WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/ACC/KAZ/70 
4 October 2012 
 (12-5368) 
Working Party on the 
Accession of Kazakhstan Original:   English 
 
 
 
ACCESSION OF KAZAKHSTAN 
 
Additional Questions and Replies 
  
 The following submission, dated 11 September 2012, is being circulated at the request of the 
Delegation of the Republic of Kazakhstan.   
_______________ 
  WT/ACC/KAZ/70 
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  TABLE OF CONTENTS 
 
II.  ECONOMIC POLICIES .......................................................................................................... 1  
-  Foreign Exchange and Payments ............................................................................................ 1  
-  Investment Regime.............................................................................................................. ...... 2 
-  Competitio n Policy ............................................................................................................ ........ 6 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES .................................... 11  
IV.  POLICIES AFFECTING TRADE IN GOODS ................................................................... 12  
-  Registration Requirements For Import and Export Operations ........................................ 12  
-  (c) Goods with Encryption Technology ................................................................................. 14  
A.  IMPORT REGULATIONS .................................................................................................... 14  
-  Ordinary Customs Duties .......................................................................................................  14 
-  Tariff Exemptions ............................................................................................................. ...... 15 
-  Tariff Rate Quotas ............................................................................................................ ...... 15 
-  Application of Internal Taxes to Imports ............................................................................. 21  
(a)  Quantitative import restrictions, incl uding prohibitions and quotas ................................ 24  
(b)  Import Licensing .............................................................................................................. ....... 24 
-  Customs Valuation ............................................................................................................. ..... 27 
-   Anti-dumping, Countervailing Du ty and Safeguard Regimes ........................................... 28  
B.  EXPORT REGULATIONS ................................................................................................... 29  
-  Customs Tariffs, Fees and Charges for Services Rendered, Application of 
Internal Taxes to Exports ..................................................................................................... .. 29 
-  Quantitative Export Restrictions, including Prohibitions and Quotas .............................. 29  
C.  INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS ......................... 30  
-  Free Zones, Special Economic Areas..................................................................................... 30  
V.  TRADE-RELATED INTELLECTUAL  PROPERTY REGIME ....................................... 32  
-  Geographical Indications, Including Appellations of Origin .............................................. 32  
-  Requirements on Undisclosed Informatio n, including Trade Secrets and Test 
Data .......................................................................................................................... ................ 33  
VI.  POLICIES AFFECTING TRADE IN SERVICES .............................................................. 33  
ANNEX 1 ....................................................................................................................... ....................... 36  
ANNEX 2 ....................................................................................................................... ....................... 42  
ANNEX 3 ....................................................................................................................... ....................... 44  
ANNEX 4 ....................................................................................................................... ....................... 46  
 
  WT/ACC/KAZ/70 
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  II. ECONOMIC POLICIES 
- Foreign Exchange and Payments 
Question 1  
Following our previous questions, including writ ten questions, paragraph 39 now states that in 
"accordance with Law No. 57, since 11 August  2009 the licensing regime (authorisation 
procedure) of currency transactions and retail trade had been fully cancelled.  At present, 
licensing requirements were applied only to exchan ge transactions with foreign currency in cash 
by exchange offices and authorised banks".  It would be useful to know more precisely what 
changed following the introduction of amendments to Law No. 57 and ask for a further 
explanation of the licensing system that is still in place. 
- Could Kazakhstan clarify the statement in pa ragraph 39 as regards the existing scope of 
licensing requirements following the amendment of Law No. 57? 
Answer: 
During the period of gradual liberalization of th e licensing regime from 2005 to 2009, licensing of the 
following currency operations and activities had been eliminated: 
1) Retail trade and provision of services for which payment is performed in cash foreign 
currency.  Under the previous regime, the licen ce was issued to persons who carried out their 
activities under the customs regime of duty free s hops, as well as on the sea, inland water, air, 
rail and road transport engaged in  international transportation; 
2) Payments based on exports (imports) exceeding the 180 days term; 
3) Purchase by residents of nonresident's securities, equity interests in investment funds - 
nonresidents, contributions by residents into the share capital of nonresidents, as well as transactions with financial derivatives between residents and nonresidents; 
4) Opening accounts in the foreign banks by physical persons-residents and juridical 
persons-residents.  Under the previous regime, the account balance and conditions of use of 
the foreign bank account were determined in accordance with a licence of the National Bank 
of the Republic of Kazakhstan. 
Thus, at present time, the above-mentioned curr ency operations are carried out without any 
restrictions.  
In accordance with Article 6 of the Law of th e Republic of Kazakhstan No. 57 "On Currency 
Regulation and Currency Control" (further - the Law No. 57) only activities of the authorised 
organizations - juridical persons established as limite d liability partnerships, so lely involved in foreign 
exchange operations, are subject to licensing. 
Question 2  
Paragraph 39 states that the licensing regime for currency transactions has been fully cancelled, 
but that registration and notification requirement s are maintained for the purpose of statistical 
monitoring.  However in paragraph 40, it is stated that under Article 8 of Law 57, the registration of a contract on currency transact ion could be refused in cases when "(i) the 
submission contained unreliable information or  did not include all information required in 
accordance with Law No. 57; and (ii) the transact ion does not comply with the legislation of the 
Republic of Kazakhstan".  This statement would seem to imply that there is a qualitative WT/ACC/KAZ/70 
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  assessment being undertaken for each contract, which would go against the submission that 
registration and notification requirements are only done for statistical purposes. 
- Could Kazakhstan clarify the statements ma de in paragraphs 39 and 40 regarding the 
registration and notification of currency transa ctions in particular with regard to their 
purpose and scope?" 
Answer: 
In accordance with paragraph 6 of Article 8 of the Law No. 57, the registration of a contract on 
currency transaction could be refused in cases wh en "(i) the submission contained unreliable 
information or did not include all information re quired in accordance with Law No. 57; and (ii) the 
transaction does not comply with the legislation of  the Republic of Kazakhstan".  In accordance with 
the Law of the Republic of Kazakhstan No. 57, th e transaction could be recognized as inconsistent 
with the legislation of Kazakhstan in case of cash  payments in foreign currency between residents 
(Article 13 of the Law No. 57), in case if paymen ts and money transfer on currency operations 
between residents and non-residents are made  without using bank accounts (Article 16 of 
Law No. 57). 
In accordance with the Resolution of the National Bank Board No. 154 "On Approval of Rules for 
Conducting Currency Transactions in  the Republic of Kazakhstan" of 28 April 2012, in order to 
register the currency transaction, the resident needed  to submit a standard application form; a copy of 
the currency transaction contract; a copy of the identif ication document - for physical persons; copy of 
state registration certificate - for juridical persons ; copy of documents, which confirm incurrence, 
performance and discharge of liabilities under the currency contract.  
Thus, there is no qualitative assessment being undert aken for each contract, which would go against 
the submission that registration and notification re quirements are only done for statistical purposes. 
- Investment Regime 
Question 3  Paragraph 52: "The Law "On Investments" also guaranteed the transparency of the activities 
of State agencies; the access to information related to investment activities (company 
registration, charter documents, licensing, etc.); a guarantee for investors to  use income at their 
full discretion; guaranteed protection of inv estors' rights in case of nationalization and 
requisition; …". 
In paragraph 52, the Report of the Working Pa rty describes the recovery of investments when 
faced with political (regulatory) risks, nationa lization and expropriation.  Article 8 of the Law 
of the Republic of Kazakhstan "On Investments" (LOI) refers to market value reimbursement 
in the case of requisition of property (Article 8,  paragraph 1 of the LOI), but not in the case of 
nationalization (Article 8, paragraph 2 of the LOI).  This Member would appreciate further information on this behalf.  
Answer: 
Nationalization procedures are stipulated in th e Civil Code of the Republic of Kazakhstan 
No. 269-XII as of 27 December 1994 (Articles 249-258) and the Law of the Republic of Kazakhstan 
No. 413-IV "On State Property" as of 1 March 2011 (Articles 37-60).    WT/ACC/KAZ/70 
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  In accordance with Article 54 of the Law "On State Property" nationalization sh all be carried out in 
public interests for the national security purposes in compliance with the established legal procedures 
and be performed without discrimination subject to  preliminary and equivalent compensation by the 
Republic of Kazakhstan of the market value of the nationalized property and other losses.   
Reimbursement of the value of property subject to nationalization and other relevant losses shall be 
carried out in full volume prior to transfer of ownership rights to the Re public of Kazakhstan.  
Reimbursement shall be carried out as one-time pa yment.  The nationalization with reimbursement by 
installments shall not be allowed. 
The actual transfer of the nationalized property co uld be carried out only after receipt of equal 
reimbursement by the owner.  
Question 4  Article 8, paragraph 1 of the LOI states that re imbursements should be in compliance with "the 
established legislation of the Republic of Kazakhstan".  This Member would like to inquire which laws (legislation on Evaluation Activiti es etc.) are meant and what concrete effect they 
possibly have on the reimbursement. 
Answer: 
Evaluation of property, purchased or alienated by th e state in case of nationalization or requisition, 
shall be performed by a valuator in accordan ce with the Law of the Republic of Kazakhstan 
No. 109-II "On Evaluation Activity in the Repub lic of Kazakhstan" as of 30 November 2000. 
The market value of the property subject to nationa lization or requisition shall be established without 
regard to its change as a result of announcement of the forthcoming nationa lization or requisition.  
Upon the request of the owner of property subject to  nationalization, a re-evaluation of the value of 
property shall be conducted as on th e date of reimbursement.   
Article 10 of the Law "On Evaluation Activity in the Republic of Kazakhstan" provides for 
independency of evaluator.  In conducting evaluatio n any interference of state or other interested 
parties into the activity of the evaluator is prohi bited in case if this could negatively affect the 
reliability of the evaluation results. 
Disputes on the reliability of evaluation results and conduction of re-valuation a nd its reliability shall 
be resolved by the court.   
Question 5  
Paragraphs 53-58 describe the "investment preferences" that are available under the Law 
"On Investments".  In paragraph 53, Kazakhstan specifically states that "the State support of 
investments involved granting of investment pref erences, which were availa ble to both domestic 
and foreign investors".  Paragraph 54 specifies th at the Ministry of Industry is responsible for 
concluding contracts on granting invest ment preferences and for monitoring their 
implementation. 
- Could Kazakhstan clarify if the conditions in which investment preferences are given (to 
domestic and foreign investors) are non-discriminatory?  WT/ACC/KAZ/70 
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  Answer: 
All juridical persons of the Republic of Kazakhstan,  regardless of the origin of their capital could 
benefit from investment preferences if an investment project proposed by them meets conditions/requirements, stipulated by the Law "On Investments".   
Question 6  
Are the criteria for benefiting from the inv estment preferences clear and mentioned in the 
legislation?  Could Kazakhstan provide further information on these criteria? 
Answer: 
Investment preferences could be granted in the form of:  
- import duty exemptions;  
- in-kind state grants;  
- preferences on land tax and property tax fo r juridical persons implementing strategic 
investment projects;  
- industrial preferences for juridical persons implementing strategic investment projects in 
socially and economically disadvantaged regions. 
The general conditions for granting investment preferences are stipulated in Articles 15 and 19 of the 
Law "On Investments".  In accordance with Article  15 of the Law, investment incentives are granted 
if following conditions are met: 
1. Investment activity should be listed in the list of priority activities or in the list of strategic 
investment projects; 
2. An applicant for investment  preferences should submit documen ts to prove its financial, 
technical and organizational capability to implement the investment project or investment strategic 
project. 
In accordance with Article 19, an application fo r investment preferences shall be accepted and 
registered by the authorised body if the fo llowing documents are provided by an applicant:  
1) a notarized copy of the certificate of state registration of a legal entity; 
2) a notarized copy of the charter of a legal entity; 
3) the business plan of the investment project or investments strategic project compiled 
in accordance with the requirements established by the authorised body; 
4) notarized copies of documents, list of whic h is established by the legislation of the 
Republic of Kazakhstan, that confirm th e estimated costs of construction and 
assembly operations and costs associated  with the purchase of fixed assets, raw 
materials and inputs to be used in impl ementation of the investment project or 
investment strategic project; 
5) notarized copies of documents indica ting sources and guaranties of the project 
financing.  
6) documents supporting the amount (value) of the state in-kind grant requested by the 
investor and the preliminary consent of th e local executive body for granting in-kind 
state grant.  
7) documents from the tax authority at the place of registration, certifying absence of 
debts on taxes,  debts relating to oblig atory pension contributions and social 
assessments.   WT/ACC/KAZ/70 
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  Additional criteria are applied to investors in order to be granted the following types of investment 
preferences:  
- Preferences on land and property tax 
An investor could be granted la nd tax and property tax preferences if the investment project is 
included into the list of strategic investment proj ects, which is currently under development by the 
Government of the Republic of Kazakhstan.   
An investment project could be included into the lis t of strategic investment projects provided that the 
following set of criteria is met:  
1. an investment project shall be directed  to production of high value added products; 
2. an investment project should be listed in the list of priority activities, approved by the 
Government Resolution No. 436 of 8 May 2003; 
3. one of the following criteria is met: 
- investment project is directed to the production of products, included into the list of 
activities on production of highly tec hnological products, approved by the 
Government of the Republic of Kazakhsta n (approved by the Government Resolution 
No. 799 of 18 June 2012 - attached in Annex 1); оr 
- the amount of investments under the investment  project is not less than  five million 
fold sum of minimum estimated inde x (approximately 55 million US dollars) 
established for the financial year accord ing to the Law on the National Budget. 
- Industrial preferences for investor implementing strategic investment projects in regions that 
are socially and economically disadvantaged. 
Industrial incentives in the form of compensation or payments for such expenditures as gas, 
electricity, purchase of land, buildings and faciliti es could be granted to a juridical person, who 
implements investment strategic project in th e regions that are socially and economically 
disadvantaged. 
Thus, similarly to land and tax property prefer ences, industrial incentives could be granted for 
implementation of the investment project, included into the list of strategic investment projects.  
The second criteria - investment project shall be im plemented in the regions that are socially and 
economically disadvantaged.   
The procedure for granting these preferences and the lis t of eligible regions shall be approved by the 
Government of the Republic of Kazakhstan.  
The procedure for granting these preferences and the lis t of eligible regions are under development.  
It is very important to note, that preferences on land tax and property ta x, as well as industrial 
preferences have not been granted yet to any inv estor, as procedures for gran ting them are still under 
the development.  
Question 7  
Are support/investment preferences available fo r all investors fulfilling the criteria or 
availability depends on the conclusion of contracts/discretion of the Ministry of industry who WT/ACC/KAZ/70 
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  can decide or not to conclude such a contract  with a particular investor and under what 
concrete conditions (paragraph 54 of the draft Working Party Report)? 
Answer: 
Provided that investor fulfills the above-mentioned set of criteria and provides all required documents, 
investment preferences are granted by the Ministry of Industry and New Technologies.  
Question 8  Paragraph 56 talks about transitional arrangements that entitle investors that have concluded 
investment contracts before 1 January 2009 to cont inue benefiting from investment preferences 
in the form of full tax exemption that are no  longer available for new investors/investment.  
The transitional period would last until the expi ration of the term specified in the contract. 
Some quantitative information on this would be welcome. 
- Could Kazakhstan provide further informatio n on the transitional arrangements in 
place that are mentioned in paragraph 56 in particular with regard to how many 
investors still benefit from the relevant in vestment tax preferences, the approximate 
amount of the benefit granted and ap proximate duration of these contracts? 
Answer: 
One hundred investment contracts had been concluded prior to 1 January 2009.  
It is important to note, that due to economic cal amities, not all investment projects have become 
operational.  Therefore, investment tax preferences are enforced not from the date of signing the investment contract, but from the date the investor started to operate the facility.  At this stage the 
Ministry of Industry and New Technologies is review ing how many projects have become operational 
in order to assess the amounts of benefits granted.  
Investment tax preferences were granted for a period not exceeding five years.  
- Competition Policy 
Question 9 
Paragraph 124 specifies Kazakhstan's merger cont rol framework.  It is not clear from the 
response however what the test is.  The response mentions that the parties may show that the anti-competitive effect is outweighed by po sitive effects for the economy.  However, no 
information is provided in terms of what is the test for a merger to be prohibited.  In another 
WTO Member it is when the transaction would h ave "a significant impediment to effective 
competition", such as by creating a dominant position.  
- Could Kazakhstan clarify what is the test for a merger to be prohibited? 
Answer: 
According to the Law of the Republic of Kazakhsta n "On Competition" (hereinafter – the Law) of 
25 December 2008 economic concentration, includi ng merger, is prohibited, if it results in 
establishing or enhancing dominant  or monopolistic position and (o r) restriction of competition.   WT/ACC/KAZ/70 
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  Therefore, the general rule is that all types of economic concentration which result in the following 
are prohibited: 
a) Establishing dominant or monopolistic position of  the market participant or a group of 
persons, or 
b) Enhancing dominant or monopolistic position of  the market participant and a group of 
persons, and/or 
c) Restriction of competition. 
At the same time, paragraph 2 of Article 55 of the Law "On Competition" stipulates that the 
Antimonopoly body has the right to approve econom ic concentration, which would lead to the 
above-mentioned consequences provided that  participants of the economic concentration prove that 
positive effects from their actions would outweigh ne gative consequences on the given goods market.  
The following could be considered as positive effects: 
1. Creation of conditions facilitating reducti on of prices for goods (works, services); 
2. Improvement  of quality of  goods (works, services); 
3. Implementation of investment projects, social programmes; etc. 
Consent of the Antimonopoly body could be granted in case if participants of the economic 
concentration fulfill specific requirements and co mmitments eliminating or alleviating negative 
impact on competition.  For instance, economic conc entration shall not result in the following:   
- restriction of competition; 
- breach of the conditions contracted with the consumers; - suspension of services being rendered; 
- deterioration of  quality of the services rendered; 
- non-fulfillment of the commitments under the investment contracts concluded with the 
Ministry of Industry and New Technologies; 
- unreasonable reduction of production or sales. 
Such conditions could include restriction in management, use or disposal of property.  
However, the Antimonopoly body could on its own in itiative or upon claim of an interested person 
change its decision on granting consent or proh ibiting economic concentration in cases, when: 
- Within three years upon adoption of a decision,  the circumstances giving reasons to reject 
such a decision where revealed; 
- A decision was adopted on the basis of unrelia ble information, which led to adopting illegal 
decision; 
- Requirements and commitments, under which the consent on economic concentration was 
granted, were not fulfilled.   
Question 10  
Paragraph 130 sets out Kazakhstan's approach to state monopolies and specifies that the State 
has the right to restrict competition by establis hing a State monopoly only in those spheres 
where sale of goods on the competitive mark et could have negative consequences for the 
constitutional system, national security, the protection of public order, human rights and freedoms, or health of people.  The State could participate in business activity in the following WT/ACC/KAZ/70 
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  cases:  (i) failure to ensure national security, na tional defense capability and protection of the 
social interests by other means; (ii) use of Stat e-owned strategic objects; and (iii) public need in 
public manufacturing of goods where competition was absent or was underdeveloped.  In other 
WTO Members, SOEs can also be created and they may receive an exemption from competition to fulfill the "Service of General Economic Interest" entrusted upon them; however, as a 
principle, SOE's are subject to competition rule s save where this would obstruct the fulfillment 
of this specific task.  Exemption in Kazakhstan seems to be unlimited. 
- Could Kazakhstan clarify the scope of the exemption for State Monopolies?  
Answer:  
First of all, there is a need to differentiate be tween the two notions such as "participation of the 
Government in commercial (business) activity" and "state monopoly".  Apparently, there is confusion 
due to incorrect structure of paragraph 130.  Thir d sentence of paragraph 130 describes participation 
of the State in commercial activity. The rest of paragraph 130 describes state monopolies.  We suggest restructuring the information in paragraph 130 accordingly.  The scope of activities of state 
monopolies is narrower than the sphere of activ ities of state enterprises engaged in commercial 
activity.   
1. The Government can participate in commercial activity in the form of the following types of 
enterprises:  (i) a state enterprise, or (ii) a juridi cal person fifty or more percent of shares (rights of 
participation) of which belong to the Government and its affiliated entities.  
Activities of state enterprises and juridical person s fifty or more percent of shares (rights of 
participation) of which belong to the Government and affiliated entities thereof, are regulated by the 
Law "On State Property" of 1 March 2011.  State enterprises can engage only in the spheres stipulated 
in Article 134 of the Law.  The list of spheres is presented in Annex 2. 
According to Article 31 of the Law "On Compe tition", the Government shall participate in 
commercial activity with a view of achieving socio- economic goals, defined by the needs of society 
and the state in the following cases: 
1) Absence of other capacity to ensure nationa l security, defense capability of the state or 
protection of society's interests; 
2) Use of strategic objects, which are in state ownership; (see more in the State ownership 
section of the WPR on this) 
3) Presence of public need in production of goods, works, and services in those spheres of public 
production, where there is no compe tition or it is underdeveloped.  
The consent of the Antimonopoly body for creating enterprises in cases listed in clauses 1 and 2 above 
is not needed.  
If establishment of such enterprises is not directly mentioned in the Laws of Kazakhstan, consent of 
the Antimonopoly body is required in the case me ntioned in clause 3 above.  According to 
paragraph 4 of Article 31 of the Law "On Comp etition", the Antimonopoly body denies creation of 
state enterprise or a juridical person by the Govern ment, if such creation leads to restriction of 
competition on the market where there is no compe tition or it is underdeveloped.  Nevertheless, the 
Antimonopoly body could grant its consent if a st ate enterprise or a juridical person undertakes 
special commitments to eliminate or alle viate negative impact to competition.   
Hence, participation of the state in commercial ac tivity is restricted by the above-mentioned criteria 
listed in Article 31 of the Law "On Competition".   WT/ACC/KAZ/70 
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  2. Article 133 of the Law "On State Property " and Article 32 of the Law "On Competition" 
stipulate that state monopolies could only be established in the form of state enterprises.  
State monopoly activities are defined in special legal acts, which clearly stipulate the types and scope 
of the activities.  The current spheres of state m onopoly are presented in Annex 3.  Approval of the 
Antimonopoly body in establishing state monopoly is not required.  
State monopolies are established by the decision of the Government.  
According to Article 32 of the Law "On Competition"  the state monopoly can restrict competition if 
realization of goods, works and services on a co mpetitive market might negatively impact 
constitutional order, national security, and protection of public order, human rights and freedoms, and 
public health.  In such occasions, th e state secures its exclusive right for production, and/or supply of 
goods, works or services.    
According to Paragraph 3 Article 32 of the Law "On Competition" state monopolies are not allowed 
to:   
- produce goods, works, services not connected with the state monopoly sphere; 
- hold shares (rights of participation in the charte r capital), and otherwise to participate in the 
activity of the legal persons; 
- transfer rights associated with the state monopoly; 
- establish prices different from the prices established by the Government.   
Therefore, the scope of restrictions for state m onopolies is strictly defined by the legislation.  
The Law No. 34-V "On Amendments and Addenda to Certain Legislative Acts on Issues of State Monopoly" introduced on 10 July 2012 provided for reduction of state monopolies, by transferring 
certain spheres to competitive market.  For instan ce, certification and registration of selective-seed 
and selective-genetic facilities located on the territory of the State forest fund, disposal of waste, 
construction and operation of la ndfills, accreditation in the sphere of conformity assessment, 
phytosanitary monitoring of extremely hazardous ha rmful organisms were no longer considered as 
state monopoly activities. 
Question 11  The draft Working Party Report does not seem to  explicitly clarify the differences between the 
concepts of "dominant or monopolistic positi on" and "monopolistic activity".  The Kazakh 
competition law's similarity between the perm itted concept of "dominant position" and the 
prohibited "monopolistic activity" can lead Kazakhstan's courts to consider a dominant 
position itself to be a prohibited monopolisti c activity resulting in heavy fines.  A correct 
definition of monopolistic activity, removed from that of dominant position, should in itself lead 
to a correct understanding of the base for the pe nalty calculation under Article 147 of the Code 
(described in paragraph 133) when the question of abuse of position would be attached to the 
definition of monopolistic activity.   
Moreover, paragraph 127 includes an addition regarding the definition of 'dominant' or 
'monopolistic' stating that "the position of market participant(s) - was recognized as dominant 
or monopolistic if such participants acquired a ca pacity to control the market". This definition 
is similar to the current Kazakh definition of monopolistic activity.  
- Could Kazakhstan clarify its understanding of  the differences between the concepts of 
"dominant or monopolistic position" and "monopolistic activity"?  WT/ACC/KAZ/70 
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  Answer: 
According to Article 8 of the Law "On Competiti on", the term "monopolistic activity" is wider than 
the term "dominant or monopolistic position".  
Monopolistic activity includes: 1. anticompetitive agreements of market participants; 
2. anticompetitive agreed actions of market participants; 
3. abuse of the dominant or monopolistic position. 
Monopolistic activity is an activity or actions perf ormed by a market participant.  Dominant or 
monopolistic position is a characteristic of a market pa rticipant, defined by its share on the market.  
Hence, when a market participant abuses its  dominant or monopolistic position it performs 
monopolistic activity.  
According to Article 12 of Law "On Competition", do minant or monopolistic position is a position of 
a market participant or several ma rket participants that allows them to control the corresponding 
goods, works, or services market, and to significantly influence the general conditions of circulation 
of goods, works, or services. 
Table 1 - Differences between Dominant or Monopolistic Position According to Article 12 
of the Law "On Competition" 
Types of market position Share on a corresponding goods market  
Dominant position of market participants 35% and more 
including:  
 Aggregated share of not more than 3 market participants 50% and more 
 Aggregated share of not more than 4 market participants 70% and more 
Dominant position of financial organizations, including:  
 Two and more financial organizations  50% and more 
 Three and more financial organizations  70% and more 
Monopolistic position of market participants  - natural and state monopoly entities; 
- 100% share of dominance.  
The dominant or monopolistic position itself is not co nsidered breach of the antimonopoly legislation. 
Article 13 of the Law "On Competition" stipulates prohibited types of monopolistic activity, including 
abuse of dominant or monopolistic position:  
- Application of different prices or conditions  to equivalent agreements with market 
participants without objectively justified reasons; 
- Establishing restrictions for distribution of  goods, works or services based on  territorial 
factors, group of customers, purchasing conditions, and also quality and price; 
- Preconditioning or imposing to conclude an ag reement where market participant would accept 
additional obligations, which in essence or ac cording to customary business practice are not 
related to the subject of such agreements; 
- Unreasonable refusal to conclude an agreemen t with independent customers while having the 
ability to produce or sell the good, work or ser vice.  This also includes deviation from 
concluding such an agreement within 1 month of such request. 
- Preconditioning supply of goods, works or services to accept restrictions for purchasing 
goods, works or services produced or sold by competitors;  WT/ACC/KAZ/70 
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  - Unjustified reduction of volumes of production and/or supply, including production and/or 
supply of goods, works or services, for wh ich there is demand or customer orders.  
Kazakhstan's legislation does not provide penalt y for dominant or monopolistic position itself.  
For instance, paragraph 3 of Article 147 of the Code on Administrative Violations envisages that 
penalty for conducting monop olistic activity is imposed only in cases of abuse of the dominant or 
monopolistic position.  Article 196 of the Criminal Code establishes penalty for actions, intended to 
restrict competition.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 12  There remains to be seen much of the detail of how the Customs Union will influence the 
policies and measures of Kazakhstan in relation to its accession to the WTO.  
- As previously raised in the Plurilateral m eetings on SPS, TBT, Agriculture and TRIMs, 
could Kazakhstan please provide further de tails on how the Customs Union will 
influence the policies and measures of Kazakhstan in relation to its accession to the WTO? 
Answer: 
In November 2011, Kazakhstan has ratified the Agreement on Functioning of the Customs Union 
within the Framework of the Multilateral Trading Sy stem.  According to the Agreement, terms of 
accession of the CU Parties shall constitute a part of the CU legal framework.   
In particular, the CU legal framework shall comprise the Protocols on WTO accession of the Parties 
including the commitments on issu es related to the competence of the CU bodies and those covered 
by the CU treaties.  Therefore, the first CU Pa rty acceded to the WTO shall inform and agree the 
commitments which require amendments to the lega l framework of the CU with other Parties.  
In negotiations on systemic issues related to th e competence of the CU bodies, every new Party 
acceding to the WTO shall aim to accept commit ments corresponding to the commitments of the 
Party which was first to become a member of the WTO.  Major differences in commitments shall be 
subject to discussions between the Parties. 
Parties shall take measures to bring the CU legal fra mework in compliance with the WTO rules.  Prior 
to incorporation of the WTO commitments undertak en by the CU Party into the legal framework 
provisions of the WTO Agreement shall ha ve a priority over the CU agreements. 
Rights and obligations of the Parties under the WTO Agreement shall not be subject to revocation or 
limitation by decision of the CU bodies. 
Any international agreements within the CU shall be concluded in compliance with the 
WTO Agreements. 
The Treaty on Functioning of the Customs Union within the Framework of the Multilateral Trading 
System is available through document WT/ACC/KAZ/69. WT/ACC/KAZ/70 
Page 12  
 
  IV. POLICIES AFFECTING TRADE IN GOODS 
- Registration Requirements For Import and Export Operations  
Question 13  Paragraph 186 states that only declarants or their representatives registered for that purpose 
can perform the customs activities associated with  the importation or exportation of goods, and 
that pursuant to Article 284 of the Customs Code  of Kazakhstan as well as Article 186 of the CU 
Custom Code, the declarant has to be a natural or judicial person of one of the CU parties.  
- Could Kazakhstan confirm that the State registration of a foreign company is in fact a 
creation of a subsidiary in Kazakhstan a nd such a registered company can become a 
declarant?  Does this mean that a bran ch of a foreign company registered in 
Kazakhstan cannot become a declarant? 
Answer: 
Pursuant to Article 3 of Law No. 2198 "On State Registration of Juridical Persons and Statistical 
Record-Keeping Registration of Branches and Repre sentative Offices" of 17 April 1995, all juridical 
persons established on the territory of Kazakhstan are subject to mandatory state registration.  
Branches and representative offices of juridical pe rsons located on the territory of Kazakhstan are 
subject to record registration without obtaining the right of the juridical person.  
In accordance with Article 186 of the CU Custom s Code, only juridical person of a CU Party can 
become a declarant.  Therefore, a subsidiary of a foreign company registered as a juridical person of 
Kazakhstan can become a declarant.  
Pursuant to Article 186.2 of the CU Customs C ode, the following foreign persons can become a 
declarant:  (i) a natural person moving goods for pers onal use; (ii) persons using customs preferences 
in accordance with Chapter 45 of the CU Cust oms Code (diplomatic missions, international 
organizations, etc); (iii) organizations that estab lished a representative office in a CU Party upon 
application of customs procedures of temporary import and re-export , and customs procedure of 
release for domestic consumption only for goods impor ted for the personal use of such representative 
offices; (iv) a person entitled to dispose the goods outside of the contractual arrangements with a 
person of a CU Party.    
Question 14  
Paragraph 192 states that in order to register,  foreign companies have to submit certain 
additional documents, in particular:  (i) a no tarized and consularised (legalised) document 
certifying that the applicant was established in accordance with the legislation of the foreign 
country, accompanied by a notarized translation in Kazakh and Russian languages; and (ii) a 
copy of the identification papers of the pe rson registering the company (e.g., passport, 
identification card, or residency permit), acco mpanied by a notarized translation in Kazakh and 
Russian languages.  The report further specifies that this requirement is not discriminatory in 
nature as it applies to all judicial persons with foreign participation. 
- Is the requirement for translations into bo th languages not too burdensome?  What is 
the reason to require translation into both lang uages?  If this requirement was meant to 
be non-discriminatory in nature, why is it no t applied also to judicial persons without 
foreign participation (at least as regards the language requirement)?  WT/ACC/KAZ/70 
 Page 13 
 
 
  Answer: 
The requirements for translation of documents into state (Kazakh) and Russian languages are 
stipulated in the Law "On Languages in the Republic of Kazakhstan" of 11 July 1997 (hereinafter – 
the Law "On Languages").  In accordance with Arti cle 8 of the Law "On Languages", the official 
languages of correspondence in the state bodies or  organizations of Ka zakhstan are Kazakh and 
Russian languages.  In addition, pursuant to Article 10 of the Law, statistics record-keeping shall also 
be carried out in both languages.  
Requirements for providing documents in both languag es apply irrespective of the origin of a founder. 
Companies of Kazakhstan without foreign particip ation must also submit the documents in Kazakh 
and Russian languages.  In particular, pursuant to  Article 6 of the Law "On State Registration of 
Juridical Persons and Statistical Record-Keepin g Registration of Branches and Representative 
Offices" of 17 April 1995, a charter in two langua ges (Kazakh and Russian) shall be submitted for the 
registration of a juridical person.  Therefore, th e requirement to translate documents into both 
languages is non-discriminatory.  
Question 15  
Paragraph 195 refers to concerns by some Wo rking Party Members concerning registration 
fees in connection with the requirement for re-registration and duplicate registration.  
- How does Kazakhstan plan to bring its re gistration fees into conformity with 
Article VIII of the GATT 1994 prior to WTO accession? 
Answer: 
Registration fees reflect the cost of services rendered.  Pursuant to the Methodology for Calculation of 
Fees for State Registration of Juridical Persons, approved by Order of the Ministry of Economy and 
Budget Planning No. 135 of 28 October 2005, the following costs are calculated, inter alia,  utility 
cost, communication services cost, heating cost, elect ric power cost, other services and works directly 
related to the process of rendering services, etc. All actually incurred expenses are calculated per one 
state employee.  Thus, registration fees are calculate d based on the cost of services rendered, which is 
in conformity with Article VIII of the GATT 1994. 
The registration fee for small businesses is 2 Monthly Calculated Indices (approximately US$22 
in 2012) and the fee for other juridical persons is 6.5 Monthly Calculat ed Indices (approximately 
US$71 in 2012).  This difference is caused by the different level of costs /resources involved.  Less 
time and resources are required for the assessment of documents submitted by small businesses due to 
less number of documents.  Therefore, the cost of service rendered is less than for the registration of 
other juridical persons. 
It should also be noted that re-registration fees ar e the same as for the state registration as established 
by Article 456 of the Tax Code.  Re-registration process involves the same procedures as for the state 
registration in terms of time and resource need ed for the assessment of submitted documents by 
registration authority.  
Pursuant to Article 42 of the Civil Code of Kaza khstan of 27 December 1994 state re-registration of 
the juridical persons are required in the follo wing cases:  (i) reduction of the charter capital; 
(ii) change in the name of the company; and (iii) ch ange in the structure of company's participants.   WT/ACC/KAZ/70 
Page 14  
 
  - (c) Goods with Encryption Technology 
Question 16 Paragraph 212 states that pursuant to paragraph 11 of the CU Encryption Regulations, the 
importation of certain products with encryptio n capabilities, including "mass market goods", 
are subject to a one-time notification.  It does no t require either an import licence or an activity 
licence. 
- Could Kazakhstan explain whether the produc tion and distribution of similar domestic 
products are subject to a similar notification requirement? 
Answer: 
It should be noted that notification procedure does not apply to distribution and production. 
Notification merely allows goods with encryption technology to move across the customs border of 
the Customs Union.  Practically, notification fu lfills the function of automatic import licence.  
However, for distribution of goods with encryption technology on the territory of the Republic of Kazakhstan, an activity licence is require d for both domestic and imported goods.  
A. IMPORT REGULATIONS 
- Ordinary Customs Duties 
Question 17  
High Quality Beef tariff lines appear to be subj ect to a TRQ regimen with a duty of 25 per cent 
but not less than 0.3 euro/kg.  Nevertheless, in the Russian Federation Goods Schedule those 
tariff lines are subject to a "tariff only regime" with a duty of 15 per cent.  Could you clarify the regime that Kazakhstan will be applied to HQB tariff lines? 
Answer:  
Currently, High-Quality Beef (HQB) is not covered by the TRQ within the CU.  Upon the Russian Federation's accession to the WTO,  CU Parties made amendments to the Common 
External Tariff (CU CET), taking into account co mmitments made by the Russian Federation upon 
WTO accession.  
According to the revised CU CET and CU HS C ode, approved by the Decision of the Eurasian 
Economic Commission (EEC) No. 54 of 23 August 2012, CET rate for HQB is set at 15 per cent - out 
of quota regime if its customs value – is not less than 8,000 euro per 1,000 kg net weight. 
A footnote No. 12 to the CU HS Code specifies that a 15 per cent tariff rate can only be applied, once 
the authorised body of the CU Party confirme d that imported meat is classified as HQB.  
The confirmation procedure will be approved by  the Decision of the EEC.  Currently, the 
Russian Federation is in the process of developing su ch a procedure.  Kazakhs tan will be applying the 
same procedure.  WT/ACC/KAZ/70 
 Page 15 
 
 
  - Tariff Exemptions 
Question 18  
In paragraph 241 and Annex 6, Kazakhstan lists sensi tive products where a decision on the level 
of import duties shall be taken by the Customs Union Commission.  This list includes meat and 
dairy among many other items. 
- Could Kazakhstan please explain the reason for these products being sensitive and the 
rationale for so many products being included? 
Answer: 
In accordance with the Treaty on Eurasian Economic  Commission (hereinafter - EEC), decision on 
changes in the levels of import duty rates is norma lly made by Collegium of the EEC by a two thirds 
qualified majority of votes.  
However, the levels of import duties for goods includ ed into the list of sensitive goods (Annex 6 to 
the Working Party Report), could be changed only upon an agreement of all CU Parties by consensus.  
These goods are subject to the duty rates established by the CU CET. 
Goods could be regarded as "sensitive" when they:  (i) are not produced or insufficiently produced in 
the CU, (ii) are socially important, i.e. necessary  to satisfy vital needs of human or national 
production, (iii) and goods, with re gard to which changes to the le vels will negatively result on the 
national production (for instance,  meat and dairy products). 
The rationale for inclusion of the large number of products into the list of sensitive goods was due to 
the fact that this is the cumulative list of goods de termined by each of the three CU Parties as sensitive 
based on the above set of criteria. 
- Tariff Rate Quotas 
Question 19  
On TRQs, we note the new section included on TRQs in the current draft of the Working Party 
Report.  This is the first time this section has been included in the draft and given its complexity 
and commercially sensitive nature, will warran t extensive consultations with Members.  
We would note with some disappointment the move to introduce TRQs in 2010 and would 
suggest the insertion of language similar to that  contained in the Russian Federation's Working 
Party Report as follows:   
 "Members considered that the introduction of TRQs had been a step backward from 
the trade liberalisation that should be exp ected by acceding to the WTO and that, in 
their view, a tariff-only regime would be prefer able as it would allow for the market to 
select suppliers that provided the best combination of price, quality and stable offer of goods". 
Answer: 
Kazakhstan took account of this comment and ma de necessary amendments in the section.  
The proposed language was placed as the first paragraph of the section as follows: WT/ACC/KAZ/70 
Page 16  
 
   "Some Members considered that the introduction of TRQs had been a step backward from the 
trade liberalization that should be expected by  acceding to the WTO and that, in their view, a 
tariff-only regime would be preferable as it woul d allow for the market to select suppliers that 
provided the best combination of price, quality, and stable offer of goods.  They requested a description of the current and prospective legal authority for introducing TRQs and 
determining the rules for allocating quota among importers as well as any related licensing 
procedures in Kazakhstan and in the CU".   
Question 20  
We question the relevance of the reference in paragraphs 256 and 267 to the allocation of 
country specific quotas, given in paragraph 265 Kazakhstan explained that it did not allocate 
country-specific TRQs.  We further note any cons ideration of the introduction of CSQs would 
fundamentally alter the market access negotiations of the accession package. 
Answer: 
As regards paragraph 256, Kazakhs tan took account of this comment and removed the paragraph from 
the draft section. 
Paragraph 267 contains conditi onal case statement – if Kazakhsta n would apply country-specific 
allocations, it would ensure re-allocation of unused TRQs. 
With regards to the introduction of CSQs, in Kazakhstan TRQs are annually allocated among the 
foreign trade participants on the basis of the "histo rical principle".  At the same time, taking into 
account that Kazakhstan's TRQs are of small volumes in contrast to those vo lumes, allocated by the 
Russian Federation, Kazakhstan does not allocate country-specific TRQs.  
Question 21 We note the reference in paragraph 258 to the treatment of “new entrants” and would question 
how this would be consistent with Article 5 of the Customs Union Agreement on TRQs which 
requires the allocation method to be non-discri minatory with respect to market share. If a 
country is trading within the in-quota rate presumably they would have a better chance of 
higher volumes of trade given the lower costs of importation. 
Answer 
Kazakhstan's mechanism on TRQs allocation is consis tent with the provisions of the WTO Agreement 
on Import Licensing Procedures.  As pursuant to the CU Agreement on TRQs, the method of TRQs 
allocation among traders in the CU Parties, includi ng Kazakhstan, is non-discriminatory with respect 
to the form of ownership, place of registration or market share.  
Question 22  We consider that paragraph 261 and Annex 11 warrant much more explanation to Members 
about why the two stage formula is required.  We note that the paragraph also states that fresh chilled beef would be allocated on a "first come, first served basis", does this mean it is excluded 
from the formula?  WT/ACC/KAZ/70 
 Page 17 
 
 
  Answer: 
Fresh or chilled beef is excluded from the formul a specified in Annex 11.  The TRQs for imported 
beef, fresh or chilled (HS Code 0201) are allocated on a "first come, first served" basis.  
Question 23  
Could Kazakhstan please clarify whether impo rters/traders need to be "residents of 
Kazakhstan" in order to receive allocations (p aragraph 265 refers).  Could importers be trading 
elsewhere within the Customs Union be e ligible to apply for import licenses? 
Answer: 
According to the methodology approved by the Government Resolution No. 269 of 24 March 2011, 
the TRQs volumes in Kazakhstan are allocated to historical suppliers, who determined based on 
customs statistics.  Customs statistics, in its turn , is based on customs declarations, where the importer 
acts as a declarant. In ac cordance with Article 186 of the CU Cu stoms Code, only juridical person of a 
CU Party can become a declarant. 
Accordingly, for the purposes of receiving TRQs a llocations in Kazakhstan importer need to be a 
resident, juridical person of Kazakhstan.  
Based on the above, importers, trading with the othe r CU Parties, who are not juridical persons of 
Kazakhstan, cannot apply for import licenses with the purpose to import meat under the TRQ system 
to Kazakhstan.   
Question 24  
Kazakhstan has not applied any TRQs to import s before 2010.  Which are the steps Kazakhstan 
has undertaken to guarantee a distribution of tr ade among the interested parties that resembles 
the distribution that would result in the absence of the quantitative restriction?   
Answer: 
In Kazakhstan TRQs are annually a llocated among the foreign trade participants on the basis of the 
"historical principle".  At the same time, taking into account that Kazakhstan's TRQs are of small 
volumes in contrast to those TRQs, allocated to the Russian Federation, Kazakhstan does not allocate 
country-specific TRQs.  
Question 25  
Could Kazakhstan provide a detail description of  the tariff quota administration methods 
applicable? 
Will Kazakhstan provide full information on th e volumes covered by the licenses delivered and 
the effective imports of the quota year?  
Answer: 
The CU Agreement "On Conditions and Mechanism of Implementation of Tariff Rate Quotas" of 
12 December 2008 stipulates the general framework  for establishment of tariff rate quotas in the 
CU Parties. WT/ACC/KAZ/70 
Page 18  
 
  According to the Agreement, the TRQs volumes of imported goods shall not exceed the difference 
between the volume of consumption and production of the like product in the CU Parties.   
The TRQs volumes for each CU Party (the Republic  of Belarus, the Republic  of Kazakhstan and the 
Russian Federation) are annually established by th e Decision of the Eurasian Economic Commission. 
At present, TRQs are applied on impor ts of beef, pork, and poultry.  
By Decision No. 865 of 9 December 2011, the CU Commission approved the following TRQs 
volumes for the CU Parties for 2012: 
HS Code Product Name Volumes of TRQ for 2012, tonnes 
RB RK RF 
0201 Beef, fresh or chilled 2,500 20 30,000 
0202 Beef, frozen 2,500 13,900 530,000 
0203 Pork 60,000 9,400 400,000 
0203 29 550 2  Pork trimmings 30,000 
0203 29 900 2 
0207 Poultry 15,000 110,000 330,000 
Government Resolution No. 269 "On Certain Issues of Allocation of Tariff Rate Quotas Volumes for 
Importation of Certain Types of Meat" of 24 March 2011 stipulates rules for TRQs distribution 
among suppliers/importers.   
Pursuant to the Resolution, the TRQs volum es are allocated between suppliers/importers 
proportionally to the volume of goods imported by th em during the previous period (two years prior 
to the year of TRQs establishment), i.e. based on "historical principle".  
Data on actual volume of imports is provided by the Customs Control Committee of the Ministry of 
Finance of Kazakhstan on the basis of electronic copies of customs declarations.   
Taking into account that at the time of TRQs allo cation (by 31 December), customs statistics for the 
preceding year is not yet available, the distributi on of TRQs volumes is implemented on the basis of 
two preceding years data in 2 stages:   
- 1 stage:  by 31 December - distribution of 25 per cent of the TRQs volumes based on the data 
of the 1st year of the previous period and nine months of 2nd year of the previous period; 
- 2 stage:  by 1 April - distribution of the remaining 75 per cent of in-quota volume. 
Pursuant to the CU Agreement on TRQs, customs cl earance of goods subject to TRQs shall be made 
in that CU Party, in which the trader receive d its TRQ share.  The imported goods shall be 
accompanied with an original licen se, issued by the authorised st ate body – the Trade Committee of 
the Ministry of Economic Development and Trade of Kazakhstan.  
Licensing procedure is implemented in accordan ce with the CU Agreement "On the Rules of 
Licensing in the Area of Foreign Trade in Goods" of 9 June 2009.  Licenses are issued within 15 working days from the date of submission of th e following documents:  (i) an application for a 
licence; (ii) an electronic copy of the application; (iii) a copy of a foreign trade agreement (contract); 
(iv) a copy of the registration document in tax au thorities; and (v) a document confirming payment of 
a licensing fee.   WT/ACC/KAZ/70 
 Page 19 
 
 
  This set of documents shall be submitted to th e Trade Committee of the Ministry of Economic 
Development and Trade.  Licenses remain valid until the end of the calendar year in which they were 
issued.  
Question 26  
Moreover, does Kazakhstan current legislation on TRQ administration cover re-allocation of 
underfill quota volumes?   
Answer: 
Kazakhstan does not re-allocate unused TRQs as  Kazakhstan's TRQs are of small volumes. 
Furthermore, current practice shows that allocated  TRQs are fully used during the quota year.   
Question 27  
Paragraphs 258 and 259 specify that a ‘new entran t' has to import beef, pork or poultry under 
the out-of-quota duty rate in order to be included later in the list of historical suppliers, which 
eventually leads to in-quota allocations fo r the importer.  In paragraph 267, Kazakhstan 
commits itself following accession to the WTO to provide opportunities for new entrants seeking 
access to in-quota allocations. 
- Could Kazakhstan clarify how it intends to implement this commitment? Answer: 
Pursuant to the rules on allocating of the TRQs amo ng the foreign trade participants, approved by the 
Government Resolution No. 269 of 24 March 2011, the TRQs volumes are allo cated on the basis of 
"historical principle". 
"New entrants" are the suppliers/importers, who im ported meat at the out-of-quota import duty rates 
during the year prior to the year of TRQs establis hment. Accordingly, a new company should import 
meat with no licence during the year at the out-of-q uota duty rates, to be automatically subject to 
in-quota imports on the second year.  
Question 28  
Paragraph 262 refers to concerns expressed by a Member concerning delays in allocating the 
2012 TRQ volumes.  Kazakhstan had clarified that  the necessary Decree would be signed in the 
nearest future.  
- Could Kazakhstan inform the Members wh ether the Decree for 2012 TRQ has already 
been signed and give a reference to this act? 
Answer: 
The Government Resolution No. 1085 on allocated TRQs volumes for the year 2012 has already been 
signed on 24 August 2012.  The delay was caused due to  the problems related to accuracy of customs 
statistics.   WT/ACC/KAZ/70 
Page 20  
 
  Question 29  
Paragraph 264 states that work is underway to elaborate a mutually acceptable solution 
between Kazakhstan and Working Party Members concerning TRQs on poultry. 
- Could Kazakhstan elaborate on the progress made in the negotiations for a mutually 
acceptable solution? 
Answer: 
The volume of TRQs for poultry imports into Kazakhs tan is currently under negotiations with the key 
suppliers of poultry to Kazakhstan.   Kazakhstan expects to conclude  these negotiations in the near 
future.  
Question 30  
In paragraph 267 Kazakhstan undertook to pr ovide for allocations under the TRQs in 
commercially viable quantities.   
- Could Kazakhstan clarify what steps it has taken to fulfill this commitment? 
Answer: 
According to the Government Resolution No. 269,  commercially viable quantity is the minimum 
amount of 25 kilograms.  For instance, for poultry minimum amount would be one packing unit, not 
less than 25 kilograms. 
The import licenses are issued for that volume of meat , which is indicated in the application form by 
the supplier/importer.  The supplier/importer in its  turn is eligible to apply for the volume not 
exceeding its yearly volume under the allocated TRQs.  
Question 31  
Paragraph 267 also includes a commitment to pr ovide TRQ allocations in commercially viable 
quantities.  This Member would appreciate recei ving a more detailed explanation of how this 
commitment will be implemented. 
Answer: 
According to the Government Resolution No. 269,  commercially viable quantity is the minimum 
amount of 25 kilograms.  For instance, for poultry minimum amount would be one packing unit, not 
less than 25 kilograms. 
The import licenses are issued for that volume of meat , which is indicated in the application form by 
the supplier/importer.  The supplier/importer in its  turn is eligible to apply for the volume not 
exceeding its yearly volume under the allocated TRQs. 
Question 32  
In response to previous concerns raised by Me mbers, in paragraph 267 Kazakhstan commits to 
administering TRQs in a manner that is co nsistent with the WTO Agreement on Import 
Licensing Procedures and other relevant WTO Ag reements.  This paragraph includes a specific  WT/ACC/KAZ/70 
 Page 21 
 
 
  commitment to provide an opportunity for new entrants (i.e. importers) seeking access to 
in-quota allocations.  
From our bilateral discussions, we understand that the implementation of a provision to provide 
an opportunity for new entrants seeking a ccess to in-quota allocations is still under 
consideration in Kazakhstan.  This Member stro ngly encourages Kazakhstan to implement such 
a provision.  In this Member's experience, such a provision is important to ensuring that quota 
administration is sufficiently flexible to reflect changing market realities and promote competition and economic efficiency.  This Memb er has much experience in dealing with the 
challenges of developing appropriate TRQ admi nistration systems and would be pleased to 
share our experiences with Kazakhstan. 
Answer: 
Pursuant to the Rules on Allocating of the TRQs Among Foreign Trade Participants, approved by the 
Government Resolution No. 269 of 24 March 2011, the TRQs volumes are allo cated on the basis of 
"historical principle". 
"New entrants" are the suppliers/importers, who im ported meat at the out-of-quota import duty rates 
during the year prior to the year of TRQs establis hment.  Accordingly, a new company should import 
meat with no licence during the year at the out-of-quota  duty rates in order to be automatically subject 
to in-quota imports on the second year.   
- Application of Internal Taxes to Imports 
Question 33  Paragraph 279 states that VAT is levied on domestic products on the basis of the volume of 
taxable turnover.  
- Could Kazakhstan explain further what is meant by the volume of taxable turnover? 
Answer: 
In accordance with paragraph 1 of Article 230 of th e Tax Code of the Republic  of Kazakhstan taxable 
turnover is a VAT payer's: 
1) sales turnover of goods, works and services in the Republic of Kazakhstan, except for 
non-taxable turnover referred to in Article 232 of the Tax Code1; 
2) sales turnover of works and services purchased from a non-resident who is not a VAT payer 
in the Republic of Kazakhstan and not carry ing out business activities through a branch or 
representative office. 
The sales turnover of goods means the transfer of  ownership of goods, including the sale of goods, 
donations of goods, financial leasing.  The sales turnover of works and services means any provision 
of works and services, including free of charge, as well as any activity carried out for remuneration 
other than the sale of goods. 
                                                      
1 According to Article 232 of the Tax Code non-taxable turnover is a turnover of goods, works and 
services that are: 1) exempted from VAT according to the Tax Code; 2) sold outside of the territory of the 
Republic of Kazakhstan. WT/ACC/KAZ/70 
Page 22  
 
  According to the Tax Code (Article  238, paragraph 1) the amount of taxable turnover is the cost of 
sold goods, works and services based on the prices and tariffs applied by the parties to a transaction 
excluding the value added tax. 
Question 34  
In paragraphs 286 to 289, Kazakhstan details a VAT exemption scheme for agricultural 
producers and processors. 
- Could Kazakhstan please provide further information on how the scheme operates, 
including the calculations provided as an e xample of the operation of the scheme during 
the Working Party meeting of 24 July? 
Answer: 
The Tax Code of the Republic of Kazakhstan prov ides for preferences for (i) juridical persons - 
processors of agricultural products (hereinafter - ag ricultural processors) and (ii) juridical persons - 
producers of agricultural products, products of a quaculture (fish-breeding) and rural consumer 
cooperatives (hereinafter – agricultural producers)  in the form of 70 per cent reduction of VAT 
payable to the budget.   
VAT payable to the budget is usually calculate d as the difference between the VAT charged from 
sales of products and the VAT paid for inputs (goods, services).  
1) In any case agricultural producers or processors include 12 per cent VAT into the price of the 
goods they sell to the consumer.  Thus, the price of a final product includes 12 per cent VAT.  
2) Then they calculate the VAT payable to the budget by deducting VAT paid for inputs from 
sum of VAT charged from sales of their products:  
VAT payable to the budget = VAT charge d from sales – VAT paid for inputs 
3) Then they reduce the resulting sum of the VAT payable to the budget by 70 per cent.  Thus, in 
fact, agricultural producers or processors pay to the budget only 30 per cent of the VAT payable to the budget, and keep the remaining 70 per cent: 
Preferential VAT payable to the budget = VAT payable to the budget – (70%* VAT payable to the 
budget) 
Example 1: 
Agricultural producer sells his product for 55 tenge.  He buys agricultural raw materials (e.g. milk) for 
45 tenge per liter (inputs). 
Then: 45 + 10 = 55 (inputs + income); 
45 / 1,12 * 0,12 = 4,8 (VAT to be deducted); 
55 * 12% = 6,6 (sum of the VAT charged from sales); 
6,6 – 4,8 = 1,8 (VAT payable to the budget);  1,8 – (70% * 1,8) = 0,54 (VAT actually payable to the budget)      WT/ACC/KAZ/70 
 Page 23 
 
 
  1,26 (the sum of the VAT kept by the agricultural processor)  
Example 2 
In cases when the agricultural processor buys his inputs from the non-payer of VAT the scheme will 
be as follows:   
45 + 10 = 55 (inputs + income); 
55 * 12% = 6,6 (sum of the VAT charged from sales);  
VAT to be deducted = 0  6.6 – 0 = 6,6 (VAT payable to the budget) 6,6 – (6,6 * 70%) = 1,98 (VAT actually paid to the budget);   
4,62 (the sum of the VAT kept by the agricultural processor) 
Thus, in the this case, if no preference in the fo rm of 70 per cent reduction of VAT payable to the 
budget was available for an agricultural processor, he would have to pay to the budget 6.6 tenge, 
because the VAT to be deducted equals 0 tenge.  This would have put the domestic agricultural 
processors at a disadvantaged position compared to  importers, who deduct the VAT for imports that 
they paid upon importation when calculating the VAT payable to the budget. 
Question 35  
Could Kazakhstan give further explanation on how this scheme does not discriminate between 
the producers of domestic and imported agricultural products. 
Answer: 
As it can be seen from the calculations above, in fact, the price of both imported and domestic 
agricultural products includes 12 per cent VAT when they are sold.  Thus, imported products are not 
discriminated against domestic products at the sales stage.  The preference is granted to the 
agricultural producers and processors at the stage wh en the sum of the VAT payable to the budget is 
calculated.  Agricultural producers and processors pay to the budget only 30 per cent of the VAT 
payable to the budget, and the remaining 70 per cen t of the VAT that producers/processors keep are 
de facto  a subsidy.  Thus, in this case, the Government  grants a subsidy to agricultural producers and 
processors and it should be considered under the Agreement on Subsidies and Countervailing 
Measures.  The subsidy is not prohibited because it is not contingent on im port substitution or export 
performance.  
Question 36  
We expect that any domestic support or s upport contingent upon export for agricultural 
products resulting from the scheme will be a ppropriately reflected in the relevant tables. 
Answer: 
Initially Kazakhstan included tax preferences, incl uding VAT preferences in early domestic support 
tables of 1996-1998.  However, upon request of  the Members, Kazakhstan excluded the tax 
preferences from the tables as not falling under the domestic support reduction obligations of the 
WTO Agreement on Agriculture.  Similarly, notif ications of WTO Members do not include tax WT/ACC/KAZ/70 
Page 24  
 
  preferences as well.  Therefore, Kazakhstan did not include tax preferences in its domestic support 
tables.  
Question 37  
In paragraph 289, the representative of Kazakhstan explains that the VAT tax regime applied 
to agriculture producers and pr ocessors does not discriminate against imports, but rather is 
considered a subsidy to producers and processors of agricultural products. 
It is not apparent to this Member that these su bsidies are reflected in Kazakhstan's supporting 
tables on domestic support in WT/ACC/SPEC/KAZ/6/Rev.6.  Could Kazakhstan confirm that it intends to reflect these subsidies in it s supporting tables on domestic support? 
Answer:  
Kazakhstan included tax preferences, including VAT preferences in early domestic support tables of 
1996-1998.  However, upon request of the Member s, Kazakhstan excluded the tax preferences from 
the tables as not falling under the domestic support reduction obligations of the WTO Agreement on 
Agriculture.  Similarly, notifications of WTO Members do not include tax preferences as well.  Therefore, Kazakhstan did not include tax preferences in its domestic support tables. 
(a) Quantitative import restrictions, including prohibitions and quotas 
Question 38  
In paragraph 301 Kazakhstan confirmed that fr om the date of its WTO accession it would 
comply with Article 4.2 of the WTO Agreement on Agriculture.  
- Could Kazakhstan explain what steps it  has taken to ensure such compliance? 
Answer: 
At the moment Kazakhstan does not maintain any measure relating to Article 4.2 of the 
WTO Agreement on Agriculture, i.e. quantitative impor t restrictions, variable import levies, minimum 
import prices, discretionary import licensing, etc.  on agricultural goods.  Therefore, Kazakhstan's 
currently applied policy is consistent with Ar ticle 4.2 of the WTO Agreement on Agriculture.  
(b) Import Licensing 
Question 39  Paragraph 316 refers to Article 3.5 of the CU Licensing Agreement and lists the types of 
documents required for the purpose of obta ining non-automatic import licenses.  
The paragraph also refers to "other documents, as required".  
- Could Kazakhstan explain what could those other documents be and which legal acts 
would determine them? 
Answer: 
The Agreement "On the Rules of Licensing in the Area of Foreign Trade in Goods" signed on 
9 June 2009 determines the requirements for obt aining non-automatic import/export licence.   WT/ACC/KAZ/70 
 Page 25 
 
 
  According to Article 3.3 of the Agreement on Licen sing the following documents must be submitted: 
- an application for a licence; 
- an electronic copy of the application; 
- a copy of the contract; 
- a copy of a certificate confirming that the app licant was registered with a regional tax 
authority as a tax-payer; 
- a copy of the activity licence (if applicable); 
- other documents if they are determined by a decision of the CU Commission (the Eurasian 
Economic Commission) on the basis of which licensing requirement for goods is applied. 
Other documents are specified in separate Regulati ons on introduction of restrictions adopted by 
Decision No. 19 of the Interstate Council of 27 November 2009.   
For instance, additional documents related to saf ety requirements for a lim ited number of specific 
goods are established in Regulations on the orde r of movement of goods, such as ozone-depleting 
destroying substances, hazardous wastes, plant protec tion chemicals, special technical devises, etc.   
Question 40  
Paragraph 332 refers to comments made by  a Working Party Member concerning the 
burdensome nature of Kazakhstan's registrat ion process.  A major concern was that 
registration for imported products took about a year to renew, whereas a registration for locally 
produced generic products was renewed in about a month.  In addition, the renewal process required the same procedures as the original registration.  Kazakhstan clarified in 
paragraph 333 that no discrimination exists under national or CU legislation and specified that 
state registration had to be conducted within 227 days while re-registration within 137 days.  
Despite the clarification set in our paragraph 333, our industry continues to complain about the 
excessive length of registration and renewal of re gistration for imported vs. local products.  
According to Kazakh legislation, the original regis tration of a medicine and renewal should take 
about six months.  However, in practice, regis tration as well as renewal of registration of 
imported medicines takes more than a year.  In comparison, domestic products (mainly 
generics) can be registered within one month.  In  addition, there seem to be plans to introduce 
an accelerated procedure for domestic produc ts, without providing exact timelines for the 
registration procedure.  
- Could Kazakhstan explain where the differences between the legislation and actual 
practice come from and how these differences will be removed? 
Answer: 
The rules on state registration, re-registration and introduction of changes in registration record of 
medicines, products of medical pur pose and medical equipment (hereina fter – the Rules), approved by 
Order No. 735 of the Minister of the Public Hea lth of Kazakhstan of 18 N ovember 2009, establish the 
order of providing state registration (re-registration)  of medicines, products of medical purpose and 
medical equipment.  The established order has been  significantly harmonized with the requirements of 
the EU legislation.  
In accordance with the Rules and standard of stat e service "State Registration, Re-Registration and 
Introduction of Changes in Registration Record of  Medicines, Products of Medical Purpose and 
Medical Equipment", approved by Government Resolution No. 351 of 4 April 2011, state registration WT/ACC/KAZ/70 
Page 26  
 
  is conducted within 227 days from the date of submission of documents.  The period for 
re-registration and accelerated state registration of medicines takes 137 days.  Similarly, in the EU member-states, according to the Directive (2001/83/ EC) of the European Parliament and the Council 
"On the Community Code Relating to Medicinal Pr oducts for Human Use" of 6 November 2001, state 
registration of  pharmaceuticals takes from 277 to  300 days, including 210 days for obtaining 
conclusion on a conducted assessment.  Accelerated state registration and re-registration shall be 
conducted within 120 days.  
It should be mentioned that conditions for state registration and accelerated state registration are 
identical for locally produced and imported pharmaceuticals in Kazakhstan.  
Question 41  
Industry has also complained about differences in terms of information to be provided by local 
and foreign manufacturers for registration pur poses.  Current Kazakh legislation seems to 
require a simplified list of documents for reg istration from local manufacturers - local 
manufacturers, unlike importers, are not required to provide GMP certificates (as well as full 
clinical and non clinical studies).  Currently, lo cal producers are mainly requested to provide 
bioequivalence, toxicity and pyrogenicity studies.  This can impact the quality and safety of 
pharmaceutical products available on the market.  
- Could Kazakhstan clarify whether different re quirements are in fact imposed on local 
and foreign manufacturers? 
Answer:  
In the process of development of pharmaceuti cal products, producers conduct full-scale non clinical, 
clinical, pharmacokinetic research.  In most cases, c linical research is not required for generics, as 
clinical research has already been performed by de veloper of the original pharmaceuticals.  At the 
same time, international requirements oblige to conduct research on bioequivalence or therapeutic 
equivalence, comparative non clinical studies in orde r to confirm equivalence (identity) of generics 
and original or reference pharmaceuticals.  Therefor e, for state registration of locally produced and 
imported generics in Kazakhstan, th e above-mentioned studies are required.  Clinical trials are not 
required.  It should be noted that local manufactures of pharmaceuticals produce mainly generics. 
The same list of documents is required in Kaza khstan for registration of locally produced and 
imported pharmaceuticals.  There is no term "sim plified list of documents" in the legislation of 
Kazakhstan.  
Question 42  
With regard to the renewal of registrations, cu rrent legislation seems to require generally the 
same documentation as a new registration, including a full analytical examination, pharmaceutical and pharmacological expertise.  During a renewal procedure, a full quality 
control of the product is conducted including the n ecessity to submit sampl es.  This rule applies 
even if the drug has been licensed and marketed  in Kazakhstan for over 10 years.  The renewal 
procedure equals the registration procedure in terms of complexity and requirements. 
- Could Kazakhstan clarify whether it will simplify the renewal procedure?  WT/ACC/KAZ/70 
 Page 27 
 
 
  Answer: 
At present, the above-mentioned Rules envisage simplif ication of one of the stages of re-registration 
procedures – analytical expertise.  Analytical expertise is not required for medicines marketed in Kazakhstan for over 15 years if the medicines receiv e no complaint relating to its safety, quality and 
efficacy.   
At the same time, registration record of ph armaceuticals, produced in accordance with Good 
Manufacturing Practice (GMP), is prepared in th e form of a common technical document consisting 
of 5 modules.  All 5 modules (1-5) are required for the state registration and 1-3 modules are required 
for the state re-registration.  Therefore, fewer docum ents must be submitted for state re-registration.  
Additionally, the State Program "On Developments of Pharmaceutical Industry for the Period of 
2010-2014" envisages implementation of the GMP by  pharmaceutical companies in Kazakhstan.  
In addition, the State Program of the Developm ent of Public Healthcare "Salamatti Kazakhstan" 
(Healthy Kazakhstan) envisages acce ssion of national inspectorate into  the Pharmaceutical Inspection 
Convention and Pharmaceutical Inspection Co-opera tion Scheme by 2015.  Implementation of the 
goals stipulated in these programmes will allow Ka zakhstan to introduce one-time state re-registration 
procedure as established in the EU.  
- Customs Valuation 
Question 43  Paragraph 356 provides an overview of the applicable legislation on customs valuation, which 
makes reference to both Customs Union acts and national acts. 
- Could Kazakhstan clarify precisely what is covered by the CU and what is covered by 
national legislation, and the details of the relevant provisions? 
Answer: 
The Agreement on the Determination of Customs Value of Goods, Transferring Across the Customs 
Border of the Customs Union of 25 January 2008 (hereinafter:  Agreement on Customs Valuation) 
and the CU Customs Code constitute the basic legislation  regulating customs valuation issues, which 
prevails over the relevant nati onal legislation of Kazakhstan.  All common norms on customs 
formalities are regulated by the CU legislation.  Ho wever, issues not unified in the framework of the 
Customs Union are regulated by the national legislation of the CU Party. 
The following scope of issues is regulated by the national legislation of Kazakhstan.  However, it 
should be noted that in some cases the CU legi slation provides general principles concerning these 
issues. 
- Article 1.1 of the Agreement on Customs Valu ation stipulates that customs valuation of 
exported goods shall be conducted in accordance wi th the national legislation of CU Parties. 
As mentioned in paragraph 364 of the Working Party Report, Article 98 of the Customs Code 
of Kazakhstan regulates customs valuation of exported goods. 
- Pursuant to Article 9 of the CU Customs Code  any person has the right to appeal against 
decisions made by the customs bodies in accordance with procedures and time-frame 
established by the legislation of CU Parties.  In Kazakhstan, this issue is regulated by 
Article 12 of the Law "On Order of Review of Request of Natural and Juridical Persons" of 
12 January 2007, as stated in paragraph 367 of the Working Party Report. WT/ACC/KAZ/70 
Page 28  
 
  - Article 8 of the CU Customs Code lays down a pproach regarding confidential information.  
In accordance with Article 16 of the Customs Code of Kazakhstan, information received by 
the customs body shall be used by the custom s officials exclusively for customs purposes and 
shall not be disclosed or disseminated, as noted in paragraph 268 of the Working Party 
Report.  
- Administrative violations on the customs issues ar e also regulated by the national legislation. 
Chapter 26 of Code No. 155-11 "On Administra tive Violations" of 30 January 2001 covers 
administrative violations relating to customs issues, including customs valuation matters. 
Article 429 of the Code stipulates that inaccurate customs declaration of goods, inter alia,  
corrupt information on the customs valuation incurs fine.   
- Anti-dumping, Countervailing Duty and Safeguard Regimes 
Question 44  
An issue concerning safeguards as well as Anti-D umping is the extension of national measures, 
during the transitional period, to the wh ole Customs territory on certain conditions 
((a) Transitional regime)).  
- We consider that the application of a single decisive criterion in the reviews, i.e. whether 
the original complainants represent at least 25 per cent of the CU-wide industry, is not 
sufficient to justify an extension of national measures to the markets of two other 
countries.  The trends of the overall imports and the situation of the overall industry in 
relation to the CU should be checked, and at  the very least the national interests, in 
particular those of the consumers of the other two countries should be duly taken into account. 
Answer:  
According to the Agreement of 19 November 2010 on Application of Safeguard, Anti-dumping and 
Countervailing Measures to the Third Countries in th e Transitional Period, all national measures of 
the CU Parties were subject to the reviews in orde r to determine whether they should be extended to 
the common CU territory or continue to be applied at the national level.  Therefore, the process of 
extending the national measures to the entire CU territory was non-automatic.  
If the domestic producers that had initially filed appl ications for the national measures met the criteria 
by representing not less than 25 per cent production of the CU-wide industry, the measures would be 
extended to the CU territory.  In practice, all national measures that have been extended to the 
CU territory were initiated by the requests of more than 40 per cent of the CU industry producers.  
Along with the criteria of 25 per cent production of th e CU-wide industry, interests of both consumers 
and producers of other two CU Part ies were taken into acc ount during the reviews.  In addition, the 
CU Party conducting review of its national measur es provided the opportunity to participate in 
consultations for all interested parties.  It should be noted that the experience of EU enlargement was 
taken into account when the CU Parties were de veloping mechanism of extending national measures 
to the CU territory.   WT/ACC/KAZ/70 
 Page 29 
 
 
  B. EXPORT REGULATIONS 
- Customs Tariffs, Fees and Charges for Servic es Rendered, Application of Internal Taxes 
to Exports 
Question 45  Page 146: this section of the draft Working Part y Report is still missing  despite a commitment 
made by the Delegation of Kazakhstan to provide  it before the Working Party meeting in July. 
- Could Kazakhstan explain the reasons behind th e delay in the submission of this section 
of the draft Working Party Report and inform the Working Party on when it will become available? 
Answer: 
The submission of this section was delayed due to the reason that export duties are still under 
negotiations with a Member.  The dr aft version of the section will be provided in the draft Working 
Party Report prior to the next Working Party meeting. 
- Quantitative Export Restrictions, including Prohibitions and Quotas 
Question 46  
Paragraph 439 states that "Kazakhstan currently imposes prohibitions on the export of lumber, 
saw timber, certain wood products, reusable pap er, cardboard, raw paper materials and paper 
waste that were included into the Common lis t of Goods Subject to Non-Tariff Measures".  
In our written questions, we asked Kazakhstan to confirm whether the prohibition on the export of lumber and saw timber was being app lied only by Kazakhstan or by all Customs 
Union members.  In its written response, Kazakhst an confirmed that the export prohibition is 
only applied by Kazakhstan.  This clarificatio n is not reflected in the draft Working Party 
Report.  Moreover, the validity of this statemen t remains unclear given that paragraph 438 it is 
stated that "the CU Parties, not imposing the non-tariff measure, were to take the necessary 
steps to prevent the exportation of the subject good(s) from the CU Party applying the non tariff 
measures to third countries".  We should seek cl arifications that indeed only these export 
prohibitions are only being applied with regard to Kazakh goods. 
- Could Kazakhstan please confirm in the dr aft Working Party Report (paragraph 439) 
that it is the only CU Members that is appl ying export prohibitions on lumber and saw 
timber? 
Answer: 
Kazakhstan takes account of this comment and will make necessary amendments in the 
paragraph 439.  Kazakhstan pr oposes to make the following revision to the paragraph: 
"…A Member asked Kazakhstan to co nfirm whether the prohibition on the export of lumber and saw 
timber was being applied only by Kazakhstan or by all CU Parties.  In response, the representative of 
Kazakhstan confirmed that this export prohibition w as only applied by Kazakhstan.  The measure was 
applied in conjunction with the ba n on cutting forest trees in "specially protected natural territories" 
(SPNT).  The SPNT included geographical territories of special interest which had environmental, 
scientific, cultural and recreational value placed under special protection regime (Law No. 175 
"On Specially Protected Natural Territories" of 7 July 2006).  The restrictions were related to 
conservation of exhaustible natu ral resources and had been introdu ced to maintain the ecological WT/ACC/KAZ/70 
Page 30  
 
  balance and prevent deforestation, given Ka zakhstan's highly limited reserves of wood.  
The representative of Kazakhstan considered that this export prohibition was applied in compliance 
with paragraphs (b) and (g) of Article XX of the GATT 1994, on a non-discriminatory basis, and in a 
manner which did not constitute a means of dis guised restriction on international trade... " 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Free Zones, Special Economic Areas 
Question 47  Paragraph 500 contains a commitment that SE Zs and free warehouses in Kazakhstan would be 
established, maintained and administered from th e date of accession in conformity with the 
provisions of the WTO Agreement.  
Paragraph 471 states that customs authorities of Kazakhstan are responsible for customs 
control in the SEZ according to national legisl ation, and goods could be imported by residents 
from and exported by residents and non-residents to the territory of a SEZ in Kazakhstan only 
with the permission of Kazakhstan's customs authorities. 
- Could Kazakhstan clarify on what basis do the customs authorities grant the permission 
under paragraph 4? Could the relevant legi slation be provided to delegations? 
Answer: 
Prior to the enactment of the CU Agreement on SEZs, foreign and Kazakhs tani goods entered the 
territory of SEZs without permission of customs au thorities.  Such goods were only subject to regular 
customs clearance procedures when entering th e customs regime of free customs zone.  
Currently, according to the CU Agreement on SEZs, goods can be imported into and exported from 
the SEZ territory only with the permission of cust oms authorities.  In implementation of the above 
provision of the CU Agreement on SEZs, the Cu stoms Control Committee of the Republic of 
Kazakhstan have developed a draf t Resolution of the Government of the Republic of Kazakhstan 
"On Some Issues of Application of the Customs Pr ocedure of Free Customs Zone", which establishes 
procedures on issuing permits for im portation and exportation of goods into/from the territory of SEZ, 
and the forms of these documents.  
According to the draft resolution, for obtaining  a permit for importation of goods into the SEZ 
territory, SEZ residents shall submit to customs au thorities copies of commercial, transport (shipping) 
or customs documents on imported goods that contai n information required for customs control of 
goods and vehicles.  Based on verification of the do cuments with the actual data, customs authorities 
make a decision on the import of the goods and means of transportation to the SEZ. 
A permit for importation of goods into port and l ogistic SEZ and a permit for exportation of goods 
from the SEZ territory are issued by customs au thorities when the following conditions are met: 
1) goods are not prohibited for importation to the CU  customs territory and exportation from this 
territory; 
2) documents, confirming that imported/exported go ods have the status of CU goods or that 
imported/exported goods are placed under the customs procedure on terms and conditions 
established by the legislation of the Customs Union and the Republic of Kazakhstan, were 
submitted to customs authorities.   WT/ACC/KAZ/70 
 Page 31 
 
 
  3) verification of documents and identification of goods by customs authorities has not detected 
violations of the customs legislation of the Customs Union and the Republic of Kazakhstan. 
A customs authority issues a permit as soon as it is assured that all the conditions stated above are 
met. 
Question 48  
Paragraph 473 states that Article 10 of the CU Agreement on SEZs also provides that goods 
that incorporated imported inputs and were manu factured by SEZ residents registered prior to 
1 January 2012, could be recognized as Customs Union goods up until 1 January 2017, i.e., they could be sold into the rest of the customs te rritory of the Customs Union without paying the 
exempted customs duties on imported inputs, provided such imported inputs had been substantially transformed, i.e. they met any of the following conditions listed in Article 19 of the 
CU Agreement on SEZs:  
(i) manufacturing had changed the HS classificati on code of the good at the level of any of 
the first four-digits;  
(ii) its transformation was recognized as suffi ciently implementing a predetermined list of 
conditions, production and technological or manufacturing operations, necessary to be 
recognized as goods of the Customs Union;  
(iii) the percentage share of the value added had reached a predetermined share of the price 
of the final good (the rule of ad valorem  share); or 
(iv) the percentage share of the cost of forei gn goods did not exceed a predetermined share.  
Additionally, paragraph 495 foresees that goods produced (processed) in free warehouses whose 
owners were included into the Register prior to 1 January 2012 incorporating imported 
components and recognized as goods of the CU w ere not subject to payment of customs duties 
when exported from free warehouses into the rest of the CU customs territory.  The latter 
provision expired on 1 January 2017.  Goods produced (processed) with the use of foreign goods could be recognized as Customs Union goods if they met the following criteria of sufficient 
processing described in Article 16 of the CU Agreement on Free Warehouses:  
(i) manufacturing had changed the goods' HS classification code at the level of any first 
four-digits;  
(ii) its transformation was recognized as suffi ciently implementing a predetermined list of 
conditions, production and technological or manufacturing operations, necessary to be 
recognized as goods of the Customs Union;  
(iii) the percentage share of the value added had reached a predetermined share of the price 
of the final good (the rule of ad valorem share); or 
(iv) the percentage share of the cost of fo reign goods did not exceed a predetermined share 
in the price of the final good.   
- Could Kazakhstan please provide the predeter mined shares or the basis on which they 
are calculated for the provisions of paragraphs 473 and 495. 
Answer: 
According to the CU Agreements on SEZs a nd Free Warehouses, the procedures on use of ad valorem  
share rule as criteria of sufficient processing were established by the CU Commission Decision No. 115.  WT/ACC/KAZ/70 
Page 32  
 
  According to the Decision, goods produced with the use of foreign goods placed under the customs 
procedure of free customs zone or a free warehouse customs procedure (hereinafter – foreign goods) 
are considered as sufficiently processed if the percentage  share of the cost of foreign goods used in the 
manufacture of the final product does not exceed 50 pe r cent of the price of the final product, except 
in the case specified in paragraph 4 of the Decision
2. 
The cost of foreign goods placed under the customs procedure of free customs zone or free warehouse 
customs procedure, and used in the manufacture of the final product, is determined as a customs value 
of such goods, determined on a date of registration by customs authorities of a customs declaration, filed for placing goods under the customs procedur e of free customs zone or free warehouse customs 
procedure.  The price of the final product is determined on the ex-works conditions. 
The Customs Union Commission has not yet adopted a Decision establishing a predetermined list of 
conditions, production and technological or manufactur ing operations, sufficient to recognize foreign 
goods placed under the customs procedure of free cu stoms zone as goods of the Customs Union.  
Therefore, currently, Kazakhstan applies national sufficient processing criteria established by the Resolution of the Government of the Republic of  Kazakhstan No. 1647 "On Approval of the Rules of 
Determining the Country of Origin of Goods, Drafti ng and Issuing Expertise Acts on Origin of Goods 
and Issuing a Certificate on Origin of Goods" of 22 October 2009.  The illustrative list of such 
operations established by the Reso lution is presented in Annex 4. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- Geographical Indications, Including Appellations of Origin Question 49  
Paragraph 576 elaborates on whether earlier pr otected trademarks would be protected from 
confusingly similar and later in time geographi cal indications.  In response to our written 
question, paragraph 579 provides clarifications with regard to Kazakhstan's interpretation of 
"low" and "high" in relation to the likelihood of co nfusion:  this is done by the court in each 
case individually on the basis of such criteri a as renown of the trade mark in Kazakhstan 
acquired due to its active use. 
- Could Kazakhstan clarify if this includes active use outside of Kazakhstan? 
Answer: 
According to paragraph 4 of Article 19 of the Trademark Law manufacture, importation, storage, 
offering for sale, sale of goods with a trademark,  its use in advertising, billboards, printed 
publications, on official letterhead or other business document, transfer of trademark rights or its 
demonstration at the exhibitions held in the Republic  of Kazakhstan, as well as other introduction into 
civil circulation shall be recognized as use of a trademark.  
Therefore, active use includes also use outside of  Kazakhstan.  Taking into account that trademark 
must be renown in Kazakhstan, it must be  actively used in Kazakhstan as well.   
                                                      
2 Paragraph 4 of the Decision stipulates exceptional sufficient processing criteria for Kaliningrad and 
Magadan SEZs in the Russian Federation.    WT/ACC/KAZ/70 
 Page 33 
 
 
  Question 50  
Paragraph 579 clarifies that the time period lim itation to contest and invalidate registration of 
geographical indication due to the existence of an  earlier in time trademark is five years from 
the moment of publication of the information on the state registration of the geographical 
indication in the official bulletin.  Clarity is missing however with regard to the time limits 
applied to contest and invalidate subsequently registered trademarks.  In our view, previous 
trademarks and well-known trademarks deserve to  be protected and subsequent registrations 
should be, in general, annulled any time.  
- Could Kazakhstan please clarify whether its laws foresee that subsequent registrations 
of trademarks can be annulled at any time?  How does Kazakhstan deal with bad faith 
registrations? 
Answer: 
According to Article 23 of the Trademark Law subse quent registrations of trademarks identical or 
confusingly similar to earlier registered tradem arks in the Republic of Kazakhstan or well-known 
trademarks can be contested and invalidated during five years after the registration.  
Bad faith registrations can be opposed without any limitations in time. According to Article 42.1.1 
disputes on legality of the certificates confirming  the registration of trademark or geographical 
indication shall be subject to consideration in court.  
- Requirements on Undisclosed Information,  including Trade Secrets and Test Data 
Question 51  Paragraph 610 states that agroche mical products are not subject to registration in the Republic 
of Kazakhstan.  Agro-chemical products can also have non-beneficial effects on plant 
production.  Their use may involve risks and hazards for humans, animals and the 
environment, especially if placed  on the market without having been officially tested and 
authorised and if incorrectly used.   
- Without registration, how does Kazakhstan pl an to ensure safety and fair commercial 
use (including of undisclosed information and test data), particularly in reference to 
TRIPS Article 39.3? 
Answer: 
Despite the fact that Kazakhstan does not require re gistration of agrochemical products, in order to 
ensure safety of humans, animals and the environment Kazakhstan requires registration of chemical products, including mineral fertiliz ers and registration of pestic ides and poisons.  Registration 
requirements for chemical products, pesticides and poisons are the same for every applicant and do 
not permit the unauthorised reliance on undisclosed da ta developed or submitted by another applicant 
to obtain product registration.   
VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 52  
Paragraph 659 contains commitment language co ncerning licensing procedures.  We would like 
Kazakhstan's commitments to be in line with the 2009 text of the Chair of the WTO Working WT/ACC/KAZ/70 
Page 34  
 
  Party on Domestic Regulation (WPDR).  The text clarifies that the processing of an application 
for a licence has to be completed within a rea sonable time-frame i.e. without undue delay. 
We are proposing an Article on Domestic Regulation in the Chapter on Services and 
Establishment of the new PCA with Kazakhstan,  which reflects the 2009 Chair's text of the 
WPDR.  Kazakhstan already made it clear that they  want the Article on Domestic Regulation to 
be in line with the language of the Working Party report. 
- We would propose to modify the text of paragraph 659 sub-paragraph (b) as follows in 
order to bring it into line with the 2009 text of the Chair of the WTO Working Party on Domestic Regulation.  The sub-paragraph should read: 
(b) Relevant authorities would review and make a decision on granting or denying a licence 
within the period specified in official procedures or, if no time period was specified, without 
undue delay; 
Answer: 
Proposed language is identical to the language of sub-paragraph (b) of paragraph 659 of the Working 
Party Report of Kazakhstan.  Therefore, modifications are not needed.  
659. [Without prejudice to the right of Kazakhstan to establish and apply licensing procedures and 
requirements, the representative of Kazakhstan confir med, that in sectors in which Kazakhstan had 
undertaken specific commitments, Kazakhstan would ensure that its licensing procedures would not in themselves constitute a restriction on the supply of the service, and its licensing requirements directly related to eligibility to supply a service would not in  themselves be an unjustified barrier to the supply 
of the service.  She further confirmed that for those services sectors in which specific commitments 
were undertaken by Kazakhstan in its Schedule of  Specific Commitments, Kazakhstan would ensure 
that:  
(a) All licensing procedures and requirements were set-out in normative legal acts and that any 
law establishing or implementing licensing procedures or  requirements would be published prior to its 
effective date;  
(b) Relevant authorities would review and make a decision on granting or denying a licence 
within the period specified in official procedur es or, if no time period was specified, without undue 
delay;]  
Question 53  Further on paragraph 659, we believe that the ti meframe for the processing of an application 
needs to be specified in the relevant legislation in order to provide legal certainty to economic operators willing to do business in Kazakhstan.  The drafting proposed reflects the one included 
in the 2009 Chair's text of WPDR. We would propo se to add a new sub-paragraph (c) to the text 
of paragraph 659 as follows: 
(c) Kazakhstan shall establish the normal time frame for processing of an application. 
Answer: 
There is no necessity to add a new sub-paragraph (c ), proposed by this Member, to the text of 
paragraph 659 of the Working Pa rty Report of Kazakhstan.  The time-frame for processing of an  WT/ACC/KAZ/70 
 Page 35 
 
 
  application is established in the Law of the Re public of Kazakhstan No. 214-III "On Licensing" of 
11 January 2007.  Thus, in accordance with Article 43 of this Law, the licence and (or) supplement to 
the licence shall be issued by the licenser not later than in fifteen working days, except for licenser in 
the sphere of atomic energy usage, financial sphere  and activities, related to concentration of financial 
resources to which licence and (or) supplement to th e licence shall be issued no later than 30 working 
days from the day of presentation of the applicati on with the appropriate documents established by 
this Law.  Within the term established by Article 43 of  this Law, the licenser sh all be obliged to issue 
a licence and (or) supplement to the licence or give a motivated reply of the denial to issue a licence 
and (or) supplement to the licence in the written form. WT/ACC/KAZ/70 
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  ANNEX 1 
The Resolution of the Government of the Repub lic of Kazakhstan as of 18 June 2012, No. 799 
"On Approval of the List of Activities on Manufacture of High-Tech Products" 
A List of Activities on Manufacture of High-Tech Products 
Ser. 
No. Name of Manufacture of Products CCEA Code 
1 2 3 
Manufacture of industrial gases 
1. Manufacture of liquid and compressed organic industrial refrigerant gases and vapours:  
natural gas, liquid and compressed air, refrigerant vapors, mixed industrial gases, inert gases, insulating gas 20.11 
Manufacture of dyes and pigments 
2. Manufacture of painting materials and pigm ents from any source in the basic shapes or 
concentrates 20.12 
3. Manufacture of products used for fluorescent or luminescent lighting 20.12 
Manufacture of other basic inorganic chemicals 
4. Manufacture of chemical elements (except for industrial gases and basic metals) 20.13 
5. Manufacture of inorganic acids , except for nitric acid 20.13 
6. Manufacture of alkalis 20.13 
7. Enrichment of uranium and thorium ores 20.13 
Manufacture of other organic basic chemicals 
8. The manufacture of basic organic chemi cals: acyclic hydrocarbons, saturated and 
unsaturated cyclic hydrocarbons, saturated and unsaturated, of cyclic and acyclic alcohol, mono-and polycarboxylic acids, including acetic acid of other oxygen-
functional blends, including aldehydes, ketones, quinine and double or multifunctional 
oxygen-rich mixtures of synthetic glycerin of nitrogen-functional organic compounds, 
including amino acids of  fermentation of sugar cane, corn or other alcohol production 
and ester. 20.14 
9. Manufacture of synthetic aromatic products 20.14 
10. Distillation of coal tar 20.14 
Manufacture of fertilisers a nd nitrogen-rich compounds 
11. Manufacture of fertilizers:  nitrogen or nitrogen-rich, phosphorus or potassium 
fertilizers; urea, natural phosphates and natural potassium salts from crude oil. 20.15 
12. Manufacture of nitrogen-rich products: nitrogen acids and nitrogen, ammonium 
sulphate, ammonium carbonate, ammonium chloride, nitrites and nitrates of potassium 20.15 
Manufacture of plastics in primary forms 
13. Manufacture of plastics in primary forms:  polymers, including ethylene, propylene, 
stinin, vinyl chloride, vinyl acetate and acrylic polyamides, phenolic and epoxy resins, alkyd and polyester and polyethylene resins and polymers of silicon ion exchange resin 
based on polymers 20.16 
14. Manufacture of cellulose and its chemical derivatives 20.16 
Manufacture of synthetic rubber in primary forms 
15. Manufacture of synthetic rubber in primary forms: synthetic rubber factis/softener for 
rubber compounds 20.17 
16. Manufacture of mixtures of synthetic rubber and natural rubber components such as 
chewing gum, (e.g. balata) 
 20.17 
Manufacture of pesticides and other agrochemical products 
17. Manufacture of insecticide /insecticides, rodenticides, fungi cides, herbicides, acaricides, 
molluscicides, biocides 20.20 
18. Manufacture of products for plant growth regulation 20.20 
19. Manufacture of disinfectants (for agricultural purposes or other uses) 20.20 
20. Manufacture of other agricultural products n.e.c. 20.20  WT/ACC/KAZ/70 
 Page 37 
 
 
  Ser. 
No. Name of Manufacture of Products CCEA Code 
1 2 3 
Manufacture of paints, varnishes and similar coatings, printing ink and mastics 
21. Manufacture of paints, varnishes and enamels. 20.30 
22. The production of mastic 20.30 
23. Manufacture of filler paste and simila r substances for surface alignment 20.30 
24. Manufacture of organic solvents 20.30 
Manufacture of soap and detergen ts, cleaning and polishing tools 
25. Manufacture of organic surface-active preparations 20.41 
Manufacture of explosives 
26. Manufacture of explosives 20.51 
Manufacture of other chemical products n.e.c. 
27. Manufacture of fabricated rubber catalysts 20.59 
Manufacture of basic pharmaceutical products 
28. Manufacture of medical pharm aceutical products used in th e production of medicines:  
antibiotics, vitamins, salicylic and O-acetylsalicylic acid, etc. 21.10 
29. Manufacture of endocrine preparations of animal raw materials (processing and 
production of extracts of glands, etc.) 21.10 
Manufacture of pharmaceutical preparations 
30. Manufacture of medicines:  immune serum,  etc.; vaccine; various medicines, including 
homeopathic medicines 21.20 
31. Manufacture of chemical contraceptiv e products for external use and hormonal 
contraceptives 21.20 
32. Manufacture of medical diagnostic products 21.20 
33. Manufacture of diagnostic products for the detection of radioactive substances 21.20 
34. Manufacture of biological pharmaceuticals 21.20 
Manufacture of other rubber products 
35. Manufacture of tubes and hoses 22.19 
36. Manufacture of rubber conveyor or transmission belts 22.19 
Manufacture of electronic components 
37. Manufacture of microprocessors 26.11 
38. Manufacture of connectors 26.11 
39. Manufacture of empty printed circuit boards 26.11 
40. Manufacture of integrated circuits/integratin g circuits (analog, digital or mixed) 26.11 
41. Manufacture of diodes, transistors and related discrete devices 26.11 
42. Manufacture of semiconductor wafers, semiconductors, finished and semifinished 26.11 
43. Manufacture of displays and components (plasma, polymer, liquid) 26.11 
44. Manufacture of light-emitting diodes (LED) 26.11 
45. Manufacture of cables for printer, m onitor, USB ports, c onnectors, etc. 26.11 
Manufacture of electronic boards of the load 
46. Manufacture of components of downloading for printed circuit boards 26.12 
47. Manufacture of interface cards/ adapters (including audio, video, and network modems) 26.12 
Manufacture of computers and peripheral equipment 
48. Manufacture of desk computers 26.20 
49. Manufacture of portable computers 26.20 
50. Manufacture of central processing units for computers 26.20 
51. Manufacture of portable computers (including PDA) 26.20 
52. Manufacture of optical drives (such as  CD-RW, CD-ROM, DVD-ROM, DVD-RW) 26.20 
53. Manufacture of printers 26.20 
54. Manufacture of monitors 26.20 
55. Manufacture of keyboards 26.20 
56. Manufacture of all types of mice, joysticks/controls and accessories for trackball mice 26.20 
57. Manufacture of specialized co mputing computer terminals 26.20 
58. Manufacture of computer servers 26.20 
59. Manufacture of scanners, including barcode readers 26.20 WT/ACC/KAZ/70 
Page 38  
 
  Ser. 
No. Name of Manufacture of Products CCEA Code 
1 2 3 
60. Manufacture of readers for smart cards 26.20 
61. Manufacture of helmets and caps for virtual games 26.20 
62. Manufacture of computer proj ectors (video projectors) 26.20 
63. Manufacture of computer terminals, su ch as ATM (BAR), point-of-sale terminals 
(POS) terminals and other non-motor-driven way 26.20 
64. Manufacture of multifunction office equi pment, performing two or more of the 
following functions:  print, scan, copy, fax. 26.20 
Manufacture of communication equipment 
65. Manufacture of transmission and receiving antennas 26.30 
66. Manufacture of the burglar and fire-preven tion systems that send signals to the control 
panel 26.30 
67. Manufacture of radio and television transmitters 26.30 
Manufacture of instruments and appliances for measuring, testing and navigation 
68. Manufacture of radiation detectors 26.51 
69. Manufacture of temperature contro l devices for heating systems 26.51 
70. Manufacture of spectrometers 26.51 
71. Manufacture of household measures (for example, water meters, electricity meters, gas 
meters) 26.51 
72. Manufacture of water meters and counting devices 26.51 
73. Manufacture of counters 26.51 
74. Manufacture of environmental control and automatic tools control devices 26.51 
Manufacture of irradiation, electrome dical and electrotherapeutic equipment 
75. Manufacture of irradiation apparatus and devices (for example, industrial, medical, 
diagnostic, research and academic):  beta, gamma, x-ray or other radiation equipment 26.60 
76. Manufacture of ST scanners 26.60 
77. Manufacture of PET scanners 26.60 
78. Manufacture of equipment for magnetic resonance image (MRI) 26.60 
79. Manufacture of medical ultrasound equipment 26.60 
80. Manufacture of electrocardiographs 26.60 
81. Manufacture of electromedical  endoscopic equipment 26.60 
82. Manufacture of medical laser equipment 26.60 
Manufacture of optical instruments and photographic equipment 
83. Manufacture of laser equipment 26.70 
Manufacture of electric motors, generators and transformers 
84. Manufacture of electric motors (except for internal combustion engines) 27.11 
85. Manufacture of distribution transformers 27.11 
86. Manufacture transformer substations for power distribution  27.11 
Manufacture of electricity distribution and control apparatus 
87. Manufacture of pr imary energy 27.12 
Manufacture of batteries and accumulators 
88. Manufacture of primary elem ents:  elements of batteries containing manganese dioxide, 
dioxide, mercury, silver oxide, etc. 27.20 
89. Manufacture of electric accumulators, including spare parts, such as dividers, hull, caps 27.20 
90. Manufacture of nikelekadmievyh batteries 27.20 
91. Manufacture of nickel and cadmium batteries 27.20 
92. Manufacture of lithium batteries 27.20 
Manufacture of fibre optic cables 
93. Manufacture of fibre optic cable for dir ect transfer of pictures or data 27.31 
Manufacture of other electronic and electric wires and cables 
94. Manufacture of insulated wire and cable of steel, copper and aluminium 27.32 
Manufacture of electric lighting equipment 
95. Manufacture of electric lig hting equipment for the transportation (for example, motor 
vehicles, aircraft, boats) 27.40  WT/ACC/KAZ/70 
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  Ser. 
No. Name of Manufacture of Products CCEA Code 
1 2 3 
Manufacture of other electrical equipment 
96. Manufacture of carbon and graphite electro des, connections, and other types of electric 
carbon and graphite products 27.90 
97. Manufacture of ultr asonic cleaning machines (except for laboratory and dental) 27.90 
Manufacture of engines and turbines, excep t for aircraft, vehicl e and cycle engines 
98. Manufacture of valves, piston rings, carburetors, etc for all internal combustion engines, 
diesel engines, etc. 28.11 
99. Manufacture of turbo setups 28.11 
100. Manufacture of turbines and their spare parts: steam turbines and turbine, hydraulic 
turbines, water turbines and impellers to regulators, wind engines, gas turbines, 
excluding turbo-jets or turbo-chargers for aircraft 28.11 
101. Manufacture of setups for steam turbines 28.11 
Manufacture of other pumps, compressors, valves and tubes 
102. Manufacture of pumps for internal combustion engines:  oil, water and fuel pumps for 
vehicles, etc. 28.13 
Manufacture of lifting and handling equipment 
103. Manufacture of mechanical or electrical lifting, loading or  unloading machinery:  lifts, 
hoists, etc. equipment, lifting equipment, cranes, mobile lifting frames, straddle timber lorries, etc., truck tractors with or without transport equipment, self-propelled bootable 
or not used in the production (including hand carts and wheelbarrows), mechanical 
managed devices and industrial robots specially designed for lifting, handling, loading or unloading 28.22 
104. Manufacture of elevators, esca lators and moving walkways 28.22 
105 Manufacture of spare parts for lifting and handling equipment 28.22 
Manufacture of industrial cooling and ventilation equipment 
106. Manufacture of heat exchangers 28.25 
Manufacture of other general-purpose machinery n.e.c. 
107. Manufacture of gas generators 28.29 
108. Manufacture of centrifuges (except for cream separators and dryers) 28.29 
Manufacture of agricultural and forestry machinery 
109. Manufacture of agricultural self-loading or unloading trailers and auto trailers 28.30 
110. Manufacture of agricultural machinery fo r soil preparation, seeding or fertilizing: 
fertilizer spreaders, plou ghs, seeding aggregates/seeders, harrows etc. 28.30 
111. Manufacture of machinery for harvesting and threshing:  harvesters, threshers, sorters, 
etc. 28.30 
112. Manufacture of various agricultural mach inery:  machinery and equipment for use in 
poultry farming, beekeeping, equipment for preparation of forages, etc.; machines for 
cleaning, sorting or hand ling eggs, fruit, etc. 28.30 
Manufacture of metal forming machinery 
113. Manufacture of machine tools for metal forming, including laser beam processing, 
plasma arc, ultrasound, magnetic pulses, etc. 28.41 
114. Manufacture of machine tools for turning, drilling, grinding, molding, chipping, holes 
making, etc. 28.41 
115. Manufacture of forging and pressing machines 28.41 
116. Manufacture of presses, hydraulic presses, hydraulic crushers, hanging pile hammers, 
metal forming machinery etc. 28.41 
Manufacture of other machine tools 
117. Manufacture of equipment for electroplating 28.49 
Manufacture of machinery for metallurgy 
118. Manufacture of machinery and equipment for handling hot metals:  converters, foundry 
equipment, foundry casting ladles, casting machines 28.91 
Manufacture of machinery for mining, quarrying and construction 
119. Manufacture of continuously operating elevators and conveyors for underground use 28.92 WT/ACC/KAZ/70 
Page 40  
 
  Ser. 
No. Name of Manufacture of Products CCEA Code 
1 2 3 
120. Manufacture of drilling, cutting equipmen t, technology for laying tunnels and lifting 
machines (for underground use, and others) 28.92 
121. Manufacture of earth-moving machinery: tr actors, bulldozers, rotary blade / universal 
bulldozers, graders, scraper conveyors, eq ualizers, shovels, sh ovel loaders, etc. 28.92 
122. Manufacture of concrete mixers and mortar-miximg machines.  28.92 
123. Manufacture of equipment for mineral processing, screening, sorting, separating, 
washing, crushing, etc. 28.92 
Manufacture of equipment for production and processing of food, beverages and tobacco 
124. Manufacture of agricultural dryers 28.93 
Manufacture of machinery and equipm ent for special purposes, n. e. c 
125. Manufacture of industrial multi-robots for performing specific tasks 28.99 
Manufacture of motor vehicles 
126. Manufacture of passenger cars 29.10 
127. Manufacture of industrial vehicles:  vans, trucks, off-road trucks to trailers, etc. 29.10 
128. Manufacture of buses, trolley buses and coaches 29.10 
129. Manufacture of engines for motor vehicles 29.10 
130. Manufacture of chassis for motor vehicles 29.10 
131. Manufacture of motor vehicles: snowmobiles, golfkary, ground-water vehicles, fire 
engines, machines for cleaning  of streets and roads, mobile  libraries, armored cars, etc.; 
trucks concrete mixers 29.10 
132. Off-road vehicles, carts, and others, including race cars 29.10 
Manufacture of bodies for motor vehicles, manufacture of trailers and semitrailers 
133. Manufacture of car bodies, including cabs for drivers 29.20 
134. Equipment of all types of motor vehicles, trailers and semitrailers 29.20 
135. Manufacture of trailers and semi-trailers :  tankers, trailers, etc., vans, etc. 29.20 
136. Manufacture of cargo containers for carriage by one or more modes of transport 29.20 
Manufacture of electrical and electro nic equipment for motor vehicles 
137. Manufacture of electrical e quipment for vehicles, such as generators, alternators, spark 
plugs, wiring for the ignition system, power windows, measuring instruments for the 
toolbar, voltage regulators, etc. 29.31 
Manufacture of other parts and accessories  of motor vehicles and their engines 
138. Manufacture of various parts and accessories  of cars: brakes, transmissions, axles, road 
wheels, shock absorbers, radiators, muffler s, exhaust pipes, catalytic converters, 
clutches, steering wheels, steer ing columns, steering gear 29.32 
139. Manufacture of parts and accessories of bodies of cars: seat belts, airbags, doors, 
bumpers 29.32 
Building of ships and floating structures 
140 Construction of industrial vessels: passenger vessels, cargo ships, offshore cargo 
vessels, tankers, tugs, etc. 30.11 
141. Construction of warships 30.11 
142. Construction of vessels for fishing and processing factory ships 30.11 
143. Construction of drilling platforms, floating or located on the water 30.11.0 
144. Construction of floating structures:  floating docks, pontoons, coffer, floating or land 
piers, buoys, floating vessels, barges, lighthouses, floating cranes, not recreational 
inflatable rafts, etc. 30.11.0 
145. Manufacture of segments for ships and floating structures 30.11 
Manufacture of railway lo comotives and rolling stock 
146. Manufacture of electri city, diesel, steam and other rail locomotives 30.20 
147. Manufacture of self-propelled railway or tramway coaches, vans and trucks, 
maintenance and servicing of motor vehicles 30.20 
148. Manufacture of railway or tramway rolling-stock, not self-propelled:  passenger cars, 
freight cars, tank wagons, self-propelled carriages, wagons, crane platforms, tanks for 
the transport of flammable materials, etc. 30.20  WT/ACC/KAZ/70 
 Page 41 
 
 
  Ser. 
No. Name of Manufacture of Products CCEA Code 
1 2 3 
149. Manufacture of specialized components fo r railway or tramway locomotives or rolling 
stock: shafts, axles, spindles, wheels, brak es and accessories therefor; levers, couplings 
and connecting devices, buffers and components, shock absorbers, base wagons and 
locomotives, bodies, etc. 30.20 
150. Manufacture of railway trucks for the mining industry and locomotives for the mining 
industry 30.20 
151. Manufacture of mechanical  and electromechanical signa ling equipment, equipment for 
monitoring the safety and traffic control equipment for railways, tramways, inland 
waterways, highways, parki ng lots, airfields, etc. 30.20 
Manufacture of air, space, etc. technology 
152. Manufacture of helicopter 30.30 
153. Manufacture of start-up aircrafts, satellites,  planetary probes, orbital stations, shuttles 30.30 
  
 
  WT/ACC/KAZ/70 
Page 42  
 
  ANNEX 2 
The List of Spheres where State Enterprises could be Established 
1) public utility services for population (energy, g as, water, heat supply and burial of communal 
wastes, creation and maintenance of waste landfills); 
2) creation of woodland-park, green and protection zones with the restricted regime of nature 
use and forest planting; 
3) activities maintaining the functions of the National Bank of the Republic of Kazakhstan, 
Administration of the President of the Republic of  Kazakhstan and its depa rtments and diplomatic 
service authorities of the Republic of Kazakhstan; 
4) maintenance of state-owned automobile roads; 
5) public healthcare; public high and post-graduate education; 
6) operation of public sports and fitn ess entities, culture and leisure parks; 
7) scientific researches;  8) maintenance of the state land cadastre, in formation databases concerning subsurface and 
subsurface use, state reserves of ecological information and state cadastres of natural resources of the 
Republic of Kazakhstan, state register of regul atory legal acts of the Republic of Kazakhstan; 
9) maintenance, operation, and safety of water management systems, and facilities which are in 
state ownership; 
10) plant protection and quarantine, and phytosan itary expertise of production subject to plant 
quarantine;  
11) scientific research, preservation, restoration, re -creation, repair and adjustment of monuments 
of history and culture; 
12) activity of a sea port; 13) aero navigation services to users of air space of the Republic of Kazakhstan; 14) formation and storage of the state commodity reserves; 15) economic and business activities in the sphere  of technical regulation and metrology; 
16) production activities in the sphere of the cr iminal-prosecution system and organization of 
employment of prisoners; 
17) manufacture of personal identification do cuments of the Republic of Kazakhstan; 
18) performance of functions on: - reference function on diagnostics of animal diseases; 
- epizootic monitoring of diseases of wild  animals in the Republic of Kazakhstan; 
- maintenance of National Collection of  Deposited Strains of Microorganisms;  WT/ACC/KAZ/70 
 Page 43 
 
 
  - registration testing, approbati on of veterinary specimens, feed additives, as well as control of 
series (lots) of drugs at their reclamation; 
- state monitoring, references on provision of food security; - monitoring of safety of veterinary drugs, feeds, and feed additives; - veterinary measures against extremely hazardous and enzootic animal diseases; 
- identification of agricultural animals; 
- provision of services on artificial insemination of animals; - provision of services on transportation (delivery) , storage of veterinary preparation against 
extremely hazardous and enzootic animal disea ses, as well as transportation (delivery) of 
items (means) and attributes of veterinary pur pose for conducting identification of agricultural 
animals; 
- maintenance of animal burial sites (biothermical  pits), slaughter sites, built by local executive 
bodies of corresponding administrative territorial units; 
- trapping and extermination of stray dogs and cats. 
19) liquidation (termination, utilization, burial ) of weapons, military equipment and other not 
used military property, leasing of defence objec ts, selling (including exports) and purchasing 
(including imports) of weapon, military equipment,  ammunition, their spare and component units,  
production, equipment and corresponding technology of double application for Armed Forces, other 
troops and military units of the Republic of Kazakhstan; 
20) liquidation and conser vation of state-owned accident-risk inactive mines and coal enterprises, 
under the list determined by the Government, and also  liquidation of consequences of their activities; 
21) rendering and automatization of state services on "single window". 
22) performance of mountain rescue and other sp ecial operations in emergency and accident 
situations, protection from fire, flood and other natural disasters; 
23) pre-school education and training, add itional education, technical, professional and 
post-secondary education; 
24) postgraduate education entities under the President of the Republic of Kazakhstan; 
25) work safety and protection of  employment, so cial protection of population, except activities, 
performed by the authorised organization according to the Law of the Republic of Kazakhstan on 
"Pension safety", culture and sports; 
26) protection, ensuring sustainable use, reproduc tion and breeding of fauna and flora spices for 
the purposes of preserving biological diversity and ge netic stock, and protection of nature (zoological 
gardens, botanical gardens, dendrological parks) , aviation work for protection and guarding of the 
forest reserves; 
27) performance of topographic-geodesic and cartographic works; 28) rendering of special social services to pers ons (families) in a difficult life situation; 
29) classification and providing for technical safety of vessels.  WT/ACC/KAZ/70 
Page 44  
 
  ANNEX 3 
Current State Monopoly Activities 
No. Title of the Legislative Act Types of State Monopoly 
1. The Land Code of the Republic of Kazakhstan of 
20 June 2003  Administration of state land cadastre of the 
Republic of Kazakhstan 
2. The Forestry Code of the Republic of Kazakhstan 
of 8 July 2003 Forest regulation, connected with calculation of 
forest resources, territori al arrangement of forest 
fund, including establishing borders of state forest fund, state monitoring of forests, planning 
maintenance of forestry and forest exploitation.   
3. The Ecology Code of the Republic of Kazakhstan 
of 9 January 2007  Administration of meteorological and hydrologic 
monitoring and monitoring environmental situation  
4. The Code on Public Health and the Health Care 
System of the Republic of Kazakhstan of 
18 September 2009 1. Expertise of drugs, items of medical purpose 
and medical equipment  
2. Evaluation of safety and quality of drugs, 
items of medical purpose, registered in the Republic of Kazakhstan.  
5. The Law on Pension safe ty  in the Republic of 
Kazakhstan of 20 June 1997 State monopoly in Pension safety 
 
6. The Law on Registration of Mortgage of Movable 
Property of 30 June 1998 1. Registration of mortgage of movable 
property, not subject to mandatory state 
registration; 
2. Information services performed by giving 
extract from the register of movable property 
mortgages;  
3. Correction of errors in registration documents 
made by the applicant   
7. The Law on Quarantine of Plants of 
11 February 1999  Positioning and termination of dissemination sites 
of quarantine objects 
8. The Law on Protection of Selective Achievements 
of 13 July 1999 State monopoly in protection of selective 
achievements  
9. The Law on Patents of 16 July 1999 State monopoly in protecting inventions, useful 
models, industrial samples 
10. The Law on Trade Marks, Service Marks and 
Appellations of Origin of Goods of 26 July 1999 State monopoly in protecting trademarks, service 
marks and appellations of origin of goods 
11. The Law on Valuating Activity in the Republic of 
Kazakhstan of 30 November 2000 Defining price of taxable objects (housing, country 
house construction, basement floor, cellar of the housing, garage)  
12. The Law on Architectur al, Town Planning and 
Construction Activity in the Republic of 
Kazakhstan of 16 July 2001 Conducting state expertise of projects (pre-project 
and construction documents) 
13. The Law on Veterinary of the Republic of 
Kazakhstan of 10 July 2002 1. Diagnosing extremely hazardous contagious 
animal diseases, included in the list, approved 
by the Government of the Republic of 
Kazakhstan; 
2. Diagnosing enzootic animal diseases, 
included in the list approved by the competent  WT/ACC/KAZ/70 
 Page 45 
 
 
  No. Title of the Legislative Act Types of State Monopoly 
authority 
14. The Law on Electronic Document and Electronic 
Digital Signature of the Republic of Kazakhstan of 
7 January 2003   State monopoly in the sphere of electronic 
document and electronic digital signature 
15. The Law on Mandatory Social Insurance of the 
Republic of Kazakhstan of 25 April 2003 State monopoly in the sphe re of mandatory social 
insurance 
16. The Law on Communication of the Republic of 
Kazakhstan of 5 July 2004 State monopoly in the field of communication 
17. The Law on Informatisation of the Republic of 
Kazakhstan of 11 January 2007 State monopoly in the field of informatisation 
18. The Law on State Registration of Rights for 
Immovable Property of the Republic of 
Kazakhstan of 26 July 2007  State monopoly in the field of state technical 
observation of buildings, constructions and/or their 
components  
19. The Law on Safeguarding Activity of the Republic 
of Kazakhstan of 19 October 2000  Security services for facilities subject to the State 
protection 
20. The Law on State Statistics of the Republic of 
Kazakhstan of 19 March 2010 State monopoly in the field of state statistics 
21. The Law on Using Air Space of the Republic of 
Kazakhstan and aviation ac tivity of 15 July 2010 Preparation and issuing preliminary conclusion to 
certification inspection 
 WT/ACC/KAZ/70 
Page 46  
 
  ANNEX 4 
Criteria of Sufficient Processing of Goods 
Extract from Annex 9 to the Resolution of the G overnment of the Republic of Kazakhstan No. 1647 
"On Approval of the Rules of Determining the Coun try of Origin of Goods, Drafting and Issuing 
Expertise Acts on Origin of Goods and Issuing a Ce rtificate on Origin of Goods" of 22 October 2009. 
HS Code Commodity name Terms, Manufacturing and Technological 
Operations required for a Commodity to 
Acquire an Origin Status when Commodities 
from Third Countries are used in a Production 
Process 
1 2 3 
1806 Chocolate and other products containing 
cacao Production from materials of any tariff lines. But 
the cost of used materials of the same tariff line shall not exceed 50% of the final product price 
 
2009 Fruit juices (including grape must) and 
vegetable juices, unfermented and not 
containing added spirit, with or without 
added sugar or other sweetening substances Production from materials of any tariff lines. But 
the cost of used materials of the same tariff line 
shall not exceed 50% of the final product price 
 
8418 Refrigerators, freezers and other electric or 
another type of refrigerant or  freezing 
machinery; heat pump devices; apart from 
installations of air conditioning, commodity item 8415 Production from materials of any tariff line 
provided following technological operations are 
fulfilled: 
- manufacturing body parts; - manufacturing control board; 
- manufacturing electric wire elements; 
- blocks assembling and mounting; - filling refrigerant coolant; 
- parameters setting and controlling. 
Group 85 Electric machines  and equipment, their 
parts; sound-recording and sound-reproducing equipment, equipment 
for recording and reproducing television 
image and sound, their parts and accessory, apart from commodities of following items, 
for which the rules are given further:  8501, 
8502, 8507, 8518, 8519-8521, 8523-8528, 8535-8537, 8542, 8544, 8545 Production upon which the cost of all used 
materials shall not exceed 50 % of the price of the final product.  In the above-mentioned limit, 
materials classified in the same position as the 
product itself, can only be used to the amount within 10% of the price of the final product 
 
8508 Vacuum cleaners Production from any tariff line materials upon 
fulfilling following technological operations: - manufacturing the body, manufacturing 
electric wire elements; 
- blocks assembling and mounting. 
8516 50 000 0 Microwave ovens Production from materials of any tariff line 
provided following technological operations are 
fulfilled: 
- manufacturing the body; - manufacturing electric wire elements; 
- blocks assembling and mounting. 
8701 Tractors (apart from tractor of 8709 
commodity item)  Production upon which the cost of used modules 
and parts shall not exceed in the first year from the commencement of production of the 
commodity - 95 % of the final product price; for 
the second year - 90 % of the final product price; for the third year - 85 % of the final product price;  WT/ACC/KAZ/70 
 Page 47 
 
 
  HS Code Commodity name Terms, Manufacturing and Technological 
Operations required for a Commodity to 
Acquire an Origin Status when Commodities 
from Third Countries are used in a Production 
Process 
1 2 3 
for the fourth year - 80 % of the final product 
price; for the fifth year - 75 % of the final product 
price; for the sixth year - 70 % of the final product 
price,  and provided following technological operations are fulfilled:  installation of forward 
axle with a semi frame; installation of engine; 
installation of rear ax le; hydraulic housing 
mounting; hydraulic hinge assembling and 
mounting; assembling and installation of support 
with a cordon shaft; assembling and mounting of air-storage tank; installation of hydraulic system 
oil line; assembling and mounting of fuel tanks; 
installation of steering link with a cylinder; assembling and mounting of steering link with 
blocking tap; installation of front wings support 
hook; assembling and mounting of oil and water radiator; mounting of hydrostatic power steering; 
installation of audio signal; installation of exhaust 
box; oil filling into engine, back axle and hydraulic housing; testing and inspection of 
hydraulic system and engine; installation of gas 
struts, mirrors and sun viso r; installation of flash 
lights and overall headlamps, front and rear; 
installation of window wipers, accumulators; assembling and installation of rear wings; 
mounting of tractor body; assembling and 
installation of devices board and electric wire cords; installation of steering pads, front driving 
axle pull-rod switching, stacks switching off; 
blinds, pull rod, parking brake lever, coupling installation; installation of front and rear wheels; 
hoses, heating device connecting, and installation 
of steering wheel; assembling and installation of casing; installation of tags, hand holds and 
protecting cover; installation of floors and side 
panels 
8702-8704, apart from 
goods in 
lines 8703**, 
8702***, 
8704*** Cars and other motor vehicles designated 
for transportation of passengers including 
utility vehicles, vans and racing cars and 
trucks Production upon which the cost of all used 
materials shall not exceed 50 % of the price of the 
final product provided following technological 
operations are fulfilled:  
- body installation and painting (of the cabin);  
- engine installation and fixing;  
- connecting the contro l mechanisms to the 
engine; 
- installation of radiators and connecting the 
cooling systems; 
- shockers fastening; 
- transmission system connecting; - installation of front suspension and semi 
axles, installation of rear suspension; 
- connecting the steering to wheel hub front WT/ACC/KAZ/70 
Page 48  
 
  HS Code Commodity name Terms, Manufacturing and Technological 
Operations required for a Commodity to 
Acquire an Origin Status when Commodities 
from Third Countries are used in a Production 
Process 
1 2 3 
wheels; 
- wheels installation and adjustment of wheel 
hub front collar tie; 
- installation of ignition coil; - charging and flushing of steering; 
- hydraulic system, brakes, hydro 
entanglement;  
- installation and switching on the lamps, front 
and rear headlights; 
- installation of exhaust box and exhaust line 
sections; 
- installation of  fuel tank and connecting the 
fuel lines group; 
- installation of generator component and belt 
tension adjustment; 
- installation and connection of accumulator; 
checking the aboard electric circuits 
operation; 
- engine diagnostics and adjustment; - inspection of breaks efficiency; 
- isolation of quickly damaged spots; 
- defects elimination after assembling; 
- putting identification number on the tag and 
automobile; run-in. 
In the above-mentioned technological and 
production operations for commodities of 8704 
items, instead of cabin body manufacturing and painting, it is allowed to execute operations on 
manufacturing the frame w ith a suspension and  
axle bridge 
8702***, 8704*** Motor vehicles designated for transportation 
of passengers including the driver; Motor 
vehicles designated for cargo carriage apart 
from commodity item, 8704 90 000 0 
 When manufacturing each commodity type in 
annual volume up to 10,000 units per year – 
manufacturing when the cost of used modules and 
parts shall not exceed in the first year from the commencement of production of the given 
commodity - 95 % of the final product price; for 
the second year - 90 % of the final product price; for the third year - 85 % of the final product price; 
for the fourth year - 80 % of the final product 
price;  and provided the following technological 
operations are fulfilled: 
- installation of power pack; 
- connecting accumulator with aboard electric 
circuits check; 
- filling steering, brakes, hydro entanglement; 
- installation of fuel tank and connecting fuel 
lines; 
- installation and switching on the lamps, front 
and rear headlights; 
- installation of exhaust box and exhaust lines  WT/ACC/KAZ/70 
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  HS Code Commodity name Terms, Manufacturing and Technological 
Operations required for a Commodity to 
Acquire an Origin Status when Commodities 
from Third Countries are used in a Production 
Process 
1 2 3 
sections; 
- connection of control mechanisms to engine; 
- installation of  radiators and connection of 
cooling systems; 
- shock-absorbers fixing; 
- transmission connection; 
- installation of front and rear suspensions and 
semi axles; 
- connecting steering to wheel hubs of front 
wheels; 
- check of brakes; 
- isolation of quickly damaged spots; 
- testing motor vehicles. 
When manufacturing each commodity type in 
annual volume of 10,000 units per year – 
manufacturing when the cost of used modules and parts shall not exceed 70 % of the final cost of the 
product, and provided the following technological 
operations are fulfilled: 
- cabin body welding and painting; 
- installation of cabin elements, control panel, 
cabin winds and wind screen; 
- engine installation and fastening; 
- control mechanisms connection to engine; - installation of radiators and connection of 
cooling systems; 
- shock-absorbers fastening; - transmission elements mounting; 
- installation of front and rear suspensions; 
- steering mounting; - installation and adjustment of front hub 
bearings pulling; 
- filling the steering, brakes, hydro 
entanglement system; 
- installation and connection of lamps, front 
and rear headlights; 
- installation of exhaust box exhaust line; 
- installation of fuel tank and connection of 
fuel lines; 
- installation of generator component and 
adjustment of belt tension; accumulator 
connection with checkin g the aboard electric 
circuits operation; 
- motor vehicle testing. WT/ACC/KAZ/70 
Page 50  
 
  HS Code Commodity name Terms, Manufacturing and Technological 
Operations required for a Commodity to 
Acquire an Origin Status when Commodities 
from Third Countries are used in a Production 
Process 
1 2 3 
8702***, 
8704*** Motor vehicles designated for transportation 
of passengers including the driver; Motor 
vehicles designated for cargo carriage apart 
from commodity item, 8704 90 000 0  When manufacturing each commodity type in 
annual volume up to 10,000 units per year – 
manufacturing when the cost of used modules and 
parts shall not exceed in the first year from the commencement of production of the given 
commodity - 95 % of the final product price; for 
the second year - 90 % of the final product price; for the third year - 85 % of the final product price; 
for the fourth year - 80 % of the final product 
price; and provided the following technological operations are fulfilled: 
- installation of power pack; 
- connecting accumulator with aboard electric 
circuits check; 
- filling steering, brakes, hydro entanglement; 
- installation of fuel tank and connecting fuel 
lines; 
- installation and switching on the lamps, front 
and rear headlights; 
- installation of exhaust box and exhaust lines 
sections; 
- connection of control mechanisms to engine; 
- installation of  radiators and connection of 
cooling systems; 
- shock-absorbers fixing; 
- transmission connection; 
- installation of front and rear suspensions and 
semi axles; 
- connecting steering to wheel hubs of front 
wheels; 
- check of brakes; 
- isolation of quickly damaged spots; 
- testing motor vehicles.  
When manufacturing each commodity type in 
annual volume of 10,000 units per year – 
manufacturing when the cost of used modules and parts shall not exceed 70 % of the final cost of the 
product, and provided the following technological 
operations are fulfilled: 
- cabin body welding and painting; 
- installation of cabin elements, control panel, 
cabin winds and wind screen; 
- engine installation and fastening; 
- control mechanisms connection to engine; - installation of radiators and connection of 
cooling systems; 
- shock-absorbers fastening; - transmission elements mounting; 
- installation of front and rear suspensions; 
- steering mounting;  WT/ACC/KAZ/70 
 Page 51 
 
 
  HS Code Commodity name Terms, Manufacturing and Technological 
Operations required for a Commodity to 
Acquire an Origin Status when Commodities 
from Third Countries are used in a Production 
Process 
1 2 3 
- installation and adjustment of front hub 
bearings pulling; 
- filling the steering, brakes, hydro 
entanglement system; 
- installation and connection of lamps, front 
and rear headlights; 
- installation of exhaust box exhaust line; - installation of fuel tank and connection of 
fuel lines; 
- installation of generator component and 
adjustment of belt tension; accumulator 
connection with checkin g the aboard electric 
circuits operation; 
- motor vehicle testing. 
9403 Furniture  Production upon which the cost of all used 
materials shall not exceed 50 % of the price of the 
final product. 
Notes:  ** The present criteria of sufficient processing of goods are applied to goods of HS 8703, 8706, 8707 
manufactured within the large-scale investment proj ects.  The large-scale investment project means 
the project on establishment and development of capacity for the production of modern motor 
vehicles and automotive components carried out by a juridical person that has invested into the basic 
capital not less than 2 billion tenge as of the date of commencement of the production.  Investment 
volume shall be confirmed by audit report.  
  *** The present criteria of appropriate goods processing are applied to the goods of HS 8702, 8704, 
8705 manufactured within the larg e-scale investment projects.  Th e large-scale investment project 
means the project on establishment and developm ent of capacity for manufacturing modern motor 
vehicles and components carried out by a juridical person that has invested into the basic capital not 
less than 0.5 billion tenge as of the date of comm encement of the production.  Investment volume 
shall be confirmed by audit report.   
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