RESTRICTED  
  
JOB/ACC/40  
 
4 July 2014  
(14-3840) Page: 1/3 
Working Party on the Accession of Kazakhstan  Original: English  
 
 ACCESSION OF KAZAKHS TAN 
COMMUNICATION FROM T HE CHAIRMAN OF THE W ORKING PARTY  
PROPOSAL ON ORDINARY CUSTOMS DUTIES    
 
You will recall that in my fax communication dated 13 June 2014, reproduced in document 
WT/ACC/KAZ/81  (25 June 2014) , I provided an update  on the negotiating state -of-play on the 
Accession of Kazakhstan.   I informed Members that there was constructive engagement and that 
consultations were underway with the Acceding Government of Kazakhstan and a number of 
Members across a range of outstandi ng issues, and in particular, on the tariff adjustment  question .  
Based on these consultations, I would like to submit, under my own responsibility , as Chairman of 
the Working Party, the draft proposal sub -joined to this communication.  This proposal refle cts 
consultations with and by the Acceding Government of Kazakhstan.  Assisted by the Secretariat, it 
is my intention to review this draft proposal  with Members, in the context of the Working Party, in 
different formats and configurations.  Prior to the ne xt Cycle of Meetings of the Working Party 
scheduled in the week of 21 July  2014, I would like to request Member s to communicate 
comments to me , on the draft text below , if any, through the Director of Accessions, who will be 
assisting me in the se consultat ions.    
 
 
Vesa Himanen  
Chairman  
Working Party on the Accession of Kazakhstan  
 
_______________  
 
- Ordinary Custom Duties  
2891. Kazakhstan undertook bilateral market access negotiations on goods with Members of the 
Working Party. The results of those negoti ations 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 C ET differed from the 
results agreed to in the bilateral goods market access negotiations. Since Kazakhstan had limited 
exemptions from the CU C ET, these Members expressed concern that Kazakhstan would n ot 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 further negotiations 
with those WTO Members with whom it had concluded b ilateral goods market access deals,  upon 
accession:  
  
                                                
1 This paragraph refers to the number in the Draft Working Party Report contained in 
WT/ACC/SPEC/KAZ/ 9/Rev.10 , 24 September 2013 .  The paragraph numbering will be updated in the next 
revisi on of the Draft Working Party Report, to be issued shortly  as document  WT/ACC/SPEC/KAZ/9/Rev.11 .        JOB/ACC/40  
 
- 2 - 
 
  (a) for those goods for which the final bound tariff rate  agreed in bilateral negotiations 
with WTO Members was lower than the tariff rate  established in the CU C ET 
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 C ET were, in some 
cases, higher than those contained in the Accession Schedule, Members inquired how Kazakhst an 
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 Sch edule, maintaining [any necessary] 
exemptions from the CU C ET 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 . The Working Party took note of these 
commitments.  
 
[289quater ] The representative of Kazakhstan further informed that no earlier than [three ] [four] 
years  from the date of full implementation of the final bound tariff rates contained in the Accession 
Schedule , Kazakhstan would seek to align the Accession Schedule with the CU C ET and , therefore , 
commence negotiations  with those WTO Member s that had concluded bilateral goods market 
access deals with Kazakhstan and would be affected by such alignment  [, i.e. those holding INRs 
or those having a principal [or substantial] supplying interest by the date on which the 
negotiations start] (hereaf ter "affected Members"). For that purpose Kazakhstan would notify its 
intention to commence the negotiations and all data relevant for the conduct of those negotiations 
six months before the start of the negotiations.  The Working Party took note of these 
commitments . 
 
[289quinques ] The negotiations referred to in [paragraph 289 quater ] would not include tariff rate 
increases on goods subject to subparagraph (b) of par agraph  289[, as well as on a small subset of  
tariff lines agreed to by Kazakhstan and affect ed Members listed  in Annex …, which are also 
excluded from any further negotiation thereafter ]. For goods subject to negotiation, the 
representative of Kazakhstan confirmed that no tariff lines subject to increase of the bound import 
tariff rates of Kazakh stan would be a priori excluded from the scope of these negotiations.  
The Working Party took note of these commitments.  
 
[289sexies ] The negotiation s referred to in [paragraph 289 quater ] would be entered into in good 
faith with a view to achieving mutually  satisfactory compensatory adjustment within [ X] years 
from their commencement . [The negotiations of compensatory adjustment may include formula 
approaches and requests on specific priority tariff lines.]2 [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 JOB/ACC/40  
 
- 3 - 
 
  negotiations, calculated on the basis 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 .]2  The represent ative of Kazakhstan also confirmed that it would not exclude 
the possibility that Kazakhstan would agree to exemptions obtained from the CU C ET [on a 
permanent basis ] as part of these negotiations.  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 Sched ule 
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 adjustment. She further 
confirmed that the representative of the Russian Federation had sta ted 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.  
 
[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 comp etent 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 of 
Kazakhstan confirmed that the WTO commitments  undertaken by a CU member are and will 
continue to be part of the CU legal order and automatically applicable to other CU members.] 
The Working Party took note of these commitments .] 
     
[289novies ] To reflect the results of these negotiations, 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 .  The Working Party took note of these commitments.  
 
 
__________  
 
                                                
2 These two bracketed sentences  are viewed as potential complements to each other, rather than as 
alternatives.