G/VAL/N/2/KAZ/1  
 
7 October  2016 
(16-5370) Page: 1/6 
Committee on Customs Valuation  Original: English  
 
 NOTIFICATION UNDER A RTICLE 22 OF THE AGR EEMENT ON  
IMPLEMENTATION OF AR TICLE VII OF THE  
GENERAL AGREEMENT ON  TARIFFS AND TRADE 19 94 
CHECK -LIST OF ISSUES  
KAZAKHSTAN  
The following communication, dated 27 April  2016, is being circulated at the request of th e 
delegation of the Kazakhstan.  
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Attached is the response of Kazakhstan to the check -list of issues on the implementation and 
administration of the WTO Agreement on Implementation of Article VII of the General Agreement 
on Tariffs and Trade  1994.  
1.  Questions concerning Article 1 : 
(a)  Sales between related persons:   
(i) are sales between related persons subject to special provisions?  
Articles 4.1.4 and 4.3 - 4.6 of  Customs Union Agreement on the Determination of the 
Customs Valuation of Go ods, Transferred through the Customs Border of the Customs Union 
(hereinafter:  "CU Agreement on Customs Valuation") contain provisions for determining the 
transaction value in sales between related persons as set out in Article 1 and the 
Interpretative No te to Article 1 of the Agreement on Implementation of Article VII of the 
General Agreement on Tariffs and Trade 1994  (hereinafter:  "WTO Agreement").  
(ii) Is the fact of intercompany prices prima facie considered as grounds for 
regarding the respective pri ces as being influenced?  
The fact that the buyer and the seller are related is not prima facie  considered as grounds 
for regarding the respective prices as being influenced.  
In accordance with Articles 4.3-4.6 of the CU Agreement on Customs Valuation in or der to 
determine whether the price has been influenced by the relationship between the buyer and 
the seller, any of the mechanism set out in Article 1 of the WTO Agreement can be applied.  
(iii)  What is the provision for giving the communication of the afo rementioned 
grounds in writing if the importer so requests? (Article 1.2(a))  
In accordance with Article 4.4 of the CU Agreement on Customs Valuation in case the buyer 
and the seller are related and on the basis of information  presented by the declarant 
(or customs representative) or obtained by the customs bodies by other means, the customs 
bodies reveal the indications that the relationship between the seller and the buyer has 
influenced the price paid or payable, the customs bodies shall inform the declar ant (customs 
representative) in writing about such indications.  G/VAL/N/2/KAZ/1  
 
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  (iv)  How has Article 1.2 (b) been implemented?  
Article 4.4  of the CU Agreement on Customs Valuation provides the importer related to the 
seller with the opportunity  to demonstrate that the tr ansaction value approximates with one 
of the test values stipulated in Article 1.2(b) of the WTO Agreement and thus can be 
accepted by the customs body.  
If the customs body already has the information sufficient to make the conclusion that the 
transaction value approximates the one of the test values, it shall not request the declarant 
any additional information proving this fact.  
In accordance with Article 4.5 of the CU Agreement on Customs Valuation in applying the 
foregoing tests the data on differences in commercial levels, quantity levels in elements 
enumerated in Article 8 of the WTO Agreement and costs incurred by the seller in sales in 
which the seller and the buyer are not related that are not incurred by the seller in sales in 
which the seller and the buyer are related.  
The test values are used upon the request of the declarant and cannot be used for the 
determination of the customs value.  
(b)  Price of lost or damaged goods:  
Are there any special provisions or practical arrangements concerning the 
valuation of lost or damaged goods?  
Decision of the Collegium of the Eurasian Economic Commission No. 145 "On Approval of the 
Regulation on Peculiarities of Application of Customs Valuation Methods for Goods, Imported 
into the Common Customs Border of the Customs Union, in Case of their Damage as the 
Result of the Accident or Force Major " of 25 June 2013 establishes special provisions 
concerning the valuation of lost or damaged goods.  
2. How has the provision of Article 4 to allow the importer an option to  reverse the 
order of application of Article 5 and 6 been implemented?  
The aforementioned reverse order of application of Articles 5 and 6 is implemented in 
Article  2.1 and  8.1 of the CU Agreement on Customs Valuation.  
3. How has Article 5.2 been implement ed? 
The provisions of Article 5.2 are implemented in Article 8.4 of the CU Agreement on Customs 
Valuation.  
4. How has Article 6.2 been implemented?  
The provisions of Article 6.2 are implemented in Article 9.6 of the CU Agreement on Customs 
Valuation. In ac cordance with the provisions of Article 9.6 of the CU Agreement, the 
information supplied by the producer of the goods for the purposes of determining the 
computed value can be verified in the country of production by the authorities of the 
Eurasian Econom ic Union (hereinafter: "EAEU ") with the agreement of the producer and 
provided they give sufficient advance notice to the respective authority of the country of 
production and the letter does not object to the investigation.  
5. Questions concerning Article  7: 
(a) What provisions have been made for making value determinations pursuant to 
Article  7? 
In accordance with Article 10.1 of the CU Agreement on Customs Valuation if the customs 
value of the goods cannot be determined using one of the valuation methods  provided for in 
Articles 1 to 7 of  the CU Agreement on Customs Valuation, the customs value is determined G/VAL/N/2/KAZ/1  
 
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  on the basis of data available on the customs territory of the EAEU using reasonable means 
consistent with legal principles and provisions of the CU Agreement on Customs Valuation.  
(b) What is the provision for informing the importer of the customs value determined 
under Article 7?  
If the customs value is determined under Article 7 of the WTO Agreement, the customs body 
shall indicate in written form t he source of the data used and provide the detailed 
calculations made on this basis in accordance with Article 10 of the CU Agreement on 
Customs Valuation.  
(c)  Are the prohibitions founded in Article 7.2 delineated?  
The prohibitions contained in Article 7.2 are mandatory for customs bodies, as set out in 
Article 10.4 of the CU Agreement on Customs Valuation.  
6. How have the options found in Article 8.2 been handled?   In the case of f.o.b. 
application, are ex -factory prices also accepted?  
The provisions of Article 8.2 are implemented in Articles 5.1.4, 5.1.5 and 5.1.6 of the 
CU Agreement on Customs Valuation respectively.   In accordance with the above mentioned 
provisions in determining the customs value of the imported goods under the provisions of 
Article 1 of the CU Agreement, the following costs shall be added to the price actually paid 
or payable:  the cost of transport of the imported goods to the airport, sea port or other 
place of importation of the goods to the customs territory of the EAEU; costs of  loading, 
unloading or reloading or other handling charges associated with the transport of the 
imported goods to the airport, sea port or other place of importation of the goods to the 
customs territory of the EAEU; the cost of insurance.  
7. Where is the rate of exchange published, as required by Article 9.1?  
Where the exchange of currency is necessary for determination of the customs value, the 
official exchange rate effective on the day of registration of the customs declaration by the 
customs body shall  be used, unless otherwise provided by the Customs Code and/or 
international treaties of the EAEU member  States.  Pursuant to Article  78 of the CU  Customs 
Code for the calculation of customs duties and taxes and the determination of customs 
value, the cust oms body of the relevant EAEU Member  State is required to use the exchange 
rate established in accordance with the national legislation of this EAEU Member  State.  
According to Article 56 of Law No. 2155 "On the National Bank of the Republic of 
Kazakhstan"  of 30  March  1995, the National Bank of Kazakhstan establishes and publishes 
the official exchange rate of foreign currencies with respect to the tenge.  This  information 
can be accessed on the website of the National Bank of Kazakhstan 
(http:// www.nationalbank.kz ).   
8. What steps have been taken to ensure confidentiality, as required by Article 10?  
Pursuant to Article 16 of the Customs Code of Kazakhstan, information received by the 
customs body in accordance wi th EAEU legal acts and the national legislation of Kazakhstan 
is used by customs officials exclusively for customs purposes, and cannot be disclosed or 
disseminated, even to state bodies, except when the transfer of such information to other 
state authorit ies is necessary for law enforcement and for judicial proceedings in accordance 
with the legislation of Kazakhstan.  
9. Questions concerning Article 11:  
(a) What rights of appeal are open to the importer or any other person?  
Concerning the right of appeal,  Article 9 of the CU Customs Code and Article  17 of the 
Customs Code of Kazakhstan provide for the right of appeal and state that any person has 
the right to appeal against decisions made by the customs bodies, actions (inactions) of the 
customs body or it s officials in accordance with procedures and time -frames established by G/VAL/N/2/KAZ/1  
 
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  the legislation of Kazakhstan.  In accordance  with Article 12 of Law No.  221-III "On Order of 
Review of Requests of Natural and Juridical Persons" of 12  January  2007, the decisions of  
authorities (State and local Government bodies), and the actions (inactions) of officials, can 
be appealed to a senior official.  In cases where there is no senior official, or where the 
appellant does not agree with the decision of the senior official, t he appellant can appeal 
directly to the court without exhausting all avenues of administrative appeal.  This principle 
is also confirmed in Article  278 of the Code of Civil Procedure of Kazakhstan No.  411-I of 
13 July 1999.  Thus, importers can appeal agai nst decisions made by the customs body to a 
senior customs official or to the court.    
(b) How is he to be informed of his right to further appeal?  
Procedures to inform importer on his right to appeal are established by the following legal 
acts: 
- Code of  Civil Procedure of Kazakhstan No.411 -I of 13  July 1999; 
- Law No. 221 -III "On Order of Review of Requests of Natural and Juridical Persons" of 
12 January  2007; and 
- Code No.  155-II "On Administrative Offences " of 30 January 2001 . 
(10) Provide information  on the publication, as required by Article 12, of:  
(a)  (i)  The relevant national laws:  
Article  4 of the Constitution of the Republic of Kazakhstan of 15 August 1995 stipulates that 
all laws and international treaties signed by Kazakhstan have to be publ ished.   
Law No. 213 -I "On Regulatory Legal Acts" of 24 March 1998 provides for the official 
publication and subsequent official publication of regulatory legal acts.  Regulatory legal 
acts, including those affecting the rights, freedoms and obligations of  citizens (other than 
acts containing State secrets and legally -protected confidential information), are published 
in the official periodicals.  In  particular, laws are published in the Bulletin of Parliament; 
Presidential and Government Resolutions are pu blished in the Collection of Acts of the 
President and the Government; and legal acts of the Central Executive and other Central 
State Bodies are published in the Collection of Acts of the Central Executive and Other 
Central State Bodies.  Regulatory legal  acts are also officially published in the periodicals 
"Yegemen Kazakhstan" and "Kazakhstanskaya Pravda".  Regulatory Decisions and 
Resolutions of Maslikhats and Akims are published in local periodicals and are distributed 
within the respective administrat ive territorial entity.  Subsequent publication takes place in 
periodicals after the texts have undergone a compliance check with the centralized collection 
of legal acts of Kazakhstan.  The list of regulatory legal acts is published and regularly 
updated on the website of the Ministry of Justice:   http://www.minjust.kz . 
(ii) The regulations concerning the application of the Agreement:  
The State Revenue Committee of the Ministry of Finance of the Republic of Kazakhstan 
publishes customs legal acts of Kazakhstan on its official printed publications and on the 
official website: http://kgd.gov.kz/ru . Customs bodies provide access to draft customs legal 
acts, except for the cases when ac cess to such information may impede the fulfilment of 
such act or reduce its effectiveness.  
(iii) The judicial decision and administrative rulings of general application 
relating to the Agreement:  
The judicial decisions and administrative rulings of genera l application are published in the 
official publications at websites of the court which issued such decision.  G/VAL/N/2/KAZ/1  
 
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  (iv) General or specific laws being referred to in the rules of implementation or 
application.  
Regarding to publication of CU/EAEU Agreements, CU/ EAEU Commission Decisions and other 
EAEU measures, all the information about the activities and decisions of EAEU bodies is 
available on the website:  http://www.eurasiancommission.org .  
(b)  Is the publica tion of further rules anticipated? Which topics would they cover?  
Article 10 of the Customs Code of the CU stipulates that all acts of customs legislation shall 
be published in official or other publications as well as via TV, radio and information 
technol ogies. The EAEU Commission shall provide free access for persons concerning on the 
EAEU legislation published in official publications or on official Internet -sites.  
Customs bodies shall consult interested persons on customs procedures issues within their 
competence, i.e. on customs procedures and customs control of goods and vehicles, 
customs transit, customs clearance etc.  
Consultation on customs procedures issues is carried out by customs bodies in verbal and 
written forms free of charge.  Upon receipt o f the written request from an interested person, 
the customs shall provide information in writing as soon as possible but no later than one 
month from the date of the receipt of the request.  
11.  Questions concerning Article 13:  
(a)  How is obligation of A rticle 13 (last sentence) being dealt with in the respective 
legislation?  
Requirements of Article 13 of the WTO Agreement are reflected in Article 11 of the CU 
Agreement on Customs Valuation, paragraph 5 of Article 64 and Articles 85 to 88 of the CU 
Custom s Code.  According to paragraph 5 of Article 64 of the CU Customs Code, if during 
the process of customs declaration of goods, the exact customs value cannot be determined 
for the reason of absence of documents proving the exact data necessary for its calc ulation, 
it is possible to delay the determination of the customs value.   In this case, it can be 
determined on the basis of the documents presented by the declarant, and duties and taxes 
can be paid on the basis of such customs value.  
According to Article  69 of the CU Customs Code, if the procedure for determination of goods 
customs value has not been carried -out within the time -frame  prescribed for release of the 
goods, such goods shall be released under the guarantee of the declarant to disburse the 
dutiable payments.  
(b)  Have additional explanations been laid down?  
Pursuant to Article 196 of the CU Customs Code, the customs body has to take a decision on 
release of the goods no later than one working day from the date of acceptance of a 
customs declara tion, as long as the submission includes all the requisite documents and 
information required by the customs legislation of Kazakhstan. If during the examination of 
a customs declaration and any other documents or data, customs bodies discover:  (i) any 
signs suggesting that the information stated by the declarant of goods contains fictitious 
information influencing the amount of dutiable payments; or (ii) that proper supporting 
evidence is not provided for the declared information, customs bodies are requi red to 
release the goods based on the presentation of a guarantee for dutiable payments for the 
amount of customs payments that might be additionally charged as a result of additional 
examination.  In that case, the goods must be released no later than in one day following 
the date that a guarantee for dutiable payments is  presented. (Article  69 of the CU Customs 
Code).  G/VAL/N/2/KAZ/1  
 
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  12. Questions concerning Article 16:  
(a) Does the respective national legislation contain a provision requiring customs 
authorities to give  an explanation in writing as to how the customs value was 
determined?  
 Pursuant to Article 11 of the CU Customs Code, customs authorities shall provide 
explanations on the provisions of the customs legislation , including how the customs value is 
determine d in writing.    
(b) Are there any further regulations an above -mentioned request?  
For the situations when it is possible to delay the determination of the customs value, the 
CU Customs Code prescribes that such cases as well as the order of declaration and  control 
of the customs value, peculiarities of calculation and payment of customs duties, taxes for 
such cases are to be set forth by the special decision of the EAEU Commission.  
Such decision currently is being prepared by the EAEU Member states.  
13. How have the Interpretive Notes of the Agreement been included?  
The provisions contained in the Interpretive Notes of the WTO Agreement have been 
incorporated in the CU Agreement on Customs Valuation. These provisions of the 
Interpretive Notes (most of which  constitute calculation examples) are being implemented 
through the EAEU Commission decisions. The Collegium of the Commission approved:  
- "The Rules on Application of Methods on Determination of Customs Value of Goods 
According to the Transaction Value of  Identical Goods (Method 2) and According to the 
Transaction Value of Similar Goods (Method 3)" on 30  October  2012, which 
incorporated illustrative examples of the Interpretative Notes to Articles 2 and 3 of the 
WTO Agreement on Customs Valuation ;  
- "The Rules on Application of Method on Determination of Customs Value of Goods 
According to the Deductive Value Method (Method 4)" on 13  November  2012;  
- "The Rules on Application of Method on Determination of Customs Value of Goods 
According to the Computed V alue Method (Method 5)" on 12 December 2012; and  
- "The Rules on Application of Method on Determination of Customs Value of Goods 
According to the Transaction Value Method (Method  1)" on 20  December  2012, which 
incorporated the remaining relevant provisio ns of the Interpretative Notes.  
14. How have the provisions of Decision on the Treatment of Interest Charges in the 
Customs Value of Imported Goods implemented?  
The provisions of Decision on the Treatment of Interest Charges in the Customs Value of 
Import ed Goods are implemented in Decision of the Collegium of the Commission No. 118 
"On Approval of the Rules on the Treatment of Interest Charges under  Determination of the 
Customs Value of Goods " of 22 September 2015.  
15. For those countries applying paragr aph 2 of the Decision on the Valuation of 
Carrier Media Bearing Software for Data Processing Equipment, how have the 
provisions of this paragraph been implemented?  
Provisions of paragraph 2 of Decision No. 4.1 of the Technical Committee on Customs 
Valuatio n "On the Valuation of Carrier Media Bearing Software, for Data Processing 
Equipment" are implemented in paragraph 8 of Article 101 of the Customs Code of 
Kazakhstan.   
-  For all questions listed above, an indication of the references is requested?  
No. 
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