G/STR/N/16/KAZ  
 
21 June 2016  
(16-3353)  Page: 1/8  
Working Party on State Trading Enterprises  Original: English  
 
 STATE TRADING 
NEW AND FULL NOTIFICATION PURSUANT  TO ARTICLE XVII:4 (A) OF THE  
GATT 1994 AND PARAGRAPH 1 OF THE UNDERSTANDING ON  
THE INTERPRETATION OF ARTICLE XVII  
KAZAKHSTAN  
The following communication, dated 20 June 2016, is being circulated at the request of the 
Delegation of Kazakhstan. 
 
_______________ 
 
 
Pursuant to the provisions of Article XVII:4 (a) of the GATT 1994 and paragraph 1 of the Understanding on the Interpretation of Article XVII, Kazakhstan submits herewith its notification 
concerning state trading enterprises. This notification covers the Ural-Atyrau Sturgeon Fishing 
Plant for the year of 2015.  
I. Republican State Enterprise "Ural-Atyrau Sturgeon Fishing Plant" (hereinafter – 
RSE "UASFP")  
А. IDENTIFICATION OF STATE TRADING ENTERPRISES 
 
Mailing/actual address: 060009,  
The Republic of Kazakhstan,  
Atyrau region, City of Atyrau,  
Village of Zarosloe  
Tel/fax +7 (7122) 23-30-47 E-mail: rgkp_uaorz@mail.ru  
 G/STR/N/16/KAZ 
 
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  B. DESCRIPTION OF PRODUCTS AFFECTED (INCLUDING TARIFF ITEM NUMBER(S) 
ENCOMPASSED IN PRODUCT DESCRIPTION)  
 
General group of HS HS Code Heading of commodity 
item Name of the product 
produced by RSE 
"UASFP" 
1 2 3 4 
Smoked fish, including fillets, other than edible fish offal 0305 49 801 0 Sturgeons Cold smoked sturgeon 
fish (beluga, sturgeon, starry sturgeon, barbel sturgeon) 
Fish, frozen, excluding fish fillets and other fish meat of heading 0304: - sturgeons;  - for industrial products 
of heading 1604 0303 89 101 0 
0303 89 102 0 0303 89 103 0  Sturgeons Frozen sturgeon fish 
(beluga, sturgeon, starry sturgeon, barbel sturgeon)  
Sturgeon caviar 1604 31 
1604 32 Sturgeon caviar Caviar (beluga, 
sturgeon, starry sturgeon) 
 
 
II. REASON AND PURPOSE FOR ESTABL ISHING AND/OR MAINTAINING STATE 
TRADING ENTERPRISE 
 
А. REASON OR PURPOSE FOR ESTABLISHING  AND/OR MAINTAINING STATE TRADING 
ENTERPRISE 
 
The RSE "UASFP" was established in accordance with the Government Resolution of the Republic of Kazakhstan No. 909 of 16 September 1998 for breeding, processing and sale of Acipenseridae fish species (sturgeon species). 
 
For the purpose of preservation of sturgeon species, national legislation introduced State monopoly on their catch from natural habitat, processing and export. In this regard, the RSE "UASFP" was 
determined as a State monopoly entity in accordance with the Government Resolution of the 
Republic of Kazakhstan No. 1413 "On Certain Issu es of the Ministry of Environment and Water 
Resources of the Republic of Kazakhstan" of 27 December 2013. 
 
В. SUMMARY OF LEGAL BASIS FOR GRANTING  THE RELEVEANT EXCLUSIVE OR SPECIAL 
RIGHTS OR PRIVELEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF 
STATUTORY OR CONSTITUTIONAL POWERS 
 
In accordance with paragraph 1 of Article 11-1 of  Law of the Republic of Kazakhstan No. 593 "On 
Protection, Reproduction and Use of Fauna" of 9 Ju ly 2004, the activity on harvesting the sturgeon 
species from their natural habitat, their purchasi ng, processing, and export of their caviar and 
other types of products is related to the State monopoly and is conducted exclusively by a State enterprise. Thus, the RSE "UASFP" is the only company in the Republic of Kazakhstan, which has 
the right to export sturgeon species, harvested fr om natural habitat, their caviar and other types 
of their products.   III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
 
А. SUMMARY STATEMENT PROVIDING OVERVI EW OF OPERATIONS OF THE STATE 
TRADING ENTERPRISE 
 
The RSE "UASFP" engages in rehabilitation of sturge ons' population in the Republic of Kazakhstan 
by means of artificial reproduction with a capacity  about 3.5 million juvenile fish per year (beluga, 
sturgeon, starry sturgeon, barbel sturgeon) in the framework of governmental contract. 
 The RSE "UASFP" is supervised by the Committee of Forestry and Fauna of the Ministry of 
Agriculture of the Republic of Kazakhstan in accord ance with Order of the Minister of Agriculture of 
the Republic of Kazakhstan No. 18-5/520 of 5 June 2015.  G/STR/N/16/KAZ 
 
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  В. SPECIFICATION OF EXCLUSIVE OR SPECIAL RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE 
 In compliance with Law of the Republic of Kazakhstan No. 593 "On Protection, Reproduction and 
Use of Fauna" of 9 July 2004 the activity on harv esting the sturgeon species from their natural 
habitat, their purchasing, processing, and export of  their caviar and other types of products relates 
to the State monopoly and is conducted exclusively by the State enterprise. 
 
In case of incidental catch of sturgeon species, viable specimens should be released into natural environment and non-viable (dead) individuals shou ld be delivered to the State monopoly entity 
without compensation. 
 
Harvesting of sturgeon species from natural habitat is conducted by State enterprises of fish reproduction with the aim of artificial breeding, as well as by legal entities for scientific and 
research purposes in the order established by the Ministry of Agriculture. 
 The Ministry of Agriculture in coordination with the antimonopoly authority establishes the price for 
products sold by the State monopoly entity. Current prices have been established in accordance 
with Order of the Minister of Agriculture of  the Republic of Kazakhstan No. 18-05/839 of 
22 September 2015.  
С. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE 
ALLOWED TO ENGAGE IN IMPORTATION/EXPORTATION AND CONDITIONS FOR PARTICIPATION 
 
As pointed out above, only State enterprise ca n engage in the export of sturgeon species 
harvested from natural habitat and products ther eof. Meanwhile, State enterprises do not have 
monopoly on artificial breeding of sturgeon sp ecies. Paragraph 4 of Article 19 of Law of the 
Republic of Kazakhstan No 593 "On Protection, Reproduction and Use of Fauna" determines that artificial breeding of sturgeon species for comme rcial purposes can be conducted by physical and 
juridical persons and other entities/sources not prohibited by legislation of the Republic of 
Kazakhstan. 
 Nevertheless, it is worth mentioning that in acco rdance with paragraph 3 of Article 19, animals, 
species included in Annexes I and II of the Convention on International Trade in Endangered 
Species of Wild Fauna and Flora (hereinafter – the Convention), can be traded only if they were 
b r e d  i n  f i s h - f a r m s  o r  i n  s e m i - f a r m i n g  t o  b e  re g i s t e r e d  a t  t he  a d m i n i s t r a t i v e  a u t h o r i t y .  I n  o t h e r 
words, entities intended to engage in farming of sturgeon species shall be registered at the 
administrative authority.   
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING 
ENTERPRISE 
 At the Third Summit of Heads of the Caspian Region States on 18 November 2010 in Baku, the 
President of the Republic of Kazakhstan N.A. Nazarbayev announced an initiative on introduction of 
five-party moratorium for the catch of sturge on species in the Caspian Sea for 5 years. 
 
Since 2012 the Republic of Kazakhstan has establishe d a ban on catch of sturgeon species, except 
for reproductive and scientific purposes (the Government Resolution of the Republic of Kazakhstan No. 303 (became void in 2015) and Order of the Ac ting Chair of the Committee of Forestry and 
Fauna of the Ministry of Agriculture of the Repu blic of Kazakhstan No. 190 "On Introduction of 
Restrictions and Prohibitions on the Use of Fauna, their Parts and Derivatives, Establishment of 
Places and Terms of Use" of 24 July 2015").  
The quota for catch of sturgeon species is allocated for reproductive purposes in the amount of 
10 tons and for conducting scientific and research  works – 2.3 tons. However, actual development 
of annual limit for the fulfilment of the governmental contract is equal to approximately 3.0-3.5 
tons. 
 In accordance with the technology, fish hatcheries release back into natural habitat in a living form 80-85% of mature specimens of sturgeon fish involved in artificial reproduction. Nevertheless, 
some of the female fish, because of their physiological characteristics are not amenable to G/STR/N/16/KAZ 
 
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  life-production of caviar without killing. Caviar of such females is extracted from the body by 
traditional method, i.e. by slaughtering. Carcasses of such fish shall be processed and sold by the 
State monopoly.  
In accordance with the Law of the Republic of  Kazakhstan on "Accession of the Republic of 
Kazakhstan to the Convention on International Trade in Endangered Species of Wild Fauna and Flora" No. 372-I of 6 April 1999, the Republic of Kazakhstan has become a Party to the 
Convention. 
 It should be noted that sturgeon species are incl uded into Annex II of the Convention as species, 
which are currently not threatened to extinct but may become so, if trade in such species will not 
be strictly regulated for the purpose of prevention  of their use incompatible with their survival. 
 In this regard, in order to control the population of sturgeon species, the Secretariat of the 
Convention approves annual quotas for catch from their natural habitat, export of caviar and meat 
of sturgeon species.  
That said, according to paragraph 4 of the Agenda of the 35th session of the Commission on 
Aquatic Biological Resources of the Caspian Sea, taken place in 25-29 May 2015 in Saint-Petersburg, all Parties reported that in 2015 and 2016 will not engage in industrial (commercial) catch of sturgeon species in the Caspian Sea. 
 
In this connection, the Parties have decided to not to allocate export quotas for caviar and other products of sturgeon species in 2015-2016. 
 
Based on the abovementioned, for today export is not possible.  
Е. HOW EXPORT PRICES ARE DETERMINED 
 Due to the moratorium on catch of sturgeon species in Caspian Sea, the RSE "UASFP" is not involved in exportation.  
 
F. HOW THE RESALE PRICES OF IM PORTED PRODUCTS ARE DETERMINED  
 
The RSE "UASFP" does not engage in importation.  
 
G. WHETHER LONG-TERM CONTRACTS AR E NEGOTIATED BY THE STATE TRADING 
ENTERPRSISE. WHETHER THE STATE TRAD ING ENTERPRISE IS USED TO FULFILL 
CONTRACTUAL OBLIGATIONS ENTERED INTO BY THE GOVERNMENT 
 The RSE "UASFP" does not negotiate any long-term contracts and does not participate in the 
implementation of contractual obligations undertaken by the Government. 
 
Н. BRIEF DESCRIPTION OF MARKET STRUCTURE 
 
In accordance with paragraph 1 of Articl e 11-1 Law of the Republic of Kazakhstan № 593 "On 
Protection, Reproduction and Use of Fauna" of 9 Ju ly 2004 the activity on harvesting the sturgeon 
species from their natural habitat, their purchasi ng, processing, and export of their caviar and 
other types of products is related to State mo nopoly and is exclusively conducted by State 
enterprise. Thus, the RSE "UASFP" does not have competition on the internal market. However, it should be noted that in accordance with paragraph 2 of this Article physical and juridical persons, 
who purchased products from the State monopoly have the right to conduct its further processing 
and sale.  
  G/STR/N/16/KAZ  
 
- 5 - IV. STATISTICAL INFORMATION  
 
TABLE I 
STATE TRADING: REPUBLICAN STATE ENTERPRISE "URAL-ATYRAU STURGEON FISHING PLANT" 
STATISTICAL INFORMATION, IMPORTS 
Description of 
product (including HS 
code) Total quantity 
imported Quantity imported by 
state trading 
enterprise Average import price Average 
representative 
domestic sales price Mark-up National production 
1 2 3 4 5 6 7 
Smoked fish, 
including fillets, other than edible fish offal: (0305 49 801 0) 
The RSE "UASFH" is not involved in importation 
 Fish, frozen, excluding fish fillets and other fish meat of heading 0304: 
- sturgeons;  
- for industrial products of heading 1604: (0303 89 101 0) (0303 89 102 0) (0303 89 103 0) 
Sturgeon caviar: (1604 31) (1604 32) 
  
  G/STR/N/16/KAZ  
 
- 6 - TABLE II 
STATE TRADING: REPUBLICAN STATE ENTERPRISE "URAL-ATYRAU STURGEON FISHING PLANT 
STATISTICAL INFORMATION, EXPORTS 
Description of 
product (including HS 
code) Total quantity 
exported1 Quantity exported by 
state trading 
enterprise1 Average procurement 
price1 Average 
representative 
domestic sales price2 Average export price1 National production1 
1 2 3 4 5 6 7 
Smoked fish, 
including fillets, other than edible fish offal: (0305 49 801 0) - 
 - 
 - 
 5 290.7 KZT
3 - - 
Frozen fish, excluding 
fish fillets and other fish meat of heading 0304: - sturgeons;  - for industrial products of heading 1604: (0303 89 101 0) (0303 89 102 0) (0303 89 103 0) 1 555.8 KZT
3 
Sturgeon caviar: 
(1604 31) (1604 32) 120 614.6 KZT
3 
 
Notes: 1 Statistics on total quantity exported, quantity exported by st ate trading enterprise, average pr ocurement price, average expor t price, national production are 
not collected. 
 2 Prices on products sold by the State mono poly entity are determined in accordance wi th Order of the Minister of Agriculture of  the Republic of Kazakhstan 
No. 18-05/839 "On Establishment of Prices for Products Sold by the State Monopoly Entities" of 22 September 2015. 
 3 In accordance with official exchange ra te of the National Bank of the Republic of Kazakhstan as of 13 May 2016 1USD=329KZT.  
  G/STR/N/16/KAZ  
 
- 7 - TABLE III 
STATE TRADING: REPUBLICAN STATE ENTERPRISE "URAL-ATYRAU STURGEON FISHING PLANT 
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
Description of product 
(including HS code) Domestic purchases by state 
trading enterprise1 National production2 Domestic sales by state trading 
enterprise3 National consumption2 
1 2 3 4 5 
Smoked fish, including fillets, 
other than edible fish offal: (0305 49 801 0) The RSE "UASFP" is not 
involved in domestic/external 
purchases - 2.1 kg - 
Fish, frozen, excluding fish 
fillets and other fish meat of heading 0304: - sturgeons;  - for industrial products of heading 1604: (0303 89 101 0) (0303 89 102 0) (0303 89 103 0) 1621.8 kg 
Sturgeon caviar: 
(1604 31) (1604 32) 0.7 kg 
 
 
Notes:  1 The RSE "UASFP" conducts harvest of sturge on species from natural habitat and engages in confiscation of poaching catch but is  not involved in domestic or 
external purchases. 
 2 Statistics on national production and national consumption are not collected.  
 3 Statistics is provided by the Co mmittee of Forestry and Fauna of the Ministry of Agriculture.  G/STR/N/16/KAZ 
 
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V. REASON WHY NO FOREIG N TRADE HAS TAKEN PLACE  
 Resolution of the Government of the Republic  of Kazakhstan No. 303 of 7 March 2012 (became 
invalid in 2015) and Order of the Acting Chair of  the Committee of Forestry and Fauna of the 
Ministry of Agriculture of the Republic of Kazakh stan No. 190 "On Introduction of Restrictions and 
Prohibitions on Use of Fauna, their Parts and Derivatives, Establishment of Places and Terms of 
Use" of 24 July 2015" have introduced a prohibition on catch of sturgeon species by individual and 
legal entities, except for:  1) enterprises of fish reproduction (in the framework of governmental contract); 
2) scientific organizations conducting scientific and research catch; 
3) State monopoly in case of availability of quota for catch of sturgeon species.  
The Commission on Aquatic Biological Resources of the Caspian Sea allocates quotas. In 
25-29 May 2015, in the 35
th session of the Commission all Parties reported that there is no 
industrial (commercial) catch of sturgeon species in the Caspian Sea and there are no plans for it 
for the years 2015 and 2016, therefore there is no need to allocate quotas.  
 National legislation authorizes the RSE "UASFP" with  the exclusive right to export sturgeon species 
harvested from natural habitat, however as this right is currently restricted by the decision of the 
Commission on Aquatic Biological Resources of the Caspian Sea, the RSE "UASFP" does not export 
sturgeon species, and products made thereof.  
The RSE "UASFP" is not involved in importation. 
 
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