RESTRICTED  
  
JOB/ACC/40/Rev.3  
 
13 November 2014  
(14-6645)  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 
Revision1 
 
- Ordinary Custom Duties 
2892. 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 confirmed that, as a result of 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 
as set out in its  protocol of accession  [CU CET]
3 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;  
(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 ; and,   
(d) [For those goods for which the curren t bound tariff rate of the Russian 
Federation as set out in its protocol of accession was lower than the initial 
                                               
1 This revision updates the earlier proposal by th e Chairman of Working Party contained in document 
JOB/ACC/40, and takes account of the plurilateral meeting held with the Acceding Government of Kazakhstan, 
the Russian Federation and Signatory Members on 11 No vember 2014.  At the meeting, some Members noted 
that their capitals were still reviewing the draft text circulated as CRP-10, dated 7 November 2014.  As a consequence, they reserved thei r right to revert with their comments, if necessary.     
2 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.13, issued on 2 November 201 4, this paragraph number is 306 in the "Ordinary 
Customs Duties" Section. 
3 One Member is considering the language. JOB/ACC/40/Rev.3 
 
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  [and][or][and/or] current bound tariff ag reed in Kazakhstan's bilateral tariff 
negotiations, Kazakhstan would bind it s relevant initial [and][or][and/or] 
current bound tariff rate at the lower current bound tariff rate of the Russian 
Federation.] 
 The results of the bilateral market access  negotiations and the commitments undertaken in 
subparagraphs (a) through (c) [(d)]  are contained in the Schedule of Concessions and 
Commitments on Goods and form Annex 1 to the Pr otocol 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 maintenance of exce ptions 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 [bound in the modified schedule of Kazakhstan and been 
implemented by the EAEU] [implemented in the modified schedules of all CU members that are 
WTO Members].  [She further confirmed that all goods , including those  referred to in 
subparagraph (a) of paragraph 289, entering the CU territory for import in Kazakhstan would 
benefit from the rules on transit as they are set out in the WTO Agreement, including 
Article V of the GATT 1994.]   The Working Party took note of these commitments. 
 
[289quater ]  
 
[The representative of Kazakhstan further 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  as 
set out in its protocol of accession  [CU CET]
4 and, therefore, commence negotiations with 
those WTO Members that had concluded bilateral goods market access protocols with Kazakhstan 
and would be affected by such alignment, i.e. th ose 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, six months before the start of the negotiations  Kazakhstan 
would notify WTO  Members  of its intention to commence them and would provide to 
Signatory Members that had concluded bila teral goods market access protocols with 
Kazakhstan 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 tariff rate 
information and statistics of imports of the products involved, by country of origin, for the last 
three years for which statistics are availabl e.  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 
                                               
4 One Member is considering the language. JOB/ACC/40/Rev.3 
 
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  purpose of this negotiation, affected 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 US$ 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 corresponding tariff line numbers and statistics 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]
5. 
 
 
[289quinques ] The negotiations referred to in [paragraph 289 quater ] would include the tariff rate 
increases on goods subject to subparagraph (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 negotiatio n, 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 may include 
formula approaches and requests on specific priority tariff lines.  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 basi s of the final bound tariff rates of the Russian 
Federation, and the value of duties payable for the same trade, calculated on the basis of the final 
bound tariff rates of Kazakhstan.  In these negotiations any SPS measures or special 
circumstances existing in the CU that have affected trade during the reference period 
will be taken into account.   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 that, as the alignment of the Schedule 
results from membership in a customs union, she expected that  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 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 in line with WTO obligations 
applicable to customs unions.  [The Working Party took note of these commitments.] 
 
[289octies ] The representative of Kazakhstan confirmed that,  under the EAEU regime described 
in paragraphs [ 251 and 252] of this Report and in paragraphs 185 and 186 of the Working party 
Report on the Accession of the Russian Federati on to the WTO, the WTO commitments undertaken 
by a EAEU member are part of the EAEU legal framework.  The representative of the 
                                               
5 The proposal by Australia, Brazi l, Guatemala, Japan, Mexico and Switzerland (JOB/ACC/40/Add.2)  JOB/ACC/40/Rev.3 
 
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  Russian Federation supported the statements  of the representative of Kazakhstan 
reflected under paragraphs 289 septies  and 289 octies . 
 
[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 [bound in the modified schedule of Kazakhstan 
and  implemented by the EAEU]  [implemented in the modified  Schedules of all CU members 
that are WTO Members].  [Place holder: relation between this chapter and Art. XXIV GATT 
1994 to be discussed further] .  The Working Party took note of these commitments. 
 
 
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