G/STR/N/17/KAZ  
 
23 July 2018  
(18-4604) Page: 1/8 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
NEW AND FULL NOTIFIC ATION PURSUANT TO ART ICLE XVII:4 (A) OF THE  
GATT 1994 AND PARAGR APH 1 OF THE UNDERST ANDING ON  
THE INTERPRETATION O F ARTICLE XVII  
KAZAKHSTAN  
The following communication, dated 27 June 2018, 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 years of 2016 and 2017.  
 
I. REPUBLICAN STATE ENTERPRISE "URAL -ATYRAU STURGEON FISHING PLA NT" 
(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   
 
В. 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 «UASF P» 
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  Sturgeo ns 
 Frozen sturgeon fish (beluga, 
sturgeon, starry sturgeon, 
barbel sturgeon)  
Sturgeon caviar  1604 31  
1604 32  Sturgeon caviar  Caviar  (beluga , sturgeon , starry 
sturgeon ) 
 G/STR/N/17/KAZ  
 
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  II. REASON AND PURPOSE FOR ESTABLISHING AND/OR MAINTAINING STATE 
TRADING ENTERPRISE  
 
А. REASON OR PURPOSE FOR ESTABLISHING  AND/OR MAINTAINING STATE TRADING 
ENTERPRISE  
 
The RSE "UASF P" was established in accordance with the Government Resolution of the Republic of 
Kazakhstan No. 909 of 16 September 1998 for implementation of artificial breeding of wildlife for 
sustainable use, conservation of biological diversity and gene pool . 
 
For the  purpose of preservation of Acipenseridae fish species (sturgeon species), national 
legislation introduced State monopoly on their catch from natural habitat, processing and sale. In 
this regard, the RSE "UASFP" was determined as a State monopoly in accord ance with the 
Government Resolution of the Republic of Kazakhstan No. 1413 "On Certain Issues 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 RELEVANT EXCLUSIVE OR SPECIAL RIGHTS 
OR PRIV ILEGES, INCLUDING LEGAL PROVISIONS AND SUMMARY OF STATUTORY OR 
CONSTITUTIONAL POWERS  
 
In accordance with paragraph 1 Article 11 -1 of the Law of the Republic of Kazakhstan No. 593 "On 
Protection, Reproduction and Use of Fa una" of 9 July 2004,the activity on harvesting the sturgeon 
species from their natural habitat, their purchasing, processing, and export (Law of the RK 
No. 73-VI of 15 June 2017 substituted the word "export" by the word "sale")  of their caviar and 
other ty pes 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 from natural habitat, th eir caviar and other types 
of their products.  
 
III. DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
 
А. SUMMARY STATEMENT PROVIDING OVERVIEW OF OPERATIONS OF THE STATE TRADING 
ENTERPRISE  
 
The RSE "UASFP" engages in rehabilitation of sturgeon 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 ) within the framework of governmental order.  
 
The RSE "UASFP"  is supervised by the Committee of Forestry and Fauna of the Ministry of 
Agriculture of the Republic of Kazakhstan in accordance with Resolution of the Government of the 
Republic of Kazakhstan No. 310 of 6 April 2005.  
 
В. SPECIFICATION OF EXCLUSIVE OR SPEC IAL RIGHTS OR PRIVILEGES ENJOYED BY THE 
STATE TRADING ENTERPRISE  
 
Pursuant to Law of the Republic of Kazakhstan No. 593 "On Protection, Reproduction and Use of 
Fauna" of 9 July 2004, the activity on harvesting the sturgeon species from their natural habita t, 
purchasing, processing, and sale thereof as well as of caviar and other types of products belong to 
the State monopoly and shall be exclusively conducted by the State enterprise.  
 
Harvesting of sturgeon species from natural habitat can be conducted solely by the State 
enterprise as well as by juridical persons for scientific and research purposes in the order 
established by the Ministry of Agriculture.  
 
The Ministry of Agriculture i n coordination with the antimonopoly authority establishes the price for 
products sold by the State monopoly. 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.  
 G/STR/N/17/KAZ  
 
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  С. TYPE OF ENTITIES OTHER THAN THE STATE TRADING ENTERPRISE THAT ARE ALLOWED TO 
ENGAGE  IN IMPORTATION/EXPORTATION AND CONDITIONS FOR PARTICIPATION  
 
As described above, only State enterprise can engage in the sale of sturgeon species harvested  
from natural habitat and products thereof. Whereas, State enterprises do not possess monopoly on 
artificial breeding of sturgeon species. Paragraph 4 Article 19 of Law of the Republic of Kazakhstan 
No 593 "On Protection, Reproduction and Use of Fauna" det ermines that artificial breeding of 
sturgeon species for commercial purposes can be conducted by physical and juridical persons and 
other entities/sources not prohibited by legislation of the Republic of Kazakhstan.  
 
Nevertheless, in accordance with paragr aph 3 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 bred in fish -farms or in semi -
farming to be registered at the administrative authority. In other words, entities intended to 
engage in farming of sturgeon species shall be registered at the authorized body.  
 
D. HOW IMPORT/EXPORT LEVELS ARE ESTABLISHED BY THE STATE TRADING ENTERPRISE  
 
Kazakhstan is a party to the Convention on International Trade in Endangered Species of Wild 
Fauna and Flora (hereinafter – Convention) since April 1999. Sturgeon species are included into 
Annex II of the Convention as species, which are currently not thre atened 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.  
 
At the Third Summit of Heads of the Caspian Region States on 18 November 2010 in Bak u, the 
President of the Republic of Kazakhstan N.A. Nazarbayev proposed the initiative on introduction of 
five-party moratorium for the catch of sturgeon species in the Caspian Sea for 5 years.  
 
In 2012, the Republic of Kazakhstan introduced a ban on fishi ng of sturgeon species, except for 
reproductive and scientific purposes (the Government Resolution of the Repu blic of Kazakhstan 
No. 303 which was replaced by the Order of the Acting Chair of the Committee of Forestry and 
Fauna of the Ministry of Agricultu re of the Republic of Kazakhstan No. 190 of 24 July 2015).  
 
The quota for fishing of sturgeon species is allocated for reproduction purposes in the amount of 
10 tons and for scientific and research works – 2.3 tons. Actual fulfillment of the quota is equal  to 
approximately 3.0 -3.5 tons.  
 
No export has taken place since 2012 because the Government is still in the process of fulfilling of 
the requirements  of Annex II of the Convention.  
 
Е. HOW EXPORT PRICES ARE DETERMINED  
 
Due to the moratorium on catch of st urgeon species in Caspian Sea, the RSE "UASFP" is not 
involved in exportation.  
 
F. HOW THE RESALE PRICES OF IMPORTED PRODUCTS ARE DETERMINED  
 
The RSE "UASFP" does not engage in importation.  
 
G. WHETHER LONG -TERM CONTRACTS ARE NEGOTIATED BY THE STATE TRADING 
ENTERPRISE. WHETHER THE STATE TRADING 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 obl igations undertaken by the Government.  
 
Н. BRIEF DESCRIPTION OF MARKET STRUCTURE  
 
In accordance with Paragraph 1 of Article 11 -1 Law of the Republic of Kazakhstan No. 593 "On 
Protection, Reproduction and Use of Fauna" of 9 July 2004, the activity on harves ting the sturgeon 
species from their natural habitat, as well as purchase, processing thereof, and sale of their caviar 
and other types of products belong to State monopoly and exclusively shall be conducted by the G/STR/N/17/KAZ  
 
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  State enterprise. Thus, the RSE "UASFP" d oes not have competition on the internal market. 
However, it should be noted that in accordance with Paragraph 2 of Article 11 -1 physical and 
juridical persons, who purchased products from the State monopoly have the right to conduct its 
further processing  and sale.  
  
  G/STR/N/17/KAZ  
 
- 5 - IV. STATISTICAL INFORMATION  
TABLE I  
STATE TRADING: REPUBLICAN  STATE  ENTERPRISE "URAL -ATYRAU STURGEON FISH ING 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)  
Sturgeoncaviar:  
(1604 31)  
(1604 32)  
   
  G/STR/N/17/KAZ  
 
- 6 - TABLE II  
STATE TRADING: REPUB LICAN STATE ENTERPRI SE "URAL -ATYRAU  STURGEON  FISHING PLANT"  
STATISTICAL INFORMATION for 2016 and 2017, 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 KZT3 - - 
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 KZT3 
Sturgeoncaviar:  
(1604 31)  
(1604 32)  Caviar of great 
sturgeon  
164 181 KZT3 
Caviar of sturgeon  
140 661,5 KZT3 
Caviar of starred 
sturgeon  
56 695,9 KZT3 
1  Statistics on total quantity exported, quantity exported by state trading enterprise, average procurement price, average export price, national production are 
not collected.  
2  Prices on products sold by the State monopoly entity are determined in accordance with Order of the Minister of Agriculture o f the Republic of Kazakhstan 
No. 18-05/839 "On E stablishment of Prices for Products Sold by the State Monopoly Entities" of  22 September 2015.  
3  In accordance with official exchange rate of the National Bank of the Republic of Kazakhstan as of 24  April 2018 1USD=326.27 KZT.   
  G/STR/N/17/KAZ  
 
- 7 - TABLE  III 
STATE  TRADING: REPUBLICAN  STATE  ENTERPRISE "URAL -ATYRAU  STURGEON  FISHING PLANT  
STATISTICAL INFORMATION for the years of 2016 and 2017, DOMESTIC ACTIVITIES  
Description of product 
(including HS code)  Domestic purchases by 
state trading enterprise1 National production2 Dome stic 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  - 
4.88kg  - 
Fish, f rozen, 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)  
 4218.26kg  
Sturgeon caviar:  
(1604 31)  
(1604 32)  29.64kg  
1  The RSE "UASFP" conducts fishing of sturgeon 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  Committee of Forestry and Fauna of the Ministry of Agriculture.  G/STR/N/17/KAZ  
 
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  V. REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE  
 
Order of the Acting Chair of the Committee of Forestry and Fauna of the Ministry of Agriculture of 
the Republic of Kazakhstan No. 190 "On Introduction of Restrictions and Prohibitions on Use of 
Fauna, their Parts and Derivatives, Establishment of Places an d Terms of Use " of 24 July 2015 
introduced a ban on catch of sturgeon species by physical and juridical persons, except for:  
 
1) enterprises of fish reproduction (in the framework of governmental contract);  
2) scientific organizations conducting scientific  and research catch;  
3) State monopoly if quota for catch of sturgeon species is allocated.  
 
Quotas are allocated by the Commission on Aquatic Biological Resources of the Caspian Sea. On 
25-29 May 2015, at the 35th session of the Commission, all Parties re ported that there is no 
industrial (commercial) fishing of sturgeon species in the Caspian Sea and there are no such plans, 
therefore there is no need to allocate quotas.  
 
National legislation authorizes the RSE "UASFP " with the exclusive right to sell st urgeon species 
harvested from natural habitat. Because 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.  
 
__________