a ssess the effectiveness of public services, and 
implement public control, efficiency, and transp arency over budgetary funds and special donor 
accounts.  
2.13.  The Ministry of Economy's public supervisory council was established in 2011 to allow the 
Ministry to take into account public opinion in developing its policies.7 The council has a role in 
discussing initiatives, assisting in finding soluti ons, promoting transparency and efficiencies, and 
promoting public opinion. 
2.14.  The Investments Council was established by a resolution of the Government in 2010 in 
order to have a unified state policy on impr oving the business environment and investment 
situation (see section 2.6).8 
                                               
4 Kyrgyz Decree of 23 June 2003, No. 374. 
5 Kyrgyz Decree of 23 June 2003, No. 374. 
6 Kyrgyz Decree of 1 December 2010, No. 5-16/420. 
7 Kyrgyz Decree of 13 June 2011, No. 102. 
8 Kyrgyz Resolution of 5 August 2010, No. 149. WT/TPR/S/288 • Kyrgyz Republic 
 
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  2.15.  The Chamber of Commerce and Industry of the Kyrgyz Republic represents business 
interests to the government, participates on the public advisory councils, and otherwise facilitates the development of the Kyrgyz economy. It also has a direct role in issuing certificates of origin (section 3.2.1). It may be invited to participate in the inter-departmental commission. 
2.3  Trade Policy Objectives 
2.3.1  General objectives 2.16.  The Kyrgyz Republic does not follow one pa rticular trade policy or objective; rather it 
pursues a multi-faceted approach depending on its interests. In this respect, it has pursued 
bilateral, regional, and multilateral trade initiatives in recent years and expects to continue to do so in the future.  
2.17.  Certain specific trade policy objectives for 2013-17 are set out in the Kyrgyz Republic’s 
National Sustainable Development Strategy. In particular, the strategy recognizes the trade deficit 
and the weakening export capacity in recent year s, and aims to reverse these trends through an 
export development strategy and by promoting the ex port of services. Export growth is also to be 
supported by the development of the transport in frastructure, marketing and information support 
for export-oriented enterprises, and implementati on of the one-stop-shop for obtaining clearance 
documentation.  
2.18.  The strategy emphasises the importance of completing the necessary procedures to accede 
to the CIS Customs Union and Single Economic Space (also known as the Common Economic Space) in order to expand foreign trade and improve cooperation. In particular it notes the high volumes of trade with these countries and the high level of integration among Customs Union 
members. Acceding to the customs union is a priority as it would create new opportunities as a 
result of the duty-free movement of goods and th e free flow of capital, services, and labour. In 
2013, the Kyrgyz Republic expects to reach agr eement with Customs Union members on sensitive 
and preferential commodity groups in order to protect its national interests.  
2.3.2  Sectoral objectives 2.19.  Certain sectors have been identified in various strategies for further trade development 
objectives. The National Sustainable Development Strategy provides for the development of the 
textiles and clothing industry through the crea tion of the Textile and Garments Industry 
Technopolis project. This provides for the in vestment of US$33.4 million during 2014-15 to 
improve manufacturing, logistics, and infrastructure, as this is an important export-oriented 
industry for the country. The agri-products sector is also identified for similar initiatives. 
Construction of infrastructure and creation of logistical support to facilitate agri-product exports to the customs union is planned for 2013-14. 
2.20.  The National Export Strategy also contains policy objectives for certain industries. In order 
to boost exports, it has targeted six sectors (clothing, tourism, raw and processed fruits and vegetables, raw and processed meat, bottled water, and dairy products) for export growth and 
development. Specific strategies for each sector contain numerous provisions, such as improving 
access to finance, introducing trade facilitating  measures, and improving the SPS infrastructure 
(see section 3.2.7). 
2.4  Trade Agreements and Arrangements 
2.4.1  Participation in the WTO 
2.21.  After gaining independence from the former  Soviet Union, the Kyrgyz began a process of 
opening borders and trade, as well as its accession process to the WTO. It was one the 
first countries from the region, and the first CIS country to accede in 1998 with a very open trade 
regime. The Kyrgyz Republic bound all tariffs in its accession process and liberalized many sectors by participating in most of the Uruguay sectorial initiatives, 138 services subsectors, the 
Information Technology Agreement, and agre eing to join the Government Procurement 
Agreement. WT/TPR/S/288 • Kyrgyz Republic 
 
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  2.22.  The Kyrgyz Republic has submitted proposals in the Doha negotiations, participated in the 
work of committees and the moni toring exercise, and has been active in development and aid-for-
trade areas. It has not yet used the WTO dispute settlement mechanism, nor has it initiated any anti-dumping or countervailing duty investigations. Most recently, in July 2013, it notified the 
initiation of a safeguard investigation on wheat flour.
9 
2.23.  During 2006-12, the Kyrgyz Republic made five proposals to negotiating bodies, in 
agricultural and NAMA issues concerning recent ly acceded Members. While the Kyrgyz Republic 
made many notifications during the period unde r review (Table A2.1), notifications remain 
outstanding or in need of update in a number of areas, e.g. import licensing, QRs, safeguards, and 
rules of origin. 
2.4.2  Regional, bilateral, and preferential trade 
2.4.2.1  Overview  
2.24.  The Kyrgyz Republic's trade with its neighbouring CIS partners is an important part of its 
trade relations. Based on historical trade ties, shared culture and language, as well as a large 
diaspora population of Kyrgyz people in these countries, trade with the CIS accounts for about half 
of all Kyrgyz trade (Chart 2.2). While imports ha ve become somewhat more diversified since 2007, 
exports have been more concentrated in these traditional markets, accounting for 52.4% of total 
exports in 2012. The origin of most CIS imports is  the Russian Federation, while the majority of 
exports are destined for Kazakhstan. 
                                               
9 WTO Document G/SG/N/6/KGZ/4. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Chart 2.2 Preferential trade, 2007 and 2012 
2007 2012
Imports
ExportsLDC
0.02%
Russian
Federation
13.0%
MFN
47.6%CIS
49.9% Russian
Federation
33.2%
Kazakhstan
24.1%
Other CIS
3.7%Other CIS
4.0%Belarus
3.0%
CIS
52.4%CIS
50.0%Russian 
Federation
20.7%MFN
50.1%
Kazakhstan
13.0%
Uzbekistan
11.3%Russian
Federation
40.4%
Kazakhstan
9.7%
MFN
50.0%
Kazakhstan
18.0%CIS
63.0%
Other CIS
4.0%MFN
36.9%
Uzbekistan
5.0%
Uzbekistan
7.6%Other CIS  
4.6%LDC
0.05%
 
Source: Data provided by the authorities of the Kyrgyz Republic. 
2.4.2.2  Free-trade agreements 
2.25.  The establishment of bilateral or region al free-trade agreements has been part of the 
Kyrgyz Republic's trade policy since shortly afte r its establishment in 1991. All of its free-trade 
agreements involve countries of the region and build upon long-established trade and economic 
ties, in particular with the creation of the CIS in the early 1990s (Table 2.2).  
2.26.  Imports of goods from free-trade partners ar e duty free, if originating, and generally export 
duties may or may not be applied to these countries. The free-trade agreements cover trade in WT/TPR/S/288 • Kyrgyz Republic 
 
- 24 - 
 
  goods; six have been notified to the WTO Committee on Regional Trade Agreements, but three 
have not.10 
Table 2.2 Free-trade agreements or regimes 
Partner Type of arrangement Date 
Russia Free trade agreement 8 October 1992 
Kazakhstan Free trade agreement 22 June 1995 
Uzbekistan Free trade agreement 24 December 1996 
Azerbaijan Free trade agreement 12 January 2004 
Armenia Free trade agreement 4 July 1994 
Moldova Free trade agreement 26 May 1995 
Ukraine Free trade agreement 26 May 1995 
Belarus Free trade agreement 30 March 1999 
Tajikistan Free trade agreement 19 January 2000 
Turkmenistan Free trade regime 29 March 2006 
Source: Information provided by Kyrgyz authorities. 
2.4.2.3  Eurasian Economic Community 
2.27.  The agreement on the establishment of th e Eurasian Economic Community was signed by 
five countries in 200011 in order to build closer trade and economic ties, leading to the 
establishment of a customs union. It has achieved a high level of integration on a number of trade 
issues, including a common tariff nomenclature. The Eurasian Economic Community is a priority 
area for cooperation and deeper integration fo r the Kyrgyz Republic, especially as regards 
international transport corridors, creation of a common energy market, energy transportation, mutual investments in the industrial sector, and labour migration issues. 
2.28.  In March 2012 a meeting of the Inter-Stat e Council of the Eurasian Economic Community 
was held in Moscow City, where progress was made regarding re-organization of the community and plans for transition to a new mechanism of integration and cooperation were discussed. A 
major focus was toward establishing the Eurasian Economic Union, which is envisioned for 2015, 
with work ongoing on the draft agreement. 
2.4.2.4  Customs Union 2.29.  In 2011, the Kyrgyz Republic declared its intention to join the treaty on the Commonwealth 
of Independent States Free Trade Area (also known as the Customs Union (CU) and now, the 
Single Economic Space). It currently comprises Belarus, Kazakhstan, and Russia as full members 
applying the common external tariff (CET). An Inter-Ministry Commission has been established by 
the Kyrgyz government to coordinate the positions and activities of the various ministries, 
departments, and local authorities, and to ne gotiate on behalf of the Kyrgyz Republic.  
2.30.  The accession process of the Kyrgyz Repub lic was confirmed by the authoritative body of 
the Customs Union in 2011.
12 In 2012, a working group was established to conduct negotiations 
with the Kyrgyz Republic on accession to the Customs Union. The working group adopted a joint 
plan of action in order to prepare and adopt the roadmap for accession by the end of 2013. The 
roadmap includes consideration of adapting normative and legal acts on sanitary, phyto-sanitary, 
veterinary, customs, technical, and financial issues.  
2.31.  Several studies and assessments of the economic and legal impact of the Kyrgyz Republic 
joining the Customs Union, have noted that it would have a major impact on the country's foreign 
                                               
10 WT/REG114/N/1, WT/REG81/N/1, WT/REG76/ N/1, WT/REG73/N/1, WT/REG74/N/1, and 
WT/REG75/N/1. 
11 Republic of Belarus; Republic of Kazakhstan; Ky rgyz Republic; Russian Federation, and Republic of 
Tajikistan. 
12 Meeting of Eurasian Economic Community on 19 October 2011 in St. Petersburg. WT/TPR/S/288 • Kyrgyz Republic 
 
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  trade and trade policy.13 Trade with the Customs Union countries is significant, accounting for 
about half of Kyrgyz trade, and has generally been growing in recent years.  
2.32.  Joining the Customs Union would have a significant trade policy impact on the Kyrgyz 
Republic. Accession would require adherence to the entire legal framework of the CU, unification of 
the national legislation on the regulation of foreign trade and bringing it into compliance, and 
consideration of changes or amendments to bila teral and multilateral agreements related to 
foreign trade, economic, and customs activities. From a WTO perspective, a significant aspect 
would be the harmonization of the Kyrgyz tariffs with those of the Customs Union, which would 
raise current low-tariff levels to the relatively high-tariff system that currently exists for the Customs Union. The average rate of duty for the customs union is 10.5% while that of the Kyrgyz 
Republic is 5%.
14 According to the study by the Eurasian Development Bank: 
 30% of Kyrgyz duties align with those of the customs union, and thus would not need to 
be changed; 
 21% can be re-aligned with those of the customs union without violating WTO 
commitments; but 
 Nearly 50% do not align and would require re-negotiations and compensation to WTO 
Members. 
2.33.  Significant tariff differences exist for meat and prepared meat products, alcoholic 
beverages, certain chemical products, wood and paper, iron and steel, aluminium, and furniture; whereby the average tariff rates of the customs union  exceed those of the Kyrgyz Republic by 10% 
or more. At present, the Kyrgyz Republic has not invoked Article XXVIII or Article XXIV procedures 
to re-negotiate its WTO tariff commitments, and it is unclear how compensation could be given for 
such a large number of tariff lines with significant tariff differences. However, it is foreseen that with the accession of Kazakhstan and Belarus to the WTO, the Customs Union CET would be 
lowered, and thus the impact on Kyrgyz tariffs would be lessened.  
2.34.  Adherence to the CU would also involve other substantive changes in the trade policy of the 
Kyrgyz Republic, with a significant impact on its economy. The cancellation of the "simplified" 
import procedure would likely have a negative impact on Kyrgyz's role as a re-exporter of 
third-party goods. Strengthened customs contro ls, adherence to a unified system of tariff 
preferences, and intra-customs-union production and investment integration are likely to have an important impact also. 
2.4.3  Preferential regimes 
2.35.  The Customs Tariff Law provides for preferential tariff treatment to certain countries.
15 It 
grants zero duties for all products from 46 least-developed countries.16 Imports from these 
countries are very small, amounting to only 0.02% of total imports in 2012 (Chart 2.2).  
2.36.  The Kyrgyz Republic has not requested to  join the WTO waiver of the provisions of 
Paragraph 1 of Article I of GATT 1994 for deve loping countries to grant preferences to 
least-developed countries.17 The Kyrgyz Republic grants these preferences to certain countries that 
are no longer designated as least developed countries by the UN.  
                                               
13 Eurasian Development Bank (2012); USAID/Th e Services Group/AECOM (2010a) and ( 2010b). 
14 Eurasian Development Bank (2012); USAID/Th e Services Group/AECOM (2010a) and ( 2010b). 
15 Law on the Customs Tariff of the Kyrgyz Republic, 29 March 2006, No. 81. 
16 Afghanistan; Bangladesh; Benin; Bhutan; Botswana ; Burkina Faso; Burundi; Cambodia; Cape Verde; 
Central African Republic; Chad; Comoro s; Dem. Rep. of Congo; Djibouti; Equatorial Guinea; Ethiopia; Gambia; 
Guinea; Guinea-Bissau; Haiti; Kiribati; Laos; Lesotho; Liberia; Mauritania; Madagasca r; Malawi; Mali; Maldives; 
Mozambique; Myanmar; Nepal; Niger; Rwanda; Sao Tome and Principe; Solomon Islands; Somalia; Sudan; 
Sierra Leone; Tanzania; Tuvalu; Uganda; Vanuatu; Western Samoa; Yemen, and Zambia. 
17 WTO Documents WT/L/304 and WT/L/759. WT/TPR/S/288 • Kyrgyz Republic 
 
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  2.5  Trade Disputes and Consultations 
2.5.1  Dispute settlement in the WTO 2.37.  The Kyrgyz Republic has not used the WTO dispute settlement procedures to date either as 
a complainant or third party. According to the authorities, this is mainly because there have not 
been many trade tensions with WTO Members, and trade issues with the CIS countries are 
generally settled within the CIS framework. 
2.5.2  Regional or bilateral dispute systems 
2.38.  The CIS has a mechanism to settle disputes. Potential disputes are often settled through an 
intergovernmental commission. Disputes may also be settled through the Eurasian Economic Community framework. 
2.6  Foreign Investment Regime 
2.39.  The Kyrgyz Republic has placed a high prio rity on attracting foreign direct investment in 
recent years. It has established an Investment Council to aid in business outreach and has reviewed policies and laws to make investment in the Kyrgyz Republic more attractive. As a result, 
foreign investment has generally increased from 2006-07 levels, mostly in the processing, real 
estate, and services sectors, although it declined slightly in 2012. The Kyrgyz Republic has also ranked among the top 20 economies for highest in ward FDI rates of return, according to UNCTAD. 
However, FDI into the Kyrgyz Republic remains low overall, especially compared with its 
neighbours in central Asia.
18 
2.6.1  Legal framework 2.40.  Laws and related regulations on investment were put in place to create an open investment 
regime and give certain guarantees to investors (Table 2.3) The Law on Investments provides the 
main framework for investments.
19 According to the authorities, it sets out all the main elements 
for facilitating investment. Its main elements are:  
 National treatment and non-discrimination for foreign investors;  
 Guarantees against nationalisation and expropriation;  
 Repatriation of profits;  
 Freedom of foreign exchange;  
 Certain legal guarantees;  
 Basic investor's rights;  
 Employment of foreign workers; and,  
 Arbitration in the case of disputes. 
Table 2.3 Main laws governing investment in the Kyrgyz Republic 
Law or legal act Reference Information 
Law on Investments Law of 27 March 2003, No. 66 Establishes basic principles of state 
investment policy aimed at 
improving the investment climate and attracting dome stic and foreign 
investment through a fair and equal legal regime for investors and guarantees of protection of the 
investments  
Law on Public-Private Partnership  Law of 22 February 2012, No. 7 Provides a framework for attracting 
investments for infrastructure 
projects 
Law on Introducing a Visa-free 
Regime for citizens from some 
countries for 60 days Law of 21 July 2012, No. 121 Provides visa-free travel for certain 
persons for 60 days 
                                               
18 UNCTAD, 2013 World Investment Report. 
19 Kyrgyz Law of 27 March 2003, No. 66. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Law or legal act Reference Information 
Law on Subsoil Law of 9 August 2012, No. 160 Regulates relations between the 
State and individuals and legal 
entities, as well as with other 
states, in connection with the use 
of subsoil 
Source: Information provided by the Kyrgyz authorities. 
2.41.  While the Law on Investments provides the basic framework, other laws, such as the Tax 
Code, various business laws, the Free Economic Zones Law, etc. may have elements that provide 
security or other provisions to investors, but in and of themselves are not investment legislation.  
2.42.  Pursuant to a 2010 government resolu tion, the Council on Business and Investments 
(Investments Council) was established to provide a unified state policy on attracting investments 
and improving the business and investment situation.20 The Council is chaired by the President of 
the Kyrgyz Republic and its members include the fi rst Vice-Minister, the Minister of Economy, two 
representatives from international development pa rtners, and persons from business associations. 
The Council is tasked with improving the business environment and investment situation, 
reforming the state management system and regula tory functions, and defining a strategy and 
priorities to attract investment. 
2.6.2  Public Investment Programme (PIP) 
2.43.  The PIP is the main instrument for managing public sector investments. These are long-
term infrastructure and investment projects undertaken by the Government with financial support from international financial institutions and the donor community.
21 They generally take the form 
of concessional loans or donor funds. The Government develops annual programmes to prioritize 
the development of main infrastructure facilities, such as roads, energy projects, etc. The Law on 
Public-Private Partnerships defines the role of the State and the private sector in such projects. It 
was revised in 2012, as the 2009 law was reportedly ineffective.22  
2.44.  The National Sustainable Development Po licy (2013-17) points out that there is still 
inadequate selection and control over the PIP proj ects and proposes that it be reduced and re-
focused to support only strategically important national infrastructure projects. Other proposed 
reforms of the PIP include development of new regu lations, regular monitoring, and increasing the 
use of local construction companies in PIP projec ts to reduce the share of imported goods and 
services. 
2.6.3  Investment policy 
2.45.  During 2007-13, a number of country development strategies addressed investment issues. 
The 2007-10 strategy identified a number of issues that needed to be resolved in order to improve 
the investment climate, and various ways to address them. The issues included poor tax 
administration, unpredictable changes in economic policy, high level of corruption, high cost of financing, economic instability, foreign trade regulations, criminality and the court system. The 2009-11 strategy included provisions to attract private investors by eliminating administrative 
barriers, creating favourable customs and tax regi mes, and strengthening trust and sustainability 
of the financial system. 
2.46.  The National Sustainable Development Poli cy sets out an investment policy for 2013-17. It 
includes the establishment of a development bank and specialized investment funds; an institution 
to assess investment opportunities and select priority projects; tax, administrative, and regulatory measures to attract the savings of migrant workers; and reduction of the PIP programme. 
                                               
20 Kyrgyz Resolution of 5 August 2010, No. 149. 
21 These include, inter alia , World Bank, Asian Development Bank, Islamic Development Bank, European 
Bank for Reconstruction and Development, an d bilateral donor countries and programmes. 
22 TRACECA (undated). WT/TPR/S/288 • Kyrgyz Republic 
 
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  2.6.4  Bilateral invest agreemen ts (BIAs) and other initiatives 
2.47.  The investment framework is aided by bilateral investment agreements with a number of 
partners. To date, 28 have been negotiated, but not all have entered into force (Table 2.4). An investment promotion framework under the auspices of the Eurasian Economic Community, serves 
to promote investment among neighbouring Community members. 
2.48.  BIAs are an important element for the ex pansion of bilateral economic links and further 
integration into the world economy. They promote direct investment into the economy by 
protecting investors’ rights and giving certain gu arantees. The BIAs are developed on the basis of 
a common template or model agreement.
23 The model template contains 10 articles and has 
provisions on, inter alia , the promotion of investments, protection of investments, free transfer of 
payments, expropriation and compensation, subrogation, disputes. 
Table 2.4 Bilateral investment agreements  
Agreement Date of signature Date of entry into force 
Armenia  4 July 1994 26 November 1995 
Azerbaijan 23 April 1997 27 August 1997 
Belarus 30 March 1999 11 November 2001 
China 14 May 1992 9 September 1995 
Eurasian Economic Community 12 December 2008 .. 
Finland  3 April 2003 8 December 2004 
France 2 June 1994 10 August 1997 
Georgia 22 April 1997 28 October1997 
Germany 28 August 1997 16 April 2006 
India 16 May 1997 12 May 2000 
Indonesia 18 July 1995 23 April 1997 
Iran, Islamic Republic 31 July 1996 27 July 2005 
Kazakhstan 8 April 1997 .. 
Korea, Republic of 19 November 2007  Not yet in force 
Latvia 22 May 2008 Not yet in force 
Lithuania 15 May 2008 Not yet in force 
Malaysia  20 July 1995 Not yet in force 
Moldova, Republic 7 November 2002  16 November 2004 
Mongolia 4 December 1999 Not yet in force 
Pakistan 26 August 1995 Not yet in force 
Sweden 8 March 2002  1 April 2003 
Switzerland  29 January 1999  17 April 2003 
Tajikistan 19 January 2000 7 December 2001 
Turkey 28 April 1992 31 October 1996 
Ukraine 23 February 1993 Not yet in force 
United Kingdom  8 December 1994 18 June 1998 
United States 19 January 1993 12 December 1994 
Uzbekistan  24 December 1996 6 February 1997 
.. Not available. 
Source: Information provided by the Kyrgyz authorities. 
 
                                               
23 Resolution of the Kyrgyz Republic, "On model agreement between the Government of the Kyrgyz 
Republic and the Government of another state on  stimulation and protection of investments", 
22 November 2004, No. 739- р. WT/TPR/S/288 • Kyrgyz Republic 
 
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 3  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures Directly Affecting Imports  3.1.1  Customs procedures  3.1.1.1  Customs legal framework and Customs Code 
3.1.  Since 1992 the Customs Code has provided the overall architecture for customs rules and 
regulations for the Kyrgyz Republic. A second revi sion of the code was enacted in 1997, followed 
by the most recent version passed by the Government in July 2004.
3.2.  The Code contains 14 Sections, 61 chapters , and 399 articles. It provides for the customs 
regulatory framework, for a wide-ran ge of customs matters (Table 3.1).
1 
Table 3.1 Overview of the Customs Code 
Section Title Overview 
I. General provisions Customs re gulations and basic principles 
II. Country of origin of the goods. Commodity 
nomenclature. Foreign economic activity Country of origin and commodity nomenclature 
III. Preliminary and other customs procedures Arri val of goods, internal transit, and temporary 
storage 
IV. Customs regimes Procedures, release of goods, re-imports, 
temporary import/export, customs warehouses, 
destruction, and processing under customs control 
V. Special customs procedures Transport vehicles, movement of goods by other 
means 
VI. Customs payments Calculation of duties and taxes, custom fees, terms 
of payment, and refunds 
VII. Customs clearance Declaring and release of goods; customs brokers 
VIII. Customs supervision (control) Form and order of customs control 
IX. Protection of Intellectual Property Rights Clearance and control of goods containing 
intellectual property 
X. Customs statistics, information systems, 
and information technology Customs statistics and information systems for 
customs 
XI. Customs organization The authorit ies and their duties and powers 
XII. Disposal of goods and transport vehicles Control over the goods and their transport 
XIII. Information and advice in the field of 
Customs Information, advice, and preliminary decisions 
XIV. Appeal against and examination of 
decisions, activities, or actions of the 
Customs Procedures for appeals agai nst decisions or actions 
by Customs 
Source: Law of the Kyrgyz Republic, 12 July 2004, N 88. Online information viewed at: 
http://www.customs.kg/inde x.php/ru/custzak/posgov. 
3.3.  The 2004 Customs Code was built upon the framework of the previous code. It enacted to 
strengthen a number of areas and to align with pr inciples of the WCO’s Revised Kyoto Convention 
(International Convention on the Simplification and Harmonization of Customs Procedures), in particular to: (i) increase predictability and transparency; (ii) introduce a system of risk 
management and audit methods, including simplified procedures for low-risk traders; (iii) deploy 
an electronic database and electronic submission  of documents; (iv) apply information systems 
and technologies in the customs procedures; and (v) to make information available to concerned 
parties.
2 Consideration was also given to harmonizing the code with those of Russia and 
Kazakhstan, in order to unify the customs regulatory framework of the Eurasian Economic Community and Commonwealth of Independent States. 
                                               
1 Law of the Kyrgyz Republic, 12 July 2004, No. 88. Viewed at: http://www.customs.kg/index.php/ 
ru/custzak/posgov.  
2 Speech of the Chairman of the Revenues Committee under the Ministry of Finance of the Kyrgyz 
Republic, Mr. Malabekov Zamir, regarding updated Cust oms Code of the Kyrgyz Republic; and ESCAP Country 
Studies, Kyrgyzstan, Part Two. Viewed at: http://www.carecprogram.org/uploads/events/2004/Customs-
Reforms-Conference/Country-R eport-KGZ-Customs-Code.pdf . 
 WT/TPR/S/288 • Kyrgyz Republic 
 
- 30 - 
 
  3.4.  A number of further changes have been made to the Customs Code in the last few years to 
simplify and streamline administrative procedures in  order to improve the conditions for trade. In 
particular, changes were introduced to automate accounting and control of movement of goods, use of the "single window" information system, remove potential conflicts between certain articles, 
simplify the permit system, and change the payment terms and interest on customs duties. 
3.1.1.2  International, regional, and bilate ral agreements and cooperation on customs 
3.5.  The Kyrgyz Republic has engaged in international, regional, and bilateral customs co-
operation. It joined the World Customs Organization (WCO) in 2000, and acceded to the WCO's 
Customs Convention on Containers in October 2007.
3 It is not a party  to the WCO's revised Kyoto 
Convention on the simplification and harmonization of customs procedures, or any other WCO conventions or agreements on customs, except  for the Harmonized System Convention (see 
section 3.1.2).  
3.6.  The Kyrgyz Republic is engaged in varying degrees of cooperation with a number of regional 
groups or trade areas (Table 3.2). It follows de cisions and practices of the Eurasian Economic 
Community in which there are approximately 30 instruments regulating customs matters among 
members. In the context of the CIS, around 150 instruments govern customs matters for countries of the region. While there is some harmonization of customs practices and procedures among CIS 
members as a result of Eurasian Economic Community decisions, they are not uniform across 
trading partners. Closest cooperation on filing syst ems, records, etc. has reportedly been achieved 
with Kazakhstan.  
Table 3.2 Bilateral and regional agreemen ts on cooperation on customs matters 
Partner Reference Main elements 
Kazakhstan Protocol of 2 April 2008 Information exchange 
Shanghai Cooperation Organization 
(China, Russia, Kazakhstan, 
Uzbekistan, Tajikistan) Protocol of 30 October 2008 Exchange of information on the 
movement of energy products 
CIS Protocol of 21 November 
2008 Exchange of advance information on 
goods and means of transport 
Russian Federation Protocol of 9 October 2009, 
and Amendment signed 
23 April 2013 Exchange of information 
Economic Co-operation Organization (ECO) (Turkey, Iran, Pakistan, Afghanistan, Azerbaijan, Kazakhstan, Turkmenistan, Tajikistan, Uzbekistan) 2006 Agreements on the establishment of a 
data bank and mutual administrative assistance on customs matters 
Central Asia Regional Economic Co-
operation  CAREC (Azerbaijan, 
China, Kazakhstan, Tajikistan, 
Uzbekistan, Mongolia) .. Two international agreements on 
customs matters  
Russian Federation Protocol of 5 March 2009 Information on customs clearance and 
control 
Russian Federation Protocol of 22 June 2012 Customs clearance and control 
Russian Federation Protocol of 23 April 2013 Simplification of customs operations 
and control 
                                               
3 Law of the Kyrgyz Republic, 6 January 1997, N 7; World Customs Organization online information, 
"Membership". Viewed at: http://www.wcoomd.org/en/about-us/wco-members/~/media/WCO/Public/Global/ 
PDF/About%20us/WCO%20Members/List%20of% 20Members%20with%20membership%20date.ashx ; and 
"Position as Regards Signatures, Ratifications and Accessions, Customs Convention on Containers, 1972". 
Viewed at: http://www.wcoomd.org/en/about-us/legal-in struments/~/media/BE67F8B502DB491D97B386C 
AB0C21EC2.ashx . WT/TPR/S/288 • Kyrgyz Republic 
 
- 31 - 
 
  Partner Reference Main elements 
Tajikistan Protocol of 27 May 2013 Information exchange on movement of 
goods in two-way trade 
Uzbekistan Protocol of 11 June 2013 Information exchange on goods and 
means of transport 
.. Not available. 
Source: Information provided by the Kyrgyz authorities. 
3.1.1.3  Developments on trade facilitating measures 
3.7.  During the period under review, the Kyrgyz Republic initiated a number of customs reforms 
aimed at facilitating trade, often with the help of international donors.4 A project on the "single 
window" was initiated in 2007; a project on "paperless trade" commenced in 2008, and work on a 
uniform information system was also developed during the period. As a result, customs procedures 
have been streamlined and the number of requ ired documents has been reduced. Although 
efficiencies have improved, these projects are still in the initial phases and are still being 
developed and implemented.  
3.8.  The "single window" project operates as a state enterprise under the Ministry of Economy and 
is financed through the state budget and international donors. In 2009 the Single Window Center for foreign trade was established, and in 2011 the first stage of its introduction-project 
commenced. A Single Window in Foreign Trade Information System (SWIS), developed and 
launched under the project is to facilitate and accelerate obtaining permits for foreign trade operations. Work is ongoing to ensure interaction between the Customs and SWIS information 
systems to facilitate transmission and processing of data required for customs procedures. 
Currently, the project incorporates 4 of 19 minist ries, and includes around 600 required permits 
and 3,000 users. It is currently a voluntary programme for importers and exporters. 
3.9.  The "paperless trade" initiative is near co mpletion and provides for the uniform electronic 
submission of customs documentation. It is fully implemented in some 50% of customs posts; it is not available in a number of customs posts in the south of the country. 
3.10.  The Kyrgyz Republic passed legislation in February 2012 on establishing risk-assessment 
criteria for customs.
5 The risk-assessment process assigns points or scores of three levels (5, 10, 
or 15), for six criteria. The six criteria are: the volume of imports; country of origin; classification in the Harmonized System; amount of customs duty  exemptions; mode of transport; and previous 
violations of customs laws. According to the au thorities, the risk-assessment procedures are not 
yet fully operational, although the legislation and related regulations are in place.
6 Some aspects 
are in place, such as the risk criterion, but significant work remains. Thus, physical inspection of 
merchandise is still the norm in most customs ports.  
3.11.  Work commenced in 2005, under the auspices of the Asian Development Bank to modernize 
customs, improve efficiencies, and promote regional cooperation on customs matters. One of the most important components of this work was the development of a unified automated information 
system for the Customs service. Development of the specific software commenced in 2010, 
followed by development of requirements and te sting/refining of the software during 2011-12. 
Pilot testing of the software began in late 2012, and deployment and training are continuing. While 
the large database is capable of creating the conditions for electronic customs processing, work 
and refinements are ongoing. 
3.12.  In order to streamline the customs control of goods conveyed by individuals at the border, 
the Kyrgyz Republic introduced the "double corrido r" system in 2013, which allows individuals to 
choose the green or red corridor for customs clearance.
7 
                                               
4 There were at least 11 such projects outlined as part of Kyrgyzstan's Aid- for-Trade Needs Assessment 
exercise. UNDP (2010). 
5 Law of the Kyrgyz Republic, 18 February 2012, No. 108. 
6 Regulation of 18 February 2012, No. 108. 
7 Kyrgyz Government Resolution, 12 February 2013, No. 69. WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.1.1.4  Simplified import procedures 
3.13.  Since 2004, the Kyrgyz Republic has special legislation (simplified customs procedures) for 
the movement of goods and vehicles across the border by physical persons for personal use, not for business production.
8 Clearance of the goods is carried out in a simplified, privileged manner to 
further streamline the procedure of moving good s and vehicles across the border. The volume and 
type of trade entering through these procedures ha s varied significantly over the years, mostly as 
a result of changes in the list of eligible goods. As of 2013, the main products still eligible for this 
procedure were textiles and clothing (Table 3.3). Nevertheless, imports under the simplified 
procedures are significant, amounting to 10% of total imports over the period. 
Table 3.3 Overview of imports under simplified procedures, 2007-12 
(US$ thousand) 
 2007  2008  2009  2010 2011 2012  
Plastics, chemicals, minerals 11,364 11,706 10,021 13,425 2,425 n.a. 
Hides, skins, leather 2,020 3,475 3,087 2,629 4,118 6,492 
Wood & paper 3,355 3,973 6,525 5,502 575 n.a. 
Textiles & clothing 143,267 195,216 131,960 124,743 139,035 202,198 
Footwear, headwear 47,067 55,242 48,610 27,640 33,201 61,508 
Ceramics, minerals, metals 6,817 5,876 3,775 8,771 1,737 n.a. 
Machinery & electronics 4,312 2,406 2,422 4,095 1,934 n.a. 
Motor vehicles and parts 104,343 465,009 124,751 121,908 259,120 361,360 
Other 601 2,020 509 n.a.  n.a. n.a. 
 Total imports under simplified 
 procedures 322,998 
 743,056 
 331,150 
 308,712 
 442,146 
 631,559 
 
 Share of total imports (%) 13.4 18.2 10.9 9.6 10.4 11.8 
n.a. Not applicable (no imports during the period). 
Source: Information provided by Kyrgyz authorities. 
3.14.  A key provision of this legislation for the movement of commercial goods by physical 
persons is that the products are not subject to normal tariffs, nor is there a need to classify the goods by tariff number, rather a uniform customs charge is assessed based on the weight of the 
good. A fee of US$0.35 for transport by rail or au to, or US$1.00 for air transport, is charged per 
kg. Reportedly, a significant amount of this trade is imported into the Kyrgyz Republic from China sold in its two main bazaars, and often further sold or distributed to neighboring CIS countries.
9 
The threshold for use of this procedure is som 4 million. 
3.1.1.5  Free economic zones 3.15.  Free or special economic zones are part of the customs framework legislation. The law dates 
from 1992 and has been amended nine times, most recently in 2011.
10 The economic zones offer 
special custom privileges to companies manufacturing products in the zone for both import and export. Currently five free economic zones are provided for in the legislation and regulations, in border regions Naryn, Karakol, Bishkek, Lalick, and Majmak. However, for various reasons, there 
has been a general decline in the use of free economic zones, and currently only Bishkek has any 
substantial activities. During the period under review, three zones had trade activities, with Bishkek the major player. Despite the decline of the other zones, trade to and from the zones, 
amounted to 14% of total exports in 2012 (Table 3.4).  
3.16.  The free economic zones are special legal regimes, providing benefits for foreign trade and 
economic activity. They allow for the free flow of foreign currency and tax advantages. Entities 
operating in the zones may import, store, produce, or sell goods in the territory of the free 
economic zone without paying taxes or customs duties, and they are exempt from non-tariff measures. Furthermore, the entities may sell goods from the economic zone to the domestic Kyrgyz market if the product has undergone signif icant processing in the zone (section 3.1.3.3). 
Certain products may not be eligible for importation to the domestic market. 
                                               
8 Chapter 28 of the Customs Code and Kyrgyz Government Decree, 31 December 2004, No. 976 and its 
six amendments. 
9 USAID (2010a). 
10 Kyrgyz Law, 16 December 1992, No. 1076-XII. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Table 3.4 Free economic zone trade, 2007, 2010, and 2012 
(US$ thousand) 
 2007 2010 2012 
Free Economic Zone Imports  Exports  Imports  Exports  Imports Exports  
Bishkek 121.7 141.5  79.7 98.8 191.1 234.6 
Karakol 3.7 1.2  0 2.3  0 0 
Naryn 1.4 0.9 0.3 0.7 1.0 1.3 
Total free trade zone trade 126.8 143.6  80.0 101.8  192.1 235.9 
Share of total trade (in %) 5.3 12.7 2.5 5.8 3.6 14.0 
Source: Information provided by the Kyrgyz authorities. 
3.17.  Work is under way to draft new laws and re gulations for the zones, as the current legislation 
is in need of reform. The authorities have cited financial and infrastructure problems as causing the decline of the zones in remote regions, and the new initiative would address these deficiencies. 
3.1.1.6  Customs brokers 
3.18.  The Kyrgyz Republic allows merchandise clearance through customs brokers. Legislation for 
the regulation of customs brokers is contained in  Chapter 42 of the Customs Code and a separate 
Decree.
11 A customs broker must be an individual pe rson resident in the Kyrgyz Republic and 
acquire a licence from the State Customs Service. The licensing qualifications further require Kyrgyz citizenship, secondary special or higher education, and passaging an exam. A roster of 
registered customs brokers is published at le ast every three months. The legislation also 
prescribes the activities, rights, and responsibilities of customs brokers; support activities; procedures for accounting and reporting of tran sactions; and the relationship between customs 
brokers and the represented entity. 
3.1.1.7  Pre-shipment inspection 
3.19.  The Kyrgyz Republic notified the WTO in 2001 that it did not have any laws or regulations 
related to pre-shipment inspection.
12 There have been no changes since that time, and the Kyrgyz 
Republic does not use pre-shipment inspection companies for customs matters.  
3.1.1.8  Other customs matters 3.20.  Pursuant to a memorandum of understanding with the United States, the Kyrgyz Republic 
approved regulations on radiation control at certain customs borders.
13 This was instituted in order 
to prevent the illicit trafficking of nuclear an d radioactive materials. The customs service has 
implemented radiation control at six border crossings. 
3.21.  The Customs Service Development Strategy, 2011 to 2013, and a related Strategy 
Implementation Action Plan provide for the optimization of customs procedures and infrastructure, 
improvement in the structure of the customs serv ice, prompt customs legislation, and for the 
provision of high quality human resources. For 2012, the ten major areas of focus included 
procedures, infrastructure, rates, human resource policy, overall structure, information system 
maintenance and support, interagency interaction, interaction with the public and businesses, international customs cooperation, and socio-cultural activities. 
3.1.2  Customs valuation 
3.1.2.1  Overview of basic rules 3.22.  The rules for determining the value of goods for customs purposes are contained in the 
Customs Code and in a Regulation of the Kyrgyz Go vernment giving instructions on the method of 
determining the customs value of imported goods.
14 While in some cases the Decree may contain 
the exact same language of the Code, it goes in to more practical details of how to apply the 
                                               
11 Decree of the Kyrgyz Republic, 28 December 2004, No. 961. 
12 G/PSI/N/1/Rev.1. 
13 Kyrgyz Government Resolution, 26 October 2011, No. 674. 
14 Kyrgyz Government Decree of 28 December 2004, No. 961. WT/TPR/S/288 • Kyrgyz Republic 
 
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  provisions to determine the value of goods (Table 3.5). The Code and the Regulation have been 
amended twice.15  
Table 3.5 Overview of cust oms valuation legislation 
 Customs Code  Decree 
Ch. 32 Calculation of customs duties  and taxes I. Basic provisions 
Art. 222 Objective of taxation, customs duties, taxes 
and the tax base 1. Basic provisions for determining the 
customs value 
Art. 223 Main provisions relating to the definition of 
customs value 2. The statements to determine the customs 
value 
Art. 224 Order of statements and determination of 
customs valuation 3. Rights and obligations of the declarant 
Art. 225 Rights and obligations of the declarant 4. Rights and obligations of the customs 
authorities 
Art. 226 Rights and obligations of the customs 
authorities II. Methods of determining the customs value 
of the imported goods, the order in which 
they are applied 
Art. 227 Methods for determining the customs value 
of goods 5. Application of the methods for determining 
the customs value 
Art. 228 Transaction value method 6. Method of transaction value (method 1) 
Art. 229 Transaction value of identical goods method  7. Additional charges to the price actually 
paid or payable 
Art. 230 Transaction value of similar goods method 8. Permitted deductio ns from the price 
actually paid or payable 
Art. 231 Deductive value method 9. Requirements for the application of the 
method of transaction value (applying method 1) 
Art. 232 Computed value method 10. Method of transaction value of identical 
goods (method 2) 
Art. 233 Backup method 11. Method of transaction value of similar 
goods (method 3) 
Art. 234 Calculation of custom s duties and taxes 12. The deductive value method (method 4) 
Art. 235 Application of rates of customs duties 13. The computed value method (method 5) 
Art. 236 Foreign currency translation for the 
purposes of calculatin g customs duties and 
taxes 14. Reserve customs valuation method 
(method 6) 
Art. 237 Calculation of customs duties and taxes in 
the illicit movement of goods across the border or use of goods in violation of established re strictions III. Special provisions 
15. The assessment of media software for 
data-processing equipment 
16. Treatment of interest charges 
Source: Customs Code and Kyrgyz Government Decree of 28 December 2004, No. 961. 
3.23.  The main elements of the Code and Decree on customs valuation provide for the 
hierarchical six methods of determining value as per the Agreement on Implementation of Article VII of GATT 1994. The Kyrgyz Republic values products on a c.i.f. basis. The special provisions as 
outlined in the Decree provide for the valuation of carrier media and the treatment of interest 
charges, pursuant to the decision on these subjects in the Customs Valuation Committee.
16 
According to the authorities, the main method of valuation used is the transaction value.  
3.24.  The Kyrgyz Republic notified its customs valuation legislation to the WTO in 2000; it has not 
notified any changes.17  
3.1.2.2  Price sensitive products 3.25.  The Customs authorities undertake additional controls on the customs valuation of certain 
sensitive products.
18 As of September 2012, the list comprises 550 lines, at the 2-, 4-, 6-, and 10-
digit HS levels, a significant number of tariff li nes. If the declared customs value is below the 
published pricing information, additional information required from the importer by the customs 
                                               
15 Code amended on 30 December 2011 (No. 257), and 5 August 2008 (No. 196); Regulation amended 
on 4 April 2007 (No. 94), and 5 August 2009 (No. 491). 
16 WTO Document G/VAL/N/3/KGZ/1. 
17 WTO Document G/VAL/N/1/KGZ/1. 
18 Kyrgyz Government Decree, 11 March 2005, No. 123 amended by Decree No. 63 of 
22 February 2011. WT/TPR/S/288 • Kyrgyz Republic 
 
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  authorities may include invoices, contracts, accounting documentation, licensing or copyright 
agreements, purchase orders, receipts, and price lists. If there is continued disagreement after 
examination of the additional documentation, th e importer may appeal a Customs decision under 
the provisions of Section XIV of the Customs Code. 
3.1.3  Rules of origin 
3.1.3.1  Non-preferential 3.26.  Section II, Chapter 4, Articles 27-37 of the Customs Code contain the provisions for 
determining the origin of goods. The Kyrgyz Republic applies international practice and norms in 
its rules. The country of origin may be determined to be a single country, a customs union, a group of countries, or a region or part of a country. The two basic methods of determining origin are: goods that are wholly obtained, and goods su bject to sufficient processing, i.e. substantial 
transformation. Article 29 provides the definition  of what is wholly obtained (Table 3.6). 
Table 3.6 Rules of origin, the wholly obtained criteria 
Section Overview 
1. Minerals extracted from the country, in its territorial sea or the seabed 
2. Products of vegetable origin, grown, or harvested in the country 
3. Live animals born and raised in the country 
4. Products obtained in the country from grown animals 
5. Products obtained by hunting or fishing in the country 
6. Products of sea fishing and other products of sea fishery  
7. Products obtained aboard a factory ship, exclusively from the products specified in 6) above 
8. Products obtained from the seabed or marine subs oil outside the territorial sea provided that the 
country has exclusive rights to the seabed or the subsoil  
9. Waste and scrap (recycled ma terials), resulting from the prod uction or other processing 
operations, as well as second-han d articles, collected in the country and only for the processing 
of raw materials 
10. High-tech products obtained in an open space on spaceships belonging to the country, or leased  
11. Goods manufactured in the country exclusively from the products specified in 1-10) above 
Source: Law of the Kyrgyz Republic, 12 July 2004, No. 87. Online information viewed at: 
http://www.customs.kg/inde x.php/ru/custzak/posgov. 
3.27.  If a product is not wholly obtained, it defa ults to the second method, and different criteria 
may be applied to determine if there was sufficient processing of the goods to confer origin. Three 
alternative criteria may be used, according to Articl e 30: (i) change of tariff classification, at the 4-
digit HS level; (ii) performance of certain production or technological operations; and ad valorem  
percentage criteria, where change in cost or va lue added is a fixed share of the finished good. 
3.28.  The provisions of Chapter 4 of the Code do not describe any specific production or 
technological operations that will confer origin; rather they provide a negative list of seven 
operations that do not confer origin, such as simple assembly, preservation, mixing. The ad valorem  percentage level needed to confer origin is not specified in the Code.  
3.29.  A certificate of origin issued by the co mpetent authority in the exporting country, or a 
declaration of origin must be submitted upon importation. A certificate or declaration is not required for goods in transit or goods subject to temporary importation; goods previously released in free circulation; goods of a value below som 2,500, and goods imported under the "simplified 
procedures" by natural persons. 
3.1.3.2  Preferential 3.30.  The provisions for preferential rules are co ntained in the same section of the Customs Code. 
There are no separate rules per se, but deviations from the non-preferential rules apply in some 
cases. For determining origin pursuant to the significant processing criteria, the change of tariff classification at the 4-digit tariff level criteria would be applied for determining origin of 
preferential trade. WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.31.  Goods submitted for preferential tariff co nditions are subject to the rules of "immediate 
purchase and direct delivery". A certificate of origin is required from countries receiving tariff preferences, in the format prescribed in the relevant treaty. 
3.1.3.3  Special rules of origin in free economic zones 
3.32.  Special rules of origin apply to goods produced in the free economic zones. To meet the 
substantial transformation rule based on value, the value added should not be less than 30% of the ex-factory price, or 15% for home appliances and electronics.
19 To meet the wholly obtained 
criteria, products must be made exclusively from Kyrgyz inputs such as minerals mined, plant 
products grown and harvested, live animals born and raised, products obtained from animals, 
products of hunting or fishing, and recycling and wastes also qualify.  
3.1.3.4  Notifications 
3.33.  The Kyrgyz Republic has not notified legislat ion on preferential or non-preferential rules of 
origin to the WTO Committee on Rules of Origin. 
3.1.4  Tariffs  
3.34.  The Customs Tariff of the Kyrgyz Republic is the main legal instrument providing tariff rates 
and associated rules.20 It contains five sections on general provisions, the customs tariff, seasonal 
and special duties, trade regimes and preference s, and final provisions; and three annexes, 
including the commodity nomenclature, which provides information on the applied rates of duty. 
3.1.4.1  Nomenclature 3.35.  The Kyrgyz Republic became a contracting party of the WCO Harmonized System 
Convention
21 (HS) in April 2007, and it entered into force for the Kyrgyz Republic on 
1 January 2009.22 While the legal requirement to apply the HS commenced only in 2009, the 
Kyrgyz Republic had been applying the HS for so me time through its adherence to the Eurasian 
Economic Community’s common nomenclature.  
3.36.  The Eurasian Economic Community nomenclature is at the HS 10-digit level and comprises 
approximately 11,000 tariff lines. The Kyrgyz Republic has a few national tariff lines that deviate from that of the Community, but there are no ma jor differences. The Kyrgyz Republic has not yet 
implemented the HS2012 changes to the nomenclature; the last updates include only the HS2007 
nomenclature changes. This is due to the adherence of the Kyrgyz Republic to the 4
th version of 
the Eurasian Economic Community nomenclature, and not the most recent 5th version, which most 
Eurasian Economic Community members have ad opted. The Kyrgyz Republic has plans to 
implement HS2012 changes although it is not clear wh en one option is to proceed directly to the 
6th version of the Eurasian Economic Community nomenclature in the near future. 
3.1.4.2  MFN applied tariffs 
3.37.  The Kyrgyz Republic has ad valorem , specific, and mixed MFN tariffs. These are applied to 
all WTO Members and to other countries where an MFN provision has been agreed. While individual tariff rates are provided by the tariff nomenclature, a maximum rate of duty of 35% may be 
applied when the country of origin does not have MFN or preferential status, when the country of 
origin cannot be established, and when the direct purchase and direct delivery rules are not followed for preferential trade. 
3.38.  The Kyrgyz Republic's applied tariffs rema ined virtually unchanged during the period under 
review (Tables 3.7 and A3.1). Tariffs remain low, averaging 5%, and nearly half of all tariffs are 
duty-free (Chart 3.1). Tariffs on agricultural pr oducts are on average, about twice the level of 
those of industrial products. Tobacco, alcohol products, fish, and clothing have the highest tariffs, 
                                               
19 Kyrgyz Resolution, 3 November 1998, No. 715. 
20 Law of the Kyrgyz Republic, 29 March 2006, No. 81. 
21 International Convention on the Harmonized  Commodity Description and Coding System. 
22 World Customs Organization (2011). WT/TPR/S/288 • Kyrgyz Republic 
 
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  averaging over 10%. The lowest tariffs, with zero  rates of duty, are for the wood, paper, cotton, 
and arms and ammunition. There are very few peaks and almost no tariff escalation between first stage of processing and fully processed products. A significant number of applied rates are below the bound rates, giving the Kyrgyz Republic tariff policy space (Chart 3.2). This is mainly in the 
arms & ammunition, misc. manufacturing, hides & skins, and plastics & rubber sectors. 
Chart 3.1 Distribution of  MFN tariff rates, 2012 
(1.3)(2.1)(2.7)(35.2)(12.2)(46.4)
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,50020%15%12%10%5%Duty free
Number of tariff linesNote: Figures in parentheses denote the percentage shar e of total lines. Calculations exclude specific rates 
 (representing 0.1% of total tariff lines), and include the ad valorem part of mixed rates. 
Source: WTO Secretariat calculations, based on data pr ovided by the authorities of the Kyrgyz Republic. 
Table 3.7 Tariff structure, 2006, 2009, and 2012 
(%, unless otherwise indicated) 
 MFN applied  
Final bounda   2006  2009  2012  
Bound tariff lines (% of all tariff lines) 99.9 99.9 99.9 99.9 
Simple average rate 4.9 5.1 5.0 7.8 
 WTO agricultural products 8.4 8.7 8.4 12.1 
 WTO non-agricultural products 4.1 4.1 4.1 6.6 
Duty free tariff lines (% of all tariff lines) 46.1 45.5 46.4 18.9 
Simple average rate of dutiable lines only 9.2 9.4 9.4 9.6 
Tariff rate quotas (% of all tariff lines) 0.0 0.0 0.0 0.0 
Non-ad valorem tariffs (% of all tariff lines) 1.3 1.4 1.4 1.8 
Domestic tariff "peaks" (% of all tariff lines)b 2.7 1.3 1.3 0.0 
International tariff "peaks" (% of all tariff lines)c 0.0 1.3 1.3 4.0 
Nuisance tariffs (% of all tariff lines)d 0.0 0.0 0.0 0.0 
Total number of tariff lines 11,128 10,954 10,990 10,985e 
 Ad valorem  rates 5,843 5,817 5,729 8,707 
 Duty free 5,135 4,983 5,102 2,076 
 Specific rates 11 11 14 19 
 Mixed rates 139 143 145 181 WT/TPR/S/288 • Kyrgyz Republic 
 
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   MFN applied  
Final bounda   2006  2009  2012  
Bound tariff lines (% of all tariff lines) 99.9 99.9 99.9 99.9 
Simple average rate 4.9 5.1 5.0 7.8 
 WTO agricultural products 8.4 8.7 8.4 12.1 
a Final bound rates are based on the 2012 tariff schedule in HS07 nomenclature. 
b Domestic tariff peaks are defined as those exc eeding three times the overall average applied rate. 
c International tariff peaks are defined as those exceeding 15%. d Nuisance rates are those greater than zero, but less than or equal to 2%. 
e Total number of bound lines (i ncluding partially bound rates). 
Note: 2006 tariff is based on HS02 nomenclature, 2009 and 2012 tariffs are based on HS07. Calculations 
for averages are based on national tariff line level (10-digit), excluding specif ic rates (14 tariff lines 
falling under alcoholic beve rages) and including the ad valorem  part of mixed rates. 
Source: WTO Secretariat calculations, based on data pr ovided by the authorities of the Kyrgyz Republic. 
Chart 3.2 Average applied MFN and bound  tariff rates, by HS section, 2012 
% 
0.02.55.07.510.012.515.0
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 2101   Live animals & products  
02   Vegetable products03   Fats & oils      
04   Prepared food, etc.
05   Mineral products06   Chemicals & products07   Plastic & rubber
08   Hides & skins09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.15   Base metals & products
16   Machinery
17   Transport equipment18   Precision instruments19   Arms & ammunition
20   Miscellaneous manufacturing21   Works of art, etc.MFN applied
average
(5.0%) Bound average
(7.8%)Bound MFN 
 
Note: Calculations exclude specific rates and include the ad valorem  part of mixed rates. 
Source: WTO Secretariat calculations, based on data pr ovided by the authorities of the Kyrgyz Republic.  
3.1.4.3  WTO bindings 
3.39.  The Kyrgyz Republic was one of the earliest countries to accede to the WTO under the 
procedures of Article XII, and was the first CIS country to do so. Its bound rates, at the time of 
accession, and currently, are some of the lowest among recently acceded countries and WTO 
membership overall. Over 20% of tariff lines were bound at zero, in part due to the Kyrgyz Republic’s participation in most of the Uruguay Round zero-for-zero sectorial initiatives, and the Information Technology Agreement. The Kyrgyz Republic does not have any special safeguard or 
TRQ provisions, and has bound all other duties an d charges at zero. The Kyrgyz Republic made 
certain commitments with respect to the Agreement on Trade in Civil Aircraft in its Protocol of Accession; to date it is not a signatory to this agreement. 
3.1.4.4  Applied rates exceeding bound rates 
3.40.  A comparison of bound and applied rates carried out using the 2012 applied rates, found 
that approximately 90 tariff lines were in excess of the WTO bindings. These mainly concerned WT/TPR/S/288 • Kyrgyz Republic 
 
- 39 - 
 
  fruits, juices, certain machinery, and auto part s. The Kyrgyz authorities were aware of these 
discrepancies and were making efforts to correct the situation, but it would take some time to pass the necessary legislation. A second set of discrepancies was found for certain specific or compound rates of duty when the ad valorem  equivalents were calculated from data received from the Kyrgyz 
authorities and compared to the bindings. Approximat ely half of these tariff lines, all in the alcohol 
sector, were found to exceed the bound rates, some by significant margins.  
3.41.  An important anomaly in terminology affect s a number of tariff lines on alcohol. The Kyrgyz 
Republic's WTO Schedule uses the terminology "10% or US$0.55 per litre, whichever is lower" 
while the applied rate uses the terminology "10% but not less than US$0.55 per litre". Due to this difference, the applied rate may be higher than the bound rate as the terminology introduces a "floor" rate. According to the authorities, this co mbined duty was introduced to prevent the under-
valuing of goods. 
3.1.4.5  Preferential and duty-free regimes 3.42.  Preferences, i.e. zero duties, are granted for all products originating in 46 least developed 
countries. However, imports from LDCs account for a very small percentage of imports. The 
Kyrgyz Republic has a free-trade agreement or si milar relationship with Azerbaijan, Armenia, 
Belarus, Kazakhstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan, and Ukraine;
23 
imports from these countries are also duty free. In  both cases, the products must be produced in 
those countries and imported directly. 
3.1.4.6  Seasonal duties 3.43.  Article 9 of the customs tariff for seasonal rates of duty to be applied, either on imports or 
exports. The seasonal rate of duty, which is se t by the parliament, may replace the normal duty 
rate for a maximum of six months. Seasonal duties were in place on wheat flour from 16 May to 31 July 2012 (HS 1101.00.110.0-150.0-som 2.5/kg).
24 
3.1.5  Other charges affecting imports  
3.1.5.1  Charges and fees upon importation 3.44.  The Kyrgyz Republic has four additional ch arges on imports. The customs clearance fee, is 
levied at 0.15% of the customs value or 0.30% where clearance procedures take place outside 
normal working hours or locations. The percentage calculated must also fall into the parameters of minimum and maximum levels. A fee of not less than two times the conditional unit of som 100 and a maximum of som 250,000 for entries outside no rmal hours or locations, also determine the 
charge.
25 
3.45.  Fees of som 100 per hour are charged for the customs escort of goods. This fee often 
applies when customs clearance takes place at an inland customs post. 26 
3.46.  Other fees charged on importation include a fee of som 2,500 per foreign transport vehicle 
entering the Kyrgyz Republic. There are fees also  i n  t h e  c a s e  o f  a n  i m p o r t e r  r e q u e s t i n g  a n  
advanced customs ruling, a fee of som 500 is applicable.  
3.47.  Different import charges are applied to the importation of certain raw materials containing 
precious metals, i.e. metal scrap, gold alloy, etc. pursuant to the law on measures of State Support for the Development of a Precious Metals Plant.
27 This provision provides for the charge of 
som 100 times 100 conditional units (som 10,000), instead of the normal customs clearance fee. 
                                               
23 The Kyrgyz Republic no longer has free trade with Georgia after its departure from the CIS. 
24 Online information viewed at: http://minec onom.kg/index.php?option=com_content&view 
=article&id=95&Itemid=515&lang=en. 
25 Chapter 33 of the Customs Code, Articles 238-240;  and Resolution of the Kyrgyz Government, 
10 April 2008, No. 140. 
26 Chapter 33 of the Customs Code, Articles 238-240;  and Resolution of the Kyrgyz Government, 
10 April 2008, No. 140. 
27 Kyrgyz Government Decree, 23 June 2011, No. 338. WT/TPR/S/288 • Kyrgyz Republic 
 
- 40 - 
 
  This provision was enacted to boost production and attract additional volumes of raw materials for 
reprocessing at the joint-stock company Kyrgyzaltyn.  
3.1.5.2  Value-added tax (VAT) 3.48.  A value-added tax is applied to the sale of goods, works, and services supplied in the 
Kyrgyz Republic. There are two VAT rates under the Tax Code: 
 12% for all taxable supplies and taxable imports, and 
 0% for most exported items, including 
 Exported goods except for refined gold and silver, including alloy;  
 International transportation of passengers, baggage, and cargo, except for transport 
by rail;  
 Services for the transit flight of aircraft, including services for the international 
transport of passengers, baggage, and ca rgo, except for rail transport; and  
 Services for electricity supply pumping stations for irrigation of agricultural land and 
drinking water. 
3.49.  The 12% VAT rate was reduced from 20% by a change in the Tax Code in late 2008.
28 
Imported, domestically supplied, and some exported  supplies (i.e. goods, works, and services) are 
subject to VAT. However, there are a number of exemptions (Table 3.8). 
Table 3.8 VAT exemption list, 2013 
Tax code 
reference Good, work, or service 
238 Supply of residential land , buildings, and facilities 
239 Supply of agricultural produce and produc ts of the food processing industry 
240 Delivery of public services and delivery to correctional institutions 
241 Supply of fixed assets under fi nancial leasing arrangements 
242 Goods and services in the medical field 
243 Financial services 
244 Insurance services 
245 Pension funding services 
246 Transport services 
247 Roaming services, interconnection, and international communication services 
248 The supply of textbooks, school supplies, and scientific publications in the state language 
249 Processing of goods placed under customs regimes 
250 Privatization 
251 Delivery to charitable organizations 
252 Supplies by non-profit organizations 
253 Delivery free of charge 
254 Delivery by state or municipal organizations of ritual goods and funeral services 
255 Supply of mineral fertilizers and chemical plant protection products, vacc ines and medicines for 
animals 
255-1 Delivery of agricultural machinery 
256 Importation and exportation of refine d gold and silver, including alloy 
Source: Tax Code. 
3.50.  In addition to the general exemptions, cert ain exemptions apply only to imports (Table 3.9). 
VAT is assessed on the taxable value for most products, i.e. the total amount paid or payable for 
all supplies, not including sales tax, or VAT; and for imported products it is the customs value, 
                                               
28 Decree of 17 October 2008, No. 231. The 20% rate may still be applied to materials in inventory prior 
to this date. WT/TPR/S/288 • Kyrgyz Republic 
 
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  including duties and taxes, but excluding VAT. VAT may be credited on inputs when used in the 
manufacture of end-products if subject to VAT.  
Table 3.9 VAT exemptions on import ed goods, works, and services 
Tax Code 
reference Good, work or service 
257 Securities, passport s, and identity cards of Kyrgyz citizens 
257 Specialized items for the disabled 
257 Textbooks and school supplies, scientific publications 
257 Goods provided VAT exemptions under customs legislation 
257 Scientific equipment used for geological expedi tions to measure and control to seismic situation 
257 Excise duty stamps and currency, except  that used for nu mismatic purposes 
257 Materials used to assist after the consequences of natural disasters, armed conflicts 
257 Humanitarian assistance, grants, in accordance with the procedures of the Government of the 
Kyrgyz Republic 
257 For official use of diplomatic missions and co nsular offices of foreign States and international 
organizations, as well as for private use by diplomatic agen ts, including members of their 
families, in accordance with international treaties 
257 Baby food 
257 Natural gas 
257 Medicinal products 
257 Specialized items for the construc tion and renovation of furnaces 
258 Pedigree livestock and seed materials, mineral fertilizers, and chemical plant protection 
products, as well as vacc ines and drugs for animals 
259 Fixed assets 
Source: Tax Code. 
3.1.5.3  Excise taxes 
3.51.  An excise tax is applied to certain al cohol, tobacco, crude petroleum, and petroleum 
products (Table 3.10).29 The tax basis is a unit of volume or value/price of the good. The value 
could be based on the sales price, market price, or customs value. When the price is used, the cost of VAT, excise, and sales tax is excluded. The excise  duty is applied to both imported and domestic 
goods. Different payment due dates may apply depending on whether the good is imported, 
produced, or subject to the excise duty stamp. 
Table 3.10 Goods subject to excise tax 
Product HS Rate 
Alcohol products  
 Undenatured ethyl alcohol with an 
 alcoholic strength by volume of 80% or 
 more; ethyl alcohol and other spirits, 
 denatured, of any strength 2207 som 350 per litre 
 Vodka 220860 som 200 per litre 
 Liquor-vodka products 220830; 220870;220890 som 200 per litre 
 Fortified drinks, fortified juices and 
 tonics 220840; 220850  som 200 per litre 
 Wine 2204, 220410 to 220430, 
2205, 2206  som 100 per litre 
 Brandy (brandy alcohol) 2208201200-2208202900, 
2208206200-2208208900 som 135 per litre 
 Sparkling wines, including champagne 220410 som 110 per litre 
 Beer 2203 som 25 per litre 
 Wine products 220430 som 10 per litre 
 Low alcohol drinks 220890 som 60 per litre 
                                               
29 Excise taxes were applied on certain jewellery until 30 June 2011 ( Kyrgyz Law of 30 June 2011, 
No. 64). WT/TPR/S/288 • Kyrgyz Republic 
 
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  Product HS Rate 
Tobacco products  
 Cigarettes with filter:  
 - from the date of entry into force of the 
 law "on introduction of modifications 
 into some legislative acts of the Kyrgyz 
 Republic" 31 December 2011 inclusive 2402 som 80 per 1,000 pieces + 
7% of the price calculated, but 
not less than som 130 per 
1,000 pieces 
 - 1 January 2012 to 31 December 2012 
 inclusive  2402 som 100 per 1,000 pieces + 
7.5% of the price calculated, but not less than som 150 per 1,000 pieces  
 - from 1 January 2013  2402 som 6 per 1,000 pieces + 
3.6% of the price calculated, 
but not less than som 24 per 
1,000 pieces  
 Cigarettes without filter:   
  - from the date of entry into force of the law 
 "on introduction of modifications into 
 some legislative acts of the Kyrgyz 
 Republic" 31 December 2011 inclusive 2402 som 5 per 1,000 pieces + 3% 
of the price calculated, but not 
less than som 18 per 1,000 
pieces  
 - 1 January 2012 to 31 December 2012 
 inclusive 2402 som 5.5 per 1,000 pieces + 
3.3% of the price calculated, but not less than som 20 per 1,000 pieces  
 - from 1 January 2013 2402 som 6 per 1,000 pieces + 
3.6% of the price calculated, 
but not less than som 24 per 
1,000 pieces  
 Cigars and cigarillos 2402 som 297,00 per 1,000 pieces 
 Other articles containing tobacco 2403 som 5 per kg 
Petroleum products 
 Petrol, light and medium distillates, 
 gasoline 2710111100-2710119000, 
2710191100-2710191500, 
2710192500-2710192900  som 3,000 per ton 
 Jet fuel 2710192100 som 2,000 per ton 
 Diesel fuel 2710193100-2710194900 som 800 per ton 
 Fuel oil 2710195100-2710196900 som 600 per ton 
 Oil and gas condensate 2709001000, 2710197100-
2710199900 som 1,400 per ton 
 Crude oil and petroleum products 2709009000 som 0 per ton 
Source: Tax Code of the Kyrgyz Republic, 17 October 2008, No. 230, including amendments and decrees up 
until 22 December 2011. 
3.52.  While certain products are subject to excise, the tax code provides some general 
exemptions. In particular, exported goods, upon  confirmation that they were exported. Goods 
imported by physical persons under special rules are also exempt from excise duty, as well as 
goods required for vehicles engaged in intern ational transport and confiscated or abandon 
property. 
3.1.5.4  Sales tax 
3.53.  In general, domestic and foreign enterprises, as well as entrepreneurs are subject to sales 
tax on goods, works, and services. Exceptions for certain industries and transactions include agricultural production, banking, charitable organizations, and certain transfers of property. The 
sales tax rate is 1.5%, 2.5%, or 3.5% depending upon whether the transaction is trading, 
commercial, or other activities, and whether VAT is applicable. 
3.1.5.5  Special tax exemptions 
3.54.  Pursuant to a new Government law adopted in December 2012, certain armament, military 
equipment, and special equipment imported by st ate bodies is now exempt from VAT and customs 
duties.
30 Also, a 2013 Government Decree exempts certain medicines from VAT.31 Approximately 
                                               
30 Online information viewed at: www.president.kg%2Fru%2Fnews%2Fzakony%2F1415_podpisan 
_zakon_osvobojdayuschiy_ot_uplatyi_nds_i_tamoje nnyih_poshlin_voorujenie_v oennuyu_tehniku_voennoe 
_imuschestvo _spetsialnuyu _tehniku_i_spetsialnyie_sredstva%2F. WT/TPR/S/288 • Kyrgyz Republic 
 
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  180 medicines and medical products are listed in the Decree, by HS code, the majority are 
contained in HS chapters 29 and 30, i.e. pharmaceuticals. 
3.1.6  Import prohibitions, restrictions, and licensing 3.1.6.1  Import prohibitions 
3.55.  The Kyrgyz Republic prohibits certai n goods from being imported, sometimes under 
international obligations such as the Montreal Protocol. Some items are prohibited only under the simplified import procedures (Table 3.11). 
Table 3.11 Import prohibitions 
Goods Information Reference 
Weapons, ammunition, explosives Prohibited under the simplified 
import regime only  Decree of 31 December 2004,  
No. 976 
Narcotic drugs, psychotropic substances, 
and equipment for smoking opium and 
hashish Prohibited under the simplified 
import regime only  Decree of 31 December 2004,  
No. 976 
Potent poisons Prohibited under the simplified 
import regime only Decree of 31 December 2004,  
No. 976 
Publications, films, photographs, 
videotapes, sound and video recordings, 
manuscripts, gramophone records, 
pictures, pictorial products, and other 
media containing information that may 
cause harm to the political, economic 
interests, State security, public order, 
health, or morals of the Kyrgyz Republic General import prohibition Decree of 31 December 2004, 
No. 976 
Other items which are prohibited by 
international agreements or legislation of the Kyrgyz Republic General import prohibition  Decree of 31 December 2004, 
No. 976 
Ozone-depleting substances (Montreal 
Protocol) General import prohibition Government Resolution of  
19 September 2009, No. 594 
Birds and poultry from avian influenza territories General import prohibition  Decree of 25 April 2006, 
No. 297 
Source: Decrees and Resolution as cited, and in formation provided by the Kyrgyz authorities. 
3.56.  In 2000, the Kyrgyz Republic notified the WTO that it had no quantitative restrictions 
(QRs).32 It has made no subsequent notifications. 
3.1.6.2  Quotas 
3.57.  The Kyrgyz Republic maintains annual import  quotas on alcoholic beverages, including beer, 
for non-WTO-member countries.33 According to the law on the state regulation of production and 
turnover of ethyl alcohol and alcohol products, im portation of ethyl alcoholic, except cognac, is 
allowed only upon termination or suspension of prod uction of ethanol in the Kyrgyz Republic or in 
case of reduced production when domestic supply cannot meet the needs of the alcohol industry.34  
3.58.  The annual level of import quotas of alcoho l is based on the average value of imports over 
the previous three years, on the basis of official statistics. The annual quota volume limit for 
importation is guided by importers' applications, consumer demand on the domestic market, 
purchasing power, and domestic production capacity. When considering applications for import quotas, preference is given to importers with ex clusive or direct agreements with manufacturers, 
superior quality or price relative to quality factors, products that are not produced domestically, 
and applicants that invest in the Kyrgyz economy or social sector and do not have government debts.
35 Quotas are allocated on a competitive basis through a contest commission. In 2012, the 
state agency for control over the production and turnover of ethyl spirits and alcohol products was 
                                                                                                                                               
31 Kyrgyz Government Decree of 24 January 2013, No. 31. 
32 WTO Document G/MA/NTM/QR/1/Add.7. 
33 Law of 5 April 2004, No. 227, and Regulation.  
34 Article 10, Law of 24 September 2009. 
35 Kyrgyz Government Decree of 5 April 2004, No. 227. WT/TPR/S/288 • Kyrgyz Republic 
 
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  dissolved and its functions for licensing for prod uction and import were moved to the State Tax 
Service. Functions of state policy on production were moved to the Ministry of Agriculture and Land Reclamation, and quality and safety aspects to the State Inspectorate for phyto-sanitary and veterinary safety. 
3.59.  Although the main provisions of alcohol import quotas are not applied to WTO Members, all 
importers must pay taxes and charges to the public agency in charge of circulation in order to obtain the registration form for each shipment. In order to obtain the form register, an importer 
must file an application, submit a goods declaration, copy of the invoice, copy of the receipt of 
payment of taxes and duties, copy of certificate of origin, and copy of the certificate of quality. The 
certificates and receipts must be stamped or certified.  
3.1.6.3  Licensing 
3.60.  Licensing is used by the Kyrgyz Republic as a trade policy instrument in order to protect 
national security, comply with international obligations, maintain public law and order, protect the financial position and balance of payments of th e country, and protect life and health of plants, 
animals, humans, and the environment. While many of the laws or resolutions that form the legal 
framework for import licensing are more than 10 years old, there have been many amendments 
and updates in recent years (Table 3.12). For example the Law on Licensing was amended 16 
times during the period under review.  
Table 3.12 Main laws concerning import licensing 
Law Reference Summary 
Law on Licensing 
 
 including 27 changes, 
additions, and amendments Law of 3 March 1997, No. 12 
 Law of 18 January 2001, No. 13 Law of 12 June 2001, No. 48 Law of 18 January 2001, No. 13 Law of 17 February 2003, No. 38 Law of 18 February 2003, No. 41 Law of 10 March 2003, No. 59 Law of 11 June 2003, No. 95 Law of 1 August 2003, No. 165 Law of 24 December 2003, No. 239 Law of 13 August 2004, No. 129 Law of 27 January 2006, No. 21 Law of 28 April 2007, No. 45 
Law of 19 April 2008, No. 62 
Law of 28 April 2008, No. 73 Law of 2 June 2008, No. 105 Law of 12 June 2008, No. 118 Law of 23 June 2008, No. 126 Law of 23 October 2008, No. 232 Law of 20 November 2008, No. 241 Law of 31 July 2009, No. 258 Law of 13 October 2009, No. 270 Law of 5 October 2011, No. 161 Law of 21 December 2011, No. 242 Law of 6 October 2012, No. 169 Law of 10 October 2012, No. 170 Law of 1 October 2012, No. 171 Law of 14 November 2012, No. 182 General framework on all 
types of licensing, in particular import and export licensing 
Resolution on approval of 
registration and licensing 
procedures Resolution, 25 June 2009, No. 1313-IV Approved procedures for the 
registration and issuance of 
licences for import and export 
Resolution on registration and licensing  Resolution, 8 June 1998, No. 1101-1 Procedures and rules for 
issuing licences 
Resolution on licensing 
organizations and experts to 
licence specific goods Resolution, 29 October 1998, No. 709 List of products subject to 
licensing and licensing body  
Source: Ministry of Economy website, and information fro m the Kyrgyz authorities. 
3.61.  According to the legal framework, the granti ng of licences is non-discriminatory, i.e. foreign 
legal entities and natural persons receive licences under the same conditions and in the same WT/TPR/S/288 • Kyrgyz Republic 
 
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  manner as legal entities and persons of Kyrgyz origin. Single licences are issued for an individual 
transaction, and general licences are issued for the period necessary to carry out the import operations, but the maximum validity for a licence is one calendar year. The Kyrgyz Republic maintains a register of licences granted, in book form, showing name, address, registration details 
of the person or entity; activities for which a licen ce has been granted; licence form, date of issue, 
and validity; and other information as necessary. The information in the register is open to all interested persons. 
3.62.  According to procedures and the authorities, all licences are non-automatic. The resolution 
on the procedures states in paragraph 13, that th e decision to issue or not issue a licence rests 
with the licensor. This decision is guided by the opinion of an organization expert, and the licensor has 30 days from the registration of all documents to issue or deny the licence. Grounds for refusal 
to issue a licence include: failure to submit the necessary documents, the introduction of 
quantitative restrictions, establishment of a state monopoly, and failure to pay the licensing fee. The procedures also allow for the suspension or revocation of a licence under certain conditions; in 
the case of suspension, cancellation, or terminat ion of a licence, the licencee has the right to 
appeal; however, procedures for appeal are not elaborated. Denial of a licence does not appear as grounds for appeal.  
3.63.  Relatively few import licences have been issued (Chart 3.3), but the number has increased 
during the period 2007-12. 
Chart 3.3 Import licences, 2007-12 
Number 
1920253061
52
010203040506070
2007 2008 2009 2010 2011 2012 
Source: Data provided by the Kyrgyz authorities. 
3.64.  The list of products subject to licensing changes periodically; currently 17 categories of 
products are subject to import licence (Table 3.13). 
Table 3.13 Products subject to import licensing 
Product HS codes Licensing 
Body Operational 
Ministry Rationale 
Decyphering/cryptographic 
tools, equipment, software, devices 8471, 847330000, 
854390900  Ministry of 
Economy State Committee for 
National Security Security 
Weapons and military 
equipment Not provided in the law  Ministry of 
Economy Ministry of Defence Security 
Defence materials and related 
protection devices Not provided in the law Ministry of 
Economy Ministry of Defence Security 
Military uniforms and clothing Not provided in the law  Ministry of 
Economy Ministry of Defence Security 
Normative documents for 
military Not provided in the law  Ministry of 
Economy Ministry of Defence Security 
Gunpowder, explosives, 
pyrotechnics 3601, 3602, 3603, 3604 Ministry of the 
Interior State Agency for 
Geology and Mineral 
Resources Security WT/TPR/S/288 • Kyrgyz Republic 
 
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  Product HS codes Licensing 
Body Operational 
Ministry Rationale 
Nuclear materials 2612, 2844, 2845, 
8401, 2803  Ministry of 
Economy Ministry of Defence, 
National Academy of Sciences, State Agency on Environmental Protection and 
Forestry Security, 
international obligations  
Equipment and technology, 
having a dual use, which can 
be used for mass destruction Not provided in the law Ministry of 
Economy Ministry of Defence, 
National Academy of 
Sciences, State 
Agency on 
Environmental 
Protection and 
Forestry Security, 
international 
obligations 
 
Raw materials for weapons and military technology Not provided in the law  Ministry of 
Economy Ministry of Defence Security, 
international obligations  
Precious metals, alloy metals, 
clad, ores, concentrates, 
waste and scrap 2616, 2843, 7106-7112 Ministry of 
Economy Ministry of Finance Security 
Narcotics and psychotropic drugs precursors Not provided in the law  State Service 
for Drugs Control Ministry of Health, 
Ministry of the Interior Drug control 
Potent poisons Not provided Ministry of 
Economy Ministry of Health,  
National Academy of 
Sciences, State 
Agency on 
Environmental 
Protection and 
Forestry Security, 
international 
obligations 
 
Hazardous waste Basel Convention list on 
the control of trans-boundary movement of dangerous goods Ministry of 
Economy Ministry of Health,  
State Agency on Environmental Protection and Forestry Protect the 
environment 
Official and civilian arms Not provided in the law  Ministry of the 
Interior Ministry of the 
Interior Security 
Alcohol and spirits 2203, 2204, 220860, 
220890 6901  Ministry of 
Economy Alcohol inspectorate .. 
Ozone depleting substances As listed in the Vienna 
Convention on the 
protection of the ozone 
layer and the Montreal 
Protocol on substances 
that deplete the ozone 
layer Ministry of 
Economy  State Agency on 
Environmental 
Protection and 
Forestry  Protect the 
environment  
Tobacco Not provided Ministry of 
Economy State Tobacco 
enterprise .. 
.. Not available. 
Source: Kyrgyz Government Resolution, 29 October 1998, No. 709 and information provided by the Kyrgyz 
authorities. 
3.65.  The Kyrgyz Republic notified its laws on import licensing to the WTO in 2000 and replied to 
the Questionnaire on Import Licensing Procedures in 2000 and in 2006.36 Since that time, the laws 
and regulations pertaining to import licensing have evolved, and the notifications are outdated in terms of legal provisions and practice. 
3.1.7  Contingency measures 
3.1.7.1  Anti-dumping 
3.66.  The Kyrgyz Republic notified its law on anti-dumping in 1999 and has not notified any 
changes since then.
37 The anti-dumping law notified to the WTO was passed by the Government in 
                                               
36 WTO Documents G/LIC/N/1/KGZ/1, G/LIC/N/3/KGZ/1, and G/LIC/N/3/KGZ/2. 
37 WTO Document G/ADP/N/1/KGZ/1, and Law of the Kyrgyz Republic, 31 October 1998, No. 139. WT/TPR/S/288 • Kyrgyz Republic 
 
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  1998 and related regulations entered into force in 2001. The Kyrgyz anti-dumping legislation 
contains 9 chapters and 59 articles, covering the main elements of the WTO Agreement, i.e. determination of dumping, determination of injury, procedure and completion of investigations, price undertakings, etc. In 2010, changes were introduced to exclude the powers granted to 
certain ministries and departments to issue normative legal acts, including with respect to anti-
dumping procedures.
38 
3.67.  The Kyrgyz regulations on anti-dumping, wh ich entered into force in 2001, include rules for 
initiation of proceedings, information to file, public hearings, assessment, rights and duties, 
preliminary determination and provisional measures, pricing and duty determinations, and final decision. The regulations were amended by a resolution in 2004.
39 
3.68.  The Kyrgyz Republic has not initiated any anti-dumping investigations or been the subject of 
an investigation by any WTO Member.  
3.1.7.2  Countervailing duties 3.69.  Similar to the case with anti-dumping, the Kyrgyz Republic has legislation and related 
regulations on countervailing duties, but these have never been used. The legislation dates from 
1999 and associated regulations from 2001.
40 The legislation has been notified to the WTO, but 
the 2010 amendment, which is the same as the anti-dumping amendment has not.41 The 
regulations for anti-dumping, procedures and protocol also cover countervailing duty 
investigations; they are the same Government Resolutions. 
3.1.7.3  Safeguards 3.70.  Safeguard legislation, as approved by the Kyrgyz Government in 1998
42, was notified and 
reviewed in the Committee on Safeguards during 1999-2000.43 In 2010, an amendment was made 
to the legislation regarding certain competences of the Authorized Body, in particular amending its 
right to publish certain normative acts.44 This legislative change has not been notified to the 
Committee on Safeguards. 
3.71.  In 2001, the Government approved regulations related to safeguard measures.45 These 
regulations provide for the conduct of proceedings prior to the imposition of a safeguard measure, 
in particular, the application process to file, information to provide in the application, notice of 
interested persons, the rights and duties of such  persons, and the provisions for a hearing. The 
regulations were amended in 2004.46 
3.72.  During 2009-10, the Kyrgyz Republic notified the initiation of three safeguard investigations 
on white sugar, wheat flour, and poultry eggs.47 The investigation relating to wheat flour resulted 
in the imposition of safeguard duties of som 3 per kg, from 10 November 2009 to 26 August 2010, 
and of som 1 from 27 August 2010 to 10 November 2010.48 The two other investigations did not 
result in the imposition of safeguard measures, although the Kyrgyz Republic has yet to notify the 
WTO of this outcome.  
                                               
38 Law of 4 March 2010, No. 43. 
39 Government Resolution 20 January 2001, No. 14,  and Government Resolution 17 August 2004, 
No. 622.  
40 Law of the Kyrgyz Republic, 31 October 1998, No. 140; Kyrgyz Republic Government Resolution, 
20 January 2001, No. 14; and Government Resolution 17 August 2004, No. 622.  
41 WTO Document G/SCM/N/1/KGZ/1. Amendment in Law of 4 March 2010, No. 43. 
42 Law of the Kyrgyz Republic, 31 October 1998, No. 141. 
43 WTO Documents G/SG/M/15 and G/SG/N/1/KGZ/1. 
44 Law of the Kyrgyz Republic, 15 February 2010, No. 28. 
45 Decision of the Kyrgyz Republic, 20 January 2001, No. 15. The regulations have not been notified to 
the WTO. 
46 Decree of the Kyrgyz Republic, 17 August 2004, No. 622. 
47 WTO Documents G/SG/N/6/KGZ/1, G/SG/N/6/KGZ/2, G/SG/N/6/KGZ/3. 
48 WTO Documents G/SG/N/8/KGZ/1/Suppl.1, G/SG/N/10/KGZ/1, G/SG/N/8/KGZ/1/Suppl.2, 
G/SG/N/10/KGZ/1/Suppl.1. WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.1.8  Other measures  
3.73.  During the review period, the Kyrgyz Republic did not conduct any countertrade or barter 
arrangements with respect to international trade. This practice ceased prior to 2007.  
3.1.9  State trading and import-relat ed operations of state enterprises 
3.74.  The Kyrgyz Republic has never notified state-trading entities to the WTO Committee on 
State Trading.49 In its Protocol of Accession, there was acknowledgement of several entities that 
would meet the state-trading definition of Article XVII.50 While some have been disbursed or 
changed their operations significantly, there are still a number of entities that appear to have 
state-trading privileges pursuant to the provisions of Article XVII (Table 3.14).  
Table 3.14 State-trading enterprises 
State enterprise Area of activity Additional information 
Kyrgyz Pechat Import and export of postal stamps Subdivision of the Ministry of Transport and 
Communication 
Kyrgyz Gaz Natural gas Monopoly, joint-stock company (the 
Government is the owne r) on transportation 
and distribution of natural gas 
Temir SE Scrap and wast es of ferrous and non-
ferrous metals State regulation of collection, purchase, 
processing, sale of scrap and ferrous and non-
ferrous metals wastes; 
Exclusive right to export scrap of ferrous and 
non-ferrous metals wastes 
Kyrgyzalko Spirit production State regulation pursuant to the Law of the 
Kyrgyz Republic on State Regulation of 
Production and Turnover of Ethyl Spirit and 
Alcohol Products dated October 13, 2009, 
No. 269 
Source: Information provided by the Kyrgyz authorities. 
3.1.10  Standards and other technical requirements 
3.75.  The main law on technical barriers to trade dates from 2004 and includes provisions on 
mandatory standards and recommended guidelines. During the period under review, the Kyrgyz 
Republic gradually reduced the number of products subject to compulsory certification. Since 2006, the number of such products has decreased from 7,000 to 234.
51  
3.76.  The Center for Standardization and Metrolog y under the Ministry of Economy of the Kyrgyz 
Republic (CSM) is the principle government body involved in developing and adopting standards. 
In addition, 23 technical standardization committees, consisting of representatives of business, 
R&D, consumer rights protection organizations, and others, are involved in developing national 
standards. The technical standardization committees develop, revise, or amend about 60 national standards each year. Under the framework of the existing system, national standards are 
harmonized with international standards such  as ISO, IEC, and the Codex Alimentarius. 
3.1.10.1  Standards 3.77.  The CSM performs the functions of a national standardization body and is responsible for 
the development and adoption of standards. The Kyrg yz Republic is in the process of transitioning 
from state standards (GOST) to international st andards. The CSM is a correspondent member of 
the ISO. It is also a member of Inter-governme nt Commission on Standardization, Metrology and 
                                               
49 The Kyrgyz Republic undertook a commitment to no tify any enterprise falling within the scope of 
Article XVII at the time of accession. WTO Document WT/ACC/KGZ/26, paragraph 113 of the "Report of the Working Party on the Access ion of Kyrgyz Republic". 
50 WTO Document WT/ACC/KGZ/26. 
51 Resolution of the Government of the Kyrgyz Republic dated 30 December 2005, No. 639 "On 
mandatory conformity assessment of products" (as amen ded by the Resolution of  the Government of the 
Kyrgyz Republic dated 6 March 2013, No. 122. WT/TPR/S/288 • Kyrgyz Republic 
 
- 49 - 
 
  Certification among CIS countries, which was recognized as a regional organization of ISO, 
responsible for promoting and applying international standards.  
3.78.  As of 1 January 2012, 22,542 standards are used and registered with the National 
Informational Fund of Technical Regulations and Standards. Out of this total, 20,372 are GOST, 
1,280 are national standards of other states (GOST R, STB, etc.), 592 are national standards of 
the Kyrgyz Republic, and 298 are international st andards. In general, 46% of the national 
standards are harmonized with the international and European standards. The major share of 
standards applied in the territory of the Kyrgyz  Republic are Inter-State standards, which are 
developed, updated, and harmonized with internat ional and European standards at the level of the 
Inter-State Council for Standardizatio n and Metrology of CIS countries. 
3.79.  Pursuant to the Code of Good Practice for the preparation, adoption and application of 
standards, notifications on draft standards are published on the CSM website and communicated to 
the Information Center of ISO/IEC. 
3.1.10.2  Technical regulations 
3.80.  The fundamental principles of technical re gulations are contained in the law on technical 
regulations, adopted in May 2004.52 The law divides the requirements of technical regulations into 
mandatory and voluntary. The mandatory requirements are set forth in the technical regulations, 
whereas standards, documents of voluntary application only serve to improve the competitiveness 
of products.  
3.81.  Under the framework of the law, the Kyrg yz Republic is developing national technical 
regulations, establishing mandatory requirements for products, processes (methods) of 
production, storage, transportation, and use as well as mandatory conformity assessment 
procedures, through harmonization with international requirements for product and service safety regulations.  
3.82.  Technical regulations are adopted by laws or resolutions. As of 29 July 2013, 43 national 
technical regulations had been adopted. Many were adopted during the past six years (Table 3.15). 
Table 3.15 Technical regulations adopted during 2006-12 
Technical regulation Reference 
Safe operation and utilization of machinery and equipment  Law of 29 December 2008, No. 280 
Ecological Safety  Law of 8 May 8 2009, No. 151 
Safety of ground transport vehicles  Law of 29 May 2009, No. 178 
Safety of construction materi als, goods and structures  Law of 29 January 2010, No. 18 
Safe construction of buildi ngs of various purposes from 
modern rapidly raised st ructures and materials Resolution of 2 August 2010, No. 143 
Safety of bottled natural mineral, natural drinking and table 
water Resolution of 6 April 2011, No. 139 
Resolution of the Government of the KR on safety of 
pharmaceuticals for medical use  Resolution of 6 April 2011, No. 137 
Safety of confectionaries  Resolution of 18 April 2011, No. 163 
Safety of juices, nectars and juice bearing drinks from fruit 
and vegetables Resolution of 19 April 2011, No. 172 
Safety of drinking water  Law of 30 May 2011, No. 34 
Law of the KR on safety of buildings and structures Law of June 27 2011, No. 57 
Safety of ethyl spirit, vodka and liquor drinks  Resolution of 5 July 2011, No. 357 
Safety of winery products  Resolution of 5 July 2011, No. 56 
Safety of beer  Resolution of 14 July 2011, No. 388 
Fire safety  Law of 1 August 2011 
Safety of sugar Resolution of 1 August 2011, No. 437 
Safety of lifting and transporting equipment and operation 
thereof  Resolution of 23 September 2011, No. 587 
 
Radiation safety Law of 29 November 2011, No. 224; 
General technical regulation on environmental safety Law of 1 March 2012, No. 1 
General technical regulation on  safety of ground transport 
vehicles Law of 18 May 2012, No. 61 
 
                                               
52 Law of 22 May 2004, No. 67. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Technical regulation Reference 
Technical regulation on electromagnetic compatibility  Resolution of 12 January 2012, No. 24 
Technical regulation on sa fety of medical products Resolution of 1 February 2012, No. 74 
Technical regulation on amending the technical regulation on 
sugar safety  Resolution of 3 February 2012, No. 83 
Resolution of the Government of the KR, technical regulation 
on safety of pharmaceuticals produced in drugstores  Resolution of 26 May 2012, No. 320 
Technical regulation on safety of non-alcoholic products  Resolution of 5 July 2012, No. 474 
Technical regulation on sa fety of iodized salt  Resolution of 28 June 2012, No. 456 
Technical regulation on safety  of bread, bakery goods and 
macaroni  Resolution of 17 July 12012, No. 502 
Resolution of the Government of the KR, technical regulation 
on electric safety  Resolution of 2 June 2012, No. 359 
Technical regulation on safety of fortified flour  Resolution of 16 August 2012, No. 569 
Technical regulation on safety of medical products produced 
by pharmaceutical organizations, medical organizations and 
on sanitary regime of ph armaceutical organizations Resolution of 25 September 2012, No. 646 
Technical regulation on safety of children clothing and 
footwear  Resolution of 10 October 2012, No.704 
 
Technical regulation on sa fety of infant food  Resolution of 23 November 2012, No. 792 
Technical regulation on safety of furniture Resolution of 30 November 2012 
Technical regulation on safety of water, gas, electric and 
heating energy meters Resolution of 20 November 2012, No. 779 
Source: Information provided by  the Kyrgyz authorities.  
3.1.10.3  Conformity assessment 
3.83.  Accreditation of certification bodies and test laboratories is performed by the Kyrgyz 
Accreditation Center (KAC) under the Ministry of Economy. Mandatory certification is in the form of certification and acceptance of conformity declarat ion. The declaration and certificate of conformity 
are equal in terms of the legal requirements in the territory of the Kyrgyz Republic. The 
Government establishes the procedures for recognizing results of mandatory conformity 
assessment issued by certification authorities of expo rters, on the basis of multilateral or bilateral 
agreements, or unilaterally.  
3.84.  Recently, work has commenced with ILAC  on a number of issues. ILAC conducted an 
assessment of the KAC for compliance with the ISO/IEC 17011 and IAF/ILAC А2:07/2010, and the 
IAF/ILAC Multilateral Mutual Recognition Arrangement Examination of the KAC's possibility of 
accession to the ILAC MRA as a full-fledged member is on-going. 
3.85.  As of January 2012, the Registry of accr edited conformity assessment bodies included 14 
accredited certification bodies, 79 test laboratories, 1 calibration laboratory, and 4 providers of ILCT (inter-laboratory comparison tests) programmes. 
3.1.10.4  Cooperation at the regional level 
3.86.  During 2010-11, under the Eurasian Econom ic Community framework,  technical regulation 
institutes were established under the Integration Committee for harmonization and introduction of 
a unified policy on technical regulations and application of common sanitary measures. The Kyrgyz 
Republic participates in the activities of the Technical Regulation Commission, including working groups on the development of Community tec hnical regulations. The Kyrgyz Republic was 
principally involved in the development of the Eurasian Economic Community's Technical 
Regulation on the Safety of Bottled Water and Requirements for Natural Honey. Work on technical regulations under the Eurasian Economic Community, and on adoption of these technical regulations is currently suspended. 
3.87.  Work has commenced on examining any requirements on TBT for joining the Customs 
Union. It is expected that there would be harmonization at the level of the Customs Union on TBT issues. Work so far has indicated significant differen ces in certain areas, in particular with respect 
to procedures for certification. WT/TPR/S/288 • Kyrgyz Republic 
 
- 51 - 
 
  3.1.10.5  Sanitary and phytosanitary requirements 
3.1.10.5.1  Overall framework 3.88.  During the period under review, policy on SPS was marked by frequent changes in direction 
and structure and lack of a clear strategy. Accordin g to a number of studies and reports, there is a 
lack of compliance with internationally accepted  regulations and perhaps the WTO Agreements. For 
example, the Government has not had a WTO enquiry point for a long time and has no immediate plans to establish one. 
3.89.  The work of the ministries and state bodies on SPS matters has been disruptive, with 
organizational and management changes. In 2012 , the Government decided to establish a single 
state inspectorate for veterinary, sanitary, and phytosanitary safety but in early 2013 reversed this decision with respect to sanitary inspection.
53 In February 2013, the Ministry of Health took back 
the functions of sanitary safety. The reason for such changes was that the combined inspectorate 
did not have the necessary budget, resources, or skilled personnel to carry out its work. 
3.90.  Furthermore, there is no clear policy with respect to SPS matters. The Ministry of Health, 
Ministry of Agriculture and Land Reclamation, and the joint Inspectorate all have roles in SPS 
matters but sometimes these overlap and someti mes there is a void. Moreover, even when a 
provision or stipulation exists in the legal framework, it may not be followed in practice. No 
government body is currently setting SPS trade policy, although this function appears to be 
responsibility of the Ministry of Agricu lture and Land Reclamation (Chart 3.4). 
Chart 3.4 Main bodies involved in SPS matters 
Department of 
Chemicalization 
and Plant 
ProtectionMinistry of 
EconomyMinistry of 
Agriculture and
Land Reclamation
Department of 
Sanitary and 
Epidemiological 
SurveillanceMinistry of 
HealthGovernment of the
Kyrgyz Republic
Veterinary
DepartmentState Inspectorate on 
Veterinary and 
Phytosanitary Safety
National Institute 
of Standards and 
Methodology
Control over sanitary 
inspection, controls, 
and surveillance
National certification 
system including 
laboratories and 
certification bodies
Control over veterinary, 
phytosanitary controls, 
inspection, and 
surveillance
 SPS policy 
formulation
Control over sanitary 
inspection, controls, 
and surveillance
 
Source: Information provided by the Kyrgyz authorities. 
3.1.10.5.2  Legal framework 
3.91.  For several years, the legal framework and implementing regulations have been in 
transition. One of the main issues is that th e 2004 Law on Technical Regulation formed the 
framework for SPS matters. Discussions on establishing an overall food law, have not come to 
fruition, and SPS measures are currently being implemented through technical regulations. The 
Kyrgyz Republic has gradually reduced the number of products subject to mandatory phytosanitary, veterinary, and epidemiological control during the past six years (Table 3.16).  
                                               
53 Resolutions of 5 September 2012, No. 2265-V, and 5 March 2013, No. 109. WT/TPR/S/288 • Kyrgyz Republic 
 
- 52 - 
 
  Table 3.16 Main laws concerning sa nitary and phytosanitary measures 
Law Reference 
Law on technical regulations 22 May 2004, No. 67 
Law of the Kyrgyz Republic  on public health care 24 July 2009, No. 248 
Law of the Kyrgyz Republic on veterinary 12 April 2005, No. 61 
Law of the Kyrgyz Republic on plant quarantine 27 June 1996, No. 2 
Law of the Kyrgyz Republic on plant chemization and Protection 25 January 1999, No. 12 
Law of the Kyrgyz Republic on drinking water 25 March 1999, No. 33 
Law of the Kyrgyz Republic on protection of health of citizens of the Kyrgyz 
Republic from harmful impact of tobacco 21 August 2006, No. 175 
Resolution of the Government of the Kyrgyz Republic on approval of rules of 
organizing works on issuance of ph ytosanitary document s during import 
and export of quarantine products, issued by the state inspection on plant 
quarantine under the Ministry of agri culture, water economy and processing 
industry of the Kyrgyz Republic 30 May, 2008, No. 251 
Resolution of the Government of the Kyrgyz Republic on state and 
epidemiological control over sanitary and epidemiological wellbeing of the population by bodies and institutions of sanitary-epidemiological service of 
the Kyrgyz 6 June 2003, No. 329 
Resolution of the Government of th e Kyrgyz Republic on measures on 
protection of environment and health  of the population from unfavorable 
impact of specific dangerous chem ical substances and pesticides 27 July 2001, No. 376 
Resolution of the Government of the Ky rgyz Republic on identification of 
safety measures in the area of vete rinary, plant quaran tine, epidemiology, 
sanitary and ecology 30 December 2006, No. 901 
 
Resolution of the Government of th e Kyrgyz Republic on strengthening 
interaction among ministries and agen cies on fight with quarantine and 
especially dangerous infections and parasitic diseases 10 June 2011, No. 297 
Resolution of the Government of th e Kyrgyz Republic on measures on 
protection of territory of the Kyrgyz Republic from carrying-in highly pathogenic avian influenza  25 April 2006, No. 297 
 
Source: Information provided by the Kyrgyz authorities. 
3.92.  SPS measures are developed by the relevant Ministry and generally follow this process:  
  Analysis of the risks; 
  Development of the measures; 
  Draft measure proposed for discussion; 
  Continuation of development of measures  based on comments and proposals received 
  Endorsement by other ministries and government agencies; and 
  Finalization of proposed measures and submission to the Government for adoption at 
government level. 
 
3.1.10.5.3  Labelling 
3.93.  At present there is no overall legal fram ework for labelling requirements, and there are no 
labelling laws for food products. However, for certain other products, labelling requirements are set out in various items of legislation. Requirements for labeling and packaging of pharmaceuticals 
have been set forth in the resolution "On Safety of Pharmaceuticals for Medical Applications", and 
of medical goods, in the resolution "On Safety of Medical Goods".
54 Furthermore a draft law is in 
preparation on labeling, which will be in the form of a technical regulation. The Kyrgyz Republic 
has recognized a need to create a system of food -product safety that would meet world standards 
and reduce confusion for consumers with respect to the composition, origin, manner of manufacture, consumption, and other characteristics of a food product.  
3.1.10.5.4  Cooperation at the regional level  
3.94.  The Kyrgyz Republic has been increasi ngly turning towards the Eurasian Economic 
Community and the Customs Union for SPS matters. It has participated in an inter-governmental council was established under the Eurasian Economic Community to work on standardization, 
including SPS matters. However, since the establishment of the Customs Union, work on SPS 
                                               
54 Resolution of the Kyrgyz Republic, 6 April 2011, No. 137 and Resolution of the Kyrgyz Republic, 
1 February 2012, No. 74. WT/TPR/S/288 • Kyrgyz Republic 
 
- 53 - 
 
  matters has been suspended in this body. It is ex pected that upon joining the Customs Union, the 
Kyrgyz Republic would directly apply the CU's technical regulations on SPS matters. Work is 
ongoing in the relevant ministries to examine changes that would need to be made or incorporated in the national technical regulations. Apparently the process would require many changes to 
existing Kyrgyz laws and significant investment in laboratories and equipment. 
3.2  Measures Directly Affecting Exports 3.2.1  Procedures  
3.95.  Export procedures to clear products through Customs, as well as payment of applicable 
fees, include presentation of a customs declaratio n and the following documentation: contract of 
transaction or sale; bill of lading; certificate of origin (dependent upon the export destination); customs declaration form; licence (if applicable); and permit (if applicable). According to the 
Customs Service, exports receive less scrutiny than  imports, and the paperwork is typically dealt 
with rapidly. Bonded warehouses are in principle used in the case of re-exports. 
3.2.1.1  Certificate of origin 
3.96.  Products exported from the Kyrgyz Republic generally require a certificate of origin, 
depending on the import criteria of the country of destination. The Chamber of Commerce of the Kyrgyz Republic is responsible for certification and issuing certificates of origin pursuant to the 
legislation.
55 Four types of certificates are issued according to the destination or trade regime 
applicable (Table 3.17). 
Table 3.17 Certificates of origin for exported goods 
Type Applicable for Related legal framework, if applicable 
"A" Form Countries granting preferences Commission Regulation (EC) No. 3254/94 of 
19 December 1999 amending Regulation (EEC) No. 2454/93 laying down provisions for the implementation of Council Regulation (EEC) No. 2913/92 establishing the Community Customs Code 
"ST-1" Form CIS countries Agreement of 20 November 2009 on "Rules of 
identification of country of origin of goods in the 
Commonwealth of Independent States" 
"Original" Form Countries with non-pref erential trade Customs Code, Article 33 
"FEZ" Form From free economic zones Resolution of 3 November 1998, No. 715 
Source: Information provided by the Kyrgyz authorities. 
3.2.2  Export taxes, charges, and levies 
3.2.2.1  Export taxes 3.97.  The customs tariff of the Kyrgyz Republic al lows for the imposition of export duties or taxes 
and this trade policy instrument was used many times during the last six years. There are 
generally no permanent export duties
56 applied according to the customs tariff. However, a 
number of temporary export taxes have been put in place by the Government in recent years for 
various reasons. Many are seasonal export duties, and all have specific rates of duty. Certain 
commitments were made with respect to agricultural products and not imposing export taxes, as contained in the Kyrgyz Republic's Protocol of Accession.
57 The majority of the export duties have 
been applied to all export destinations (Table 3.18). 
                                               
55 Law of the Kyrgyz Republic of 13 April 1994, No. 1460-XII. 
56 With the exception of paper an d paperboard, waste and scrap. 
57 WTO Document WT/ACC/KGZ/26, paragraph 128 of the "Report of the Working Party on the 
Accession of Kyrgyz Republic". WT/TPR/S/288 • Kyrgyz Republic 
 
- 54 - 
 
  Table 3.18 Export duties 
Product HS Rate Reference Applicable 
dates Rationale 
Mineral 
fertilizers 3101-3105 som 14/kg Resolution, 9 Feb. 2012, 
No. 84 15 Feb. 2012-
15 Aug. 2012 Seasonal 
export duty to aid farmers 
Oats 1004 som 20/kg Resolution, 1 Oct. 2010, 
No. 227 and G/AG/N/KGZ/3 5 Nov. 2010-
5 May 2011 Critical 
shortage of 
agricultural 
products  
Maize 1005 som 5/kg Resolution, 1 Oct. 2010, 
No. 227 and G/AG/N/KGZ/3 5 Nov. 2010-
5 May 2011 Critical 
shortage of agricultural products 
Cereal straw 
and husks 1213 som 10/kg Resolution, 1 Oct. 2010, 
No. 227 and G/AG/N/KGZ/3 5 Nov. 2010-
5 May 2011 Critical 
shortage of 
agricultural 
products 
Swedes, mangolds, fodder root 
corns 1214 som 10/kg Resolution, 1 Oct. 2010, 
No. 227 and G/AG/N/KGZ/3 5 Nov. 2010-
5 May 2011 Critical 
shortage of agricultural 
products 
Flours, meals, 
and pellets 2301 som 30/kg Resolution, 1 Oct. 2010, 
No. 227 and G/AG/N/KGZ/3 5 Nov. 2010-
5 May 2011 Critical 
shortage of 
agricultural 
products 
Bran, sharps 
and other residues 2302 som 20/kg Resolution, 1 Oct. 2010, No. 
227 and G/AG/N/KGZ/3 5 Nov. 2010-
5 May 2011 Critical 
shortage of agricultural products 
Oil-cake and 
other solid 
residues 2304 som 10/kg Resolution, 1 Oct. 2010, No. 
227 and G/AG/N/KGZ/3 5 Nov. 2010-
5 May 2011 Critical 
shortage of 
agricultural 
products 
Solid waste resulting from extraction 2306 som 10/kg Resolution, 1 Oct. 2010, 
No. 227 and G/AG/N/KGZ/3 5 Nov. 2010-
5 May 2011 Critical 
shortage of agricultural products 
Vegetable 
materials and 
vegetable 
waste 2308 som 10/kg Resolution, 1 Oct. 2010, 
No. 227 and G/AG/N/KGZ/3 5 Nov. 2010-
5 May 2011 Critical 
shortage of 
agricultural 
products 
Paper and paperboard, waste and 
scrap 4707 som 10/kg Resolution, 30 Sept. 2009, 
No. 610 16 Oct. 2009 -no 
expiry To stimulate 
production and increase 
exports 
Coala 2701 US$.003  
/kg Resolution of 23 Oct. 2007, 
No. 503 10 Nov. 2007- 
29 July 2010 To provide raw 
materials to 
domestic 
producers and 
to stimulate 
production 
and export of 
highly 
processed 
products  
Golda 7108 US$2/g 
 Resolution of 23 Oct. 2007, 
No. 503 10 Nov. 2007-
29 July 2010  To provide raw 
materials to 
domestic producers and to stimulate production and export of highly processed products  
Wheat 1001 som 15  
/kg Decree of 20 May 2008,  
No. 235 5 July 2008-
5 January 2009 Seasonal duty 
Wheat or 
meslin flour 110100 som 30 
/kg Decree of 20 May 2008,  
No. 235 5 July 2008-
5 January 2009 Seasonal duty 
Sunflower 
seeds 120600 som 20 
/kg Decree of 20 May 2008, 
 No. 235 5 July 2008-
5 January 2009 Seasonal duty 
Vegetable oil 1512 som 100/kg Decree of 20 May 2008, 
No. 235 5 July 2008-
5 January 2009 Seasonal duty WT/TPR/S/288 • Kyrgyz Republic 
 
- 55 - 
 
  Product HS Rate Reference Applicable 
dates Rationale 
Recycled paper 
or cardboard 4707 som 25 
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009 Seasonal duty 
Barley 100300 som 20  
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009 Seasonal duty 
Oats 1004000000 som 20 
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009 Seasonal duty 
Maize 1005 som 20 
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009 Seasonal duty 
Cereal straw 
and husks 1213 som 10  
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009 Seasonal duty 
Feed crops 
(hay, alfalfa, clover, etc.) 1214 som 10 
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009  Seasonal duty  
Flours and 
meals 2301 som 30 
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009  Seasonal duty  
Bran, sharps 
and other residues 2302 som 20 
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009  Seasonal duty  
Oil-cake and 
other solid 
residues 2304 som 10 
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009  Seasonal duty  
Solid waste 
resulting from the extraction of vegetable fats or oils 2306 som 10 
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009  Seasonal duty  
Vegetable 
waste, 
vegetable 
residues and 
by-products 2308 som 10 
/kg Decree of 10 March 2009, 
No. 157 28 March 2009-
28 June 2009  Seasonal duty  
Raw hides and 
skins of bovine animals
a 4101 US$0.2 
/kg Decree of 23 October 2007, 
No. 503 10 Nov. 2007-
29 July 2010 To provide raw 
materials to domestic producers and to stimulate production and export of 
highly 
processed products 
Raw hides and 
skins of sheep 
or lamba 4102 US$0.2 
/kg Decree of 23 October 2007, 
No. 503 10 Nov. 2007-
29 July 2010 To provide raw 
materials to 
domestic 
producers and 
to stimulate 
production 
and export of 
highly 
processed 
products 
Other raw hides and skins
a 4103 US$0.2 
/kg Decree of 23 October 2007, 
No. 503 10 Nov. 2007-
29 July 2010 To provide raw 
materials to domestic producers and to stimulate production and export of highly processed products 
Woola 5101 US$0.5 
/kg Decree of 23 October 2007, 
No. 503 10 Nov. 2007-
14 April 2009 To provide raw 
materials to 
domestic 
producers and 
to stimulate 
production 
and export of 
highly 
processed 
products WT/TPR/S/288 • Kyrgyz Republic 
 
- 56 - 
 
  Product HS Rate Reference Applicable 
dates Rationale 
Fine or coarse 
animal haira 5102 US$0.5 
/kg Decree of 23 October 2007, 
No. 503 10 Nov. 2007-
14 April 2009 To provide raw 
materials to domestic 
producers and 
to stimulate production and export of highly processed products 
Waste of wool 
or of fine or 
coarse animal 
haira 5103 US$0.02 
/kg Decree of 23 October 2007, 
No. 503 10 Nov. 2007-
14 April 2009 To provide raw 
materials to 
domestic 
producers and 
to stimulate 
production 
and export of 
highly 
processed 
products 
Garnetted stock of wool or of fine or coarse animal hair
a 5104 US$0.02 
/kg Decree of 23 October 2007, 
No. 503 10 Nov. 2007-
14 April 2009 To provide raw 
materials to domestic producers and to stimulate production 
and export of 
highly processed products 
Wool and fine 
or coarse 
animal hair, 
carded or 
combeda 5105 US$0.6 
/kg Decree of 23 October 2007, 
No. 503 10 Nov. 2007-
14 April 2009 To provide raw 
materials to 
domestic 
producers and 
to stimulate 
production 
and export of 
highly 
processed 
products 
Yarn of wool, carded
a 5106 US$0.6 
/kg Decree of 23 October 2007, 
No. 503 10 Nov. 2007-
14 April 2009 To provide raw 
materials to domestic producers and to stimulate production and export of highly processed products 
Lead waste and 
scrapa 7802 US$0.005 
/kg Decree of 23 October 2007, 
No. 503 10 Nov. 2007-
29 July 2010 To provide raw 
materials to 
domestic 
producers and 
to stimulate 
production 
and export of 
highly 
processed 
products 
a According to the Decree, export duties were not applicable when exporting to CIS country 
destinations. 
Source: Information provided by the Kyrgyz authorities. 
3.2.2.2  Other taxes on exports 
3.98.  The customs clearance fees that are applied to imports apply equally to exports at the rate 
of 0.15% or 0.30% depending on the situation (S ection 3.1.5.1). In addition, the sales tax is 
applicable to exports (Section 3.1.5.4). WT/TPR/S/288 • Kyrgyz Republic 
 
- 57 - 
 
  3.2.3  Export prohibitions, restrictions, and licensing  
3.2.3.1  Export prohibitions 3.99.  The products subject to general import prohib ition, (section 3.1.6) are also prohibited from 
exportation. In addition, the Kyrgyz Republic invo ked export bans during the review period, often 
on a temporary basis. According to the authorities, these prohibitions served to control price 
fluctuations, prevent re-exports, and alleviate shortages in the domestic market (Table 3.19). 
Table 3.19 Export prohibitions 
Product HS Prohibition Reference Applicable dates Notes 
Light fuels 
oils and petroleum products 2710 12, 2710 
19210-2710 19250, 2710 19420, 2710 19480, 2710 20110-2710 
20190, 2710 
20900 (except 2710 12210, 2710 12250) Ban Decree No. 1694 
28 December 2012  28 December 2012- 
28 June 2012 Ban on re-
exports 
Petroleum 
products  2710111100-
2710119000, 
2710191100-
2710191500, 
2710192500-
2710192900, 
2710193100, 
2710194900 Ban and special 
customs 
procedures 
requiring 
customs escort 
and convoy 
consisting of 
not less than 
10 vehicles 
equipped with 
GPS Resolution No. 218 
29 March 2012,  
 30 March 2012- 
29 March 2013 Temporary 
ban to 
alleviate 
critical 
shortages 
and rising 
prices 
Wheat and meslin, including flour 1001, 1101 Ban Resolution No. 631 
25 September 2012,  12 Oct. 2012- 
11 April 2013 To avoid 
critical shortages and rising prices 
Source: Information provided by the Kyrgyz authorities. 
3.2.3.2  Export licences 
3.100.  The rules and procedures for import licences (section 3.1.6), also apply to export licences. 
Currently, export licences are required for 19 products (Table 3.20).58  
Table 3.20 Products subject to export licensing  
Product HS codes Licensing 
Body Operational 
Ministry Rationale 
Live animals 010600990 Ministry of 
Economy Ministry of Agriculture 
and Land Reclamation .. 
Medicines of plant origin 1211, 1301, 
1302 Ministry of 
Economy Ministry of Agriculture 
and Land Reclamation  .. 
Decyphering/Cryptographic 
tools, equipment, software, devices 8471, 
847330000, 854390900  Ministry of 
Economy State Committee for 
National Security Security 
Weapons and military 
equipment Not provided in 
the law  Ministry of 
Economy Ministry of Defence Security 
Defence materials and 
related protection devices Not provided in 
the law Ministry of 
Economy Ministry of Defence Security 
Military uniforms and 
clothing Not provided in 
the law  Ministry of 
Economy Ministry of Defence Security 
                                               
58 Kyrgyz law of 14 February 1998 No. 13 and 18 January 2001, No.13.  WT/TPR/S/288 • Kyrgyz Republic 
 
- 58 - 
 
  Product HS codes Licensing 
Body Operational 
Ministry Rationale 
Normative documents for 
military Not provided in 
the law  Ministry of 
Economy Ministry of Defence Security 
Ammunition 9306 Ministry of 
Economy Ministry of Defence Security 
Gunpowder, explosives, 
pyrotechnics 3601, 3602, 
3603, 3604 Ministry of the 
Interior State Agency for 
Geology and Mineral 
Resources Security 
Nuclear materials 2612, 2844, 
2845, 8401, 
2803 Ministry of 
Economy Ministry of Defence, 
National Academy of 
Sciences, State Agency 
on Environmental 
Protection and Forestry Security, 
implement 
international 
obligations 
 
Equipment and technology, 
having a dual use, which can be used for mass destruction Not provided in 
the law Ministry of 
Economy Ministry of Defense, 
National Academy of Sciences, State Agency on Environmental Protection and Forestry Security, 
implement international obligations  
Raw materials for weapons 
and military technology Not provided in 
the law  Ministry of 
Economy Ministry of Defence Security, 
implement 
international 
obligations 
Precious metals, alloy 
metals, clad, ores, concentrates, waste and scrap 2616, 2843, 
7106-7112 Ministry of 
Economy Ministry of Finance Security 
Non-ferrous metal waste 
and scrap 7404,7503, 
7602, 7802, 
7902, 8002, 
8101-8112 Ministry of 
Economy Ministry of Industry .. 
Narcotic substances Not provided in 
the law Department for 
psychotropic 
substances Ministry of Health .. 
Potent poisons Not provided in 
the law  Ministry of 
Economy Ministry of Health,  
National Academy of 
Sciences, State Agency 
on Environmental 
Protection and Forestry Security, 
implement 
international 
obligations 
 
Hazardous waste Basel Convention 
list on the control of trans-boundary 
movement of 
dangerous goods Ministry of 
Economy Ministry of Health,  State 
Agency on Environmental Protection and Forestry Protect the 
environment 
Official and civilian arms Not provided r 
in the law  Ministry of the 
Interior Ministry of the Interior Security 
Ozone depleting substances Lists of the 
Vienna Convention on the protection of the ozone, and the Montreal Protocol on 
substances that 
deplete the ozone layer Ministry of 
Economy  State Agency on 
Environmental Protection and Forestry  Protect the 
environment  
.. Not available. 
Source: Information provided by the Kyrgyz authorities. 
3.2.3.3  Export controls 
3.101.  Laws and regulations on export controls date from 2003 and were established in order to 
protect the interests of the Kyrgyz Republic, impl ement requirements of international agreements 
on non-proliferation of weapons of mass destructio n, and facilitate the integration of the Kyrgyz 
Republic in the world economy (Table 3.21). The Kyrgyz export control policy is part of the internal and foreign policy of the country and implemented in order to provide state security, including 
protecting its political, economic, and military interests. WT/TPR/S/288 • Kyrgyz Republic 
 
- 59 - 
 
  Table 3.21 Laws and procedures on export controls 
Law Reference  Summary 
Law on export control  Law, 23 January 2003, No. 30 Main law on export controls 
Measures for implementing 
the national export control 
system in the Kyrgyz 
Republic Resolution, 4 May 2004, No. 330 Procedures for control, uniform 
conditions, and filling out of export 
licences  
Agreement on common 
export control of the Eurasian Economic 
Community Law, 22 December 2005, No. 167 Kyrgyz law implementing the 
Eurasian Econom ic Community 
agreement 
Regulation of the 
implementation of export 
control Order, 27 October 2010, No. 257 Revised regulations on the export 
control system in the Kyrgyz 
Republic 
Procedure for issuing permit for the transit of goods subject to export control Resolution, 4 May 2004, No. 330 How to obtain permits for transit 
through the territory  of the Kyrgyz 
Republic of goods subject to export control 
Source: Online information viewed at: http://mineconom.kg/index.ph p?option=com_content&view 
=category&layout=blog&id=78&Itemid=171&lang=ru ; and information provided by the Kyrgyz 
authorities. 
3.102.  The list of products subject to export control is harmonized with international non-
proliferation regimes and in accordance with the common export control list of the Eurasian 
Economic Community (Table 3.22). 
Table 3.22 Export control list 
Appendix Reference 
Chemicals, equipment and technolo gies that can be used in the 
production of chemical weapons Decree of 6 February 1996, No. 55 
Nuclear materials, equipment, special non-nuclear materials and 
associated technologies Decree of 6 February 1996, No. 55 
Dual-use equipment and materials and associated technologies used 
for nuclear purposes Decree of 6 February 1996, No. 55 
Equipment, materials, and technolo gies that can be used in the 
production of missile weapons Decree of 6 February 1996, No. 55 
Source: Online information viewed at: http://mineconom.kg/index.ph p?option=com_content&view 
=category&layout=blog&id=78&Itemid= 171&lang=ru ; and Decree of 6 February 1996, No. 55. 
3.103.  Export control is carried out through the su bmission of an end-use certificate and a written 
commitment by the foreign purchaser that the goods will not be used for weapons of mass 
destruction. The Ministry of Economy issues these certificates. 
3.2.4  Duty and tax concessions, subsidies, EPZs, and export-performance requirements  
3.104.  The Kyrgyz Republic does not subsidize exports or maintain export performance 
requirements. Tax concessions for special regimes such as free economic zones (section 3.1.1.5), 
VAT (section 3.1.5.2), high technology parks (section 3.3.2.2), and textiles (section 2.3.2) are 
discussed elsewhere. 
3.2.5  Export operations of state enterprises, monopolies 3.105.  In accordance with the Presidential Decr ee "On strengthening State control over collecting, 
purchasing, sales and exports (re-exports) of scrap and wastes of ferrous and non-ferrous metals 
in the Kyrgyz Republic"
59, a state monopoly was created for the collection, purchase, processing 
and selling scrap and wastes of ferrous and non-ferrous metals. Exclusive rights were given to GP 
to purchase and export the scrap and wastes "Temir". Following a change in the decree from 2013, 
the monopoly on the collection and purchase is no longer in place.  
                                               
59 Kyrgyz Decree, 18 August 2000, No. 213. WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.2.6  Export finance, insurance, and guarantees 
3.2.6.1  Export finance 3.106.  There are currently no government agencies  or banks providing export finance or export 
guarantees. However, the Government anticipates initiatives in the near future. The National 
Export Strategy has identified "access to finance" as a cross-sectoral issue in need of improvement 
in order to create a better environment for growth of exports. In particular, it identified the lack of access to export finance as the second most impo rtant obstacle for companies hoping to export.  
3.107.  The Programme for the Development of the Manufacturing Sector for the Kyrgyz Republic 
for 2013-15, includes a section on the development of financial institutions.
60 In particular, there is 
a recognized need for two institutions to pr omote and increase industry and exports: a 
development bank or development fund to provid e funds for long-term use; and an export-import 
credit institution to provide short-term loans to companies engaged in import-export operations.  
3.108.  A number of donor organizations have initiatives to improve access to finance, including 
trade finance. The World Bank’s IFC has been acti ve in improving the microfinance industry and 
regulations, as well as through its Global Trade Finance Program, which helps banks develop new 
trade finance products.  
3.2.6.2  Export insurance 
3.109.  Discussions on establishing a government-backed export insurance and guarantee 
organization have not been fruitful, although this issue has been identified as a barrier to exports. 
While there is potentially a role for the private sector in export insurance, the lack of a good capital base leaves the Kyrgyz banks as the only suppliers. Furthermore, there is no re-insurance, 
either by the State or private sector. Foreign export  insurers are not an option as a restriction on 
selling insurance requires establishment in the Kyrgyz Republic.  
3.2.7  Export promotion and marketing assistance 
3.2.7.1  Export Development Strategy 
3.110.  In mid-2012, with the help of the ITC and international development agencies, the Ministry 
of Economy led the initiative to develop a national export development strategy. Further 
consultations were held in autumn 2012 and early 2013, to bring together stakeholders in the 
public and private sectors to develop the stra tegy. The Export Development Strategy is an 
objective under the National Strategy for Sustainable Development for 2013-17.
61  
3.111.  The four key strategic objectives are to: provide export-targeted socio-economic 
development for all citizens of the Kyrgyz Republ ic create and develop the Kyrgyz Republic as a 
regional leader in the business environment; enhance the capacity of enterprises to adapt to the demands of international markets, in particular in terms of quality and capacity; and strengthen 
the capacity of trade support institutions to provide efficient and effective support. 
3.112.  Development of the strategy involved th e examination of 16 sectors or product groups, 
based on four criteria: current conditions; export performance; trends in world markets; and 
impact on socio-economic development. As a result , six product-specific sectors were selected for 
improved export performance: textiles and clothing ; bottled water; tourism; fruit and vegetables 
(fresh and processed); meat (fresh and proces sed); and milk and dairy. Four cross-cutting 
functional issues were included so as to improve core business areas related to export: quality 
management; trade information and promotion; access to finance; and trade facilitation 
(transportation, logistics, and documentation). 
3.113.  Working groups have created a plan of action for each sector, and input from different 
regions of the Kyrgyz Republic has been in corporated. After endorsement by high-level 
                                               
60 Online information viewed at: http://www.gov.kg/wp-content/uploads/2013/03/Programma.Decree 
of13February2013,No.70 . 
61 Kyrgyz Government Resolution, 25 January 2012, No. 55. WT/TPR/S/288 • Kyrgyz Republic 
 
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  government officials, the strategy envisions a Coordinating Council to monitor and implement the 
strategy. 
3.2.7.2  Export Promotion 3.114.  Currently, there is no dedicated government organization for export promotion. The area is 
underdeveloped, and information is spread among various ministries. A priority component of the 
National Export Strategy is to improve trade inform ation and promotion. The plan of action for this 
cross-cutting issue calls for the creation of a trade promotion organization; preliminary work to 
establish the organization is under way.  
3.3  Measures Affecting Production and Trade 3.3.1  Legal framework for businesses including registration and licensing 
3.3.1.1  Types of business entities 
3.115.  The most common type of business entity is the private entrepreneur followed by the 
limited liability company. Foreign and domestic persons may conduct business under all the types of business entities. Branches or representative offices allow foreign companies to establish 
without creating a separate legal entity. However,  there are certain restrictions. A representative 
office is restricted to only representing the foreign entity and the entity may not be licenced to perform certain activities. The limited liability company allows for the creation of a separate legal 
entity in which the participants are only liable for losses up to the level of their contribution. 
Private entrepreneurs may carry out business activities on the basis of a state registration certificate or patent (Table 3.23).  
Table 3.23 Types of business entities 
Type Number of entities 
as of January 2013  Information 
Limited liability company (LLC) 8,968 Flexible company type; minimum capital of 
Som100; limited liability; may engage in any type of activity 
Joint-stock company (JSC)  Minimum capital of Som100,000 
 -open joint-stock company 541 Unlimite d number of shareholders; elaborate 
disclosure requirements; shares may be openly traded 
 -closed joint-stock company 271 Maximum of 50 shareholders; no publishing 
of accounts 
Partnerships 44 At least two pa rticipants, with or without a 
separate legal entity; gains or losses apportioned based on contributions 
Private entrepreneurs/sole tradersa 234,429  Simple, non-corporate entity 
Branches and representative offices 
of foreign companies 1,176 No separate legal entity established as the 
property of the foreign company 
a Excluding peasant farmers. 
Source: Kyrgyz Stat online. Viewed at: http://stat.kg/images/stories/docs/ Classifikator/EGRSE/Hoz. sub.OPF 
II. 2013.xls ; and information compiled by the WTO Secretariat. 
3.3.1.2  Business climate 
3.116.  According to the World Bank, the Kyrgyz Republic ranks 70th out of 185 economies, for 
ease of doing business. It fell one position from 69th in 2012, and although not directly 
comparable, was ranked 90th of 175 in 2007.62 While there have been many positive developments 
in the Kyrgyz business climate, such as simplify ing tax payments, improvements are being sought 
for corruption, provision of adequate electricity, and access to finance.  
                                               
62 Online information, viewed at: http://www.doingbusiness.org/rankings.  WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.3.1.3  Business procedures 
3.117.  The law on Licences for import and export (3.1.6.3) is also applicable for certain business 
activities. Some types of businesses involved in pr oduction, activities, and services are subject to 
licensing. These include, production and distribution  of alcoholic beverages, production and sale of 
drugs and medicines, construction of dams, privat e medical and veterinary practices, banking and 
insurance activities, operation of gambling establishments, etc.63 Licences are issued by the 
government body responsible for the licensing ac tivity. Licences are generally unrestricted, but 
restrictions may be imposed for state monopolies, national security, law enforcement, or other 
protection. 
3.118.  Businesses that are established as separate legal entities require registration with the 
Government. The Kyrgyz Republic established a on e-stop-shop for registration of entities. After 
filing the necessary paperwork, registration is within three business days. 
3.119.  Pursuant to the Law on Procedures for Conducting Inspections of Business, businesses are 
subject to inspection by authorized government bodies to ensure compliance with laws and 
regulations. The law sets out the procedures for conducting inspections, including the rights of the 
parties; inspections may be: scheduled, un-scheduled, cross-inspections, control inspections, and re-inspections.  
3.120.  Private-sector organizations have noted business inspections are an area of concern. In 
2012, two government resolutions were passed to improve the situation: one introduced risk- 
assessment criteria and degrees of risk in order to reduce inspections; the second reduced the 
number of competent government bodies authorized to conduct inspections from 21 to 12.
64 In 
2012, 13,507 business inspections were carried out; 78% were scheduled inspections. This was a 
significant decrease from the 24,409 inspections of 2011. Inspections in 2012 resulted in fines of Som58.2 million, and 38 cases were reported to law enforcement agencies. 
3.3.1.4  Legal framework 
3.121.  There are a number of laws governing th e business environment in the Kyrgyz Republic 
(Table 3.24).  
Table 3.24 Main laws governing business 
Law Reference 
Law on concessions and foreign concessionaire entities Law of 6 March 1992, No. 850-XII 
Law on joint stock companies Law of 27 March  2003, No. 64 
Civil Code  Law of 8 May 1996, No. 15 
Law on bankruptcy (insolvency) Law of 15 October 1997, No. 74 
Law on pledge Law of 12 March 2005, No. 49 
Law on the securities market Law of 24 July 2009, No. 251  
Law on state service for regulation and supervision of the financial 
market Law of 24 July 2009, No. 249 
Law on investment funds Law of 26 July 1999, No. 92 
Tax Code Law of 17 October 2008, No. 230 
Law on optimizing the regulatory and legal framework regulating 
entrepreneurial activity Law of 5 April 2008, No. 55 
Law on public-private partnerships Law of 22 February 2012, No. 7 
Law on streamlining legislative framework for regulation of 
entrepreneurial activities  Law of April 2008, No. 55 
Law on procedures for conducting inspections of business  Law of 25 May 2007, No. 72 
Law on the optimization of the le gal framework regulating business 
activities Law of 5 April 2008, No. 55 
                                               
63 Non-exhaustive list. 
64 Resolution of 18 February 2012, No. 108 and Resolution of 19 April 2012, No. 1854. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Law Reference 
Law on improving public policy in the area of business regulation  Decree of 9 December 2008, No. 435 
Law on the moratorium on inspections carried out by the tax service of 
the Kyrgyz Republic, and reducing the number of inspections of 
businesses conducted by other competent supervisory authorities of the 
Kyrgyz Republic  Decree of 22 April 2008, No. 145 
Source: Information compiled by the WTO Secretariat. 
3.3.1.5  Small and medium-sized businesses 
3.122.  The national sustainable development st rategy for 2013-17 contains provisions on small 
and medium-size enterprise (SME) development. These enterprises account for approximately 40% of GDP but their development is far below potential. Problems such as corruption, 
bureaucratic procedures, and unjustified inspections are cited as barriers. 
3.123.  The strategy sets out four tasks to be ac hieved in order to create an enabling environment 
for SMEs: strengthening the legislation on securi ty of private property; deducing government 
interference in business regulation; providing financial, loan, and insurance support to enterprises; 
and becoming a top-30 country in the Doing Business rankings. 
3.3.2  Incentives, subsidies, and other government assistance 3.3.2.1  General incentives 
3.124.  The Kyrgyz Republic has certain tax schemes that provides tax relief to certain entities. In 
addition to VAT and excise tax exemptions (section  3.1.5), tax incentives or support are provided 
to certain sectors such as textiles (section 2.3. 2), high technology parks, and free economic zones 
(section 3.1.1). The agriculture sector, i.e. producer, commodity, and service cooperatives are all 
exempt from sales tax and profit tax (section 4.1.3). 
3.3.2.2  High technology parks 3.125.  A special tax regime was put in place in 2011 to create high technology parks
65; however, 
no high-tech parks are currently in operation. Re sidents of the park, that meet the requirements, 
are exempt from revenue tax, sales tax, and VAT. There is also a special income tax rate of 5% for employees and boards of directors of Park residents.  
3.3.2.3  Subsidies  
3.126.  No direct subsidies are known to be gran ted to industry or agriculture by the Kyrgyz 
Government. However, privileges or special treatment are accorded to certain industry sectors, 
often with the aim of promoting or further developing that industry.  
3.127.  For example, a government resolution was passed in 2012 on measures of state support 
for textiles, apparel, and furniture.
66 In order to enhance competitiveness and improve the export 
potential, the resolution provides for the exemption of the customs clearance fee for machinery 
used directly by the businesses in their own prod uctive capacity. Approximately 25 tariff lines of 
textile machinery are eligible.  
                                               
65 Chapter 59 of the Tax Code. 
66 Kyrgyz Government Resolution, 26 March 2012, No. 204. WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.3.3  Government Procurement 
Table 3.25 Overview of procurement, 2011 
 Government agency 
procurement 
 Government enterprise and 
joint-stock company (with 
more than 50% government 
share) procurement Sub-central 
(local/municipal) 
procurement 
No. of tenders 
 Total value procured   Thresholds            Main law 2,464  
 som 5,311,651,200    Budget funded organisations:  Goods and services: min. som 500,000  max. som 1,500,000   State entities:  Works: Min.: som 500,000  Max.: som 2,000,000   Public Procurement Law,  24 May 2004, as amended 1,185 
 som 7,700,627,900    Same as for government agency if authorized capital is < som 100 million, otherwise     Goods, works, and services: Min.: som 2 million  Max.: som 10 million    Public Procurement Law,  24 May 2004, as amended 503 
 som 2,777,845,400               Public Procurement  Law, 24 May 2004, as amended 
Source: Compiled by the WTO Secretariat, based on "Public Procurement in the Kyrgyz Republic 2011". 
Viewed at:  http://zakupki.okmot.kg/documents.action?type=2  [in Russian only].  
3.3.3.1  Structure 
3.128.  Until 2009, procurement at the central level was handled by the State Agency for Public 
Procurement and Material Reserves. Pursuant to  a Decree of the President, this agency was 
liquidated and the public procurement methodology,  procedures, and training functions were later 
delegated to the Ministry of Finance.67 Based on the procurement laws and regulations, the 
Ministry prepares and publishes the detailed rules of public procurement, including the manual, 
instructions, and documents; informs the public about possible changes in procedures; collects, 
analyses, and publishes information on public procurement; develops and maintains information on web portals; and ensures openness and transp arency in the procurement process. In 2011, 
there were approximately 2,145 entities used the public procurement process.
68 
3.3.3.2  Main elements of the procurement law 
3.129.  The Public Procurement Law was introduced in 2004 and has been amended several times. 
It covers procurement of all goods, works, an d services by government agencies, agencies, 
foundations, local governments, state and municipal enterprises, and joint-stock companies in 
which the State owns more than a 50% share. Th e five basic types of tendering processes are: 
open tenders, used for over 80%; request for quotations; limited tendering; single-source; and 
two-stage tenders.  
3.130.  In principle, foreign bidders are allowed to participate on an equal basis in the 
procurement process; however, this is undermine d by provisions elsewhere in the procurement 
law. In evaluating bids, a procuring entity may give a 20% preference to domestic goods. For 
works, there is the provision of using local labour and not less than 30% of domestic raw materials. However, in the past four years, there has been no application of this provision. 
                                               
67 There was a gap of several months during whic h procurement was not assigned. Kyrgyz Decree of 
26 October 2009, No. 425 and Regulation of 4 December 2009, No. 733. 
68 "Public Procurement in the Kyrgyz Republic  2011". WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.3.3.3  Recent developmen ts and future initiatives 
3.131.  In 2010, the Kyrgyz Republic launched e-proc urement in order to improve the efficiency of 
government procurement processes through automation, to increase transparency, and to transition the Government to electronic processes. During the first quarter of 2013, e-procurement 
was used in over 1,000 tenders with a total value of som 17 billion. However, e-procurement is at 
an embryonic stage. Even though all information can be downloaded electronically, tenders are not 
yet performed through a secured electronic portal. The government plans to complete this 
undertaking in the future. 
3.132.  The Government approved a public procurement strategy for 2012-2014, including a 
phased plan for the development of public procurem ent. In particular, it reinforces the importance 
and development of e-procurement, and recogniz es the need for further improvements in the 
regulatory and legal framework governing public procurement and the importance of transparency 
in the procurement system.  
3.133.  According to the authorities, work is under way to reduce the involvement of state 
agencies in the procuring process. The Tender Co mmission will assess bids and eventually award a 
contract. They will be the first to consider appeals, and will take a final decision. It is envisaged that no contract will be signed unless all appeals are settled. A period of 10 days will be given for 
filing an appeal.  
3.3.3.4  Kyrgyz Republic and the GPA 3.134.  As part of its accession protocol, the Kyrg yz Republic agreed to pursue membership in the 
GPA. In 1999, it submitted an application and became an observer in the Committee on 
Government Procurement, and in 2002 it submitted an offer. Questions and responses were 
exchanged with GPA parties during 2002-03. However, since that time the only development has been an updated checklist of responses by th e Kyrgyz Republic in 2009, and the process has 
stagnated. It is unclear whether the Kyrgyz Republic will pursue its accession to the GPA. Officials 
indicate that it is difficult to determine when  the process of accession to the GPA would be 
resumed. 
3.3.4  Intellectual property rights 
3.135.  During the review period, a number of laws and resolutions were passed and a national 
strategy on intellectual property and innovation was developed.  
3.3.4.1  Legal framework 
3.136.  A number of laws have been adopted mainly to improve legal protection for intellectual 
property, in particular: 
 Law of the Kyrgyz Republic "On introducing changes and additions to the Civil Code of 
the Kyrgyz Republic", which stipulates amendments aimed at removing inconsistencies 
in the effective legislation on intellectual property and granting additional rights to trademarks owners, in particular, right to pledge exclusive rights
69; 
 Laws of the Kyrgyz Republic "On introducing changes and additions to the Law of the 
Kyrgyz Republic On Copyright and Related Rights", which introduced amendments on supplementing the exclusive rights of author s and owners of related rights with other 
rights (Internet rights
70); 
 Law of the Kyrgyz Republic "On introducing changes and additions to the Law of the 
Kyrgyz Republic Patent Law", which provides for additional rights to trademark owners, in particular, the pledge right and post-use right.
71 
                                               
69 Law of 24 January 2013. 
70 Law of 5 August 2008, No. 197 and 27 June 2011, No. 58. 
71 Law of 26 December 2012. WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.137.  In addition, measures are being undertaken to improve the efficiency of intellectual 
property rights protection. The Law of the Kyrgyz  Republic "On introducing changes and additions 
to the Customs Code of the Kyrgyz Republic" improv ed provisions of the Customs Code in terms of 
protection intellectual property rights when moving goods across the customs border.72 Changes to 
the Criminal Code increased the fines for offences.73  
3.138.  The main laws on IP are supported by  more than 100 regulations and related rules 
(Table 3.26). The Kyrgyz Republic adheres to 23 multilateral IP treaties, and a number of bilateral 
agreements on IP. 
Table 3.26 Main intellectual property laws 
Law Date/Reference 
Civil Code of the Kyrgyz Republic (part II, Section 5 "Intellectual Property") 1 March 1998 
Criminal Code of the Kyrgyz Republic (article 150, Infringement of copyright, related 
rights and patent rights, Article 191, Illegal use of trademark 1 January 1998 
Code of the Kyrgyz Republic on Administra tive Liability (Chapter 25, Administrative 
offences infringing in tellectual property) 1 January 2005 
Customs Code of the Kyrgyz Republic (Section  IX, Protection of intellectual property 
rights by customs bodies) 4 February 1998 
Patent Law 4 February 1998 
Law on trademarks, service marks and appellations of places of origin of goods 28 February 1998 
Law on copyright and related rights 23 February 1998 
Law on legal protection of computer programs and data bases 4 April 1998 
Law on legal protection of topologies of integrated circuits 10 April 1998 
Law on commercial secret 10 April 10 1998 
Law on legal protection of breeding achievements 26 June 1998 
Law on service inventions, utility models and industrial designs 13 August 1999 
Law on firm names 31 December 1999 
Law on patent attorneys 28 February 2001 
Law on secret inventions 31 March 2006 
Law on protection of traditional knowledge 7 August 2007 
Regulation on procedure of customs control ov er goods containing objects of intellectual 
property 27 November 2000 
Source: Information provid ed by the Kyrgyzpatent. 
3.3.4.2  Framework 
3.139.  Kyrgyzpatent, the state service for Intellectual Property and Innovations, under the 
Government, implements intellectual property policy in the Kyrgyz Republic. The responsibilities of 
Kyrgyzpatent include developing the legislative fram ework aimed at protecting intellectual property 
rights and granting rights to IP objects. Enforcem ent of intellectual property rights is under the 
competence of other state entities such as la w enforcement, Customs, and judicial bodies. 
Kyrgyzpatent is engaged in drafting and impr oving the legal framework on IP protection.  
3.3.4.3  Kyrgyz IP strategy 3.140.  By virtue of a government resolution, the National Strategy for Development of Intellectual 
Property and Innovations in the Kyrgyz Republic for 2012-2016 was approved in 2011.
74 Under the 
framework of the strategy the following priority areas have been identified: creating favorable conditions for the development of innovative activity and use of IP objects; promoting modernization of the economy by intensifying transfer of advanced technologies; raising 
awareness of the general public to the role and valu e of IP; and creating of an efficient system of 
IP protection.
 
3.141.  The strategy seeks to establish a strong economy based on knowledge, encourage 
investments in innovation, and promote entreprene urship. Further improvements are envisioned in 
                                               
72 Dated 5 August 2008, No. 196. 
73 Law of 29 February 2009, No. 58 introduced amendments to Article 150 of the Criminal Code. 
74 Kyrgyz Resolution, 23 September 2011, No. 593. WT/TPR/S/288 • Kyrgyz Republic 
 
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  the legal and normative bases, improvement of pr ocedures for legal protection for IP subject 
matters, and raising the overall level of IP protection. 
3.3.4.4  IP enforcement 3.142.  Infringement of IPRs, i.e. production, importation, and exportation of counterfeit goods, as 
well as sale of counterfeit goods has become a key problem for the Government, businesses, and 
consumers in the Kyrgyz Republic. It is recognized that special attention is required for anti-piracy measures with respect to audio, video,  software, and counterfeit trademarks. 
 
3.143.  Kyrgyzpatent has developed draft resoluti on on procedures to suspend release of goods 
containing IP objects not included in the customs registry, in order to implement Article 349 of the Customs Code. The plan of activities to implemen t the objectives of the national strategy for 2012-
13 approved procedures to improve the system of  IP protection, in particular, copyrights and 
related rights, and decrease the amount of counterfeit goods.
75 In addition, six other draft laws 
have been prepared to deal with enforcement issues. 
3.144.  Furthermore, Kyrgyzpatent provides consultations, and organizes workshops, seminars, 
and meetings for representatives of law enforcement bodies, authors, right holders, and users of 
IP on a regular basis. During 2006-12 representati ves of Kyrgyzpatent took part in various court 
proceedings, including at the Supreme Court of the Kyrgyz Republic, inter-district courts on 
economic cases, as well as various courts of general jurisdiction (Tables 3.27 and 3.28). 
Table 3.27 Objections filed and their cons ideration by the Appeals Council, 2006-12 
 No. of objections filed  No. of objections considered  
Inventions 4 3 
Trademarks 39 39 
Firm names 3 3 
Total 46 45 
Source: Information provid ed by the Kyrgyzpatent. 
Table 3.28 Court proceedings on IP, 2006-12 
Types of claims Filed  Judgment 
in favor of 
plaintiff  Judgment in 
favor of 
respondent  Appealed Judgment  
On repeal of non-normative act 
issued by the state body 3 1 1 1  
On early termination of protection 
of trademark due to non-use 46 20 12 8 6 
On repeal of non-normative legal 
act issued by the state body (decisions of the Appeals Council and decision of ex pert examination) 26 7 16 3 .. 
Claims against action s of officials of 
Kyrgyzpatent 2  2   
On coercive execution of the 
licensing agreement with Kyrgyzpatent on the right to use copyright and related rights objects 80 79 .. .. 1 
On collection of author’s royalty 48 39 1 3 5 
Total 205 146 32 15 12 
.. No cases. 
Source: Information provid ed by the Kyrgzypatent. 
3.3.4.5  Use of IP  
3.145.  Analysis of IP trends for 2007-12 demonstrates relative stability, although there was a 
decrease in the number of patent applications. This reflects lack of production capacity in the 
manufacturing sector and the political instability during the period. The low level of patent filings 
                                               
75 Kyrgyz Resolution, 23 September 2011, No. 593. WT/TPR/S/288 • Kyrgyz Republic 
 
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  was also related to the applicants using the Eurasian patenting system, which also grants 
protection to inventions in the territory of the Kyrgyz Republic.  
3.146.  At present, trademarks dominate intellectua l property filings and registration in the Kyrgyz 
Republic, under the national procedure, which ha s increased since 2010, and the Madrid system 
registration.  
3.147.  The trends for the registration of breeding achievements reflect the unstable nature of this 
area. One of the main problems is insufficient interest by R&D institutes in the area of land use, 
livestock and pastures to receive legal protection for their efforts, which often result in 
unauthorized use of the achievements by third pa rties. Copyright has generally seen significant 
growth, more than doubling since 2007 (Table 3.29). 
Table 3.29 Trends in intelle ctual property, 2007-2012 
 2007  2008  2009  2010 2011 2012  
Inventions (number of applications) 158 138 149 140 129 111 
Utility models (number of applications) 17 7 12 16 10 17 
Industrial designs (number of applications) 12 22 19 16 25 36 
Innovation proposals (number of applications) 78 56 87 76 41 72 
Trademarks (number of applications) 615 750 646 682 724 703 
International registration of trademarks  4,647 4,844 4,123 4,147 4,342 4,901 
Breeding achievements (number of applications) 5 1 2 7 2 1 
Copyright (number of applications) 135 237 233 233 224 289 
Source: Information provid ed by the Kyrgyzpatent. 
3.3.5  Role of state-owned enterprise s, state monopolies, and privatization 
3.148.  The Kyrgyz Republic began privatization of  public enterprises after independence in the 
early 1990s. The process is ongoing. The first stage included small privatization, i.e. privatization 
of entities in services, trade, and housing and construction. The next stage comprised share sales 
of large and medium-sized state enterprises in manufacturing, transport, and construction. During 
the third stage, priority was given to transforming  large strategic entities of monopolized economic 
sectors, privatization of insolvent or bankrupt ente rprises, and completion of coupon privatization. 
Entities in other areas such as utilities and housing, health resorts and recreational, sports, 
tourism, and similar areas, were also subject to privatization. 
3.149.  While over 70% of public sector entities have been transferred into private ownership, the 
State remains the owner of many strategically impo rtant enterprises in fuel and energy activities, 
mining, natural monopolies, and telecommunications. The State, represented by the Fund for State 
Property Management, is a shareholder in 59 joint-stock companies, of which 22 are strategic companies. The state owns the controlling interest  of stock in 38 companies, and there are 158 
state enterprises under government ministries and agencies. The process of privatization is taking 
place on the basis of a mid-term programme of stat e property privatization, i.e. a listing of state-
owned objects subject to privatization. 
3.150.  Until 2011, the mid-term privatization programme was approved by the Government. 
Under June 2011 amendments to the legislation,  the programme is to be approved by the 
parliament.
76 This change was intended to ensure control, efficiency, and accountability for 
privatization of state property. Other key developments have included improving the transparency 
and openness of the process of privatization. Previously, it was the norm to privatize state 
property through auctions or tenders without setting the price. This resulted in corruption and sale of the state property at below-value prices. This  practice was abolished in 2010. A new provision, 
aiming to improve transparency, included representa tives of the business sector and civil society in 
the composition of the commission on privatization and assessment of strategic objects. 
                                               
76 Law dated 23 June 2011, No. 54 on "Introducing Ch anges and Additions to the Law of the Kyrgyz 
Republic on "Privatization of State Property in the Kyrgyz Republic". WT/TPR/S/288 • Kyrgyz Republic 
 
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  3.151.  The 2012-14 privatization programme is be ing implemented with the privatization of five 
state-owned objects.77 In recent years, there has been a significant decrease in privatization, due 
to the very large enterprises in strategic sectors that remain under state ownership. The current policy focuses on improving the management of state enterprises and joint-stock companies with 
state participation, and introducing the public-partnership mechanism.  
3.152.  The Kyrgyz Republic undertook a transparen cy commitment with respect to privatization in 
its WTO Protocol of Accession. In particular it committed to providing annual information for as 
long as its programme of privatization was in existence, and on other issues related to its 
economic reform as relevant to its WTO obligations.
78 During the period under review, no such 
annual notifications were received despite the ongoing privatization. 
3.153.  There are several laws that regulate state-owned property (Table 3.30). 
Table 3.30 Laws on state-owned property  
Law Reference 
Civil Code of the Kyrgyz Republic Law of 8 May 1996, No. 15  
(Part I, Articles 158,159, 229-231, 288) 
Law on Joint Stock Companies Law of 27 March 2003, No. 64 
Law on Trust Management of State Property Law of 26 July 2011, No. 136 
Law on Strategic Objects of the Kyrgyz Republic Law of 23 May 2008, No. 94 
Law on Economic Partnership and Companies Law of 15 November 1996, No. 60 
Law on Privatization of State Property in the Kyrgyz Republic Law of 2 March 2002, No. 31 
Source: Information provided by the Kyrgyz authorities. 
3.154.  The State still has a major role in a number of significant sectors (Table 3.31). 
Table 3.31 State-owned enterpri ses and joint-stock companies 
Name Sector Reference 
- "Kyrgyzalko" JSC 
- "Karabaltinsky Spirit Factory" SE – "Karakolsky Spirit Factory" SE Alcohol production Order of the Mini stry of Foreign Trade and Industry 
of the Kyrgyz Republic dated 18 February 2000, No. 19 on approval of the charter of "Karabaltinsky Spirit Factory" state enterprise 
"Kyrgyztamekisi" JSC Tobacco Resolution of the Government of the Kyrgyz 
Republic on "Kyrgyztamekisi" state joint-stock 
corporation dated 11 June 1996, No. 262 
"Kyrgyz Temirzholu" SE Railways and cargo 
transportation Resolution of the Government of the Kyrgyz 
Republic on organizational issues of construction of main railway lines in the Kyrgyz Republic" dated 2 May 2008, No. 203 
- "Kyrgyzstan Air Company 
 OJSC 
- "Manas" International Airport 
 OJSC Services of airport and 
aviation Resolution of the Government of the Kyrgyz 
Republic on establishing "Kyrgyzstan Air Company", 
open joint-stock company dated 11 January 2006, 
No. 9 
- "Kyrgyztelekom" OJSC - "AlfaTelekom" OJSC Telecommunication  
- "Kyrgyzneftegaz" JSC 
- "Kyrgyzgaz" JSC» Oil & gas  
- "ElektricheskieStantsii" OJSC 
- "Chakan – GES" OJSC - "NationalnayaElektricheskayaset; Kyrgyzstana" OJSC - "Vostokelektro" OJSC - "Severelektro" OJSC - "Oshelektro" OJSC - "Jalalabalelektro" OJSC Power energy sector Programme for denationalization and privatization 
of "Kyrgyzenergy" joint-stock company approved by Resolution of the Government of the Kyrgyz Republic on programme for denationalization and privatization of "Kyrgyzgosenergoholding" state joint-stock holding company dated 23 April 1997, No. 239.   
"Bishkekteploset’" OJSC Power and heating 
energy transmission 
"Kyrgyzpochtasy" SE Postal services  
                                               
77 Resolution of 25 April 2012, No. 1877-V. 
78 WTO Document WT/ACC/KGZ/26, paragraph 14 of the "Report of the Working Party on the Accession 
of Kyrgyz Republic". WT/TPR/S/288 • Kyrgyz Republic 
 
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  Name Sector Reference 
- "Ayil Bank" OJSC 
- "RSKBank" OJSC Banking Resolution of the Government of the Kyrgyz 
Republic on transformation of 
"AyilbankKyrgyzskayaselskolhozyastvennayafinanso
vayacorporatsiya" closed-type joint-stock company 
into "Ayilbank" open joint-stock company dated 
11 November 2004, No. 832 
 
Resolution of the Government of the Kyrgyz 
Republic and the National Bank of the Kyrgyz 
Republic on transfer of 100% of shares of 
"Raschetno-sberegatelnay akompaniya" open-type 
joint-stock company from the National Bank of the 
Kyrgyz Republic to the Government of the Kyrgyz 
Republic dated March 28, 2003, No. 171 
"Kyrgyzaltyn" OJSC Gold mining Resolution of the Government of the Kyrgyz 
Republic on transformation of "Kyrgyzaltyn" Kyrgyz 
State Concern dated 29 September 1999, No. 528 
Source: Information provided by the Kyrgyz authorities. 
3.155.  Many state entities operate under th e Law on Natural and Permitted Monopolies. 
(Table 3.32) This law aims at balancing the interests of consumers by providing products, works, or services while allowing for the effective f unctioning of natural and permitted monopolies.
79 The 
law establishes a state registry of natural and permitted monopolies that are subject to state 
regulation and control. Under the law, regulation may be in the form of price regulation, including for exports; limits on profitability; value of trad e allowances; identification of customers subject to 
mandatory services; and obligations for technical and engineering services. The dominant method 
is price-based. The full list of entities considered natural or permitted monopolies includes over 200 entities at the state and regional levels.
80 Regional monopolies are mainly in the water, waste, 
and transport sectors, while those at the state level are concentrated in the energy, heating, 
alcohol, and transport. 
Table 3.32 State-owned enterprises and joint- stock companies included in the Registry 
of Natural and Permitted Monopolies 
Enterprise Sector Method of regulation 
"Kyrgzalkal" Alcohol Price-based 
 Tobacco Price-based 
"Kyrgyz Temir Jolu" Railway and cargo transport Price-based 
"Elektricheskiestantsii" OJSC Electric and heating power production Price-based 
"Natsionalnyeelektricheskiestantsii 
Kyrgyzstana" OJSC Electric energy transmission Price-based 
"Severelektro" OJSC Sale and distribution of electric energy Price-based 
"Oshelektro" OJSC  Price-based 
"Vostokelektro" OJSC  Price-based 
"Jalalabatelektro" OJSC  Price-based 
"Chakan-GES" OJSC Electric energy production Price-based 
"Kyrgyzgaz" OJSC Distribution and sale of natural gas Price-based 
"Bishkekteploset" OJSC 1. Distribution and sa le of heating energy Price-based 
 2. Technical maintenance of intra-residential system 
of heating supply Price-based 
"Kyrgyz Temir Zholu" NCSE Services related to railway Price-based 
"Manas" International Airport OJSC Ground handling Price-based 
"Kyrgyzaeronavigatsiya" SE Air navigation services Price-based 
"Kyrgyztelekom" OJSC Services provided to the end-user (consumer) Price-based 
"Kyrgyzpochtasy" SE Postal communication services provided within the 
country; Mailing card: regular; registered and paid 
Mailing letter: regular; registered; insured  
Delivery parcel: regular; registered; insured Price-based 
State enterprise of government 
communication under the Ministry of Transport and Communications of the Kyrgyz Republic Governmental communication services provided to 
budget-financed institutions and organizations Price-based 
"Kyrgyzstan" Air Company OJSC Passenger air transportation within the country Price-based; setting 
the maximum 
profitability level 
                                               
79 Law of 8 August 2011, No. 149. 
80 Antimonopoly Authority online information. Viewed at: http://www.antimonop olia.kg/index.php/ 
reestry/monopolisty . WT/TPR/S/288 • Kyrgyz Republic 
 
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  Enterprise Sector Method of regulation 
"Kyrgyzsaltyn" JS Candits affiliates Gold Identification of a 
range of consumers subject to mandatory services 
 Gold refining Setting the maximum 
profitability level 
"Termir" SE Scraps, wastes of ferrous and non-ferrous metals, 
processing services Price-based 
"Karabaltinsky Spirit Factory"SE Spirit, services on technical processing of spirit Setting the maximum 
profitability level 
"Spetsialnayasvyaz" SE National passports delivery within the territory of the 
Kyrgyz Republic Price-based 
"Infokom" SE Acceptance, arrangement, check and issuance of 
passports and foreign passports of citizens of the 
Kyrgyz Republic on an urgent basis for a fee; 
production of a passport of a citizen of the Kyrgyz 
Republic in an urgent manger for a fee Price-based  
"Alfa-Telekom" CJSC Mobile communication services Price-based 
Kyrgyzkomur Coal Price-based 
Source: Information provided by the Kyrgyz authorities. 
3.3.6  Competition policy and regulatory issues 
3.156.  The Kyrgyz Republic has a well-established  system with respect to competition policy and 
recently enacted new legislation. The Department on Antimonopoly Policy, under the Ministry of Economy, is in charge of developing policy; and the Antimonopoly Authority, under the Prime 
Minister, is responsible for oversight. 
3.157.  The first anti-monopoly law was developed in 1994 in order to restrain monopolistic 
activities and promote competition. The new law on competition, passed in 2011, aims to prevent 
and limit monopolistic activity and unfair competition, thereby ensuring conditions for the creation 
and efficient functioning of markets. The Kyrgyz Re public is member of the Inter-state Council on 
Antimonopoly Policy, pursuant to the Agreement on Implementation of Agreed Antimonopoly 
Policy, under the CIS framework.
81 The agreement creates legal and organizational frameworks for 
cooperation in implementing agreed antimonopoly policy and competition development, as well as preventing monopolistic and unfair competition actions that damage economic interests of signatories. A number of laws and resolutions are aimed at promoting competition or imposing 
rules on monopolies (Table 3.33). 
Table 3.33 Main competition laws  
Laws on competition References 
Law on Competition Law of 22 June 2011, No. 116 
Law on Natural and Permitted Mono polies in the Kyrgyz Republic Law of 8 August 2011, No. 149 
Law on Consumer Rights Protection Law of 10 December 1997, No. 90 
Law on Advertisement Law of 24 December 1998, No. 155 
Resolution of the Government of the Kyrgyz Republic on approval of 
Rules on control over compliance wi th the antimonopoly legislation 
of the Kyrgyz Republic during the process of economic concentration Resolution of 21 June 2012,  
No. 431 
Resolution of the Government of the Kyrgyz Republic on approval of 
Rules on consideration of investment projects, business plans, 
current reports, accounting policy and materials of re-assessment of 
fixed assets of natural and permitted monopolies  Resolution of 1 June 2012, No. 351 
Resolution of the Government of the Kyrgyz Republic on approval of 
Rules for consideration of cases on violation of antimonopoly 
legislation  Resolution of 2 June 2012, No. 365 
Resolution of the Government of the Kyrgyz Republic on approval of 
Rules on examination of requests and notifications by the state 
antimonopoly body filed pursuant to the requirements of Article 5 of 
the Law of the Kyrgyz Republic on Natural and Permitted Monopolies 
in the Kyrgyz Republic Resolution of 2 June 2012, No. 366 
Resolution of the Government of the Kyrgyz Republic on approval of 
Rules on coercive division (spi n-off) of econ omic entities Resolution of June 11, 2012,  
No. 391 
                                               
81 20 January 2000. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Laws on competition References 
Resolution of the Government of the Kyrgyz Republic on approval of 
Rules on consideration of cases on violation of antimonopoly 
legislation in the area of unfair competition  Resolution of 2 June 2012, No. 362 
Resolution of the Government of the Kyrgyz Republic on approval of 
Rules on identification and prevention of anti-competitive agreements (agreed actions) of economic entities restricting competition  Resolution of 2 June 2012, No. 364 
Resolution of the Government of the Kyrgyz Republic on approval of 
Procedure on setting prices (tariffs) for goods (works, services) of 
natural and permitted monopolies Resolution of 18 February 2013,  
No. 83 
Resolution of the Government of the Kyrgyz Republic on approval of 
Rules for procurement of goods (works, services) by natural and permitted monopolies Resolution of 5 April 2013, No. 175 
Resolution of the Government of the Kyrgyz Republic on approval of 
unified registry (list) of state se rvices provided by the executive 
bodies and structural subdivi sions thereof and subordinate 
institutions Resolution of 10 February 2012,  
No. 85 
Resolution of the Government of the Kyrgyz Republic on approval of 
Regulation on methodology of setting tariffs (prices) for paid services (works) Resolution of 26 October 2000,  
No. 637 
Resolution of the Government of the Kyrgyz Republic on approval of 
Regulation on formation and application of tariffs for paid 
educational services in the Kyrgyz Republic Resolution of 18 May 2009, No. 300 
Resolution of the Government of the Kyrgyz Republic on approval of a list of trade rules in the te rritory of the Kyrgyz Republic Resolution of 2 March 2010,  
No. 118 
Resolution of the Government of the Kyrgyz Republic on approval of 
Procedure for setting tariffs for paid  services (works) of the market 
administration for use of trade areas by individuals and legal entities Resolution of 14 June 2011,  
No. 312 
Source: Information provided by the Kyrgyz authorities. 
3.158.  The Law on Competition is reportedly modelled on the competition laws of the United 
States and Russia. It contains 21 articles and ad dresses dominant position, group of individuals, 
abuse of dominant position, anti-competitive agreements, unfair competition, actions of state bodies, forced separation, compensation, accountability measures, right to appeals, etc. The other 
major law on competition concerns natural and permitted monopolies (section 3.3.5). 
 WT/TPR/S/288 • Kyrgyz Republic 
 
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  4  TRADE POLICIES BY SECTOR 
4.1  Agriculture 4.1.1  Overview 4.1.  During the review period, the agriculture sector's performance was affected by several 
shocks, including political and ethnic crises, and adverse climatic conditions, which translated into 
erratic growth (Chart 4.1). As a result, the sect or's GDP share decreased by 10 percentage points 
(Chapter 1) over 2006-12. The crops and livestock  segments continued to dominate agricultural 
output, with increasingly even shares, whereas forestry and fisheries continued to make minor 
contributions to GDP. 
4.2.  Notwithstanding certain increases in cultiv ated area and livestock headcount, productivity 
indicators, such as average crop, milk, egg, and meat yields, remained almost unchanged and in 
some cases deteriorated. Land fragmentation continues to seriously limit the scope for economies 
of scale, thus discouraging investment in mechanisation.
1 Despite some legislative loosening2, 
agricultural land ownership and trading remain restricted to Kyrgyz citizens residing in rural 
communities and (since 2009) Kyrgyz cooperatives and legal entities growing and/or processing 
agricultural products. Credit institutions that have come into possession of such land through claims on collateral must dispose of it within three years.
3 Other factors that continue to hamper 
productivity improvements include: a degraded an d still inefficiently managed irrigation system; 
limited access to quality seeds; shortcomings in the allocation and monitoring of pasture rights; 
and a dysfunctional veterinary service.  
Chart 4.1 Agricultural output by main category, 2007-11 
(US$ million) 
 
(0.6) (0.6) (0.7) (0.7) (0.6)(0.01)(0.01) (0.01)(0.02)(0.02)(0.1)(0.1)(0.1) (0.1)(0.02)
(1.0)(0.8)
(1.3)(1.1)(0.8)
(0.1)(0.4)
(0.02)(0.1)(0.1)
(0.8)(0.8)
(0.8)(0.5)(0.5)
(0.5)(0.4)
(0.5) (0.6)(0.5)
05001,0001,5002,0002,5003,0003,500
2007 2008 2009 2010 2011Cereals & pulses
VegetablesPotatoes
Fruit  & berries
Livestock & poultry
Unprocessed milk
Other agriculture
 
Note: Figures in parentheses indicate State-contro lled producers' output share in each category. 
Source: National Statistics Committee of the Kyrgyz Republic.  
                                               
1 The authorities estimate that post-independence privatization resulted in over 300,000 smallholder 
farmers with an average plot size of 2.7 hectares; farms of less than 10 hectares a ccount for 41% of cultivated 
land. Some 4.7% of all arable land, including 16% of irrigated arable land, remains in a State Farmland Fund (formerly, the Land Reallocation Fund) and may be  leased out to farmers and business entities.  
2 Law No. 174 of 26 May 2009 and Law No. 50 of 14 May 2012. 
3 Between 2006 and 2012, Kyrgyz citizens wishing to acquire agricultural land had to have resided 
(permanently) in a rural community for at least two years;  the time-frame for credit institutions' disposal of 
such land was one year. Even stricter limitations were in place prior to 2006. WT/TPR/S/288 • Kyrgyz Republic 
 
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  4.3.  In 2011, agriculture employed 30.7% of  Kyrgyz workers, down from 34.5% in 2006; 
agriculture workers earned about one half of the national average salary. Domestic market 
fragmentation, largely as a result of poor in frastructure, and underdeveloped trading platforms 
tend to squeeze producers' profit margins. 
4.4.  The Kyrgyz Republic remains a net food importer; its agricultural trade deficit increased 
during the review period, driven mainly by import s of processed foods. A number of agricultural 
imports, including wheat, flour, vegetable oil, and sugar, are essentially supplied by or transit 
through Kazakhstan. The dependence on a single trading partner partly reflects the configuration 
of transport routes, particularly railroads, which were built at a time when current national borders barely mattered. 
4.1.2  Border measures 
4.5.  Agriculture and food processing continue to receive the highest levels of import tariff 
protection; non- ad valorem  tariffs and import quotas apply exclusively to alcoholic beverages 
(Chapter 3). Other agriculture subsectors that are protected by MFN tariffs relatively higher than 
the sectoral average include: animals and animal products; dairy products; and fruit, vegetables 
and plants. Some agricultural products may occasionally be subject to export taxes or bans, motivated largely by domestic market shortages (Chapter 3).  
4.1.3  Domestic measures 
4.6.  Domestic support to the agriculture sector takes various forms, including: subsidized credit; 
machinery leasing facilities; procurement and direct market intervention by the State; veterinary, sanitary, and phytosanitary services; and tax and tariff concessions.
4 Measures aimed at ensuring 
food security and self-sufficiency, a priority matter following a 2007-08 food crisis, include: 
production grants; price controls and guarantees; and reserve stock maintenance.5 According to 
the authorities, actual support to the sector has been modest; given the prolonged political 
instability, which has also been conducive to corrupt practices, a number of support initiatives 
have been short-lived. Precise figures on domestic support to the agriculture sector, as well as estimates of forgone tax revenue, were not available.
6 
4.7.  A 2011 World Bank report notes that budgetary outlays have been channelled mainly into 
irrigation and animal health, but have failed to address the root causes of poor service delivery.7 It 
questions the rationale for subsidizing the cost of irrigation8, while major system rehabilitation 
needs and inefficiencies in the management of water resources have continued to receive little 
attention. The report further notes that in 2007 Ky rgyz veterinary services failed to meet OIE 
standards in most critical areas, including infrastructure, staffing, education, epidemiological surveillance and diagnosis, and di sease control and eradication.  
4.8.  The state-owned Kyrgyz Agro Food Corporation (AFC), established in July 2008, acts as an 
implementing agency of the Minist ry in charge of Agriculture for the purpose of ensuring food 
security and "stable functioning" of the Kyrgyz f ood market. On the Ministry's instructions, the AFC 
may: intervene in the domestic agricultural produce market; provide farming and output 
marketing support, including advance payments and futures contracts; stimulate arable land utilization, seed farming, and livestock breeding;  develop food market infrastructure and ensure 
the regulatory framework's integrity; mobilize financial resources and ensure their cost effective 
use in support of producers and processing ente rprises; conduct foreign trade operations; and 
promote the creation and growth of agricultural firms and cooperatives.
9  
                                               
4 Law on Agriculture Development No. 166 of 26 May 2009. 
5 Law on Food Security No. 183 of 4 August 2008. 
6 According to the authorities, total loans to the agriculture sector amounted to som 13.3 billion in 2012, 
against som 16.5 billion in 2011; interest rates ranged between 13% and 34%. 
7 World Bank (2011).  
8 The price of irrigation water delivered from the stat e water supply system to water- user associations 
(WUAs) and, in some cases, directly to end-users is set by Government Resolution; it remains well below the 
level needed for the state system's maintenance. WUAs  freely set their tariffs for onward water delivery. 
9 Government Resolution No. 417 of 31 July 2008. WT/TPR/S/288 • Kyrgyz Republic 
 
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  4.9.  In November 2008, the AFC received som 400 million (including 10 million for its 
capitalization) from the state budget, in the form o f  a  l o a n  w i t h  a n  i n t e r e s t  r a t e  o f  3 %  a n d  a  
maturity period of 1.5 years. It has struggled to operate on a self-sustaining basis and as of 
March 2013 owed som 469.47 million in overdue pa yments on its loan. AFC expenditures during 
2008-13 totalled som 1,107.7 million and included: acquisition of imported and domestically 
produced wheat10, and oversight of its processing and marketing for the purpose of stabilizing flour 
prices; importation of fertilizers and foodstuffs; and installation of potato processing facilities for a 
Kyrgyz-Indian joint venture.11  
4.10.  At end-2006, the state-owned Kyrgyz Agricultural Finance Company (KAFC)12 was 
transformed into Aiyl Bank, whose mission was to extend credit (in local currency only) exclusively to the agriculture sector. Aiyl Bank remains fully state-owned. As from November 2009, the bank 
was authorized to lend in foreign currencies, to allocate up to 30% of its loan portfolio to non-
agricultural activities, and to accept deposits of up to 25% of its capital. Concessional credit lines from the state budget and international donors account for most of Aiyl Bank's funding, which 
enables it to extend loans on very competitive te rms (both interest rates and time frames) on the 
domestic market.  
4.11.  The Kyrgyz Government has also extended concessional credit lines for onward lending to 
the agriculture sector to the Financial Company for Support and Development of Credit Unions, 
RSK Bank (section 4.5.1.1), Bakai Bank, Bank “K yrgyzstan”, and Kyrgyz Investment and Credit 
Bank. Government funding channelled to farmers through RSK Bank triggered a rapid expansion of the bank's balance sheet from end 2010.
13 Subsidized credit facilities targeting the agriculture 
sector have also been made available by the St ate Economic Development Fund under the Ministry 
of Finance and by the National Bank of the Kyrgyz Republic. In addition, the Ministry of Agriculture 
and Land Reclamation has been procuring agricult ural inputs (seeds) for distribution to the 
country's regions in the form of commodity credits. 
4.12.  Producers and processors of foodstuffs ar e exempt from sales, income, and profit taxes14. 
As from 2009, agricultural production and its proc essing by the producer are exempted from VAT; 
in September 2012 the exemption was extended to all entities processing domestically-produced 
agricultural commodities for a six-year period. VAT exemptions also continue to apply to: agricultural machinery (leased or domestically produced); mineral fertilizers; medicines and vaccines for animals; and imports of livestock and seeds. 
4.13.  In 2009, the Kyrgyz Republic established a voluntary crop insurance scheme, under which 
50% of the cost of insurance premiums is subsidized from the state budget; participating insurers must transfer 5% of received crop insurance premiums to a national agriculture insurance reserve.  
4.2  Mining 
4.14.  The Kyrgyz Republic is endowed with cons iderable subsoil resources (Table 4.1), but their 
economic potential remains largely untapped.
15 Mining and quarrying activities accounted for less 
than 1% of GDP throughout the review period, although this figure excludes ore processing, which, 
statistically, is recorded as manufacturing (Chapter 1). Refined gold accounts for a significant share of Kyrgyz exports, representing some 50% in 2011 and 33% in 2012. The mining sector's 
contributions to export revenue and GDP continue to be essentially attributable to the Kumtor gold 
mine and fluctuate in line with its performance; technical and social issues caused a decline in its 
output in 2012. 
                                               
10 Some domestically produced wheat has been acqu ired at above-market prices (Government Order 
No. 495 of 4 September 2009). 
11 Government Orders No. 90 of 31 March 2011 and No. 571 of 30 December 2011. 
12 Originally established in 1997, the KAFC accounted for over 61% of all credit to agriculture at end-
2005. 
13 International Monetary Fund (2011a). 
14 The producers of food and processed foodstuffs ma y be exempt from tax on profit if 75% of their 
income is derived from agricultural activities. 
15 According to the State Agency for Geology and Mineral Resources, only 29.3% of Kyrgyz gold 
reserves were being exploited as of February 2013. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Table 4.1 Registered mineral reserves, January 2012 and 2013 
(Tonnes) 
 2012 2013 
Gold 448.3 565.8 
Lead 208,289.5 186,761.4 
Wolfram 124,797.0 117,233.2 
Molybdenum 2,523.1 2,523.1 
Antimony 263,968.0 263,968.0 
Mercury 10,538.0 10,511.0 
Beryllium 11,701.0 11,701.0 
Rare earth metals 51,500.0 51,500.0 
Source: State Agency for Geology and Mineral Resources, Kyrgyz Republic. 
4.15.  The Kyrgyz Republic, via the state-owned company Kyrgyzaltyn, participates in the 
production of more than 97% of domestic gold output.16 This is largely due to its participation in 
the Kumtor mine, which accounted for approximately 95% of all domestically produced gold in the 
first half of 2013. In 2009, Kyrgyzaltyn became  the largest shareholder of the Canadian-
incorporated company (Centerra Gold) responsible for the Kumtor deposit's commercial 
exploitation, having raised its shareholding from 15.7% to 33%. Kyrgyzaltyn is a partner, on a 
40% basis, in two additional joint ventures preparing to launch gold mining operations in the Kyrgyz Republic; it also has full prospecting righ ts for three other gold deposits. The State also 
participates in several non-gold mining operations, including the Khaidarkansky mercury mine 
(100%). 
4.16.  Kyrgyz policy on the use of subsoil resour ces is formulated by the Ministry of Economy. 
Certain aspects require Government approval, incl uding strategies for the development of sites 
and deposits, and implementing regulations. Impl ementation is by the State Agency for Geology 
and Mineral Resources (SAGMR), acting, inter alia,  as the authority in charge of licensing and 
work-plan approval. Discovered deposits must be registered with the State Commission on Mineral 
Reserves (GKZ), which is responsible for confir ming reserve estimates. In addition, the State 
Inspectorate for Ecological and Technical Safety monitors compliance with industrial safety and environmental regulations, while the State Agen cy for Environmental Protection and Forestry 
conducts environmental impact evaluations.  
4.17.  The legal framework governing Kyrgyz su bsoil underwent six alterations during 2006-12, 
the most recent was the entry into force of th e Law on Subsoil Resources on 17 September 2012; 
a draft amendment to the Law was published for public consultations in March 2013.
17 Another 
amendment, debated in April 2012 but eventua lly scrapped, contemplated a 20% ownership 
transfer to the State for some private mining projects.18 In addition, a parliamentary decree, 
adopted in February 2013, mandated the Kyrgyz Government to renegotiate the 2009 project 
agreements, which set out a special regime for the Kumtor gold mine.19 Mining operations at 
Kumtor have also been subject to fines for alleged past environmental damages, in (apparent) contradiction with the terms of the 2009 agreements. These developments, coupled with non-transparent licensing practices (see below), point to a rather uncertain legal framework, which 
continues to discourage private investment.
20  
4.18.  Kyrgyz legislation prohibits any discrimination on grounds of nationality or country-of-
incorporation in the granting of rights for the use of subsoil resources.21 Rights are awarded 
through licences for: geological research (up to 5 years), prospecting of deposits (up to 10 years), 
and exploitation (up to 20 years); all licences are renewable.22 There are no statutory limits on 
surface area for which a licence may be obtained. Licence holders must notify planned sales of 
                                               
16 Kyrgyzaltyn online information. Vi ewed at: http://www.kyrgyzaltyn.kg. 
17 Law on Subsoil Resources No. 160 of 9 August 2012. 
18 EBRD (2012b) 
19 Recommendations for the negotiations include alig ning eliminating the Kumtor-specific tax regime. 
20 Blockades by local residents demanding a fairer sh are of their regions' weal th are commonplace, and 
undermine the attractiveness of investment in mining projects. 
21 Government Resolution No. 410 of 25 June 2009. 
22 An exploitation licence may only be issued afte r confirmation of estimate d reserves by the GKZ. WT/TPR/S/288 • Kyrgyz Republic 
 
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  precious metals and stones, including those purifi ed abroad, to the National Bank of the Kyrgyz 
Republic and offer it a priority right to purc hase the full quantity or a portion thereof.23  
4.19.  The principal methods of awarding licences are: invitation to tender, open-bid auction, and 
direct negotiation (for small deposits).24 Subsoil rights may also be obtained as part of a 
concession or a production-sharing agreement; in these cases, no licence is required. The Kyrgyz 
Government establishes the list of sites subject to tendering procedures25, whereas the SAGMR 
elaborates the list of sites (mainly at the prospecting and exploitation stages) to be to be put up 
for auction. Direct negotiation is admissible for prospecting sites and deposits that have not been 
included in the Government's list of sites having nation-wide importance and for those that have had two unsuccessful auction attempts. However, an auction must be carried out whenever two or more expressions of interest for the same site are received within 30 days.  
4.20.  During 2006-12, the SAGMR issued 1,965 licences for activities related to metallic and non-
metallic minerals, oil, gas, coal, and subsoil wa ter; 2,147 licences were cancelled over the same 
period. At end 2012, there were 131 exploration, 203 prospecting, and 631 exploitation licences in 
force. Licenced exploration activities are primarily focused on gold, whereas commercial 
exploitation licences are mainly in the non-metallic minerals, coal, and subsoil water categories; there are some 45 valid licences for the exploitation of gold deposits. The processing of 
applications for the issuing of licences, the appr oval of work plans, and the confirmation of 
estimated reserves remains prone to significant delays, which could be particularly disruptive in light of the relatively short field-work season (4-6 months); application backlogs also facilitate corruption practices. 
4.21.  Kyrgyz legislation does not stipulate any restrictions on the processing and 
commercialization, including exportation, of subsoi l resources by the holders of valid exploitation 
licences. According to the authorities, the exportation and importation of precious metals require 
specific licences, which are granted by the Ministry of Economy in consultation with the Ministry of 
Finance. New legislation is being drafted in this area. Pursuant to the Kumtor project agreements, the mine's entire output ("dore" alloy containing about 80% gold) is purchased and refined by 
Kyrgyzaltyn
26; decisions on the refined gold's commercialization are made solely by the state-
owned company. Kyrgyzaltyn and its affiliates are considered natural monopolies on the gold 
market and are included in the State Registry of National and Permitted Monopolies, maintained by 
the State Agency of Antimonopoly Regulation. 
4.22.  The licences conferring rights to Kyrgyz subsoil require payment of annual fees, which vary 
depending on the type of licence, the size of the surface area, and the specified subsoil resource.27 
In addition, the granting of all licences is subject to a one-time bonus payment, which is set by the 
Kyrgyz Government depending on the deposit type and either the estimated reserves (as 
confirmed by the GKZ) or the surfac e area (for exploration licences).28 The holders of prospecting 
and exploitation rights must make regular payments  (royalties), generally set at 3% of proceeds 
(less VAT and sales tax) received from the sale of minerals or products resulting from the 
processing of minerals.29 Different royalty rates apply in some cases: gold, silver, and platinum- 
1% to 5%, depending on the deposit's estimate d reserves; lignite coal-1%; gypsum-6%; and 
natural stones for covering-12%. In addition, mining activities are subject to the standard 
company income tax, sales tax, property tax, land  tax, and social security contributions. Export 
taxes may be levied on certain subsoil resources sold abroad (section 3.2.2). 
4.23.  As from January 2013, instead of the standard rate, income tax on the extraction and sale 
of gold is levied on a progressive basis; the applicable rate has 14 bands and increases with the 
price for a troy ounce of gold, starting from 1% for prices in the US$1,201-1,300 range and 
                                               
23 Law on Subsoil Resources No. 160 of 9 August 2012 (Article 22). 
24 The licences are non-transferable; their use as collateral must be notified to SAGMR. 
25 Whenever there are foreign bidders, th e selection of offers may be based, inter alia , on the share of 
Kyrgyz nationals in total staff (Article 24 3 6). Accord ing to the authorities, no tendering procedures have 
taken place to date. 
26 The purchase is based on the price of  gold on the London bullion market. 
27 Decree of the Government of the Kyrgyz Republic No. 12 of 12 January 2013. 
28 The bonus is also payable in the event of sharehol ding changes of at least 10% at the licence-holding 
entity. 
29 The royalty for subsoil water is a specific fee per volume extracted; the fee varies depending on the 
type of water and its intended use. WT/TPR/S/288 • Kyrgyz Republic 
 
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  reaching 20% for prices above US$2,500.30 The tax base is either the revenue received from the 
sale of gold alloy and refined gold or the value of gold in ore and concentrates, calculated on the basis of world prices according to a procedure defined by the Kyrgyz Government.
31 The supply of 
gold and silver alloys, and refined gold and silv er is VAT-exempt; no VAT refunds may be claimed 
on inputs used in the process.  
4.24.  Pursuant to a special tax regime negotiated in 2009, the operator of the Kumtor gold mine 
is subject to a 13% tax on gross revenue, a contribution (1% of gross revenue) to a fund for the 
development of the district where the mine is  located, and a fixed environmental charge. 
Whenever the sum of all capital and exploratio n expenditures made throughout the accounting 
year is less than 4% of gross revenue, an additional payment, equal to the difference, is to be made to the Kyrgyz Republic. The special tax re gime exempts the operator from all other taxes 
and duties, including withholding taxes and customs duties.
32  
4.3  Energy 4.3.1  General features 
4.25.  During the review period, the Kyrgyz Republic remained a net importer of hydrocarbons and 
a net exporter of electricity (Table 4.2). While it is estimated to have considerable reserves across all energy sources, its hydropower potential clearly stands out as the most significant. 
Table 4.2 Main energy indicators, 2006-12 
 2006 2007  2008  2009  2010 2011 2012  
Electricity (million KWh) 
 Generation 14,523.2 14,830.4 11,789.1 11,083.2 12,062.7 15,158.0 15,166.4 
 Consumption 7,192.2 7,672.7 7,334.0 7,134.5 7,447.3 9,131.8 11,680.1 
 Net exports-imports 2,673.3 2,575.7 766.1 1,199.5 1,711.8 2,673.8 1,508.3 
 Transmission loss  4,661.7 4,583.3 3,690.2 2,758.3 2,914.8 3,389.2 3,204.9 
 Installed capacity (MW) 3,660.0 3,660.0 3,660.0 3,660.0 3,780.0 3,780.0 3,780.0 
Coal (thousand tonnes) 
 Production 321.3 395.6 491.8 606.9 575.0 830.7 1,163.9 
 Consumption 1,257.7 1,310.7 1,741.5 1,703.9 1,592.2 1,826.5 1,923.1 
 Net exports-imports -897.9 -1,024.1 -1,441.0 -1,121.3 -1,100.4 -951.3 -896.6 
Natural gas (million m3) 
 Production 19.4 15.0 17.5 15.4 22.8 26.6 28.5 
 Consumption 660.8 670.4 639.9 254.5 236.5 286.5 363.3 
 Net exports-imports -738.9 -752.2 -727.7 -308.5 -271.7 -305.1 -334.8 
Oil (thousand tonnes) 
 Production 70.9 68.5 71.0 77.3 82.8 89.9 78.9 
 Consumption 83.7 136.8 134.9 79.0 97.1 81.1 91.0 
 Net exports-imports -15.9 -67.1 -73.0 -4.8 -14.8 1.1 -7.4 
Source: Ministry of Energy and In dustry of the Kyrgyz Republic. 
4.26.  Exclusive state ownership of all primary energy resources and a licensing regime for their 
use are stipulated in Kyrgyz legislation.33 The State Department on Fuel and Energy Complex 
Regulation (GAE) issues licences for 19 types of business activities, including: production, 
transmission, distribution and sale of electric en ergy, thermal energy, and natural gas; processing 
of oil and natural gas; construction of power plants, substations and power transmission lines; and 
                                               
30 Law "On introduction of changes and amendments to  the Tax Code of the Kyrgyz Republic" No. 158 of 
9 August 2012. 
31 The standard corporate income tax is levied on the combined sales and non- sales income; the latter 
includes, inter alia , interest income, dividends, ro yalties, forex gains,  lease or rental income, and subsidies. 
32 The Kyrgyz-sourced income of a foreign legal entity  may be subject to withholding tax at source, as 
long as it is not attributable to a permanent establishment of that entity in the Kyrgyz Republic. 
33 Law on Energy, 17 October 1996. Viewed at: http://www.energo.gov.kg/site/index.php?act=view_cat 
&id=3. WT/TPR/S/288 • Kyrgyz Republic 
 
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  electricity export and import.34 Subsoil exploration and extraction of oil, natural gas, and coal are 
subject to licensing by the State Agency for Geology and Mineral Resources (section 4.2). 
4.27.  Foreign legal entities and individuals are awarded licences on the same terms, and pursuant 
to the same procedure, as Kyrgyz legal entities  and individuals. State-owned companies enjoying 
monopoly rights by way of legislative acts have exclusive rights to obtain the relevant licence. 
Apart from a few small electricity distribution companies, all activities in the energy sector are performed by majority State-owned sanctioned monopolies. According to the authorities, the 
licensing regime is aimed at ensuring compliance with established safety and quality requirements. 
4.28.  As from September 2012, the State Agency of Antimonopoly Regulation has the function of 
antimonopoly regulation in the energy sector. It re gulates the tariffs of 36 enterprises active in the 
sector, which have been declared natural monopolies. At the same time, end-user tariffs for 
electric and thermal power are set by governme nt resolution; as from 2012, changes to these 
tariffs require parliamentary approval.
35 
4.3.2  Electricity 
4.29.  Endowed with substantial water resource s, the Kyrgyz Republic ranks third among CIS 
countries in terms of hydroelectric potential. If harnessed properly, these resources could guarantee an ample long-term supply of renewable energy at a relatively low cost. However, at 
3.03 GW, installed hydroelectric capacity is a fraction of the estimated potential (18.5 GW), and 
generated hydro power remains at about 9% of output projections under the full-potential scenario (142 billion kWh).
36 Two thermal power plants in Bishkek and Osh raise the country's total 
installed capacity to 3.78 GW.  
4.30.  Following an unbundling in 2001, the electricity subsector comprises a generation company 
managing almost all installed capacity, a transmission company operating the national grid, and four regional distribution companies. State participation in each of these entities is 93% (including 
13% owned by the national Social Fund); the generation and transmission companies are not to 
be privatized further.
37 In addition, 18 small privately owned companies hold distribution licences; 
they tend to serve some of the most reliable cust omers. The transmission grid operator (National 
Electricity System of Kyrgyzstan) is the sole import er and exporter of electricity by virtue of its de 
facto monopoly on interconnections. 
4.31.  A number of weaknesses seriously undermine the subsector's performance, with negative 
repercussions on the Kyrgyz economy. Reported technical and commercial losses across the entire 
system (generation, transmission, and distributi on) have been in the range of 21% to 32% of 
gross electricity feed throughout the review peri od. By and large, the state-owned companies in 
the subsector remain unable to operate as self-sustaining business entities; their total financial 
loss was som 2.2 billion in 2009 and som 0.57 billion in 2010.38 Unplanned power outages remain 
frequent, as below-cost tariffs fail to ge nerate adequate funding for maintenance.39 The system 
runs on equipment that is mostly worn out and increasingly unreliable; donors and government-to-
government financing are the main sources of funding for infrastructure upgrades.  
4.32.  The legacy of the Soviet model, based on full vertical integration and quasi-irrelevance of 
present-day national borders, continues to pose structural problems that threaten the Kyrgyz electric energy system's performa nce and integrity. Poor strategic planning and a weak regulatory 
framework have exacerbated the problems since independence (Box 4.1). 
                                               
34 Regulation No. 722 of 26 November 2009. 
35 Interim Government  Resolution No. 7 of 20 April 2010. 
36 Eurasian Development Bank (2011b). 
37 Resolution on the Privatization programme of state property for 2008-2012 No. 518 of 17 September 
2008. 
38 Tetra Tech ES Inc. (2011). 
39 Due to inadequate maintenance, actual capacity at the Bishkek thermal power plant is only about 
250 MW, out of the 666 MW installed capacity. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Box 4.1 Key structural weaknesses of the Kyrgyz electrical energy system 
Incomplete national coverage:  Conceived as an intrinsic component of the wider United Energy System of 
Central Asia, the Kyrgyz transmission grid still lacks independent coverage of the national territory; a portion 
of domestically generated electricity must transit th rough neighbouring countries' grids to reach Kyrgyz-
based customers. Since 2009, the Kyrgyz grid operator has been paying its Uzbek counterpart a transit fee, 
which is negotiated annually. 
Output optimization constraints:  Kyrgyz hydropower plants on the Naryn River were originally planned to 
provide irrigation and electr icity to downstream countries in the summer, in exchange for winter deliveries of 
electricity and fuels to the Kyrgyz Republic. Their output optimization strategies must take into account water 
release obligations under seasonal irrigation agreements  and transmission constraints imposed by transit via 
foreign grids. According to the authorities, since 2010 the only agreement to that effect is a bilateral one with 
Kazakhstan; unlike past practice, it is not a barter agreement. 
Poor accounting for energy flows:  Technical and commercial losses are difficult to trace and practically 
undistinguishable, due to inadequate metering; cust omers cannot be identified with feeders. The non-
transparent settlement of wholesale and retail electricit y transactions, coupled with high tolerance of data 
errors, leaves much room for misrepor ting across the entire system. Allowing the entry of small distribution 
companies in this non-transparent environment may have  contributed to non-technical losses and corruption. 
A recommendation to establish an independent wholesale settlement centre, dating back to 2009, remains 
topical. 
Source: Tetra Tech ES Inc. (2011), Management Diagnostic of JSC Po wer Plants, Report on Phase 1: 
Preliminary Findings and Recommendations . Viewed at: 
http://www.energo.gov.kg/site/images/documents/123.pdf.  
4.33.  In 2008, electricity was reclassified as "a commodity of a special type" with a view to 
subjecting electricity theft to criminal sanctions.40 Since 2011, licences (essentially an 
unconditional authorization to do business) have  been complemented by performance agreements 
which may set out specific obligations, requirements, and conditions. Performance agreements 
have been signed with the state-owned companies in the electricity subsector, while negotiations 
with the private distribution companies are still under way.  
4.3.3  Hydrocarbons 
4.34.  Predominantly imported, oil and gas are estimated to account for more than half of the 
Kyrgyz Republic's primary energy needs (around 40% and 18%, respectively in 2009).41 Imports 
from the Russian Federation, including those under a quota exempt from Russian export tax 
(1.1 million tonnes/year), satisfy around 85% of Kyrgyz demand for petroleum products, while the 
rest is supplied mainly by Kazakhstan. All imported natural gas is supplied by Uzbekistan. New oil and gas discoveries in the Kyrgyz Republic we re announced in 2011, but remain unconfirmed. 
Commercial exploitation of the country's considerable (confirmed) coal deposits remains limited, 
partly due to an incompatibility with existing thermal power plants. 
4.35.  The majority state-owned Kyrgyzneftegas (KNG) is а major player in petroleum and natural 
gas exploration, extraction and processing, as we ll as in the transport, storage, and sale of 
petroleum products (section 3.3.5). It owns most prospecting boreholes and active wells for crude oil and natural gas in the Kyrgyz Republic; during  2006-12, it was the sole holder of the relevant 
production licences. In September 2012, KNG bought out its 50% joint-venture partner and took 
full ownership of the only operational oil refinery in the Kyrgyz Republic.
42 KNG's monopoly 
position is being challenged by the Chinese-owned company Batkenneftegaz in oil extraction (restoration of old wells) and, eventually, exploratio n, as well as by the future entry into operation 
of two Chinese-owned oil refineries. Although the authorities confirm its de facto  monopoly status 
in several market segments, KNG has not been included in the State Registry of National and Permitted Monopolies. State-linked companies' presence on the retail market for petroleum 
                                               
40 Law on Amendments to the Law on Energy of 30 May 2008. Viewed at: 
http://www.energo.gov.kg/site/index.php?act=view_material&id=46. 
41 International Energy Agency online information. Viewed at: 
http://www.iea.org/stats/ pdf_graphs/KGTPESPI.pdf. 
42 The refinery has been operating at about 25% of its capacity (500,000 tonnes of crude oil per year). 
Evening Bishkek online information [in Russian only]. Viewed at: http://www.vb.kg/doc/203080_gosydarstvo_beret_pod_polnyy_kontrol_dobychy_i_pererabotky_nefti.html. WT/TPR/S/288 • Kyrgyz Republic 
 
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  products is allegedly minimal. Gasoline, diesel fuel, liquefied petroleum gas, aviation fuel 
(wholesale), and fuelling stations are supplied by permitted monopolies.43  
4.36.  Another majority state-owned company,  Kyrgyzgas, owns the infrastructure for 
transmission and distribution of natural gas; it operates the southern gas transmission pipelines, 
whereas the northern line, linking the capitals of Uzbekistan and Kazakhstan, is managed by a 
joint venture (KyrKazGaz) formed with Kazakhstan's state-owned KazTransGaz.44 Kyrgyzgas is 
deemed a natural monopoly in the distribution  and sale of natural gas, and KyrKazGaz in 
transportation of natural gas. According to the auth orities, an ongoing consolidation will eventually 
result in the transfer of KyrKazGaz infrastructure to Kyrgyzgas. 
4.37.  Kyrgyz legislation gives the State a priority  right to purchase petroleum and natural gas, as 
well as any processed products thereof, produced on Kyrgyz territory.45 To this end, licence 
holders must notify planned sales, including ex ports, one month in advance. According to the 
authorities, this right has not been exercised during the review period. 
4.38.  Some 120 coal pits and mines are operational in the Kyrgyz Republic. Although coal 
production nearly quadrupled in 2006-12, import s remained at approximately one million tonnes 
(some 52% of domestic consumption in 2012), mainly because Kyrgyz thermal power plants have been designed to operate with higher-grade coal. Kazakhstan is the Kyrgyz Republic's main 
supplier, accounting for more than 90% of total coal imports. The subsector's main challenges 
include lack of funding to replace obsolete equipment and the country's poor transportation infrastructure. 
4.39.  In August 2012, state-owned coal companies Komur and Kara-keche were consolidated in a 
single enterprise, Kyrgyzkomur, with a view  to optimizing administrative expenses.
46 Kyrgyzkomur 
is responsible for promoting and implementing the Government's policy on coal mining, notably for 
ensuring adequate supply to the Kyrgyz popula tion, state-funded organizations, and fuel and 
energy enterprises. To this end, it is intended to act as an umbrella entity assisting private coal 
production companies to form consortia for participation in large public procurement tenders. According to the authorities, Kyrgyzkomur has no ex clusive rights on the importation, exportation, 
or marketing of coal; no licence is required for do mestic coal sales. State support to coal mining 
enterprises was allegedly terminated in 2005, upon completion of the Programme for Coal Industry Development. 
4.4  Manufacturing 
4.40.  Manufacturing output more than doub led in nominal terms between 2006 and 2012 
(Chart 4.2), largely driven by growth in gold processing operations and international gold prices.
47 
Production in most non-metal subsectors also expanded, although the global economic slowdown 
caused a general contraction of nearly 10% in 2009; a broad-based return to pre-crisis output 
levels was achieved by 2011. The Kyrgyz Republic remains a net importer of manufactures, mainly due to the sustained dynamism in imports of ma chinery and transport equipment, chemicals, and 
other semi-manufactures. 
4.41.  Gold processing, essentially smelting and re fining related to the exploitation of the Kumtor 
gold mine (section 4.2), dominated manufacturing activity throughout the review period. State participation in gold mining and smelting operations remains significant, although no exclusive 
rights are reserved through statutory provisions. Notwithstanding its relatively modest contribution 
to the sector's total output, the textiles and clothing subsector accounted for more than half of manufacturing employment in 2011, followed by food, beverages, and tobacco.  
                                               
43 State Agency of Antimonopoly Regula tion online information. Viewed at: 
http://www.antimonopolia.kg/in dex.php/reestry/monopolisty. 
44 Kyrgyzgas online information. Viewed  at: http://www.kyrgyzgaz.kg/content/5. 
45 Law on Oil and Gas No.19 of 9 March 2004. Viewed at: 
http://www.energo.gov.kg/site/index.php?act=view_material&id=23. 
46 Government Resolution No. 360 of 2 June 2012. 
47 National Statistics Committee of the Kyrg yz Republic online information. Viewed at: 
http://stat.kg/index.php?option=com_content&task=view&id=93&Itemid=141.  WT/TPR/S/288 • Kyrgyz Republic 
 
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  Chart 4.2 Structure of manufac turing production, 2006 and 2012 
% 
 
Source: National Statistics Committee of the Kyrgyz Republic. 
4.42.  Kyrgyz manufacturing has considerable potential for growth and diversification through 
better utilization of available resources and strong er linkages with other sectors of the economy, 
particularly agriculture and mining. However, realization of that potential has been severely 
hindered by prolonged political instability, which has discouraged investment. As a result, most 
industries continue to face international competitiveness challenges due to, inter alia , outdated 
production processes, limited access to financing, and working capital eroded by inflation. Capacity 
utilization remains very low (except in meat processing) and further decreased in several 
subsectors during the review period (Chart 4.3).  
Chart 4.3 Capacity utilizatio n in manufacturing, 2006 and 2010 
% 
 
Source: National Statistics Committee of the Kyrgyz Republic. WT/TPR/S/288 • Kyrgyz Republic 
 
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  4.43.  During the review period, the Kyrgyz Repub lic made no significant changes to its MFN tariffs 
on imported manufactured goods. Clothing, textil es, and transport equipment have continued to 
enjoy some of the highest tariff protection levels (section 3.1.4). At the same time, the simplified customs regime for physical persons has continued to facilitate the importation of essential 
manufacturing inputs, although the list of eligible  goods has been shortened and re-focused on the 
textile industry (section 3.1.4.2). 
4.44.  Domestic support to the manufacturing sector remains rather limited. Food producing and 
processing enterprises are eligible for VAT rebates and profit tax exemptions, without any 
conditions on the use of local inputs, labour, or services. A special taxation regime (voluntary patent system) is applied to physical persons active in a limited number of light manufacturing subsectors.
48 The Kyrgyz public procurement legislation does not contain any provisions granting 
preference margins to local manufacturers.  
4.5  Services 4.5.1  Financial services 
4.45.  On account of its underdeveloped state, notably the shallow securities market, the Kyrgyz 
financial system continues to impede domestic economic growth. The post-2008 global economic downturn, coupled with domestic socio-political upheaval throughout most of 2010, significantly 
dented the sector's profitability and exposed a number of systemic weaknesses. International 
development partners remain the principal source  of concessional funding for domestic credit 
expansion. The financial sector is still subject to considerable government involvement, through ownership and targeted credit lines, which may compromise the level playing field or motivate 
political interference. 
4.46.  Banks continue to dominate the financial system, accounting for 79.9% of total assets in 
2012 (down from 88.8% in 2006). Most remaining financial sector assets, 18.8% of the total in 
2012, are held by non-bank financial and credit institutions (NBFCIs), which remain an important 
source of credit for small and medium-sized firms and rural borrowers. Financial intermediation, as reflected by the ratio of the overall credit portfo lio to GDP, remains modest, although it increased 
from 13.3% in 2006 to 18.2% in 2012 (Table 4.3).  
Table 4.3 Selected financial system indicators, 2006-12 
(Som million and %) 
 2006  2007  2008  2009  2010 2011 2012  
Total financial system assets, of which 32,274.8  45,598.8  64,346.8  80,230.8  71,790.7 84,826.4 108,579.4  
 Banks  28,659.8  39,672.0  55,168.5  67,983.3  57,932.8 66,752.9 86,738.8  
  Majority state-owned banks  3,252.3  3,680.1  5,475.1  5,529.7  11,769.3 14,692.8 15,869.3  
 NBFCIs 3,367.0  5,501.7  8,617.4  11,365.6  12,897.3 16,997.4 20,440.4  
 Insurance companies 236.7  412.4  547.6  865.5  942.3 1,054.9 1,376.5  
 Pension funds 11.3 12.7 13.3 16.4 18.3 21.2 23.7 
Credits, of which 15,106.5  24,027.1  31,606.0  32,286.2  35,587.8 44,320.2 55,399.1  
 Banks 12,695.0  19,949.2  25,607.0  25,117.0  26,310.8 31,136.3 39,993.6  
  Majority state-owned banks  2,071.7  2,411.4  3,117.7  3,252.0  4,997.2 6,094.4 6,884.0  
 NBFCIs 2,411.5  4,077.9  5,999.0  7,169.2  9,277.0 13,183.9 15,405.5  
Non-performing loans (%) 11.1  12.6 15.4 13.0 21.2 14.2 11.5  
 Banks 6.2 3.5 5.7 8.2 15.8 10.2 7.2 
 NBFCIs 4.9  9.1 9.7 4.8 5.4 4.0 4.3  
Deposits, of which 13,010.7  16,473.8  22,843.2  28,191.2  27,633.1 36,963.9 43,330.7  
 Banks 13,010.6  16,468.2  22,825.0  28,156.8  27,598.1 36,928.4 43,279.4  
  State-owned banks 704.4  906.7  1,100.0  1,409.6  3,614.8 5,673.9 6,823.7  
 NBFCIs 0.1  5.6 18.2 34.4 35.0 35.5 51.3  
Source: Data from the National Bank of the Kyrgyz  Republic and State Service for Regulation, and 
Supervision of the Financial Market of the Kyrgyz Republic. 
                                               
48 Government Resolution No. 733 of 30 December 2008. WT/TPR/S/288 • Kyrgyz Republic 
 
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  4.47.  Most loans remain short to medium-term, with bank lending concentrated mainly in 
wholesale and retail trade and NBFCI loans focused mostly on agriculture activities. Interest rate spreads remain high, and foreign-currency lending continues to dominate bank credit
49, with a 
53.7% share in December 2012. Liquidity in the Kyrgyz financial system also remains elevated; 
banks' liquid assets covered 80% of short-term liabilities at end 2012, against a regulatory 
minimum of 30%.50 By and large, the system's characteristics suggest persistent uncertainty 
about the socio-political environment and weak competition. 
4.5.1.1  Banking  
4.48.  The banking segment in the Kyrgyz Repub lic remains fairly concentrated, with the four 
largest banks accounting for 81.7% of the market.51 At end-April 2013 there were 23 active 
commercial banks, of which 10 were majority foreign-owned and another 4 had minority foreign 
participation. Three representative offices of foreign banks were also active in this segment.52 
State-owned banks continue to dominate, particularly following some bank exits53 and the 
nationalization of Asia Universal Bank (AUB)54 in the aftermath of the 2010 socio-political turmoil. 
In 2012, foreign equity accounted for 36.5% of total charter capital in the banking system.  
4.49.  The National Bank of the Kyrgyz Repub lic (NBKR) remains in charge of bank licensing55 and 
prudential supervision; in principle, relevant requ irements continue to apply uniformly to foreign, 
domestic, and state-owned banks. The NBKR also continues to have authority over the 
enforcement of antimonopoly legislation with regard to the financial institutions it regulates. However, its independence may still be undermined by political pressure, inconsistencies in the legal framework, and personal liability of NBKR st aff for actions warranted in the execution of their 
official duties.
56 The authorities are drafting a new Banking Code, aimed at comprehensively 
addressing current weaknesses in the legal framework governing the financial sector.  
4.50.  Foreign banks may enter the Kyrgyz market by establishing either a subsidiary or a joint 
venture, with no foreign  equity caps. No economic needs tests are applied.57 During the review 
period, the Kyrgyz Republic strengthened deposit protection by requiring all banks with domestic operations to contribute 0.2% of their deposit portfolios to a Deposits Protection Fund 
administered by the State Agency on Deposits Protection, a non-commercial entity.
58 Prudential 
regulation of the Kyrgyz banking system is still based on Basel I and, partially, Basel II norms; 
capital adequacy and liquidity requirements remain unchanged. According to the NBKR, the 
commercial banks under its supervision are not yet ready to implement Basel III norms. 
4.51.  Two state-owned banks, Aiyl Bank and RSK Bank59, have been significantly expanding their 
lending operations, at subsidized interest rates, on account of channelling concessional government funding in support of agriculture development (section 4.1.3). Budgetary outlays 
(som 1.1 billion in 2008-11) have also been used to increase the capital base of RSK Bank with a 
view to expanding its lending activities, particularly  in support of SMEs and of regions that suffered 
damage in the 2010 internal conflict. In addition , the authorities are working on establishing a 
                                               
49 NBFCIs are not allowed to lend in foreign currency. 
50 NBKR online information [in Russian]. Viewed at: 
http://www.nbkr.kg/index1.jsp?item=1481&lang=RUS. 
51 The overall market share is computed as a simp le average of market shares across total assets, 
loans, deposits, and liabilities. (NBKR, 2012). 
52 NBKR online information [in Russian]. Viewed at: 
http://www.nbkr.kg/index1.jsp?item=69&lang=RUS. 
53 In April 2013, seven banks were in liqu idation and two had licences revoked. 
54 Irregular activities at AUB, a major market player, led to its insolvency and nationalization in 
June 2010; its assets were split into good and bad banks, with the former forming Zalkar Bank in December 2010. As of June 2013, the authorities were contemplating a fifth attempt at privatizing Zalkar Bank. 
55 Among the 23 active banks, 3 are subject to restrictions on foreig n currency operations and another 3 
face restrictions on both foreign and domest ic currency operations. 
56 International Monetary Fund (2011b). 
57 NBKR approval is still required for investments ex ceeding 10% of a bank's equity or voting stock. 
58 The guaranteed threshold was raised from som 20,000 to som 100,000 per deposit (Law on 
Protection of Bank Deposits No. 139 of 29 April 2009). 
59 The state-owned Settlement and Savings Company was converted into RSK Bank, which has operated 
as a universal commercial bank since 2008. WT/TPR/S/288 • Kyrgyz Republic 
 
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  State Development Bank (SDB) with a vi ew to stimulating the development of, inter alia , 
affordable mortgage lending, leasing for agriculture, and lending to farmers and entrepreneurs.  
4.5.1.2  Non-bank financial and credit institutions 4.52.  As at June 2013, the NBFCIs under NBKR supervision comprised: 306 microfinance 
organizations (MFOs)
60, 170 credit unions (of which 12 deposit-taking), the Financial Company for 
Support and Development of Credit Unions (FCSDCU)61, and 320 exchange bureaus. MFOs 
continue to dominate the segment, accounting for some 91.3% of NBFCI lending and 92.3% of 
NBFCI assets; their client base has also been ex panding, whereas that of credit unions has been 
declining. Market concentration remains elevated, with the six largest MFOs accounting for 71.6% of total NBFCI lending.  
4.53.  MFOs and credit unions without deposit-taking  activities remain subject to simplified (non-
prudential) supervision. Prudential supervisory re quirements, similar to those for banks, apply to 
deposit-taking MFOs and credit unions, as well as to credit unions financed by the FCSDCU.
62 
During 2006-12, the legal framework for regulation  and supervision of MFOs and credit unions 
underwent various amendments relating to: licensing; prudential and reporting requirements; 
asset classification; credit risk management; external audit; transactions with insiders and affiliates of deposit-taking MFOs; acceptance of  deposits and property mortgages; and Islamic 
finance transactions.  
4.54.  The lending operations of MFOs and credit unions remain predominantly focused on the 
agriculture sector, which absorbed 44.2% and 50% of their respective loan portfolios in 2012. Although exposure to unpredictable weather conditions and the generally low income levels in rural 
communities make agricultural lending a relatively high-risk activity, these institutions have 
maintained high-quality loan portfolios. In June  2013, non-performing (at risk) loans represented 
4% and 3.2% of the respective portfolios of MFOs and credit unions, compared with 6.9% for 
banks.  
4.55.  MFOs remain almost exclusively funded thro ugh credit lines from international donors. Being 
prohibited from lending in foreign currencies, many MFOs had entered into foreign exchange 
arrangements with AUB, whereby they received loans in domestic currency collateralized by their 
foreign exchange deposits. The suspension of AUB op erations as a result of its insolvency in 2010 
triggered liquidity shortages for MFOs, prompting the NBKR to establish a temporary currency swap facility. The socio-political turmoil also caused delays in the delivery of negotiated external 
financing to MFOs.  
4.5.1.3  Securities market 4.56.  The State Service for Regulation and Supe rvision of the Financial Market of the Kyrgyz 
Republic (Gosfinnadzor) regulates and supervises the securities market, insurance companies, 
investment funds, private pension funds, and auditing companies.
63 In principle, foreign companies 
and individuals receive national treatment in li censing requirements and other prerequisites for 
performing professional activities on the securiti es market. There are no restrictions on foreign 
portfolio investment in the Kyrgyz Republic. The Law on stock markets was amended in 2009, with a view to strengthening governance and transparen cy and ensuring compliance with the principles 
of the International Organization of Securities Commissions (IOSCO).  
4.57.  The capital market remains embryonic, with NBKR notes and treasury bills being the main 
securities traded; three investment funds have entered the market since 2005. Bank loans remain 
                                               
60 MFOs include 5 microfinance companies, 228 mi crocredit companies, 73 microcredit agencies.  
61 The FCSDCU is the apex organization of the credit  union system, providing loans to credit unions at 
interest rates in the 10-20% range; it  has been slated for privatization. 
62 Presently, there are no deposit-taking MFOs in the Kyrgyz Republic. 
63 In September 2005, the regulatory functions of the State Securities Market Commission, the State 
Agency for Financial Reporting Standards and Audit, and the Non-banking Sector Development Agency under 
the Ministry of Finance were consol idated into the State Agency on Financial Supervision and Reporting 
(SAFSR). Following two reorganizations, in 2007 and 2009, SAFSR became Gosfinnadzor, governed by the Law on State Service for Regulation and Supervision of the Fi nancial Market of the Kyrgyz Republic of 24 July 2009. WT/TPR/S/288 • Kyrgyz Republic 
 
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  the predominant source of funding for Kyrgyz co mpanies, although two successful corporate bond 
placements in 2012 confirmed investors' interest in such instruments.  
4.58.  In 2010, the Kyrgyz Republic had 3 st ock exchanges, with a combined turnover of 
US$20 million. A sharp decline in trading activity during the global economic downturn, 
exacerbated by the domestic socio-political crisis , triggered the bankruptcy of the Central Asian 
Stock Exchange (CASE) in August 2010. In March 2011, the Kyrgyz Stock Exchange (KSE) merged with its remaining rival, the Stock Exchange of Kyrgyzstan (BTS); the consolidated trading 
platform retained the name Kyrgyz Stock Exchange (KSE).
64 Despite the adoption of a Government 
resolution for state participation, as a shareholder,  in the consolidated KSE, no shares have been 
acquired to date.65 Trade volumes remain low, as a large group of listed companies are still 
majority state-owned, with less than 1% of their shares readily available on the market. Foreign 
participation, historically low, has contracted further in the context of persistent uncertainty about 
the political and business climate.66 
4.5.1.4  Insurance 
4.59.  In January 2013, 16  insurance companies were operating in the Kyrgyz Republic, including 
2 reinsurers and 5 companies with foreign participation; 5 insurers exited and 3 entered the market during 2006-12. Kyrgyz-incorporated insurers offered voluntary insurance for some 
84 risks, while 9 companies had licences to prov ide compulsory insurance. Property insurance 
accounted for 73.3% of total insurance premiums in January 2013; the corresponding figure for compulsory insurance was 9.1%. 
4.60.  Insurance may only be supplied by (closed or open) joint-stock companies; a separate 
licence is required for each type of risk being insured. Insurers must reinsure 80% of insured 
risks; liability on each individual risk in an in surance contract may not exceed 20% of the insurer's 
equity.
67 As from 2009, insurers are no longer obliged to reinsure domestically at least 5% of all 
insured risks. The capital requirements for insurers were raised in November 2010, with thresholds 
somewhat lower for incumbents relative to newly incorporated insurance companies. Insurance companies incorporated abroad may not market their services in the Kyrgyz Republic. 
4.61.  Life, property, and liability insurance are vo luntary; health and life insurance is compulsory 
for military personnel. Four new laws on comp ulsory insurance were passed in 2008 and entered 
into force in 2010; the scope of mandatory insurance was thus extended to: civil liability of carriers of dangerous goods; carriers' civil liability to passengers; employers' civil liability for 
employees' work-related life and health damages;  and civil liability of organizations operating 
hazardous production facilities.
68 A capital base (equity) of at least som 50 million is required for 
provision of mandatory insurance.69 The authorities note that non-respect of these four laws 
remains commonplace, for lack of adequate administrative sanctions. 
4.62.  Insurers are required to maintain technical reserves for potential losses; reserve 
r e q u i r e m e n t s  v a r y  b y  t y p e  o f  i n s u r a n c e .  A t  l e a s t  8 0 %  o f  t e c h n i c a l  r e s e r v e s  m u s t  b e  i n v e s t e d  
domestically and comply with additional rules on their placement.70 For instance, at least 10% of 
technical reserves must be invested in government securities, while a cap of 30% of technical reserves applies to investments in securities (other than government and municipal ones) traded on the Kyrgyz stock market.  
                                               
64 The Kyrgyz Stock Exchange (KSE) was establishe d in 1994 and accounted for almost 80% of total 
turnover in 2010; the corresponding shares for the Stock Exchange of Kyrgyzstan (BTS), dating from 1998, and the Central Asian Stock Exchange (C ASE), founded in 2004, were 15% and 6%. 
65 Government Resolution No. 399 of 18 July 2011. 
66 Nutall (2011). 
67 Government Resolution No. 299 of 25 November 2010. 
68 Laws No. 188 and No. 189 of 4 August 2008, No. 194 of 5 August 2008, and No. 202 of 15 August 
2008. 
69 Until 2010, only insurance companies without foreign participation could provide mandatory health 
and life insurance to military personnel. 
70 Government Resolution No. 3 of 5 January 2011. WT/TPR/S/288 • Kyrgyz Republic 
 
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  4.5.2  Communication services 
4.63.  Virtually all telecommunications equipmen t, whether employed in the deployment of 
networks or by end-users, is imported into the Ky rgyz Republic. The expansion of networks is also 
held back by, inter alia , lack of qualified personnel, difficulties in securing land-owners' consent, 
and the unreliable electricity supply. Despite these challenges, the Kyrgyz telecommunications 
market continued to expand throughout the review period, driven by sustained dynamism in mobile telephony and internet subscriptions (Table 4.4). The total volume of communication 
services grew four-fold in 2006-12, reaching some som 21.1 billion. Nevertheless, fixed-line, 
mobile, and internet penetration indicators remain well below the corresponding CIS averages.
71 
Table 4.4 Communication services , selected indicators, 2006-12 
 2006 2007  2008  2009  2010 2011 2012  
Subscriptions per 100 inhabitants 
 Fixed-line telephony 8.7 9.1 9.2 9.2 9.2 9.0 8.6 
 Mobile telephony 18.6 41.7 63.4 82.8 96.3 113.0 120.0 
 Internet 0.4 0.3 36.2 40.5 51.4 42.8 50.8 
Number of active service providers 
 Fixed-line telephony 42 45 51 45 42 35 24 
 Mobile telephony 5 5 6 9 8 7 7 
 Internet 53 61 65 64 65 78 69 
Number of withdrawn licences 9 19 24 37 0 16 8 
Source: State Communications Agency. 
4.64.  Fixed-line communication services, with separate licences for local, intercity and 
international calls, and internet, are provided  by 15 operators. The majority state-owned 
incumbent, Kyrgyztelecom72, still dominates the segment of fixed-line local telephony; its statutory 
monopoly on intercity and international calls was de facto  eliminated in 2008.73 Mobile 
communication services are offered by seven companies; each operates a separate cellular 
network. Mobile network coverage extends to some 95.7% of the populated territory of the Kyrgyz 
Republic. The top two mobile operators are estimated to have market shares of 45% and 40%, respectively; the State owns 49% of the mobile market leader (MegaCom). Despite the segment's 
rapid growth, internet access is not yet available in all administrative regions of the Kyrgyz 
Republic; most access points (72% of the total) are concentrated in the capital, Bishkek.  
4.65.  The Ministry of Transport and Communications (MTC) remains in charge of 
Telecommunications policy formulation. Following four re-organizations during 2000-06, the 
telecom regulator was reformed once agai n in December 2009 and renamed State 
Communications Agency (SCA).
74 Since 2011, draft SCA regulations require government approval, 
following a regulatory impact analysis.75 The SCA is responsible for: licensing in the area of 
communication; standardization and certification (including import authorization) of 
communications equipment76; radio frequency administration77; supervision of service quality and 
the technical condition of communications equipment; and tariff regulation.78 As from 2010, the 
                                               
71 ITU online information. Viewed at: http://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx. 
72 The State holds 77.84% of Kyrgyztelecom's shares  and another 12.51% are owned by the national 
Social Fund; there have been four unsuccessful privatization attempts. 
73 Although Government Resolution No. 153 ( 20 March 2000) stipulated the elimination of 
Kyrgyztelecom's monopoly rights as from 1 January 2003, implementation was delayed by five years. 
74 Government Resolution No. 758 of 15 December 2009. 
75 Law on Normative Legal Acts No. 23 of 13 May 2011. 
76 In 2012, the SCA issued 1,167 certificates of conformity (227 in 2006) and 1,180 import permits (630 
in 2006). 
77 Spectrum allocation is the responsibility of the State Commission on Radio Frequency, which has not 
yet established a clear separation of fre quencies into military and civil uses. 
78 The SCA levies fees for the issuance of licences, ce rtificates of compliance, and authorizations to use 
radio frequencies. Licensees must also make annual pa yments equal to 1% of their revenue from licensed 
activities. WT/TPR/S/288 • Kyrgyz Republic 
 
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  State Agency of Antimonopoly Regulation has sole competence in resolving competition cases 
related to the telecommunications market; it also gives its opinion on regulated tariffs, which are subsequently established by order of the SCA.  
4.66.  The tariffs of several natural and perm itted monopolies remain subject to regulation 
(Table 4.5). Universal service obligations are not clearly defined in Kyrgyz legislation; no funding is 
set aside, either by the Government or through oper ator contributions, to offset the higher cost of 
serving the country's remote and mountainous area s. According to the authorities, there is a 
statutory requirement that Kyrgyztelecom se rve remote areas on its own resources. 
Table 4.5 Regulated telecommunication monopolies, 2012 
Entity Regulation scope 
Natural monopolies 
Kyrgyztelecom All end-user tariffs; maximum threshol d for the interconnection/termination 
rate/s charged 
Kyrgyzpost Tariffs for domestic shipment  of postcards, letters, and parcels 
State enterprise for 
government communications Tariffs for government communication se rvices provided to institutions and 
organizations financed from the national budget 
Asiainfo Tariffs for domain name re gistration in the Kyrgyz Republic 
Permitted monopolies  
Special connection Tariffs  for transportation of national passports within the Kyrgyz Republic 
MegaCom (Alpha Telecom) All end-user tariffs for cell ular communication services 
Source: State Agency of Antimonopoly Regulation of the Kyrgyz Republic, Order No. 2 of 16 January 2012. 
4.67.  The SCA may grant licences for one or more services within the broader activity categories 
stipulated in the legislation.79 According to the authorities, the awarding of telecommunications 
licences and spectrum is transparent and technology-neutral80; nevertheless, separate licences 
seem to be required for provision of mobile services with different technologies. No overseas 
ownership restrictions are applied, and foreign and domestic operators enjoy the same rights. 
Licensees wishing to provide real-time voice transmi ssion services (intercity, international, or over 
a packet-switched network) are still required to invest at least som 20 million in 
telecommunications infrastructure within one year of obtaining the respective licence. This 
particular threshold and, more generally, the level of administrative fines for non-compliance with SCA decisions seem too low to have a meaningful impact on operators' conduct.  
4.68.  A 2007 study by the ITU deemed all major Ky rgyz telecommunication markets fully open to 
competition.
81 Nevertheless, a more recent EBRD assessment finds scope for strengthening market 
contestability through regulatory provisions that establish or clarify, inter alia : infrastructure-
sharing obligations; interconnection terms, including a reference offer and regulated 
interconnection charges; secondary-spectrum trading; (fixed and mobile) number portability; local 
loop unbundling; domestic mobile roaming; and frameworks allowing the entry of virtual-network operators and carrier (pre-)selection for certain calls.
82  
4.5.3  Transport 
4.69.  During the review period, the economic di sadvantages of the Kyrgyz Republic's landlocked 
situation continued to be exacerbated by poor transport infrastructure, which remains an 
important hindrance to trade flows. Due to the country's predominantly mountainous terrain, most 
passengers and cargo are transported by road (Cha rt 4.4), notwithstanding the hazards of adverse 
weather conditions83 and lax driving standards.  
                                               
79 The activities subject to licensing are: postal and electric communication; data transmission; TV and 
radio broadcasting; and use of radio frequency spectrum, including the desi gn, production, and deployment of 
required networks and equipment (Regulation on the lice nsing of certain types of business No. 519 of 19 July 
2006). 
80 There have been no auctio ns for allocation of spectrum or licensing purposes. 
81 ITU (2007). 
82 EBRD (2012a). 
83 Avalanches and landslides, caused by heavy rain s, snowfall, and the springtime thaw, frequently 
prompt the closure of the only highway connecting the main southern city Osh and the capital Bishkek. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Chart 4.4 Passenger and cargo transport, 2006, 2009, and 2012 
Passenger transported (million) 
0.00.51.01.52.02.53.03.54.04.55.05.56.06.57.0
2005 2006 2007 2008 2009 2010 2011 2012 2013Passengers transported (million)
2012 2006 2009400.0500.0700.0
600.0Road
AirRailroad
24,90038,00035,000
1,911.1 1,100.0 1,044.4
0.70.8
0.9
 
Note: Bubble height reflects the respective mode of  transport's annual passenge r traffic, whereas bubble 
size reflects annual cargo to nnage (thousands) as indicate d by the figures in colour. 
Source: Data from the National Statistics Committee of the Kyrgyz Republic. 
4.70.  Railroads still cover only a fraction of Kyrgyz  territory, which, coupled with the lack of direct 
railroad links with China and Tajikistan, keeps bilateral and transit trade flows well below their potential. The passenger rail service is facing increased competition from airlines on its main 
international routes. Airborne passenger and cargo traffic, albeit still relatively modest, nearly 
doubled between 2006 and 2011. 
4.71.  The Ministry of Transport and Communi cations (MTC) remains in charge of policy 
formulation for all modes of transport. During the review period, its departments responsible for 
road and air transport regulation were transformed into the State Agency for Automobile and Water Transport (SAAWT)
84 and the Civil Aviation Agency (CAA), respectively. Since its last 
Review, the Kyrgyz Republic has ratified the Convention on Road Traffic85, the Convention on Road 
Signs and Signals86, and the Agreement on the International Carriage of Perishable Foodstuffs and 
on the Special Equipment to be Used for Such Carriage (ATP).87 
4.5.3.1  Road 
4.72.  The Kyrgyz road network is state-owned; some 55% is in need of partial or major repairs.88 
The poor condition of major roads adds substantially to transportation costs. The State also owns and operates some passenger bus terminals, which must be used by all carriers (including private 
ones).  
4.73.  No companies with state participation are involved in cargo or non-urban passenger 
transport. In major cities, municipal and private transport companies operate in parallel on the basis of agreements concluded with the municipa lities. The road transport segment's post-Soviet 
era fragmentation into many small independent business entities has undermined compliance with 
prudential standards for technical operation and maintenance. The vehicle fleet in the Kyrgyz Republic is progressively aging and shifting towards a predominance of minibuses, with adverse 
                                               
84 The Agency is the result of the merger of the Department of International Road Transport 
(Kyrgyzintrans) and the State Transport Inspectora te (Government Resolution No. 466 of 4 July 2012). 
85 Law No. 41 of 13 February 2006. 
86 Law No. 48 of 13 February 2006. 
87 Law No. 63 of 30 June 2011. 
88 Road transport development strategy of the Kyrgyz Republic for 2011-2015. Viewed at: 
http://www.time.kg/index.php?newsid=19. WT/TPR/S/288 • Kyrgyz Republic 
 
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  effects on passenger safety, road traffic, and the environment. In 2009, more than 40% of all 
trucks and 50% of buses had been in operation for over ten years.  
4.74.  As of 2013, the only activities subject to licensing are international freight transport and all 
passenger transport. Carriers wishing to obtain a licence must be incorporated and pay taxes in 
the Kyrgyz Republic. All licences are awarded th rough tenders; their validity is one year for 
passenger transport and three years for international freight transport. All international road transport services, except for Kazakhstan
89, Russia, and Tajikistan, also require a permit, which 
carriers must obtain before each journey. Licences and permits are administered by the SAAWT.  
4.75.  Freight transport and international passeng er transport by road are not subject to tariff 
regulation. The fares for domestic passenger transport (intercity and urban routes), remain government-regulated and their sluggish adjustment to input costs is a key reason for carriers' low 
profitability.
90 Most bus service routes to rural communities are thus unprofitable; generally, such 
routes are bundled with profitable ones and assigned to a carrier through open competitions. According to the authorities, carriers received no support from the state or regional budgets during 
the review period. In 2009, public service obligations that granted certain types of passengers free 
domestic bus transport, with partial state compensation of the carriers, were replaced with targeted payments to the beneficiaries. 
4.76.  The Kyrgyz Republic is not a party to the European Agreement concerning the Work of 
Crews of Vehicles Engaged in International Road Transport (AETR) and has not established AETR-compliant requirements for the use of digital tachographs in freight vehicles. Accordingly, some 95% of the 1,800-strong Kyrgyz cargo fleet involv ed in international tran sport are ill- equipped to 
circulate in the 32 countries that have implemented the AETR digital tachograph system since 
July 2010. Tajikistan is the Kyrgyz Republic's only neighbour that has not adopted AETR-compliant requirements. 
4.77.  Foreign trucks and buses are not allowe d to transport cargo or passengers between two 
domestic destinations (cabotage). SAAWT issues transit permits to foreign freight vehicles entering Kyrgyz territory, based on bilateral agreements ; entry without a permit results in a US$250 fee.  
Foreign carriers are required to register with S AAWT within three days of entry into the Kyrgyz 
Republic; no limitations on transit time apply. According to the authorities, the control of foreign transport vehicles remains lax, and stipulated weight and size limits are frequently exceeded. 
4.5.3.2  Rail 
4.78.  Kyrgyz railroads are essentially spokes of a Soviet-era rail network providing connections to 
hubs in neighbouring Kazakhstan and Uzbekistan , but rather limited and fragmented national 
coverage.
91 Transit through the Kyrgyz Republic is impossible under the current railroad 
configuration; railroad connections between certain Kyrgyz cities involve transit through 
neighbouring countries. No new railroads have been built in the Kyrgyz Republic since its independence. Rolling stock and infrastructure continued to deteriorate during the review period, 
as funding for maintenance and rehabilitation remained scarce.  
4.79.  The National Company Kyrgyz Temir Zholu (Kyrgyz Railways) remains fully state-owned and 
retains a statutory monopoly over all rail services and infrastructure. According to the authorities, it does not receive any allocations from the state budget. In 2011, Kyrgyz Railways was handed 
over to the MTC with a view to streamlining work on the design and construction of new railways 
on priority routes.
92 However, longstanding projects for the construction of two priority railway 
links (China-Uzbekistan and a domestic north-south connection) have not evolved beyond the 
preliminary feasibility study stage.  
                                               
89 In 2012, Kazakhstan introduced a te mporary permit system for Kyrgyz carriers transiting through its 
territory; no permits are required fo r bilateral transport traffic. The tr ansit permits are administered by 
Kazakhstan. 
90 Carriers must submit fare proposals to the Antimo nopoly Agency, which has the authority to make a 
final decision; the fares of municipal transportation companies are set by a representative body of the 
respective munici pal government. 
91 The railroads inherited from the Soviet Union comprise 323.4 km in the north and 101.2 km in the 
south; they are not consolidated into a domestic network and are not adapted to electric traction. 
92 Government Decree No. 364 of 5 July 2011. WT/TPR/S/288 • Kyrgyz Republic 
 
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  4.80.  The passenger and domestic cargo segments  remain lossmaking and continue to rely on 
cross-subsidies from international freight services.93 Passenger and domestic freight fares are set 
by the State Agency of Antimonopoly Regulation ; they are linked to the Swiss franc and have 
reflected its strong appreciation against the Kyrgyz som during 2008-12. The railway company's 
financial situation is further complicated by considerable external debt, mainly to the Kazakhstani 
and Russian railways, as well as by significant overdue payments for domestic freight services, 
predominantly those rendered to other state-owned enterprises. 
4.5.3.3  Air 
4.81.  International air transport services re main governed by bilateral agreements; such 
agreements have been signed with 26 partner countries (as at May 2013).94 In addition, the 
Kyrgyz Republic and the European Union signed an  agreement on some aspects of air traffic in 
June 2007; it stipulates that carriers appointed by EU member states may perform commercial 
flights to the Kyrgyz Republic, whereas all Kyrgyz-registered carriers remain blacklisted in the European Union. In general, the bilateral agreements in force stipulate first through fourth air 
freedoms; one agreement provides for the granti ng of fifth freedom rights through special 
authorizations from the CAA.
95 The authorities are studying the possibility of unilaterally 
implementing an "open skies" policy, which co uld provide a significant boost to the Kyrgyz 
economy. 
4.82.  Companies that operate domestic commercial flights must be Kyrgyz-registered and have at 
least 51% Kyrgyz ownership.96 The same ownership limitation seems to remain in place for 
companies performing aircraft repairs and main tenance, although Kyrgyz GATS commitments 
stipulated its elimination by 2005. Kyrgyz-registere d airlines, including the national carrier, do not 
receive direct subsidies from the State. Domestic passenger and cargo air fares are regulated by  
the State Agency for Antimonopoly Regulation, which sets maximum fares; all carriers operating 
on domestic routes receive a 50% disco unt on airport and air navigation fees.97 
4.83.  As of June 2013, there were 16 registered air carriers in the Kyrgyz Republic98; 5 of them 
operate regular international and domestic flights, while 14 foreign-registered carriers operate 
regular flights to the Kyrgyz Republic. The aver age age of Kyrgyz-registered aircraft exceeds 
20 years; besides raising safety concerns, these airplanes are uncompetitive on fuel consumption and in-flight comfort. All air carriers certified by  the CAA are banned from operating in European 
airspace; this has negative repercussions on the aircraft leasing terms these carriers are able to 
obtain.  
4.84.  In 2006, the nearly-bankrupt national air carrier Kyrgyzstan Aba Jo ldoru was merged with 
its main rival, Altyn Air, an airline company created in 2001 as a subsidiary of the state-owned 
gold mining and processing company Kyrgyzaltyn (section 4.2).
99 The Kyrgyzstan Aircompany, 
formed by this merger, it is the only air ca rrier owned by the State. An agreement on the 
settlement of merger-related debts to Kyrgyzaltyn was reached in 2010; the debt was fully repaid 
in July 2012.100  
                                               
93 Passenger service's losses were som 325.1 million in 2011 (about US$6.8 million), of which 85% were 
from international routes.  
94 CAA online information. Viewed at: http://www.caa.kg/ru/regulation.html. 
95 The CAA granted the first special authorization in  2012, following consultations with its Turkish and 
Mongolian counterparts.  
96 The Kyrgyz Republic has not ratified any internatio nal air transport agreements stipulating eighth or 
ninth freedom rights (consecutive or  stand-alone cabotage, respectively);  poor airport infrastructure is an 
additional impediment to the provision of such services. 
97 Government Resolution No. 479 of 19 October 2007. 
98 CAA online information. Viewed at: http://www.caa.kg/ru/operators.html. 
99 Presidential Decree No. 517, 14 November 2015, and Government Resolution No. 9, 
11 January 2006. 
100 Kyrgyzaltyn online information. Viewed at: http://www.kyrgyzaltyn.kg/the-news/473-aviakompania-
kyrgyzstan-pogasilo-zadoljennost-za-tu-154. WT/TPR/S/288 • Kyrgyz Republic 
 
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  Chart 4.5 Passenger travel options to  selected destinations, January 2013 
 
Note: Reported travel time is based on itineraries involving no more than one stopover: total time from 
Almaty airport includes a 5-hour allowance for transfer from Bishkek. 
Source: Ministry of Economy of the Kyrgyz Republic. 
4.85.  According to CAA classification, the Kyrgyz Republic has seven domestic and four 
international airports101; worn out infrastructure is common to all of them. Regular domestic flights 
connect Bishkek to four other airports. The Manas and Osh international airports handle most international flights and are the only ones operating on a 24-hour basis, although Osh's runways are in urgent need of repairs. The Manas airpor t hosts the country's only cargo terminal and a 
"transit centre" (air base) primarily operated by the U.S. Air Force; the transit centre's possible 
closure in 2014 is expected to trigger a five-fold contraction of the airport's net profit.
102  
4.86.  Better flight options, including number of routes, frequency of flights, and lower airfares, 
still make the Almaty international airport in neig hbouring Kazakhstan a preferred airport for many 
Kyrgyz travellers (Chart 4.5). Regular direct flights connect the Manas airport to only three major hubs (Dubai, Istanbul, and Moscow); a number of routes are operated by a single carrier, which 
facilitates monopoly pricing. 
4.5.4  Tourism 4.87.  Although the Kyrgyz Republic's natural and historic attractions have drawn attention to 
untapped possibilities in tourism for a long time, the sector continues to perform well below its 
potential. Popular attractions include the Lake Issyk-Kul and ancient cities on the Silk Road, while 
the country's mountains offer ample possibilities for development of hiking routes and skiing facilities. Tourism is estimated to employ some 118,000 people (including indirect employment), 
representing approximately 5% of the Kyrgyz work force; however, tourism statistics remain very 
unreliable. 
4.88.  The Kyrgyz Republic does not have a spec ific regulatory framework governing the provision 
of tourism services. Accommodation providers, tour operators, and travel agents are not subject to 
licensing. There are no statutory provisions for the ranking of accommodation facilities (stars); no control is exercised over hotel owners' ranking claims. Foreign ownership of tourist facilities in the 
                                               
101 All 11 airports are the property of the open joint-stock company Manas International Airport; the 
State owns 79.1% of its shares, while 8.5% are held by the State Social Fund. Unprofitable airports are funded 
by profitable ones within the company's portfolio. 
102 Ministry of Economy (2013). 
WT/TPR/S/288 • Kyrgyz Republic 
 
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  Lake Issyk-Kul region remains prohibited, and their lease by foreign-owned operators (for 
49 years, renewable) remains subject to parliamentary approval.  
4.89.  Government policy for the development of th e sector has suffered from lack of direction and 
continuity, partly attributable to socio-political instability. A sector-specific strategy has been 
elaborated but has yet to be adopted. During the review period, policy action seems to have been 
limited to the elimination of visa requirements (short-term visits) for citizens of 44 countries. 
However, restricted and expensive international air access remains a major constraint to the 
sector's development. Insufficient permits for international passenger transport by road also 
constitute a barrier. 
4.90.  Execution of tourism policy is the responsibility of the Ministry of Culture and Tourism; its 
tourism department appears seriously understaffed. The tourism department's functions do not 
include elaboration of normative acts103; by and large, its work consists in organizing training 
activities aimed at improving service quality in the sector and diversifying the range of tourism products offered in the Kyrgyz Republic. 
 
                                               
103 The department's voluntary contributions of draft normative acts have been blocked by the Ministry 
of Justice. WT/TPR/S/288 • Kyrgyz Republic 
 
- 94 - 
 
  REFERENCES 
EBRD (2012a), Electronic Communication Sector Comparative Assessment , Kyrgyz Republic– 
Country Summary . Viewed at:  
http://www.ebrd.com/downloa ds/legal/telecomms/kyr gyz-republic-2012.pdf.  
 
EBRD (2012b), Transition Report, Integration across borders . Viewed at:  
http://www.ebrd.com/downloads/r esearch/transi tion/tr12.pdf.  
 
Eurasian Development Bank (2011), Small Hydropower in the CIS: Current Status and 
Development Prospects , Sector Report No. 14. 
 
International Monetary Fund (2011a), First Review Under the Three-Year Arrangement Under the 
Extended Credit Facility and Request for Modification of Performance Criteria , IMF Country Report 
No. 11/354, December, Washington D.C. 
 
International Monetary Fund (2011b), Kyrgyz Republic: Selected Issues , IMF Country Report 
No. 11/156, June, Washington D.C.  
 
ITU (2007), Country and Regional profiles . Available at:  
http://www.itu.int/ITU-D/treg/p rofiles/guide.asp?lang=en.  
 
Ministry of Economy of the Kyrgyz Republic (2013), Analytical Study on the Feasibility of Adopting 
an Open Skies Policy in the Civil Aviation Sector of the Kyrgyz Republic , Bishkek. Viewed at: 
http://www.mineconom.kg/Docs/in vestment/Report_on _Open_Skies_policy_in_KG25_01_13.docx . 
 
NBKR (2012), Report on Financial Sector Stability . Viewed at: 
http://www.nbkr.kg/DOC/140 12013/0000000 00019715.pdf . 
 
Nutall C. (2011), Business New Europe, Kyrgyz stock exchanges merge in hope of better times 
ahead , 13 June, Bishkek. Viewed at: http://www.bne.eu/story2731 . 
 
Tetra Tech ES Inc. (2011), Management Diagnostic of JSC Power Plants, Report on Phase 1: 
Preliminary Findings and Recommendations , March.  
Viewed at: http://www.energo.gov.kg/site /images/documents/123.pdf.   
 
USAID (2010a), Economic Consequences of the Customs Union for the Kyrgyz Republic. 
Publication, 19 April. 
 
USAID (2010a), Economic Consequences of the Customs Union for the Kyrgyz Republic, Phase II.  
Publication.  
World Bank (2011), Kyrgyz Republic - Agricultural policy update (Vol. 2 of 2) , December.  
Viewed at:  http://documents.worldbank.org/curated/en/2011/12/16411832/kyrgyz-republic-agricultural-
policy-update-vol-2-2-main-report . 
 
World Customs Organization (2011), Position Regarding Contracting Parties , Document 
NG0179E1a, August, Brussels. Viewed at: 
http://www.wcoomd.org/~/media/WCO/Public/Glo bal/PDF/About%20us/Legal%20Instruments/Co
nventions%20and%20Agreements /HS/NG0179E1.ashx?db=web.  
 WT/TPR/S/288 • Kyrgyz Republic 
 
- 95 - 
 
   
5  APPENDIX TABLES 
Table A1. 1 Merchandise exports by HS section and major HS chapter, 2006-12 
HS 
Section HS Chapter/Code 2006  2007  2008  2009  2010 2011 2012  
Total (US$ million) 794.1 1,134.2 1,617.6 1,673.0 1,759.8 1,978.9 1,683.2 
  (% of total) 
01 Live animals and products 3.0 2.7 2.3 11.8 16.0 1.9 2.0 
04 Dairy products 2.6 2.3 1.9 3.8 3.6 1.5 1.5 
02 Vegetable products 4.6 7.1 5.9 8.8 7.8 7.0 8.8 
07 Edible vegetables 3.0 4.2 2.7 6.4 5.5 4.8 5.3 
08 Edible fruit and nuts 1.3 2.7 3.1 2.1 2.0 2.0 3.3 
03 Fats and oils 1.0 0.8 0.7 0.4 0.1 0.0 0.0 
04 Prepared food, beverages and 
 tobacco 3.6 3.3 2.3 2.2 2.6 2.3 2.5 
05 Mineral products 22.4 29.1 27.9 14.1 7.2 10.9 14.9 
27 Mineral fuels and oils, products 
 thereof 18.7 24.7 24.5 13.5 6.7 9.3 10.5 
26 Ores, slag and ash 0.4 0.5 0.3 0.2 0.0 0.9 3.3 
06 Chemicals and products thereof 1.8 2.2 8.1 15.5 9.5 2.5 3.4 
28 Inorganic chemicals 0.7 1.3 7.5 15.2 9.2 1.8 2.6 
07 Plastics and rubber 2.5 1.6 0.7 0.8 0.5 1.2 1.6 
08 Raw hides and skins; leather 1.8 1.4 1.1 0.4 0.4 0.6 0.6 
09 Wood, cork, straw 0.1 0.1 0.1 0.0 0.0 0.0 0.0 
10 Pulp of wood; paper and paperboard 0.6 0.4 0.4 0.5 0.4 0.5 0.6 
11 Textiles and textile articles 12.2 10.8 8.2 6.2 9.2 9.5 12.2 
62 Clothing, not knitted or 
 crocheted 5.6 6.5 5.7 3.8 5.5 5.3 6.8 
61 Clothing, knitted or crocheted 0.4 0.5 0.3 0.5 1.6 1.9 2.4 
52 Cotton 4.9 2.8 1.6 1.4 1.7 1.7 2.1 
12 Footwear, headgear, etc. 0.1 0.2 0.3 0.2 0.1 0.2 0.2 
13 Articles of stone, plaster, cement 5.5 4.8 2.7 0.4 0.6 0.5 1.7 
14 Precious stones and metals, pearls 26.8 20.1 29.9 31.9 38.2 51.4 33.8 
710812 Non-monetary gold, 
 unwrought, excl. powder 25.9 19.8 286.0 31.6 38.0 50.8 33.4 
15 Base metals and articles thereof 3.4 4.7 3.0 1.1 2.1 3.6 4.4 
72 Iron and steel 1.2 1.2 0.8 0.2 0.7 1.5 1.9 
16 Machinery, electrical machines 6.4 6.2 3.4 3.0 2.8 2.8 4.2 
84 Machinery and mechanical 
 appliances 3.4 3.3 1.6 1.5 1.0 1.2 2.5 
85 Electrical machinery 3.1 2.9 1.8 1.5 1.8 1.6 1.8 
17 Transport equipment 3.0 3.7 2.4 2.0 2.1 3.5 8.3 
87 Motor vehicles and parts thereof 2.0 3.4 2.1 1.8 1.9 3.3 7.3 
18 Precision equipment 0.1 0.3 0.1 0.2 0.1 0.3 0.3 
20 Miscellaneous manufactured articles 0.4 0.4 0.3 0.3 0.2 0.2 0.3 
Not classified 0.6 0.0 0.2 0.4 0.3 0.9 0.0 
Source: WTO calculations, based on data provided by the Kyrgyz authorities. 
 WT/TPR/S/288 • Kyrgyz Republic 
 
- 96 - 
 
  Table A1. 2 Merchandise imports by HS section and major HS chapter, 2006-12 
HS 
Section HS Chapter 2006  2007  2008  2009  2010 2011 2012  
Total (US$ million) 1,718.2 2,412.1 4,072.4 3,040.2 3,223.1 4,261.2 5,373.9 
  (% of total) 
01 Live animals and products 1.3 1.7 1.5 2.2 3.0 2.2 1.9 
02 Vegetable products 3.6 4.9 4.3 4.7 3.8 3.9 3.4 
10 Cereals 2.0 3.3 2.5 2.9 2.3 1.9 1.9 
03 Fats and oils 1.2 1.3 1.2 1.6 1.9 1.7 1.4 
04 Prepared food, beverages and 
 tobacco 8.2 7.7 6.2 8.1 8.3 8.8 7.9 
17 Sugars and sugar confectionary 3.0 1.7 1.2 2.0 1.9 2.3 1.6 
18 Cocoa and cocoa preparations 1.0 1.3 1.1 1.5 1.6 1.6 1.6 
05 Mineral products 30.7 32.2 30.5 27.6 27.2 23.5 22.4 
27 Mineral fuels and oils, products 
 thereof 29.3 30.5 29.4 26.4 26.5 22.8 21.7 
06 Chemicals and products thereof 8.5 9.2 7.1 10.1 9.3 9.5 9.0 
30 Pharmaceutical products 2.9 3.4 2.4 2.9 3.4 3.8 3.5 
07 Plastics and rubber 5.0 4.3 2.7 3.3 3.8 4.0 4.2 
39 Plastics and articles thereof 2.9 2.3 1.6 1.8 2.3 2.5 2.6 
40 Rubber and articles thereof 2.1 2.0 1.0 1.4 1.5 1.5 1.6 
08 Raw hides and skins; leather 0.1 0.1 0.2 0.2 0.2 0.3 0.3 
09 Wood, cork, straw 1.7 2.3 1.7 2.2 2.0 2.4 2.5 
44 Wood and articles thereof 1.6 2.2 1.7 2.2 2.0 2.4 2.5 
10 Pulp of wood; paper and paperboard 1.9 1.7 1.2 1.9 1.6 1.8 1.5 
11 Textiles and textile articles 3.0 2.0 6.4 6.2 6.5 6.9 7.0 
61 Clothing, knitted or crocheted 0.5 0.1 2.1 1.6 1.6 1.7 2.2 
62 Clothing, not knitted or 
 crocheted 0.4 0.2 1.5 1.8 1.9 2.5 2.1 
12 Footwear, headgear, etc. 0.4 0.4 1.6 1.9 1.3 1.4 1.6 
13 Articles of stone, plaster, cement 1.5 1.5 1.4 1.9 1.7 2.0 1.7 
14 Precious stones and metals, pearls 0.2 0.1 0.2 0.1 0.1 0.1 0.4 
15 Base metals and articles thereof 6.1 7.4 5.7 6.1 5.7 6.7 7.7 
72 Iron and steel 1.9 2.6 2.2 2.6 2.2 2.6 3.2 
73 Articles of iron and steel 1.8 1.8 1.7 2.3 2.1 2.3 2.9 
16 Machinery, electrical machines 15.8 14.2 11.2 10.9 12.7 11.4 11.8 
84 Machinery and mechanical 
 appliances 8.8 8.5 7.1 7.3 8.2 6.6 7.0 
85 Electrical machinery 7.1 5.7 4.2 3.6 4.5 4.8 4.9 
17 Transport equipment 8.0 6.0 15.4 9.1 8.7 11.3 13.3 
87 Motor vehicles and parts thereof 6.2 4.8 14.6 8.3 8.4 10.3 12.6 
18 Precision equipment 1.5 1.4 0.6 0.8 1.1 0.8 0.8 
20 Miscellaneous manufactured articles 1.2 1.6 0.9 1.3 1.1 1.1 1.1 
Not classified 0.0 0.1 0.0 0.1 0.0 0.1 0.0 
Source: WTO calculations, based on data provided by the Kyrgyz authorities. 
 WT/TPR/S/288 • Kyrgyz Republic 
 
- 97 - 
 
  Table A1. 3 Merchandise expo rts by destination, 2006-12 
(US$ million and %) 
  2006  2007  2008  2009  2010 2011 2012  
Total exports (US$ million) 794.1 1,134.2 1,617.6 1,673.0 1,759.8 1,978.9 1,683.2 
  % of total 
 America 0.8 0.4 0.3 3.3 6.1 0.1 1.1 
  United States 0.8 0.4 0.3 2.3 5.1 0.0 0.2 
  Other America 0.0 0.1 0.1 1.0 1.0 0.1 1.0 
    British Virgin Islands 0.0 0.0 0.0 0.0 0.0 0.0 0.8 
    
 Europe 34.0 30.3 41.8 42.4 28.8 49.1 39.1 
  EU(27) 4.4 6.5 11.7 13.5 4.5 2.0 3.2 
    Germany 0.3 0.6 1.1 0.3 0.3 0.5 1.0 
    Belgium 0.6 1.0 0.7 0.7 0.5 0.5 0.8 
    Bulgaria 0.2 0.7 0.2 0.2 0.3 0.3 0.5 
    France 0.0 0.0 6.7 11.1 2.2 0.1 0.2 
    Netherlands 0.4 0.3 0.1 0.2 0.1 0.1 0.2 
  EFTA 26.2 19.9 27.2 26.6 22.0 44.2 32.6 
    Switzerland 26.2 19.9 27.2 26.6 22.0 44.1 32.6 
  Other Europe 3.5 3.9 2.9 2.3 2.2 2.9 3.4 
    Turkey 3.4 3.8 2.8 2.2 2.1 2.8 3.0 
    Former Yugoslav Republic of  
 Macedonia 0.0 0.1 0.1 0.1 0.0 0.1 0.3 
     
 Commonwealth of Independent 
 States (CIS) 47.7 50.0 47.8 45.0 44.9 38.3 52.5 
    Kazakhstan 20.5 18.0 11.4 22.1 25.6 14.6 24.1 
    Russian Federation 19.4 20.7 19.2 11.1 14.6 14.4 13.0 
    Uzbekistan 3.5 7.6 14.3 10.0 2.3 6.3 11.3 
    Tajikistan 3.0 2.5 1.7 0.9 0.9 1.8 2.4 
    Belarus 0.1 0.2 0.3 0.2 0.4 0.4 0.7 
    Ukraine 0.5 0.5 0.4 0.2 0.3 0.2 0.3 
    Turkmenistan 0.3 0.2 0.3 0.3 0.3 0.4 0.3 
    Azerbaijan 0.2 0.2 0.2 0.1 0.1 0.1 0.3 
 Africa 0.0 0.0 0.0 0.0 0.0 0.0 0.0 
     
 Middle East 2.2 2.4 3.9 6.6 17.9 8.1 1.8 
    United Arab Emirates 1.1 1.3 3.1 6.1 17.2 7.6 1.0 
    Iran Islamic Republic 0.9 1.0 0.7 0.4 0.6 0.4 0.6 
     
 Asia 15.3 16.9 6.1 2.7 2.4 4.5 5.4 
  China 4.8 5.5 2.7 1.2 1.6 2.1 3.6 
  Japan 0.1 0.1 0.2 0.0 0.0 0.0 0.0 
  Six East Asian Traders 0.3 0.5 0.2 0.0 0.0 0.1 0.0 
  Other Asia 10.1 10.7 3.0 1.5 0.7 2.2 1.7 
    Afghanistan 9.4 10.4 2.8 1.1 0.5 1.2 1.5 
Source: WTO calculations, based on data provided by the Kyrgyz authorities. WT/TPR/S/288 • Kyrgyz Republic 
 
- 98 - 
 
  Table A1. 4 Merchandise imports by origin, 2006-12 
(US$ million and %) 
  2006  2007  2008  2009  2010 2011 2012  
Total imports (US$ million) 1,718.2 2,412.1 4,072.4 3,040.2 3,223.1 4,261.2 5,373.9 
  % of total 
 America 8.2 5.4 4.1 4.3 6.9 5.8 5.7 
  United States 5.7 4.0 2.9 3.3 5.9 4.9 4.7 
  Other America 2.5 1.5 1.2 1.0 0.9 0.9 1.0 
   Canada 1.9 1.0 0.8 0.6 0.6 0.5 0.5 
      
 Europe 14.9 12.3 17.1 12.9 12.4 13.5 14.0 
  EU(27) 12.2 9.4 14.6 9.9 9.2 10.4 10.3 
   Germany 2.3 2.2 8.2 3.3 2.7 3.4 3.7 
   Netherlands 1.6 1.5 1.0 1.6 0.8 1.0 1.1 
   Poland 0.8 0.7 0.6 0.6 0.8 0.7 0.7 
   France 1.4 0.7 0.4 0.7 1.0 0.8 0.6 
   United Kingdom 0.4 0.4 0.7 0.4 0.5 0.5 0.6 
   Sweden 1.0 0.3 0.7 0.3 0.2 0.4 0.5 
   Italy 0.8 0.4 0.5 0.3 0.3 0.8 0.4 
   Belgium 1.0 0.3 0.3 0.4 0.5 0.4 0.3 
   Latvia 0.1 0.3 0.2 0.2 0.2 0.2 0.3 
   Spain 0.1 0.1 0.1 0.1 0.3 0.3 0.3 
  EFTA 0.5 0.6 0.3 0.5 0.5 0.4 0.3 
   Switzerland 0.4 0.5 0.2 0.5 0.4 0.3 0.3 
  Other Europe 2.3 2.3 2.2 2.4 2.6 2.8 3.3 
   Turkey 2.3 2.1 2.2 2.4 2.6 2.7 3.3 
       
 Commonwealth of Independent 
 States (CIS) 57.7 63.1 53.7 56.6 53.2 51.2 50.0 
   Russian Federation 38.0 40.5 36.6 35.9 33.6 33.6 33.2 
   Kazakhstan 11.6 12. 9 9.2 11.2 12. 0 9.6 9.7 
   Belarus 1.1 1.0 1.0 2.4 1.7 2.6 3.0 
   Ukraine 2.4 3.3 2.3 2.9 2.5 2.9 2.6 
   Uzbekistan 3.8 5.0 3.9 3.7 2.9 2.0 1.2 
      
 Africa 0.1 0.1 0.1 0.1 0.3 0.3 0.2 
      
 Middle East 1.2 0.9 0.7 0.5 0.7 0.6 0.4 
      
 Asia 17.9 18.2 24.3 25.7 26.6 28.5 29.7 
  China 14.3 14.7 17.9 20.5 20.7 21.7 22.5 
  Japan 0.8 0.7 3.2 2.2 2.7 3.9 4.0 
  Six East Asian Traders 1.9 1.8 2.3 2.0 2.0 2.0 2.1 
   Korea, Republic of 1.7 1.6 2.0 1.7 1.5 1.5 1.7 
  Other Asia 0.9 0.9 0.9 1.0 1.3 1.0 1.0 
   India 0.4 0.4 0.3 0.5 0.7 0.7 0.6 
Source: WTO calculations, based on data provided by the Kyrgyz authorities. WT/TPR/S/288 • Kyrgyz Republic 
 
- 99 - 
 
  Table A1. 5 Trade in services, 2006-12 
(US$ million) 
  2006  2007  2008  2009  2010 2011 2012  
Services balance -82.0 79.9 -97.7 0.2 -196.5 5.8 -301.8 
Exports 378.7 684.8 896.1 869.1 727.8 1,143.8 1,230.1 
Transportation 56.6 139.3 146.3 134.9 150.4 168.9 181.3 
Rail 20.1 34.4 46.0 35.0 37.9 30.3 32.5 
Air 32.2 92.5 92.8 95.5 107.4 123.0 128.5 
Road 1.7 2.9 2.2 2.2 3.7 14.2 12.8 
Other 1.3 9.5 5.3 2.2 1.4 1.4 7.5 
Travel  167.0 346.0 514.5 458.8 283.6 640.5 697.9 
Business .. 148.8 221.2 197.3 122.0 275.4 300.1 
Personal .. 197.2 293.3 261.5 161.7 365.1 397.8 
Insurance 1.4 5.0 8.3 3.6 6.7 2.1 0.9 
Government 27.3 30.7 11.6 10.3 14.6 13.5 15.5 
Construction 19.7 16.8 20.8 18.8 32.8 34.9 33.4 
Financial 2.0 3.7 13.5 10.9 0.6 1.8 3.5 
Computer and information 1.3 1.1 1.4 1.3 3.1 1.4 2.1 
Communications 10.1 12.0 16.4 9.3 19.9 15.3 11.3 
Business 76.9 84.8 93.7 135.0 148.0 171.1 185.3 
Other services 10.2 45.3 69.4 86.1 68.1 94.3 99.0 
Imports 460.8 604.8 993.8 869.0 924.2 1,138.0 1,531.9 
Transportation 178.0 337.2 488.7 412.5 417.0 501.0 642.7 
Rail 109.2 212.2 329.5 277.8 280.6 300.6 396.6 
Air 33.0 79.9 87.3 79.2 80.1 109.2 109.3 
Road 28.0 23.5 35.5 29.9 40.1 76.3 96.0 
Other 7.8 21.6 36.5 25.6 16.2 14.9 40.8 
Travel  91.6 112.4 304.4 266.9 271.1 420.8 558.7 
Business .. 59.6 161.3 141.4 143.7 223.0 296.1 
Personal .. 52.8 143.1 125.4 127.4 197.8 262.6 
Insurance 18.3 9.4 10.8 12.0 14.1 16.0 16.9 
Government 4.8 5.2 5.5 9.2 9.1 8.6 8.8 
Construction 3.3 11.8 10.5 18.3 11.9 13.5 8.9 
Financial 3.6 9.0 9.1 4.0 17.1 6.9 8.0 
Computer and information 1.7 4.4 14.6 16.2 13.6 10.8 14.9 
Communications 5.9 7.4 12.6 9.2 12.8 12.1 4.8 
Business 102.6 81.6 99.5 84.5 139.3 105.3 214.9 
Other services 29.9 26.2 38.1 36.2 18.3 43.0 53.0 
Source: National Bank of the Kyrgyz Repu blic online information. Available at: 
http://www.nbkr.kg/index1.jsp?item=138&lang=ENG  [24.07.13]; and data provided by the Kyrgyz 
Republic. WT/TPR/S/288 • Kyrgyz Republic 
 
- 100 - 
 
  Table A2. 1 Selected notifications to the Central Registry of Notifications (CRN), 
1 January 2007-30 June 2013 
WTO Agreement  Description  Document symbola Date 
Agreement on Agriculture  
Article 12.1(b) - ER   G/AG/N/KGZ/2  2008 
  G/AG/N/KGZ/3  2011 
GATT 1994  
Article XXVIII:5  Modification of 
schedules (reserve the right to modify schedules for a three-
year period)
 G/MA/226  2008 
  G/MA/267  2011 
Agreement on Subsidies and Countervailing  
Article 25.1 and GATT 1994 Article XVI:1  Subsidies  G/SCM/N/186/KGZ  2010 
Agreement on Safeguards  
Article 12.1(a) - initiation   G/SG/N/6/KGZ/2  2009 
  G/SG/N/6/KGZ/1   
  G/SG/N/6/KGZ/3  2010 
Article 12.1(b) - finding   G/SG/N/10/KGZ/1; 
G/SG/N/8/KGZ/1/Suppl.1;  2009 
  G/SG/N/7/KGZ/1; 
G/SG/N/8/KGZ/1   
Article 12.1(c) - decision   G/SG/N/10/KGZ/1; 
G/SG/N/8/KGZ/1/Suppl.1;  2009 
Article 12.4   G/SG/N/7/KGZ/1; 
G/SG/N/8/KGZ/1  2009 
Agreement on Technical Barriers to Trade     
Article 2.9  Technical regulations  G/TBT/N/KGZ/1  2007 
  G/TBT/N/KGZ/2   
  G/TBT/N/KGZ/3  
  G/TBT/N/KGZ/11 2008  
  G/TBT/N/KGZ/10  
  G/TBT/N/KGZ/9  
  G/TBT/N/KGZ/14 2009 
  G/TBT/N/KGZ/15  
  G/TBT/N/KGZ/13  
  G/TBT/N/KGZ/12  
  G/TBT/N/KGZ/16 2010 
  G/TBT/N/KGZ/17  
  G/TBT/N/KGZ/18  
  G/TBT/N/KGZ/27 2011  
  G/TBT/N/KGZ/25  
  G/TBT/N/KGZ/26  
  G/TBT/N/KGZ/23  
  G/TBT/N/KGZ/24  
  G/TBT/N/KGZ/22  
  G/TBT/N/KGZ/19  
  G/TBT/N/KGZ/20  
  G/TBT/N/KGZ/21  
  G/TBT/N/KGZ/28 2012 
  G/TBT/N/KGZ/29  
  G/TBT/N/KGZ/30  
  G/TBT/N/KGZ/31  
  G/TBT/N/KGZ/32  
  G/TBT/N/KGZ/33  
Article 5.6  Conformity 
assessment 
procedures  G/TBT/N/KGZ/4 2007 
  G/TBT/N/KGZ/5  
  G/TBT/N/KGZ/6  
  G/TBT/N/KGZ/7  
Article Unspecified   G/TBT/N/KGZ/8  2007 WT/TPR/S/288 • Kyrgyz Republic 
 
- 101 - 
 
  WTO Agreement  Description  Document symbola Date 
Agreement on Trade-Related Aspects of Intellectual Property Rights  
Article 63.2 - legislation  Laws/regulations; 
amendment of a 
law/regulation  IP/N/1/KGZ/P/2 1999 
  IP/N/1/KGZ/L/1  
  IP/N/1/KGZ/P/3 2005 
  IP/N/1/KGZ/C/4; 
IP/N/1/KGZ/I/3  
  IP/N/1/KGZ/C/6 2006 
  IP/N/1/KGZ/I/6  
  IP/N/1/KGZ/P/5  
  IP/N/1/KGZ/T/1 2008 
  IP/N/1/KGZ/3  
Article 69  Kyrgyz Republic  IP/N/3/KGZ/1 2013 
 Switzerland  IP/N/3/Rev.11 2010 
 Turkey  IP/N/3/Rev.9 2005 
  IP/N/3/Rev.10 2008 
a In case of recurring notifications, on ly the most recent document is listed. 
Source: WTO Central Registry of Notifications. 
 WT/TPR/S/288 • Kyrgyz Republic 
 
- 102 - 
 
  Table A3. 1 Tariff summary, 2012 
   
Number  MFN applied Bound 
rate 
  of lines Average 
(%) Range 
(%) Duty free 
(%) average 
(%) 
Total 10,990 5.0 0-20 46.4 7.8 
HS 01-24 2,722 9.1 0-20 14.5 12.0 
HS 25-97 8,268 3.7 0-15 56.9 6.4 
By WTO category  
WTO agricultural products 2,474 8.4 0-20 21.4 12.1 
 Animals and products thereof 509 8.6 0-10 13.6 11.7 
 Dairy products 224 10.3 10-15 0.0 11.0 
 Fruit, vegetables, and plants 520 11.6 0-20 12.9 15.7 
 Coffee and tea 74 7.3 0-10 8.1 9.5 
 Cereals and preparations 239 7.2 0-15 25.9 12.7 
 Oils seeds, fats, oil and their products 183 6.6 0-15 27.9 11.4 
 Sugars and confectionary 76 3.6 0-10 46.1 8.3 
 Beverages, spirits and tobacco 340 10.8 0-20 8.5 11.3 
 Cotton 6 0.0 0-0 100.0 10.0 
 Other agricultural products, n.e.s. 303 2.2 0-10 67.3 10.3 
WTO non-agricultural products  8,516 4.1 0-15 53.7 6.6 
 Fish and fishery products 401 10.1 5-15 0.0 10.1 
 Minerals and metals 1,610 3.3 0-10 61.0 5.0 
 Chemicals and photographic supplies 1,441 2.4 0-15 52.7 5.4 
 Wood, pulp, paper and furniture 488 0.4 0-10 96.1 0.6 
 Textiles 891 6.6 0-12 27.3 8.7 
 Clothing 337 11.5 0-12 1.2 11.9 
 Leather, rubber, footwear and travel 
 goods 378 4.9 0-10 50.5 9.3 
 Non-electric machinery 1,181 2.3 0-10 76.7 6.5 
 Electric machinery 609 3.1 0-15 65.8 6.8 
 Transport equipment 378 6.2 0-10 35.7 8.8 
 Non-agricultural products, news. 761 3.9 0-10 59.8 6.6 
 Petroleum 41 1.7 0-5 65.9 10.0 
By stage of processing  
 First stage of processing 1,311 5.4 0-15 40.1 9.8 
 Semi-processed products 3,016 3.2 0-15 54.8 5.8 
 Fully processed products 6,663 5.8 0-20 43.9 8.3 
By HS section  
 01 Live animals and products 1,078 9.3 0-15 7.2 11.3 
 02 Vegetable products 571 6.8 0-15 35.9 13.6 
 03 Fats and oils 140 9.0 0-15 9.3 12.6 
 04 Prepared food, beverages and  tobacco 933 10.2 0-20 10.7 11.8 
 05 Mineral products 249 4.0 0-10 22.5 9.5 
 06 Chemicals and products thereof 1,310 2.7 0-15 46.9 5.3 
 07 Plastics, rubber, and articles thereof 373 1.2 0-10 87.9 7.5 
 08 Raw hides and skin s, leather, and  
  products thereof 224 2.1 0-10 79.0 8.5 
 09 Wood and articles of wood 223 0.0 0-0 100.0 1.6 
 10 Pulp of wood, paper and paperboard 236 0.0 0-0 100.0 0.0 
 11 Textiles and textile articles 1,185 7.9 0-12 19.8 9.6 
 12 Footwear, headgear, etc. 161 9.3 0-10 6.8 10.0 
 13 Articles of stone, plaster, cement 269 8.0 0-10 19.7 9.7 
 14 Precious stones and metals, pearls,  
 articles thereof 63 9.8 0-10 1.6 10.0 
 15 Base metals an d articles thereof 1,058 1.5 0-10 83.5 2.6 
 16 Machinery, electrical equipment, etc. 1,869 2.6 0-15 72.6 6.5 WT/TPR/S/288 • Kyrgyz Republic 
 
- 103 - 
 
     
Number  MFN applied Bound 
rate 
  of lines Average 
(%) Range 
(%) Duty free 
(%) average 
(%) 
 17 Transport equipment 397 6.3 0-10 35.0 8.8 
 18 Precision equipment 368 3.1 0-10 66.3 5.1 
 19 Arms and ammunition 27 0.0 0-0 100.0 15.0 
 20 Miscellaneous manufactured articles 249 5.3 0-10 46.6 7.3 
 21 Works of art, etc. 7 2.9 0-10 71.4 14.3 
Note: Calculations for averages are ba sed on national tariffs line level (10-digit), excluding specific rates 
and including the ad valorem part of mixed rates. 
Source: WTO Secretariat calculations, based on data pr ovided by the authorities of the Kyrgyz Republic. 
 
 
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