12-5102  JOB/ACC/31/Add.1           20 September 2012 
 
 
Working Party on the              Original:  English  
Accession of Kazakhstan  
 
 
WORKING PARTY ON THE ACCESSION OF 
KAZAKHSTAN TO THE WTO 
 
Additional Questions and Replies 
 
Addendum 
   The following submission, dated 16 September 2012,   is being circulated to Members of the 
Working Party, at the request of the De legation of the Republic  of Kazakhstan.  
 
 
_______________ 
 JOB/ACC/31/Add.1 
Page 2  
 
  - Trade-Related Investment Measures (TRIMs) 
Paragraphs 1-6 Question 1  This Member believes that Articles 50, 69, and 78 of Kazakhstan's Law No. 291-I are 
inconsistent with obligations under Article 2 of the WTO TRIMs Agreement.  This Member also 
believes that the provisions of the law regarding lo cal content are not well defined, and that they 
could be applied in such a way that is both tr ade restrictive and harmful to investors seeking to 
enter this market.  As such, we would appreciate if Kazakhstan could provide further information on how it defines local cont ent with respect to the Law No. 291-I. 
Answer: 
Local (Kazakhstan) content in goods is defined as percentage value of used domestic materials and 
inputs in the value of finished goods produced in the territory of Kazakhstan.  Kazakhstani content in 
goods is defined by subsurface user on the basis of Certificate CT-KZ issued for domestically 
produced goods. In the case of absence of this certificat e, the Kazakhstani conten t in goods equals to 
zero.  
The Law "On Subsurface and its Use" establishes a requirement for subsurface users and their 
contractors to use in subsurface operations dom estically produces goods and services provided that 
they met the requirements of project documentation and legislation of the Re public of Kazakhstan on 
technical regulation.    
Question 2  
In addition, we would like further information on  how local content provisions are negotiated in 
contracts between Kazakhstan and foreign investors. 
Answer: 
Local content provisions are determined and estab lished individually in each  contract on subsurface 
use, depending on the specifics of the goods and ser vices required for implementation of the contract.  
Amendments are subject to negotiations between th e authorised body and subsurface user, and could 
be introduced on the basis of c onsensus between the parties. 
Question 3  
This Member also requests that Kazakhstan indica te whether and how it will bring this law into 
compliance with the WTO TRIMs Agreement.  
Answer: 
Today, with oil and gas taking more than 70 per cent share of Kazakhstan's exports and only 
10 per cent of the total FDI inflows invested into  development of non-extracting processing industries, 
diversification of the national economy is the major challenge for Kazakhstan's Government.  In order 
to channel the investments attracted into the oil and gas sector into the development of industries 
producing value-added goods  and servicing oil and gas companies, Kazakhstan applies local content 
requirements in the form of mandatory purcha se of locally produced goods and services.  
In particular, local content conditions are c ontained in the contracts on subsoil use.   JOB/ACC/31/Add.1 
 Page 3 
 
 
  With regard to the local content requirements to pr ocure domestically produced goods in the contracts 
on subsoil use, Kazakhstan asks for a transitional peri od until the end of the terms of these contracts.  
It should be noted that these contracts contain a number of preferences for investors such as import 
duty and VAT exemptions for imported equipment a nd other goods.  The local content requirements 
were used for balancing those preferences.  Thus, re quested transition period up  to the expiry of the 
terms of signed contracts will allow Kazakhsta n to adapt national processing industry to the 
competitive environment within WTO membership as well as to address challenges related to 
unemployment and sustainable economic growth. 
Question 4  Could you please identify and provide copies in English of the laws that were replaced by 
Law No. 291 of June 2010?  (The old Subsoil Law from 1996 as well as its amendments 
from 2009; Laws No. 2828 and No. 2350).  
Answer: 
The copies of the laws in English ar e provided to the WTO Secretariat.  
Question 5  Could you please explain the new elements introduced with Law No. 291?  
Answer: 
The Law No. 291 "On Subsurface and its Use" of 24 June 2010 contains the following new provisions 
with respect to local content requirements: 
- Clarifications were given to the definitions on local content in goods, services and workforce.  
- New terms "register of goods, works and ser vices used in subsurface operations" and 
"uniform calculation method of local content in procurement of goods, works and services by organizations" were introduced.  
The mandatory requirement for subsurface users to  submit report on procurem ent goods and services 
were stipulated in Article 63 of the Law No. 282 8 "On Subsurface and its Use" of 1996 as follows: 
- annually, not later than February 1, to subm it its annual program of planned procurement of 
goods, works and services in the form approved by the authorised body;   
- on a quarterly basis, not later than fifteenth day of the month following the reporting period, 
submit a report on purchased goods, works and services in the form approved by the 
authorised body.  
Question 6  
Is Law No. 233-IV related to Law No. 291 and what is its impact on Law No. 291?  
Answer: 
Law No. 233-IV of 29 December 2009 introduced am endments to the Law No. 2828 "On Subsurface 
and its Use" of 1996, which was later replaced by the Law No. 291 "On Subsurface and its Use" 
of 2010.   JOB/ACC/31/Add.1 
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  All the changes made with regard to local conten t requirement, introduced by the Law No. 233-IV to 
the Law No. 2828 "On Subsurface and its Use" of  1996, were incorporated into the Law No. 291 
"On Subsurface and its Use" of 2010.   
Question 7  Could you please identify the number of contract s existing before the entry into force of Law 
No. 291 and how many of them have been re-negotiated (you could provide separate 
explanations for contracts related to mining and to hydrocarbons)?  
Answer: 
a) Hydrocarbons 
Two hundred and twelve contracts existed before entry into force of the Law No. 291 of 2010.  
Currently, there are 204 contracts on hydrocarbons.  Eight  contracts lapsed or were terminated due to 
non-fulfilment of contractual obligations by subsurface users.  
One hundred ninety-two contracts were re-negotiate d in order to include numerical local content 
requirements.  
b) Mining sector 
Of 357 currently existing contracts 343 contracts we re signed before entry into force of the Law 
No. 291 of 2010.  Twelve contracts were signed after entry into force of the Law No. 291.   
Three hundred forty-two contracts were re-negotiate d in order to include numerical local content 
requirements.  
Question 8  
Could you please explain which parts of the contracts have been re-discussed?  Do the 
negotiations affect in any way the duration of the contracts?  
Answer: 
Upon entry into force of the new Law No. 291 "On Subsurface and Subsurface Use", the changes 
were introduced to contracts with the purpose to sp ecify the local content requirements in percentage 
terms.  Normally this was done through signing supplementary agreements to the contracts.   
The negotiations did not affect the duration of the amended contracts.  
Question 9  
Could you please specify what happens with cont racts in which issues related to the changes 
introduced with Law No. 291 are covered by the contract stability clauses?  Are those contracts 
amended?  
Answer: 
Three key Product Sharing Agreements (PSAs) cove red by the stability clause were not amended, 
therefore, they do not contain any numerical co mmitments on local content for procurement of goods 
and services.   JOB/ACC/31/Add.1 
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  In 2011, the companies operating within the framewo rk of the key three PSAs procured domestically 
produced goods for the total amount of to 3.8 billion tenge.  
In addition, 10 other less significant in terms of the volume of investments PSAs were not amended 
due to contract stability clause.    
Question 10  
Could you please specify the regime applicable to  state-owned companies with respect to local 
content requirements.  What are the differences that are applied vis-à-vis  private companies?  
Answer: 
The contracts of the subsurface users under state-ow ned companies, in particular "Sovereign Wealth 
Fund 'Samruk-Kazyna'", contain textual local c ontent commitments.  The procedures and specific 
local content requirements are stipulated in the Rules on Procurement of G oods, Works and Services 
by "Sovereign Wealth Fund 'Samruk-Kazyna'" and orga nizations with fifty or more per cent of shares 
directly or indirectly owned by "Samruk-Kazy na", which has been approved by the Board of 
Directors of "SWF Samruk-Kazyna" on 18 November 2009.  
More detailed information is provided in the attach ed brief information on procurement rules of the 
Sovereign Welfare Fund "Samruk-Kazyna" (Annex 1). 
Question 11  
Could Kazakhstan confirm the precise figure of contracts signed containing local content 
requirements in the hydrocarbons and mining sectors?   Have such contacts been signed in other 
sectors? 
Answer: 
Currently, there are 559 contracts on subsurface use, in particular, 204 contracts on crude 
hydrocarbons and 355 contracts in the mining sector.  
- Of 204 contracts on crude hydrocarbons, 192 (94. 1 per cent) contracts contain numerical local 
content commitments (in percentage) and 12 contracts contain textual local content 
commitments.  
- Of 355 contracts on mining 342 (96.3 per cent) contracts contain numerical commitments 
(in percentage) and 13 (3.6 per cent) contract s contain textual local content commitments.  
The standard text of the commitments on local  content in subsoil use contracts is as the 
following:  
"To use equipment, materials and goods produ ced in the Republic of Kazakhstan provided 
that they meet the requirements of the project documentation and legislation of the Republic of 
Kazakhstan".  
The standard text of the numerical commitment on local content looks as follows:  
"The volume of the local content under the contract  each fiscal year shall not be less than (...) 
percent with respect to goods, not less than (...) per cent with respect to works and not less than (...) 
per cent with respect to services in conducting operati ons on subsoil".  JOB/ACC/31/Add.1 
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  Of 204 contracts on crude hydrocarbons use:  
- 142 contracts will expire by 2020  
- 62 contracts will expire in the period from 2021 to 2042.  
Of 355 contracts on mining:  
- 99 contracts will expire by 2020  
- 256 contracts will expire in the period from 2021 to 2037. 
More detailed information is provided in the attach ed brief information on procurement rules of the 
subsurface users (Annex 2). 
Question 12  Could Kazakhstan specify the precise rules that are applicable in terms of local content 
requirements?  
Answer: 
Local (Kazakhstan) content in goods is defined as percentage value of used domestic materials and 
inputs in the value of finished goods produced in the territory of Kazakhstan.  Kazakhstani content in 
goods is defined by subsurface user on the basis of Certificate CT-KZ issued for domestically 
produced goods.  In the case of absence of this cer tificate, the Kazakhstani c ontent in goods equals to 
zero.  
The Law "On Subsurface and its Use" establishes a requirement for subsurface users and their 
contractors to use in subsurface operations dom estically produces goods and services provided that 
they met the requirements of project documentation and legislation of the Re public of Kazakhstan on 
technical regulation.  
In accordance with Article 77 of the Law "On Subsurface and its Use", the purchase of goods and 
services for conducting subsurface operations could be  carried out by one of the following methods: 
1) open tender; 
2) from a single source; 
3) price offers request; 
4) through the electronic procurement system; 5) through commodity exchanges.  
Local content provisions are determined and estab lished individually in each  contract on subsurface 
use, depending on the specifics of the goods and ser vices required for implementation of the contract.  
Amendments are subject to negotiations between th e authorised body and subsurface user, and could 
be introduced on the basis of consensus between the parties.  
A subsoil user in the process of determining th e winner of competitive bid shall grant a putative 
20 per cent reduction in the price of any bid submitted by local producers of goods.  Procedure on 
purchase of goods and services is also governed by R esolution of the Government of the Republic of 
Kazakhstan No. 1139 "On Approval of Rules fo r Purchase of Goods, Works and Services in 
Performance of the Subsurface Use Operations" of 28 November 2007.    JOB/ACC/31/Add.1 
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  Calculation of local content in goods and servi ces is made pursuant to Uniform Methodology for 
Calculation of the Kazakhstani Content by Orga nizations Purchasing Goods and Services, approved 
by Resolution of the Government of the Repub lic of Kazakhstan No. 964 of 20 September 2010. 
Question 13  In paragraph 5 of the Draft Working Party Report , Kazakhstan explains that it had introduced 
the requirement to use domestically  produced products and services in the oil sector in order to:  
(i) ensure the rational restructuring of subsurface use; (ii) achieve sustainable economic 
development through economic diversification a nd reduction of the economy's high dependence 
on volatile world prices for exports of min eral resources; and (iii) create an environment 
conducive to development of processing industri es and production of high value-added goods 
and services.  However, the requirement to use domestically produced products and services is 
inconsistent with the WTO TRIMs Agreement.  This Member expresses its concern.  
Are preferential treatments granted to all firm s which fully meet local content requirements in 
accordance with individual contracts?  
Answer: 
In accordance with paragraph 2 of Article 78 of the Law No. 291-I "On Subsurface and its Use" of 
24 June 2010 (hereinafter Law), in determining the winner of a tender subsurface user shall grant a 
putative 20 per cent reduction in the price of an y bid submitted by domestic producers of goods and 
services.  In addition, according to subparagraphs 36 and 59 of Article 1 of the Law: 
Kazakhstani producer of works, services - citizen s of the Republic of Ka zakhstan and (or) legal 
entities, established in accordance with the laws of the Republic of Kazakhstan, located on the 
territory of Kazakhstan, which use no less than 95 per cent of the citizens of the Republic of 
Kazakhstan in the total number of employees; 
Kazakhstani producer of goods - citizens of the Re public of Kazakhstan and (or) legal entities of the 
Republic of Kazakhstan, producing goods of Kazakhstani origin. 
The local content provisions related to services pu rchase by sub-surface users are stipulated in 
Kazakhstan's Services Schedule and in the Secti on "Policy Affecting Trade in Services" of the 
Working Party Report of Kazakhstan, and is not regulated by the WTO TRIMs Agreement. 
Question 14  Paragraphs 5 and 9:  According to Article 8 of the Resolution of the Government of the 
Republic of Kazakhstan No. 45 of 13 January, 2012, limitation of the ratio of foreign labour 
force 'shall remain in force until the entry of Kazakhstan into the World Trade Organization'.  
On the other hand, the Draft Working Party Repot refers only to the Subsurface Law (the Law 
No. 291-I of 24 June 2010) and mentions that  Kazakhstan will lift the requirement of a 
minimum Kazakhstan content for personnel or services of more than 50 per cent from the date 
of accession to the WTO.  Will the local conten t requirement in employment be lifted by the day 
of Kazakhstan's accession in all sectors other than the one regulated in the Law No. 291-I of 
24 June 2010? 
Answer: 
1) Currently, in accordance with Article 8 of  the Government Resolution No. 45 "Rules and 
Conditions for issuance of permits to foreign worker s for employment and to employers for attracting JOB/ACC/31/Add.1 
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  foreign labour force" of 13 January 2012, issuance of  permits to employers for attracting all categories 
foreign labour force is subject to the following ratios:  
- from 1 January 2012, the number of citizens of the Republic of Kazakhstan in first  
(executives and their deputies) and second (managers and specialists) categories shall 
be not less than 70 per cent of the staff; 
- from 1 January 2012, the number of citizen s of the Republic of Kazakhstan in third 
(specialists) and fourth (qualified workers) categories shall be not less than 
90 per cent of the staff. 
In addition to the limitation of the ratio of forei gn labour force, the Government of the Republic of 
Kazakhstan annually establishes quotas for attraction of  foreign work force, which for example in 
2012 is limited to one per cent of economi cally active population of Kazakhstan.   
Upon accession to the WTO, in accordance with its commi tments stipulated in the Services Schedule, 
Kazakhstan will not apply the above-mentioned quota vis-à-vis  Intra Corporate Transferees (ICTs).  
From the date of accession to the WTO, Kazakhstan will apply the following terms vis-à-vis  ICTs:  
- The number of ICTs will be limited to 50 pe r cent of the total number of managers and 
specialists within each category of the service supplier.  
- The total number of foreign executives will not exceed three persons within each service 
supplier. 
Therefore, currently applied terms and conditions fo r entry and temporary stay of ICTs in all those 
services sectors, where Kazakhstan undertook commitments stipulated in its Services Schedule, will 
be liberalized upon Kazakhstan' accession to the WTO.   
2) Currently, the Law No. 291-I "On Subsurface and Subsurface Use" of 24 June 2010 provides 
that when granting subsurface use rights to invest ors, the Government of Kazakhstan requires from  
investor to comply with local content requirement in personnel and services.   
This is a non-discriminatory requirement, which equally applies to both foreign and domestic 
investors signing investment agreements with th e Government of Kazakhstan on use of surface and 
subsurface resources.  Such contracts have to contai n obligations in respect of Kazakhstan's content in 
goods, services and personnel.  
The Law does not stipulate a minimum percentage for local content requirements.  The percentage of 
minimum local content, which might exceed 50 per cen t, is determined individually in each contract 
on subsurface use, depending on the complexity and specification of the project. 
In accordance with Kazakhstan's commitments stipul ated in the Section "Policy Affecting Trade in 
Services" of the Working Party Report of Kaza khstan, upon accession, in establishing the terms for 
conducting a tender for granting subsurface use ri ghts, Kazakhstan will not establish a minimum 
Kazakhstan content for personnel or ser vices of more than 50 per cent.  
Within five years from the date of its accession to  the WTO, Kazakhstan will bring into conformity 
with these commitments any contract signed betw een September 2011 and the date of Kazakhstan's 
accession to the WTO, which contained more than 50 percent local content requirement for personnel 
or services.  JOB/ACC/31/Add.1 
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  Question 15 
In paragraph 9, Kazakhstan confirmed that all WTO-inconsistent measures applied pursuant to 
Law No. 291-1 and Order No. 113, including requi rements for preferential tariffs or tariff 
exemptions, would be eliminated by [xxxx].  
- Could Kazakhstan please explain the basis on which it is seeking a transition period to 
eliminate these WTO inconsistent measures? 
Answer: 
Today, with oil and gas taking more than 70 per cent share of Kazakhstan's exports and only 
10 per cent of the total FDI inflows invested into  development of non-extracting processing industries, 
diversification of the national economy is the major challenge for Kazakhstan's Government.  In order 
to channel the investments attracted into the oil and gas sector into the development of industries 
producing value-added goods  and servicing oil and gas companies, Kazakhstan applies local content 
requirements in the form of mandatory purcha se of locally produced goods and services.  
In particular, local content conditions are c ontained in the contracts on subsoil use.  
With regard to the local content requirements to pr ocure domestically produced goods in the contracts 
on subsoil use, Kazakhstan asks for a transitional peri od until the end of the terms of these contracts.  
It should be noted that these contracts contain a number of preferences for investors such as import 
duty and VAT exemptions for imported equipment a nd other goods.  The local content requirements 
were used for balancing those preferences.  Thus, re quested transition period up  to the expiry of the 
terms of signed contracts will allow Kazakhsta n to adapt national processing industry to the 
competitive environment within WTO membership as well as to address challenges related to 
unemployment and sustainable economic growth. 
requirements are stipulated in the Rules on Procur ement of Goods, Works and Services by "Sovereign 
Wealth Fund 'Samruk-Kazyna'" and organizations with fifty or more per cent of shares directly or 
indirectly owned by "Samruk-Kazyna", which has be en approved by the Board of Directors of "SWF 
Samruk-Kazyna" on 18 November 2009.  
More detailed information is provided in the attach ed brief information on procurement rules of the 
Sovereign Welfare Fund "Samruk-Kazyna" (Annex 1).  
Question 16  Could you please provide a short background and explain the main provisions of 
CU Commission Decision No. 130, including its scope? 
Answer: 
The Decision of the Customs Union Commission No. 130 was adopted on 27 November 2009.  
This Decision contains a number of provisions re gulating the application of import customs tariffs 
under the Common Customs Tariff of the Customs Union, including the application of tariff 
concessions and preferences. 
Paragraph 7 of the Decision envisages that au tomobiles (HS 8703), produced with the use of 
"industrial assembly" regime, are exempted from import duties if they meet the following criteria: 
a) the presence of production capacity under two- shift operating regime of not less than 
25,000 pieces per year; carrying out operations of welding, assembly and painting of the JOB/ACC/31/Add.1 
Page 10  
 
  body; importation of car parts originating from countries not party to the Customs Union 
under the positions of the Common Customs Tariff of the Customs Union "for the industrial 
assembly of motor vehicles under headings 87 01-8705, their components and assemblies" in 
the volume of not more than 70 per cent of the total value of the auto-components used in the 
production, taking into account the cost of the body, being classified in heading 8707 HS CU. 
b) the presence as of 1 October 2009 of producti on of motor vehicles with production capacity 
under two-shift operating regime of not less th an 5,000 pieces per year, and conclusion of a 
contract with the Government of the CU Party on whose territory the production takes place.  
The contract had to contain obligations that c onditions specified in paragraph a) were to be 
fulfilled within the period not exceeding 84 months from the date of adoption of such 
obligations.  
The list of juridical persons producing motor ve hicles that meet the abovementioned criteria is 
approved by the CU Commission. 
Moreover, according to the Decision No. 130 in case when the national legislation of a CU Party 
establishes requirement on localization of components used in industrial assembly of motor vehicles 
under headings 8701-8705, use of auto-components pr oduced in other CU Parties is recognized as a 
proper implementation of the localization requirement.   
Question 17  Could you please summarize the main provisions of  the Rules on Concluding the Agreement on 
Industrial Assembly of Motor Vehicles? 
Answer: 
Order of the Deputy Prime Minister and Minister  of Industry and Trade No. 113 of 11 June 2010 
establishes the rules and procedures for concludi ng agreements on industrial assembly of motor 
vehicles under the CU heading 8703 (hereinaft er – agreements on industrial assembly). 
Agreements on industrial assembly are signed between the Ministry of Industry and 
New Technologies and juridical persons  of the Republic of Kazakhstan. 
According to the Rules, the industria l assembly of motor vehicles means: 
- a system of serial production based on the technological processes providing the project 
production  capacity under two-shift  operati on of  not less than 25,000 pieces per year; and 
that includes the carrying out of the following technical operations: 
- welding, assembly and painting of the body; 
- installation of a cabin equipment; 
- installation of a power train, steer ing mechanism, and exhaust system; 
- installation of electrical equipment, suspension components; 
- installation of exterior elements; 
- conducting control tests of finished motor vehicles. 
The mandatory conditionalities for signing  the agreements are the presence of productive assets of at 
least 2 billion tenge (approximately 13 million US  dollars) as of the agreement signing date; and 
obligation in a period not exceeding 84 months fro m signing date of the agreement to fulfill the 
following:  JOB/ACC/31/Add.1 
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  - to launch the industrial assembly of at least one model of the motor vehicles of heading 8703 
HS CU; 
- to import car parts originating from countri es not party to the Customs Union under the 
positions of the Unified Customs Tariff of the Customs Union "for the industrial assembly of 
motor vehicles under headings 8701-8705, thei r components and assemblies" in volume of no 
more than 70 per cent of the total value of th e auto-components used in the production, taking 
into account the cost of the body, being classified under the heading 8707 HS CU. 
The industrial assembly agreement allows producers to  import auto components used in the industrial 
assembly of automobiles using the preferential impo rt duties (from 0 to 5 per cent) under the tariff 
lines of the Common Customs Tariff of the Customs Union "for the industrial assembly of motor 
vehicles under headings 8701-8705, their components and assemblies". 
The agreements shall contain a timetable on implementation of the agreement stages indicating the 
starting date of production of motor vehicles, dead lines for organization of operations on welding, 
painting and assembly of body.  
The agreements can be signed for a period not exceed ing eight years with the possibility of further 
prolongation for a period not exceeding ten years.   
Question 18  
Could you please list the agreements signed indicati ng the date of signature and the length of 
the contract?  
Answer: 
There are four agreements on industrial assembly of motor vehicles: 
1) Agreement on industrial assembly of motor ve hicles between the Republic of Kazakhstan and 
JSC MINT "ASIA AUTO"; signed on 24 June 2010 for a term of eight years with the 
possibility of extension for a period not exceeding ten years; 
2) Agreement on industrial assembly of motor ve hicles between the Republic of Kazakhstan and 
JSC MINT "Saur"; signed on 24 June 2010 for a term of eight years with the possibility of 
extension for a period not exceeding 10 years; 
3) Agreement on industrial assembly of motor ve hicles between the Republic of Kazakhstan and 
JSC MINT "Agromashholding"; signed on 24 June  2010 for a term of eight years with the 
possibility of extension for a period not exceeding ten years; 
4) Agreement on industrial assembly of motor ve hicles between the Republic of Kazakhstan and 
the MINT LP "SaryarkaAvtoProm"; signed on 24 June 2010 for a term of eight years with the 
possibility of extension for a period not exceeding ten years. 
Question 19 
Could you please provide details on the four projects in a table format in an Annex? 
Answer:  
Details on the four auto assembly projects are provided in the Annex 3. JOB/ACC/31/Add.1 
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  Question 20  
Could you please confirm that the LCR requiremen ts only concern automobiles and not other 
motor vehicles or agriculture machinery? 
Answer: 
Rules on conclusion of industrial assembly of motor vehicles No. 113 that contain the local content 
requirements provide for assembly of motor ve hicles under the CU HS heading 8703 - automobiles 
and other motor vehicles intended for transporta tion of passengers (excluding motor vehicles of 
HS heading 87021) including cargo vans and racing cars.  These Rules do not envisage industrial 
assembly of other types of motor vehicles or agricultural machinery.  
Question 21  
Could you please specify the precise benefits awarded to companies that have concluded 
agreements on industrial assembly? 
Answer: 
Companies that signed an agreement on industrial assembly have a right to import auto components 
used in assembly of automobiles under preferential ta riffs (from 0 to 5 per cent) under the tariff lines 
of the Common Customs Tariff of the Customs Union "for industrial assembly of motor vehicles 
under headings 8701-8705, their components and ass emblies" provided that they meet all the 
conditions provided for in the agreement.  The table listing examples of the preferential tariff lines is 
presented in the Annex 4. 
Question 22 
Preferential Tariff or Tariff Exemption Regi me in Motor Vehicles Section (regarding 
paragraphs 7 and 8). 
This Member would like to express its concern on  preferential tariffs or tariff exemption for 
imports of parts and components used or a ssembling motor vehicles which is mentioned in 
paragraph 7 of the Draft Working Party Report, in relation to the consistency with the TRIMs 
Agreement.  This Member would like to request fu rther inputs from Kazakhstan on this issue. 
Answer: 
The main provisions of the Rules on Concluding the Agreement on Industrial Assembly of Motor 
Vehicles: 
Order of the Deputy Prime Minister and Minister of Industry and Trade No. 113 of 11 June 2010 
establishes the Rules and Procedures for Concluding  Agreements on Industrial Assembly of Motor 
Vehicles under CU Heading 8703 (hereinafter  – Agreements on Industrial Assembly). 
Agreements on Industrial Assembly are signe d between the Ministry of Industry and 
New Technologies and the juridical pers ons of the Republic of Kazakhstan. 
According to the Rules, the industria l assembly of motor vehicles means: 
                                                      
1 8702 HS:  Motor vehicles intended for transportation of ten passengers and more, including a driver.   JOB/ACC/31/Add.1 
 Page 13 
 
 
  - a system of serial production based on the technological processes providing the project 
production  capacity under two- shift  operation of  not less than 25000 pieces per year; and 
that includes the carrying out of the following technical operations: 
- welding, assembly and painting of the body; 
- installation of a cabin equipment ; - installation of a power train, steer ing mechanism, and exhaust system; 
- installation of electrical equipment, suspension components; 
- installation of exterior elements; 
- conducting control tests of finished motor vehicles. 
The mandatory conditionalities for signing  the agreements are the presence of productive assets of at 
least 2 billion tenge (approximately 13 million US  dollars) as of the agreement signing date; and 
obligation in a period not exceeding 84 months fro m signing date of the agreement to fulfill the 
following: 
- to launch the industrial assembly of at least one model of the motor vehicles of heading 
8703 HS CU; 
- to import car parts originating from countri es not party to the Customs Union under the 
positions of the Unified Customs Tariff of the Customs Union "for the industrial assembly of 
motor vehicles under headings 8701-8705, thei r components and assemblies" in volume of no 
more than 70 per cent of the total value of th e auto-components used in the production, taking 
into account the cost of the body, being classified under the heading 8707 HS CU. 
The Industrial Assembly Agreement allows produ cers to import auto components used in the 
industrial assembly of automobiles using the preferential import duties (from 0 to 5 per cent) under 
the tariff lines of the Unified Customs Tariff of the Customs Union "for the industrial assembly of motor vehicles under headings 8701-8705, their components and assemblies". 
The agreements shall contain a timetable of implementation of agreement stages indicating the staring 
date of the production of motor vehicles, deadlines for organization of operati ons on welding, painting 
and assembly of body.  
The agreements can be signed for a period not ex ceeding 8 years with the possibility of further 
prolongation for a period not exceeding 10 years.   
There are 4 agreements on industrial assembly of motor vehicles: 
1) Agreement on industrial assembly of moto r between the Republic of Kazakhstan and JSC 
MINT "ASIA AUTO"; signed on 24 June 2010 for a term of 8 years with the possibility of extension for a period not exceeding 10 years; 
2) Agreement on industrial assembly of motor ve hicles between the Republic of Kazakhstan and 
JSC MINT "Saur"; signed on 24 June 2010 for a term of 8 years with the possibility of 
extension for a period not exceeding 10 years; 
3) Agreement on Industrial Assembly of Moto r Vehicles between the Republic of Kazakhstan 
and JSC MINT "Agromashholding"; signed on 24 June 2010 for a term of 8 years with the 
possibility of extension for a period not exceeding 10 years; 
4) Agreement on Industrial Assembly of Moto r Vehicles between the Republic of Kazakhstan 
and the MINT LP "SaryarkaAvtoProm"; signed on 24 June 2010 for a term of 8 years with 
the possibility of extension for a period not exceeding 10 years; 
Details on the four auto assembly projects are provided in the Annex 3. JOB/ACC/31/Add.1 
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  ANNEX 1 
Brief Note on Procurement of the National Welfare Fund "Samruk-Kazyna" 
1. Procurement made by the "National Welfare F und 'Samruk-Kazyna'" is regulated by the Law 
of the Republic of Kazakhstan No. 550-IV "On the Na tional Welfare Fund" (hereinafter - the Law) of 
1 February 2012 and the Rules on Procurement of  "National Welfare Fund 'Samruk-Kazyna'" and 
Organizations Fifty or More Percent of Shares of Which Directly or Indirectly Owned by the 
"Samruk-Kazyna" (hereinafter - the Holding)  approved by the Board of Directors of 
"NWF Samruk-Kazyna" on 18 November 2009 (hereinafter - the Rules). 
2. Procurement is carried out in accordance with one of the following five methods: 
1) the tender: 
- open; 
- closed; 
- two-stage (open, closed); 
2) price offers; 
3) electronic trading; 
4) commodity exchanges; 5) single source. 
3. Both the Law and the Rules contain the requireme nt of local content in procurements of the 
Holding. 
4. The Rules provide for conditional discounts (c umulative up to 20 per cent) to domestic 
producers and exemption of domestic producers from payment of guarantees (tenders, discharge of 
contracts, return of an advance).  In case bid prices of domestic and imported goods are equal, the 
domestic producer shall be recognized as the winner. 
Reference: 
Conditional discount is a notiona l reduction of the price proposed by domestic producer for the 
purposes of the bidding process. In the process of evaluation and comparison of tender participants' 
offers, the Holding applies the discounts to the price proposed by domestic producer. 
5. In 2011, the Holding procured goods for the total amount of 9 billion US$, of which 
approximately 4 billion US$ was spent for purch ases of raw materials, including crude oil and 
uranium.  
The list of main procured goods includes: 
- Crude oil and natural gas; 
- Uranium; - Transportation equipment; 
- Carbonite and products of oil refinery; 
- Electric energy, steam and hot water; - Pipes, fittings, rolled metal products; 
- Chemicals; 
- Machinery and equipment; - Metal products;  JOB/ACC/31/Add.1 
 Page 15 
 
 
  - Computers and electronic and optical goods; 
- Rubber and plastic goods; - Automobiles, trailers and semitrailers; 
- Electric equipment; 
- Mineral and nonmetallic goods;  - Paper and paper products, etc. 
6. Share of locally produced goods in the tota l volume of  procurement of goods comprised 
27 per cent or 2.4 billion US$. 
7. The volume and percentage share of each item,  purchased in 2010 and 2011 by the Holding is 
provided in Table 1.   
  JOB/ACC/31/Add.1 
Page 16 Table 1 - Structure of Procurements of Goods  by the National Welfare Fund "Samruk-Kazyna"  
In million KZT  
No. Commodity group 2010 2011 
Total volume of 
procurements Including 
Kazakhstani goods % Total volume of 
procurements Including 
Kazakhstani goods % 
1 2 3 4 5 6 7 8 
1. Crude oil and natural gas 320,140 35,980 11 467,329 134,358 29 
2. Transportation equipment 31,676 2,360 7 156,415 4,293 3 
3. Uranium 95,182 43,569 46 79,723 79,723 100 
4. Carbonite and products of oil refinery 124,283 87,243 70 78,046 62,428 80 
5. Electric energy, gas, steam and hot 
water 24,059 17,636 73 97,711 92,163 94 
6. Pipes, fittings, rolled metal products 38,877 7,550 19 41,863 9,717 23 
7. Chemicals 27,308 11,399 42 35,322 18,021 51 
8. Machinery and equipment 31,021 12,905 42 38,169 12,981 34 
9. Metal products 14,542 2,588 18 24,111 2,396 10 
10. Computers and electronic and optical 
goods 13,716 583 4 20,892 4,973 24 
11. Rubber and plastic goods 6,701 1,183 18 13,708 2,628 19 
12. Automobiles, trailers and semitrailers 8,179 1,623 20 13,971 4,959 35 
13. Electric equipment 11,129 3,970 36 14,618 4,598 31 
14. Mineral and nonmetallic goods 6,755 4,519 67 10,702 7,440 70 
15 Mining production 2,525 2,093 83 5,869 5,036 86 
16. Clothing 2,115 1,125 53 3,551 2,095 59 
17. Paper and paper production 1,104 189 17 2,030 842 41 
  JOB/ACC/31/Add.1 
 Page 17 
 
 
  ANNEX 2 
Brief on Local Content in Subsurface Use Contracts 
Background 
1. Today, with oil and gas taking more than 70 per cent share of Kazakhstan's exports and only 
10 per cent of the total FDI inflows invested into  development of non-extracting processing industries, 
diversification of the national economy is the major challenge for Kazakhstan's Government.  In order 
to channel the investments attracted into the oil and gas sector into the development of industries 
producing value-added goods  and servicing oil and gas companies, Kazakhstan applies local content 
requirements in the form of mandatory purcha se of locally produced goods and services.  
In particular, local content conditions are c ontained in the contracts on subsoil use.  
2. With regard to the local content requirement s to procure domestically produced goods in the 
contracts on subsoil use, Kazakhstan asks for a tran sitional period until the end of the terms of these 
contracts.  It should be noted that these contracts contain a number of preferences for investors such 
as import duty and VAT exemptions for imported equipment and other goods.  The local content 
requirements were used for balancing those preferen ces.  Thus, requested transition period up to the 
expiry of the terms of signed contracts will allo w Kazakhstan to adapt national processing industry to 
the competitive environment within WTO member ship as well as to address challenges related to 
unemployment and sustainable economic growth. 
National legislation 
3. Requirement for local content in goods and servi ces purchased in the sphere of subsurface use 
is regulated by Law of the Republic of Kazakhs tan No. 291-IV "On Subsurface and its Use" of 
24 June 2010 (hereinafter - the La w "On Subsurface and its Use").  
4. Local (Kazakhstan) content in goods is defi ned as percentage value of used domestic 
materials and inputs in the value of finished goods produced in the territory of Kazakhstan.  
Kazakhstani content in goods is de fined by subsurface user on the basis of Certificate CT-KZ issued 
for domestically produced goods.  In the case of absen ce of this certificate, the Kazakhstani content in 
goods equals to zero.  
5. The Law "On Subsurface and its Use" establishes a requirement for subsurface users and their 
contractors to use in subsurface operations dom estically produces goods and services provided that 
they met the requirements of project documentation and legislation of the Re public of Kazakhstan on 
technical regulation.  
6. In accordance with Article 77 of the Law "O n Subsurface and its Use", the purchase of goods 
and services for conducting subsurface operations could be carried out by one of the following 
methods: 
1) open tender; 
2) from a single source; 3) price offers request; 
4) through the electronic procurement system; 
5) through commodity exchanges. 
7. A subsoil user in the process of determini ng the winner of competitive bid shall grant a 
putative 20 per cent reduction in the price of a ny bid submitted by local producers of goods.  
Procedure on purchase of goods and services is also gove rned by Resolution of the Government of the JOB/ACC/31/Add.1 
Page 18  
 
  Republic of Kazakhstan No. 1139 "O n Approval of Rules for Purchase of Goods, Works and services 
in Performance of the Subsurface Use Operations" of 28 November 2007.  
8. Calculation of local content in goods and ser vices is made pursuant to Unified Methodology 
for Calculating the Kazakhstani Content by Orga nizations, Purchasing Goods and Services, approved 
by Resolution of the Government of the Repub lic of Kazakhstan No. 964 of 20 September 2010. 
Subsurface use contracts 
9. Subsurface use contracts contain commitments re quiring subsurface users to use domestically 
produced goods and services. 
10. Currently, there are 559 contracts on subsurface use, in particular, 204 contracts on crude 
hydrocarbons and 355 contracts in the mining sector. 
- Of 204 contracts on crude hydrocarbons, 192 (94. 1 per cent) contracts contain numerical local 
content commitments (in percentage) and 12 contracts contain textual local content 
commitments.  
- Of 355 contracts on mining 342 (96.3 per cent) contracts contain numerical commitments 
(in percentage) and 13 (3.6 per cent) contract s contain textual local content commitments.  
11. The typical textual commitments on local conten t in subsoil use contracts looks as following: 
"To use equipment, materials and goods produ ced in the Republic of Kazakhstan provided 
that they meet the requirements of the project documentation and legislation of the Republic of 
Kazakhstan". 
12. The typical numerical commitment text on local content looks as follows:   
In the Section "General Rights and Obligation of the Parties": 
"Size of the local content under the contract each fi scal year shall not be less than (...) per cent 
with respect to goods, not less than (...) percent w ith respect to works and not less than (...) per cent 
with respect to services in conducting operations on subsoil". 
Of 204 contracts on crude hydrocarbons use:  
- 142 contracts will expire by 2020  
- 62 contracts will expire in the period from 2021 to 2042. 
Of 355 contracts on mining:  
- 99 contracts will expire by 2020  
- 256 contracts will expire in the period from 2021 to 2037. 
Purchase of goods by subsurface users 
13. In 2011, the total procurement of goods made by sub-surface users was equal to 
511,050 million tenge, including goods of Kazakhstani origin in th e amount of 49,785 million tenge 
and foreign goods worth 461,27 million tenge.  Th e share of Kazakhstani goods comprised 
9.7 per cent.  JOB/ACC/31/Add.1 
 Page 19 
 
 
  Table 1 - Total Volume of Goods Proc urement of Subsurface Users in 2011 
14. Analysis of purchase shows, that there are 8 major commodity groups procured by subsoil 
users from domestic producers: 
1) Pipes; 
2) Fuel and lubricants (petrol, diesel); 
3) Pumps;  
4) chemical products; 
5) drilling equipment; 
6) wellheads, valves, throttles; 
7) transformers; 
8) cables. Oil and Gas sector 
Total amount of procured goods 271,709.0 
Local content (million tenge) 23,374.9 
Of foreign origin (million tenge) 248,334.1 
Share of local content (%) 8.6 
Mining Sector 
Total amount of procurement 234,339.7 
Local content (million tenge) 25,913.9 
Of foreign origin (million tenge) 208,425.8 
Share of local content (%) 11.1  
  JOB/ACC/31/Add.1 
Page 20 Table 2 - Structure of Procurements of Goods by Subsurface Users  
 
No. Commodity groups Total value of goods procured 
in 2010 Total value of goods procured 
in 2011 
Total value of 
purchased goods 
(million KZT) Including 
Kazakhstani goods 
(million KZT) Share of 
Kazakhstani goods 
(%) Total value of 
purchased goods 
(million KZT) Including 
Kazakhstani goods 
(million KZT) Share of 
Kazakshtani goods 
(%) Share of 
imports (%) 
1 2 3 4 5 6 7 8 9 
1. Pipe production 25,141.9 2,645.8 10.5 58,213.3 18,852.2 32.4 67.6 
2. Pump products 6,770.9 1,791.0 26.5 31,400.0 14,288.5 45.5 54.5 
3. Chemical reagents 8,068.8 389.0 4.8 24,383.7 6,588.5 27.0 73.0 
4. Drilling equipment  10,425.2 0.0 0.0 23,300.0 1,993.7 8.6 91.4 
5 Construction 
materials 5,318.6 479.6 9.0 23,141.3 1,700.0 7.3 92.7 
6. Electric equipment 5,429.8 10.4 0.2 21,800.0 0.0 0.0 100.0 
7. Fuels and lubricants 14,399.8 7,676.8 53.3 17,294.4 8,867.7 51.3 48.7 
8. Fountain fittings, 
valves, taps 11,769.8 171.0 1.5 17,004.6 3,529.3 20.8 79.2 
9. Generators, 
compressors, 
electric motors 6,560.2 479.3 7.3 13,556.1 759.5 5.6 94.4 
10. Cables 745.3 21.3 2.9 8,209.6 435.4 5.3 94.7 
11. Tank equipment 
and furnace oil 
heating 2,489.6 33.6 1.3 7,072.7 1,600.0 22.6 77.4 
12. Containers of paper 
and paperboard 5,233.4 0.0 0.0 5,937.7 1,900.0 32.0 68.0 
13. Food products 3,245.5 1,250.2 38.5 4,510.2 1,500.0 33.3 66.7 
14. Personal protection 
equipment 1,892.9 26.3 1.4 4,118.8 1,500.0 36.4 63.6 
15. Cars 1,725.0 23.0 1.3 1,691.0 560.0 33.1 66.9 
16. Drill bits 375.0 0.0 0.0 1,500.0 0.0 0.0 100.0 
17 Furniture 1,523.0 756.0 49.6 1,499.9 500.0 33.3 66.7 
18. Tire 1,253.0 253.0 20.2 1,208.0 400.0 33.1 66.9  
   JOB/ACC/31/Add.1
 Page 21No. Commodity groups Total value of goods procured 
in 2010 Total value of goods procured 
in 2011 
Total value of 
purchased goods 
(million KZT) Including 
Kazakhstani goods 
(million KZT) Share of 
Kazakhstani goods 
(%) Total value of 
purchased goods 
(million KZT) Including 
Kazakhstani goods 
(million KZT) Share of 
Kazakshtani goods 
(%) Share of 
imports (%) 
1 2 3 4 5 6 7 8 9 
19. Frequency 
converters 945.0 0.0 0.0 1,007.0 0.0 0.0 100.0 
20. Office appliances 898.5 0.0 0.0 873.2 300.0 34.4 65.6 
21. Manometer 648.0 0.0 0.0 742.0 0.0 0.0 100.0 
22. Wellhead 
centralizer 72.6 0.0 0.0 470.0 0.0 0.0 100.0 
23. Accumulator 372.0 28.0 7.5 366.4 100.0 27.3 72.7 
24. Automatic switches 98.0 0,0 0,0 100,0 0,0 0,0 100.0 
25. Other commodities 238,627.1 9,847.4 4.1 82,237.6 6,983.0 8.5 91.5 
 
 
  
  JOB/ACC/31/Add.1 
Page 22 ANNEX 3 
Information on Industrial Assembly Agreements 
No. Company name County 
participating in 
the project 
(shareholders, 
investors, 
partners) Produced products 
(name and HS code) Produced volumes 
(pieces and tenge) 
 Number of 
jobs Share of local 
content Term by 
which criteria 
established in 
the agreement 
are to be met 2010 2011 
1. "Azia Auto" JSC Russian 
Federation, Czech Republic, 
US, Korea 
(partners) Automobiles and other motor 
vehicles for transportation of passengers (excluding motor 
vehicles of HS position 8702), 
including cargo vans and racing cars, HS code of CU 8703 (Lada, Škoda, Chevrolet, KIA) 3,099 pieces, 
8 bln tenge (approximately 
52.5 mln 
US dollars)   7,326 pieces, 
20 bln tenge (approximately 
135 mln 
US dollars) 400 23-31% 2017  
2. "АgromashHodling" JSC Russian 
Federation, 
Korea, (partners) Automobiles and other motor 
vehicles for transportation of 
people (excluding motor vehicles of HS position 8702), including cargo vans and racing cars, HS code of CU 8703 (Ssang Young, ZAZ) 77 pieces, 
240 mln. tenge 
(approximately 1.6 mln US dollars)  869 pieces, 
2.6 bln. tenge 
(approximately 18 mln US dollars)  350 17-30% 2017  
3. "SaryarkaAutoProm" Ltd. Russian 
Federation, Italy (partners)  Automobiles and other motor 
vehicles for transportation of people (excluding motor vehicles of HS position 8702), including cargo vans and racing cars, HS code of CU 8703 (UAZ, Iveco) - - 126 - 2017 
4. "SAUR" Ltd. China (partners) Automobiles and other motor 
vehicles for transportation of people (excluding motor vehicles of HS position 8702), including cargo vans and racing cars, HS code of CU 8703   (Chery) - - - - 2017  JOB/ACC/31/Add.1 
 Page 23 
 
 
  ANNEX 4 
Tariff lines of the Unified Customs Tariff of the Cu stoms Union "For the Industrial Assembly of 
Motor Vehicles under Headings 8701-8705, thei r Components and Assemblies" (Examples) 
Tariff Code Product description Duty rate 
9401   Seats (other than those of heading 9402), whether or not 
convertible into beds, and parts thereof  
9401 20 000 - Seats used in motor vehicles  
9401 20 000 1 -- For industrial assembly of 
motor vehicles under headings 8701-8705, their components 
and assemblies 5 
9401 20 000 9 -- Other 15, but no less 
than 0.7 euro 
per 1 
kilogram  
9603   Brooms, brushes (including brushes constituting parts of 
machines, appliances or vehicles),  hand-operated mechanical floor 
sweepers, not motorised, mops and feather dusters; prepared knots 
and tufts for broom or brush making; paint pads and rollers; 
squeegees (other th an roller squeegees)  
9603 50 - Other brushes constituting parts of machines, appliances or 
vehicles  
9603 50 000 1 -- For industrial assembly of 
motor vehicles under headings 8701-8705, their components 
and assemblies 0 
9603 50 000 9 -- Other 15 
8412   Other engines and motors  
8412 21 - Hydraulic power engines and motors  
8412 21 800 --- Other  
8412 21 800 6 
 ----- For industrial assembly of motor vehicles under headings 8701-
8705, their components and assemblies 0 
8412 21 800 8 ----- Other 10 
8413   Pumps for liquids, whether or not fitted with a measuring device; 
liquid elevators  
8413 30 - Fuel, lubricating or cooling medium pumps for internal 
combustion piston engines  
8413 30 200 -- Injection pumps  
8413 30 200 1 --- For industrial assembly of 
motor vehicles under headings 8701-8705, their components 
and assemblies 0 
8413 30 200 9 --- Other 0 
8413 30 800 -- Other  
8413 30 800 1  --- For industrial assembly of 
motor vehicles under headings 8701-8705, their components 
and assemblies 0 
8413 30 800 9 --- Other 0 
8413 91 -- Of pumps  
8413 91 000 1 --- For industrial assembly of 
motor vehicles under headings 8701-8705, their components 
and assemblies 0 
8413 91 000 9 --- Other 0 JOB/ACC/31/Add.1 
Page 24  
 
  Tariff Code Product description Duty rate 
8414   Air or vacuum pumps, air or other gas compressors and fans; 
ventilating or recycling hoods incorporating a fan, whether or not 
fitted with filters  
8414 30 - Compressors of a kind used in refrigerating equipment  
8414 30 81 --- Hermetic or semi-hermetic  
8414 30 810 5 ---- For industrial assembly of 
motor vehicles under headings 8701-8705, their components 
and assemblies 5 
8414 30 810 6 ---- Other 5 
8415   Air-conditioning machines, comprising a motor-driven fan and 
elements for changing the temp erature and humidity, including 
those machines in which the humidity cannot be separately 
regulated  
8415 10 - Window or wall types, self-contained or 'split-system'  
8415 20 000 - Of a kind used for persons, in motor vehicles  
8415 20 000 1 -- For industrial assembly of 
motor vehicles under headings 8701-8705, their components 
and assemblies 0 
8415 20 000 9 -- Other 0 
8419   Machinery, plant or laboratory equipment, whether or not 
electrically heated (excluding  furnaces, ovens and other 
equipment of heading 8514), for the treatment of materials by a 
process involving a change of temperature such as heating, 
cooking, roasting, distilling, rectifying, sterilising, pasteurising, 
steaming, drying, evaporating, vaporising, condensing or cooling, 
other than machinery or plant of a kind used for domestic 
purposes; instantaneous or stor age water heaters, non-electric  
8419 39 -- Other  
8419 39 000 2 --- For industrial assembly of 
motor vehicles under headings 8701-8705, their components 
and assemblies 0 
8419 39 000 9 --- Other 0 
8707   Bodies (including cabs), for the motor vehicles of headings 
8701 to 8705  
8707 10 - For the vehicles of heading 8703  
8707 10 100 0 -- For industrial assembly  of: 
Pedestrian-controlled tractors of subheading 8701 10; 
  
Vehicles of heading 8703; 
  
Vehicles of heading 8704 with either a compression-ignition 
internal combustion piston engine (diesel or semi-diesel) of a 
cylinder capacity not exceeding 2 50 0 cm³ or with a spark-ignition 
internal combustion piston engine of a cylinder capacity not 
exceeding 2 800 cm³; 
  
Vehicles of heading 8705 0 
8708   Parts and accessories  of the motor vehicles  of headings 8701 to 
8705  
8708 10 - Bumpers and parts thereof   JOB/ACC/31/Add.1 
 Page 25 
 
 
  Tariff Code Product description Duty rate 
8708 10 100 0 -- For the industrial assembly of: 
  
Vehicles of heading 8703; 
  
Vehicles of heading 8704 with either a compression-ignition 
internal combustion piston engine (diesel or semi-diesel) of a 
cylinder capacity not exceeding 2 50 0 cm³ or with a spark-ignition 
internal combustion piston engine of a cylinder capacity not 
exceeding 2 800 cm³; 
  
Vehicles of heading 8705 0 
8708 10 900 9 --- Other 5 
8708 29 -- Other  
08 29 100 0  --- For the industrial assembly of: 
  
Pedestrian-controlled tractors of subheading 8701 10; 
  
Vehicles of heading 8703; 
  
Vehicles of heading 8704 with either a compression-ignition 
internal combustion piston engine (diesel or semi-diesel) of a 
cylinder capacity not exceeding 2 50 0 cm³ or with a spark-ignition 
internal combustion piston engine of a cylinder capacity not 
exceeding 2 800 cm³; 
  
Vehicles of heading 8705 0 
708 29 900 9 ---- Other 5 
8708 30 - Brakes and serv o-brakes; parts thereof  
8708 30 100 0 -- For the industrial assembly of: 
  
Pedestrian-controlled tractors of subheading 8701 10; 
  
Vehicles of heading 8703; 
  
Vehicles of heading 8704 with either a compression-ignition 
internal combustion piston engine (diesel or semi-diesel) of a 
cylinder capacity not exceeding 2 50 0 cm³ or with a spark-ignition 
internal combustion piston engine of a cylinder capacity not 
exceeding 2 800 cm³; 
  
Vehicles of heading 8705 0 
8 708 30 910 9 --- Other  5 
8708 40 - Gear boxes and parts thereof  JOB/ACC/31/Add.1 
Page 26  
 
  Tariff Code Product description Duty rate 
8708 40 200 -- For the industrial assembly of: 
  
Pedestrian-controlled tractors of subheading 8701 10; 
  
Vehicles of heading 8703; 
  
Vehicles of heading 8704 with either a compression-ignition 
internal combustion piston engine (diesel or semi-diesel) of a 
cylinder capacity not exceeding 2 50 0 cm³ or with a spark-ignition 
internal combustion piston engine of a cylinder capacity not 
exceeding 2 800 cm³; 
  
Vehicles of heading 8705 0 
8708 40 200 1 --- gear boxes 0 
 --- patrs 0 
8708 40 500 9 ---- Other  5 
8708 80 - Suspension systems and parts thereof (including shock-absorbers)  
8708 80 200 -- For the industrial assembly of: 
  
Vehicles of heading 8703; 
  
Vehicles of heading 8704 with either a compression-ignition 
internal combustion piston engine (diesel or semi-diesel) of a 
cylinder capacity not exceeding 2 50 0 cm³ or with a spark-ignition 
internal combustion piston engine of a cylinder capacity not 
exceeding 2 800 cm³; 
  
Vehicles of heading 8705  
8708 80 200 1 --- shock-absorbers of the suspension  0 
 --- others 0 
8708 92 -- Silencers (mufflers) and exhaust pipes; parts thereof  
8708 92 20 --- For the industrial assembly of: 
  
Pedestrian-controlled tractors of subheading 8701 10; 
  
Vehicles of heading 8703; 
  
Vehicles of heading 8704 with either a compression-ignition 
internal combustion piston engine (diesel or semi-diesel) of a 
cylinder capacity not exceeding 2 50 0 cm³ or with a spark-ignition 
internal combustion piston engine of a cylinder capacity not 
exceeding 2 800 cm³; 
  
Vehicles of heading 8705  
8708 92 200 1 ---- Silencers (mufflers) and exhaust pipes 0 
8708 92 200 9 ---- parts therof 0 
 --- Other  
8708 92 350 ---- Silencers (mufflers) and exhaust pipes;  
8708 92 350 1 ----- For industrial assembly of motor vehicles of headings 8701 -8705, 
except for motor vehicles mentioned in subheading 8708 92 200; 
for industrial assembly of components and assemblies of motor 
vehicles of headings 8701-8705  0 
8708 92 350 9 ----- Other 5  JOB/ACC/31/Add.1 
 Page 27 
 
 
  Tariff Code Product description Duty rate 
8708 94 -- Steering wheels, steerin g columns and steering boxes; parts 
thereof  
8708 94 200 --- For the industrial assembly of: 
  
Vehicles of heading 8703; 
  
Vehicles of heading 8704 with either a compression-ignition 
internal combustion piston engine (diesel or semi-diesel) of a 
cylinder capacity not exceeding 2 50 0 cm³ or with a spark-ignition 
internal combustion piston engine of a cylinder capacity not 
exceeding 2 800 cm³; 
  
Vehicles of heading 8705  
8708 94 200 1 ---- Steering wheels, steering columns and steering boxes 0 
8708 94 200 2 ---- Parts therof 0 
 --- Other  
8708 94 350 ---- Steering wheels, steering columns and steering boxes  
8708 94 350 1 ----- For industrial assembly of motor vehicles of headings 8701 -8705, 
except for motor vehicles mentioned in subheading 8708 92 200; 
for industrial assembly of components and assemblies of motor 
vehicles of headings 8701-8705 0 
8708 94 350 9 ----- Other 5 
 
 
__________