Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 41 
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. There has been substantial liberalization of the Kyrgyz Republic's trade regime during its 
economic transition.  Tariffs have  been reduced and many formal non-tariff barriers eliminated.  
Import bans and licensing are mainly to protect hu man health and safety, national security, and the 
environment, under international conventions.  Li censing has been reduced substantially, and is 
generally automatic when imposed for other reas ons, such as on imports of precious metals and 
stones, and alcoholic beverages.  Import quotas, applied only to alc oholic drinks, appear largely non-
restrictive. 
2. The tariff, the main trade policy instrument, has been rationalized.  The simple average 
applied MFN rate is 4.9%, down from 5.2% in 2005 (8 .7% in 1999).  Tariffs are generally higher on 
agricultural (8.1%) than industrial goods (4.1%) (W TO definition).  The moda l rate of 10% covers 
34% of lines, and 59% are 5% or below (46% dut y free).  The number of bands has fallen from 
twelve in 1999 to six, and except for a few sugar ite ms with rates of 20% and 30%, the highest rate is 
15%.  Rate disparities and escalation are relatively low, with few domestic a nd international tariff 
peaks.  All but a few tariff lines are bound, at an average rate of 7.7%.  This exceeds applied MFN 
rates, thereby enabling tariffs to be raised within  existing bindings.  A few tariffs exceed bound levels.  
Only a few rates are non- ad valorem  (1.3%), thereby improving transparency, and only certain sugar 
imports have been subject to seasonal duties.  Domestic commodity taxes (e.g. VAT) do not 
discriminate against imports, although the excise inci dence may be higher on imported cigarettes.  No 
anti-dumping, countervailing or safegua rd measures have been applied.   The tariff structure and its 
economic effects are complicated by substantial preferential imports and associated rules of origin. 
3. Customs valuation is based on c.i.f. price using transaction values, and no preshipment 
inspection is required.  Nevertheless, customs fo rmalities and procedures, both formal and informal, 
as well as corruption, restrict imports (e.g. throu gh duplicative and excessive physical inspections).  
Improved customs cooperation with neighbouring c ountries to facilitate trade is a government 
priority.  Smuggling is substantial.  A non-cost-based customs fee of 0.15% c.i.f. value is payable on 
all imports to cover costs of providing customs ser vices.  Foreign hauliers who do not have special 
permits or TIR carnets are charged a US$250  fee to enter the Kyrgyz Republic.  
4. No state-trading enterprises have been notifie d, although they may exist (e.g. Kyrgyzalko/ 
Alkoprom’s production controls over alcoholic beverages, including ma ndatory majority joint venture 
requirements).  This reduces transparency.  C ountertrade has been reduced substantially.  The 
soviet-styled standards system is being transforme d to a market-based regime.  Standards, except for 
those containing technical regulations, are no longer ma ndatory.  Such regulations are to be reviewed 
fully by 2009 and have already been reduced by 70%;  they no longer apply to most services.  There are some 20,000 standards, many inoperative.  They are being revised and inte rnationally harmonized, 
but progress is slower than pla nned, and only 38% are currently harmonized.  Certification and 
recognition of overseas testing results has been improved, but still appear to restrict imports unnecessarily.  Institutional arrangements for standard ization, conformity assessment, certification, 
and testing are being reformed.  SPS requirements ha ve been simplified, but may still overly restrict 
imports. 
5. Exports are largely unregulated.  An export prohibition on treacle and a 100% export tax on 
wheat and flour no longer apply.  Except for non-fe rrous metal fragments and waste, licensing is 
mainly for public health and safety, and environm ental protection.  Other licences (e.g. for ferrous, 
precious, and rare-earth metals and fragments) are not intended to restrict exports.  Free economic WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 42 
 
 
zones have had mixed success, and while attracti ng some limited investment incur substantial 
domestic sales leakage, possibly without full taxati on, and have promoted tax evasion.  Only the 
Bishkek zone is to be retained.  Transit restric tions by neighbouring countries, especially Uzbekistan 
and until recently Kazakhsta n, impede Kyrgyz exports. 
6. Government procurement has been opened a nd its use as a means of supporting domestic 
industry has fallen.  Despite improved legislation, price preferences apply (20% on goods and 10% on 
works) based on minimum local content of 30%.  Th e Kyrgyz Republic is negotiating membership of 
the WTO Government Procurement Agreement.  Farmers receive minimal financial support, but 
water usage is heavily subsidized.  Budgetary loan s have been eliminated, but many enterprises have 
large accumulated outstanding government debt, wh ich amounted to 15% of GDP in mid 2003.  
7. The legal business framework, including licensing and registration, has been simplified, but 
remains cumbersome and greatly impedes business.   The Presidential Council on Good Governance 
was put in place in 2004 but problems remain in this  area, including corruption.  Intellectual property 
rights have been strengthened, with the Kyrgyz Re public joining most international conventions, but 
weak enforcement, especially by customs, permits many formal pirated imports.  Parallel imports are 
allowed.  Privatization has been revitalized, but the most significant and politically more sensitive 
entities remain under state ownership (e.g. utilities), and to protect state monopolies, some activities 
cannot be privatized, e.g. gold and minerals.  Competition policy is weak, reflecting mainly the 
existence of many sanctioned monopolies (natural and authorized).  The autonomy of the National 
Agency on Anti-monopoly Policy is uncertain.  Pr ices, apart from those of mainly utilities and 
transport, which are set by the agency, have been de-controlled.   
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures  
8. The main legislation governing imports, th e 2004 Customs Code, which replaced the 1997 
Code, is aimed at raising customs collections  by 20% and accelerating clearance.  The Code 
strengthened the legal basis of customs, th e procedures on customs control, clearance and 
enforcement, and introduced important changes to clarify operations of customs brokers and other 
intermediaries.  Since its introduction, the Gove rnment has made significant progress in reducing 
deficiencies in customs administration;  customs revenue grow from 0.5% of GDP in 2004 to 1.7% of 
GDP in 2005.  The Kyrgyz Republic intends to  accede to the Revised Kyoto Convention and, 
according to authorities, the 2004 Customs Code is in full compliance with its main principles and 
provisions.  The Kyrgyz Republic joined the World Customs Organization (WCO) in 1997.1   
9. The State Customs Inspectorate (SCI) is res ponsible for customs and, according to the 
authorities, it lacks resources.  There have been no major recent changes in customs administration, 
although trade facilitation, especially involving cu stoms and transit coopera tion with neighbouring 
countries, is a government priority (Chapter III(3)(i)).2  A modernization programme is developing the 
Single Automated Information System (SAIS), in cluding development of software systems and 
enhanced communication links, and improving inad equate infrastructure at border entry points 
(around 40).  Electronic customs processing, howe ver, remains poorly developed, and customs 
administration is weak, with corruption remaining a major problem.   
                                                      
1 The Kyrgyz Republic plans to join the ATA Conv ention (Customs Convention on the ATA Carnet for 
the Temporary Admission of Goods), the Johannesburg Convention (International Convention on Mutual Administrative Assistance in Customs Matters, and the Istanbul Convention (Convention on Temporary 
Admission). 
2 Customs cooperation has been a key focus of the many regional and bilateral arrangements among 
CIS states (Chapter II). Kyrgyz Republic WT/TPR/S/170/Rev.1 
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10. There are no registration requirements for im ports.  The principal document for customs 
clearance is the Customs Cargo Declaration, wh ich is used throughout the region as the Single 
Administrative Document.  An importer may declar e goods or use a customs broker licensed by the 
SCI (Regulation On Customs Brokers, December 2004).3  Supporting documents required include 
those verifying customs value and the means of transport (invoice, transportation, and shipping 
documents, such as bill of lading, international road  waybill or air bill), origin (e.g. certificate in 
"CT-1" format for CIS countries or the internati onally recognized "A" format for non-CIS imports), 
payment settlement (e.g. bank transfer, payment order), payment of customs duties (e.g. bank 
payment order, cash receipt), and, where releva nt, import licences, safety certifications or SPS 
certificates (Instruction on Customs Clearance and Customs Control of Goods and means of Transport 
Conveyed Across the Customs Border, Resolution No. 961, December 2004).   Importer's details, 
including business registration certificate and identif ication tax number, must  also be provided. 
11. Goods generally must be declared within 15 days of arrival, with all required supporting 
documentation provided within 45 days from the d eclaration date.  If in formation submitted is 
inadequate, provisional clearance is possible usi ng a temporary goods declaration (TGTD) or an 
incomplete goods declaration (IGTD).  Importe rs regularly importing the same good may submit a 
periodic goods declaration (PGTD), which is a single customs declaration for all the goods conveyed across the customs border within a certain period of  time (Resolution No. 961 of 26 December 2004). 
12. Customs take test samples for certain goods to  validate the import declaration and to ensure 
that imports meet domestic requirements.  Imports are generally inspected physically.
4  There are 
claims of duplicative inspections and that t oo many consignments are inspected, causing clearance 
delays.5  Green corridors for passengers operate mainly  at Manas Airport in Bishkek and Torugart 
customs post.  A risk-management system based on ri sk analysis is being developed to target high-
risk imports, but is largely embryonic operationally.6  Importers that have engaged in trade for at least 
three years and have exemplary records may apply for special simplified customs procedures, subject 
to certain post-entry auditing using risk analysis (Instruction on Post-Entry Control, Resolution 
No. 961, December 2004). Currently 14 importers, cove ring an estimated 5% of total imports, benefit 
from these simplified procedures.  It appears, howev er, that the business community in general is not 
adequately informed about simplified procedures or  is reluctant to apply for eligibility, perhaps 
believing they are not worthwhile. 
13. Customs must decide on clearance within one day of declaration, and goods are to be cleared 
in principle within three days.  While data on av erage release times were unavailable, it reportedly 
frequently takes from three to five days.7  There are numerous complaints of excessive documentation 
and other cumbersome administrative requirements, including corruption by officials with substantial discretion in setting valuations.
8  In this respect it should be noted that inefficient customs 
administration using outdated procedures can substantia lly raise traders' transactions costs, especially 
                                                      
3 Customs brokers must be Kyrgyz persons and have a staff specialist with a qualification certificate 
from the SCI.  There are curren tly 26 licensed customs brokers. 
4 World Bank (2005a), para. 2.37. 
5 World Bank (2005a), para. 3.99. 
6 Customs has developed the Conception of Risk Analysis and Management Systems in Customs 
Services of the EAEC since September 2004.   
7 World Bank (2005a), para. 3.99.  Some 75% of importers surveyed (down from 100% in 2002) stated 
that clearance exceeded on e day in 2005 (E BRD-World Bank Bu siness, 2002). 
8 World Bank (2005a), para. 3.99. The BEEPS also indicates that corruption and bribes to custom 
officers are common. WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 44 
 
 
for less well-established or less well-connected firms.9  Transit of goods through the Kyrgyz Republic 
is often hindered by time-cons uming convoy escort requirements.10   
14. Goods undergoing clearance may be stored in licensed temporary storage or bonded 
warehouses.11  Temporary storage warehouses may be either open (allowing storage of any goods by 
any entity) or closed (for goods requiring special  storage conditions or from certain entities).  
Temporary storage cannot exceed two months (ten  days for perishables).  Bonded warehouses may 
also be either open or closed, and allow storage fo r up to three years (60 days for goods with limited 
shelf life).  Eligible exports re-imported within three years are exempt from duties, subject to 
repayment of internal taxes. 
15. Smuggling, especially along the Kazakh and Uz bek borders, concerns mainly fuel and 
lubricants (petrol and diesel), alcoholic bevera ges (vodka, spirits, and beer), consumer goods, 
foodstuffs (flour, wheat, cotton seeds, fruit, and vegetables), construction materials, fertilizers, and agri-chemicals.
12  A comprehensive action plan to tackle smuggling was adopted in 2004 
(Government Resolution on Comprehensive Action Plan on Prevention of Illegal Importation and 
Trade of Goods, No. 726, September 2004).  A na tional Headquarters on Prevention of Illegal 
Importation and Trade was established, consisting of representatives from all law enforcement and 
supervising agencies concerned (Association of O il Traders, State Liquor Inspectorate, Kyrgyz 
Tobacco Company, and the Departments of Medicine Procurement and Precious Metals). 
(ii) Tariffs  
16. According to the authorities, Kyrgyz tariff policy is aimed at developing exports, protecting 
domestic producers, implementing WTO obligations, and implementing the EAEC common external 
tariff.  The Government sets tariff rates, through legislation for each calendar year;  they are approved 
by parliament.  These rates cannot be changed dur ing the year (Law on Customs Tariff for Imported 
Goods).13  The Ministry of Industry, Trade and Tourism drafts tariff rates for government approval 
based on consultations with other ministries and agencies, and on proposals from interested parties.   
17. The Kyrgyz Republic's tariff obligations under the  WTO Ministerial Declaration on Trade in 
Information Technology Products (ITA) we re included in its accession commitments.14  The 
authorities indicate that it has fully met these obligations.  The Kyrgyz Republic has submitted 
applied tariff schedules to the WTO Integrated data Base (IDB);  the latest was for 2003.15  
18. Tariff revenue has been a relatively minor source of government tax receipts for some time.  
Currently, it accounts for about 3%, down from 6% in 1995 when the tariff was a uniform 10%.  This 
                                                      
9 The Kyrgyz Republic was ranked 150th out of 155 in the category "trading across borders" in 2005, 
reflecting an average of 18 documents, 27 approvals, and 127 compliance days required to import goods 
(Doingbusiness .  Available at:  http://www.doingbusiness.org).     
10 World Bank (2005a), para. 3.99.  According to the Kyrgyz authorities, such escorts do not apply to 
goods secured by a pledge over other goods or property, bank guarantee, cash deposit, surety or insurance 
contract. 
11 There are currently five licensed temporary storage warehouses and five licensed bonded 
warehouses. 
12 World Bank (2005a), para. 3.99.  The main smuggled goods, alcohol and gasoline, are each 
estimated to cost annually Som 4 billion in lost reve nue.  Total annual revenue forgone through smuggling has 
been estimated at Som 15 billion (ADB).    
13 The previous year's rates apply until the legislation is passed, normally in March of each year;  the 
latest legislation was adopted on 29 March 2006. 
14 WTO document G/IT/1/Rev.36, 3 October 2005. 
15 WTO document G/MA/IDB/2/Rev.22, 26 September 2005. Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 45 
 
 
largely reflects the importance of domestic commod ity taxes, especially VAT (accounting for 49%),  
excise tax (9%), and income, mainly company, tax (17%).  
(a) Structure 19. The Kyrgyz Republic adopted the Harmonize d Commodity Description and Coding System 
(HS96) in 1997.
16  HS02 (9-digit) was adopted in 2003.  Since May 2003, it has applied the 10-digit 
Goods Nomenclature of Foreign Trade (TN VED) a dopted by EAEC members, which is the 10-digit 
classification used by the Russian Federation, a nd is seemingly HS compliant.  This increased the 
number of lines from 10,614 to 11,099 (11,127 in 2006).   The first six digits are the common HS 
coding, and the last four are national sub-divisions.  
20. The Customs Tariff Law specifies most-favoured -nation (MFN) applied rates.  Non-MFN 
rates, set at double the MFN duties or 10% in the case of zero, apply to countries with which "trade 
and political relations do not envisage MFN treatment" (Article 10).  In practice, this covers only 
non-WTO  members.  Non-MFN rates also apply to imports of unknown origin.  Preferential rates of 
zero are specified for goods originating from CIS states, in accordance with the CIF FTA, and from 
government-approved least developed countries that use the EAEC system of preferences (Article 8).  
Tariff legislation allows for ad valorem , specific or composite rates (Article 4), and seasonal duties 
(Article 5).  "Specific types" of duties (continge ncy measures) may protect Kyrgyz economic interests 
following investigations in accordance with relevant legislation (Article 6).   
21. The MFN tariff structure has been ra tionalized significantly since 1999.17  The number of 
ad valorem  rate bands fell from twelve in 1999 to six (5%, 10%, 12%, 15%, 20%, and 30%) in 
2006.18  The modal MFN tariff rate of 10% in 2006  covered 34% of tariff items (51% in 1999) 
(Chart III.1).  Some 46% of tariff lines are duty fr ee (12% in 1999), while 6% have rates of 12% or 
15% (7% in 1999).  The coverage of rates of 5% or  below thus rose to 59% of tariff lines in 2006 
(34% in 1999), mainly reflecting a higher share of duty-free items and a lower share with a 10% rate.  
The share exceeding 15% also fell from 5% in 1999 to  negligible levels, wi th only certain refined 
sugar (20% and 30%) above  this rate in 2006.  
22. Non- ad valorem  tariff rates apply to only 1.3% of tariff lines.  These take the form of a few 
specific duties (11 tariff items) and mainly alternat e duties (139 tariff items) on alcoholic beverages. 
As a 10% ad valorem  duty is applicable only if below the specific alternate component, these duties 
can provide higher protection.19  Specific-type duties provide domestic producers more protection 
against lower priced products and from falling impor t prices.  Expressing duties in U.S. dollars also 
helps insulate them from greater import competition if the som appreciates. 
23. No seasonal duties currently apply.  A seasonal duty was introduced for white sugar in 2001 
and removed in 2006.  From 2003, rates were 15%  ("out-of-season" duty) from September to end-
February and either 30% or 20% for th e rest of the year ("in-season" duty).20  In 2006, a uniform tariff 
of 30% or 20% was introduced throughout the year .  While the tariff schedule also contains seasonal 
                                                      
16 The Kyrgyz Republic has applied the HS without accepting the Harmonized System Convention.  
17 A uniform tariff of 10% was applied until WTO acce ssion, when several rate bands were added due 
partly to protectionist pressures to raise rates on final goods (World Bank, 2005b).  This probably increased 
disparities and thus may have made the tariff structure more distorting. 
18 In 1999, the bands were 1%, 5%, 7%, 8%, 10%, 12% (one item), 15%, 17.5%, 20%, 25%, 30% and 
50%.   
19 The alternative specific duty per litre is:  US$0 .15 (on 52 items), US$0.25 (2 items), US$0.45 
(35 items), and US$0.55 (50 items). 
20 In 2001 and 2002, the rates were 20% from April to 28 October and 10% for the rest of the year.   WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 46 
 
 
lines for a number of products (tomatoes, cucumber s, artichokes, oranges, mandarins, grapefruit, 
apples, and certain sugar), in all cases the same ra tes apply throughout the year.  MFN seasonal duties 
are also used occasionally to protect domestic pr oducers temporarily.  A seas onal additional tariff of 
20% was applied on wheat from Se ptember to end-November 2002, a nd on flour from August 2002 to 
end-April 2003;  both had a zero tariff at that time.   Seasonal duties cannot operate for more than six 
months within a year.  No tempor ary seasonal tariffs currently apply. 
(6.1%) 
(0.7%)(6.7%)(52.0%)
(22.4%)
(11.9)
 (0.0%)  (0.0%) (5.7%)(35.2%) 
 (12.8%) (46.1%) 
05001,0001,5002,0002,5003,0003,5004,0004,5005,0005,500
Duty free >0-5 >5-10 >10-15 >15-20 >20
Figures in parentheses denote the share of total lines.   These do not add to 100% as ta riff rates were unavailable for 
0.1% of tariff lines in both years.  Calculations include the ad valorem component of alternate duties but exclude s pecific 
rates.   The 1999 tariff is based on 9-digit HS96 nomenclature and the 2006 tariff on 10-digit HS02 nomenclature.Number of tariff linesChart III.1
Distribution of MFN tariff rates, 1999 and 2006
Tariff rates (%)
Note:MFN 1999
MFN 2006
Source :   WTO Secretariat calculations, based on data provided by the Kyrgyz authorities.
 
(b) Bound MFN rates 
24. The Kyrgyz Republic has bound 99.9% of tariff lines since 1999, and final bound rates were 
implemented in 2005.21  The average bound rate in 2005 and 2006 was 7.7%, well above the average 
applied rate of 4.9% (Table III.1).  The average (WTO definition) for agriculture, at 12.2%, exceeded 
the applied rate of 8.1%, and the average for i ndustrial products of 6.5%  was above the applied 
average of 4.1%.  In principle, this provides the Kyrgyz Republic with some latitude to raise tariffs 
within existing bindings across all HS sections, but pa rticularly in "vegetable products", "mineral 
products", "plastic and rubber", "hides and skins" , "arms and ammunition", and "works of art" 
(Chart III.2).  Final bound rates were mainly 10 % (45% of tariff lines), 0% (20%) and 5% (11%).22  In  
                                                      
21 The few remaining unbound tariff  items include aluminous cement (HS code 2523.3000.00), life 
jackets (6307.2000.00), certain tungsten (wolfram) powd ers (8101.1000.00), spark-i gnition reciprocating or 
rotary internal combustion piston engines used in pedestrian-controlled tractors and certain motor vehicles 
(8407.3410.00), parts of transmission shafts and cranks, bearing housings and plain shaft bearings used in civil 
aircraft (8483.9010.00), and motor vehicles for transport of highly radioactive materials (8704.2310.00).    
22 Other bound rates are 5.5%, 6.5%, 7%, 8%, 12%, 15%, 20%, and 30%.  Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 47 
 
 
2006, applied tariff rates exceeded bound levels on at least 33 items, some by as much as 
10 percentage points.23  The Kyrgyz authorities indicate that th ese inconsistencies will be eliminated.  
Binding a number of items that have ad valorem  applied rates with non- ad valorem  duties reduces the 
transparency of tariff bindings.24 
Table III.1 
Structure of the MFN tariff, 1999 and 2002-06 
(Per cent) 
   1999 2002 2003 2004 2005 2006 
 Bound tariffa       
1. Bound tariff lines (% of all tariff lines) 99.9 99.9 99.9 99.9 99.9 99.9 
2. Simple average bound rate .. .. .. .. 7.7 7.7 
 Agricultural products (HS01-24) .. .. .. .. 12.1 12.1 
 Industrial products (HS25-97) .. .. .. .. 6.4 6.4 
 WTO agricultural products .. .. .. .. 12.2 12.2 
 WTO non-agricultural products .. .. .. .. 6.5 6.5 
 Textiles and clothing .. .. .. .. 9.6 9.6 
3. Tariff quotas (% of tariff lines) .. .. .. .. n.a. n.a. 
4. Duty-free tariff lines (% of tariff lines) .. .. .. .. 20.2 20.2 
5. Non- ad valorem  tariffs (% of tariff lines) .. .. .. .. 1.8 1.8 
6. Non- ad valorem  tariffs with no AVEs (% of tariff lines) .. .. .. .. 1.8 1.8 
7. Nuisance bound rates (% of tariff lines)b .. .. .. .. n.a. n.a. 
 Applied tariff       
8. Simple average applied rate 8.7 5.2 5.4 5.2 5.2 4.9 
 Agricultural products (HS01-24) 10.0 8.4 8.9 8.9 8.9 8.9 
 Industrial products (HS25-97) 8.3 4.2 4.4 4.2 4.2 3.8 
 WTO agricultural products 9.7 7.7 8.1 8.1 8.1 8.1 
 WTO non-agricultural products 8.4 4.5 4.7 4.5 4.5 4.1 
 Textiles and clothing 12. 5 9.7 8.9 8. 4 8.1 8.1 
9. Domestic tariff "peaks" (% of all tariff lines)c 0.6 4.9 - - - 2.7 
10. International tariff "peaks" (% of all tariff lines)d 6.9 4.9 - - - - 
11. Overall standard deviation of tariff rates 5.2 5.7 5.1 4.9 4.9 5.0 
12. Coefficient of variation of ta riff rates 0.6 1.1 0.9 0.9 0.9 1.0 
13. Tariff quotas (% of all tariff lines) n.a. n.a. n.a. n.a. n.a. n.a. 
14. Duty-free tariff lines (% of all tariff lines) 11.9 51.5 42.1 42.7 43.0 46.1 
15. Non- ad valorem  tariffs (% of all tariff lines) 1.5 1.5 1.4 1.4 1.4 1.3 
Table III.1 (cont'd) 
                                                      
23 Tariff lines 0409.0000.00 (natural honey) have respective applied and bound rates of 10% and 8%;  
1509.1010.00, 1509.1090.00 and 1509.9000.00 have respective rates of 10% and 5%;  2007.9931.00, 
2007.9933.00, 2007.9935.00, 2007.9939.00, 2007.9955.0 0, 2007.9958.00, 2007.9991.00 and 2007.9998.00 have 
respective rates of 15% and 10%;  6102.9010.00, 6102.9090.00, 6204.1910.00, 620 4.1990.00, 6210.2000.00 and 
6210.4000.00 have respective rates of 12% and 10%;  8502.3110.00, 8507.1081.01, 8507.1081.09, 8507.1089.00 have respective rates of 10% and 5%;  and 7315.1190.00, 8425.1910.00, 8425.1991.00, 
8425.1999.00, 8433.1990.00, 8462.2905.00, 8472.0903 0.00, 8518.1020.00, 8518.3020.00, 8527.9092.00 and 
8543.8915.00 have respective rates of 10% and 0%.  It is unclear for some other tariff items where the bound duty is non- ad valorem  and the applied rate ad valorem , such as for 2204.3000.00 (other grape must), which has 
a bound specific rate of US$0.8 per litre and an applied rate of 5%.   
24 The share of tariff items with non- ad valorem  bindings of 1.8% exceeds the share subject to applied 
non-ad valorem  duties of 1.3%.  WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 48 
 
 
   1999 2002 2003 2004 2005 2006 
16. Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 1.5 1.5 1.4 1.4 1.4 1.3 
17. Nuisance applied rates (% of all tariff lines)b - n.a. n.a. n.a. n.a. n.a. 
- Negligible.  
n.a. Not applicable. 
.. Not available. 
a Final bound rates were implemented in 2005. 
b Nuisance tariffs are rates of 2% or below. 
c Domestic tariff peaks are defined as those exceeding three ti mes the overall simple average applied rate (indicator 8). 
d International tariff peaks are defined as those exceeding 15%. 
Note: Tariff schedules for 1999 and 2002 are based on HS96 nomenclature;  schedules for 2003 to 2006 are based on 
HS02 nomenclature. 
 1999, 2002 and 2003 are based on 9-digit HS codes;  2004, 2005 and 2006 are based on 10-digit HS codes. 
 Calculations include the ad valorem  component of alternate rates but exclude specific duties. 
Source:  WTO Secretariat calculations , based on data provided by the Kyrgyz authorities. 
 
0246810121416
01 0203 04 05 0607 08 09 10 1112 13 14 1516 17 18 192021Chart III.2
Applied MFN and final bound tariff averages by HS section, 2006
Per cent
Source :   WTO Secretariat calculations, based on data provided by the Kyrgyz authorities.Bound 
Applied MFN
01 Live animals and prod.        
02 Vegetable products
03 Fats and oils      
04 Prepared food, etc.
05 Mineral products06 Chemicals and prod.07 Plastic and rubber
08 Hides and skins
09 Wood and articles
10 Pulp, paper, etc.
11 Textiles and articles12 Footwear, headgear13 Articles of stones
14 Precious stones, etc.
15 Base metals and prod.
16 Machinery
17 Transport equipment18 Precision instruments19 Arms and ammunition
20 Miscellaneous manuf.
21 Works of art, etc.
Note:      Calculations include the ad valorem  component of alternate rates but exclude specific rates.  A few tariff 
                lines covering HS Sections 05, 11, 15, 16, and 17 are not bound.Overall applied MFN  
average 2006
(4.9%)Overall final bound 
average 2006
(7.7%)
 
 Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 49 
 
 
(c) Applied MFN rates 
25. In 2006, the average (unweighted) applied tariff rate was 4.9%, down from 8.7% in 1999 
(Tables III.1 and AIII.1).  In 2006, 47% of rates were below 1999 levels (mainly falling from 15%, 
10%, and 5% to zero) and 52% were unchanged (based on preliminary estimates by the WTO 
Secretariat).  Rates therefore rose on only a handfu l of items between 1999 and 2006, with increases 
of 5 percentage points on a few products, such as white  sugar, and of 10 percentage points, such as on 
husked rice.  Thus, between 1999 and 2006 average tari ffs fell across almost all HS sections:  they 
rose from 8.7% to 9.8% for fats and oils and remain ed constant at 9.1% for footwear & headgear, and 
10% for precious stones, etc. (Chart III.3).  Averag e tariffs fell proportionately  in wood and articles, 
pulp and paper, arms and ammunition, works of art,  basic metals and products, hides and skins, and 
miscellaneous manufacturing.  During the period, duties rose on several products, especially in 2003 
when the average tariff rate rose to 5.4%.  In 2006 , rates increased on 0.5% of tariff items and fell on 
3.4% of lines, compared with 2005. 
 
051015202530
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 1617 18 19 20 21Chart III.3
Applied MFN tariff averages by HS section, 1999 and 2006
Per cent
Source :   WTO Secretariat calculations, based on data provided by the Kyrgyz authorities.1999
2006
01 Live animals and prod.        
02 Vegetable products03 Fats and oils      04 Prepared food, etc.
05 Mineral products
06 Chemicals and prod.07 Plastic and rubber
08 Hides and skins09 Wood and articles10 Pulp, paper, etc.
11 Textiles and articles
12 Footwear, headgear13 Articles of stones
14 Precious stones, etc.15 Base metals and prod.16 Machinery
17 Transport equipment
18 Precision instruments19 Arms and ammunition
20 Miscellaneous manuf.21 Works of art, etc.
Note:      Calculations include the ad valorem  component of alternate rates but exclude specific rates.Overall applied MFN  
average 2006
(4.9%)Overall applied MFN 
average 1999
(8.7%)
 
 WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 50 
 
 
26. Tariffs are generally higher on agricultural prod ucts than on industrial products, averaging 
8.1% and 4.1%, respectively, under the WTO definition in 2006.25   
(d) Escalation, ranges, and peaks 
27. Although tariffs range from zero to 30% in 2006, tariff dispersion and escalation is relatively 
low overall, with a standard deviation of 5 percenta ge points (Chart III.4 and Table AIII.2).  However, 
evidence suggests that tariff disparities may have ri sen slightly in 2006, with both the standard 
deviation and the coefficient of variation rising marginally from 2005 levels.  At the 2-digit ISIC 
industry level, tariff escalation is most pronounced in "textiles and leather" and "food, beverages and 
tobacco".  With almost all rates at 15% or below, domestic tariff peaks apply to only 2.7% of tariff 
lines, and international peaks are negligible. 
(e) Concessions 
28. The Customs Code, Tax Code, and annual Cust oms Tariff Law regulate tariff exemptions.  
The authorities state that there are no special provi sions granting tariff concessions for imports of non-
produced goods, by government or state-trad ing entities, or for particular end-uses.  
29. Exemptions under special customs arrangements cover imports to prevent or help in 
emergency situations, such as natural disasters; as part of humanitarian aid; and of scientific 
equipment used for geophysical expeditions.  Th ey also apply to specified temporary imports 
(Government Resolution On Approving the List of Temporarily Imported (Exported) Goods with Full 
Conditional Exemptions from Customs and Duties, No. 963, December 2004).  Partial exemptions 
apply on some other temporary imports, with 3% of the duty amount to be paid for each month or part 
thereof of importation.    
30. The average tariff collection rate of 2.8% in 2002 was substantially below the unweighted and 
import-weighted average tariff rates, suggesting that duties on a significant share of MFN imports 
were not collected;  this was largely due to exemptions.26  The Government's concern over the extent 
of concessional imports and possible non-collection of  duties led to a review of the customs duty and 
exemption system since 2002.  The new Customs Code has substantially restricted the use of tariff 
concessions, according to authorities, and is likely to have contributed to the increase in tariff revenue 
being collected. 
(f) Preferences 
31. Imports from CIS-member countries and designated least developed countries are tariff-free 
(Chapter II). 
(g) Tariff quotas  
32. The Kyrgyz Republic has no tariff quotas. 
 
                                                      
25 Under the HS definition, the averages are 8.9% and 3.8%, respectively. 
26 World Bank (2005a), p. 43. Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 51 
 
 
n.a.n.a.0.02.55.07.510.012.515.0
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishing Chemicals Non-metallic
mineral
products Basic metal Fabricated
metal
products and
machineryOtherChart III.4
Tariff escalation by 2-di git ISIC industry, 1999 and 2006
n.a.n.a.0.02.55.07.510.012.515.0
Food,
beverages
and tobaccoTextiles and
leatherWood and
furniturePaper,
printing and
publishingChemicals Non-metallic
mineral
products Basic metal Fabricated
metal
products and
machineryOtherAverage applied rate
 in manufacturing
(8.8%)
Not applicable.
Calculations include the ad valorem  component of alternate duties but exclude specific rates.
WTO Secretariat calculations, based on data provided by the Kyrgyz authorities.n.a.
Note:
Source :Per cent
First stage of processing Fully processed Semi-processedPer cent
Average applied rate 
in manufacturing
(4.9%)20061999
 WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 52 
 
 
(iii) Other charges affecting imports 
33. In addition to tariffs, imports attract VAT and excise taxes (Government Resolution on 
Instruction on Control Over Calculating and Ma king Customs Payments, No. 961, December 2004).  
These taxes apply equally to domestic and imported goods .  A customs fee of 0.15% of the c.i.f. value 
of the import (excluding VAT and excise where applicable)  is also levied to cover the costs of 
providing customs formalities (the fee is doubled for outside normal working hours or designated 
areas).  Although fees are, in principle, not to exceed the actual costs of providing the customs 
services, recovering costs by way of a percentage ad valorem  fee is likely to collect above costs on 
higher valued shipments.27  A customs fee equal to one minimum monthly wage per hour (Som 100) 
per transport vehicle is also charged when providing cu stoms escort.  It is claimed that due to customs 
inefficiencies, traders also make high unoffi cial payments to speed-up customs clearances.28 
34. All foreign road hauliers transporting goods to  or from the Kyrgyz Republic must obtain a 
special permit from the Ministry of Transp ort and Communications in accordance with 
intergovernmental agreements on international road communication.  This applies to hauliers of all 
countries, unless otherwise stipulated by intergovernmental agreements.29  Foreign hauliers who do 
not have special permits are charged a US$250 fee, unless otherwise stipulated by an 
intergovernmental agreement, and exce pt for those that use TIR carnets.30  Road transport providers 
must declare if they have over 400 litres of fuel , to prevent smuggling.  However, this places the 
additional burden on them of convincing Cust oms of the amount of fuel in their tanks. 
(a) Value-added tax 
35. The current VAT rate of 20% (10% for agricultural produce) applies to most goods and 
services, except mainly for financial, insurance, transport, postal, and public utility services, gold, 
approved pharmaceuticals, baby food, and goods cl assified as technological equipment to be used as 
part of an entity's "chartered capital" (estimated  to have cost Som 192 million or US$4.6 million in 
revenue forgone in 2005).31  As from 2006, imports of fixed assets by taxable entities used in their 
economic activities are VAT exempt.  Imports, in cluding from CIS states, are levied VAT as for 
domestic goods.  The tax base for imports is the dut y-paid c.i.f. price plus excise taxes where 
applicable. 
36. Tax credits are provided for VAT paid on inputs, including in manufacturing exports.32 
However, although the legislation stipulates refund of tax credits for expor ters and other regular 
producers of zero-rated products within 30 days from ma king the claim, this is alleged not to occur in 
practice.33  The VAT exemption on imported capital inputs was eliminated in 2002. 
(b) Excise tax 
37. Excise taxes are levied on goods considered  damaging to people's health (alcoholic 
beverages) or the environment (certain fur skin s and articles thereof, excluding sheep and cattle), 
                                                      
27 The SCI has formed a Working Group to examine this issue. 
28 World Bank (2005a), para. 2.37. 
29 The Kyrgyz Republic has signed 15 agreements regulating international road communication. 
30 The fee is not collected at th e border but during customs clearan ce of the goods.  The Kyrgyz 
authorities indicate that this fee is based on the same f ee applied by Kazakhstan.  Iranian hauliers are charged 
US$1,000. 
31 These cover a wide range of goods, including tyres, machinery, sound equipment, and motor 
vehicles.  The VAT was extended to processed agricultural products in 2003.   
32 Unless the final goods or services are exempt fr om VAT.  Exports are zero-rated (except for gold, 
which is VAT-exempt) and hence eligible for tax credits for VAT paid on inputs.  
33 World Bank (2005a), para. 2.53. Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 53 
 
 
petroleum products, and a few luxury items (annual La w on Rates of Excise Tax for Excisable Goods 
Imported and Produced by Legal Entities).  Ta x rates are specific, except for certain ad valorem  rates 
that apply on the manufacturer's selling price or (if im ported) the customs value (duty-paid c.i.f. price) 
for jewellery (25%), fur skins and articles thereof (5%), leather products (5%) , crystal ware (20%), 
firearms (20%), carpets, except half-woolle n ones (10%), and coffee and cocoa (5%).34  Excise tax is 
levied on imports, including from CIS states, as for domestic goods.  Exports are exempt from excise 
taxes.   
38. While excise tax is not levied on exports, th e Kyrgyz Republic and other CIS countries taxed 
exports to each other.  However, upon WTO accessi on, the Kyrgyz Republic committed to apply the 
destination principle to CIS exports on a recipro cal basis from 1999.  All excisable exported goods are 
excise-exempt regardless of the destination country. 
39. Domestic and imported goods are taxed equally.  However, the incidence of excise on 
tobacco products may be heavier on imports and fo reign-brand cigarettes made domestically, as rates 
rise with retail prices;  this may penalize the more expensive products.35 
(iv) Customs valuation, minimum import prices, and preshipment inspection 
40. The Kyrgyz Republic uses the c.i.f. import pr ice for customs valuation, including, in 
principle, for second-hand goods (Cus toms Code and Government Reso lution, Instruction on Methods 
for Determining Customs Value of Goods Imported, No. 961, December 2004).  According to the authorities, the Code complies fully with the WT O Customs Valuation Agreement.  The primary 
customs valuation method is the transaction value, i.e. the price actually paid or payable for the import 
when sold for export.  If the importer's declared va lue is considered suspect and cannot be justified, 
Customs may apply sequentially the transaction valu e of identical or similar goods, the "deductive 
value" method, the "computed value" method, or the "reserve" method.
36  Customs maintains a prices 
database to assist import valuation.   Appeals on valuation or other cu stoms decisions can be made to a 
superior body or to the courts within 20 days, and are to be concluded within 20 days (Code on 
Administrative Liability).  Since 1998, there have been 200 appeals (47 successful) against customs 
decisions.  
41. The Kyrgyz Republic implemented the Decisions of the WTO Committee on Customs 
Valuation on Valuation of Carrier Media Beari ng Software for Data Processing Equipment and on 
Treatment of Interest Charg es in the Customs Value of Imported Goods from 3 September 1998.37 
42. As the use of minimum customs values is pr ohibited, the Kyrgyz Republic does not apply 
minimum import or reference prices.38  Preshipment inspection is not used.39  
(v) Rules of origin 
43. The Kyrgyz Republic does not maintain non-preferential rules of origin. 
                                                      
34 Excise rates are:  Som 2, 6, 15, 21, 22, and 27 per litre on alcoholic beverages;  and Som 200, 600, 
800 and 1,400 per tonne on petroleum products. 
35 Excise rates rise from Som 10 per 1,000 sticks for non-filter cigarettes to Som 25 for cigarettes 
retailing up to Som 10 per packet;  Som 70 for those priced from Som 10 to 16;  Som 170 for those retailing 
from Som 16 to 24;  and Som 270 for those priced above Som 24 per packet.  
36 The importer may opt to apply the "computed value" method before the "deductive value" method. 
37 WTO document G/VAL/N/3/KGZ/1, 5 April 2000. 
38 However, for second-hand motor vehicles a valua tion guide is used by customs to check declared 
values, and these book values are reportedly substituted for the transaction value if higher. 
39 WTO document G/PSI/N/1/Add.9, 21 March 2001. WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 54 
 
 
44. Preferential rules of origin apply in the Kyrgyz Republic's various trade agreements 
(Chapter II).  They involve mainly preferential im ports from CIS-member states, and were revised in 
2000 (Rules for Determining Country of Origin of Goods Approved by Decision of Council of Heads 
of CIS Governments, 2000) under the CIS-FTA and notified to the WTO.40  Goods wholly obtained, 
including minerals, vegetables, and animals and thei r products are considered originating products.  
Substantial processing or transformation is determined  by change in tariff heading at the 4-digit HS 
level.  However, for a wide range of specified  goods, special processing or manufacturing conditions, 
including technological requirements, must meet or igin rules, including, in some cases, limiting the 
share of imported eligible materials used in prod uction (the limit is usually 50% but may be as low as 
20% of the product's ex-works price).  Cumulative provisions apply.  The "direct purchase and 
supply" rules require that imports arrive directly from CIS states and are not transported outside the 
region unless under special circumstances.   
45. CIS-FTA rules also apply under Kyrgyz bilatera l FTAs with selected CIS states, and among 
EAEC participants.  They also apply under prefer ential tariff arrangements extended to imports from 
least developed countries.41 
46. In general, the change in 4-digit tariff classifi cation criterion will apply to preferential imports 
if origin rules are non-specific. 
(vi) Import prohibitions and sanctions 
47. Imports of narcotics and pornography as well as certain goods under international 
conventions are prohibited to protect human health or the environment.  In November 2004, imports 
of outdated and used articles of equipment cont aining ozone-depleting substances were banned (in 
accordance with the Montreal Protocol on Substan ces that Deplete the Ozone Layer).  Imports of 
specified pesticides and chemicals are also prohi bited, since July 2001 (Rotterdam Convention).  
Another six chemicals are banned, and six more that are currently licensed are to be prohibited (Stockholm Convention on Persistent Organic Pollutants).
42 
48. The Kyrgyz Republic does not have any import embargoes or sanctions.  
(vii) Import quotas and licensing 
49. Spirits and alcoholic bevera ges (including wine and beer) from non-WTO members are 
subject to import quotas (Regulation on Procedure for Quoting of Alcohol Products and Beer, 
No. 227, April 2004).  The authorities indicate that these volume quotas are set annually at the average of imports during the previous three years to meet import demand, and are therefore 
non-restrictive;  they are also revised quarterly to reflect demand and local production trends.  The 
State Inspection for Control Over Production, St orage, and Sales of Spirit and Alcohol Products 
(SIAP) has determined quotas (except for imports of  cognac spirit and wine materials designated for 
production of cognac and champagne) since 2001 when this authority was transferred from the state 
enterprise, Kyrgyzalko (Government Resolution No. 260, 31 May 2001).   These quotas are set based 
on importers' applications, product dema nd, and domestic production levels.   Import quotas are 
                                                     
 
40 WTO document G/RO/N/39, 22 April 2003. 
41 If the Kyrgyz Republic joins PRETAS among OIC members it will need to adopt its preferential 
rules of origin, which base substantial transformation on  either value-added criterion (minimum 40% domestic 
value added or 30% for least developed me mbers) or on sectoral arrangements.  
42 The banned chemicals are:  aldrin, chlordane, dichlorodiphwnyl trichloroethane, dieldrin, heptachlor, 
and hexachlorobenzene.  Chemicals to be prohibited include endrin, mirex, toxaphene, polychlorinated biphenyls, and dibenzofuran.   Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 55 
 
 
allocated by the Competition Commission (formed by the SIAP).   In allocating quotas, preference is 
given to beverages not produced domestically or of  inferior quality or lower price, those made from 
natural raw materials, and to importers having direct  contracts with foreign producers or investing in 
the Kyrgyz economy and imposing no debt on the national budget.    
50. Quotas on light medium distillates, other types of raw materials and components for 
production of oil products were replaced in No vember 2002 by licensing arrangements that permit 
imports by certain approved firms (Gover nment Regulation No. 783, 18 November 2002).   The 
eligible importers and respective quotas are:  Kyrgyz Petroleum Company (250,000 tonnes);  Vostok (160,180 tonnes);  Kara-Archa Ltd. (66,000 tonnes);  Kyrgyz-Russian JV Ltd. (60,000 tonnes);  TNK 
Nurneftegaz Ltd. (50,000 tonnes);  Tyan-Shan Oil Concern Ltd. (12,000 tonnes);  Bazaltpromservis 
Ltd. (10,000 tonnes);  and R-Dolon JSC (60,480 tonnes).
43  These enterprises import under general 
conditions without additional preferences.   
51. Imports of certain goods require a licence to pr otect human health and safety, consumer and 
ecological welfare, national security, national tr easures and exhaustible natural resources (Jogorku 
Kenesh Resolution, No. 1101-1, June 1998).  Licensed  goods are contained in the List of Specific 
Goods Imported under Licence Contained in the Re gulation on Import Licensing (Table III.2).  
Licensing applies to all countries and according to aut horities is not intended to restrict import levels.  
There is no penalty for under-utilizing a licence, a nd applications must be  supported by an import 
contract.  Licences must be processed within 30 da ys, but usually take at most one week, less if 
urgent.  The Ministry of Industry, Trade and Tourism issues licences subject to the importer obtaining 
approval from the licensing authority if this is a di fferent ministry.  No deposit or advance payment 
requirements apply, and licences are condition-free but generally non-transferable.  Refusal to grant a 
licence can be appealed to the courts.44  Foreigners are eligible for lic ences in the same way as Kyrgyz 
firms or citizens.  As of 2005, about 9% of total imports are licensed. 
52. There are two types of import (export) licences.  "Single" licences are issued on a transaction 
basis while "general" licences apply for a period of up to one year.  According to the authorities, 
import licences on precious metals and stones, t obacco, and alcoholic beverages are granted 
"automatically" unless the application is incomplete, unre liable or fails to meet the stipulated criteria.  
This is not the case for other licensed goods, cove ring mainly arms, military equipment, explosive 
substances, nuclear materials and technologies, poisons, narcotics, pharmaceuticals and hazardous 
waste (in conformity with the Basel Convention,  adopted by the Kyrgyz Republic in 1996).   
53. Kyrgyztamekisi remains responsible, in principle, for licensing imports (and exports) of 
tobacco leaf and products, due to an inconsistency in legislation.45  However, according to the Kyrgyz 
authorities, in practice , there is no licence required to import tobacco. 
54. The new draft law on licensing (Article 26) introduces the notion of  automatic and non-
automatic import licensing.  The authorities also i ndicate that it contains the major WTO provisions 
on licensing, such as predictability and clear licensing  procedures, protection of importers' and foreign 
suppliers' interests, and mandatory  publication of information related to import licenses.  Automatic 
licences are to be issued by the authorities without di scretion, and within three days from application.  
Non-automatic licences will operate on imports (exports ) where quotas exist, to protect human health 
                                                      
43 Government Resolution, List of Economic Entities Permitted to Import Light and Medium 
Distillates, Other Types of Raw Materials and Compone nts for Production of Oil Products, 1 January 2006 
 44 Other licensing bodies include the Ministries of Defence, Economy and Finance, and Health, and the 
State Commission for Drug Control. 
45 While such licences were cancelled in January 2001, Kyrgyztamekisi and tobacco products were not 
removed from the list of imported goods subject to licensing.  WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 56 
 
 
and safety as well as national security, or to grant exclusive (monopoly) trading rights over certain 
goods.  Decisions on such licences are to be made wi thin 30 days from application when they are to 
be issued on a "first come first served" basis, or 60 days if applications are to be processed simultaneously. 
Table III.2 
Goods subject to import licensing, 2005 
Goods HS codes Licensing body Rationale/justification 
Ciphering devices (including 
ciphering equipment, spare parts, ciphering programs), normative 
and technical documents for the 
ciphering devices (including designing and exploiting) 8471 (ciphering equipment only), 
8473.3000.0 (for the ciphering equipment only), 8543.8090.0 
(ciphering equipment only), 
8543.9090.0 (ciphering equipment only) Ministry of Industry, Trade 
and Tourism National security 
Arms and weapons, specific parts 
for their production, works and 
services in the area of military- 
technological cooperation List of the Ministry of Defence  Ministry of Industry, Trade 
and Tourism  National security 
Means of protection from 
warfare agents, components and 
accessories List of the Ministry of Defence  Ministry of Industry, Trade 
and Tourism  National security 
Military uniform, clothing and 
attributes  List of the Ministry of Defence Ministry of Industry, Trade 
and Tourism  National security 
Normative and technical 
documents for military products 
(construction and exploitation) List of the Ministry of Defence Ministry of Industry, Trade 
and Tourism  National security 
Gunpowder and explosives, 
explosive devices, and 
pyrotechnics 3601 (except for hunting powder), 
3602, 3603, 3604 Ministry of Internal Affairs National security 
Nuclear materials,  technologies, 
equipment, and plant, special 
non-nuclear material s, sources of 
radiation, including radioactive waste List approved by the President 
(Government Resolution No. 55, 
2 June 1996) Ministry of Defence National security, and international 
commitments related to 
non-proliferation of mass 
destruction and production technologies thereof 
Materials, equipment, and 
technologies intended for 
peaceful purposes but that can be 
used in creating weapons of mass 
extermination List approved by the President 
(Government Resolution No. 55, 
2 June 1996) Ministry of Industry, Trade 
and Tourism  National security, and international 
commitments related to 
non-proliferation of mass destruction and production 
technologies thereof 
Certain types of raw materials, equipment, technologies and 
scientific information that can be 
applied in creating weapons and 
military techniques List approved by the President 
(Government Resolution No. 55, 
2 June 1996) Ministry of Industry, Trade 
and Tourism  National security, and international 
commitments related to 
non-proliferation of mass 
destruction and production 
technologies thereof 
Precious metals, alloys, goods made from them, metals plated 
with precious metals and goods 
made from them; ores; concentrates; scrap and waste 2616 (ores and concentrates), 2843 
(metals, junctions, amalgams), 
3006.4000.0 (from precious metals 
only), 7106-7112, 7113.1100.0, 7113.1900.0, 7114.1100.0, 7114.1900.0, 7115.1010.0, 
7115.9010.0, 7115.9090.0, 7118 
(from precious metals only), 8544 (only with conductors from 
precious metals), 9608.1030.0, 
9608.3910.0  Ministry of Industry, Trade 
and Tourism  To protect national treasures of 
artistic, historic or archaeological 
value;  to conserve exhaustible 
natural resources 
Precious natural stones and goods made from them, powder 
and recuperate of precious 
natural stones and goods made from them 7101, 7102, 7103 (precious stones 
only), 7105 (from precious stones 
only), 7116 (from precious stones 
only).  Ministry of Industry, Trade 
and Tourism  To protect national treasures of 
artistic, historic or archaeological 
value;  to conserve exhaustible 
natural resources. 
Table III.2 (cont'd)Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 57 
 
 
Goods HS codes Licensing body Rationale/justification 
Narcotics and psychotropic 
drugs, highly toxic and 
intoxicative agents, precursors List of the State Commission for 
Drug Control State Commission for Drug 
Control Population's health and welfare 
Highly toxic poisons List approved by the Government 
(Government Resolution No.  55,  
6 February 1996) .. Population's health and welfare, 
and flora and fauna in general 
Hazardous wastes List of the Basil C onvention on 
the Control over Trans-border 
Transportation of Hazardous 
Cargo of 22 March 1989 (Parliament Resolution No. 304-1, 
18 January 1996) .. Population's health and welfare, 
and flora and fauna in general 
Chemical means of protection of 
plants 3808 (preparations for the plant 
protection only) .. Population's health and welfare, 
and flora and fauna in general 
Pharmaceuticals List of the Minist ry of Health Care  Ministry of Health Care Population's life 
Service and civil guns List of the Ministry of Internal 
Affairs Ministry of Industry, Trade 
and Tourism  Public order 
Tobacco List of Kyrgyztamekisi 2401, 2402, 
2403 State joint stock company  
Kyrgyztamekisi  Population's health  
Spirits and alcoholic products Li st of Kyrgyzalco 2204,  2205, 
2206, 2207, 2208, 2208.40, 
2208.50, 2208.60, 2208.70, 2208.90 State joint stock company 
Kyrgyzalco  Public order and the population's 
health 
.. Not available. 
Source:  Kyrgyz authorities.  
(viii) Contingency measures 
55. The Customs Tariff Law permits anti-dumping,  countervailing and safeguard duties in 
accordance with respective legislation (separate Laws on Anti-dumping, Countervailing and Safeguards, October 1996).  Each law ensures WTO compliance by specifying that the rules of an 
international treaty ratified by the Kyrgyz Republic will apply if inconsistent.  Kyrgyz has applied no 
anti-dumping, safeguard or countervailin g measures, including on CIS imports. 
56. Injury is non-defined in the anti-dumping legi slation;  it is defined for countervailing as 
(financial) losses caused or threatened by subsidized im ports.  It is to be determined by investigations 
based on evidence including import levels, quality a nd impact on domestic prices and production to 
demonstrate a causal relationship.
46  The MITT is responsible for conducting anti-dumping and 
countervailing investigations.  Al ong with the Finance Ministry, it is jointly responsible for 
implementing anti-dumping measures consistent w ith international obligations.  Provisional 
countervailing and anti-dumping duties, including cash  deposits, may be imposed for up to nine 
months.  Anti-dumping duties cannot exceed the dumping margin.  Voluntary price undertakings are allowed in anti-dumping and countervailing cases.  Government decisions to apply anti-dumping 
duties, but not countervailing measures, must be approved by Parliament.  These decisions can be 
appealed to the courts.  The maximum durati on of anti-dumping and countervailing measures is 
five years but they can be extended if another i nvestigation finds that the injury persists.   
                                                     
 
46 Government Resolution on Conduct of Anti-dumping Investigation and Investigation to Determine 
Subsidies Subject to Compensation No. 14, January 2001. WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 58 
 
 
57. Safeguards can be taken against imports causing or threatening "serious" injury to domestic 
producers as determined by investigations.47  Safeguards are to be applied on an MFN basis, including 
to CIS imports, and can include special customs duties and import quotas;  arbitrary restrictions of supplies, agreements on market regulation, regula tion of sales, introduction of price monitoring or 
other similar measures are specifically prohibited.  Temporary safeguards are allowed.  The MITT is 
responsible for conducting the investigation and a pplying safeguards.  Government decisions on 
safeguards do not require parliamentary approval.  The duration of safeguards (including provisional 
measures) is not to exceed four years, but can be extended to ten years if subsequent investigations 
establish that injury persists.  As this exceeds the maximum of eight years permitted in the WTO 
rules, in practice, the ten-year period would only apply to imports from non-WTO members.    
58. At the start of anti-dumping, countervailing,  and safeguard investigations, the National 
Agency for Anti-monopoly Policy and Competition Im provement issues preliminary conclusions on 
whether there is sufficient eviden ce to hold an investigation.  Based on this assessment, the MITT 
decides whether an investigation is warranted. 
(ix) Government procurement  
59. Government procurement accounts for about 30%  of the national budget:  It totalled 
Som 4.1 billion in 2005 (Som 1.9 billion in 2001), and since 2004 has been opened substantially and 
is now used less as an instrument of industrial po licy.  The Kyrgyz Republic is negotiating joining the 
WTO Agreement on Government Procurement in li ne with its accession undertaking to become a 
member by end-1999, and is an  observer in the GPA Committee.  Government procurement 
legislation was amended in May 2004 (Law on Government Procurement).  
60. The Kyrgyz government procurement system is centralized, with individual bodies 
responsible for their own procurement.  The State Agency on Government Pr ocurement and Material 
Reserves, the central body handling government procurement, controls application of the legislation, supervises purchasing entity's decisions, monitors legal infringements, implements procurement policies, ensures transparency and openness of proc urement proceedings, and settles disputes.  The 
legislation requires internal and fore ign suppliers or contractors to pa rticipate equally in procurement, 
except for preferential price margins.  Foreign bi dders can no longer be prevented from participating 
where domestic suppliers are considered suffici ent;  thus, procuring entities cannot discriminate 
against or exclude foreign suppliers if included in the tender.
48  Qualification requirements must be 
objective and fair and not discriminate against supplie rs.  State-owned entities, at their own discretion 
and subject to agreement by the State Agency, ma y specify that domestic suppliers use local labour 
and materials in procurement.  However, such re quirements cannot be applie d to foreign contractors 
who are free to make their own decisions on whether to use local inputs.  
61. The legislation covers procurement by all ministries, administrative agencies, local 
government bodies, state organizations, state-owne d corporations (51% or more state owned).   For 
procuring entities with charter capital up to Som 100, 000, the legislation applies to contracts above 
Som 100,000 for goods and services, and Som 150,000 fo r works;  for procuring entities with charter 
capital above Som 100,000, the legislation app lies to contracts exceeding Som 500,000 for goods, 
services, and works.  Contracts below these thresholds are not covered by the legislation.  Procurement for national defence and security is  excluded.  Approval from the State Agency on 
Government Procurement and Material Reserves is required for procurement over Som 700,000 and 
for single-source procurement over Som 100,000.  Unde r the legislation, international rules accepted 
                                                     
 
47 Government Resolution on Conduct of Investigation Prior to Introduction of Safeguards Measures 
No. 15, January 2001 
48 WTO document GPA/W/197, 10 June 2002. Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 59 
 
 
by the Kyrgyz Republic are applicable if domestic le gislation is inconsistent (Article 68).  Contracts 
are to be awarded based on price, unless the do cumentation specifies other objective criteria.  
Procurement decisions may be appealed to the cour ts, but generally only after administrative remedies 
are exhausted. 
62. Domestic suppliers receive a 20% price margin of preference on goods and services 
(excluding consulting), and of 10% on works (construction, drilling, seismic activities and related 
services).  To be eligible, construction contractors must use local labour and source at least 30% of 
materials domestically. 
63. Methods of public procurement are tendering with  unlimited participation (the main tendering 
method) and limited participation; two-stage tende ring with tenderers submitting technical bids first 
and, if accepted, final tenders with prices;  requests for quotes (from at least three suppliers, previously two);  and single source procuremen t.  Legislation does not allow for electronic 
procurement, although there are plans for its introd uction.  Each State Agency officer maintains a 
public list of qualified suppliers for respective in dustries, and creates a database of unreliable 
suppliers;  this information is av ailable to all procurement entities.  Suppliers that meet technical 
requirements and have a reliable commercial and supp ly record can be included on the list of qualified 
suppliers on the initiative of the State Agency, the pr ocurement entities, or the suppliers themselves. 
(x) State trading 
64. The Kyrgyz Republic has not notified any state-trading enterprises.  During WTO accession it 
indicated that state-trading monopolies in the alcohol (Kyrgyzalko, de jure ), tobacco 
(Kyrgyztamekisi, de jure ), and the electrical and thermal energy  industries (Kyrgyz Energy Holding, 
Kyrgyzenergo, de facto) would be notified.  It was not prepared to commit to abolish state trading in 
alcohol or tobacco.  It also indicated that Kyrgyzpharmacia would not be notified as it had no role in issuing import licences, and that the sole producer, importer, and exporter of antimony, Kyrgyzaltyn, 
was not considered a state-trading enterprise becau se it had no exclusive or special privileges in 
foreign trade (imports were unlicensed and any person could be licensed to export it).
49  Kyrgyzaltyn 
is also the main state body handling other ores, a nd has exclusive rights to purchase or sell gold, and 
other precious and rare-earth metals, such as tellurium and scandium (Law on Ores No. 23, 
February 2002).   
65. Kyrgyzalko is no longer responsible for setting import quotas (section (vii)).  The majority of 
Kyrgyzalko's shares were transferred to the Al koprom State Enterprise in 2002 and it is the major 
shareholder of Kyrgyzalko.  Alkoprom's main activity  is to manage the state-owned shares (51%) of 
20 licensed manufacturers of alcoholic beverages.  It does not engage in any other activities, nor 
possess any exclusive rights or powers, according to authorities.  Other entities, including foreign, 
may be licensed to produce alcoholic beverages provid ed they register with the Ministry for Justice 
and form a joint venture that is majority owned by Alkoprom.  The State Inspectorate for Control over 
Manufacturing, Storage, and Sale of Spirit and Alc ohol Products issues manufacturers of alcoholic 
beverages with quota permits to purchase spirit fro m Kristall State Enterprise, which produces ethyl 
spirit, and has the exclusive right to import ethyl spirit, if necessary.  
66. Kyrgyzenergo  ceased operating in 2001 when its  operations were unbundled 
(Chapter IV(4)(i)). 
67. The state-owned entity, Kyrgyztamekisi, issues  licences to engage in processing tobacco 
leaves and manufacturing tobacco products; maintain s stocks and processes tobacco;  sells fermented 
                                                      
49 WTO document WT/ACC/KGZ/26, 31 July 1998. WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 60 
 
 
tobacco;  and administers pricing policies for tobacco leaf.  There is currently a statutory monopoly on 
cigarette production (section (4)(iv)). 
68. The state-owned joint-stock company, Kyrgyzne fteGaz, responsible fo r developing domestic 
oil and gas fields, does not have an import monopoly on natural and liquefied gas.  The state-owned 
(82.09%) joint-stock company Kyrgyzgaz has the ex clusive right to transact and import natural and 
liquefied gas from Uzbek's Uztransgas Company.50  It also handles domestic transportation, storage, 
and distribution of gas, and is considered  a natural monopoly for anti-monopoly purposes. 
69. The state-owned Kyrgyz Temir company was formed in 2001 to control the purchase, 
collection, and processing, of iron, steel, and non-ferrous scrap, and has the exclusive right to import (export) these products. 
(xi) Standards and other technical requirements (including SPS) 
(a) Standards, testing, and certification 
70. Transforming the Kyrgyz-inherited Soviet standa rds system to a market-based regime is a 
major ongoing challenge.  It featured heavy govern ment involvement, including in standardization, 
accreditation, and conformity assessment, mandatory inspections and certifications (covering some 
70% of all products), unique nati onal standards, and overlapping  responsibilities among regulatory 
bodies.  This added heavily to Kyrgyz producers' (including exporters') costs, increased inefficiency, 
and restricted trade.
51  Progress has been slow.  Testing agencies that rely on fees (e.g. the Ministry of 
Architecture and Construction, and the Sanitary and Epidemiological Service (SES)), have also 
resisted relaxation of mandatory requirements.52  However, duplication of certification, inspection, 
and state supervising functions is, in  principle, prohibited;  hence, according to the authorities, such 
conflicts of interest should be re duced as this is increasingly implemented over the next five years.53   
71. The Government has accelerated efforts to achieve a market-based standards regime by 
streamlining the certification and inspection requi rements, and improving standards and technical 
regulations.  According to the authorities, legisl ation consistent with WTO disciplines on technical 
barriers to trade and SPS measures was introduced in 2004 (Law on the Fundamentals of Technical 
Regulations, December).  It is intended to reduce business costs by making the system far less 
cumbersome and more transparent.  In particular, the legislation limited mandatory requirements to 
technical regulations needed for human and animal  safety, environmental and consumer protection, 
and made standards voluntary.54  There is a five-year transitional period (until 2009) for review of all 
technical regulations;  in the meantime only the re quirements contained in existing standards that 
relate to these objectives are mandatory.  The list of mandatory requirements (technical regulations) 
now covers some 70% fewer goods (Government Resolu tion No. 639 on List of Products Subject to 
Mandatory Conformity Assessment, December 2005)55;  services were eliminated from mandatory 
certification in 2000 (excluding "storage, transporta tion and utilization of goods ") and are covered by 
voluntary arrangements.  
                                                      
50 Kyrgyzgaz was created in 1998  from the state-owned Kyrgyzgazmunaizat, which had financial 
difficulties, and the latter currently supplies consumers wi th oil products in competition with private companies. 
51 World Bank (2005a), pp. 44, 49.  Excessive red tape associated with the existing standards and 
certification system was estimated to reduce net profits of  small and large Kyrgyz dairy enterprises by 140% and 
40%, respectively. 
52 World Bank (2005a), p. 51.   
53 It is prohibited to have two or more acts stipulating the same mandatory requirements for any good. 
54 Voluntary standards were distinguished from mandatory technical regulations, which apply on goods 
that, for example, threaten the environment or human health and safety (Law on Protection of Consumers' Rights).  
55 The list contains 2,089 10-digit HS tariff lines.  Kyrgyz Republic WT/TPR/S/170/Rev.1 
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72. The current system attempts to harmonize nati onal standards with international norms, such 
as ISO, IEC and the Codex Alimentarius Committee.56  Of the 20,000 Kyrgyz national standards (at 
end 2005), many of which are non-operational as  they are outdated or cover goods not produced 
domestically, about 19,000 are regional standards,  including of those adopted by the Eurasian 
Interstate Council for Standards, Me trology and Certification.  About 600 Russian standards have also 
been adopted.  About 38% of Kyrgyz standards are harmonized internationally (36% in mid 2003), well behind the target of 50% harmonized by end 2003.  The 2006-07 programme focuses on raising 
the harmonization rate to 70%, including harmonizing t echnical regulations in the areas of safety in 
transportation, foodstuffs, and bu ilding and construction materials,  as well as developing 74 national 
product standards. 
73. The Kyrgyz Republic and other CIS states adopt ed the International Program of Works on 
Harmonization of Interstate Standa rds With International and European Standards for 2004-06, which 
had been developed within the Eur asian Interstate Council for Standard s, Metrology and Certification.  
The programme provides for the development of 1,100  interstate standards as the basis of technical 
regulations, and aims to improve product safety an d competitiveness, remove technical barriers to 
trade, and protect the CIS market from low-quality and unsafe goods and services.  It  adopted An 
International Model for Technical Harmoniza tion Based on Good Regulatory Practice for the 
Preparation, Adoption and Application of Regulati ons Via the Use of International Standards as 
recommended by the United Nations Economic Commission for Europe.
57  In 2005, 384 interstate 
standards were amended and adopted  as national standards, 222 had been harmonized internationally. 
74. Certification, inspection rules, and procedures are applied uniformly to imports and domestic 
goods, according to the authorities, to achieve nati onal treatment.  Importers of goods subject to 
obligatory conformity certification with national saf ety requirements and other technical regulations 
must either undergo mandatory certification or have such a certificate on importation that is 
recognized by a local conformity assessment agency.58  Conformity assessments, compliance marks 
and test results for mandatory technical regulations  issued by foreign bodies are to be recognized by 
these new procedures based on Kyrgyz internationa l agreements.  Recognition can be based on 
bilateral, multilateral, or unilateral mutual rec ognition agreements, such as inter-agency agreements 
between standardization bodies.59  Acceptance of certificates is sued by foreign bodies depends 
generally on the existence of such agreements.  However, it is claimed, but rejected by Kyrgyz authorities, that many imports certified abroad as meeting international standards must undergo 
additional testing domestically, such as SES tes ting for harmful electromagnetic emissions of 
electronics equipment certified to internati onal standards in Japan and Western Europe.
60   
                                                      
56 While not a member of the International Electrotechnical Commission (IEC), the Kyrgyz Republic 
(NISM) was admitted to the IEC Affilia te Country Programme in December 2003.  It has been a "correspondent 
member" of the International Organization for Standardization (ISO) since 2005.    
57 The Kyrgyz Republic belongs to the CIS Inter-Governmental Council on Standardization, Metrology 
and Certification, which the ISO recognizes as a regional or ganization for raising the use of international standards. 
58 Government Resolution No. 8 on Procedures for importation of products subject to mandatory 
conformity certification, 11 January 2006, which also covers recognition of overseas conformity assessment 
results.  This legislation entered into force from July 2006. 
59 The basic CIS agreements were si gned in 1992 (Agreement to Perform Agreed Policy in the Field of 
Standardization, Metrology and Certification, and on Principles for Performance and Mutual Recognition of 
Certification Works).  The Kyrgyz Republic has si nce signed bilateral agreements on cooperation in 
standardization, metrology, and ce rtification with the Russian Federa tion (1994), China (1995), Ukraine, 
Uzbekistan and Georgia (1996), and Kazakhstan (1997).  Other countries with which it has mutual recognition 
arrangements include Iran, Slovak Republic, and Turkey as well as EU members.  
60 World Bank (2005a), p. 50.   WT/TPR/S/170/Rev.1 Trade Policy Review 
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75. The 2004 legislation recognizes voluntary accr editation of bodies conducting conformity 
testing and assessments of mandatory technical re gulations.  It permits recognition of accreditation 
and certification by third countries and internationall y accepted bodies.  However, the Government is 
still developing implementing resolutions aimed at establishing an independe nt national accreditation 
body. Regulations on self-declaration assessment, alt hough allowed for in the legislation, are also 
being developed. 
76. The National Institute for Standardization and Metrology (NISM) replaced the State 
Inspection for Standardization and Metrology (Kyrgy zstandard) as the national standardization body 
in 2004.61  Unlike Kyrgyzstandard, NISM no longer has regulatory and enforcement responsibilities, 
and will no longer be the national accreditation body.  It is responsible for preparing and introducing 
standards, but is prohibited from issuing regulations  enforcing standardization.  The Kyrgyz Centre 
for Testing and Certification, a state-owned enterp rise, was restructured and returned to NISM in 
2005 as a separate subdivision responsible for conformity assessment.    
77. MITT is responsible for implementing a uniform  policy on technical regulation (Presidential 
Decree No. 149, 30 April 2005 and Government Resolu tion No. 267, June 200 5).  Its responsibilities 
include coordination of national activities to devel op technical regulations, and to prepare proposals 
on international cooperation in this area.  This includes ensuring Kyrgyz compliance with relevant 
WTO agreements. 
78. Over 30 technical standardization committees have been established to examine standards 
under NISM's coordination.  From April 2005, laboratories have been accredited according to 
ISO/IEC requirements so as to harmonize natio nal accreditation procedures with international 
standards.  NISM is seeking membership of the International Accreditation Forum (IAF) and of the 
International Laboratory Accred itation Cooperation (ILAC), in wh ich NISM (Kyrgyzstandard) has 
been an affiliate member since 2002.62 
79. Imports of food and drinks are governed by the In struction on Control of Import of Foodstuffs 
and Raw Materials, Including Alcohol and Non-Alc oholic Beverages and a certificate of compliance 
on safety regulations issued by NISM, in accord ance with mandatory certification requirements.63 
80. Imports of alimentation products must also be supported by a certificate issued by the Kyrgyz 
Ministry of Health certifying them to be free from biological contamination; imports from unknown 
producers are not allowed.64  All foodstuffs (including beverag es) must have labels or attached 
descriptions of significant characteristics, including address of manufacturer, date of manufacture, and shelf life, in either Kyrgyz or Russian.
65  From August 2004 until June 2005, sales, including imports, 
                                                      
61 Presidential Decree on Actions for Further Improv ement of the Structure of Central Bodies of 
Executive Power, No. 39a, February 2004, and Presidential Decree No. 227, 13 June 2005. 
62 In 2005, the Kazakhstan-based Central Asian Cooperation on Metrology, Accreditation, 
Standardization and Quality (CAC MAS-Q) gained IAF observer status, and was recognized as a regional 
accreditation organization.  CAC MAS-Q, established be tween the four national institutes of Kazakhstan, 
Kyrgyz Republic, Tajikistan, Uzbekistan, in 2003, aims to promote regional harmonization of metrological 
standards and rules, application of international sta ndards, mutual recognition of results of conformity 
assessment (certification and testing) as well as pr ocedures on accreditation and achievement of mutual 
recognition.  It has developed a "road map" for ob taining international recognition in accreditation and 
certification.  Each member of CAC MAS-Q has become an affiliated member of ILAC. 
63 Government Resolution No. 8, 11 January 2006 and Government Resolution No. 639, 
30 December 2005. 
64 Government Resolution No. 329 on sanitary and epidemiological control to ensure sanitary and 
epidemiological wellbeing of the population exercise d by the sanitary and epidemiological bodies and 
institutions, 6 June 2003. 
65 Government Resolution No. 639, 30 December 2005 and Instruction on Rules to present Information 
on Foodstuff Labels in Kyrgyz or Russian languages, last revised 2003. Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 63 
 
 
of alcoholic beverages and iodized salt were require d to bear holographic marks to protect consumers, 
against counterfeit products, and domestic producers of these goods.66 
81. The Plan on Preparation, Review and In troduction of Standards for 2006 was approved 
recently, and a draft National Standardization Strategy released.   An action strategy programme has 
also been developed, until 2010, aimed at con tinuing work to establish a market-based national 
standardization system harmonized with internatio nal requirements.  The NISM is the designated 
WTO enquiry point for the Agreements on Technical Barriers to Trade and SPS Measures.  The Kyrgyz Republic (NISM) accepted the ISO/IEC C ode of Good Practice on Development, Adoption 
and Application of Standards in August 2000.  To improve transparency, the NISM manages a 
National Information Fund of Technical Regula tions and Standards as a national source of 
information on Kyrgyz and international standa rds and procedures (Government Resolution No. 345, 
11 May 2006).  NISM also has a standards information centre. 
(b) Sanitary and phytosanitary regulations 
82. Domestic legislation, including mainly the 2005 Veterinary Law (replaced the 1998 
legislation) and the 1998 Plant Quarantine Law, and the WTO SPS Agreement govern sanitary and 
phytosanitary measures (SPS).
67  Various government agencies, including mainly the agriculture, 
health, and environmental protection ministries, handle SPS measures.  The main body responsible for compliance with sanitary (veterinary) measures is th e Department of State Veterinary Services of the 
Ministry of Agriculture, Water Resources and Processi ng Industry, which is planning to establish an 
SPS enquiry point.  The Department of State Sanita ry and Epidemiological Oversight is the main 
body in the Ministry of Health responsible for SPS measures.  
83. Imports subject to SPS requirements need a phytosanitary or veterinary certificate  irrespective 
of country of origin.
68  Sanitary requirements on imports of an imals and related products are approved 
by the Interstate Council on Cooperation in Veteri nary Area among CIS states.  These comply fully, 
according to the authorities, with the requirements of  the World Organisation for Animal Health (OIE).  
There are plans to develop technical regulations on  foodstuffs in 2006 that will comply fully with 
Codex requirements.  No other sanitary requirements apply to imports, according to the authorities.  
84. Import restrictions are to be supported by ri sk assessments of disease th reats using scientific 
evidence.  These are performed, where required, by the Department of State Veterinary Services on 
the basis of data received regarding the epizootic st atus of OIE A- and B-list highly contagious animal 
diseases, including analysis of the situation in the exporting country and proba bility of entrance of the 
pathogens into the Kyrgyz Republic.  Imports of sh eep and cattle meat and of such live animals are 
prohibited from countries prone to mad cow disease, foot-and-mouth disease, and other highly dangerous diseases. 
                                                     
 
66 Government Regulation, Introduction of Additiona l Safeguard Measures to Prevent Illegal Turnover 
of Strong Alcoholic Beverages and Iodinated Salt, 2004) (removed by Government Resolution No. 205 on 
measures to ensure efficient operation of the alcoholic beverage industry, 6 June 2005). 
67 The revised veterinary law was approved by the World Organisation for Animal Health (OIE).  Other 
relevant legislation includes the Law on Chemicalization and Plant Protection (amended in June 2003 to reflect 
provisions relating to sale of pesticides and agri-chemicals), Law on Seeds (amended in June 2005), 1999 Law 
on the Environment, 2004 law on Fundamentals of Technical Regulation, and Government Resolutions No. 377 on Regulation on State Veterinary Inspectorate, 1992, and Instruction on Sanitary and Veterinary Requirements 
(last revised 2002).   
68 Inspection in the exporting country, on which the certificate is based, must be within 14 days of 
departure. WT/TPR/S/170/Rev.1 Trade Policy Review 
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85. The State Plant Quarantine Inspection Service, under the Agriculture Ministry, is responsible 
for regulating phytosanitary regulations.69  Plants, plant products, packing materials infested by a 
range of specified quarantine pests, plant pathogens , living insects, mites and nematodes, soil, living 
plants, straw, hay and grass used as packing materi als are prohibited (except for breeding and research 
purposes).70  Regulated imports require an import pe rmit, valid for 30 days, (in addition to a 
pyhtosanitary certificate) and must pass through sp ecified border points.  They include plants for 
planting (including seeds) of agricultural, forest, a nd ornamental plants;  fruit and vegetables;  and 
plant parts that may carry quarantine pests.  Imported cut flowers must also be free of Frankliniella  
occidentalis  and Liriomyza trifolii ;  fruit and vegetables must be  fumigated or refrigerated from 
March to end-October;  non-squared wood must  be fumigated;  grains must be free of Tilletia indica  
and Trogoderma granarium ;  and cotton fibre vacuum must be fumigated before despatch.     
86. The Government has agreements on collaboration in plant quarantine with CIS states (1992), 
Ukraine (2003), Moldova (2003), and Kazakhs tan, Tajikistan, and Uzbekistan (2000).71  It became an 
independent member of the European and Mediterr anean Plant Protection Organization (EPPO) in 2000 
(a member as part of the USSR from 1957).  Plan t quarantine regulations have  improved as a result of 
being based more on international standards.72  Since 1998, the international system for seeds 
certification has been adopted and the State Seed Inspectorate's seed testing laboratory has been accredited with the International Seed Testing Association.
73    
87. The Kyrgyz Republic does not prohibit the import of genetically modified organisms 
(GMOs).  It has no prohibitions on the producti on or import of products  containing GMOs.  
Veterinary requirements apply to animal products, incl uding of poultry, subject to natural or synthetic 
growth hormones. 
(xii) Countertrade 
88. Countertrade has declined substantially;  it repr esented 0.2% of exports and 1.5% of imports 
in 2005 (Table III.3).  The main items of countertr ade were exported electricity, cement, roofing slate 
and light bulbs, and imported natura l gas, mineral raw materials, and cast iron and steel.  According to 
the authorities, Kyrgyz state-owned enterprises do no t engage in countertrade.  Prior to April 2003, 
the Kyrgyz Republic supplied electricity and water to  Uzbekistan in exchange for gas but, since 2004, 
gas has been imported commercially (based on 100% cash payments) and no water resources have 
been supplied to Uzbekistan.74  It has also engaged in countertrade with Kazakhstan exchanging 
electricity for coal.  Limestone and coal is also supplied by the Russian Federation to process sugar 
beet in exchange for refined sugar.  The Govern ment also acquired 63 Belarus tractors in 2002 in 
exchange for cotton fibre.75  The Agreement terminated in 2005. 
                                                      
69 Regulations include the Agricultural Ministry's Order No. 42, Import of Seeds of Agricultural Crops 
not included in the State Registrar of Varieties and Hybrids Allowed to be Grown, February 1998, Codes of 
Regulated Articles (Consignments), Products and Commodities that Must be Controlled by the State Plant 
Quarantine Inspection Service, December 1998, and Ph ytosanitary Regulations of the Kyrgyz Republic, 
June 2000.   
70 Quarantine pests are divided into those that do not exist domestically and a few that existed in 
limited numbers (EPPO, 2001). 
71 An agreement with Kazakhstan, Tajikistan, and Uz bekistan on cooperation in veterinary services was 
signed in November 2000. 
72 ADB (2002), p. 6. 
73 ADB (2002), p. 6. 
74 The 2005 Inter-government Protocol on Utilizati on of Water and Energy Resources of the Syrdariya 
River basin provides for Kazakhstan to provide assistance in supplying gas to the Kyrgyz Republic for the 
Bishkek-based Heating Station (Article V).   
75 Inter-Government Agreement on Barter Supplies of Goods on an Equivalent Basis in 2001-05 
(30 May 2001).   Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 65 
 
 
Table III.3  
Countertrade, 2000-05 
(US$ million and quantities) 
 2000 2001 2002 2003 2004 2005a 
Exports 4.6 2.4 4.5 2.3 2.1 1.3 
% of  total exports 0.9 0.5 0.9 0.4 0.3 0.2 
Imports 19.5 25.8 33.7 22.4 18.8 16.5 
% of total imports  3.5 5.5 5.7 3.1 2.0 1.5 
Exports ('000 tonnes unless otherwise indicated)        
Cereals and cereal products 0 0 0.1 0.06 0 0 
Vegetables and fruit 1.4 0 0 0 0 0 
Sugar, sugar-ware, and honey 0 0 0.03 0 0 0 
Raw tobacco and tobacco waste 0 0 0.04 0 0 0 
Textile fibres 0 0.04 0 0 0 0 
Wool 0.03 0 0 0 0 0 
Stone, sand, and gravel 0.1 0 0 0 0 0 
Metal ores and scrap 1.7 0 0.1 0 0 0 
Electricity (million kWh)  0 0 65.8 0 0.1 24.8 
Cement 39.9 0 16.2 10.6 27.6 13.2 
Roofing slate 20.8 0 8.2 22.7 15.7 4.6 
Electric bulbs (mln. pieces) 41.8 34.0 27.0 13.4 1.4 3.2 
Imports ('000 tonnes unless otherwise indicated)        
Cereals and cereal products 0.2 0.1 0.1 0.1 0 0 
Sugar, sugar-ware, and honey 0.3 0.1 0 0 0 0 
Coal, coke. and briquettes 4.2 3.4 0 6.4 0 0 
Petroleum oils 5.8 0 0 0.2 0 0 
Natural gas (million m3) 293.2 445.6 569.4 437.6 375.0 382.3 
Electricity (million kWh) 0.1 0.2 86.9 108.1 0.1 0.2 
Non-organic chemicals 0.5 3.0 0.7 0 0 0.2 
Volatile oils and perfumery 0 29.0 0 0 0 0 
Raw materials for fertilizers and minera l raw materials  55.0 0 0 0 296.0 54.5 
Primary form plastic 9.7 0.02 0 0 0 0 
Paper, cardboard, and products from these materials 3.4 3.2 2.0 1.4 0 0 
Cast iron and steel 0.2 0.2 0 0 0 4.0 
Base metal products 0.02 0 0.9 0 0 0.7 
Electric distribution equipment  0.1 0.2 0 0 0 0 
Cars (pieces) 44 3 0 0 0 0 
Motor vehicles  2 0 0 0 0 0 
Trucks 42 3 0 0 0 0 
a Preliminary, for first nine months. 
Source:  National Statistics Committee. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Transit arrangements  
89. The Kyrgyz is landlocked, and a government pr iority is to improve road and rail transit 
arrangements with neighbouring countries that have restricted its exports.  Agreement on improved 
transit provisions has been a key aspect of bila teral and regional trade arrangements among CIS WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 66 
 
 
states.76  However, commitments on national treatment and on levying transit fees that reflect cost 
have been implemented unevenly by CI S states, especially on road transport.77  Bilateral transit and 
road transit agreements with Kazakhstan (1993) and Uzbekistan (1996) were also implemented 
poorly;  Uzbekistan effectively withdrew from th e 1996 agreement and both countries maintain transit 
barriers.78  However, under new transit agreements in  2003 and 2004, fully effective January 2005, 
Kazakhstan has eliminated all extra railway tariff charges on Kyrgyz traders, and charges domestic 
rates and allows permit-free transit of Kyrgyz truc ks, which no longer have to pay a deposit at the 
border or require a customs escort.  However, barriers remain.79  Customs and transit problems persist 
with Uzbekistan.  For example, it introduced an entry and transit fee of US$300 per vehicle on 
Kyrgyz trucks from 2000, which was renewed in December 2003.  Moreover, it introduced mandatory 
customs escorts on Kyrgyz trucks from 1 July 2 004, with associated fees ranging from €50 to €200, 
depending upon distance of escort.  Uzbek visa requirements for Kyrgyz drivers are also a matter of concern.  The Kyrgyz authorities indicate that no restrictions or fees are applied to Uzbek trucks 
entering the Kyrgyz Republic. 
(ii) Taxes, charges, and levies 
90. The Kyrgyz Republic has no export taxes.  A seasonal export tax of 100% imposed on wheat, 
wheat flour, and wheat-rye flour in July 1999 to ensu re sufficient supplies for domestic manufacturers 
was terminated in August 2001. 
(iii) Prohibitions, restrictions, and licensing  
91. The authorities indicate that exports of treacle-molasses are no longer subject to prohibition 
(since 2004), which was aimed at ensuring adequate  domestic supplies for processors (Government 
Order No. 58-p, February 2003).  
92. Export licences, administered by the Ministry of Industry, Trade and Tourism, apply to a 
range of products for reasons of human safety and public health, e nvironmental protection (including 
under international conventions),  national security, and preservation of art, historical and 
archaeological treasures, and exhaustible natural r esources.  Goods include weapons;  explosives;  
nuclear materials and technology for military use;  virulent poisons;  narcotics (including used in 
pharmaceuticals) and psychotropic su bstances;  art works and antiquiti es with historical, cultural or 
                                                     
 
76 For example, transit conditions, including transportati on charges, are to observe the principle of "free 
transit", not experience "groundless delays or restrictions", and be non-discriminatory (Agreement on 
Procedures of Transit Through the Terr itories of CIS States, June 1999).  EC AC members have also agreed on a 
Road Transport Union (although this is yet to be ratified by Belarus) to ensure legal, economic, and 
organizational conditions for free movement of freight an d passengers by reaffirming national treatment for road 
and rail transport (1998).  Bilateral agreements betwee n the Kyrgyz Republic and selected CIS states also 
provide for "free" transit terms no "worse" than domestic  operators and that transit charges be "economically 
substantiated".  Transit arrangements agreed with China (Agreement Be tween Kazakhstan, Kyrgyz Republic, 
China and Pakistan on Transit Charges, 9 March 1995) were approved by the Kyrgyz Republic in May 2003 
(Government Resolution No. 264, 7 May 2003). 
77 World Bank (2005a), p. 60. 
78 One survey found that Kyrgyz drivers transiting th rough Kazakhstan had delays of 2.5 to 7 days at 
various checkpoints, compared with 2 to 13 hours for Kazakh drivers (USAID/Pragma, 2002). 
79 Kazakh local authorities continue to impose variou s road taxes and fees;  police harassment is 
common as are bureaucratic delays inte nded to extract bribes (World Bank, 2005b, p. 150).  In addition, despite 
general adherence to the 1999 CIS Agreement on Mass and Dimensions of Transport, which provides for 
unified axle weights, Kyrgyz truckers are at times for ced to carry inefficiently small loads because Kazakh axle 
weight limitations discriminate against Kyrgyz hauliers.  Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 67 
 
 
scientific value; ferrous, precious, and rare-earth metals and their fragments80;  and rare raw materials of 
vegetable or animal origin having pharmacological applications (Table III.4). 
Table III.4 
Goods subject to export licensing, 2005 
Goods HS Codes 
Wild animals 0106.0099.0 (wild birds listed in  the Red Book endangered species list) 
Herbal drug raw materials 1211 (aconite, hypericum,  sea-buckthorn, flaxseed, licorice, thermopsis, 
dogrose, ephedra), 1301 (raw amberat), 1302 (licorice-juices and 
extract)  
Cryptographic means (including cryptographic equipment, accessories for such equipment and software for encryption), 
normative and technical documentation for encryption  means 
(including design and operational documentation) 8471 (only cryptographic equipment), 8473.3000.0 (only cryptographic 
equipment), 8543.9090.0 (only cryptographic equipment) 
Armament, military hardware, special component parts for their manufacture, works and services in the area of military and 
technical cooperation List of the Ministry of Defence  
Means of protection from warfare agents, components and 
accessories List of the Ministry of Defence  
Military uniform, clothing and attributes   List of the Ministry of Defence 
Normative and technical document s for military products (design 
and operational documentation) List of the Ministry of Defence 
Means for carrying out military operations, ammuniti on 9306 (torpedoes, cartridges and other ammunition) 
Gunpowder and explosives, e xplosive devices and pyrote chnics 3601 (except for hun ting powder), 3602, 3603, 3604 
Nuclear materials, t echnologies, equipment and plants, special 
non-nuclear materials, s ources of radiation, including radioactive 
waste List approved by the President (Government Resolution No. 55, 
2 June 1996) 
Materials, equipment and tec hnologies intended for peaceful 
purposes but that can be used in creating weapons of mass 
extermination List approved by the President (Government Resolution No. 55, 
2 June 1996) 
Certain types of raw materials,  equipment, technologies and 
scientific information which can be applied in creating weapons 
and military techniques List approved by the President (Government Resolution No. 55, 
2 June 1996) 
Precious metals, alloys, metals plated with precious metals, ores; 
concentrates; scrap and waste 2616 (ores and concentrates), 2843 (metals, amalgams), 3006.4000.0 
(from precious metals only), 7106-7112, 7113.1100.0, 7113.1900.0, 
7114.1100.0, 7114.1900.0, 7115.1010.0, 7115.9010.0, 7115.9090.0, 
7118 (from precious metals only), 8544 (only with conductors from precious metals), 9003.1910.0, 9021.2910.0, 9111.1000.0, 9608.1030.0, 
9608.3910.0 (only of precious metals)  
Precious natural stones, powders an d recuperate of precious natural 
stones  7101, 7102, 7103 (precious stones only), 7105 (from precious stones 
only), 7116 (from precious stones only).  
Scrap and waste of non-ferrous metals 7404, 7503, 7602, 7802, 7902, 8002, 8101-8112 
Drugs and psychotropic agents, highly toxic and intoxicative 
agents, precursors List of the State Committee on Drug Control 
Highly toxic poisons List approved by the President (Government Resolution No. 55, 6 
February 1996) 
Hazardous wastes List of the Basil Convention on the Control over Trans-border 
Transportation of Hazardous Cargo of 22 March 1989 (Parliament 
Resolution No. 304-1, 18 January 1996) 
Duty and civil weapons List of Ministry of Internal Affairs 
Source:  Kyrgyz authorities. 
                                                      
80 Any manufacturing/mining or intermediary entity can apply for a licence to export ferrous, precious 
and rare-earth metals extracted and/or processed in the Kyrgyz Republic.  The licence application must include the 
contract and the applicable bilateral agreement on deliverie s, if any, and explain the transaction's benefit to the 
Kyrgyz Republic.  A non-transferable automatic licence would be granted within 20 days, either for single shipment (valid for six months) or multiple shipments (valid for 12 months). WT/TPR/S/170/Rev.1 Trade Policy Review 
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93. According to the authorities, except for non-ferro us metal fragments and waste, licensing is 
not intended to restrict exports but to control ex ports of stolen materials, such as telephone lines and 
power transmission lines.81  While export prices are reviewed in the licensing process, no  minimum 
export prices apply.  
94. The Kyrgyz Republic does not impose any UN-related economic san ctions on exports. 
(iv) Export incentives and promotion 
(a) Subsidies and tax incentives 
95. No direct export subsidies apply, including on agricultural products.  These were bound at 
zero immediately upon WTO accession. 
96. The Kyrgyz Republic has no income tax incentives for exporters.  It has no export 
performance requirements;  tax incentives b ased on export performance under the 1991 Foreign 
Investment Law have been terminated.  Large expor t-oriented industrial enterprises can defer payment 
of VAT on imported raw materials, components,  and supplies for two months, under certain 
conditions.82 
97. There are no drawback facilities for exporters.  Instead, duty-free imports of inputs 
incorporated into exports is allowed under inwa rd-processing arrangements.  Products must normally 
be exported within one year, extenda ble to two years on request.    
(b) Free economic (export-processing) zones  
98. There are four free economic zones (FEZs);  Bis hkek, Karakol (the shores of lake Issyk-Kul), 
Maimak (Kyrgyz-Kazakh border) and Naryn (Kyrgyz-Chinese border).  Of some 650 entities 
registered in these zones, 458 are in Bishkek,  which is the only FEZ operating effectively.  
Comprehensive tax incentives apply in FEZs;  entities are exempt from income tax and all customs duties (1992 Law On Free Economic Zones, last revised 2002).
83  Imports into FEZs and goods 
produced in the FEZs and sold domestically are subject to standard import duties and domestic taxes.
84  However, cases of abuse have surfaced, such as sale of imported fuel domestically, through 
FEZs, by a well-connected trading group without payment of excise tax.85  The authorities confirm 
that FEZs, especially at Karakol and Maimak, have become "black holes" for evading tax.86  Evidence 
                                                      
81 WTO document WT/ACC/KGZ/26, 31 July 1998.  Licence s apply to waste and scrap of copper, nickel, 
lead, aluminium, zinc, tin, wolfram, molybdenum, tantalum, magnum, cobalt, bismuth, cadmium, titanium, zirconium, antimony, manganese, rhenium, chrome, german ium, vanadium, beryllium, and niobium, as well as 
ores and concentrates of tungsten, molybde num, and antimony concentrates and oxides. 
82 The conditions are that the entity has suffered some natural disaster, technological catastrophe or 
other insurmountable circumstances; is facing a delay in  state funding or payment; th e goods are perishable; or 
the supplies are in accordance with inter-governmen tal agreements (Article 245 of the Tax Code). 
83 Employees in FEZs pay income tax, and firms pay a fee of 2% of revenues to fund FEZ operations.  
84 Government Resolution on Making Changes and Amendments to the Regulations on Free Economic 
Zones, No. 373, June 1998. 
85 The Kyrgyz Republic agreed at WTO accession to terminate by end-200 2 exemptions from lease 
payments for up to 15 years in FEZs for export-oriented and import-substitution producers using domestic raw 
materials and spare parts, and employing minimum staff. 
86 To control such tax abuses, the Government suspended the excise tax concessions on imports of most 
petroleum products in FEZs in 2003 (Government Resolution No. 149, 20 March 2003).  Moreover, parliament 
is considering amendments to the law on FEZs to control tax abuse (Government Resolution No. 250, 7 April 2006). Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 69 
 
 
also suggests that there is substantial leakage of sales from FEZs onto the domestic market without 
payment of all domestic taxes.87  FEZ firms also tend to be on average five to seven times more 
productive than domestic firms because of the improved business environment in FEZs (fewer 
regulatory burdens) and access to superior technology.   
99. The Government is to abolish all FEZs except for Bishkek. 
(c) Finance, insurance, and guarantees 
100. Neither the Government nor its affiliated institu tions provide export finance, and there is no 
public export insurance or guarantee system.  In  August 2000, Demir Kyrgyz International Bank 
signed an agreement with the EBRD to develop a trade financing programme.  
(d) Promotion and marketing assistance 
101. There are some limited export promotion programmes.  The Export Development 
Programmes for 1999-02 and 2002-04 were adopted to  diversify exports.  The 2006-08 programme is 
currently being finalized, and will include effort s to improve export quality.  The programme is 
expected to increase exports to US$761 million in 2007 and to US$820.0 million in 2008, mainly through measures to increase manufactured exports , including highly processed products.  An Export 
Promotion Council is also planned. 
(4) M
EASURES AFFECTING PRODUCTION AND TRADE  
(i) Legal business framework, including licensing and registration  
102. The business climate remains unconducive to private economic activity.88  Administrative 
barriers to doing business impose substantial de lays and added costs.  Business licensing and 
registration procedures are still cumbersome a nd overly bureaucratic, impeding investment and 
enterprise development, especially of small and medium sized entities.89  Streamlined registration 
requirements, however, have made starting busi nesses easier, and the number of licensed activities 
was reduced from 64 to 29 in 2001.90  While all licensing requirements were incorporated into the 
1997 Law on Licensing, arrangements have been  implemented haphazardly, and new licences 
adopted.91  Other laws also contain licensing provisions  that are likely to violate the legislation.92  
Many other registration requirements, e.g. expert s' opinions and attestations, and permits (some 
unofficial), are still needed e.g. for health and san itary, fire, architecture and construction, and land 
                                                      
87 In 2003, approximately one third of FEZ production was sold domestically, down from three fifths in 
2000 (World Bank, 2005b, p. 216). 
88 World Bank (2005a), p. 32.   
89 The Kyrgyz Republic is still experiencing various forms of extreme government intervention in 
entrepreneurial activity that is putting a brake on economic  development and is a source of corruption, whereby 
the low effectiveness and continual increase in the nu mber of checks carried out by regulatory bodies 
encourages both sides to play by secret rules and not by the law, thereby retarding competition and promoting 
the shadow economy (Resolution of the Economic Forum on Removing Barriers to Business, Bishkek, 
31 May 2006). 
90 To start a business, a legal entity has to register with the Ministry of justice, the National Statistics 
Committee, and the Stat e Tax Inspectorate. 
91 World Bank (2005a), p. 80.   
92 Some 50 sector-specific laws have  been drafted to cancel licences not covered by the licensing law 
or to ensure consistent licensing requirements, but only 35 have been enacted (World Bank, 2005a, p. 81).  
Currently 120 documents are needed to commence operations (not all are required for every business) and a 
total of 33 licences. WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 70 
 
 
use, and are often imposed by governments (incl uding local), without much control or scrutiny.  
While these are being tightened or removed, resist ance is strong and many permits have been re-
introduced.93  State inspections (e.g. by tax authorities)  also impede business;  new regulations in 
2002 to curb inspections had limited effect.  In  2005, the Kyrgyz Republic  was ranked 84th (out of 
155) overall in the World Bank's benc hmarking business regulations survey.94  Legislative reforms are 
implemented slowly and enforcement seems to be inadequate.95 
103. Corruption indicators remain high.96  This is despite anti-corruption legislation being passed 
in March 2003 and a Presidential Council on Good Governance established in February 2004.  
Corporate governance remains inadequate, despite efforts to improve the regulatory environment 
through legislation on joint-stock companies ( 2003), the securities market (1998), and on accounting 
and auditing (2002) that requires all companies to apply international fina ncial reporting standards 
progressively from 2007.  A new bankruptcy law in  1997 (substantially amended in June 2002 to, 
inter alia,  strengthen the role of the State Body on Bankruptcy Cases) is still considered deficient.97   
(ii) Budgetary support and tax concessions 
104. Direct agricultural financial support ceased from 1996, except for (currently) five special 
animal breeding farms, three stud farms, and two seed-producing farms.  From 2003-05, total 
government support to these farms amounted to So m 13.4 million.  Such support was partially 
replaced using loans from international institutions to  provide subsidized low-interest farm credit for 
the purchase of key inputs, e.g. seeds, fertilizer, a nd equipment.  In the WTO, the Kyrgyz Republic 
has bound domestic agricultural support at zero.  Farm support is nevertheless provided by several 
schemes notified as "green box" measures exempt fro m reduction commitments, such as provision of 
general services, especially relating to animal and pl ant disease, seed inspection and irrigation repairs, 
and structural adjustment assistance provided through investment aids to promote reorganization of agricultural enterprises from the State to the privat e sector.  This support totalled Som 55.7 million in 
1998.
98  The Government funds the provision of farm extension services under the Rural Advisory 
Service and its Agriculture Training Centre , as well as agricultural research, amounting to 
Som 7.7 million in 2001.    
105. Farmers are also assisted by implicit price subsidies on irrigation.  The water usage fee levied 
on farmers, at Som 0.03 per cubic metre (last in creased in 1999), is substantially below actual 
recurrent expenditure on irrigation facilities by the Agriculture Ministry (Som 0.06 per cubic metre), 
implying an annual net indirect budgetary transfer to farmers of Som 195.2 million 
                                                      
93 World Bank (2005a), p. 82.   
94 Rankings were particularly low in the su b-categories of dealing with licences (65th), hiring and firing 
(63rd), paying taxes (135th), trading across borders (150th), enforcing contracts (147th), and closing a business 
(93rd) (Doingbusiness .  Available at:  http://www.doingbusine ss.org).  The EBRD-World Bank BEEPS, 
conducted in 1999, 2002, and 2005, also show deterioration in most indicators on doing business and corruption 
(EBRD-World Bank Business, 2002).   
95 World Bank (2005a), p. 84.   
96 The Kyrgyz Republic ranks 125th (out of 146) in Transparency In ternational's Corruptions Perception 
Index;  2.2 out of 10 indicated "rampant" corruption (Transparency International. Annual Report 2004.  
Available at:  http://www.transparency.org/publications ).  The Kyrgyz Republic ratified the UN Convention 
Against Corruption in June 2004. 
97 World Bank (2005a), p. 84.  The laws on bankruptcy and joint-stock companies have "medium 
compliance" with international benchmarks (EBRD In solvency Sector and Corporate Governance Sector 
Assessment Projects, 2003 assessment). 
98 WTO document G/AG/N/KGZ/1, 4 November 1999. Kyrgyz Republic WT/TPR/S/170/Rev.1 
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(US$4.4 million).99  The real transfer, taking into account th e real costs of irrigation including all 
capital and operating expenses) is much higher, estimated at Som 901.1 million (US$20.5 million) 
annually, based on a full cost of Som 0.2 per cubic metre.100  Thus, irrigation charges would need to 
increase over sixfold to fully recover costs (Chapter IV).  Use of agricultural machinery and 
equipment is also implicitly subsidized thr ough the leasing and hiring of services provided by the 
parastatal AiyilTechService, wh ich receives high levels of government support (mainly from off-
budget grants), and is the dominant (if not sole) form al importer and wholesaler of farm machinery.  It 
is slated for privatization in 2006.101  Lease and hire fees charged to farmers are well below 
commercial charges and cost recovery.  In additi on, lease payments by farmers are chronically in 
arrears.102 
106. Farmers are also taxed lightly.103  Farm inputs, including fertilizers, are exempt from VAT, 
and smuggling of agri-chemicals and other inputs has fl ourished, especially of fertilizers at subsidized 
prices from Uzbekistan including by cotton farmers to avoid paying tariffs.104  It is estimated, for 
example, that as much as half of all fertilizer used is smuggled.105  The Government continues to 
provide fertilizers and pesticides directly, often using donor support, and this has hampered the 
growth of private traders.  Farmers are levied  a relatively low land tax, and arrears are high, 
amounting to Som 54 million as of January 2003.  Gove rnment efforts to raise the land tax have been 
rejected by parliament.   
107. Insurance companies benefit from a concessional in come tax rate of 5% of total premiums 
received in order to develop the insurance market.   
108. Many enterprises have accumulated large governme nt debt.  Total outstanding government 
budgetary loans amounted to Som 17.2 billion (US $364 million) at end 2000, and Som 12 billion 
(US$285 million), equivalent to  15% of GDP, in mid 2003.106  Over 90% of budgetary loans and 20% 
of government guaranteed direct foreign credits remain overdue, with ba nkrupt firms owing about 
one third of outstanding debt.107  Government guaranteed foreign debt  to firms is also substantial, 
                                                      
99 World Bank (2004a), p. 42.  The new Water Code adopted in January 2005 transferred the 
responsibility for setting irrigation charges from parliament to the Government.  Only about 20% of the 
expenditure of the Department of Water Resources is financed by water charges.   
100 Water charges are also poorly coll ected and frequently fall below annual targets.  Total arrears were 
over Som 65 million at end 2001 (World Bank, 2005a, p. 142).  In 2005, water charges collected amounted to 
Som 64.2 million, and a substantial share (almost half) was still paid for in agricultural produce.   
101 Government support covers the provision of farm equipment to Aiviltechservice costing some 
US$3.0-3.5 million annually from 1997 to 2002 for nominal payment, and use of interest-free credit from 
Japanese grant funds to buy equipment; its mandate to provide farm inputs terminated in 2000 (World Bank, 2004a, Annex 3).  In 2001, for ex ample, Ailtechservice received tract ors worth Som 140 million from the 
Government but paid only Som 10 million. 
102 Some 40-50% of lessees are in arrears (World Bank, 2004a, Annex 3). 
103 World Bank (2004a), Annex 5.5. 
104 The Kyrgyz Republic relies on imported agri-c hemicals and fertilizers and while such smuggling 
benefits farmers by access to them at lower prices, it doe s so unevenly, dampens development of formal trade by 
undermining legitimate private traders, and contributes to  tax evasion.  Moreover, th e lack of rural credit also 
requires farmers who purchase fertilizers formally to us e barter, amounting in the case of cotton growers to a 
price increase of 62% (World Bank, 2005a, p. 106). 
105 ADB (2002), p. 18.   
106 ADB (2001), p. 15 and ADB (2003), p. 9. 
107 These figures are likely to understate the debt position of firms as many government loans have 
been  rescheduled on highly soft terms, often to already insolvent firms with little prospect of repayment.  A 
significant share represents outstan ding credits extended to farmer s from 1992 to 2003, estimated at 
US$15.4 million by January 2004 (Sulaimanova, 2004, p. 4).  WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 72 
 
 
amounting to US$50 million in 1999.108  Many firms also have substantial social security and tax 
arrears.  New budgetary loans have not been allowed since 2001. 
(iii) State-owned enterprises and privatization 
109. State-owned enterprises remain important, despite  several stages of privatization since 1991 
(Table III.5).109  The private sector's contribution to GDP rose from 30% in 1994 to 65% in 2003 and 
to 75% in 2005 (Table I.2).110  Privatization, however, stalled in the late 1990s, but was re-started with 
new legislation in 2002 (Law on Pr ivatization of Public Property).111  Two-year privatization 
programmes began in 2001-03 (Government Re solution No. 576, September 2002), and the 
Government's State Property Privatization Progra mme for 2006-07 (Government Resolution No. 91, 
13 February 2006) was approved by parliament in June 2006.  The State Property Committee handles 
privatization, and operates the State Privatization Fund.  Divestment is by auction, bidding, lease or 
direct sale.  Privatization receipts to July 2005 totalled Som 1.6 billion (Som 140.2 million in 2005), of which 85% accrued to the national budget and the remainder to the State Privatization Fund. 
Table III.5 
Privatization by sector and type, 1999 and 2001-04 
(Number of enterprises sold or privatized) 
Sector/type 1999 2001 2002 2003 2004a 
Privatization by sector 6,656 6,985 6,992 7,070 7,107 
Industry 510 521 535 535 535 
Consumer services 1,933 1,936 1,936 1,936 1,936 
Non-productive sphere 22 24 24 25 26 
Trade and catering 1,897 1,914 1,915 1,915 1,915 
Agriculture 362 368 379 379 380 
Construction 425 429 430 430 430 
Transport 165 167 172 172 174 
Other branches 1,342 1,536 1,601 1,678 1,711 
Privatization by type 6,656 6,886 6,983 7,061 7,098 
Conversion to joint-stock company 1,647 1,663 1,677 1,678 1,680 
Rented to subsequently purchase 110 121 134 151 155 
Sale through commercial comp etition 1,196 1,202 1,231 1,254 1,266 
Conversion to limited joint-stock company 215 221 223 223 223 
Sale to private parties and workers' collectives 2,990 3,163 3,192 3,199 3,208 
Auctioned 498 516 526 556 566 
a Until 10 September. 
Note: Figures are cumulative and exclude privatized  housing.  Totals diffe r by type and sector. 
Source:  IMF (2005), Kyrgyz Republic: Statistical Appendix , Country Report No. 05/31, February, Table 15, p. 17.  
                                                      
108 On occasions, these contingent liabilities have had to be financed, such as when JSC Oremi 
defaulted on the loan with the Islamic Development Bank, and the Government as guarantor had to repay it. 
109 The first stage (1991-93) focused on "smaller privatizations" and about 4,700 small SOEs were fully 
privatized.  In the second stage (1994-97), about 1,300 large and medium-sized SOEs were privatized by 
corporatization as joint-stock compan ies and divested largely through voucher sales ("mass privatization"), 
competitive bidding or direct sale.  The third stage (1998-00) covered mainly strategic mining and power 
engineering businesses on a case-by-case basis.   
110 As at January 2006, some 70% of the 9,989 SOEs registered in 2001 had been privatized, most of 
these before 2005.  The private sect or accounted for 88.4% of industry, 59.0% of construction, 59.3% of 
transport, 97.6% of trade and public catering, 99.8% of  consumer services, and 49.9% of other industries.  
111 Starting 1998, the privatization programme must be approved by parliament and periodic progress 
reports prepared.  Kyrgyz Republic WT/TPR/S/170/Rev.1 
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110. Privatization of certain activities is prohibited for reasons of safety, security, health, social 
development, or environmental pr otection, or to secure state monopolies (2002 Law on Privatization 
and Government Resolution No. 91, 13 February 2 006).  These activities include minerals, including 
gold (KyrgyzAltyn), timber and water resources, road s and railroads, bus stations, post office, higher 
education institutions, spirits (a lcoholic) production (excl uding beer), and electr icity generation and 
transmission.112  Others, that are to remain state owned until decided otherwise, are high-voltage 
energy supply networks over 35 kV;  specialized road-operating enterprises, including maintenance;  
engineering infrastructure;  water-gas supply;  sewerage;  and heating.  Other property can be 
privatized, based on a decision by the Government  (including enterprises for rare-earth and non-
ferrous metal ores processing, and timber enterpri ses) or the State Property Committee.  Foreign 
investors can participate freely in privatizations  (except for purchasing land).  The Government may 
use "golden shares" in "exceptional cases" to protec t key state strategic interests when converting 
SOEs into joint-stock companies. 
111. Some two thirds of SOEs are majority state owned (SOEs comprised 111 joint-stock 
companies and 10 limited liability companies as at January 2006) are majority state owned.113  These 
include Kyrgyztamekisi (99.1% state owned), Kyrgyztelecom (77.8%), Kyrgyzgasmunaizat (82.1%), 
Kyrgyzgas (82.1%), Severoelectro (80.5%), Ky rgyzAltyn (100%), and the National Air Carrier 
Kyrgyzstan Aba Joldoru (NACKAZ) (81.4%).  While  over 70% of SOEs have been privatized, the 
most significant, and politically more difficult,  remain.  Recent programmes have listed for 
privatization tourism facilities and "strategic" en terprises approved by Parliament, such as in the 
electricity sector, including distribution (Kyrgyzener go, Severelektro, Vostokelektro, Oshelektro and 
Jalal-Abad Electro), Bishkek heating system, Kyrgyzstan Aba Joldoru, Kyrgyzgas, and 
Kyrgyztelecom.114  However, little progress has occurred, and several of these key privatizations, such 
as of Kyrgyztelecom and Severelektro, were halted at the last moment, but are now being pursued 
again (Chapter IV).  While privatization of sev eral mining SOEs are prohibited, KyrgyzAltyn was 
reorganized into a joint-stock company in 1999, and its 66% holding in the Kumtor gold mine was 
reduced to 33.3% in 2005 and subsequently to 15.7% (Chapter IV). 
(iv) Competition policy and price controls 
112. The National Agency for Anti-monopoly Policy and Competition Improvement (formerly the 
State Department for Antimonopoly Policy of the Trade Ministry) administers competition legislation.
115  Although in principle the body is now an independent agency under the President's 
Office that reports to the Prime Minister (Presi dential Decree No. 448, 10 October 2005), in practice 
its autonomy is uncertain.  It c overs goods and services (excluding banking) supplied by private and 
SOEs, including natural and permitted monopolies ( see below).  It aims to prevent "monopolistic" 
(anti-competitive) activity, including abuse of domin ant market position (35% or more market share), 
and unfair competition.116  A dominant business entity must not conduct activities to limit 
                                                      
112 The Constitution requires all natural resources, incl uding minerals, water and forests, to be state 
owned (Article 4).  These activities cannot be privatized (A rticle 3, Law on Privatization and Denationalization).  
Such property can, however, be leased.   
113 In 2001, there were 248 SOEs (14 fully state owned).   
114 List of basic, strategically significant branches of economics, privatization of which is being carried 
out in accordance with conceptions, programmes or individual projects adopted by Parliament. 
115 Law on Restrictions of Monopolistic Activities,  Development and Protection of Competition 1994. 
New draft legislation, the Law on Competition, was recently revoked for further development, and is being revised. 
116 The Agency may specify another, lower market share for determining "dom inance" where the firm 
has sufficient power to critically influence the market.  For example, in 2001 the dominance level for tobacco 
and kidney beans was set at 20%.  Curren tly there are no such determinations.   WT/TPR/S/170/Rev.1 Trade Policy Review 
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competition, such as restricting production or sale of goods to create an artificial shortage or to raise 
prices, creating market-access obstacles for other entities, imposing exclusive customer conditions, or 
setting monopolistically high or low prices, including predatory pricing.117  Competition-limiting 
agreements among dominant firms, such as price fixing, discriminatory pricing, and market 
separation, are investigated and prohibited unless approved by the Antimonopoly Agency as 
conferring positive net benefits.  It  can "coercively split" dominant firms that limit competition.  Local 
governments must not take anti-competitive actions, including discriminatory treatment of suppliers, 
such as unjustifiably providing selective tax, credit, and other concessions;  restricting foreign firms' 
operations;  or providing financial and other concessions to unprofitable firms, contrary to public 
interests.  Unfair competition covers misuse of intellectual property, such as infringing patents, 
illegally using trade marks,  providing imprecise or false details to confuse consumers on the product 
or place of origin, and manipulating prices to limit competition. 
113. The Agency regulates natural and permitted monopolies.118  Natural monopolies (single 
supplier due to technological factors) and permitted monopolies (35% or more of the market, or other, 
lower share set by the Agency) are lis ted annually in the state register.119  Monopolies cover goods 
and services.  Non-natural permitted monopolies are c overed by profit caps of 25% to 50%.  Natural 
monopolies are subject to price or profit controls, or both.120  Mandatory minimum services may also 
be prescribed.  Monopolies must supply only specified products, to prevent having a monopoly on complementary goods, and must not suspend supply to create a shortage or engage in cross-subsidies. 
114. The annual list of sanctioned monopolies (called th e state roster of subjects of natural and 
allowed monopolies) contains the majority state-owned joint-stock companies of Kyrgyzstan Aba 
Joldoru (air services), Kyrgyzneftegaz and Kyrg yzgaz (oil and gas), Kyrgyztamekisi (tobacco 
products), and state-owned enterprises Chui Enterprise (bus stations), Kyrgyz Temir (iron, steel and 
non-ferrous scrap), Kyrgyz Temir Jolu (railway transportation and train maintenance), Bishkek 
International Airport, KyrgyzAir Navigation Servic e, alcoholic producing plants majority-owned by 
Alkoprom, cement plants, construction monopolies, sugar plants, 12 energy companies and 
three telecommunication companies.  There are, in total, three sanctioned natural monopolies and 
41 authorized monopolies.  In addition, there ar e sanctioned regional natural monopolies (49 in 2000) 
and permitted monopolies (39 in 2000).  In 2004, pr ices and tariffs were set on 438 products and 
services of sanctioned monopolies.  Sanctioned monopolies must cease illegal activities, pay fines, refund the losses inflicted on other parties and are subject to expropriation of illegal profits. 
115. The Agency also curbs unsubstantiated ec onomic concentration through mergers and 
acquisitions.
121  Mergers are covered if their combined asset value for the recent fiscal year exceeds 
100,000 times the minimum monthly wage (Som 100), and share acquisitions that exceed 20% of the 
firm's authorized capital.   These are to be notified to the Agency, which has 30 days to make a 
                                                      
117 Monopolistically high prices compensate for unjustified expenses from capacity under-utilization or 
raise profit by reducing the product's quality.  Monopo listically low prices are monopsony practices boosting 
profit or compensating for unjustified co sts at the seller’s expense, or selling at a loss to displace competitors.   
118 Law on Natural and Permitted Monopolies, September 1999, revised December 2004. 
119 In 2004, eight entities were added to the state registry and one was excluded.  Permitted monopolies 
also include entities regulated to control prices, aimed at curbing inflation or in sectors important to public welfare.    
120 For example, the JSC Kyrgyzalco and Kyrgyztamekisi, which have approximately 60% and 16% of 
the respective alcoholic and tobacco ma rkets, are subject to 20% profit cap s and must declare prices to the 
Anti-monopoly Agency.  
121 It also controls liquidation of commercial entities, as well as compliance with anti-monopoly 
legislation during purchase of shares of the "charter" capital of companies (Government Resolution No. 128, 15 March 2005), subject to threshold requirements. Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 75 
 
 
decision.  Mergers and acquisitions are not approved if found to reinforce or establish a dominant 
position and as a result restrict competition. 
116. Agency decisions, including cease and desist or ders, may be appealed to the courts, and it 
may impose economic sanctions and fines.  Losses incurred by other entities from illegal actions can 
be reimbursed through civil legislation.  Firms must  cease illegal activities and pay such profits to the 
government.  Maximum fines (doubled for repeat offences) can be levied on both entities and responsible individuals. 
117. There are currently no authorized cartels in the Kyrgyz Republic, according to authorities. 
Reemtsma-Kyrgyzstan JSC (a joint venture between an overseas company and Kyrgyztamekisi, the 
state regulator of the tobacco industry) has exclusiv e rights to produce cigarettes for ten years and the 
right to set prices for its products independently, i.e. until 2008.
122  Reemtsma-Kyrgyzstan is also on 
the list of sanctioned monopolies. 
118. The Agency enforces legislation aimed at protecting consumer rights.  The Law on 
Advertising covers produc ts and services, including securities, ba nking, and insurance, and aims to 
protect consumers against unfair competition in adve rtising, including misleading advertising.  The 
Law on Protection of Consumer Ri ghts covers goods and services.  It protects consumers against 
development of monopolies and encourages compet ition by prohibiting illegal and discriminatory 
practices that undermine fair and honest competition. 
119. The Agency currently regulates the state gas and energy monopolies, fuel, and 
telecommunications, including prices;  profit margin ceilings are set at 5% (Resolution No. 50, 
10 May 2000) (Chapter IV).123  Its main goals in regulating the fuel and energy sectors are to strike a 
balance between consumer and producer interests, a nd to facilitate competitive markets.  The Agency 
controls petroleum prices through profit margin  ceilings for six companies (Munai Myrza Oil LLC, 
Munai Myrza Opt LLC, Munai Myrza Vostok, Munai Myrza Zapad, and Munay Myrza Yug).  The Government subsidizes household heating and hot water costs.  Prices of urban water, sewage, and public transport are set by city or oblast  administrations and are regulat ed as sanctioned monopolies by 
local anti-monopoly offices.  Domestic passenger flights and fares of the national air carrier 
Kyrgyzstan Aba Joldoru (NACKAZ) are regulated by  the Anti-monopoly Agency.  Most other prices, 
including agricultural, were deregulated early in the country's economic transition.  
(v) Intellectual property rights 
120. Government policy is to continue to develop modern intellectual property protection.  The 
Civil Code (Section V, effective from March 1998, revised 2003) established exclusive intellectual 
property rights and protection over copyright (Cha pters 54 and 55), patents (Chapter 56), plant and 
animal breeding (Chapter 57), undisclosed inform ation from illegal use (Chapter 58), trade names, 
trade marks, and appellations of origin of goods (Chapter 59). 
121. Specific laws also cover patents (effec tive 4 February 1998);  patent attorneys 
(28 February 2001);  secret inventions (31 Ma rch 2006), copyright and neighbouring rights 
                                                     
 
122 Government Resolution on Measures Regarding Support and development of Cigarette 
Manufacturing, No. 18, January 1998. 
123 The 2004 amendments to the 1994 Law on Restrictions of Monopolistic Activities, Development 
and Protection of Competition transferred the anti- monopoly functions in communications and energy 
(excluding heating) to the sectoral regulating bodies, namely the State Agency for Energy and the National 
Communications Agency.  However, the right to regulate these services, including prices, reverted to the Anti-
monopoly Agency in 2006 (Presidential Decree No. 57, 13 February 2006).   WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 76 
 
 
(23 January 1998, revised 2003);  trade marks, service marks, and appellations of origin 
(28 January 1998, revised 2003);  PC, software progr ams, and databases (4 April 1998);  topology of 
integrated circuits, and commercial secrets (10 April 1998);  service inventions, utility models, and 
industrial designs (16 July 1999);  trade names (23 December 1999);  and legal protection of selective 
breeding achievements (13 June 1998, revised 27 February 2003 and 31 March 2005) (Table II.1).124 
122. The authorities believe that Kyrgyz legislation, as reviewed by WTO Members, complies 
fully with the WTO Agreement on Trade-Related As pects of Intellectual Property Rights (TRIPS).  
The State Intellectual Property Agency (also known as Kyrgyzpatent), established in 1996, 
administers the legislation and registers patents, trade marks, industrial designs, copyrights and 
associated rights, and plant and animal breeding varieties.  Along with the Trade Ministry, it is a 
WTO contact point under TRIPS. 
123. The Kyrgyz Republic acceded to the World In tellectual Property Organization (WIPO) in 
February 1994, and belongs to the main related in ternational treaties, including the Patent Law Treaty 
(2005), the Nairobi Treaty (2004) and th e Madrid Protocol (2004) (Table III.6).125  International 
agreements prevail if provisions differ from domest ic legislation.  The Kyrgyz Republic belongs to 
the CIS Interstate Council for Industrial Property Pr otection and the Eurasian Patent Convention.  
Kyrgyzpatent has signed bilateral agreements on i ndustrial property protection with a number of 
countries, including the Russian Federation, Kaza khstan, Uzbekistan, Armenia, Azerbaijan, and 
Turkey. 
Table III.6 
Kyrgyz membership of international treaties on intellectual property, 2005  
International treaty Da te of entry into force 
WIPO Convention 25 December 1991 
Madrid Agreement (marks) 25 December 1991 
Paris Convention (industrial property) 25 December 1991 
Patent Cooperation Treaty 25 December 1991 
Nice Agreement (international classification of goods and services) 10 December 1998 
Locarno Agreement (international classificati on for industrial designs) 10 December 1998 
Vienna Agreement (international classification of th e figurative elements of marks) 10 December 1998 
Berne Convention (literary and artistic works) 8 July 1999 
Strasbourg Agreement (international pa tent classificati on) 10 September 1999 
UPOV Convention  26 June 2000 
WIPO Copyright Treaty  6 March 2002 
Trademark Law Treaty 15 August 2002 
WIPO Performances and  Phonograms Treaty 15 August 2002 
Phonograms Convention 12 October 2002 
Hague Agreement (international depos it of industrial designs) 17 March 2003 
Budapest Treaty (deposit of micro-organisms) 17 May 2003 
Rome Convention (performers, producers of phonogr ams and broadcasting organizations) 13 August 2003 
Madrid Protocol (international re gistration of marks) 17 June 2004 
Nairobi Treaty (olympic symbol) 18 November 2004 
Patent Law Treaty 28 April 2005 
Source:  Kyrgyz authorities.  
                                                      
124 The legislation was notified to the WTO and examined by the Council for TRIPS. 
125 The Kyrgyz Republic belongs to 20 of the 23 WIPO-administered treaties.  It is not a member of the 
Film Register Treaty (International Registration of Audiovisual Works) or the Washington Treaty (Intellectual 
Property in Respect of Integrated Circuits, not yet in force);  it is considering joining the Brussels Convention 
(Distribution of Programme-Carrying Signals Transmitted by Satellite). Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 77 
 
 
124. The Kyrgyz Republic has registered 1,902 inventions (1,502 Eurasian patents), 
1,558 industrial designs, 6 utility models, and 37,1 71 trade marks (30,587 registered under the Madrid 
Agreement) (Table III.7). 
Table III.7 
Intellectual property statistics, 2001-05 
(Number)  
2001 2002 2003 2004 2005a Type of 
intellectual property  App. Reg. App. Reg. App. Reg. App. Reg. App. Reg. 
P a t e n t s            
 - inventions 92 60 128 65 180 96 149 121 122 95 
 - utility models 6 9 8 6 10 5 9 7 3 5 
 - industrial designs 18 8 12 5 18 9 21 15 35 15 
Trade marksb 2,489 
(2,102) 295 2,128 
(1,809) 368 2,328 
(1,934) 471 2,617 
(2,139) 331 2,961 
(2,491) 34 
a Until December. 
b Figures in brackets refer to applications unde r the Madrid Agreement (i.e. from overseas). 
Note: App. = applications;  Reg. = registrations.  
Source:  Kyrgyz authorities.  
(a) Copyright and related rights 
125. Protection for copyright and related rights covers  the creation of works of science, literature, 
arts, invention, and other products  of intellectual activity, including literary, artistic, audiovisual, and 
musical objects as well as computer software and databases, which are also covered by separate legislation.  Protected rights include exclusive mo ral and economic rights.  Neighbouring rights apply 
to performers, broadcasting organizations, including cable distribution, and to phonogram producers, 
in accordance with international agreements.  The te rm of copyright is for the author’s life plus 
50 years, and for 50 years for neighbouring rights.  Copyright violations are subject to civil, criminal, and administrative sanctions.  This includes restorat ion of the situation, cessation of illegal acts, and 
payment, at the owner's request, of either damag es, illegally obtained revenue or indemnity set at 
between 20,000 and 50,000 times the minimum monthly wage (Som 100).  Imprisonment can be for 
up to three years (five years for repeated offences) .  Court injunctions can prohibit illegal activities, 
and such works and related equipment may be confiscated. 
(b) Patents  
126. Patents for inventions are protected by exclus ive rights for 20 years from the priority date 
(generally filing date of application if all necessar y documentation is supplied), extendable to 25 years 
for pharmaceuticals.  Foreign residents must file app lications using a local patent agent registered by 
Kyrgyzpatent.  An invention is pate ntable if it is new and industrially  applicable.  The courts can issue 
non-exclusive compulsory licences if an invention is  insufficiently used (within three years), and the 
Government may do so in emergencies (disasters, ca tastrophes, and big accidents), in the interests of 
national security, for non-commercial use, or if necessar y to correct an anti-competitive situation.  No 
compulsory licences have been issued.  The right -holder may ask for the violation to be stopped, 
products to be confiscated, and for the offender eith er to indemnify losses (including lost profit and 
compensation for moral damage), pay the illegally  obtained income, or provide compensation of 
10,000- to 50,000-times the minimum monthly wa ge (Som 100).  Imprisonment can be for up to 
three years (five years for repeat offences).   WT/TPR/S/170/Rev.1 Trade Policy Review 
Page 78 
 
 
(c) Utility models and industrial designs 
127. Utility models and industrial designs are c overed in the Patent Law, the 1999 Law on 
Services Inventions, Utility Models  and Industrial Designs, and the 2006 Law on Secret Inventions.  
Protection is for five years (extendable to eight) fo r utility models and ten years (extendable to 15) for 
industrial designs from the application date. 
(d) Trade marks and other marks, including trade names 
128. Registration of trade marks (including service marks and collective marks) is valid for 
ten years from the priority date (generally filing da te of application if all necessary documentation is 
supplied), renewable for further ten-year periods.  Foreign residents must file applications thr ough a 
local patent agent registered by Kyrgyzpatent.  Regi stration may be withdrawn if the mark is not used 
for three years.  Trade marks that are sufficien tly similar to cause confusion with well-known trade 
marks may not be registered.  Trade marks are pr otected by civil, administrative, and criminal 
sanctions.  Civil remedies cover ceasing the infri ngement, recovering resulting losses, and destruction 
of illegal goods or services.  Imprisonment for up to  six months may be imposed for illegal use of a 
trade mark.  
129. Registered trade names are protected for ten years, renewable for further ten-year periods.126  
Civil, administrative, and criminal sanctions appl y.  Foreign legal entities may register their trade 
name through a local patent agent registered by Kyrgyzpatent.  
(e) Geographical indications 
130. Geographical indications (appellation of origin ) cover historical names of a geographical 
region, and may be registered for ten years, renewa ble for ten-year periods.  Foreign residents must 
file applications using a local patent agent regist ered by Kyrgyzpatent.  Geographical indications are 
protected by civil, administrative, and criminal sanctions.  Remedies include ceasing the infringement;  
reimbursement of losses, and payment to the Govern ment of any profit exceeding losses, recovered;  
and removal of labelling from products.  Kyrgyzpate nt maintains a list of national geographical 
indicators, such as for mineral waters. 
(f) Layout designs (topology) of integrated circuits 
131. Exclusive economic rights are provided for the u se of registered topologies for ten years from 
the application date for registration or first use, whic hever is the earlier.  Foreign residents must file 
applications using a local patent agent registered by Kyrgyzpatent.  The registered owner may demand 
cessation of illegal use and restoration of the situa tion, including reimbursement of losses, including 
the amount of unlawful revenues.  Fines of up to 10 % of the losses awarded may also apply.  Illegal 
copies and related equipment can be confiscated.   
(g) Plant variety protection and commercial secrets 
132. Protection for plant varieties and animal br eeds is provided under the 1998 Law on Legal 
Protection of Achievements in (Biological) Selecti on.  Protection for plant varieties is for 20 years 
from the date of registration in the State Register of Protected Breeding Achievements ;  protection for 
grapes, arboreal decorative, fruit crop, and forest tr ees, including their stocks, and animal breeds, is 
for 25 years. 
                                                      
126 Non-registered trade names, including of foreign le gal entities, may also be protected where they are 
publicly recognized due to continuous and intensive use in the Kyrgyz Republic.  Kyrgyz Republic WT/TPR/S/170/Rev.1 
 Page 79 
 
 
133. Commercial secretes are protected by separate legislation that imposes obligations on 
employees to safeguard commercial secrets.  Such information must have actual or potential commercial value to third parties due to its secrecy, not be accessible legally, and be kept confidential 
by the owner.  Civil and criminal sanctions apply. The Civil Code also protects undisclosed 
information, which is a trade secret, and also ob liges a commercial representa tive to keep confidential 
all information learned about sales transactions, ev en after cessation of employment.  Damages are 
available for misappropriation by persons obtaining  such information illegally or divulging it in 
violation of a contractual obligati on.  Imprisonment for illegally acquiri ng a trade secret can be for up 
to six months.  The Criminal Code also provides penalties for copying information from computers. 
(h) Parallel imports 
134. Both patent and copyright legislation allows fo r the exhaustion of intellectual property rights, 
thereby, in practice, apparently allowing paralle l imports and not sanctioning sole distributorships.
127  
The Customs Code does not, however, refer to parallel  imports.  In practice, given the poor record of 
Customs in detecting counterfeit pr oducts (see below), the legality of  parallel imports has not become 
an issue.128   
(i) Enforcement 
135. Intellectual property is protected by civil, administrative, and criminal sanctions, where 
applicable under relevant legislation.  The Civil Code provides court relief to enforce obligations recognized by civil rights, including court orders  for specific performanc e of an obligation, 
compensation for losses, and penalties. Recovery of losses includes both direct and consequential 
damages, and lost profits, as well as of illegal prof its.  Compensation for moral rights is also available, 
including protection of honour, dignity, and business re putation.  Under the Ci vil Code, administrative 
enforcement of rights is exercised only in cases stipulat ed by law, and such decisions can be appealed to 
the courts.  The Appellate Council reviews decision s by Kyrgyzpatent on patents, trade marks, and 
appellations of origin.  Anti-monopol y legislation also prohibits mis-us e of intellectual property.  The 
1997 Criminal Code detailed the of fences of violating copyright, ne ighbouring rights, and patents, and 
illegal use of trade marks and appella tions of origin (Articles 150 and 191). 
136. An Extended Committee, formed in 1999, helps coordinate efforts to protect and enforce 
intellectual property.  Checks and raids to det ect illegal audio and video activities have been 
intensified, and a special unit to fight intellect ual property infringements was established in the 
Ministry of Foreign Affairs.   An Inter-Agency Committee on Combating Infringements of Intellectual 
Property Rights was also established in 2004, but its  activities have dwindled;  these are to be 
restored.
129  It has two working groups, one on audio, video and software, and the other on medical 
and food products.  According to studies by the Ky rgyzpatent's Related Rights Centre, the incidence 
of pirated audiovisual products has been reduced, but remains high at 88% in 2005 (90% in 2004).  According to the authorities, police seizures have in creased substantially.  The authorities indicate that 
the relatively high prices of licensed products and the limited number (two) of official right-holders 
encouraged consumption of illegal copies. 
                                                     
 
127 Article 16 of Law on Copyright and Related Rights and Article 13(4) of the Patent Law. 
128 Allowing parallel imports provides greater co mpetition and benefits consumers and the economy 
generally, by lowering prices.  It is therefore in the inte rests of the Kyrgyz economy to  ensure that the necessary 
enhancement of border enforcement of pirated products does not impede parallel (legitimate) imports.  
129 Government Resolution No. 93, February 2004.  The Committee includes deputy ministers, heads 
and deputy heads of law enforcement bodies. WT/TPR/S/170/Rev.1 Trade Policy Review 
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137. The Customs Code provides for border measures on intellectual property:  these allow for the 
suspension of the release of goods if intellectual pr operty rights appear to have been violated.  The 
right holder must apply to Kyrgyzpatent and to Cust oms to have the products included on the registrar 
of products subject to customs control.  Cust oms may then seize the suspected pirated products 
temporarily.130  There have been no such cases (no appli cations from right holders).  Customs also 
have ex officio powers to suspend cl earance of suspected counterfeit goods.131  However, weak 
enforcement of intellectual property appears to be  a regional problem, as well as a major Kyrgyz 
problem.  Despite these new enforcement powers by Customs, and many regional agreements covering intellectual property, the incidence of impor ted pirated copyright and trade mark products in 
the Kyrgyz Republic still seems high, and no cases have  been filed with the CIS Economic Court.  
Moreover, Kyrgyz Customs have never used their po wers to prevent illegal imports.  Enforcement of 
intellectual property at the border therefore seems to be a major weaknesses, since most pirated 
products in the Kyrgyz Republic are claimed to be imported from neighbou ring countries (China, 
Kazakhstan, the Russian Federation, and Ukraine) through formal channels (rather than smuggled) 
and sold through major retail outlets.
132  Questions also arise as to the competence of courts, and the 
judicial system generally, to handle intellectual property cases. 
 
                                                      
130 Suspension is for ten days, extendable to 20 days, during which the right-holder must provide proof 
of initiation of court proceedings against the importer.  The right-holder may have to provide a security 
sufficient to cover the importer's losses. 
131 Government Resolution on Approval of Regulation on the Procedure of Customs Control over 
Goods Containing Intellectual Property Objects, No. 694, November 2000 and Article 349 of the Customs Code. 
132 However, given that substantial smuggling of thes e products already exists , stricter enforcement 
efforts by Customs to prevent pirated imports may be frustrated, at least in the short term, by more smuggled illegal goods.