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JOB/ACC/40/Rev.2  
 
22 September 2014  
(14-5295) Page: 1/4  
Working Party on the Accession of Kazakhstan  Original: English  
 
 ACCESSION OF KAZAKHSTAN 
COMMUNICATION FROM THE CHAI RMAN OF THE WORKING PARTY 
PROPOSAL ON ORDINARY CUSTOMS DUTIES 
Revision 
This revision is an update to JOB/ACC/40/Rev.1.  It is being circulated, at the request of the 
Delegation of Kazakhstan,  as an additional input to the Chairman's Proposal on Ordinary Customs 
Duties", resulting from small group consultations organized by the Delegation of Kazakhstan with 
interested Signatory Members and the Russian Federation, on Friday, 19 September 2014.   
  
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 JOB/ACC/40/Rev.2 
 
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- Ordinary Custom Duties 
2891. Kazakhstan undertook bilateral market access negotiations on goods with Members of the 
Working Party. The results of those negotiations were reflected in a draft consolidated Schedule of 
Concessions and Commitments on Goods circulated by the WTO Secretariat on 26 September 2012 
as document WT/ACC/SPEC/KAZ/10/Rev.3.  Following Kazakhstan's membership to the CU, some 
Members noted that the tariff rates applied by Kazakhstan under the CU CET differed from the 
results agreed to in the bilateral goods market access negotiations. Since Kazakhstan had limited exceptions from the CU CET, these Members expre ssed concern that Kazakhstan would not be in a 
position to implement the tariff rates agreed to in the bilateral market access negotiations.  
 In response,  the representative of Kazakhstan [ explained ] [confirmed] that, as a result of 
[further] negotiations with those WTO Members with whom it had concluded bilateral goods 
market access protocols , upon accession: 
 
(a) for those goods for which the final bound tariff rate agreed in bilateral negotiations 
with WTO Members was lower than the [ final bound tariff rate of the Russian 
Federation ] [CU CET]
2 Kazakhstan would bind its final bound tariff rate at the lower 
rate; 
(b) for those goods for which the final bound tariff rate of the Russian Federation as set 
out in its protocol of accession was lower than the final bound tariff rate agreed in Kazakhstan's bilateral tariff negotiations, Kazakhstan would bind its relevant final 
bound tariff rate at the lower final bound tariff rate of the Russian Federation; and 
(c) for goods identified under subparagraph b), Kazakhstan would adjust its bindings to 
reflect the staging of reductions that result from the protocol of accession of the 
Russian Federation. 
 The results of the bilateral market access  negotiations and the commitments undertaken in 
subparagraphs (a) through (c) are contained in the Schedule of Concessions and Commitments on 
Goods and form Annex 1 to the Protocol of Accession (hereafter "the Accession Schedule").  
[289bis] Noting the fact that the tariffs that Kazakhstan applied under the CU CET were, in some 
cases, higher than those contained in the Accession Schedule, Members inquired how Kazakhstan 
would ensure the respect of its obligations stemming from its membership of both the WTO and 
the CU.  
[289ter] The representative of Kazakhstan confirmed that Kazakhstan would fully implement upon 
accession the commitments contained in the Accession Schedule in particular through the 
relevant CU instruments, including the  [introduction or ] maintenance of [ any necessary ] 
exceptions  from the CU CET with respect to tariff lines for which the Customs Union tariff rates 
are inconsistent with the Accession Schedule until such time as the adjusted tariff rates negotiated and agreed to pursuant to [paragraphs quater  to septies ] have been implemented .[in the 
modified schedules of all CU members that are WTO Members]. [She further confirmed that 
goods referred to in subparagraph (a) of pa ragraph 289 entering the CU territory for 
import in Kazakhstan would benefit from [eit her the rules applicable to transit within 
the CU territory of goods originating in the CU  or] the rules on transit set out in Article V 
of the GATT 1994 [whichever is more favourable.]  The Working Party took note of these 
commitments. 
 
                                               
1 This paragraph refers to the number in the Draft Working Party Report contained in 
WT/ACC/SPEC/KAZ/9/Rev.10.  In the latest version of the Draft Report contained in document 
WT/ACC/SPEC/KAZ/9/Rev.12, issued on 8 September 2014, this paragraph number is 303 in the "Ordinary 
Customs Duties" Section. 
2 One Member is considering the language. JOB/ACC/40/Rev.2 
 
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  [289quater ]  
 
[The representative of Kazakhstan further [informed] [ confirmed]  that no earlier than three 
years and six months  from the date of full implementation of  all the final bound tariff rates 
contained in the Accession Schedule for goods covered by sub-paragraph (a) of paragraph 
289, Kazakhstan would seek to align the Accession Schedule with the final bound tariff rate of 
the Russian Federation  [CU CET]3 and, therefore, commence negotiations with those 
WTO Members that had concluded bilateral goods market access protocols  with Kazakhstan and 
would be [ negatively ] affected by such alignment [ by increases of tariff rates ] [, i.e. those 
holding INRs or those having a principal or substantial  supplying interest by the date on which 
the negotiations start] (hereafter "affected Members"). For that purpose Kazakhstan would notify [the WTO Secretariat of ] its intention to commence the negotiations and all data relevant for the 
conduct of those negotiations [which includes the list of items subject to modification with 
the corresponding tariff line numbers and statis tics of imports of the products involved, 
by country of origin, for the last three years for which statistics are available] 
[six months before the start of the negotiations ]. The Working Party took note of these 
commitments ]. 
 
[The representative of Kazakhstan further [informed] [ confirmed]  that no earlier than three 
years and six months  from the date of full implementation of  all the final bound tariff rates 
contained in the Accession Schedule for goods covered by sub-paragraph (a) of paragraph 
289, Kazakhstan would seek to align the Accession Schedule with the final bound tariff rate of 
the Russian Federation  and, therefore, commence negotiations with those WTO Members that 
had concluded bilateral goods market access protocols  with Kazakhstan or are "affected 
Members". For the purpose of this negotiation, a ffected Members are those who fall into 
any one of the following criteria:   
a) Hold Initial Negotiating Rights (INRs);   
b) Have a principal supplying interest (PSI);  
c) Have substantial interest (SI); and   
d) In the period of 2008-2013, had an  average bilateral trade flow with 
Kazakhstan of at least USD 50,000.00 (fifty thousand dollars) per tariff line, per 
year. 
 
For that purpose Kazakhstan would notify the WTO Members of its intention to commence the 
negotiations and all data relevant for the conduct of those negotiations [which includes the list 
of items subject to modification with the co rresponding tariff line numbers and statistics 
of imports of the products involved, by coun try of origin, for the last three years for 
which statistics are available] six months before the start of the negotiations . The Working 
Party took note of these commitments ]
4. 
 
 
[289quinques ] The negotiations referred to in [paragraph 289 quater ] would [include the tariff 
rate increases on goods subject to subparagr aph (a) of paragraph 289. The negotiations 
referred to in [paragraph 289 quater ] would]  not include tariff rate increases on goods 
subject to subparagraph (b) of paragraph 289. For goods subject to negotiation, the 
representative of Kazakhstan confirmed that no tariff lines subject to increase of the bound import tariff rates of Kazakhstan would be a priori excluded from the scope of these negotiations. 
The Working Party took note of these commitments. 
 [289sexies ] The negotiations referred to in [paragraph 289 quater ] would be entered into in good 
faith with a view to achieving within [ 3] years from commencement of such negotiations  
mutually satisfactory compensatory adjustment. [The negotiations of compensatory adjustment 
                                               
3 One Member is considering the language. 
4 The proposal by Australia, Brazi l, Guatemala, Japan, Mexico and Switzerland (JOB/ACC/40/Add.2)  JOB/ACC/40/Rev.2 
 
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  may include formula approaches and reques ts on specific priority tariff lines.]5 [The value of 
compensatory adjustment  with respect to each affected Member should be calculated as the 
difference between the value of duties payable for the average yearly MFN imports to Kazakhstan 
from that affected Member that occurred during the reference period of three years of trade data 
available at the start of the negotiations, calculated on the basis of the final bound tariff rates of the Russian Federation, and the value of duties paya ble for the same trade, calculated on the basis 
of the final bound tariff rates of Kazakhstan.]
5  In the event that satisfactory compensatory 
adjustment is not achieved within the timeframe for the negotiations, the matter should be referred to the WTO General Council. The Working Party took note of these commitments. 
 
[289septies ] The representative of Kazakhstan [confirmed] [ explained]  that, as the alignment of 
the Schedule results from membership in a customs union, all members of the CU which are WTO 
Members should enter into those negotiations and participate in the [compensatory] tariff  
adjustment  negotiations . [She further [confirmed] recalled  that the representative of the 
Russian Federation had stated on several occasions that the Russian Federation, which is also a 
member of the CU, would have to participate in such compensatory adjustment. The 
representative of the Russian Federation agreed  with the statement of the representative of 
Kazakhstan.] [The Working Party took note of these commitments.] 
 [289octies ] [The representative of Kazakhstan confirmed that, from the date of its accession to the 
WTO, Kazakhstan will ensure the conformity of its laws, regulations and administrative procedures, 
whether adopted by the authority of Kazakhstan or the competent body of the EEU and applied 
within the territory of Kazakhstan, with the obligations of Kazakhstan as provided in the 
WTO Agreements, including the accession protocols. [Furthermore, the representative s of 
Kazakhstan [ and of the Russian Federation ] confirmed that [ the legal obligations relating to 
the implementation of WTO commitments under the EAEU regimes described in 
paragraphs [245 and 246] of this Report an d in paragraphs 185 and 186 of the Working 
party Report on the Accession of the Russian Federation to the WTO,  the WTO 
commitments undertaken by a CU member] are and will continue to be part of the EAEU CU legal 
order and automatically applicable to other EAEU CU members.] The Working Party took note of 
these commitments.] 
 
[289novies ] To reflect the results of these negotiatio ns, the CU CET and the Accession Schedule 
will be modified. For goods subject to negotiation according to [paragraph 289 quinques ] 
Kazakhstan confirmed that it would not have recourse to Articles XXIV:6 or XXVIII of the GATT 1994 and will continue to apply the commitmen ts contained in the Accession Schedule from 
the date of its accession until such time as adjusted tariff rates are negotiated and agreed by 
consensus with the affected  Members and implemented [in the modified Schedules of all 
CU members that are WTO Members]. Until such time the CU Members would be allowed to 
adopt and implement measures with the view to prevent circumvention of the CU CET in 
such cases where bound rates of Kazakhstan were lower than the final bound rates of 
the Russian Federation . The Working Party took note of these commitments. 
 
 
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5 These two bracketed sentences are viewed as potential complements to each other, rather than as 
alternatives.