RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/KAZ/66 
29 May 2006 
 (06-2548) 
Working Party on the 
Accession of Kazakhstan Original:   English 
 
 
 
ACCESSION OF KAZAKHSTAN 
 
Additional Questions and Replies  
 
 
 The following submission, dated 2 May 2006, is being circulated at the request of the Delegation of the Republic of Kazakhstan.    
_______________ 
  WT/ACC/KAZ/66 
 Page i 
 
 
  TABLE OF CONTENTS 
 
 
II.  ECONOMIC POLICIES..........................................................................................................1  
- Foreign Exchange and Payments ............................................................................................1  
-  Investment Regime.............................................................................................................. ......7  
- State Ownership and Privatization .......................................................................................17  
- Pricing Policies ............................................................................................................... .........26  
- Competition Policy............................................................................................................. .....33  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................37  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................41  
- Trading Rights ................................................................................................................. .......41  
A. IMPORT REGULATIONS....................................................................................................58  
- Customs tariff................................................................................................................. .........58  
-  Other duties and charges....................................................................................................... .59 
- Tariff rate quotas, tariff exemptions.....................................................................................60  
- Fees and charges for services rendered.................................................................................63  
-  Application of internal taxes to imports ...............................................................................65  
- Quantitative import restrictions, incl uding prohibitions, quotas and licensing 
systems ........................................................................................................................ .............69  
- Customs valuation.............................................................................................................. .....79  
- Rules of origin ................................................................................................................ .........86  
- Other customs formalities ...................................................................................................... 90 
-  Preshipment inspection ......................................................................................................... .92 
- Anti-dumping, countervailing duti es, and safeguard regimes............................................93  
B. EXPORT REGULATIONS ...................................................................................................95  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........95  
- Export rest rictions ............................................................................................................ ......99  
- Export subsidies ............................................................................................................... .....101  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .......................103  
- Industrial роlicу, including subsidies..................................................................................103  
- Technical barriers to trade, standards and certification...................................................109  
- Sanitary and phytosanitary measures.................................................................................121  
- Trade-related investment measures ....................................................................................138  
- State-trading enterprises...................................................................................................... 140 
-  Free zones, special economic areas......................................................................................140  WT/ACC/KAZ/66 
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  -
 Government procurement....................................................................................................143  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.....................................144  
- Trademarks, including  service marks.................................................................................144  
- Geographical indications, including appellations of origin...............................................144  
- Requirements on undisclosed information, including trade secrets and test data..........145  
- ENFORCEMENT.................................................................................................................147  
VII. TRANSPARENCY ...............................................................................................................153  
VIII.  TRADE AGREEMENTS .....................................................................................................156  
ANNEX I........................................................................................................................ .....................164  
ANNEX II ....................................................................................................................... ....................168  
ANNEX III...................................................................................................................... ....................171  
ANNEX IV....................................................................................................................... ...................206  
ANNEX V ........................................................................................................................ ...................207  
ANNEX VI....................................................................................................................... ...................208  
ANNEX VII ...................................................................................................................... ..................217  
ANNEX VIII..................................................................................................................... ..................223  
ANNEX IX....................................................................................................................... ...................232  
ANNEX X ........................................................................................................................ ...................234  
ANNEX XI....................................................................................................................... ...................247  
 
  WT/ACC/KAZ/66 
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  II.  ECONOMIC POLICIES 
- Foreign Exchange and Payments Question 1 We appreciate that foreign exchange su rrender requirements are no longer enforced. 
We also note that Kazakhstan subscribes to Arti cle VIII of the IMF's Articles of Agreement 
which says that "no member shall, without Fund a pproval, impose restrictions on the making of 
payments and transfers for current international transactions." 
Our review of WT/ACC/KAZ/9 and WT/ACC/KA Z/57, however, suggest that Kazakhstan 
maintains restrictions on the availability of fo reign exchange for current account transactions. 
If this provides to be true, such restrictions i nhibit legitimate trade payments and appear to 
violate GA ТТ Article III on national treatment and Article ХI on import restrictions. 
We have the following questions and comments to  help us explore what restrictions actually 
exist, and if so, how they work.  In the cont ext of WTO accession, we expect that Kazakhstan 
will either be able to justify these measu res, or eliminate them prior to accession. 
Law "On Currency Regulation" of December 1996 and subsequent amendments ensure 
President's right to restrict/suspend currency transactions for the purpose of implementing 
international obligations and in "emergency" situations. 
Наvе these provisions been amended or superseded by 8 May 2003 law?  Is President's 
authority in these areas still guaranteed? 
Answer:
 
In accordance with the new Law of the Republic of Kazakhstan No. 57-III "On Currency Regulating 
and Currency Control" of 13 June 2005, which en tered into force on 18 December 2005, President's 
right to make decisions on restriction or suspension of any currency transactions has been discontinued. 
The new Law introduced a special permission regime. This regime will be a pplied only in emergency 
cases when there is a threat to the national econom ic security of the Republic of Kazakhstan and the 
stability of its financial system, and when the situ ation can not be solved by other economic policy 
instruments.  This provision does not contradi ct to the relevant IMF and WTO agreements. 
The decision on introduction and extension of th e special permission regime, procedures and the 
terms for introduction of the special permission as well as the list of financial transactions that require 
the special permission shall be made by the Presid ent of the Republic of Kazakhstan jointly with the 
Government of the Republic of Kazakhstan and the National Bank of  the Republic of Kazakhstan. 
The special permission regime shall be introduced onl y for the term necessary to eliminate the threat 
to the national economic security and stab ility of the national financial system.  
The special permission shall be issued by the Na tional Bank provided that financial transactions are 
being conducted by residents and non-residents with the purpose to prevent a threat to human life and 
health, ensure national security and to fulfil intern ational obligations of th e Republic of Kazakhstan, WT/ACC/KAZ/66 
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  as well as in cases when the transactions are called to significantly improve the balance of payment of 
the Republic of Kazakhstan and the domestic currency market.  
No special permission is required in cases when the National Bank of the Republic of Kazakhstan 
and/or the Ministry of Finance of the Republic  of Kazakhstan participate in the transaction. 
Residents and non-residents have no right to ma ke transactions with currency subject to special 
regime without special permission from the Na tional Bank of the Republic of Kazakhstan. 
The Law "On Currency Regulating and Currenc y Control", available through document 
WT/ACC/KAZ/66/Add.1. 
Question 2 
Document WT/ACC/SPEC/KAZ/9 states that non-residents саn export foreign exchange up to 
US$ 3,000 while resident natural persons can export u р to US$ 10,000.  How is such 
discrimination related to the importation of go ods and services?  Please explain the reason for 
the difference in treatment of "non-resi dents" and "resident natural persons." 
Answer:
 
Pursuant to the Law "On  Currency Regulating and Cu rrency Control" of 13 June 2005, both resident 
and non-resident natural persons ar e treated equally as to the export of foreign currency in cash from 
the Republic of Kazakhstan. 
Should resident or non-resident natural persons  export foreign currency from the Republic of 
Kazakhstan in the amount exceeding the equivalent of  US$ 10,000, they shall submit to the customs 
authorities documents proving the legal origin of exported foreign currency in cash for the amount 
exceeding the equivalent of US$ 10,000.  
The list of documents, which could prove the legal origin of exported foreign currency in cash, is 
approved by the Decree of the Board of Directors of the National Bank of the Republic of Kazakhstan 
No. 133 of 29 October 2005.  They list includes the following: 
− Income tax return filled out in the form No. 200 or No. 210 (tax payer's copy); and 
− Customs declaration certifying import of fore ign currency in cash to the Republic of 
Kazakhstan.  
Both import and export of foreign and/or national currency in cash to and from the territory of the 
Republic of Kazakhstan by both resident or non-reside nt natural persons, exceed ing the equivalent of  
US$ 3,000 shall be subject to mandatory declarat ion to the customs authority of the Republic of 
Kazakhstan.   
Question 3 
Law No. 2200 "On Licensing" appears to mandate а licence for "transfers of residents to non-
residents made as payment for importation of goods, works, and services where advance 
payments exceed 180 days. 
Such requirements complicate normal trade transactions. While not а violation of IMF 
Article VIII per se, it could be, if combined with  other forex restrictions, for example, an import 
prepayment requirement.  WT/ACC/KAZ/66 
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  Answer:  
The existing division of commercial loans into cu rrent and capital transactions depending on the 
duration of foreign trade transaction has been estab lished by the previous Law "On Foreign Currency 
Regulating" of 14 April 1993.  IMF approved this division since it took into account specificity of settling accounts in foreign trade transactions. 
The licensing requirement only apply to reside nts for capital account transactions related to 
export/import operations for a period exceeding 180 da ys. A Single Licence allows residents to return 
into their accounts receipts from export transactions  and advance payments for import transactions 
exceeding 180 days in cases when the terms of export/import operation contracts have not been 
fulfilled.  Residents shall determine the length of  export/import contracts themselves, which is not 
regulated by the National Bank of the Republic of Kazakhstan. 
There are no other currency restrictions in Kazakhsta n with regard of commercial loans. Pursuant to 
the Law "On Currency Regulating and Currency Contro l" of 13 June 2005, as of 1 January 2007, the 
licensing requirement with regard to commercial loans will be eliminated. 
Question 4 
Wе understand Kazakhstan has plans to liberalize the capital account by 2007. What is the 
status of that effort? 
Concerning the draft law " Оn Сurrеnсy Regulation and Control":  
The Response to Question 8 of Document WT/ACC/KAZ/57 says that in order to implement the 
liberalization program, а new draft Law of the Republic of Kazakhstan " Оn Сurrеnсу 
Regulation and Control" was developed and submitted to parliament in September 2004. 
The provisions of that law are described in Anne x 2 and appear to retain significant levels of 
control and restriction on the use of forei gn exchange, even for the current account. 
What is the status of this law?  May we have а сору ? 
Answer:
 
The Law of the Republic of Kazakhstan No. 57-III "On Currency Regulating and Currency Control" 
of 13 June 2005 envisages the implementation  of the second and third phases of the currency regime 
liberalization in the Republic of Kaza khstan, consisting of the following: 
− systematization of foreign currency regulations; 
− development of adequate legal framework fo r implementation of foreign currency regime 
liberalization policy; and 
− staged  transition to principles of fu ll convertibility of the national currency. 
According to the Law, licensing of all foreig n currency transactions will be removed as of 
1 January 2007 (please see document WT/ACC/KAZ/66/Add.1). 
Question 5 Concerning the transaction passport described in paragraph 25, we remain confused as to its 
purpose, and note that it places а particular bureaucratic burden оn trade.  W е seek elimination 
of this measure from the date of accession. WT/ACC/KAZ/66 
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  Answer:
 
The transaction passport requirement is not used  as quantitative restriction of export-import 
operations, which creates  a barrier for foreign tr ade activity. Consequently, the transaction passport 
requirement does not contradict to Article XI of  GATT 1994 on "General Ca ncellation of Quantitative 
Restrictions".  
In accordance with the currency le gislation of the Republic of Kazakhstan, the transaction passport is 
a basic document required for monitoring of currency and trade flows in the course of foreign trade 
operation.  The transaction passport is necessar y for provision of accounting and reporting on 
currency transactions.  Key objective of this docum ent is reflection of basic data on foreign trade 
contract (amount, term, information, identifying whet her residents or non-residents are participants of 
the foreign trade operation).  The transaction passport shall be filled in by resident-exporter/importer. 
Identification number, assigned to the transaction passpor t, is key for analysis of data on movement of 
financial resources and commodities.  Analysis of da ta is important for mon itoring of export revenues 
and obtaining of import commodities, including for deve lopment of the balance of payments statistics. 
Accuracy and reliability of balance of payment statistics has a direct impact on the quality of 
economic policy decisions ma de in Kazakhstan.   
Pursuant to the Law "On Currency Regulating and Currency Control" of 13 June 2005, as of 
1 January 2007, participants of foreign trade operati ons will be able to set the dates/time-frame for 
fulfilment of contractual obligations themselves.  Th en, the transaction passport will be used as a tool 
for making analysis and prognosis of inflow an d use of foreign currency in the Republic of 
Kazakhstan. Procedures for obtaining transaction passport will be significantly simplified.  In 
particular, it is envisaged to reduce the number of  bodies, whose approval is required for signing the 
transaction passport, and to eliminate a number of  requirements with regard to foreign trade 
participants on provision of additional information.  
As the experience of other countries show, elimin ation of the transaction passport requirement will 
lead to substantial increase in direct regular reporting of enterprises, which is found more 
burdensome.  With the transaction passport requirement in place, small and medium sized enterprises 
engaged in foreign trade business with non-residents will not need to provide balance of payments 
statistical reports.    
Question 6 
This section needs substantial work to lay out in а simple, clear fashion, and to address the 
reasons Kazakhstan continues to ret ain extensive controls on the acquisition and use of foreign 
exchange, even for the current account. 
We remain concerned and seek substantial elimin ation or revision of this system prior to 
accession to remove the trade restrictive effects.  W е seek а commitment that, at the least, 
enumerates the schedule for the removal of these re quirements, and confirms that in the future 
authority to impose such controls will only be  used in conformity with WTO provisions. 
Answer:  
Both non-resident natural persons and juridical persons have the righ t to purchase, sell, and engage in 
exchange operations with forei gn currency without restrictions. 
Resident juridical persons have the right to pur chase foreign exchange for Kazakhstan's national 
currency - tenge (KZT) based for the purposes esta blished legally, including for the purpose of  WT/ACC/KAZ/66 
 Page 5 
 
 
  making payments and money transfers to non-reside nts.  Therefore, the existing legal framework 
creates no barriers for undertaking legall y established trade-related transactions. 
Pursuant to the Law "On Currency Regulating and Currency Control" of 13 June 2005, as of 
1 January 2007, all limitations applied to resident- ju ridical persons with regard to purchase of foreign 
currency will be eliminated. 
Question 7 Paragraph 15 of the draft report indicates that  non-resident legal persons can purchase foreign 
currency in Kazakhstan.  Would Kazakhstan plea se clarify whether there are any limitations on 
the amount, or on the purpose and procedure for purchasing foreign currency.  In addition, can 
non-resident legal persons sell foreign currency?  Are there any limitations on the amount, purpose and procedure? 
Answer: 
 
With the purpose to unify the ex isting currency legislation of the Republic of Kazakhstan with the 
international standards, Kazakhstan adopted th e new Law No. 57-III "On Currency Regulating and 
Currency Control" of 13 June 2005, which entere d into force on 18 December 2005, as well as the 
new Rules on Currency Transactions in the Republ ic of Kazakhstan as approved by the Resolution 
No. 134 of the Board of Directors of the Na tional Bank of the Republic of Kazakhstan of  
29 October 2005.  The texts of these le gal acts are available through document 
WT/ACC/KAZ/66/Add.1. 
Subject to those legal acts, non-resident juridical persons may purchase and/or sale foreign currency at 
the domestic market of the Republic of Kazakhstan without any restrictions/limitations as to the 
quantity, purchase and/or sales procedures, and purpose. 
It should be noted that due to the adoption of the new Rules, the following regulations  have become 
invalid: 
− the Rules on Currency Operations, adopted by Resolution No. 115 of the Board of the 
National Bank of 20 April 2001; 
− the Rules on Registration of Capital Account Transactions and Opening of Foreign Bank 
Accounts, adopted by Resolution No. 225 of the Board of the National Bank of 4 July 2003; 
and 
− the Rules on Licensing of Transactions Related to Currency Valuables adopted by the 
Resolution No. 257 of the Board of the National Bank of 25 July 2003. 
Question 8 Paragraph 18 of the draft report indicates th at, after obtaining an Operational Licence, 
residents can engage in capital account transa ctions. Please could Kazakhstan provide an 
explanation of the regulations governing the sale  or purchase of foreign currency related to 
direct investment by non-residents. 
Answer: 
 
The existing legislation provides for no restricti ons of purchase by non-residents of foreign currency 
at the domestic currency market of the Republic of Kazakhstan through the authorized banks and 
exchange offices. WT/ACC/KAZ/66 
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  Subject to Article 21 of the new Law No. 57-III "O n Currency Regulating and Currency Control" of 
13 June 2005, which entered into force on 18 Dece mber 2005, non-residents shall register direct 
investments made into Kazakhstan a nd residents shall register direct investments to foreign countries. 
Such registration is of a statistical nature only and is required for the purpose to collect the statistical 
data for the balance of payments. 
According to Article 58 of the Rules on Currency Tr ansactions in the Republic of Kazakhstan No. 134 
of 29 October 2005 investments into Kazakh enterp rises in the amount exceeding US$ 300,000 shall 
be registered with the National Bank of the Republic  of Kazakhstan. However, the registration is not 
of a "permission requirement" nature.  
To register (or re-register) currency agreement (herei nafter – registration), resident-participant of the 
currency agreement shall apply to a branch of the National Bank located close to the place of 
permanent residence of the physical person or  permanent address of the juridical person. 
Registration certificate or denial given in written fo rm shall be issued within ten working days from 
the date of submission by app licant of all required documents. 
Registration certificate is issued to natural and juri dical persons. When a branch (or representative) of 
a resident juridical person applies for registration of  a currency operation conducted by the branch (or 
representative), registration certificate shall be issued to the juridical person with indication of its 
branch (or representative).  Further, the reports on such operations shall be submitted by the branch 
(or representative). 
Registration certificate is valid until complete discha rge of liabilities by the parties to the agreement 
(including liabilities, not discharged by the da te of expiry of the currency agreement). 
Registration certificate shall be consid ered invalid in the following cases: 
− re-registration of currency agreement and issue of a new registration certificate; 
− if currency agreement is found invalid pu rsuant to the national legislation;  
− after receiving by the National Bank of a written confirmation on full discharge of liabilities 
by the parties, full writing off (forgiving) of  debts and/or nullification of the agreement; 
− after receiving by the National Bank of a wr itten confirmation from a resident on closing 
down its account in a foreign bank; 
− after receiving by the National Bank of a wr itten confirmation from a resident on closing 
down of the branch and/or representative, fo r whom the account was opened in a foreign 
bank; and 
− in view of impossibility of discharge of liabilities due to liquidation of a juridical person or 
due to death of a physical person in case if there is no legal successor.  
If a non-resident makes direct investments into  Kazakh enterprises and meets the registration 
requirements, then such a non-resident may export its investments and proceeds from those 
investments from Kazakhsta n with no restrictions. 
Subject to Article 22 of the Law, the operati onal licence shall be required only from resident 
professional equity market participants.  The licence  authorizes them to make investments abroad 
both from own as well as attracted financial resources. 
The Law "On Currency Regulating a nd Currency Control" abolishes all kinds of licenses for currency 
transactions as of 1 January 2007.   WT/ACC/KAZ/66 
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  Question 9 
Paragraphs 18 and 25:  We take note on the information by Kazakhstan that the licensing 
requirement for capital account transactions rel ating to export proceeds or import prepayment 
after 180 days will be abolished by end 2007.  We  would like to see this requirement eliminated 
upon accession. 
Answer:  
In accordance with the new Law of the Republic of Kazakhstan No. 57-III "On Currency Regulating 
and Currency Control" of 13 June 2005, which en tered into force on 18 December 2005, the licensing 
regime (permitting procedure) for all foreign currenc y transactions will be completely eliminated as of 
1 January 2007. 
-  Investment Regime Question 10 Paragraph 37:  We take note of the rather  exceptional method of restricting foreign 
participation in banks, pension funds and insura nce/reinsurance companies: as a percentage of 
the aggregate charter capital of all respective companies in Kazakhstan.  Could Kazakhstan 
explain the rationale of this method and why the usual method of limiting the direct percentage 
of ownership in an individual company is not used in these sectors. 
We consider the chosen limitation method as not on ly very difficult to apply, but effectively an 
investment barrier that is not comp atible with WTO.  The possibility to invest in these sectors is 
dependent on the extent of the domestic investme nt in the same sector, which always has to be 
the double of that of the companies with foreign  participation.  If there is not considerable 
domestic investment in the sector concerned, no foreign investment will be allowed either.  Can 
Kazakhstan explain the rationale of this system? 
Answer: 
 
Within the framework of the national program on li beralization of the financial sector and with the 
purpose to reduce the barriers for foreign capital par ticipation in the financial services market of 
Kazakhstan, significant amendments ha ve been introduced to the relevant national legislation.    
1.  In accordance with the Law of the Repub lic of Kazakhstan No.107-III "On Amendments and 
Addenda to Legislative Acts of the Repub lic of Kazakhstan on Issues of Licensing and 
Consolidated Supervision" of 23 December 2005,  the following restrictions applied with 
regard to banks with foreign capital participation have been eliminated: 
 - the total paid-up capital of banks with foreign capital participation shall not exceed 
50 per cent of the aggregate paid-up cap ital of all banks of Kazakhstan;  
 - not less than one member of the Board of  a bank with foreign capital participation 
shall be a citizen of the Republic of Kazakhstan and shall provide documents 
certifying at least three years of manage rial work experience in the bank of 
Kazakhstan and their knowledge of the banking and economic legislation of 
Kazakhstan; 
 - at least 70 per cent of employees of a bank with foreign participation shall be citizens 
of Kazakhstan; and 
 - banks with foreign capital participati on shall deposit into internal capital the 
resources in the amount and order established by the authorized body. WT/ACC/KAZ/66 
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  2.  In accordance with the Law of the Repub lic of Kazakhstan No. 128-III "On Amendments and 
Addenda to Legislative Acts of the Repub lic of Kazakhstan on In surance Issues" of 
20 February 2006, the following restrictions app lied with regard to insurance (reinsurance) 
companies with foreign capital participation have been eliminated: 
 - the total paid-up capital of insurance co mpanies with foreign participation providing 
general services shall not exceed 25 per cent of the aggregate paid-up capital of 
general insurance companies;  
 - the total paid-up capital of insurance co mpanies with foreign participation providing 
life insurance services shall not exceed 50 per cent of the aggregate paid-up capital of 
life insurance companies; and 
 - not less than one third of members of  the Board of Directors and Committee of 
insurance (reinsurance) compan ies with foreign capital participation shall be citizens 
of the Republic of Kazakhstan. Non-resident s members of the Board of Directors and 
Committee of insurance (reinsurance) comp anies shall provide documents certifying 
at least three years of managerial work  experience in financial companies.  
3.  At the same time, with rega rd to such socially sensitive sphe res, as pension funds and pension 
assets investment management companies,  the following provis ions apply:   
 -  the total registered capital of pension fu nds with foreign capital participation shall not 
exceed 25 per cent of the aggregate stated re gistered capital of all pension funds of 
the Republic of Kazakhstan;  
 -  not less than one third of members of  the Board of Directors and Committee of 
pension funds with foreign capital participa tion shall be citizens of the Republic of 
Kazakhstan.  Non-residents members of the Board of Directors and Committee of pension funds shall provide doc uments certifying at least three years of managerial 
work experience in financial companies;  
 -  the total registered capital of pension assets investment management companies with 
foreign capital participation shall not exceed 50 per cent of aggregate stated 
registered capital of all pension assets investment management companies of the Republic of Kazakhstan; and 
 -  not less than one third of members of  the Board of Directors and Committee of 
pension assets investment management companies with foreign capital participation shall be citizens of the Republic of Kazakhs tan.  Non-residents members of the Board 
of Directors and Committee of pension assets investment management companies 
shall provide documents certifying at least three years of managerial work experience in financial companies.  
Application of the percentage based restriction fo r foreign capital participation in each individual 
financial company is considered as more restric tive for market access by foreign service suppliers.  
The method applied in Kazakhstan fo r restriction of foreign capital pa rticipation in pension funds and 
pension assets investment management companies as a percentage of the aggregate charter capital of all respective companies of Kazakhstan allows to maintain the balance between domestic and foreign 
investors.  
Moreover, it provides foreign investors with the opportunity to own 100 per cent control over an 
individual financial organization.  Thus, the me thod applied in Kazakhsta n is more conducive for 
attraction of foreign investments rather than applica tion of the percentage based restriction for foreign 
participation in each individual financial company.   WT/ACC/KAZ/66 
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  Question 11 
Could Kazakhstan explain why the foreign particip ation in companies providing long distance 
and/or international telecommunication services, and owned terrestrial communication lines, is 
limited to 49 per cent, when there is no limitat ion as regards operators of mobile, satellite and 
local communications? 
Answer:  
As stipulated in the Law of the Republic of Kazak hstan "On National Security", in order to ensure 
protection of national security interests, the Gove rnment of Kazakhstan shall supervise activities of 
telecommunications organizations using fixed commun ication networks, with due respect to the rights 
of both foreign and domestic investors.  
The 49 per cent foreign capital participation limitati on with regard to telecommunication companies 
providing long-distance and international co mmunication services using fixed communication 
networks has been introduced due to nati onal security interests of Kazakhstan.    
As regards operators of mobile, satellite and local communications, there are no foreign capital 
participation limitations.     
Question 12 Paragraphs 31-34 of WT/ACC/SPEC/KAZ/9 and Question 10 of WT/ACC/KAZ/57:  Is the 
outline of the investment "preferences" granted to firms that invest in the sectors listed in 
Annex 3 comprehensive? 
Answer:
 
In accordance with the amendments and addenda ma de to the Law of the Republic of Kazakhstan "On 
Investments" on 11 May 2005, procedures of granting preferences to investors operating in priority 
spheres have been significantly simplified. In particular:  
1.  The Law of the Republic of Kazakhstan No . 11-III "On Amendments and Addenda to Legal 
Legislative Acts of the Republic of Kazakhs tan on Taxation" of 13 December 2004 entered 
into force since 1 January, 2005.  The Law prolonged the terms of the corporate income tax 
preferences, depending on the volume of inv estments into the fixed assets up to ten years 
instead of earlier set five years.   
 Taking into account that the Tax Code sti pulates the terms of corporate income tax 
preferences, the relevant provision has been excluded from the Law "On Investments".   
2.  In accordance with the Law of the Repub lic of Kazakhstan No. 48 "On Amendments and 
Addenda to Legislative Acts of  the Republic of Kazakhstan on Investment Issues" of 4 May 
2005 (the Law), the conditions imposed on in vestors for receiving customs duty exemptions 
on imported equipment and spare parts have been eliminated.   
3.  The mechanisms of providing in-kind grants have been revised in the Law. Natural grants 
shall be given for temporary non-repayable use or land use with subsequent  transfer of natural 
grants into the private ownership only in cases when all obligations under the investment 
contract have been fulfilled by the investor.  WT/ACC/KAZ/66 
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  4.  In addition, the Law introduced the regula tions on monitoring procedures of implementation 
of  investment projects and on reporting requirements for investors. 
5.  In accordance with the Resolution of the G overnment of the Republic of Kazakhstan No. 152 
"On Amendments to the Resolution of the Government of the Republic of Kazakhstan 
No. 436 of 8 May 2003" of 18 February 2005, th e list of priority activities for investment 
preferences has been revised.  
Particularly, the telecommunication sector was included as priority sector:  
Section Name of Section Code Name of Type and Subtype of Activity 
64.2 Telecommunication 
Telecommunication, including: 
− Exploitation of national satellite 
vehicles of communication and 
broadcasting;  
− Exploitation of on ground network of 
satellite vehicles control and 
communication monitoring system; 
− Provision of transponders of national 
satellite vehicles of communication and broadcasting;  
− Provision of services on Earth remote 
sensing; 
− Provision of low-orb iting spacecrafts for 
mobile communication and navigation;  64  Communication 
64.20 
− Excluding:  sound transmission, 
pictures, data or other information via 
cable, broadcasting, relay or satellite connection, telephone or telegraph 
communication and telex, mechanical 
services of telecommunication network, transmission (translation) of radio and 
television programs. 
 
The following types and subtypes of activities have been additionally included:  
Section Name of Section Code Names of Types and Subtypes of Activities 
01.12 Vegetable growing, gardening and production of 
nursery-garden goods excluding production of flowers, seed farming of flower crops   
01.13 
  Growing of fruits, nuts, crops for production of 
beverages and spices, excluding growing of spicy 
crops and crops for production of beverages 
01.21 Stock rearing, including production of raw milk  
01.22 Stock breeding of sheep, goats, horses, jacks, 
mules and donkeys  
01.23 Pig farming 
01.4 Cattle breeding services, except for veterinary 
services; landscape planning  01 Agriculture, 
hunting and rendering of services in those spheres 
 
01.42 Services related to cattle breeding, excluding 
veterinary services  WT/ACC/KAZ/66 
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  Section Name of Section Code Names of Types and Subtypes of Activities 
02 Forestry and rendering of 
services in this sphere 02.01 Forestry and lumbering, including wood cutting 
and production of industrial wood, such as tunnel bars, pole woods, polling and low-grade wood, 
growing of plant material used for production of 
basketry  
05.0 Fish farming and rendering of services in those 
spheres 
05.01 Fishery, including ocean fishery and in internal 
waters  05 
 Fishery, fish farming and 
rendering of services in those 
spheres  
05.02 Fishery, including oyst er spat, edible mussels, 
lobsters spat, crayfish, shrimps, juvenile fish 
farming, growing of red-algae and other edible 
sea algae, oysters farming 
15.82 Production of crackers and biscuits, production 
of pastry  
15.83 Sugaring 
15.85 Pasta production 
15.86 Production of tea and coffee 
15.9 Beverages production 
15.97 Grist production 15 Production of food substances, 
including beverages  
 
15.98 Production of mineral water and other soft drinks 
17.3 Trimming of Fabric and textile products  17 Textile manufacture 
 17.30 Trimming of Fabric and textile products  
20.1 Log conversion and slicing; wood impregnation  20 Wood working and  production 
of woodwork  20.10 Log conversion and slicing; wood impregnation 
22.1 Publishing 
22.11 Books production 22 Publishing and paleographic 
activity,   
copying recorded information 
mediums  22.24 Production of printing plates  
23.1 Coke production industry 23 Coke production, oil products 
and nuclear materials  23.10 Coke production industry 
25 Production of rubber and plastic 
goods 25.12 Restoration of rubber tires and tire casings   
26.7 Cutting, processing and finishing of ornamental 
and building stone    26 Production of other non-metallic 
mineral products  
 26.70 Cutting, processing and finishing of ornamental 
and building stone    WT/ACC/KAZ/66 
Page 12  
 
  Section Name of Section Code Names of Types and Subtypes of Activities 
27.1 Production of cast iron, steel and ferroalloys   
27.10 Production of cast iron, steel and ferroalloys   
27.41 Production of noble (precious) metals  
27.42 Production of aluminium, including  aluminium 
production by electrolytic refining of aluminium 
junk and scrap  
27.43 Production of lead tin and zinc, including 
production of lead, tin and zinc of metallic substance, production of lead, zinc and tin by 
electrolytic refining of junk and scrap of lead, 
zinc and tin   
27.44 Production of copper, including production of 
copper out of metallic substance, copper 
production by electrolytic refining of copper junk 
and scrap  
27.5 Metal foundry 
27.51 Cast iron foundry 
27.52 Steel foundry 
27.53 Light metals foundry 27 Metallurgy industry 
 
27.54 Other non-ferrous metals foundry  
28.11 Production of construction ironworks  
28.5 Metalworking and metal coating; basic 
technological processes of engineering  
28.51 Metalworking and metal coating; 28 Production of final metal goods 
28.52 Basic technological processes of engineering 
29.22 Production of lifting equipment, including 
maintenance of elevators and escalators  
29.41 Production of portable hand mechanic 
instruments   
29.42 Production of other metalworkers  
29.43 Production of other machines 
29.6 Production of weaponry and ammunition  29 Production of machinery and 
equipment 
29.60 Production of weaponry and ammunition  
36.6 Production of other products not included into 
other positions  36 Production of furniture and other 
goods not included into other 
positions  36.63 Production of other products not included into 
other positions  
40.11 Production of electric power  
40.12 Transition of electric power 
40.13 Distribution and sa le of electric power 
40.21 Gas production 40 Production of electric power, 
gas, vapour and hot water 
40.22 Distribution of gaseous fuel between pipe lines 
and its sale  
55.1 Rendering of services by hotels 
55.10 Rendering of services by hotels 
60.23 Other land passenger transport services 
62.3 Space transport services 55 
 
 Hotel services 
62.30 Space transport services  WT/ACC/KAZ/66 
 Page 13 
 
 
  Section Name of Section Code Names of Types and Subtypes of Activities 
63.1 Cargo handling and storage 
63.12 Storage and warehousing 
63.2 Other auxiliary transport services 
63.21 Other auxiliary land transport services, excluding 
services on storage 
of vehicles belonging to natural persons 
63.22 Other auxiliary land transport services 63 
 Auxiliary transport services   
63.23 Other auxiliary air transport services excluding 
regulations of air space use;   
92.11 Production of movies and video films, except for 
advertising purposes  
92.7 Services on organization of leisure time and 
entertainments  92 Entertainment, culture and 
sports services 
92.72 Other services on organization of leisure time 
and entertainments, not included into other positions, concerning only beach activities   
 
The following types and subtypes of  activities have been excluded: 
Section Name of Section Code Names of Types and Subtypes of Activities 
01.5 Hunting and game bird breeding, including 
rendering of services in these spheres  01 Agriculture, hunting and 
rendering of services in those 
spheres  01.50 
 Hunting and game bird breeding, including 
rendering of services in these spheres excluding: harvesting of marine mammals such as sea-cows 
and seals  
02 Forestry and rendering of 
services in this sphere 02.02 Rendering of services in the sphere of forestry 
and lumbering  
17.14 Linen spinning 
17.16 Production of sewing threads  17 Textile manufacture 
 
17.24 Production of silk fabric 
24 Chemical industry 24.14 Production of other basic organic (chemical) 
agents, including production of wood coal, 
production of peck and pitchy coke distillation of coal tar  
26.24 Production of other technical ceramic goods  
26.25 Production of other technical ceramic goods  26 Production of non-metal mineral 
products  
26.81 Production of abrasive products 
27 Metallurgy industry 27.35 Production of ferro-alloys and other products, not 
considered by ECSC  (European Steel and Coal 
Community) 
33 Production of medical 
equipment, measuring apparatus, 
optical devices and apparatus  33.4 
 
33.40 
 33.5 
33.50   Production of optical devices and 
photoinstrumentation  
Production of optical devices and 
photoinstrumentation Production of watches 
Production of watches 
36 Production of furniture and other 
products, not included into other 
positions  36.40 
36.5 
36.50 Production of sports goods 
Production of games and toys  
Production of games and toys 
40 Production of electric power, 
gas, vapour and water 40.10 
40.20 Production and distribution of electric power  
Production and distribution of gaseous fuel  WT/ACC/KAZ/66 
Page 14  
 
  Section Name of Section Code Names of Types and Subtypes of Activities 
45 Construction 45.1 
45.11 45.12 
45.24 
45.25 
45.3 
45.31 45.32 
45.33 
45.34 45.4 
45.41 
45.42 45.43 
45.44 
45.45 Site preparation 
Demolition and housebreaking; earthwork operations 
Exploration drilling 
Buildings and constructions covering work  
Construction of waterside structures 
Other construction works Installation of engineering equipment of 
constructions and buildings                      
Electrical Installation works Insulating works 
Plumbing works 
Installation of other engineering equipment Finishing works 
Plaster works 
Finish carpentry  And carpenter's works 
Floor covering work and wall covering  
Painting and glassing  Other finishing works 
55 Restaurants services   
73 Researches and development in 
the sphere of natural and 
technical sciences  73.1 Researches and development in the sphere of 
natural and technical sciences 
80 Education 80.1 
80.2 Primary education (first stage) 
Secondary education (second stage) 
85 Healthcare 85.1 
85.11 Healthcare provision services 
Hospital services 
92 Activities on organization of 
leisure time and entertainment, 
culture and sport  92.3 
92.33 
92.62 Other entertainments  
The activity of theme parks and leisure time  
Other activities in sports sphere  
 
Question 13 
Please indicate whether access to the preferences is  limited or open to both domestic and foreign 
investors. 
Answer:  
The provisions of the Law of the Republic of Kazakhstan No. 373 "On Investments" of 
8 January 2003 adhere to the principles of equal treatment of local and foreign investors and non-
discrimination.  
Foreign and local investors hold equal rights with regard to investment preferences, guarantees from 
requisition and nationalization, in spections conducted by government  authorities, dispute settlement 
procedures as well as reimbursement of da mage caused by public authorities.  
Question 14 
Please indicate whether any are conditioned оn export promotion or use of local materials. 
Answer:  
This is to confirm that investment preferences pr ovided by the national legislation of Kazakhstan are 
solely aimed at diversification of the economy and reduction of its dependence on the export of  WT/ACC/KAZ/66 
 Page 15 
 
 
  hydrocarbons and raw materials.  Therefore, i nvestment preferences are not conditioned on export 
promotion or use of local materials, except for automobile production investment project.  
For the time being Kazakhstan has been implementi ng the free warehouse regime for the project of 
automobile production.  The special regime provi des that a company, assembling industrial goods, 
imports its inputs under free warehouse customs regi me. If the final product contains 50% and more 
of Kazakh component, it shall be qualified as domes tically produced. The domestically originated 
goods benefit from VAT and import tariff exemptions. Otherwise the final good shall be qualified as 
foreign and consequently is subjected to  the customs tariffs, fees and taxes.  
However, it should be noted that currently such requirements are applied only with respect to only one 
project of automobile production (JSC "AZIA AUTO") and aim for support and development of 
domestic automobile industry.  
Question 15 
Is there а specific list of sectors that exclude foreign investment? 
Answer:  
The provisions of Article 3 of the Law "On Investments" stipulate the following:  
− investors have the right to invest in any compan ies and types of business, except for situations 
envisaged by the legal acts of the Republic of Kazakhstan; and 
− due to national security concerns, legal acts of the Republic of Kazakhstan may determine 
types of activities and/or areas with limited foreign capital participation and where foreign 
investment is not allowed. 
Paragraphs 36-37 of the draft Report of the Work ing Party on the Accession of Kazakhstan to the 
WTO described specific sectors with limited forei gn capital participation or  exclusion of foreign 
investments. 
As stipulated in the Law of the Republic of Kazak hstan "On National Security", in order to ensure 
protection of national security interests, the Gove rnment of Kazakhstan shall supervise activities of 
telecommunications companies using fixed communicati on networks, with due respect to the rights of 
both foreign and domestic investors.  
The 49 per cent foreign capital participation limita tion with regard to telecommunication companies 
providing long-distance and international co mmunication services using fixed communication 
networks has been introduced due to national security  interests of Kazakhstan.  As regards operators 
of mobile, satellite and local communications, there ar e no foreign capital participation limitations.     
It should also be noted that within the framework  of the national program on liberalization of the 
financial sector and with the purpose to reduce the barriers for foreign capital participation in the 
financial services market of Kazakhstan, significant amendments have been introduced to the relevant 
national legislation.    
1.  In accordance with the Law of the Repub lic of Kazakhstan No. 107-III "On Amendments and 
Addenda to Legislative Acts of the Repub lic of Kazakhstan on Issues of Licensing and 
Consolidated Supervision" of 23 December 2005,  the following restrictions applied with 
regard to banks with foreign capital participation have been eliminated: WT/ACC/KAZ/66 
Page 16  
 
   - the total paid-up capital of banks with foreign capital participation shall not exceed 
50 per cent of the aggregate paid-up cap ital of all banks of Kazakhstan;  
 - not less than one member of the Board of  a bank with foreign capital participation 
shall be a citizen of the Republic of K azakhstan and provide documents certifying at 
least three years of managerial work experience in the bank of Kazakhstan and 
knowledge of the banking and econom ic legislation of Kazakhstan; 
 - at least seventy percent of employees of a bank with foreign participation shall be 
citizens of Kazakhstan; and 
 - banks with foreign capital participati on shall deposit into internal capital the 
resources in the amount and order established by the authorized body. 
2.  In accordance with the Law of the Repub lic of Kazakhstan No. 128-III "On Amendments and 
Addenda to Legislative Acts of the Repub lic of Kazakhstan on In surance Issues" of 
20 February 2006, the following restrictions app lied with regard to insurance (reinsurance) 
companies with foreign capital participation have been eliminated: 
 - the total paid-up capital of insurance co mpanies with foreign participation providing 
general services shall not exceed 25 per cent of the aggregate paid-up capital of 
general insurance companies;  
 - the total paid-up capital of insurance co mpanies with foreign participation providing 
life insurance services shall not exceed 50 per cent of the aggregate paid-up capital of 
life insurance companies; and 
 - not less than one third of members of  the Board of Directors and Committee of 
insurance (reinsurance) compan ies with foreign capital participation shall be citizens 
of the Republic of Kazakhstan. Non-resident s members of the Board of Directors and 
Committee of insurance (reinsurance) comp anies shall provide documents certifying 
at least three years of managerial wo rk experience in financial companies. 
3.  At the same time, with rega rd to such socially sensitive sphe res, as pension funds and pension 
assets investment management companies,  the following provis ions apply:   
 -  the total registered capital of pension fu nds with foreign capital participation shall not 
exceed twenty five percent of the aggregate stated registered capital of all pension 
funds of the Republic of Kazakhstan;  
 -  not less than one third of members of  the Board of Directors and Committee of 
pension funds with foreign capital participa tion shall be citizens of the Republic of 
Kazakhstan. Non-residents members of the Board of Directors and Committee of 
pension funds shall provide doc uments certifying at least three years of managerial 
work experience in financial companies;  
 -  the total registered capital of pension assets investment management companies with 
foreign capital participation shall not exceed 50 per cent of aggregate stated 
registered capital of all pension assets investment management companies of the 
Republic of Kazakhstan; and 
 -  not less than one third of members of  the Board of Directors and Committee of 
pension assets investment management companies with foreign capital participation shall be citizens of the Republic of Kazakhs tan. Non-residents members of the Board 
of Directors and Committee of pension assets investment management companies 
shall provide documents certifying at least three years of managerial work experience 
in financial companies.  
The method applied in Kazakhstan fo r restriction of foreign capital pa rticipation in pension funds and 
pension assets investment management companies as a percentage of the aggregate charter capital of all respective companies of Kazakhstan allows to maintain the balance between domestic and foreign  WT/ACC/KAZ/66 
 Page 17 
 
 
  investors. Moreover, it provides foreign investors with the opportunity to own 100 per cent control 
over an individual financial organization.  
The Draft Law "On Amendments and Addenda to the Law of th e Republic of Kazakhstan "On 
Guarding Activities" has been developed. In accord ance with the Draft Law, consulting services on 
protection methods against illegal infringements ar e envisaged to be excluded from the list of 
guarding activities, which could not be pr ovided by foreign service suppliers.   
The Government of Kazakhstan is also planning to  amend the national legislation regulating    
architectural, town-planning and construction services.  The revisions will aim at elimination of the 
49 per cent foreign capital restriction in the registered capital of joint ventures and the one-time  licence requirement for foreign juridical persons and their branches with majority ownership.  Instead, 
the Law will allow the commercial presence of foreign architectural, town-planning and construction 
service suppliers in the form of a ju ridical person of Kazakhstan.     
Article 18 of the Law of the Republic of Kazakhsta n "On National Security" stipulates that  economic 
security includes preservation and strengthening of en ergy resources of Kazakhstan.  With this regard, 
Kazakhstan amended Article 71 the Law "On Subsurface and Subsurface Use" with the provision 
which stipulates that the Government of Kazakhsta n has the priority right to purchase the right for 
utilization of Kazakh subsurface being sold by the current holder on the term s not worse than those 
proposed by other buyers. 
- State Ownership and Privatization 
Question 16 We thank Kazakhstan for the additional informatio n provided in this section on privatization of 
state owned enterprises. 
We still lack information on the trading activiti es of the major state owned enterprises not yet 
privatized and the extent to which any of these firms trade on behalf of the state. 
This section still lacks useful description of wh at currently constitutes the state owned sector in 
Kazakhstan. For example: 
What areas of Kazakhstan's есоnоmу still contain significant state-owned enterprises? 
Answer:
 
1.  The Legislative basis provided for state-owned entities in Kazakhstan   
Pursuant to the Law of the Republic of K azakhstan No. 2335 "On State Enterprise" of 
19 July 1995, governing the activity of state ente rprises, the key objectiv e of state enterprises 
is to address social and economic problems determ ined by the needs of society and state:  
 - ensuring financial security for national defence and protection of society's interests;   
 - production of goods (works a nd services) of primary needs in the areas and sectors of 
public production, which are not covered or  insufficiently covered by private sector 
of the economy; 
 - implementation of activities in the areas qualified as state monopoly or public 
functions, except for control and supervision functions;  WT/ACC/KAZ/66 
Page 18  
 
  State enterprises shall be established in  the following forms of ownership:  
− enterprises of national property, national state enterprises (NSE);  
− enterprises of communal property, communal state enterprises (CSE).   
The state bodies responsible for administration of NSE are the Ministries, agencies, 
departments and others state bodies authorized by the Government of the Republic of Kazakhstan, as well as the National Bank of  the Republic of Kazakhstan.     
The state body responsible for administration of CSE is akimat (local administrations) of the 
corresponding administrative-territorial unit or the executive body authorized by akimat, which is financed from the local budget.   
NSE shall be established upon the decision of th e Government or the National Bank of the 
Republic of Kazakhstan. CSE shall be estab lished upon the decision of the local executive 
body in accordance with the procedure establishe d by the Government of the Republic of 
Kazakhstan.  
2.  Spheres of the economy where state-owned entities function
  
As of 1 December 2005, there are 4,766 state enterprises in total in Kazakhstan, including 
404 NSEs and 4,362 CSEs.  
Table 1:  Sphere of Activities and Number of State Enterprises Involved  
No. Sphere of Activity NSE quantity CSE quantity Share, % 
1 Education  1,347 
2 Science and Culture 187 
3 Tourism ad Sport 14 
4 Infomedia  725 47 
5 Healthcare 40 1,272 27 
6 Municipal and housing capacity  556 11 
7 Transport and communication 14 33 1 
8 Environment protection 17 
9 Agriculture  33 1 
10 Architecture, town planning, construction  47 1 
11 Special security regime entities, real estate 
centres  52  1 
12 Land-use works 9  1 
13 Other industries 71 349 10 
Total  404 4,362 100 
 
State enterprises, therefore, prevail in edu cation, science, culture, tourism, sport and 
infomedia.  
There are 369 joint stock companies with state participation in Kazakhstan. The Government 
of the Republic of Kazakhstan participates in 171 Joint Stock Companies and Limited 
Liability Partnerships, including 12 national companies.  Ninety-two joint stock companies are with 100 per cent state ownership.   
Nevertheless, Kazakh legislation does not prohib it private sector participation in the sectors, 
where state-owned enterprises are present, ex cept for the spheres of state monopoly.  
Currently, state monopoly has been reserved  only in specific services sectors.   WT/ACC/KAZ/66 
 Page 19 
 
 
  The local executive bodies own the shares of 198 Joint Stock Companies and Limited 
Liability Partnerships, including 123 companies, where they own the majority shares.  The 
majority of those companies provide municipal and housing services; culture, tourism, sport and information services; architectural, town planning and construction services, transport services, agriculture and environment services. 
In accordance with  the Law of the Republic of  Kazakhstan "On State Enterprise", in order 
not to allow overpricing of products, services  and works produced and supplied by state 
enterprises considered as state monopoly, the Agency of the Republic of Kazakhstan on 
Regulation of Natural Monopolies regulates and monitors their activities.   
Table 2:  The List of Entities of State Monopoly and Spheres where these 
 
Entities Hold Monopoly Position (approved by the Governmental Resolution of the Republic of 
Kazakhstan No. 304 of 4 April 2005)  
No. Spheres where Entities of State Monopoly Hold 
Monopoly Position The List of Entities 
1 Forestry, connected with demarcation of state 
forest fund, forest inventory or planning of forest 
management on the lands of state forest fund  Communal Enterprise "Kazakh Forest Survey 
Enterprise" of the Ministry of Agriculture of the 
Republic of Kazakhstan   
2 Security of objects subject to state secur ity  Government entities "Specialized Security 
Service" of the Ministry of Internal Affairs of the 
Republic of Kazakhstan   
3 Administration of the information system 
developed for the process of state procurement; NSE "Electronic Commerce Centre" of the 
Ministry of Finance of the Republic of Kazakhstan 
4 Phytosanitary monitoring of extremely dangerous 
organisms NSE  "Phytosanitary" of the Ministry of 
Agriculture of the Republic of Kazakhstan  
5 Diagnostics of extremely dangerous animal 
diseases, included into the list, approved by the 
Government of the Republic of Kazakhstan   
6 Registration tests, survey and attestation of 
veterinary medicines, feedstuff and feed 
additives, as well as the control of veterinary medicine shipments (lots) under their reclamation NSE "National Veterinary Laboratory" of the 
Ministry of Agriculture of the Republic of 
Kazakhstan 
7 Liquidation of extremely dangerous animal 
disease nidi included into the list approved by the 
Government of the Republic of Kazakhstan  
8 Disinfection of vehicles at veterinary check 
stations at national borders  
9 Storage of national stock of veterinary medicines  NSE "National Antiepizootic Crew" of the 
Ministry of Agriculture of the Republic of 
Kazakhstan   
10 Protection of Trademarks, service marks, names 
of places of goods origin, inventions, useful 
models, industrial designs and selective achievements  NSE "National Institute of Intellectual Property" of 
the Ministry of Justice of the Republic of 
Kazakhstan  
11 Production of personal identity documents of the 
Republic of Kazakhstan NSE "Informational Production Centre" of the 
Committee of Registration Service under the 
Ministry of Justice of the Republic of Kazakhstan  
12 Conduct of State Hydrom eteorologic Monitoring 
and Monitoring of Environment Situation  NSE "Kazgidromet" of the Ministry of 
Environment Protection of the Republic of 
Kazakhstan  
13 Pre-licensing survey of enterprises for the right 
of production of ethyl al cohol and other alcohol 
products, adjustment of alcohol measuring 
devices and control calibration of registering devices  NSE "KazAlkoCentre" of Tax Committee under 
the Ministry of Finance of the Republic of 
Kazakhstan   WT/ACC/KAZ/66 
Page 20  
 
  No. Spheres where Entities of State Monopoly Hold 
Monopoly Position The List of Entities 
14 Application of a technology (or methods) in 
conducting unified national testing, complex 
testing, and interim state control of educational 
institutions and certification of educational 
institutions; NSE "National Centre of State Standards in 
Education and Testing" of the Ministry of 
Education and Science of the Republic of 
Kazakhstan  
15 Collection, preservation, storage of blood and 
disposal of blood and its components  NSE "National Blood Centre" of the Ministry of 
Healthcare of the Repu blic of Kazakhstan  
16 Protection of information received in the course 
of  the state registration of pharmaceuticals NSE "National Expertise Centre of Medicines, 
Items of Medical Purpose and Medical 
Technology" of the Ministry of Health of the 
Republic of Kazakhstan   
 
To define uniform legislative framework for st ate control and regulation of activities in the 
sphere of state monopoly and to fill in the gap in the national legislation, the Draft Law of the Republic of Kazakhstan "On State Monopoly"  has been drafted and submitted to the 
Parliament of the Republic of Kazakhstan. 
Article 1 of the Draft Law defines the terms "the state monopoly" and "subject of the state 
monopoly" as follows: 
− The state monopoly is a type of activity, where introduction of competition is 
inexpedient for reasons related to the pr otection of constitutional order, national 
security, public order, human rights and fr eedoms, and health of population; and 
− A subject of the state monopoly is a state-owned enterprise entitled with the exclusive 
right for provision of services (goods, works) in the sphere of state monopoly. 
The Draft Law also establishes the procedure fo r cost control of services (goods and works) 
supplied by state monopolies. The Draft Law also stipulates the rights and obligations of both the subjects of state monopoly and their customers.     
In accordance with the Presidential Decree No . 50 "On Measures Aimed at Further Promotion 
of State Interests in Administration of State-Owned Sector of the Economy" of 28 January 2006, the joint stock company "Hol ding on Management of State-Owned Assets  
of Kazakhstan "Samruk"" has been established.  The major purpose of the holding company is 
to enhance management of state-owned compani es of strategic importance for development of 
the national economy. State-owned shares of JSC "Kazakhtelekom", JSC "Kazpochta", JSC "KEGOC" and JSC "KazMunaiGaz" have been transferred to the registered capital of "Samruk" holding company.  
Question 17 Please list, and describe the commercial activities of, the major state-owned enterprises not yet 
privatized, particularly those engaged in international trade or in domestic trade that competes with imports or for export  opportunities controlled b у the government.  WT/ACC/KAZ/66 
 Page 21 
 
 
  Answer:  
Table 3:  The List of State Enterprises, JSCs and LLPs, with the   
State-Owned Majority Shares and Involved in Export – Import Operations  
State 
body* Enterprise name Type of activity Participation in 
export-import 
operations State 
share 
(%) The share in 
production 
volume 
(%) 
MTC JSC "NC 
"Kazakhstan Temir 
Zholy"  Provision of services, 
connected with freight 
traffic activity  Holding of 
Freightage  100 International 
Rail 
Transportation - 100 
MTC JSC 
"KazMorTransFlot" Freightage of all type of 
cargo, crude oil and oil 
products, general freights, containers, passengers  Participation in 
export operations 
on transportation of oil, sea 
terminal operator 50 Transhipment:  
2004 - 41,  
2005 - 54. Transportation: 
2004 - 49,  
2005 - 51. 
MTC NSE "International 
Sea Trade Port of 
Aktau" Sea port activity connected 
with servicing of marine 
vessels, passengers and freights   Participation in 
export-import 
transit operations within their sea 
port activities  100 Transhipment:  
2004 - 59,  
2005 – 46. 
MEMR JSC "MunaiTas" Oil transportation  Export and 
Import  100 9.0 
MEMR JSC "Trading House 
"KazMunaiGaz" Trading in crude oil and 
products processed from 
crude oil and gas, 
provision of fuel for sowing and harvesting, 
export operations on behalf 
of the government with the crude oil received on 
account of royalty 
payments, transportation and escort services   Export and 
Import  100 13 (in total 
exports) 
MIT NSE "National 
Centre on Integrated 
Mineral Recourses 
Utilization"  Scientific-production 
activity  Export  – 50% 
Domestic 
market– 10 % 100 30 
MIT JSC "Kazchermet - 
avtomatika" Experimental-engineering 
activities on development, production, supply, 
implementation 
automation systems and equipment in the area of 
ferrous and nonferrous 
metallurgy and other industries    Export  -30 % 
Domestic market - 70 % 98.83 75 
MIT NSE 
"Zhezkazganredmet" Production activity in the 
area of science on 
processing of materials with osmium, rhenium and 
rare-earth metals and 
production of those metals. Export 10 – sale 
export 61 – 
processing beyond customs 
territory. 
Import 40 – for consumption 100 100 WT/ACC/KAZ/66 
Page 22  
 
  State 
body* Enterprise name Type of activity Participation in 
export-import 
operations State 
share 
(%) The share in 
production 
volume 
(%) 
MD NSE 
"KazSpetcExport" Utilization, lease, and sale 
of weaponry, military 
equipment, defensive 
objects and other military property, not used in 
Armed Forces of the 
Republic of Kazakhstan; export of weaponry, 
military equipment, 
ammunitions, not used in Armed Forces of the 
Republic of Kazakhstan; 
import of weaponry, military equipment, 
ammunition for needs of 
AF of the Republic of Kazakhstan  For resale 100  
MA JSC "Food Contract 
Corporation" Purchase, formation, 
accounting, storage, 
renovation, moving and sale of state grain 
resources and its 
conversion products.  
Cereal crops export 
(wheat, barley)  Grain export – 
0.1 million tons  100  
MA JSC 
"KazAgroFinance" Implementation of state 
credit programs and 
financial support of 
agricultural commodity producers, lease of 
equipment and 
technological equipment,  issue of warranties to 
second-tier banks for 
crediting agricultural commodity producers  Import of 
agricultural 
equipment – 
KZT 6.6 billion  100  
MA JSC "Mal Onimderi 
Korporatciyasy" Procurement and 
processing of animal 
products, delivery for export and domestic 
market of animals' product 
and live cattle. Animal products 
export – 
KZT 180 million 100  
*Abbreviations:  MIT – Ministry of Industry and Trade 
  MTC – Ministry of Transport and Communications 
  MEMR – Ministry of Energy and Mineral Resources 
  MA – Ministry of Agriculture   MD – Ministry of Defence  
Question 18 
Please outline the operations of state-owned ente rprises in the agricultural sector. Do any of 
these firms trade on behalf of the state? Indicate  whether privatization is an option for these 
firms, and if so, on what terms and what are the near term prospects?  WT/ACC/KAZ/66 
 Page 23 
 
 
  Answer:  
Information on enterprises, functioning in agricultura l sector on behalf of the Government (JSC "Food 
Contract Corporation", JSC "KazAgroFinance" and CJSC "Mal Onimderi Korporatciyasy") is provided in document WT/ АСС /KAZ/51. 
Privatization of these enterprises is  not anticipated in future.  
In addition, 70 more enterprises operate in agricu ltural sector.  Most of them represent research and 
development farms, operating in such industries as agriculture, cattle breeding and crops growing.  
According to the Civil Code of the Republic of K azakhstan, the joint stock company is the juridical 
person issuing shares with the purpose to attract fundi ng for its activity.  The state enterpri ses are the 
enterprises, where the state conducts either ec onomic management or operational management. 
Henceforth, according to the national legislation, joint stock companies with 100 per cent state 
ownership are not considered as state enterprises.  
Question 19 
What is the relative position of state-owned and state controlled firms in GDP and trade, in 
certain sectors and overall? E.g., what portion of industrial output, domestic or export sales in 
their respective sectors? 
Answer:
 
The relative share of output produced by state-owne d and state controlled enterprises in the overall 
volume of GDP represented 10.4 per cent in 2004, in cluding 2.2 per cent in overall trade volume. 
Relative share of state-owned or state controlled enterprises in overall volume of industrial production 
represented 5.8 per cent.   
It is not feasible to provide accurate informati on on the share of state-owned and state controlled  
enterprises in domestic and exports sales due to absence of relevant statistical data.  
Question 20 
What portion of the firms that are considered "privatized" have actually now under private 
ownership, rather than still operating under the effective authority and control of the 
government? (statement)  
We seek а more detailed description of Kazakhstan's state-owned sector to better understand 
the role it plays in the Kazakh economy and it s operations.  We would appreciate Kazakhstan's 
help in securing this information. 
Answer:  
According to the Law of the Republic of Kazakhstan No. 2721 "On Privatization" of 
23 December 1995, privatization shall mean sale of  state property to the possession of natural persons,  
non-public juridical persons performed by the state as the owner.   
Right for ownership, recognized and protected by le gal acts of the Republic of Kazakhstan (the right 
of an owner to own, use and dispose the possessed  property at his/her own discretion), excludes any 
restriction or influence on execution of the given right by the proprietor, including the state.    WT/ACC/KAZ/66 
Page 24  
 
  In accordance with Article 10 of the Civil Code of  the Republic of Kazakhstan of 27 December 1994, 
government guarantees the freedom of entrepreneur ship and provides its protection and support.  
According to the Civil Code, entrepreneurship is initiative activity of citizens and juridical persons 
regardless of forms of ownership aimed at obtaining net profit by means of satisfying demand for goods (services, works) and based on private ownershi p (private entrepreneurship). Entrepreneurship 
activity shall be conducted on behalf and at the risk  and proprietary responsib ility of entrepreneur.  
Moreover, in accordance with paragraph 2 of Artic le 4 of the Law of the Republic of Kazakhstan 
No. 124-III "On Private Entrepreneurship" of 31 January 2006, the state shall guarantee:  
− freedom of private entrepreneurship and provision of its protection and support;  
− inviolability and protection of private property; 
− participation of private entrepreneurs in de velopment of regulatory framework on private 
sector development; and 
− guarantees of equal rights for private entrepreneurship activity.  
In accordance with Article 3 of the Law on developm ent of private entrepreneurship, private business 
can only be limited based on reasons estab lished by the national legislation.  
Government bodies are prohibited to adopt any le gal documents which establish privileged position 
for selected groups of entrepreneurs.   
Question 21 
According to Paragraph 44 of the Draft Report, th e sale of derivatives is aimed at expanding the 
range of potential investors and raising the profile  of Kazakh firms in global capital markets.  
We would appreciate having further details of the method of privatization through the sale of 
derivatives. 
Answer:
 
The existing legislation of the Republic of Ka zakhstan, namely the Law of the Republic of 
Kazakhstan No. 461-II "On Equity Market" of 2 July 2003, and the Law of the Republic of 
Kazakhstan No. 415-II "On Joint Stock Companies"  of 13 May 2003, provide that joint stock 
companies can issue securities and other equity (including derivatives) as well as undertake their 
placement, circulation and payment. 
According to the Law "On Capital Market", deri vatives are securities, which certify the rights in 
relation to the supporting assets of given derivatives.   
In accordance with Article 33 of the Law "On Cap ital Market", registration of transactions with 
derivatives and certification of the rights on them  shall be made by nominal shareholders in 
accordance with this Law and internal documents of stock exchange market whenever the transactions 
are made on the stock market.   
The conditions and procedures of transactions with options, futures, swaps and other derivatives on 
the stock market, made with the purpose of invest ment risk hedging on emission securities shall be 
established by internal documents of  the stock exchange market.   
Moreover, the Law of the Republic of Kazakhstan No. 2721 "On Privatization" of 23 December 1995 
(the Law), state-owned stock shares, including derivatives, can be privatized.  WT/ACC/KAZ/66 
 Page 25 
 
 
  In accordance with Article 12 of the Law, privatiza tion shall be performed in the following forms:    
− public sale in the form of an auction, tender,  stock market trading, two-stage procedures 
tender, sale of derivatives; and 
− direct address sale.  
In accordance with Article 14-3 of the Law, sale of  derivatives certifying the right for state-owned 
shares shall be made upon the decision of the Govern ment of the Republic of Kazakhstan or relevant 
local executive body. The basic term s of sale of derivatives should be submitted by the seller to the 
Government of the Republic of Kazakhstan or by th e Akimat (local executive body) to the relevant 
Maslikhat (local representative body) for approva l. The decision on the sale of derivatives shall 
contain the following information: 
− quantity of state-owned shares, for which the derivatives have been issued;  
− type of the derivatives being sold;  
− foreign country (foreign countries), where the sale of derivatives will take place;  
− deadline for the transaction; 
− terms and procedures for implementation of derivatives proprietors' rights;  
− and other conditions, as required.    
Question 22 
According to paragraph 51, there are ten areas ex empted from privatization. How many state-
owned enterprises are included in these ten areas not to be privatized? 
Answer:  
The list of state-owned property exempted from pr ivatization (approved by the Presidential Decree 
No. 422 of 28 July 2000) includes inter alia  medical organizations providing primary health care 
services (blood centres, mother and child protection,  radiation medicine organizations; cancer, HIV 
and AIDS, tuberculosis, dermatovenerologic and mental diseases care organizations), including 
national state-owned enterprises of the Ministry  of Health of the Republic of Kazakhstan: 
1.  NSOE (National State-Owned Enterprise) "Kazakh Research Institu te of Oncology and 
Radiology", Almaty City; 
2.  NSOE "Dermatovenerologic Research Institute", Almaty City; 
3.  NSOE "Research Institute of Radiation Medicine and Ecology", Semipalatinsk City; 
4.  NSOE "National Research Centre of Mother and Child Protection", Almaty City; 
5.  NSOE "National Blood Centre", Almaty City; 
6.  NSOE "Research Centre of Hygiene and Epidemiology", Almaty Centre; 7.  NSOE "Macksut Aikimbayev Kazakh Research Centre of Quarantine and Zoogenous 
Infections", Almaty City. 
The other enterprises included in the abovementioned list are either juridical persons in the form of 
state-owned enterprises or are on the bala nce accounts of state-owned enterprises. 
The list of state-owned enterprises exempted from pr ivatization, including its preliminary stages until 
2006, as well as the joint-stock companies, wher e the state-owned shar es are exempted from 
privatization, including its preliminary stag es, until 2006, is enclosed in Annex I.  
Furthermore, in accordance with the Resolution of  the Government of the Republic of Kazakhstan 
No. 1587 "On the List of State Property Exempted from Privatization" of 24 October 2000, state-owned enterprises under the auspices of the Ministry  of Industry and Trade of the Republic of WT/ACC/KAZ/66 
Page 26  
 
  Kazakhstan, such as the "National Centre on Integrated Mineral Re sources Utilization of the Republic 
of Kazakhstan" and "Zhezkazganredmet" shall be exempted from privatization and its preliminary 
stages.  
Currently, the Government of the Republic of Kaza khstan is elaborating the draft Resolution of the 
Government of the Republic of Kazakhstan "On the List of State Property Exempted from Privatization, including its Preliminary Stages, until 2010".  
- Pricing Policies Question 23 We thank Kazakhstan for the additional informat ion provided on its pricing policies. We are 
reflecting on this information, and will submit additional questions and suggestions for this 
section of the report later in writing. 
We remain concerned that domestic differential pricing policies for transportation, and in the 
case of other "natural monopolies" where the stat e sets prices in effect distorts the flow of 
imports and exports in а way not envisaged by WTO. 
We support the request for а commitment from Kazakhstan to unify its pipeline transport fees. 
Charging а higher rate for export than for simila r deliveries internally is discriminatory, 
whether or not it m ау constitute а non-tariff barrier to trade. 
In particular, we believe the statement in paragraph 73 is not accurate, as there is ample 
evidence that state owned "natural" monopolies in Kazakhstan do not grant equal access as 
transporters and enjoy extensive special privileges. 
Answer
: 
Oil transportation  
In 2002, the Order of the Agency of the Re public of Kazakhstan for Regulation of Natural 
Monopolies implemented decreasing coefficient 0.46 to  the tariffs charged by "KazTransOil" for its 
services on transportation of crude oil via trunk pipe lines to the domestic market.  The average price 
of oil delivered to oil refineries represent US$ 50-60 pe r ton, while average tariff for transportation of 
crude oil via trunk pipelines from main oilfields to oil-processing plants is around US$ 7-9, to which 
0.46 decreasing coefficient apply.  Thus, the share of transportation cost was reduced from 16 per cent 
to 7.8 per cent in the price of crude oil supplied to domestic oil refineries. 
During the last four years, the demand of domestic o il refineries for crude oil  has been substantially 
increased.  The price of crude oil in the domestic ma rket has increased by 2.5 times and currently it 
has reached US$ 180-190 per ton.  The cost of trans portation of crude oil to oil refineries with 0.46 
decreasing coefficient makes up 1.8 per cent in the to tal price of crude oil.  Without 0.46 decreasing 
coefficient the share of the transportation cost in the final price of crude oil will increase up to 
4 per cent. 
In case of elimination of decreasing coefficients, due  to high world prices for crude oil, producers will 
not be interested in supplying oil to domestic oil refine ries and, thus, leading to shortage of fuel in the 
domestic market.   WT/ACC/KAZ/66 
 Page 27 
 
 
  Gas transportation  
Pricing policy in the area of gas pipeline transporta tion is currently determined by the legislation of 
the Republic of Kazakhstan and the Agreement on Concessions of Domestic and International Gas 
Transportation System and Economic Operations (t he Concession Agreement) concluded between the 
Republic of Kazakhstan and Traktebe l S.A. Company on 14 June 1997.  
In accordance with the Law of the Republic  of Kazakhstan "On Natural Monopolies", gas 
transportation services via pipelines are qualified as natural monopoly. 
The key transporter of gas by trunk pipelines is the joint stick company (JSC) "Intergaz Central Asia", 
which operates in the following sectors:  
- domestic transportation;  
- international transit; and 
- transportation of gas for export. 
The gas transportation services by trunk pipelin es to domestic consumers provided by the JSC 
"Intergas Central Asia" are subject to regulation by the Agency of the Republic of Kazakhstan on 
Regulation of Natural Monopolies under the Law "On Natural Monopolies." 
The Rules on Increase and Decrease of Tariffs (Price s, Rates and Fees) or the Maximum Levels for 
Services (Goods and Works) Subject to Regulation have  been approved by the Order of the Agency of 
the Republic of Kazakhstan on Regulation of Natu ral Monopolies No. 91-OD of 19 March 2005.  In 
accordance with the Rules,  changes in tariff rates and their ma ximum levels shall cover the production 
cost of services rendered by natural monopolies as  well as the profit margin required for effective 
functioning of natural monopolies. 
Paragraph 7 of the Methodology of  Calculation of Tariffs for Transportation of Gas by Trunk 
Pipelines, approved by the Order of the Agency of the Republic of Kazakhstan on Regulation of 
Natural Monopolies No. 500-OD of 21 December 2004, determines that tariffs for domestic transportation services established by the Agency sh ould be based on the balance of the production 
cost, volumes of production and net profit and other indicators. 
Currently, gas transportation by trunk pipelines to  the domestic market is performed by  the JSC 
"Intergas Central Asia" at tariff rates approved by the Order of the Agency No. 19-OD of 15 June  2001, at the rate of:  
1. 420 tenge per 1,000 m3 (excluding VAT) for juridical entities; and 
2. 171 tenge per 1,000 m3 for juridical entities supplying natural gas to households. 
Tariffs for domestic transportation of gas are cal culated depending on the vol ume of transported gas 
without taking into account transportation distan ces and includes all expenses necessary for operation 
and maintenance of the gas pipeline system.  
Pipeline transportation tariffs for exports of gas as well as transit tariffs are not subject to state 
regulation.  This is due to the Concession Agreem ent concluded between the Republic of Kazakhstan 
and Traktebel S.A. Company on 14 June 1997.  A ccording to the provisions of the Agreement, 
Traktebel S.A. Company was granted the rights of ownership, use, operation, management, servicing, 
maintenance, repair and expans ion of the entire gas transport system and economic activity.  
In its turn, on 23 July 1997  "Traktebel S.A." Company and the JSC "Intergas Central Asia" 
concluded the "Transfer Agreement".  According to the Agreement, "Traktebel S.A." Company WT/ACC/KAZ/66 
Page 28  
 
  concedes and transfers the rights obtained under the Concession Agreement in relation to gas 
transport system and its management, along with a ll rights, preferences, privileges, authorities, 
responsibilities and obligations to the JSC "Intergas Central Asia".  
In accordance with the obligations under the Concession Agreements, the Republic of Kazakhstan 
confirms that tariffs on international transit of na tural gas through the territory of Kazakhstan are not 
regulated by the Government of the Republic of Kazakhstan.  The Concessionaire and/or the 
Investment companies therefore have the right to set and approve their own tariffs on international 
transit.  
Gas transportation for export is performed by the JSC "Intergas Central Asia" using the tariff, 
established on the basis of contracts and not subject  to state regulation: 1.1 US Dollars per 1000 m
3 
per 100 km (tariff is calculated taking into acc ount the transportation distances, per 100 km). 
It should be noted that since WTO agreements do not directly regulate pricing policy for services, 
including services provided by natural monopolies,  pi peline transportation and transit related issues, 
Kazakhstan firmly believes that а commitment to unify its pipeline transport fees as WTO plus 
request on the part of some Working Party Members. 
Question 24 Kazakhstan should confirm in а protocol commitment that it will apply its current price 
controls and any other price controls a pplied from the date of accession in а WTO-consistent 
fashion, and will take account of the interests of exporting WTO Members as provided for in 
Article III.9 of the GATT 1994.  Kazakhstan sh ould commit to publish any list of goods and 
services subject to state pricing or price controls in its official gazette, including any changes in 
existing measures. 
Answer
: 
Pursuant to Article 4 of the Law of the Re public of Kazakhstan "On Natural Monopolies", the 
authorised body shall analyse the spheres of na tural monopolies with the purpose to define whether 
the services provided by them should be subject to state regulation.  The list of services (goods, 
works) subject to state regulation shall be approve d by the Government of the Republic of Kazakhstan 
upon presentation of the authorised body. 
The Government Resolution No. 155 of 14 March 2 006 approved the list of regulated services (goods, 
works) supplied by entities considered as natural monopolies in accordance with Article 4 of the Law 
"On Natural Monopolies". 
Pursuant to Article 14-1 of the Law "On Natura l Monopolies", the government body responsible for 
regulation of natural monopolies shall inform custom ers with the decisions made with respect to 
activities of natural monopolies, except for disclosur e of the information, which represent commercial 
secrets protected by the national legislation.  In this  regard, the decisions made by the Agency of the 
Republic of Kazakhstan on Regul ation of Natural Monopolies are available on the web-site 
www.regulator.kz  and on the magazine "Regulator". 
In accordance with paragraph 4 Article 18 of th e Law "On Natural Monopolies", natural monopolies 
shall notify customers about changes in tariff rates (p rices, fee rates) or their maximum levels not later 
than 10 days prior to their introduction.  Therefore, natural monopolies should publish in mass media the decisions adopted by the Agency regard ing their tariff rates (prices, fee rates).  WT/ACC/KAZ/66 
 Page 29 
 
 
  According to paragraph 2 of Article 34 of th e Law "On Regulatory Legal Acts", laws and 
Government resolutions belong to main regulatory le gal acts.  Paragraph 1 of Article 30 of the above 
mentioned Law stipulates that publication of lega l acts dealing with rights, freedom and duties of 
citizens in official mass media is a manda tory condition for their enforcement.  
Publication shall be made in official media or pe riodical publications selected as a result of the tender 
process in accordance with the or der set by the Government of the Republic of Kazakhstan.   
Question 25 
Paragraph 55:  Could Kazakhstan explain the stat e of play as regards the adoption of the Law 
defining the legal framework for government control and regulation of the operation of 
monopolies?     
Answer:  
To define uniform legislative framework for state c ontrol and regulation of activities in the sphere of 
state monopoly and to fill in the gap in the nationa l legislation, the draft law of the Republic of 
Kazakhstan "On State Monopoly" has b een drafted and submitted to the Parliament of the Republic of 
Kazakhstan. 
Article 1 of the draft Law defines the terms "the  state monopoly" and "subject of the state monopoly" 
as follows: 
− The state monopoly is a type of activity, wher e introduction of competition is inexpedient for 
reasons related to the protection of constitutiona l order, national security, public order, human 
rights and freedoms, and health of population; and 
− A subject of the state monopoly is a state-owned enterprise entitled with the exclusive right 
for provision of services (goods, works) in the sphere of state monopoly. 
In accordance with the Article 4 of the draft Law the following activities are qualified as state 
monopolies in the Republic of Kazakhstan: 
− forest management linked with establishing the bor ders of the national forest funds, inventory 
of forest and planning of national forests administration;  
− national hydro-meteorological monitoring and monitoring of the environment conditions; 
− diagnosing extremely dangerous animal diseases, liquidation of nidi of extremely dangerous 
animal contagious diseases; registration tests, testing veterinary medi cine, fodder and fodder 
additives, as well as control of veterinary medici ne in the course of reclamations; disinfecting 
of vehicles at veterinary control stations at th e national border; storage of the national reserve 
of veterinary medicine; 
− services related to protection of trade marks, service marks, geographic indications, 
inventions and industrial samples;  
− production of personal identity document s of the Republic of Kazakhstan; 
− importation and/or exportation of cer tain goods (rhenium, osmium); 
− protection of information received for the state registration of pharmaceuticals; 
− collection, conservation, storage and distribution of blood components; 
− application of a technology (or methods) in conducting unified national testing, complex 
testing, and interim state control of educati onal institutions and certification of educational 
institutions; 
− administration of the information system developed for the process of state procurement; 
− processing, production and sale of raw materials containing rhenium and osmium; and WT/ACC/KAZ/66 
Page 30  
 
  − revelation, localization and li quidation of sources nidi of dissemination of subjects to 
quarantine. 
The draft law also stipulates the rights and obligatio ns of both the subjects of state monopoly and of 
their customers.     
Question 26 
Paragraphs 69 – 71:  Please specify the conditions and timeframe for the intended liberalization 
of telecommunications and postal markets, wh ere now these markets are subject to government 
price regulation.  
Answer: 
 
Telecommunications sector of Kazakhstan is regul ated by the laws "On Communications", "On 
Natural Monopolies", "On National Security" and ot her statutory legal acts of the Republic of 
Kazakhstan. 
Pursuant to the staged "Program of Development of the Telecommunications Sector of the Republic 
of Kazakhstan for 2003-2005" adopted by the Govern ment Resolution No. 168 of 18 February 2003, 
the telecommunication market will be liberalized in three stages: 
− preparatory phase;  
− partial liberalization phase; and  
− complete liberalization phase.  
At the preparatory stage of development of the telecommunication sector in 2003-2004, the legislative 
basis for regulation of the sector has been estab lished.  The laws "On Communications" and "On 
Amendments and Addenda to Legislative Acts of  the Republic of Kazakhstan on Communications", 
20 regulatory legal acts of the Government of the Re public of Kazakhstan and 3 Orders of the Agency 
on Informatization and Communications of the Republic of Kazakhstan have been adopted. 
The Law of "On Communications" of 5 July 2004 in troduced the term "universal  telecommunication 
services".  Pursuant to Article 32 of the Law, the following universal telecommunications services 
shall be subject to government regulation: 
− fixed telephone communication services (local, area, long-distance); 
− services providing mass access to the Internet in  towns with population over 3,000 people; 
− telegraph communication services, including deliv ery of "regular" and "flash" telegrams. 
The services related to the leasing and provision of access to cable channels and technological 
facilities for connecting telecommunication networks  to the universal telecommunication network 
have been also qualified as regulated telecommunication services. 
In the course of the second phase of the teleco mmunications sector liberalization program, which 
started in September 2004, long distance and inte rnational telecommunications market has been 
liberalized. As of 1 January 2005, the exclusive right of the "Kazakhtelecom" JSC for  provision of long distance  and international communication services has been discontinued, and seven long 
distance and international communication operato rs have received the licenses (including: JSC 
"Kazakhtelecom", JSC "TNS-Plus", JSC " Аrna", JSC "Transtelecom", JSC "Nursat", JSC 
"KazTransCom", JSC "Astel"). Th ese steps made positive impact on the national economy through 
reduced tariffs for long distance and international telecom services and improved quality of services.   WT/ACC/KAZ/66 
 Page 31 
 
 
  From 1997- 2005, 250 licenses for local communication ser vices have been issued by the authorized 
body in the field of communication and 323 licenses for rendering the data transmission services. 
To avoid cross-subsidization and recover the fi nancial losses of operato rs rendering universal 
telecommunication services in rural areas, the Government launched their subsidization from the state budget. 
The "Vostoktelekom" Limited Liabilities Partnership, which holds a licence for provision of local 
fixed telephone communication and data transmission  services, was selected for provision of universal 
telecommunication services in rural areas with the u se of 45 MH radio frequencies.  This company 
will build fixed telephone lines in those rura l areas, where they don't exist.    
Until recently, due to the "last mile" problem, opera tors could not access their subscribers in towns 
and had to use the services of the "Kazakhtelecom" JSC, which could not fully meet their 
requirements. Based on the international experience of development of the local telecommunications 
market, with the purpose to reso lve the "last mile" problem of access to customers, 21 operators 
received permissions to use the radio-spectrum in the range between 2-5.9 gigabytes.  
Currently these operators are purchasing necessary eq uipment to expand communication networks for 
provision of local telephone communicati on and data transmission services.    
The national communication and broadcasting satellite  "KAZSAT" is planned to be launched in 2006 
and is called to facilitate development of  the satellite communication services market. 
In the third phase of the telecommunications sector liberalization process, according to the Law "On 
Communications", all restrictions related to inte rconnection between operato rs were removed as of 
1 January 2006, and subscribers have the technical  opportunity to choose operators of long-distance 
and international communications.  
The services on operator's connection to the universal telecommunication network services and 
telephone transit traffic services will still be qualif ied as regulated services, which could be excluded 
from the list of natural monopolies subject to development of a competitive environment. 
As to postal services, Government regulation of tariffs (prices) in this sector is limited to dispatch of 
regular mail only. 
Question 27 
Paragraph 72:  We welcome information from Kazakhstan that it plans to eliminate price 
controls for electrical power services, rail tr ansport services and certain telecommunication 
services. Could you give a state of play of this process? What is the timetable foreseen for the elimination of price controls? 
Answer: 
 
1.  Electric power industry  
In order to increase the efficiency of the electric power industry, in February 2004, the 
Concept on Further Development of Market Rela tions in the Electrical Power Industry (the 
Concept) was approved.  The Concept launched a stage-by-stage development of retail and 
wholesale market of electricity. WT/ACC/KAZ/66 
Page 32  
 
  Implementation of the Concept will lead to the following:  
− further improvement of the wholesale market of electricity on the basis of 
development of the centralized trade in electric power (including spot bidding "next day") and online balanced market;  
− development of competition in the retail market of electricity; and 
− completion of privatization of electricity supply network companies. 
With the purpose to enhance the tariff polic y and create incentives for development of the 
centralized market, the Methodology on formati on of tariffs for electric power transmission 
services through interregional networks (JSC "KEG OC") has been revisited by the Agency on 
Regulation of Natural Monopolies. According to  the amendments made to the Methodology, 
as of 1 January 2006, the direct dependence of the tariff rates on the distance of power transmission has been removed, and the energy  deficiency and network capacity coefficient 
has been introduced. 
As for development of the retail electricity ma rket and creation of conducive environment for 
further development of competition, by 1 April 2005, the phase one of the Concept has been practically implemented. In par ticular, part of electric  power procurement with the purpose to 
sell them to retail consumers has been carried out through centralized electric power bidding; 
separation of heating networks from energy s ources has been undertaken; equal conditions for 
supply of energy power has been created with regards to competition between national level 
electric stations and regional producers of electric power . 
Within the framework of the process of sep aration of electric power transmission from 
electric power supply services, power supply companies have been established in the majority of regions of Kazakhstan.  The major part of power supply companies have been registered as 
companies with a dominant (monopolistic) positi on, whose tariffs are regulated by the 
Committee on Protection of Competition under the Ministry of Industry and Trade. Market players should notify the Committee on expect ed increases in prices for monopolistically 
produced services and the reasons such incr eases along with the documents, proving the 
reasons for price increases in writing 30 days prior to the day, when the new prices are planned to be introduced. 
Since the second quarter of 2005 and onwards , it is planned to further develop the 
competition at the retail market of electri c power among power supply companies. Local 
executive bodies choose among two options in coordination with the authorized body.  According to the first option, the retail consum ers choose an energy supplying organization, 
while the second option provides for determination of PSOs for the  region as a result  of the 
tender carried out by the authorized body.  
Since the energy supply will ta ke place in a competitive retail market, the energy providers 
will themselves set tariff rates on electric pow er for final consumers in accordance with 
market principles and the procedures established by the national legislation. 
2.  Railway transport
 
With adoption of the Program on Railway Transport Restructuring for 2004-2006 and  
amendments to the Law "On Railway Transport" in July 2004, the process of institutional and 
financial separation of activities subject to state regulation as natural monopolies from other types of activities of the JSC National Company "Kazakhstan Temir Zholy" has been launched. In particular, the "Kazzheldortrans " JSC was created as the national cargo carrier 
and provider of train-cars rental services, a nd the "Locomotive" JSC was created to provide  WT/ACC/KAZ/66 
 Page 33 
 
 
  locomotive header services. "Kazakhstan Temir Z holy" owns 100 per cent of shares of both 
companies. 
In 2004, the amendments have been made to the national legislation on natural monopolies. 
As a result, the state regulation of tariffs /prices by the Agency on Regulation of Natural 
Monopolies have been limited to main-line railway network provision services instead of the 
railway networks operation services, when the tariffs applied for passenger and cargo railway 
transportation were subject to state regulation. 
As a result of the railway sector reform, services related to the use of main-line railway 
network and administration of the transporta tion process are qualified as natural monopoly.  
Carriers (owners of wagons) and companies providing services to the railway sector, are 
currently functioning in a competitive environment, although they hold a dominating position 
in the railway transportation services market.   
Furthermore, the Agency on Regulation of Na tural Monopolies has elaborated the Concept on 
Development of the Tariff Policy for Natu ral Monopolies, approved by the Government 
Resolution No. 455 of 13 May 2005.  The main goal of the Concept is to determine the tariff 
policy in the sphere of natural monopolies, whic h will ensure the coordinated development of 
various sectors of the national economy.   
In this view, the Concept's ma in objectives are as the following: 
− ensuring transparency of tariff formation mechanisms;  
− establishment of the monitoring system which will be based on the balanced 
assessment criteria regulation; 
− development of economic models, which will allow to assess the impact of the tariffs 
set for services of natural monopolies on va rious sectors of the national economy; and 
− enhancement of control mechanisms and analysis tools of activities of natural 
monopolies. 
3.  Telecommunications Sector  
See the answer to the previous question. 
- Competition Policy 
Question 28 
Paragraph 75 of the draft report indicates that  legislation on competition policy includes the 
"Law on Competition and Restriction of Mono polistic Activities" and the "Law on Unfair 
Competition".  Furthermore, as indicated in pa ragraphs 56 and 57, the Agency on Natural 
Monopoly Regulation was the regulating body for natural monopolies and the Committee on 
the Protection of Competition under the Ministry  of Industry and Trade was responsible for 
regulating activities of entities with a dominant (monopolistic) market position under the "Law 
on Competition and Restriction of Monopolistic Activities".   
Could Kazakhstan please explain which agency is responsible for the regulation of unfair 
competition activities? WT/ACC/KAZ/66 
Page 34  
 
  Answer:
 
According to Paragraph 1 of the Presidential De cree No. 1449 "On Measures on Further Improvement 
of the System of State Governance" of 29 September 2004, the ministries are assigned with strategic functions, such as development of  national policies in their give n sectors.  Whereas the committees, 
which are supervised by ministries and represen t their integral parts, are responsible for 
implementation of the relevant na tional policies and regulations.  
The Ministry of Industry and Trade of the Repub lic of Kazakhstan is the central executive body 
responsible for development of the national polic y and regulatory framework on the protection of 
competition, including regulation of unfair competition activities.  The Committee on Protection of Competition under the Ministry of Industry and Trad e of the Republic of Kazakhstan is responsible 
for implementation and enforcement of the national policy on the protection of competition, including 
regulation of unfair competition.   
Question 29 
What are the possible (minimum and maximum) sanctions on violation of the above-mentioned 
two Laws?  Who will decide these sanctions?  
Answer:
 
Article 147 of the Code of the Republic of Kazakhs tan on Administrative Violations (hereinafter - 
CAV) stipulates the following types of sanctions for violation of antimonopoly legislation:    
1. Restriction of competition, unfair compe tition, abuse of dominant position (monopolistic) 
position on the market, as well as other viola tions of antimonopoly legislation, if such 
activities do not contain features of criminal actions or did not lead to illegal acquisition of 
income - shall entail ch arges for natural persons in the amount of 50 Monthly Calculation 
Indices (hereinafter – MCIs), for individual entrepreneurs and officials – in the amount of 100 MCIs, for juridical persons in the amount  of 1,000 MCIs (in 2006, 1 MCI equals to 
KZT 1,030 or US$ 8.00); 
2. The same activities, committed repeatedly in  the course of one year after imposing an 
administrative penalty, provided for in part 1 of this Article,  entail a fine for natural persons 
in the amount from 50-100 MCIs, for individual entrepreneurs and officials – in the amount from 100-400 MCIs, for juridical persons in the amount from 1,000-2,000 MCIs; 
3.   Activities, stipulated in part 1 of Article 147, having lead to acquisition of income, - entail 
charges for natural persons in the amount from 50-100 MCIs, for individual entrepreneurs and 
officials – in the amount from 100-400 MCIs, for juridical persons –in the amount from 
1,000-2,000 MCIs with confiscation of revenues,  money, capital stock, obtained as a result of 
the administrative violation.   
According to the Article 565 of the CAV,  antimonopoly agency shall examine the cases of 
administrative violations, which are stipulated in parts 1 and 2 of Article 147.  The head of the 
antimonopoly body and his/her deputies as well as head s of local branches of the antimonopoly body 
and their deputies shall have right to examine th e cases on those administrative violations and impose 
administrative penalties.  
The cases on administrative violations, stipulated in  part 3 of Article 147, shall be examined in 
accordance with part 1 of the Article 541 CAV, by j udges of specialized regional and equal to them 
administrative courts.    WT/ACC/KAZ/66 
 Page 35 
 
 
  The Criminal Code of the Republic of Kazakhsta n stipulates criminal liability for monopolistic 
actions and restriction of competiti on in the order of Article 196.   
1.  Setting up or support of monopolistically hi gh or monopolistically low prices, as well as 
restriction of competition through division of market shares, market access restrictions, 
removal of other players, setting up or support of  uniform prices, if such acts cause a big 
damage to a person, organisation or a state, shall be fined in the amount from 200-500 MCIs 
or in the amount of a salary or other income for the period from 2- 5 months of the convicted, 
or shall be arrested for the period of 4-6 months , or shall be subject to correctional tasks for 
the period up to two years, or custodial restraint for the period up to two years, or 
imprisonment for the same period. 
2.  The same actions repeatedly committed by a group of people on prior conspiracy or by an 
organized group, or by a person, who used offici al position, shall be surcharged in the amount 
from 500-700 MCIs or in the amount of a salary or other income of the convicted for the period of 5-7 months or imprisonment for the pe riod up to five years with deprivation of the 
right to hold specific office posts or to be invol ved in certain types of activities for the period 
up to three years or without deprivation of such rights.   
3.  Activities, stipulated in parts 1 or 3 of the Article 196, committed with use of physical force 
or with the threat to use it, and as a conse quence with annihilation or damage of alien 
property or with threat of its annihilation or da mage, in the absence of blackmailing, shall be 
punished by imprisonment for the term from th ree up to seven years with confiscation of 
property or without confiscation. 
Question 30 Is there any judicial review procedure or system applying to the sanctions? 
Answer:
 
1.  Chapter 4 of the Law of the Republic of  Kazakhstan "On Competition and Restriction of 
Monopolistic Activity" (hereinafter - the Law) defines the responsibility for violation of the 
antimonopoly legislation. 
Chapter 5 of this Law also sets the procedures on adoption, appeal, and execution of 
instructions and resolutions made by the antimonopoly agency. 
Subject to paragraph 1 of Article 26 of the Law, instructions and resolutions of the 
antimonopoly agency shall be implemented within  the period stated therein. Failure to 
implement the said instructions and resolutions  within the stated period entails sanctions 
stipulated in this Law and other legislation of the Republic of Kazakhstan. In cases when 
instructions or resolutions of the antimonopoly body to restore the condition that existed 
before the violation have not been implemented, the antimonopoly agency has the right to appeal to the court to force the organization to  restore back the condition that existed before 
the violation. 
Whenever an organization fails to fulfil an inst ruction or resolution cancelling whether in part 
or in full a legal act, which is in breach of the antimonopoly legislation, the antimonopoly 
agency has the right to appeal to  the court to qualify such an act invalid either in part or in 
full. 
If an organization fails to fulfil an instruction or  resolution changing or terminating a contract, 
which is in breach of the antimonopoly legislation,  or instructing conclusion of a contract 
with another market player, the antimonopoly agen cy has the right to appeal to the court to WT/ACC/KAZ/66 
Page 36  
 
  qualify such a contract invalid either in part or in  full, or to force to conclude the contract with 
another market player. 
Whenever an organization fails to fulfil an inst ruction or resolution, wh ich obliges transfer of 
proceeds obtained as a result of a violation of the antimonopoly legislation to the public budget, the antimonopoly agency has the right to a ppeal to the court to collect such proceeds 
and transfer to the budget. 
Paragraph 2 of the Article stipulates that whenever an organization fails to pay the fine in 
time or in full, the antimonopoly ag ency has the right to appeal to  the court to collect the due 
fine as well as the penny of 1 per cent of the due amount per every day of delay. 
Subject to paragraph 3 of Article 26 of the Law,  whenever an organization fails to fulfil an 
instruction of resolution, the antimonopoly ag ency can appeal to the court to enforce 
implementation of its instruction or resolution. 
In addition, Article 27 of the Law stipulates th e procedures on appealing the instructions and 
resolutions of the antimonopoly agency. Paragr aph 1 of the Article, for instance, entitles 
government bodies (and their officials) with the right to appeal to the court to qualify 
instructions and resolutions of the antimonopoly ag ency invalid in part or in full, or to cancel 
or change resolutions on administrative di scipline/punishments. Filing a suit suspends 
execution of an instruction or resolution in qu estion until the court processes the claim and the 
court's decision takes legal force. 
Paragraph 2 of the Article provides that antim onopoly agency's instructions and resolutions 
may be appealed within six months since the day of issue, except for the claims with no 
limitation of action.  
2.  In accordance with Article 278 of the Civil Code of the Republic of Kazakhstan No. 411-11 
of 13 July 1999, a natural or juridical person shall have the right to litigate the decisions, 
actions (or failure to act) of a government body, local authority, public association, 
organization, official, civil servant in the court directly.  
Prior appeal to higher bodies, organizations  and officials shall not be a mandatory 
precondition for submission of the case to and examination by the court as well as for its 
resolution. 
The decisions, action (or failure to act) of government bodies, local authorities, public 
associations, organizations, officials, civil serva nts being litigated include joint or individual 
decisions or action (or failure to act) which entailed:  
− infringement of rights, freedoms and interest s of natural and juridical persons, which 
are protected by law;  
− impediments created for exercising rights and freedoms by natural persons, as well as 
for execution of rights and inte rests by juridical persons, which are protected by law; 
and 
− natural or a juridical person is imposed w ith illegal obligations or illegally sued.  
A natural or a juridical person shall have the right  to appeal to the court within the term of 
three months following the day when they reveal ed the fact of infringement of their rights, 
freedoms and interests protected by law.   WT/ACC/KAZ/66 
 Page 37 
 
 
  Applications shall be examined by the court w ithin one month.  Participation of a natural 
person, representative of a juridical person, management of the government body, local 
authorities, public associations, organizations, o fficial or civil servant, the decisions and 
actions of whom are being litigated, is mandatory.   
Failure of the above-mentioned pe rsons, who were duly informed about the date and venue of 
the court session, to appear in the court room shall not impede the examination of the case.  
However, the court can qualify the appearance of the specified persons as compulsory.   
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 31 Paragraphs 86-87:  As we noted last November, these two paragraphs cover the issue of judicial 
and administrative appeals, but still do not appear  to focus on the specific WTO-related issue of 
how importers and exporters ( а) appeal customs and other WTO-related decisions within 
administrative channels; (b) appeal administrative rulings to а court or other "independent 
tribunal" as provided for in Article Х of the GATT. 
Please redraft these paragraphs to address: ( а) right of administrative appeal by traders and 
other interested parties of decisions affecting WT O-related issues, e.g., customs, application of 
TBT and SPS requirements, import or export licen sing, TRIPS, etc.; (b) the right appeal to а 
court of other "independent tribunal" as provided for in Article Х of the GATT; and 
(с) describe and clarify the legal basis for such appeals. 
At а minimum, commitments will be necessary  concerning uniform application of WTO 
throughout Kazakhstan and the disposition of the government to enforce WTO when alerted to 
instances where such application was not occurring or not in а uniform manner; and 
concerning the right of administrative and judicial appear from government decisions on WTO issues. 
Answer:
 
In accordance with Article 278 of the Civil C ode of the Republic of Kazakhstan No. 411-11 of 
13 July 1999, a natural or juridical person shall ha ve the right to litigate the decisions, actions (or 
failure to act) of a government body, local authority , public association, organization, official, civil 
servant in the court directly.  
Prior appeal to higher bodies, organizations and officials shall not be a mandatory precondition for 
submission of the case to and examination by  the court as well as for its resolution. 
The decisions, action (or failure to act) of govern ment bodies, local authorities, public associations, 
organizations, officials, civil servants being litigated include joint or individual decisions or action (or 
failure to act) which entailed:  
− infringement of rights, freedoms and interests of natural and juridical persons,  which are 
protected by law;  
− impediments created for exercising rights and freedoms by natural persons, as well as for 
execution of rights and interests by juridical persons, which are protected by law; and 
− natural or a juridical person is imposed w ith illegal obligations or illegally sued.  WT/ACC/KAZ/66 
Page 38  
 
  A natural or a juridical person shall have the right to appeal to the court within the term of three 
months following the day when they revealed the f act of infringement of their rights, freedoms and 
interests protected by law.  
Applications shall be examined by the court with in one month. Participa tion of a natural person, 
representative of a juridical person, management of the government body, local authorities, public 
associations, organizations, official or civil serva nt, the decisions and actions of whom are being 
litigated, is mandatory.   
Failure of the abovementioned pers ons, who were duly informed about the date and venue of the court 
session, to appear in the court room shall not impe de the examination of the case. However, the court 
can qualify the appearance of the specified persons as compulsory.   
According to Article 493 of the Customs Code of the Republic of Kazakhstan, any person as well as 
his/her representatives shall have a right to appeal either to customs authorities, including the higher 
customs authority or the authorized body on customs issues, and/or the court, the decision, action (or 
failure to act) of the customs authority, if such decision and/or action (or failure to act) violates the 
rights and interests of the person, impedes exercisi ng the rights or illegally imposes any obligation.  
Submission of the complaint to the court sha ll withhold execution of the decision made on the 
complaint.  
Complaint against the decision, action (or failure to  act) of the customs officer shall be submitted to 
the relevant customs body or to the higher customs authority.  Complaint against the decision, action 
(or failure to act) of the customs authority shall be  submitted to the higher customs authority or to the 
authorized body on customs issues.  
Complaint against the decision, action (or failure to  act) of the customs authority and customs officer 
can be submitted within the term of one year:  
− from the day when a person revealed infringement of his rights in customs sphere, creation of 
impediments for exercising of such rights or im position of any obligation not stipulated by the 
customs legislation of the Republic of Kazakhstan; and 
− from the expiry date of the established period for decision making by the customs authority or 
customs officer as stipulated in the customs le gislation of the Republic of Kazakhstan.  
Complaint against notification of the customs aut hority on enforcement of debts and fines shall be 
submitted within the term of ten days.  If due to valid reasons the person failed to submit the 
complaint within the established term, upon his/he r written request, the deadline could be extended 
judicially.    
The complaint shall be submitted in written form . Submission of a complaint shall not withhold 
execution of the appealed decisions, action (or failure  to act) of the customs authority and/or customs 
officer, except for the following cases:  
− when the higher customs authority or the au thorized body on customs issues, examining 
complaint, has sufficient grounds to believe, that  the appealed decision, action (or failure to 
act) of the customs body and/or customs officer do not comply with the customs legislation of the Republic of Kazakhstan; and 
− appeal of notification on enforcement of debts and fines.  
Complaint against the decision, action (or failure to act) of the customs authority shall be examined by 
higher customs authority or authorized body on cust oms issues. Complaint against the decision, action  WT/ACC/KAZ/66 
 Page 39 
 
 
  (or failure to act) of the customs officer shall be ex amined by the relevant customs authority or by the 
higher customs authority. Complaint against the deci sion, action (or failure to act) of the head of 
customs authority shall be examined by the higher customs authority or authorized body on customs 
issues. On behalf of the customs authority, the deci sion on the complaint shall be made by the head of 
the given customs authority or his/her deputy.   
Complaint must be examined and the decision shall be taken within the term not exceeding 15 days 
from the date of registration of a complaint, excl uding complaints, requiring further study and/or 
verification, which shall be examined within the term  of one month from the date of its registration.   
In accordance with Article 503 of the Customs Code, decision, action (or failure to act) of the customs 
body or customs officer can be examined using si mplified procedure in cases when the value of the 
goods and vehicles in question do not exceed one hundred Monthly Calculation Indices (MCI). 
Simplified procedure represents submission of a written complain to the head of the customs 
authority.  Complaint subject to simplified proce dure shall be examined immediately and the decision 
shall be taken within the one day.  The examina tion of the complaint and the decision made using 
simplified procedure shall not prevent submission of co mplaint in the order and terms stipulated in the 
Customs Code.   
In accordance with Article 552 of the Tax Code of  the Republic of Kazakhstan, a complaint against 
the notification on the results of tax inspection c onducted by tax officers shall be examined by the 
relevant tax authorities. Submission of a complaint by a taxpayer to the court shall withhold execution of the notification in question. A taxpayer shall have a right to appeal the notification in relation to the 
amount of imposed debts and fines, as well as to appe al the actions (or failure to act) of tax officers in 
the court.  
According to Article 566 of the Tax Code of the Republic of Kazakhstan, a ny taxpayer shall have a 
right to appeal the actions (or failure to act) of tax officers to higher tax authorities or to the court 
within the procedure established by the Civ il Code of the Republic of Kazakhstan.   
In accordance with Article 42 of the Law of the Republic of Kazakhstan "O n Technical Regulating", 
the actions (or failure to act) of public officers, executing state control and supervision, can be 
appealed in accordance with the legislation of the Republic of Kazakhstan.  
An applicant may appeal measures undertaken by  an organization conducting conformity assessment 
of products. In such cases, the applicant can apply to the Board of Appeals of the organization 
conducting conformity assessment. In cases when  the applicant does not agree with the 
abovementioned Board's decision, he/she can app eal to the Board of Appeals of the Committee on 
Technical Regulating and Metrology under the Ministry of Industry and Trade of the Republic of 
Kazakhstan. In this regard, the national standard  ST RK 3.10 "The Order of the Examination of 
Appeals" (the Standard) was approved. 
In accordance with the Standard, the applicant shall submit an appeal within one month since the date 
of receipt of notification on the decision made by the accredited certification bodies.  The appeal shall 
be made in discretionary written form, with encl osed correspondence and ot her relevant documents. 
The boards of appeals shall include specialists w ith qualification and experience which could ensure 
unbiased and justified decisions.  While considering appeals, the board shall undertake all the required 
measures in order to keep the confidential data constituting commercial secret undisclosed. 
The boards of appeal shall consider an appeal with in 15 days since the date of submission of the 
documents.  The board's decision shall be made in the form of a protocol and sent to the applicant 
within ten days since the date of the meeting. WT/ACC/KAZ/66 
Page 40  
 
  The decision made by the Board of Appeals of the Committee on Technical Regulating and 
Metrology under the Ministry of Industry and Trade may be appealed in the court in accordance with 
the legislation of the Republic of Kazakhstan. 
ST RK 3.10 – "The Order of the Examination of Appeals" is available through document 
WT/ACC/KAZ/66/Add.1. 
Question 32 
Legislative work plan for 2005 (WT/ACC/KA Z/58):  We welcome the progress made in 
adoption of laws in 2004 and would be happy to have the laws adopted since August 2004 to be submitted to the Working Party as soon as possible. 
Answer: 
 
Laws of the Republic of Kazakhs tan adopted since August 2004: 
− "On Technical Regulating" No. 603-II of 9 November 2004; 
− "On Amendments and A ddenda to the Law of the Republic  of Kazakhstan "On Environment 
Protection" on Industrial and Consumption Waste" No. 8-III of 9 December 2004; 
− "On Amendments and A ddenda to Legislative Acts of the Republic of Kazakhstan on 
Taxation" No. 11-III of 13 December 2004; 
− "On International Commercial Arbitrage" No. 23-III of 28 December 2004; 
− "On Amendments and A ddenda to Legislative Acts of the Republic of Kazakhstan on 
Licensing" No. 45-III of 15 April 2005; and 
− "On Amendments and A ddenda to Legislative Acts of the Republic of Kazakhstan on 
Separation of Authorities between the Levels of  State Governance and Budget Relations" (in 
connection with amendments made in laws "O n Plants Quarantine" and "On Veterinary") 
No. 13-III of 20 December 2004.  
The texts of revised legislation are ava ilable through document WT/ACC/KAZ/66/Add.1. 
Besides, on 8 July 2005 the Law of the Republic of Kazakhstan No. 66-III "On State Regulating of 
Agricultural and Industrial Complex and Rural Territo ries Development" has been enacted, the text is 
available through document WT/ACC/KAZ/66/Add.1.  
Question 33 As regards the previous legislative plan (WT/ ACC/KAZ/43/Rev.1), we note that the following 
laws foreseen for adoption for the second half of 2004 have neither been adopted in 2004 nor 
foreseen in the new legislative plan for adoption  in 2005: Amendments to the Law on Natural 
Monopolies; Law on Cinema and Law on Informat ion and Protection of the Information. Could 
you explain the current status of adoption of these pieces of legislation?  
Answer: 
 
The text of the Law No. 9-III "On Amendments and Addenda to Legislative Ac ts of the Republic of 
Kazakhstan on Issues Related to Activities of Natura l Monopolies" of 9 December 2004, is available 
through document WT/ACC/KAZ/66/Add.1. 
As it has been stated in document WT/ACC/KAZ/43/ Rev.1, the draft Law "On Culture" (new edition) 
has been submitted to the Parliament of the Repub lic of Kazakhstan on 24 Ju ne 2004.  It should be 
noted that the provisions of the draft Law will be used as foundation for regulat ion of development of  WT/ACC/KAZ/66 
 Page 41 
 
 
  the entire national culture. Due to this, the Government of Kazakhstan took a decision to elaborate the 
draft law "On Cinema" after the adoption of the La w of the Republic of Kazakhstan "On Culture".  
Thus, the elaboration of the draft law "On Cinema" has been excluded from the legislative plan of the 
Government for 2004 by the Resolution of the Government No. 7 of 12 January 2005.    
Regarding the draft Law "On Information and Prot ection of Information", the Government requires 
certain time to study international expertise in the field of use, dissemination and protection of 
information with the purpose to harmonize the provisions of the draft Law with international 
practices. Due to this, the Government made a decision on submission of the draft Law to the Parliament when it will be ready.  
Currently the Ministry of Culture and Information is  in the process of development of the draft Law 
"On Information and Protection of Information" b ased on the international practice of regulation of 
this sphere.   
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights 
Question 34 
We thank Kazakhstan for the additional information provided in WT/ACC/KAZ/57 in the 
responses to Questions 31-41 and in WT/ACC/SPEC/KAZ/9.  The responses, however, avoid the central question of whether the right to  import or export is conditioned u роn requirements that 
deal with distribution, rather than the basic act of supplying goods to the distribution chain. 
In this regard, it is not clear what activity li censing requirements are relevant to importation or 
exportation. Nor is it clear whether registration  (which is apparently required to import and to 
export) requires investment and establishment. 
Wе have the following questions: 
Paragraph 90:  Kazakhstan states in this par agraph that foreign firms that do not have а 
physical presence in country can carry out import and export activities under civil contracts 
with Kazakh partners. 
Please confirm that this means that foreign ju ridical persons and entrepreneurs can be the 
"importer and exporter of record." 
Also, please confirm that fo reign importers and exporters саn legally sign contracts with both 
Kazakh and foreign entities with а physical presence in Kazakhstan. 
Answer:
 
According to the Instructions on Currency Control in Export-Import Transactions in the Republic of 
Kazakhstan, approved by the Resolution of the National Bank Board of 5 September 2001 No. 343: 
− the term "exporter" means a resident of the Republic of Kazakhstan (juridical person, its 
branch, individual entrepreneur), who conclude d a contract (agreement, treaty) for supply 
(sale) of products outside the customs terr itory of the Republic of Kazakhstan; and 
− the term "importer" means resident of the Republic of Kazakhstan (juridical person, its 
branch, individual entrepreneur), who concluded a contract (agreement, treaty) for acquisition 
and import of goods to the customs terri tory of the Republic of Kazakhstan.  WT/ACC/KAZ/66 
Page 42  
 
  Hence, pursuant to the legislation of Kazakhstan, importers and exporters are the residents of the 
Republic of Kazakhstan. 
According to Article 1 of the Law of the Re public of Kazakhstan "On Currency Regulating and 
Currency Control" and Article 191 of the Budget C ode of the Republic of Kazakhstan No. 98-II of 
24 April 2004, residents of the Republic of K azakhstan are juridical persons, established in 
accordance with the legislation of the Republic of Kazakhstan, located within the territory of the 
Republic of Kazakhstan as well as their branches a nd representatives located in the territory of 
Kazakhstan and outside its territory. 
Foreign juridical persons, who were registered in  Kazakhstan and established commercial presence in 
the form of juridical persons of Kazakhstan, ar e considered as residents of the Republic of 
Kazakhstan.  
Question 35 
Paragraph 90:  We note that there is а substantial difference between the time required for 
registration of small businesses and juridical pers ons (three versus fifteen days). From previous 
submissions and responses to questions, we understand that legislation has removed some 
requirements for small businesse s, however, we still encourage Kazakhstan to consider 
implementing further reform so that the turnarou nd time for registration applications are equal 
for all business entities. 
Answer:
 
The Article 4 of the Law No. 124-III "On Private En trepreneurship" of 31 January 2006 stipulated the 
priority task of the Government to create conduc ive environment for small business development in 
the Republic of Kazakhstan.  The Law "On Privat e Entrepreneurship" invalidated the laws "On 
Protection and Support of Private Entrepreneurship",  "On Individual Entrepreneurship" and "On State 
Support of Small Business".  
In accordance with Article 6 of the Law "On Privat e Entrepreneurship", small business entities are:  
(i) individual entrepreneurs, who are conducting entrepreneurial activity without establishing a 
juridical person with annual average number of employees not exceeding 50, and (ii) juridical 
persons, who are conducting entrepre neurial activity with annual number of employees not exceeding 
50 and average annual value of assets under 60,000 Monthly Calculation Indices as defined by the Law "On National Budget" for the corresponding fiscal year.  
The average annual number of employees of a sma ll business entity shall take into account all 
employees, including those ones working in branch es, representatives and other separate subdivisions 
of the small business entity.  
According to Article 18 of the Law "On Private Entr epreneurship", the preferential treatment granted 
to small business consists in inter alia  establishment of a simplified procedure for state registration 
and liquidation of small business entities.  The preferen tial terms shall not extend to entities, failing to 
meet the criteria set for defining small business entities in Article 6 of the Law.  
Individual entrepreneurs and juridical persons do not qualify for small business entities within the 
meaning of the Law if they are involved in the following types of activities related to:   
− production and/or wholesale distribution of goods subject to excise tax;  
− storage of grain in grain-elevators; 
− lotteries;  WT/ACC/KAZ/66 
 Page 43 
 
 
  − gambling or show business; 
− certification, metrology and quality management;  
− mining, processing and sale of oil, oil pr oducts, gas, electric and heat power; 
− banking (or certain types of banking operations) and insurance (except for insurance agent 
activity);  
− auditing;  
− professional activity on capital market; 
− circulation of radioactive materials; and 
− distribution of narcotic drugs, psyc hotropic substances and precursors. 
The simplified registration procedures for regist ration of small business entities consists of the 
following: 
 1. reduced terms of registration; 
 2. the minimized list of documents to be submitted for registration; and 
 3. reduced registration fee.  
1. In accordance with Article 9 of the Law of  the Republic of Kazakhstan No. 2198 "On State 
Registration of Juridical Persons and Registra tion of Branches and Representative Offices" of 
17 April 1995 (the Law), state registration (re-re gistration) of small businesses and statistical 
registration (re-registration) of their branches and representative offices shall be made within three 
working days following the date of submission of the application with all necessary documents enclosed. State registration (re-registration) of othe r juridical persons and statistical registration (re-
registration) of their branches and representative of fices shall be made within ten working days the 
date of submission of the application  with all necessary documents enclosed.  
2. Small business entities are required to submit the minimized list of documents for state 
registration to justice authorities, including:  (i) appl ication for state registration, (ii) charter, and (iii) 
document proving the payment of the state regist ration duty.  As a rule, small business entities 
function on the basis of the Model Charter; they are not required to submit a Charter of their own. 
Small business entities are not required to submit the location-certifying document.   
Juridical persons other than small business entities are required to submit:  (i) application for state 
registration, (ii) the founding documents (charter, founding agreement or statute), (iii) a document 
certifying the location of the juridical person, and (iv) document proving the payment of the state registration duty. To register a juridical person f ound as a result of reorganization of one or several 
juridical persons, the applicant shall also submit the act of transfer or the separated balance, and a 
document certifying that the creditors of the reorga nized juridical person had been notified about the 
reorganization. 
There are also specific procedural requirements fo r registration of juridical persons engaged in 
specific types of businesses:   
− To register a juridical person conducting activity  in banking or insurance sector, the applicant 
shall additionally obtain the permission fro m the authorized body on regulation and 
supervision of the financial market and orga nizations. Territorially separate divisions of 
banks, which are neither branches nor representa tive offices, shall be created in accordance 
with the procedure laid down by the banking la ws, and they shall not be subject to accounting 
(state) registration. 
− To register a juridical person dealing with pe nsion payments and funds, the applicant shall 
additionally obtain the permission for establishing such a person from the authorized body on regulation and supervision of the financial market and organizations. In cases when one WT/ACC/KAZ/66 
Page 44  
 
  juridical person is the founder of another juri dical person, the applicant, along with the 
founding and other documents, shall submit a statement from the tax collecting authorized body to certify that the founder has no tax debts. 
− A prior consent of the antimonopoly body is required for the state (official) registration of a 
person with dominating (monopolistic) position in  the relevant market of goods (works, 
services) as well as of monopolies. The founder or the person authorized by the founder shall 
sign the application and enclose the founding documents in accordance with the procedure 
established by the laws of the Republic of Kazakhstan. 
− Registration of juridical persons with foreign pa rticipation shall be made in accordance with 
the procedure for the registration of juridical  persons of Kazakhsta n. In addition, the 
abovementioned documents, until otherwise provide d by the international treaties ratified by 
the Republic of Kazakhstan, the following documents shall be additionally submitted: 
 (i)   legalized statement from the trade regi ster or any other lega lized document certifying 
that the founder (a foreign juridical person) is a juridical person according to the laws 
of the foreign country, with certified by notarial services translation into the official (Kazakh) and Russian languages; and 
 (ii)  a copy of the passport or any other document identifying the person of the founder (a 
foreign natural person) with certified by not arial services translation into the official 
(Kazakh) and Russian languages. 
It is prohibited to require any other documents and information except as the ones stipulated in the 
Law and other legal acts.  Refusal in (re)regist ration can be made only on the grounds of the 
provisions stipulated by Article 11 of the Law.   
In accordance with Article 11, violation of the pr ocedure of establishment and reorganization of the 
juridical person, provided for by the legislative acts  of the Republic of Kazakhstan; non-conformity of 
founding documents with the legislative acts of th e Republic of Kazakhstan as well as failure to 
submit an assignment deed or separation balance sheet and absence of provisions on legal succession 
of the reorganized juridical person shall entail refu sal in state registration or re-registration of the 
juridical person.  
Refusal in registration or re-re gistration of a branch (representative) can take place in cases of 
violation of the procedures for founding of a bran ch (representative) established by the legislation of 
the Republic of Kazakhstan, non-conformity of the documents submitted for registration or re-
registration with the Laws of  the Republic of Kazakhstan. 
In cases of refusal in  registration (re-registration), registration authority shall give to the juridical 
person the reasons for refusal within three days in written form, referring to non-conformity of the 
submitted documents with the requirements of legisl ative acts of the Republic of Kazakhstan.  The 
reimbursement of charges for the state (statistical) registration or re-registration of juridical persons, 
their branches and representation offices shall be pe rformed in cases provided for by the Tax Code of 
the Republic of Kazakhstan.  
The text of the Law of the Republic of Kazakhsta n No. 2198 "On State Registration of Juridical  
Persons and Statistical Registration of Branch es and Representative Offices" of 17 April 1995 is 
available through document WT/ACC/KAZ/66/Add.1 
3. The registration fee for small business entities is equal to KZT 2,280 (approximately US$ 17), 
while for other juridical persons KZT 7,600 (approximately US$ 57). 
In conclusion, it should be noted that simplified procedures established fo r registration of small 
business entities represent an integral part of the state's social and economic policy in support of  WT/ACC/KAZ/66 
 Page 45 
 
 
  development of small business entities.  This policy is aimed at creation of additional jobs in the 
economy, decreasing the social disparity and reduc tion of poverty among vulnerable segments of 
population of Kazakhstan.  It should also be noted that the state policy measures in support of small 
businesses apply on a non-discriminatory basis to all residents of Kazakhstan with both domestic and 
foreign ownership, and as such do not contradict to WTO norms.       
Question 36 Paragraph 90:  We commend Kazakhstan for ta king steps to streamline the registration 
requirements, especially centralizing the registratio n system with the "justice authorities."  This 
is а step in the right direction and removes some of the duplicative and burdensome 
requirements that were inherent in the prior registration system. То ensure that we have а clear 
understanding of the system though, we would appreciate responses to the following questions: 
What are the ''justice authorities?" Is it the Minist ry of Justice or some regional or city level 
government entity? 
Answer:
 
The status of justice authorities of the Republic of  Kazakhstan is defined in the Law of the Republic 
of Kazakhstan No. 304-II "On Justice Authorities"  of 18 March 2002 (hereinafter - the Law).  
In accordance with Article 1 of the Law, justic e authorities of the Republic of Kazakhstan are the 
executive bodies, which provide legal basis, within their competence, for functioning of the state, 
sustain legality in the work of government  bodies, organizations, executives and individuals, 
providing protection of rights and legitimate interests of individuals and organizations.  
In accordance with Article 5 of the Law, the integrated system of justice authorities includes:  
-  Justice authorities :  
− The Ministry of Justice of the Republic of Kazakhstan;  
− Committees under the Ministry of Justice of the Republic of Kazakhstan;  
− Territorial justice authorities; 
− Criminal executive system bodies; 
− Institutions (organizations) of criminal  executive system and other subordinate 
organizations. 
For the purposes of state registration of juridical pe rsons, in accordance with the Order of the Minister 
of Justice of the Republic of Kazakhstan No. 667 "On Issues of State Registration of Juridical Persons" of 15 January 1999,  the justice author ities include the Committee on Registration Services 
under the Ministry of Justice and the territorial br anches of the Ministry of Justice.  The oblast 
(regional) or city level government entities are not assigned with registration functions.    
Question 37 
Is а single registration valid  throughout all of Kazakhstan?  
Answer:
 
In accordance with the Law of the Republic of Kazakhstan No. 2198 "On State Registration of 
Juridical Persons and Statistical Registration of Branches and Representative Offices" of WT/ACC/KAZ/66 
Page 46  
 
  17 April 1995, the uniform procedures of registration of juridical persons, their branches and 
representative offices  apply throughout the te rritory of the Republic of Kazakhstan. 
In accordance with Article 1 of the Law, the state registration of juridical persons consists of the 
following steps:  (i) verification of constitutive and other documents submitted for state registration to 
the authorized body of Kazakhstan, (ii) issuan ce of certificate with the registration number, 
(iii) inclusion of information about juridical persons into the single State Register.  
The single State Register is valid throughout the territory of Kazakhstan, i.e. juridical persons 
registered in the State Register are recognized  in the entire territory of Kazakhstan.   
Question 38 
Is the registration process the same  for individual entrepreneurs? 
Answer:
 
In accordance with Article 1 of the Law of th e Republic of Kazakhstan No. 124-III "On Private 
Entrepreneurship " of  31 January 2006, individual en trepreneurship is the  activity of natural persons 
aimed at receiving income, using the property of na tural persons and conducte d  on behalf of natural 
persons at  their own risks and proprietary responsibility.   
In accordance with Article 10 of the Tax Code Re public of Kazakhstan of  12 June 2001, individual 
entrepreneur is a resident or non-resident natura l person, conducting entrepre neurial activity without 
establishing a juridical person.  In accordance with the Civil Code of the Republic of Kazakhstan,  
natural persons shall have right to conduct busin ess without establishing a juridical person, except for 
the cases provided by this Code or other Legislative Acts.   
Article 19 of the Civil Code and Article 27 of th e Law "On Private Entrepreneurship" stipulate the 
state registration procedures for individual entrepreneurs.  
Individual entrepreneurs shall be subject to manda tory registration if they fall under one of the 
following criteria:   
− use employees on a permanent basis; and 
− their aggregated annual revenue, calculated in  accordance with taxation legislation exceeds 
the non-taxable amount of annual income establishe d for natural persons by the legislation of 
the Republic of Kazakhstan.   
The state registration procedure for individual entrepreneurs differs from the state registration 
procedure for small business entities and other juridi cal persons.  The difference relates to the number 
of registration documents, the registration term and the amount of registration fee. 
For state registration, individual entrepreneurs are required to submit:  (i) the application form and 
(ii) the document proving the payment of the state registration duty.  The registration authority shall 
issue the registration certificate the day following th e date of submission of the required documents by 
individual entrepreneurs. The registration certificate is issued for unlimited period provided that the 
specific period has not been requested by the indi vidual entrepreneur in the application form.  The 
registration fee for individual entrepreneurs is 4 Monthly Calculation Indices (MCIs), which is equal 
to approximately US$ 32.   
As in case of small business entities, the simplified procedures for state registration of individual 
entrepreneurs are established to implement the st ate's social and economic policy in support of  WT/ACC/KAZ/66 
 Page 47 
 
 
  development of individual entreprene urship in Kazakhstan.  This policy is also aimed at creation of 
additional jobs in the economy, decreasing the social disparity and reduction of poverty among vulnerable segments of population of Kazakhstan.  It should also be noted that the state policy 
measures in support of individual entrepreneursh ip apply on a non-discriminatory basis and are 
therefore in full conformity with WTO norms.       
Question 39 Paragraph 91:  We again commend Kazakhstan for ta king steps to ensure th at registration fees 
and activity licenses fees are based on th e cost of services rendered using the new МСI 
indicator.  The information provided in Annex 9( с) on the costs that are included in the rate 
calculation is helpful in gaining insight into  how this new system will work. However, the 
methodology seems extremely complex just for the computation of а fee and seems well beyond 
the traditional scope of costs that would be  included in determining the fee for business 
registration. Please provide further explanation ho w the registration fee is based on the cost of 
services rendered and the basis for including co sts such as "purchase of other goods" and 
"national business trips." 
Answer:
 
In order to bring registration fees for juridical pe rsons into full conformity with Article VIII of 
GATT 1994, the "Methodology for Calculation of Import/Export Licensing Fees and Fees for State 
Registration of Juridical Persons" has been appr oved by the Order No. 105 of the Ministry of 
Economy and Budget Planning of 27 August 2005.  According to this Methodology, calculation of 
fees for registration of juridical persons are based on the actual cost of services rendered for 
processing of applications and excludes travel expenses within the country.  The new Methodology 
includes "purchase of other goods", which is comprise d of the cost of stationery, stamps, registration 
journals, etc. 
On 30 December 2005, the Government of the Re public of Kazakhstan has adopted a Resolution 
No. 1324 "On Amendments into the Resolution of  the Government of the Republic of Kazakhstan 
No. 1660 "On Approval of Fees Rates for State Registration of Juridical Persons" of 
19 December 2001".  In accordance with the Reso lution, fee rates for state registration and 
re-registration of juridical persons, their branches and representative offices have been introduced in 
fixed amounts instead of  the amount of Monthly Calculation Indices (MCI) used for state registration services and ad valorem  amount used for state re-registration ser vices.  The fixed fee rates are based 
on the actual costs of state registration and re-registration services.  
The text of the Government Resolution is av ailable through document WT/ACC/KAZ/66/Add.1. 
The text of the Methodology is enclosed in Annex II. 
Question 40 
Para 91: Please provide details on the length of  validity of the registration certificates for all 
types of business entities. 
Answer:
 
As established by Article 12 of the Law of the Republic of Kazakhstan "On State Registration of 
Juridical Persons and Statistical Registration of Branches and Representative Offices", the legal 
authority issues the state registration certificate to  the newly created juridical person and the re-
registration certificate to the juridical person, who passed re-registration procedure.  Certificates shall WT/ACC/KAZ/66 
Page 48  
 
  be issued only if the founding and other documents m eet the requirements set in the legislation of the 
Republic of Kazakhstan.    
In its turn, branches and representative offices shall be  given certificates on statistical registration and 
re-registration certificates in case of re-registration. 
The Law does not define the period of validity of th e registration (re-registration) certificates.  Hence, 
the registration (re-registration) certificates are issued  for unlimited period provided that the specific 
period has not been requested in the application form. 
The certificate shall be given to juridical pers ons, their branches and representative offices in one 
copy and shall be replaced only in the following cases: 
− state (statistical) re-registration; 
− amendments were made to founding documents due to the change of location of a juridical 
person from one oblast to other oblast (or Astana and Almaty cities); and 
− change of location of a juridical person within one oblast. 
Question 41 
Paragraph 93:  We understand the Kazakhstan is in the process of shortening the list of 
activities subject to licensing from 107 to 87.  We would appreciate an update on the draft law and request  that Kazakhstan include on annex li sting all of the activities subject to licensing. 
The annex should include the activity and the agency or agencies that а business would need to 
approach to be issued an activity licence. 
Answer:
 
According to Article 3 of the Law of the Republic  of Kazakhstan "On Licensing" of 17 April 1995, 
introduction of licensing requirements or their elimin ation shall be established by the present law for 
the purposes of national security, implementation of  state monopoly functions, enhancement of the 
rule of law and order, protection of  environm ent, property, life and health of citizens.  
As of 1 January 2005, 134 types and 728 sub- types of activities were subject to licensing. 
In accordance with the Law of the Republic of Kazakhstan No. 45-III "On Am endments and Addenda 
to Legislative Acts of the Republic of Kazakhsta n on Licensing" of 15 April 2005, 25 types and 410 
sub-types of activities subject have been removed from the list of activities subject to licensing.  
In December 2005, the draft Law of the Republic of Kazakhstan "On Licensing" (new revision) has 
been submitted to the Parliament. 
The draft Law will provide for exclusion from the list of activities subject to licensing of the 
following: 
(i) types of activities: 
− installation, testing, and technical maintenance of fire alarms and fire safety 
equipment; 
− production of fire safety machinery, e quipment and fire protection facilities; 
− operation of cranes (mobile cranes); 
− technical operation of communica tion networks and lines; and 
− foreign labour force employment related services.  WT/ACC/KAZ/66 
 Page 49 
 
 
  (ii)  subtypes of activities: 
− consulting services on guarding and legal pr otection against security violations; 
− repair of civil pyrotechnic substances and products containing civil pyrotechnic 
substances; 
− collection of civil pyrotechnic substances  and products containi ng civil pyrotechnic 
substances; 
− distance education services; 
− duty free shops; and 
− services related to customs free warehouse regime.  
Thus, according to the draft Law "On Licensing", 21 types and 78 sub-types of activities are planned 
to be removed from the list of activities subject to licensing.  
The text of a draft Law "On Licensing" (n ew version) is ava ilable through document 
WT/ACC/KAZ/66/Add.1.  
In addition, in order to avoid duplication in the st ate permissions system, in accordance with the draft 
Law "On Amendments Addenda to Legislative Ac ts of the Republic of Kazakhstan on Auditing", 
which is currently under the review of the Parlia ment of the Republic of Kazakhstan, the following 
types of auditing services will be excluded from the list of activities subject to licensing: 
− auditing of banking activity; 
− auditing of (insurance) reinsurance organizations; 
− auditing of savings pension funds; and 
− auditing of organizations, d ealing with investment management of pension assets. 
The abovementioned types of auditing services therefore will be subject to licensing requirement only 
based on Article XI of the Law "On Licensing" of 17 April 1995.  
To simplify licence issuance procedures, the list of activities subject to licensing in the draft law were 
divided into three main groups:   
− activities linked to security of high risqué or da nger (utilization of atomic energy, industrial 
types of activities); 
− those of special public importance (drugs tr afficking, weapons, healthcare, guaranteeing 
information security, etc.); and 
− private entrepreneurial activities (architectur al and construction, production and sale of 
alcohol products, evaluation activity, etc.). 
The list of the licensed types and subtypes of ac tivities with the relevant legal act, as well as the 
governmental body (licensor), authorized to issue the licenses for activities, subject to licensing is 
enclosed in Annex III.   
Question 42 
According to WT/ACC/SPEC/KAZ/9 paragraph 94, а production activity licence is necessary to 
import ethyl alcohol.  An activity licence to produce, store, and wholesale sale to import 
alcoholic beverages, other than beer is also necessary. 
The requirement of an activity licence seems redu ndant since an import licence is necessary for 
ethyl alcohol and al coholic beverages. WT/ACC/KAZ/66 
Page 50  
 
  We ask that Kazakhstan remove this requirement for an activity licence. 
Answer:
 
In accordance with Article 10 of the Law of the Republic of Kazakhstan No. 429-1 "On State 
Regulating of Production and Turnover of Ethyl Spir it and Alcoholic Beverages" of 16 July 1999: 
− Licence for importation of ethyl alcohol could be obtained provided that there is an activity 
licence for production of alcoholic beverages, where ethyl alcohol is used as a component; 
− Licence for importation of wine material could be  obtained provided that there is an activity 
licence for production of alcoholic beverages, wh ere wine material is used as a component; 
and 
− Licence for importation of alcoho lic beverages could be obtaine d provided that there is an 
activity licence activity either for production of alcoholic beverages or for storage and 
wholesale of alcoholic beverages (excluding beer). 
Taking into account that ethyl spirit used by co mpanies of Kazakhstan for pharmaceutical, medical 
and technical purposes is supplied by domestic producers, ethyl spirit is imported solely for 
production of alcoholic beverages.   
Elimination of a requirement for activity licence fo r production of alcoholic beverages in order to 
import ethyl spirit and wine material could result in  disappearance of importe d products in the illegal 
so-called "grey" market.  In it's turn, this ma y cause negative consequences for the health of 
population and non-payment of taxes imposed on alc oholic beverages produced using imported ethyl 
spirit and wine materials. Hence, the Government of Kazakhstan intends to maintain the currently 
applied regulation for importation of ethyl spirit and wine materials.   
As for importation of alcoholic beverages, the G overnment of Kazakhstan is planning to introduce 
amendments into the Law "On State Regulating of Production and Turnover of Ethyl Spirit and 
Alcoholic Beverages", according to which in orde r to obtain a licence for importation of alcoholic 
beverages:  
− residents shall have an activity licence for either for production or for storage and wholesale 
of alcoholic beverages (excluding beer);  
− non-residents shall have a contract with a ju ridical person of the Republic of Kazakhstan, 
which holds an activity licence for either for production or for storage and wholesale of alcoholic beverages (excluding beer). 
In accordance with the Governme nt Resolution No. 1031 " On Import Licensing of Ethyl Spirit and 
Alcoholic Beverages in the Republic of Kazakhstan"  of 27 June 1997, an activity licence is not 
required to obtain a licence for importation of beer.   
Question 43 
Apparently an activity licence is necessa ry to trade in alcoholic beverages. 
Are there other products? Pharmaceuticals? Agro -chemicals? Certain electronic equipment? 
Are any of these products also subject to import licensing? Does an importer have to have an 
activity licence to secure import licenses?  WT/ACC/KAZ/66 
 Page 51 
 
 
  Answer:  
In accordance with paragraph 5 of the Rules on Import-Export Licensing of Goods (Services and 
Works) in the Republic of Kazakhstan approve d by the Government Resolution No. 1037 of 
30 June 1997, in order to obtain an import licence from the authorized body, the applicant inter alia  
has to submit the following documents: 
− an activity licence issued by the authorized st ate body for certain types of activities; and 
− a permission from the Government of the Repub lic of Kazakhstan or the authorized state 
body for certain goods listed in Annex 2-5 to the Government Resolution No. 1037. 
Import licence for armament and military equipm ent, and special components for their production 
shall be issued by the Industry and Scientif ic and Technical Development Committee under the 
Ministry of Industry and Trade of the Republic of Kazakhstan based on the following: 
− permission of the Government of  the Republic of Kazakhstan; 
− activity licence issued by the Industry and Sc ientific and Technical Development Committee 
under the Ministry of Industry and Trade of th e Republic Kazakhstan for sale of weapons and 
ammunition to it, military equipment, spare part s, components and appliances to them, if they 
are not used in other industries; 
− expertise of authorized state bodies in the field of sanitary and epidemiological control; and 
− expertise of authorized state bodies in the field of environmental protection.  
Import licence for nuclear materials, technologies,  equipment and settlements, special non nuclear 
materials, sources of active radiation, including ra dioactive waste products shall be issued by the 
Industry and Scientific and Technical Developmen t Committee under the Ministry of Industry and 
Trade based on the following: 
− permission of the Government of the Republic of Kazakhstan; and 
− activity licence issued by the Atomic Energy  Committee under the Ministry of Energy and 
Mineral Resources of the Republic of Kazakhs tan for importation of nuclear materials, 
technology and equipment, special non nuclear materials; double purpose goods, technologies 
and equipment, source of ionizing radiation, radioactive substances. 
Information on the necessity to obtain an activity  licence as well as the an expertise of sanitary, 
ecological, mining and technical inspection bodies a nd State Energy Inspection (Gosenrgonadzor) is 
given in the table below.  The permission of th e Government of the Republic of Kazakhstan for 
importation of the goods listed in th e table below is not required.    
  WT/ACC/KAZ/66 
Page 52 HS Number Goods Authorized Body issuing an 
Import Licence Type of activity subject to 
licensing Authorized Body issuing an 
Activity Licence Expertise of relevant bodies 
9022  X-ray equipment, devices 
and equipments with use of 
radio-active substances and 
isotopes. Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Sale of X-ray equipment, 
devices and equipment using 
of radioactive substances and 
isotopes. Atomic Energy Committee 
under the Ministry of Energy 
and Mineral Resources of the 
Republic of Kazakhstan Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control is 
required  
According to list confirmed by the Government of the 
Republic of Kazakhstan Poison  
                                     
                       Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Sale of poison according to 
list confirmed by the 
Government of the Republic 
of Kazakhstan Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control, 
environment protection and 
industrial safety is required. 
8471 (only  figure typed techniques) 
847330 (only for figure typed 
techniques) 
854390900 (only for figure 
typed techniques) Cryptographic means 
(including cryptographic 
techniques, components for 
cryptographic techniques and 
programme packets for 
cryptographic code) Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Sale of cryptography means 
of the information's 
protection  National Security Committee 
of the Republic of 
Kazakhstan  Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is 
required. 
360100000 (except for the 
gunpowder) 360200000, 
360300, 3604 Gunpowder, explosives, 
means of exploding and  
pyrotechnics  Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan 1.  Trade of explosives and 
pyrotechnics and devices 
using them, (except for 
civil pyrotechnics and 
devices using them) 
2.  Trade of civil 
pyrotechnics and devices 
using them  Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan  
Ministry of Internal Affairs  
of the Republic of 
Kazakhstan  Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is 
required. 
According to list confirmed 
by the Government of the 
Republic of Kazakhstan Official and civil arms         
                                      Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and Trade of the Republic of 
Kazakhstan Trade of fire-arms, civil and 
official arms and their 
cartridges Ministry of Internal Affairs  
of the Republic of 
Kazakhstan  Not required 
According to list confirmed 
by the Government of the 
Republic of Kazakhstan Means of protection from 
fighting toxic substances, its 
parts and accessories.         
                       Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Not required - Expertis e of state bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is 
required.  
   WT/ACC/KAZ/66
 Page 53HS Number Goods Authorized Body issuing an 
Import Licence Type of activity subject to 
licensing Authorized Body issuing an 
Activity Licence Expertise of relevant bodies 
3808 (only preparations for 
plant protection) Chemical means of plants 
protection Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Sale of pesticides  Ministry of Agriculture of the 
Republic of Kazakhstan 
 Expertise of st ate bodies in 
the field of sanitary and 
epidemiological welfare is 
required 
261800000-2620, 3915 Industrial wastes 
 Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan 1. Import in the Republic of 
Kazakhstan ozone-
destructing substances 
and products containing 
such substances. 
2.  Trans-border 
transportation of 
hazardous industrial 
wastes of the 1-3 class of 
danger.  Ministry of  Environmental 
Protection of the Republic of 
Kazakhstan 
 Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control is 
required 
2207 Ethyl alcohol               Tax Committee under the 
Ministry of Finance of the 
Republic of Kazakhstan  
 Production of alcoholic 
beverages  Tax Committee under the 
Ministry of Finance of the 
Republic of Kazakhstan  
 Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is required. 
2204, 2205, 2206 Alcoholic beverages 
(excluding beer) Tax Committee under the 
Ministry of Finance of the 
Republic of Kazakhstan  
 Production of alcoholic 
beverages 
or  
Storage and wholesale sale of 
alcoholic beverages (except 
for beer)  Tax Committee under the 
Ministry of Finance of the 
Republic of Kazakhstan  
 Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is 
required. 
121190800           Opium raw materials 
(medicinal  herbs) 
 Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and Trade of the Republic of 
Kazakhstan Import and export of drugs, 
psychoactive substances, 
precursors Ministry of Internal Affairs  
of the Republic of 
Kazakhstan Not required  
  WT/ACC/KAZ/66 
Page 54 HS Number Goods Authorized Body issuing an 
Import Licence Type of activity subject to 
licensing Authorized Body issuing an 
Activity Licence Expertise of relevant bodies 
830170000, 
847130000, 847141900, 
847149900, 847150900, 
847330100, 851750, 
851780900, 851810, 
851840,  851850900, 
852032,  852033, 
852090900, 8521, 8525, 
8526, 8527 854389900, 900219000, 900580000, 
9013, 901910900, 9006, 
902219000, 902229000, 
(only special technical 
devices, devices of 
information defence and 
other techniques of double 
application) Special technical devices 
intended for special 
operative- investigation 
activity, means of 
information protection, other 
techniques of double purpose Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan  Sale of Special technical 
devices intended for special 
operative- investigation 
activity National Security Committee  
of the Republic of 
Kazakhstan Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is 
required.  WT/ACC/KAZ/66 
 Page 55 
 
 
  In accordance with Article 28 of the Law of  the Republic of Kazakhstan No. 522-I "On 
Pharmaceuticals" of 13 January 2004, import of pharmaceuticals without state registration to the 
territory of the Republic of Kazakhstan is not perm itted. Import of pharmaceuticals to the territory of 
the Republic of Kazakhstan can be performed by:  
− local producers with the activity licence fo r the production of pharmaceuticals;  
− juridical or natural persons with the activit y licence for the wholesale sale of medicines;  
− research and development organiza tions, laboratories for preparation and state registration of 
pharmaceuticals hereunder; and 
− foreign producers of pharmaceuticals, their duly authorized representative offices or  
representatives in form of juridical or natural persons for conducting clinical research  and/or 
tests as well as for participation at exhibitions of pharmaceutical products in the Republic of 
Kazakhstan.    
In accordance with Article 9 of the Law of the Republic of Kazakhstan No. 2200 "On Licensing" of 
17 April 1995 and the Resolution of the Government  No. 1624 "On Approval of Rules for Licensing 
of Activities Related to Production and Sale of Phar maceuticals" of 28 October 2000, the following 
activities related to pharmaceuticals require licensing:   
(i)  production of pharmaceuticals:  
− industrial production; and 
− production in pharmaceutical stores. 
(ii)  sale of pharmaceuticals:  
− wholesale; and 
− retail.  
The Committee on Pharmacy under the Ministry of Healthcare of the Republic of Kazakhstan is the 
body responsible for issuing activity licen ses for production of pharmaceuticals.  
Local executive bodies shall i ssue the activity licence for wholesale pharmaceuticals.  
With the purpose to prevent import of non-registered  pharmaceuticals to the territory of the Republic 
of Kazakhstan, the Instructions on Coordination of Import and Export of Pharmaceuticals, Medical 
Equipment, Products for Medical Purposes and Para pharmaceuticals was adopted by the Order of the 
Acting Minister of Healthcare of the Republic  of Kazakhstan No. 885 of 22 December 2004 .  
In accordance with the Instructi ons, the Pharmacy Committee under the Ministry of Healthcare of the 
Republic of Kazakhstan shall submit to the Cu stoms Control Committee under the Ministry of 
Finance a letter of approval for export and import of pharmaceuticals, Para pharmaceuticals, medical 
equipment and products for medical purposes.     
In order to obtain a letter of approval for expor t and import of pharmaceuticals an applicant shall 
submit the following documents to  the Pharmacy Committee:  
− application for issuance of a letter of approva l for export and import of pharmaceuticals;  
− a copy of the activity licence for production or wholesale of pharmaceuticals in a special form 
sheet signed and sealed by an applicant;    WT/ACC/KAZ/66 
Page 56  
 
  − a copy of the licence for activities related to  the circulation of narcotic substances, 
psychotropic substances and precursors, in ca se of import or export of pharmaceuticals, 
containing narcotic substances, psychot ropic substances and precursors;    
− a copy of the sales contract (agreement) or any other agreement of alienation between the 
participants of foreign trade transaction w ith specification, identification of a producing 
company and country of origin, medical equipment and products for medical purposes as well 
as the original contract for their identification;    
− a copy of a state registration certificate (for juridical persons); 
− an original letter of permit from the manufactur ing company or its representative office in the 
Republic of Kazakhstan for importation of pharmaceuticals from the territory of a third country with translation to State and Russian languages and registration certificate in case of 
absence of a direct contract with a producer or a company which holds the registration certificate; and  
− list of the submitted documents.  
In accordance with Article 12 of Law of the Republic of Kazakhstan No. 279-I "On Narcotic 
Substances, Psychotropic Substances, Precursors an d Measures against their Illegal Circulation and 
Abuse" of 10 July 1998, import and export of narcotic substan ces, psychotropic substances and 
precursors to/from the territory of the Republic of Kazakhstan shall be perform ed by juridical persons 
holding an activity licence.   
In accordance with Article 9 of the Law of the Republic of Kazakhstan No. 2200 "On Licensing" of 
17 April 1995, and the Resolution of the Govern ment of the Republic of Kazakhstan No. 1693 "On 
Approval of Rules for State Control on Circulation of Narcotic Substances, Psychotropic Substances 
and Precursors in the Republic of Kazakhstan" of 10 November 2000, all types of activities related to 
circulation of narcotic substa nces, psychotropic substances and precursors shall be subject to 
licensing.  
Licenses for the specified types of activ ities shall be issued by the Mini stry of Internal Affairs of the 
Republic of Kazakhstan.   
Import and export of narcotic substances, psycho tropic substances and precursors through crossing 
state and customs frontiers shall be performed  upon demonstration of an activity licence and 
certificate issued in accordance with the legi slation of the Republic of Kazakhstan.   
Upon exportation of narcotic substa nces, psychotropic substa nces and precursors, a notarized copy of 
an activity licence shall be enclosed to each parcel  of cargo and directed to the government of the 
importing country.   
Exportation and importation of narc otic substances, psychotropic substances and precursors from/to 
the territory of the Republic of Kazakhstan shall be performed via exchange of import and export 
certificates between importers and exporters of na rcotic substances, psyc hotropic substances and 
precursors with a sign on the export certificate st ating about arrival of a parcel of goods and 
completion of export and import operations.   
Question 44 
Paragraph 93:  We welcome the information about reducing the number of activities subject to 
licensing pursuant to the draft law.  However, we would urge Kazakhstan to continue to reduce 
the number of activities subject to licensing.  WT/ACC/KAZ/66 
 Page 57 
 
 
  Answer:  
According to Article 3 of the Law of the Republic  of Kazakhstan "On Licensing" of 17 April 1995, 
introduction of licensing requirements or their elimin ation shall be established by the present law for 
the purposes of national security, implementation of  state monopoly functions, enhancement of the 
rule of law and order, protection of  environm ent, property, life and health of citizens.  
As of 1 January 2005, 134 types and 728 sub- types of activities were subject to licensing. 
In accordance with the Law  of the Republic of  Kazakhstan No. 45-III "On Changes and Amendments 
into the Legislative Acts of the Republic of Kaza khstan on Licensing" of 15 April 2005, 25 types and 
410 sub-types of activities subject have been remove d from the list of activities subject to licensing.  
In December 2005, the draft Law of the Republic of Kazakhstan "On Licensing" (new revision) has 
been submitted to the Parliament. 
The draft Law will provide for exclusion from the list of activities subject to licensing of the 
following: 
(i)  types of activities:  - installation, testing, and technical maintenance of fire alarms and fire safety 
equipment; 
 - production of fire safety machinery, equipment and fire protection facilities; 
 - operation of cranes (mobile cranes);  - technical operation of communication networks and lines; and  - foreign labour force employment related services. 
(ii)  subtypes of activities: 
 - consulting services on guarding and legal protection against security violations; 
 - repair of civil pyrotechnic substances  and products containing civil pyrotechnic 
substances; 
 - collection of civil pyrotechnic substances  and products contai ning civil pyrotechnic 
substances; 
 - distance education services; 
 - duty free shops; and  - services related to customs free warehouse regime.  
Thus, according to the draft Law "On Licensing", 21 types and 78 sub-types of activities are planned 
to be removed from the list of activities subject to licensing.  
In addition, in order to avoid duplication in the st ate permissions system, in accordance with the draft 
Law "On Amendments and Addenda to  Legislative Acts of the Repub lic of Kazakhstan on Auditing ", 
which is currently under the review of the Parlia ment of the Republic of Kazakhstan, the following 
types of auditing services will be excluded from the list of activities subject to licensing: 
− auditing of banking activity; 
− auditing of (insurance) reinsurance organizations; 
− auditing of savings pension funds; and 
− auditing of organizations, d ealing with investment management of pension assets. WT/ACC/KAZ/66 
Page 58  
 
  The abovementioned types of auditing services therefore will be subject to licensing requirement only 
based on Article XI of the Law "On Licensing" of 17 April 1995.  
To simplify licence issuing procedures, the list of ac tivities subject to licensing in the draft law were 
divided into three main groups:   
− activities linked to security of high risk or danger (utilization of atomic energy, industrial 
types of activities); 
− those of special public importance (drugs tr afficking, weapons, healthcare, guaranteeing 
information security, etc.); and 
− private entrepreneurial activities (architectur al and construction, production and sale of 
alcohol products, evaluation activity, etc.). 
Question 45 
Paragraph 95:  We welcome information from Kaza khstan that it plans to bring its registration 
fees into conformity with Article VIII GATT prior to WTO accession.  Could you give a state of 
play of this process?  Have legislat ive proposals already been prepared? 
Answer: 
 
In order to bring registration fees for juridical pe rsons into full conformity with Article VIII of 
GATT 1994, the "Methodology for Calculation of Import/Export Licensing Fees and Fees for State 
Registration of Juridical Persons" has been appr oved by the Order No. 105 of the Ministry of 
Economy and Budget Planning of 27 August 2005.  According to this Methodology, calculation of 
fees for registration of juridical persons are based on the actual cost of services rendered for processing of applications and excludes travel expenses within the country.  The new Methodology includes "purchase of other goods", which is comprise d of the cost of stationery, stamps, registration 
journals, etc. 
On 30 December 2005, the Government of the Re public of Kazakhstan has adopted a Resolution 
No. 1324 "On Amendments to the Resolution of  the Government of the Republic of Kazakhstan 
No. 1660 "On Approval of Fee Rates for State Registration of Juridical Persons" of 19 December 2001". In accordance with the Resolu tion, fee rates for state registration and re-
registration of juridical persons, their branches a nd representative offices have been introduced in 
fixed amounts instead of  the amount of Monthly Calculation Indices (MCI) used for state registration 
services  and ad valorem  amount used for state re-registration ser vices.  The fixed fee rates are based 
on the actual costs of state registration and re-registration services.  
The text of the Government Resolution a nd the Order are available through document 
WT/ACC/KAZ/66/Add.1. 
The text of the Methodology is enclosed in Annex II. A. IMPORT REGULATIONS - Customs tariff Question 46 WT/ACC/SPEC/KAZ/9 paragraph 99 states that the current import duties related to Ethyl 
Spirit are set at 100 per cent.  However, the tariff has а minimum import rate of not less than  WT/ACC/KAZ/66 
 Page 59 
 
 
  € 2 per 1 litre.  This is equivalent to nearly 279 per cent.  Are there any other such duties that 
were not noted? 
Answer:  
In Kazakhstan, the majority of applied import du ties particularly for non-agricultural products range 
from 0 per cent to 15 per cent.   
Import tariffs at the rate between 20 per cent and 100 per cent applied mostly for fiscal purposes on 
products for Kazakhstan, such as: 
− Alcoholic beverages (approximately 100 per cent); 
− Carpets (30 per cent); and 
− Agricultural products, including white sugar,  meat products (30 per cent – 35 per cent). 
It should be noted that the majority of import duties represent ad valorem  rates. Specific import duty 
rates applied to 168 goods, including alcoholic be verages, fruits and vegetables, combined import 
duties applied with respect to 656 goods. The speci fic components of combined tariffs are equivalent 
to ad valorem  components. 
Question 47 
Regarding Question 53 of document WT/ACC/KA Z/50, in what nomenclature is Kazakhstan 
conducting its WTO tariff negotiations, e.g., HS  2002 like Kazakhstan's current applied rates? 
If these are different, how does Kazakhstan inte nd to proceed to reconcile the two schedules? 
Answer: 
Pursuant to the Government Resolution No . 567 "On Approval of the Agreement on Common 
Product Nomenclature for Foreign Economic Activity of the Eurasian Economic Community" of 
11 June 2003, since 1 January 2004 Kazakhstan ap plies the HS 2002. Kazakhstan also conducts its 
WTO goods market access negotiations based on the cu rrently used product nomenclature, i.e. using 
HS 2002.  
-  Other duties and charges 
Question 48 Paragraph 101:  We seek а commitment from Kazakhstan that it will not list any other charges 
in its goods schedule under Article II:1 (b) of the GA ТТ 1994, binding such charges at zero 
from the date of accession. 
Answer:
 
Kazakhstan does not apply any other duties and char ges on imports, except for the currently applied 
import customs duties approved by Government Resolution No. 1389 "On Rates of Customs Duties Levied on Imported Goods" of 14 November 1996, and fees charged for services rendered in 
accordance with the Government Resolution No. 669 "On Adoption of Rates of Customs Fees, 
Charges and Payments Levied by Customs Bodies" of 8 July 2003.  WT/ACC/KAZ/66 
Page 60  
 
  Question 49 
Concerning the response to Question 44: We urge Kazakhstan to eliminate the practice of 
doubling duties for imports of unknown origin. Are there any countries anywhere subject to 
double MFN rate of duty?  If no import of known origin is subject to such а penalty, i.e., the top 
rate of duty charged is MFN rate, there can be no  justification for applying double duties if the 
origin is unknown. 
Answer:
 
Further to concerns expressed by WTO member-stat es, the Government is planning to introduce the 
amendment to the Customs Code of the Republic of Kazakhstan, according to which the provision 
stating use of double MFN import duty rate towards goods of un-known origin will be eliminated.  
Kazakhstan does not apply double MFN rate to wards the products of any countries.  
- Tariff rate quotas, tariff exemptions 
Question 50 Paragraph 102 of WT/ACC/SPEC/KAZ/9 states that the intention of applying TRQs is to 
eliminate "peak rates" in tariff commitments. Cu rrently, the highest tariff in the meat and саnе 
sugar sectors is 35 per cent.  Does this mean Kazakhstan intends to bind these products at а 
lower rate to eliminate these peaks? 
Answer:
 
In accordance with the Government Resolution No . 1389 "On Rates of Customs Duties Levied on 
Imported Goods" of 14 November 1996, the currently applied import duty rate towards white sugar is 
30 per cent, but not less that € 0.12 per kg.  
Kazakhstan intends to regulate im ports of certain sensitive agricultural goods, such as poultry by 
using TRQs.  Introduction of TRQs  is called to satisfy essential in ternal demand for imported goods 
on the one hand and to balance the economic interests of local producers of poultry.     
Question 51 
Questions 46-48:  Please identify the government resolution that defines the customs duties rates 
within quota and outside quota. 
Answer:  
Currently, the draft Government Resolution has been  elaborated for establishing tariff rate quotas on 
imported poultry.  The import tariff rates outside and inside the tari ff rate quota will be established as 
a result of the on-going internal (within the govern ment agencies) review and approval process.    
Question 52 
Which Ministry will administer the TRQs? What is the process by which уоu apply for the 
licence?  WT/ACC/KAZ/66 
 Page 61 
 
 
  Answer:  
The Government Resolution No. 1389 "On Rates of Customs Duties Levied on Imported Goods" of 
14 November 1996 stipulates that the Ministry of Indu stry and Trade is responsible for issuing import 
licenses for the purposes of administering the tariff rate quotas.  
The licenses will be issued in acco rdance with the general procedure and "first come, first served" 
basis. 
Question 53 
Would Kazakhstan deny а trans-shipment of food and beverages if these products were 
prohibited from temporary importation? Are sa mples or products from trade shows exempt 
from payment of customs duties and taxes or are these items prohibited from this exemption as 
well? 
Answer:  
Pursuant to Article 188 of the Customs Code of th e Republic of Kazakhstan, temporary importation of 
goods and means of transport means the customs regime under which fore ign goods and means of 
transport are used in the customs territory of the Republic of Kazakhstan with full or partial 
exemption from import customs duties and taxes, and with their subsequent exportation from the 
customs territory of the Republic of Kazakhstan. Non-tariff regulatory measures shall not apply to 
goods and transport under temporary importation cu stoms regime, except for the requirements 
concerning safety of goods.   
Article 189 of the Customs Code stipulates th at goods shall be placed under the temporary 
importation customs regime provided that th e following requirements are complied with: 
− identification of goods and means of transport is ensured; 
− submission of a commitment to export goods an d means of transport outside the Republic of 
Kazakhstan within the established time limit in co mpliance with the format established by the  
authorized body on customs issues; and 
− payment of customs duties and taxes in comp liance with Article 191 of the Customs Code. 
The following good shall not be admitted for placement under the temporary importation customs 
regime:  
− spare parts and components (in case where they  are not intended for temporary imported 
means of transport), expended materials and sa mples, raw materials, semi-finished products, 
except for temporary importation of a sample fo r advertising and/or demonstration purposes;  
− food stuffs, beverages including alcohol, tobacco  goods, except for temporary importation of 
a sample for advertising a nd/or demonstration purposes; 
− industrial wastes; and 
− goods prohibited for importation to the customs territory of the Republic of Kazakhstan. 
In accordance with Article 190 of the Customs Code, the temporarily imported goods shall remain in 
their original state, except for changes due to na tural wear or loss under normal conditions of haulage 
(transportation), storage and use (operation).  Oper ations required to ensure their safety shall be 
allowed, including minor repairs, technical main tenance and other operati ons required to preserve 
goods in the proper state, provided conditions are cr eated to ensure identification of goods by the 
customs authority upon re-export. WT/ACC/KAZ/66 
Page 62  
 
  Article 191 of the Customs Code stipulates that the temporary imported goods fully exempted from 
customs duties include:  
− A list of goods temporarily imported with full exemption from customs duties and taxes shall 
be formulated by the Government of the Republic of Kazakhstan (i.e. the list of goods 
approved by the Government Resolution No. 668 of 8 July 2003); and 
− Objects being leased, which are included in the list approved by the Government of the 
Republic of Kazakhstan (i.e. the Government Resolution No. 1092 of 21 August 2001), shall 
be fully exempted from customs duties and ta xes, provided that the requirements of the 
legislation of the Republic of Kazakhsta n on financial leasing are complied with. 
Other goods not included in the lists sp ecified by Paragraphs 1 and 2 of this Article, shall be subject to 
partial exemption from customs duties and taxes. Goods, which are partially exempted from customs 
duties and taxes, shall be subject to fees for each full or partial calendar month of their stay on the 
customs territory of the Republic of Kazakhstan, e quivalent to 3 per cent of the amount payable if 
goods were released into free circulation. 
The time limit for temporary import of goods shall be  established by the decl arant in accordance with 
the purpose and circumstances of such import, and shall not exceed three years from the date that 
goods were imported onto the customs territory of  the Republic of Kazakhstan, except in cases 
stipulated by the Customs Code. 
The text of Chapter 23 of the Customs Code is available through document WT/ACC/KAZ/66/Add.1.  
In conclusion, it should be noted that transit and tr ans-shipment of food and beverages, which are not 
allowed to be placed under the temporary impo rtation customs regime, is not prohibited in 
Kazakhstan except for cases when their importation is not allowed on a temporary basis due to 
sanitarian and phytosanitarian reasons.  
The Government Resolution No. 668 "List of Goods  Temporarily Imported with Full Exemption 
from Customs Duties and Taxes and Temporarily Exported with Full Exemption from Customs Duties" of 8 July 2003 includes goods imported to  and exported from Kazakhstan for demonstration 
at exhibitions,  trade fares, competitions, symposiu ms, seminars, international gatherings and other 
events of similar nature (excep t for demonstrations conducted at production/commercial venues  with 
the purpose of further sale of imported/exporte d goods), as well as the auxiliary equipment and 
materials used for demonstration of goods at inte rnational meetings, conferences and congresses.     
Hence, samples or products from trade shows are ex empt from payment of customs duties and taxes. 
Question 54 
Paragraph 103: Please distinguish between normal  customs practice, e.g., tariff exemptions for 
diplomatic imports, and those granted as а benefit for investment, export performance, or use of 
local content in manufacturing.  Please list the authority to provide each of these types of 
exemptions. 
Answer:
 
In accordance with Article 330 of the Customs Code of the Republic of K azakhstan, goods imported 
and exported for official use by foreign diploma tic representative offices and by representative offices 
equated with them, and also for personal use by th e diplomatic, administrative and technical staff of 
these representative offices, including family member s living with them who are not citizens of the  WT/ACC/KAZ/66 
 Page 63 
 
 
  Republic of Kazakhstan, are exempted from customs duties in compliance with international treaties 
signed by the Republic of Kazakhstan. 
The procedure of customs administration of the abovementioned goods is provided in Chapter 36 
Customs Code of the Republic of Kazakhstan "Con veyance of Goods by Individual Categories of 
Foreign Citizens". The text of Chapter 36 of th e Customs Code is available through document 
WT/ACC/KAZ/66/Add.1.  
In accordance with Article 330 of the Customs Code of the Republic of Kazakhstan, certain goods 
imported for implementation of investment projects as stipulated in the investment legislation of the 
Republic of Kazakhstan are exempted from customs duties. 
Pursuant to the Law of the Republic of Kazakhsta n No. 373-II "On Investments" of 8 January 2003, 
exemption from import customs duties represent one of  the investment preferences. The preferences 
are given based on the contracts concluded between  the authorized body, Committee on Investments 
under the Ministry of Industry and Trade, and a juridical person of the Republic of Kazakhstan, 
implementing an investment project. 
Article 17 of the Law "On Investments" stipulates that customs duties exemptions are granted to 
equipment and components thereof imported for implementation of investment projects. Exemptions 
from customs duties are granted for the period not ex ceeding five years from the date of registration 
of the contract. 
Pursuant to the Rules on Submission of Document s for Exemptions from Customs Duties and Fees 
approved by the Government Resolution No. 675 of  9 June 2003, the Investments Committee notifies 
the authorized body, the Customs Control Committ ee under the Ministry of Finance of the Republic 
of Kazakhstan about its decision of granting investme nt preferences.  The notification document shall 
contain the following information: the name of inv estor, date and number of the contract, the list of 
equipment and components thereof as well as the period of validity of the investment preference.    
The Customs Control Committee forwards the rele vant information to the customs bodies where 
actual customs clearance and control on imported goods take place.  
The investor for the purposes of exemptions from customs duties shall submit notarially certified copy 
of the investment contract.  
Provision of investment preferences in the form of tax preferences or customs duty exemptions are not 
contingent upon export performance or use of local content in manufacturing.  
- Fees and charges for services rendered 
Question 55 
Paragraph 108:  We note information from Kazakhstan that it plans to bring its customs fees 
into conformity with Article VIII GATT.  Could you give a state of play of this process?  We stress that we would like to see the fees  to be in conformity upon accession. 
Answer: 
 
According to paragraph 2 of Article 293 of the Customs Code of the Republic of Kazakhstan, the 
costs incurred by the customs bodies during the cu stoms escort shall be used as the basis for 
determining  fees for customs escort of goods. WT/ACC/KAZ/66 
Page 64  
 
  In line with Article VIII of GATT 1994, the new Methodology for Calculations of Fees for Customs 
Escort of Goods has been developed by the Cust oms Committee under the Ministry of Finance of 
Kazakhstan. The Methodology is enclosed in Anne x IV. The new Methodology excludes  salaries of 
customs officials and includes the following expenses: 
− travel allowance of customs officials carrying out the customs escort; 
− cost of fuel used for transportation; and 
− depreciation costs of vehicles used for customs escort. 
Based on the new Methodology, on 24 March 2006, th e Government has adopted Resolution No. 202 
"On Amendments into the Resolution No. 669 'On A doption of Rates of Customs Fees, Charges and 
Payments Levied by Customs Bodies'" of 8 July 2003, which establishes the fees for customs escort 
services in fixed amount (Euro) based on the travel distance.   
The text of the Government Resolution is av ailable through document WT/ACC/KAZ/66/Add.1. 
Thus, fees for customs escort services are calculate d based on the actual cost of services rendered and 
brought into full conformity with Article VIII of GATT 1994. 
Question 56 
When will the new customs fees be implemented? Please explain how the MCI is established and calcul ated MCI. What is its relation to distance? 
If the MCI is established annually, does it accura tely reflect the cost of services rendered?  Is 
information on this publicly available? 
We seek а commitment that Kazakhstan will administer its fees applied on and in connection 
with importation and exportation in conformity with WTO provisions, e.g., Article VIII of the 
GATT. 
Answer:
 
According to paragraph 2 of Article 293 of the Customs Code of the Republic of Kazakhstan, the 
costs incurred by the customs bodies during the cu stoms escort shall be used as the basis for 
determining  fees for customs escort of goods. 
In line with Article VIII of GATT 1994, the new Methodology for Calculations of Fees for Customs 
Escort of Goods has been developed by the Customs Control Committee under the Ministry of 
Finance of Kazakhstan.  The Methodology is encl osed in Annex IV. The new Methodology excludes 
salaries of customs officials and includes the following expenses: 
− travel allowance of customs officials carrying out the customs escort; 
− cost of fuel used for transportation; 
− depreciation costs of vehicles used for customs escort. 
Based on the new Methodology, on 24 March 2006, the Government has adopted a Resolution 
No. 202 "On Amendments into the Resolution of the Republic of Kazakhstan No. 669 "On Adoption 
of Rates of Customs Fees, Charges and Payments Le vied by Customs Bodies " of 8 July  2003, which 
establishes the fees for customs esco rt services in fixed amount (Euro) based on the travel distance.  
The text of the Government Resolution is av ailable through document WT/ACC/KAZ/66/Add.1.  WT/ACC/KAZ/66 
 Page 65 
 
 
  Thus, fees for customs escort services are calculate d based on the actual cost of services rendered and 
brought into full conformity with Article VIII of GATT 1994. 
-  Application of internal taxes to imports 
 - VAT Question 57 
Questions 52-53 in document WT/ACC/KAZ/57:  When, precisely, will Kazakhstan apply the 
destination principle to all imports and all export s from all countries, and cease its practice of 
"offsetting" VAT taxes owed on certain imports from the Russian Federation? 
Answer:
 
On 15 September 2004, Kazakhstan and Russia signed the Protocol on Amendments to the Agreement 
on the Principles of Collection of Indirect Taxes in  Mutual Trade. According to the Protocol, the 
"country of destination" principle was introduced for collection of indirect taxes in importation/exportation of all goods irrespective of  the country of origin or destination.  
This Protocol was ratified by the Law of the Republ ic of Kazakhstan No. 16-III of 22 December 2004 
and entered into force as of 1 February 2005.  
Therefore, as of 1 February 2005, all imports are s ubject to a 15 per cent VAT rate, irrespective of the 
country of origin, including imports of oil, gas condensate and natural gas from the Russian Federation.  Pursuant to Article 222 of the Tax Code, all exported goods were  subject to zero rate 
VAT.  
Question 58 
Paragraph 113:  We require а more detailed examination of the exemption of agricultural sales 
from the VAT.  This is not the same thing as profit or income tax exemptions, as it is а tax on 
goods that is being reduced.  The exemption of domestic agricultural sales from VAT without 
providing "no less favourable" treatment on similar imported goods is а violation of Article III 
of the GATT.  We seek further information to clarify this issue. 
Answer:
 
The Tax Code sets the uniform VAT rate at 15 per cent to all taxable items, including turnover of 
locally produced and imported goods. The tax preferences for producers of agricultural products represent the reduction of the aggregate amount due to the state budget calculated on the basis of the group of taxes. 
The Tax Code of the Republic of Kazakhstan st ipulates that producers of primary agricultural 
products may qualify for two preferential taxati on options granted depending on the form of 
ownership: 
− Special tax regime for juridical persons-pr oducers of primary agricultural products; and 
− Special tax regime for farmers. WT/ACC/KAZ/66 
Page 66  
 
  1.  Special tax regime for juridical persons-producers of primary agricultural products 
 
Special tax regime for juridical persons-producer s of primary agricultural products provides for a 
special procedure on the basis of patents.  
Patent includes the corporate income tax, social ta x, land tax, property tax, vehicle tax, and value 
added tax (if the tax payer has been registered as a VAT payer).  
The amount of tax and payment due to the state budget is reduced by 80 per cent.  
As regards to VAT itself included into the patent, the VAT payable to budget shall be determined as 
the difference between VAT charged and VAT paid fo r inputs.  Consequently, the preferential regime 
extends only to the reduction of VAT amount payable to the state budget by agricultural producers. Whereas, the price of agricultural goods sold in creases for the amount calculated on the basis of 
15 per cent VAT rate, which is paid by consumers.  Hence, the sales of agricultural products are not 
exempted from V АТ payment, in accordance with Article III of the GATT. 
2.  Special tax regime for farmers-small business entities
 
Special tax regime for farmers-small business entities consists of the single land tax. The single land 
tax applies to farmers producing agricultural goods or processing agricultural products of their own 
production, except for production, processing and sale of products subject to excise tax.  
The single land tax replaces the following taxes: 
− individual income tax; 
− VAT; 
− land tax and/or payment for the use of land plots; 
− vehicle tax; and 
− property tax. 
The single land tax shall be calculated at 0.1 per ce nt to the specifically assessed value of the land 
plot.  
It should be noted that farmers: 
− do not have the status of juridical persons  and operate as individual or family-based 
entrepreneurs; 
− are considered as small business entities and have no sufficient resources and professional 
capacity to meet complicated tax accounting and reporting requirements; and 
− usually, have turnover from their own production less than 15,000 MCIs for any 12 month 
period and, therefore, do not ha ve to register as VAT payers. 
All goods sold on the territory of Kazakhstan, in cluding equally domestically produced goods and 
imported goods, are subject to 15 per cent VAT regard less of whether they are consumed immediately 
or purchased for further processing. The only exem ption is for enterprises whose turnover do not 
exceed the level of non-payable minimal turnover.  
The Tax Code stipulates that a taxpayer must regist er as a VAT payer when the volume of its turnover 
for any 12 month period exceeds the minimal threshol d defined by the legislation in the amount of 
15,000 MCIs.  This provision is based on the worl d-wide applied practice on non-imposed minimal 
turnover.   WT/ACC/KAZ/66 
 Page 67 
 
 
  The Tax Code does not provide VAT exemptions for consumers, including food processing 
enterprises purchasing primary agricultural produ cts from such juridical persons-agricultural 
producers and farmers.  Although, the VAT amount incl uded into the patent is reduced by 80 per cent, 
it does not reduce the actual cost of agricultural products. 
The taxation system of Kazakhstan provides for the payment of the entire VAT amount by the 
ultimate consumer, which is distributed among prod ucers and resellers proportionally to the amount 
of added value. 
The special tax regime is applicable only to produ cers of agricultural products and are not available 
for resellers. Also the tax regime for farmers co mplies with the widely accepted practice for small 
business entities and does not contradict Article III GATT.  
 - Excise Tax Question 59 Paragraphs 117 and 118:  Could Kazakhstan give  the state of play as regards the process of 
eliminating discriminatory excise taxes concerning domestic and imported products as regards 
alcohol, tobacco, automobiles, gasoline and diesel fuel?  
We would like to see the differential excise tax es to be eliminated upon accession and would like 
to see Kazakhstan to make the commitment indicated in paragraph 118.    
Answer: 
 
The Government of the Republic of Kazakhstan e nvisages unification of excise tax rates for domestic 
and imported goods in two stages.  
In the first stage, the Government Resolution No. 1035 "On Amendments to the Resolution of the 
Government of the Republic of Kazakhstan No. 137 of 28 January 2000" has been adopted on 
15 October 2005.  The Resolution established as of 1 January 2006 increased excise tax rates for domestically produced alcohol beve rages and tobacco products.   
In particular, excise taxes were increased in the following way: 
− from KZT 180 to KZT 230 per 1,000 pieces for tobacco products with filter; 
− from KZT 100 to KZT 130 per 1,000 pieces of other tobacco products; 
− from KZT 3 to KZT 40 per litre for spirit used for production of alcoholic beverages; and 
− from KZT 125 to KZT 250 per litre of 100 per cen t spirit in alcoholic beverages (except 
cognac, brandy, wine beverages, wines, champagne, sparkling wine and beer).  
The text of the Government Resolution is av ailable through document WT/ACC/KAZ/66/Add.1. 
The full unification of excise taxes is pla nned to be completed by 1 January 2007. 
In addition, the Government developed a draft Resolution, which establishes excise tax rates on 
domestically produced smocking, chewing, smelling and other tobacco, except for tobacco used for 
production of tobacco products, at the rate of KZT 825 per kg.  These domestically produced tobacco 
products currently are not subject to excise ta xes, while their imported analogues are imposed 
€ 5 per kg.  WT/ACC/KAZ/66 
Page 68  
 
  Question 60 
Question 56 of WT/ACC/KAZ/57:  Please confirm that the reform of Kazakhstan's excise tax 
regime will be completed prior to finalization of the terms of accession, i.e., prior to Council 
approval of the accession. The response to this question appears to indicate that Kazakhstan 
doesn't intend to even initiate action to revi se current discriminatory excise taxes until after 
"the moment of Kazakhstan's accession." 
This section needs а commitment that specifies precisely what changes will be made and when to 
bring Kazakhstan's tax regime into WTO conformity prior to accession. 
Answer:
 
The Government of the Republic of Kazakhstan e nvisages unification of excise tax rates for domestic 
and imported goods in two stages.  
In the first stage, the Government Resolution No. 1035 "On Amendments to the Resolution of the 
Government of the Republic of Kazakhstan No. 137 of 28 January 2000" has been adopted on 
15 October 2005.  The Resolution established as of 1 January 2006 increased excise tax rates for domestically produced alcohol beve rages and tobacco products.   
In particular, excise taxes were increased in the following way: 
− from KZT 180 to KZT 230 per 1,000 pieces for tobacco products with filter; 
− from KZT 100 to KZT 130 per 1,000 pieces of other tobacco products; 
− from KZT 3 to KZT 40 per litre for spirit used for production of alcoholic beverages; and 
− from KZT 125 to KZT 250 per litre of 100 per cen t spirit in alcoholic beverages (except 
cognac, brandy, wine beverages, wines, champagne, sparkling wine and beer).  
The text of the Government Resolution is av ailable through document WT/ACC/KAZ/66/Add.1. 
The full unification of excise taxes is pla nned to be completed by 1 January 2007. 
In addition, the Government developed a draft Resolution, which establishes excise tax rates on 
domestically produced smocking, chewing, smelling and other tobacco, except for tobacco used for 
production of tobacco products, at the rate of KZT 825 per kg.  These domestically produced tobacco 
products currently are not subject to excise ta xes, while their imported analogues are imposed 
€ 5 per kg.  
Question 61 
Paragraph 118:  We appreciate the commitment. It should b е expanded to include reference to 
the VАТ. 
Answer:
 
Kazakhstan confirms that the value added tax is  charged based on a non-discriminatory principle 
regardless of the country of origin.  WT/ACC/KAZ/66 
 Page 69 
 
 
  - Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 62 We appreciate Kazakhstan's commitment in Paragra ph 120 not to apply quotas.  This needs to 
be expanded, however, to include all forms of  non-tariff restriction, as provided for in 
Article ХI of the GATT. 
Answer:
 
[(Kazakhstan confirms that Kaza khstan will eliminate and not introduce, re-introduce or apply 
quantitative restrictions on imports or other non-ta riff measures, such as quotas, bans and other 
restrictions having equivalent effect that coul d [contradict provisions] of the WTO Agreements, 
including Article XI GATT 1994.)]  
-  Import Licensing 
Question 63 Paragraph 122:  We welcome information from Kazakhstan that it plans to bring its 
import/export licensing fees into full conformity with Article VIII GATT.  What is the timetable 
foreseen for this? 
Answer: 
 
In order to bring import/export licensing fees into fu ll conformity with Article VIII of GATT,  the 
"Methodology for Calculation of Import/Export Lice nsing Fees and Fees for State Registration of 
Juridical Persons" has been approved by the Orde r No. 105 of the Ministry of Economy and Budget 
Planning of 27 August 2005.  According to this  Methodology, calculation of import/export licensing 
fees are based on the actual cost of services re ndered for processing of ap plications and excludes 
travel expenses within the country. The new Me thodology includes "purchase of other goods", which 
is comprised of the cost of stationery, stamps, registration journals, etc. 
On 31 December 2005, the Government of the Re public of Kazakhstan has adopted a Resolution 
No. 1334 "On Amendments to the Resolution of the Government of the Republic of Kazakhstan 
No. 100 "On Approval of Licensing Fee Rates for the Right to Perform Certain Types of Activities" 
of 24 January 2002".  In accordance with the Re solution, import/export licensing fees have been 
introduced in fixed amounts instead of the amount of Monthly Calculation Indices (MCI).  The fixed fee rates are based on the actual costs of services related to issuing and re-issuing of licenses for 
export/import of goods (works, services), and issuing of duplicates.  
The text of the Government Resolution is av ailable through document WT/ACC/KAZ/66/Add.1. 
The text of the Methodology is enclosed in Annex II. 
Question 64 
This section still requires work. We note the improvement that Kazakhstan has ma de in the import licensing section from the 
Factual Summary to the Draft Wo rking Party Report. At the same time though, much work 
remains to be done. WT/ACC/KAZ/66 
Page 70  
 
  We remain very concerned about the breadth of coverage and the fact that all of the licenses аге 
issued on а non-automatic basis as defined by the Ag reement on Import Licensing Procedures. 
А lot of this is hidden away in Annex 9. 
We also request the Kazakhstan provide HS numbers in Annex 9 for all goods subject to 
licensing and provide more details on the licensi ng of IT products with encryption software. 
Please list all goods for which an activity licence is required to obtain an import licence. Answer:
 
In accordance with paragraph 5 of the Rules on Import-Export Licensing of Goods (Services and 
Works) in the Republic of Kazakhstan approve d by the Government Resolution No. 1037 of 
30 June 1997, in order to obtain an import licence from the authorized body, the applicant inter alia  
has to submit the following documents: 
− an activity licence issued by the authorized st ate body for certain types of activities; and 
− a permission from the Government of the Repub lic of Kazakhstan or the authorized state 
body for certain goods listed in Annex 2-5 to the Government Resolution No. 1037. 
Import licence for armament and military equipm ent, and special components for their production 
shall be issued by the Industry and Scientif ic and Technical Development Committee under the 
Ministry of Industry and Trade of the Republic of Kazakhstan based on the following: 
− permission of the Government of  the Republic of Kazakhstan; 
− activity licence issued by the Industry and Sc ientific and Technical Development Committee 
under the Ministry of Industry and Trade of the Republic of Kazakhstan for sale of weapons 
and ammunition to it, military equipment, spare parts, components and appliances to them, if they are not used in other industries; 
− expertise of authorized state bodies in the field of sanitary and epidemiological control; and 
− expertise of authorized state bodies in the field of environmental protection.  
Import licence for nuclear materials, technologies,  equipment and settlements, special non nuclear 
materials, sources of active radiation, including ra dioactive waste products shall be issued by the 
Industry and Scientific and Technical Developmen t Committee under the Ministry of Industry and 
Trade based on the following: 
− permission of the Government of the Republic of Kazakhstan; and 
− activity licence issued by the Atomic Energy  Committee under the Ministry of Energy and 
Mineral Resources of the Republic of Kazakhs tan for importation of nuclear materials, 
technology and equipment, special non nuclear materials; double purpose goods, technologies 
and equipment, source of ionizing radiation, radioactive substances. 
Information on the necessity to obtain an activity  licence as well as the an expertise of sanitary, 
ecological, mining and technical inspection bodies a nd State Energy Inspection (Gosenrgonadzor) is 
given in the table below.  The permission of th e Government of the Republic of Kazakhstan for 
importation of the goods listed in th e table below is not required.    
   WT/ACC/KAZ/66
 Page 71HS Number Goods Authorized Body issuing an 
Import Licence Type of  activity subject to 
licensing Authorized Body issuing an 
Activity Licence Expertise of relevant bodies 
9022  X-ray equipment, devices and 
equipments with use of radio-
active substances and 
isotopes. Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Sale of X-ray equipment, 
devices and equipment using 
of radioactive substances and 
isotopes. Atomic Energy Committee 
under the Ministry of Energy 
and Mineral Resources of the 
Republic of Kazakhstan Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control is 
required  
According to list confirmed by the Government of the 
Republic of Kazakhstan Poison  
                                     
                       Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Sale of poison according to 
list confirmed by the 
Government of the Republic 
of Kazakhstan Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control, 
environment protection and 
industrial safety is required. 
8471 (only  figure typed techniques) 
847330 (only for figure typed 
techniques) 
854390900 (only for figure 
typed techniques) Cryptographic means* 
(including cryptographic 
techniques, components for 
cryptographic techniques and 
programme packets for 
cryptographic code) Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Sale of cryptography means 
of the information's 
protection  National Security Committee 
of the Republic of 
Kazakhstan  Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is 
required. 
360100000 (except for the 
gunpowder) 360200000, 
360300, 3604 Gunpowder, explosives, 
means of exploding and  
pyrotechnics  Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan 1.  Trade of explosives and 
pyrotechnics and devices 
using them, (except for 
civil pyrotechnics and 
devices using them) 
2.  Trade of civil 
pyrotechnics and devices 
using them  Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan  
Ministry of Internal Affairs  
of the Republic of 
Kazakhstan  Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is 
required. 
According to list confirmed 
by the Government of the 
Republic of Kazakhstan Official and civil arms         
                                      Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and Trade of the Republic of 
Kazakhstan Trade of fire-arms, civil and 
official arms and their 
cartridges Ministry of Internal Affairs  
of the Republic of 
Kazakhstan  Not required 
According to list confirmed 
by the Government of the 
Republic of Kazakhstan Means of protection from 
fighting toxic substances, its 
parts and accessories.         
                       Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Not required - Expertis e of state bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is 
required.  
  WT/ACC/KAZ/66 
Page 72 HS Number Goods Authorized Body issuing an 
Import Licence Type of  activity subject to 
licensing Authorized Body issuing an 
Activity Licence Expertise of relevant bodies 
3808 (only preparations for 
plant protection) Chemical means of plants 
protection Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan Sale of pesticides  Ministry of Agriculture of the 
Republic of Kazakhstan 
 Expertise of st ate bodies in 
the field of sanitary and 
epidemiological welfare is 
required 
261800000-2620, 3915 Industrial wastes 
 Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan 1. Import in the Republic 
of Kazakhstan ozone-
destructing substances 
and products containing 
such substances. 
2.  Trans-border 
transportation of 
hazardous industrial 
wastes of the 1-3 class 
of danger.  Ministry of  Environmental 
Protection of the Republic of 
Kazakhstan 
 Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control is 
required 
2207 Ethyl alcohol               Tax Committee under the 
Ministry of Finance of the 
Republic of Kazakhstan  
 Production of alcoholic 
beverages  Tax Committee under the 
Ministry of Finance of the 
Republic of Kazakhstan  
 Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is required. 
2204, 2205, 2206 Alcoholic beverages 
(excluding beer) Tax Committee under the 
Ministry of Finance of the 
Republic of Kazakhstan  
 Production of alcoholic 
beverages or  
Storage and wholesale sale of 
alcoholic beverages (except 
for beer)  Tax Committee under the 
Ministry of Finance of the 
Republic of Kazakhstan  
 Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is 
required. 
121190800           Opium raw materials 
(medicinal  herbs) 
 Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of Kazakhstan Import and export of drugs, 
psychoactive substances, 
precursors Ministry of Internal Affairs  
of the Republic of 
Kazakhstan Not required  
   WT/ACC/KAZ/66
 Page 73HS Number Goods Authorized Body issuing an 
Import Licence Type of  activity subject to 
licensing Authorized Body issuing an 
Activity Licence Expertise of relevant bodies 
830170000, 
847130000, 847141900, 
847149900, 847150900, 
847330100, 851750, 
851780900, 851810, 
851840,  851850900, 
852032,  852033, 
852090900, 8521, 8525, 
8526, 8527 854389900, 900219000, 900580000, 
9013, 901910900, 9006, 
902219000, 902229000, 
(only special technical 
devices, devices of 
information defence and 
other techniques of double 
application) Special technical devices 
intended for special 
operative- investigation 
activity, means of 
information protection, other 
techniques of double purpose Industry and Scientific and 
Technical Development 
Committee under the 
Ministry of Industry and 
Trade of the Republic of 
Kazakhstan  Sale of Special technical 
devices intended for special 
operative- investigation 
activity National Security Committee  
of the Republic of 
Kazakhstan Expertise of st ate bodies in 
the field of sanitary and 
epidemiological control and 
environment protection is 
required. 
Note:  Please, see the Annex V for additional clar ifications on the item "Cryptographic means".  WT/ACC/KAZ/66 
Page 74  
 
  In accordance with Article 28 of the Law of  the Republic of Kazakhstan No. 522-I "On 
Pharmaceuticals" of 13 January 2004, import of pharmaceuticals without state registration to the 
territory of the Republic of Kazakhstan is not perm itted. Import of pharmaceuticals to the territory of 
the Republic of Kazakhstan can be performed by:  
− local producers with the activity licence fo r the production of pharmaceuticals;  
− juridical or natural persons with the activit y licence for the wholesale sale of medicines;  
− research and development organiza tions, laboratories for preparation and state registration of 
pharmaceuticals hereunder; and 
− foreign producers of pharmaceuticals, their duly authorized representative offices or  
representatives in form of juridical or natural persons for conducting clinical research and/or 
tests as well as for participation at exhibitions of pharmaceutical products in the Republic of 
Kazakhstan.    
In accordance with to Article 9 of the Law of th e Republic of Kazakhstan No. 2200 "On Licensing" of 
17 April 1995 and the Resolution of the Government  No. 1624 "On Approval of Rules for Licensing 
of Activities Related to Production and Sale of Phar maceuticals" of 28 October 2000, the following 
activities related to pharmaceuticals require licensing:   
(i)  production of pharmaceuticals:  
− industrial production; and 
− production in pharmaceutical stores. 
(ii)  sale of pharmaceuticals:  
− wholesale; and 
− retail.  
The Committee on Pharmacy under the Ministry of Healthcare of the Republic of Kazakhstan is the 
body responsible for issuing activity licen ses for production of pharmaceuticals.  
Local executive bodies shall i ssue the activity licence for wholesale pharmaceuticals.  
With the purpose to prevent import of non-registered  pharmaceuticals to the territory of the Republic 
of Kazakhstan, the Instructions on Coordination of Import and Export of Pharmaceuticals, Medical 
Equipment, Products for Medical Purposes and Para pharmaceuticals was adopted by the Order of the 
Acting Minister of Healthcare of the Republic  of Kazakhstan No. 885 of 22 December 2004.  
In accordance with the Instructi ons, the Pharmacy Committee under the Ministry of Healthcare of the 
Republic of Kazakhstan shall submit to the Cu stoms Control Committee under the Ministry of 
Finance a letter of approval for export and import of pharmaceuticals, Para pharmaceuticals, medical 
equipment and products for medical purposes.     
 In order to obtain a letter of approval for export  and import of pharmaceuticals an applicant shall 
submit the following documents to  the Pharmacy Committee:  
− application for issuance of a letter of approva l for export and import of pharmaceuticals;  
− a copy of the activity licence for production or wholesale of pharmaceuticals in a special form 
sheet signed and sealed by an applicant;  WT/ACC/KAZ/66 
 Page 75 
 
 
  − a copy of the licence for activities related to  the circulation of narcotic substances, 
psychotropic substances and precursors, in ca se of import or export of pharmaceuticals, 
containing narcotic substances, psychot ropic substances and precursors;    
− a copy of the sales contract (agreement) or any other agreement of alienation between the 
participants of foreign trade transaction w ith specification, identification of a producing 
company and country of origin, medical equipment and products for medical purposes as well 
as the original contract for their identification;    
− a copy of a state registration certificate (for juridical persons);  
− an original letter of permit from the manufactur ing company or its representative office in the 
Republic of Kazakhstan for importation of pharmaceuticals from the territory of a third country with translation to State and Russian languages and registration certificate in case of 
absence of a direct contract with a producer or a company which holds the registration certificate; and 
− list of the submitted documents.  
In accordance with Article 12 of Law of the Republic of Kazakhstan No. 279-I "On Narcotic 
Substances, Psychotropic Substances, Precursors an d Measures against their Illegal Circulation and 
Abuse" of 10 July 1998, import and export of narcotic substan ces, psychotropic substances and 
precursors to/from the territory of the Republic of Kazakhstan shall be perform ed by juridical persons 
holding an activity licence.   
In accordance with Article 9 of the Law of the Republic of Kazakhstan No. 2200 "On Licensing" of 
17 April 1995, and the Resolution of the Govern ment of the Republic of Kazakhstan No. 1693 "On 
Approval of Rules for State Control on Circulation of Narcotic Substances, Psychotropic Substances 
and Precursors in the Republic of Kazakhstan" of 10 November 2000, all types of activities related to 
circulation of narcotic substa nces, psychotropic substances and precursors shall be subject to 
licensing.  
Licenses for the specified types of activ ities shall be issued by the Mini stry of Internal Affairs of the 
Republic of Kazakhstan.   
Import and export of narcotic substances, psycho tropic substances and precursors through crossing 
state and customs frontiers shall be performed  upon demonstration of an activity licence and 
certificate issued in accordance with the legi slation of the Republic of Kazakhstan.   
Upon exportation of narcotic substa nces, psychotropic substa nces and precursors, a notarized copy of 
an activity licence shall be enclosed to each parcel  of cargo and directed to the government of the 
importing country.   
Exportation and importation of narc otic substances, psychotropic substances and precursors from/to 
the territory of the Republic of Kazakhstan shall be performed via exchange of import and export 
certificates between importers and exporters of na rcotic substances, psyc hotropic substances and 
precursors with a sign on the export certificate st ating about arrival of a parcel of goods and 
completion of export and import operations.   
Question 65 
Please outline requirements to obtain an activity  licence that differ from those to obtain an 
import licence. WT/ACC/KAZ/66 
Page 76  
 
  Answer:
 
In accordance with Article 15 of Law of the Repub lic of Kazakhstan No. 2200 "On Licensing" of 
17 April 1995, the licence for activities subject to licensing shall be given to an entity with a 
qualification level being correspondent with the rais ed requirements for this type of activity.  
The qualification requirements to types of activity subject to licensing are approved by the 
Government Resolution of the Republic of Kazakhstan.  
The list of types of activity subject to licensing on which the expert opinions of state bodies in the 
field of sanitary and epidemiological welfare, environment protection and state energy control are required, is approved by the Government Resolu tion of the Republic of Kazakhstan No. 1894 "On 
Implementation of the Law of the Republic of K azakhstan "On Licensing" of 29 December 1995".  
Conditions of production, ensuring saf ety of people, environment, life and health of people, as well as 
guarantee of quality of produced g oods, performed works and rendere d services shall be taken into 
account under licence issuing.    
Correspondence of an entity (applicant and/or li censee) with qualification requirements can be 
established based on the independent examination,  conducted by juridical or natural entities 
accredited in the established procedure.  
In accordance with Article 16 of the Law of the Re public of Kazakhstan "On Licensing", in order to 
obtain an  activity licence from the relevant Mini stry the applicant has to submit the following 
documents: 
− an application in the specified form; 
− documents proving compliance of an applicant to the qualification requirements, established 
for the corresponding type of licensed activity.  Such documents shall be given by the specialized state institution; 
− the copy of a certificate of state registration (for juridical persons); and 
− confirmation for the payment of the licence fee. 
Legislative acts on certain types of activities subj ect to licensing can establish additional and special 
requirements to the list of documents.  
For example, in order to a licence for the produ ction of alcoholic beverages the applicant has 
additionally to submit the following documents: 
− expertise of authorized state bodies in the field of sanitary and epidemiological control;   
− expertise of authorized state bodies in the field of ecological safety; 
− expertise of authorized state bodies in the field of fire protection; and 
− documents proving the ownership right of the applicant for permanent production premises 
and equipment. 
In accordance with the Rules on Import-Export Li censing of Goods (Services and Works) in the 
Republic of Kazakhstan approved by the Governme nt Resolution No. 1037 of 30 June 1997, in order 
to obtain an import licence from the relevant Mini stry the applicant has to submit the following 
documents: 
− an application in the specified form;  
− a copy of the purchase/sale agreement between traders, along with an original copy for 
verification;   WT/ACC/KAZ/66 
 Page 77 
 
 
  − a copy of a contract between exporter/manufactur er or importer/consumer if the application 
was filed by a middleman; 
− a certificate of state registration;  
− confirmation for the payment of the licence fee;  
− an activity licence issued by the authorized state body for certain types of activities;  
− a permission from the Government of the Repub lic of Kazakhstan or the authorized state 
body for certain goods listed in Annex 2-5 to  the Government Resolution No. 1037; and 
− a list of submitted documents. 
Question 66 
Question 63:  According to this answer, the licence holder needs to have а licence to produce 
alcoholic beverages. This remains inconsistent wi th the establishment of trading rights. Please 
explain how Kazakhstan plans on bringing this into compliance. 
We do not believe that Kazakhstan's characterization of its licensing requirements as 
"automatic" is accurate, in that the "permis sion of the Government of the Republic of 
Kazakhstan or the relevant authorized state bo dy on the separate types of goods" clearly 
requires review and discretion. 
The response to Question 62 is evasive. Please demonstrate how the provisions of the Import 
Licensing Agreement, e.g., in terms of due pro cess, transparency, timelines, etc., are contained 
in Government Resolution No. 1037 "On licensing  export and import of goods and services in 
the Republic of Kazakhstan" of 30 June 1997 or some other provision of law. 
Answer:  
In accordance with Article 10 of the Law of the Republic of Kazakhstan No. 429-1 "On State 
Regulating of Production and Turnover of Ethyl Spirit  and Alcoholic Beverages" of 16 July 16 1999: 
− Licence for importation of ethyl alcohol could be obtained provided that there is an activity 
licence for production of alcoholic beverages, where ethyl alcohol is used as a component; 
− Licence for importation of wine material could be  obtained provided that there is an activity 
licence for production of alcoholic beverages, wh ere wine material is used as a component; 
and  
− Licence for importation of alcoho lic beverages could be obtaine d provided that there is an 
activity licence activity either for production of alcoholic beverages or for storage and 
wholesale of alcoholic beverages (excluding beer). 
Taking into account that ethyl spirit used by co mpanies of Kazakhstan for pharmaceutical, medical 
and technical purposes is supplied by domestic producers, ethyl spirit is imported solely for 
production of alcoholic beverages.   
Elimination of a requirement for activity licence fo r production of alcoholic beverages in order to 
import ethyl spirit and wine material could result in  disappearance of importe d products in the illegal 
so-called "grey" market.  In it's turn, this ma y cause negative consequences for the health of 
population and non-payment of taxes imposed on alc oholic beverages produced using imported ethyl 
spirit and wine materials.  Hence, the Government  of Kazakhstan intends to maintain the currently 
applied regulation for importation of ethyl spirit and wine materials.   
As for importation of alcoholic beverages, the G overnment of Kazakhstan is planning to introduce 
amendments into the Law "On State Regulating of Production and Turnover of Ethyl Spirit and WT/ACC/KAZ/66 
Page 78  
 
  Alcoholic Beverages", according to which in orde r to obtain a licence for importation of alcoholic 
beverages:  
− residents shall have an activity licence for either for production or for storage and wholesale 
of alcoholic beverages (excluding beer); and 
− non-residents shall have a contract with a ju ridical person of the Republic of Kazakhstan, 
which holds an activity licence for either for production or for storage and wholesale of 
alcoholic beverages (excluding beer). 
In accordance with the Governme nt Resolution No. 1031 " On Import Licensing of Ethyl Spirit and 
Alcoholic Beverages in the Republic of Kazakhstan"  of 27 June 1997, an activity licence is not 
required to obtain a licence for importation of beer.   
Question 67 
Рага graph 122:  Kazakhstan states that import licenses are issued within ten days for small 
businesses and 30 days f ог other legal entities. Article 2 of the WTO Agreement on Import 
Licensing Procedures requires that automatic licen ses be issued on the same working day where 
practicable and no longer than ten days. The fact that the issuance of licenses f ог legal entities 
саn take up to 30 days makes the Kazakh licensi ng system de facto non-automatic.  In 
рага graph 124, Kazakhstan states that its import licensing system is automatic in nature. 
Please explain how this саn be so in light of the extended time it takes to issue а licence. We 
would appreciate if Kazakhstan could provide а detailed work plan on how it plans to convert 
to an automatic licensing system. 
Answer:
 
The draft Law of the Republic of Kazakhstan "On Licen sing" has been submitted to the Parliament of 
the Republic of Kazakhstan.   
Draft Law is called to improve and simplify the application of licensing in Kazakhstan through 
introduction of "a single entry" principle and ensuring transparency of the licensing procedure. 
In order to comply with the WTO Agreement on Import Licensing Procedures, the draft Law 
introduced the concept of "automatic licensing" as a measure aimed at monitoring the export-import trade flow through issuing automatic licenses.  
The Article 48 "On Automatic Licensing of Importati on of Certain Goods" of the draft Law stipulates 
the following: 
− Automatic licensing is defined as import licensing where approval of application is granted in 
all cases; 
− At that, any person, company or institution meeting the requirements to carry out import 
operations has the right to apply and obtain an import licence; 
− Automatic licensing procedures shall not be admini stered in such a way as to have restricting 
effects on imports of goods subject to automatic licensing; 
− Any person, firm or institution which fulf ils the legal requirements for engaging in 
importation of goods subject to automatic licensi ng is eligible to apply for and to obtain 
import licenses; 
− Applications for licenses may be submitted on any working day prior to the customs 
clearance of goods; and  WT/ACC/KAZ/66 
 Page 79 
 
 
  − Applications for licenses when submitted in appr opriate and complete form shall be approved 
immediately upon the receipt, if possible, and import licenses shall be issued within maximum of ten working days. 
The list of goods subject to automatic import licen sing will be determined by the Resolution of the 
Government of the Republic of  Kazakhstan upon the adoption of the draft Law "On Licensing". 
Question 68 Рага graph 123:  We again commend Kazakhstan for committing to bring its fees into 
conformity with WTO requirements.  Howeve r, we have serious concerns about the new 
methodology that Kazakhstan. These concerns are th e same as the ones we raised regarding the 
calculation of registration fees. 
Please provide further explanation how the licen sing fee is based on the cost of services 
rendered and the basis for includi ng costs such as the "purchase of other goods" and "national 
business trips." 
Answer:
 
In order to bring registration fees for juridical pe rsons into full conformity with Article VIII of 
GATT 1994, the "Methodology for Calculation of Import/Export Licensing Fees and Fees for State 
Registration of Juridical Persons" has been appr oved by the Order No. 105 of the Ministry of 
Economy and Budget Planning of 27 August 2005.   
According to the new Methodology, calculation of fe es for registration of juridical persons are based 
on the actual cost of services rendered for processing of applications and excludes travel expenses 
within the country. The new Methodology includes " purchase of other goods", which is comprised of 
the cost of stationery, stamps, registration journals, etc. 
On 31 December 2005, the Government of the Re public of Kazakhstan has adopted a Resolution 
No. 1334 "On Amendments to the Resolution of the Government of the Republic of Kazakhstan 
No. 100 'On Approval of Licensing Fee Rates for the Ri ght to Perform Certain Types of Activities' of 
24 January 2002". According to the Resolution, li censing fee rates for exportation and importation of 
goods (works, services), issuing a duplicate of licen ses and re-registration of licenses for exportation 
and importation of goods (works, services) have been introduced in  fixed terms and based on the 
actual costs of services rendered by the authorized body. 
The text of the Government Resolution is av ailable through document WT/ACC/KAZ/66/Add.1. 
The text of the Methodology is enclosed in Annex II. 
- Customs valuation 
Question 69 
Paragraphs 127-137:  Could Kazakhstan submit a copy of the draft law "On Changes and 
Amendments and Additions to the Customs Code of the Republic of Kazakhstan" as soon as available. WT/ACC/KAZ/66 
Page 80  
 
  Answer: 
 
The text of Law No. 62-III "On Amendments and A ddenda to the Customs Code of the Republic of 
Kazakhstan" of 20 June 2005 is availabl e through document WT/ACC/KAZ/66/Add.1. 
Question 70 
We note the general improvement in Kazakhsta n's implementation of legislation concerning 
customs valuation. 
Wе have а few additional questions to provide, in writing. 
Wе seek response to the following un answered questions from November: 
Please cite and describe the right of appeal , transparency, and surety bond provisions in 
Kazakhstan's laws that implement these aspects of the WTO Customs Valuation Agreement.  In 
particular, please describe provision for publication of administrative rulings of general 
application by the Customs Services in а manner that importers may become acquainted with 
them. 
Answer:  
1.  On the right of appeal  
According to Article 493 of the Customs Code of the Republic of Kazakhstan, any person as well as 
his/her representatives shall have a right to appeal either to customs authorities, including the higher 
customs authority or the authorized body on customs issues, and/or the court, the decision, action (or 
failure to act) of the customs authority, if such decision and/or action (or failure to act) violates the 
rights and interests of the person, impedes exercisi ng the rights or illegally imposes any obligation.  
Submission of the complaint to the court sha ll withhold execution of the decision made on the 
complaint.  
Complaint against the decision, action (or failure to  act) of the customs officer shall be submitted to 
the relevant customs body or to the higher customs authority.  Complaint against the decision, action 
(or failure to act) of the customs authority shall be  submitted to the higher customs authority or to the 
authorized body on customs issues.  
Complaint against the decision, action (or failure to  act) of the customs authority and customs officer 
can be submitted within the term of one year:  
− from the day when a person revealed infringement of his rights in customs sphere, creation of 
impediments for exercising of such rights or im position of any obligation not stipulated by the 
customs legislation of the Republic of Kazakhstan; and 
− from the expiry date of the established period for decision making by the customs authority or 
customs officer as stipulated in the customs le gislation of the Republic of Kazakhstan.  
Complaint against notification of the customs aut hority on enforcement of debts and fines shall be 
submitted within the term of 10 days. If due to va lid reasons the person failed to submit the complaint 
within the established term, upon hi s/her written request, the deadline could be extended judicially.     WT/ACC/KAZ/66 
 Page 81 
 
 
  The complaint shall be submitted in written form . Submission of a complaint shall not withhold 
execution of the appealed decisions, action (or failure  to act) of the customs authority and/or customs 
officer, except for the following cases:  
− when the higher customs authority or the au thorized body on customs issues, examining 
complaint, has sufficient grounds to believe, that  the appealed decision, action (or failure to 
act) of the customs body and/or customs officer do not comply with the customs legislation of 
the Republic of Kazakhstan; and  
− appeal of notification on enforcement of debts and fines.  
Complaint against the decision, action (or failure to act) of the customs authority shall be examined by 
higher customs authority or authorized body on customs issues.  Complaint against the decision, action (or failure to act) of the customs officer sha ll be examined by the relevant customs authority or 
by the higher customs authority.  Complaint against the decision, action (or failure to act) of the head 
of customs authority shall be examined by the hi gher customs authority or authorized body on 
customs issues. On behalf of the customs authority , the decision on the complaint shall be made by 
the head of the given customs authority or his/her deputy.   
Complaint shall be examined and the decision shall be taken within the term not exceeding 15 days 
from the date of registration of a complaint, excl uding complaints, requiring further study and/or 
verification, which shall be examined within the term  of one month from the date of its registration.   
In accordance with Article 503 of the Customs Code, decision, action (or failure to act) of the customs 
body or customs officer can be examined using si mplified procedure in cases when the value of the 
goods and vehicles in question do not exceed one hundred monthly calculation indices (MCI). Simplified procedure represents submission of a written complain to the head of the customs 
authority. Complaint subject to simplified procedur e shall be examined immediately and the decision 
shall be taken within the one day. The examina tion of the complaint and the decision made using 
simplified procedure shall not prevent submission of co mplaint in the order and terms stipulated in the 
Customs Code.   
2.  On transparency
  
Pursuant to Article 30 of the Customs Code, publi cation of regulatory legal documents in the customs 
sphere shall be made through official publication by  the authorised body in periodicals in the order 
established by the Law of the Republic of Kazakhstan "On Regulatory Legal Acts". 
Public informing in the customs sphere sha ll also be made using verbal guidelines and 
announcements, information desks, leaflets and othe r printed documents as well as via video, audio 
and other technical means in the following places:   
− customs points at the border of the republic of Kazakhstan; 
− airports, railway and automobile stations, maritime ports; 
− on the boards of motor transports, air a nd maritime vessels conducting international 
shipments; and 
− customs control zones determined by the Cust oms Code and other places determined by the 
customs authorities. 
 Customs authorities shall provide free access for  pa rticipants of foreign tr ade operations and other 
foreign economic activities to regul atory legal documents, administrative decisions on customs related 
issues, including orders of the customs aut horities, except for confidential information. WT/ACC/KAZ/66 
Page 82  
 
  The information shall be published in the offici al web-site of the Customs Control Committee under 
the Ministry of Finance of the Republic of Kaza khstan www.customs.kz, and also in magazines and 
newspapers (such as: "Official Gazette",  "Zan", "Keden", "Customs Bulletin"). 
Furthermore, in accordance with Article 32 of th e Customs Code, customs officials are legally 
accountable for provision of accurate and relevant info rmation. They shall be penalized in the order 
established by Article 84 of the Customs Code  for provision of incomplete and  misleading 
information or failure to provide in formation on customs related issues.  
In accordance with Article 18 of the Customs Co de of the Republic of Kazakhstan, the customs 
authorized body is entitled to involve particip ants of foreign trade operations and other foreign 
economic activities, public associations and all other interested parties into the process of 
development of legal acts regulating the customs s phere.  For example, large number of participants 
of foreign economic activities, including business- associations, commerce and industry chambers and 
other business communities of Kazakhstan actively par ticipated in development of the Customs Code 
of the Republic of Kazakhstan.  
The draft Law of the Republic of Kazakhstan "On Am endments and Addenda to the Customs Code of 
the Republic of Kazakhstan" was published on the web-site of the Customs Control Committee prior 
to its enactment.    
(Please also see Answer to Question 134).  3.  On Surety bond (warranty) provisions
  
In accordance with Article 321 of the Customs Code of Kazakhstan "On Conditional Release of 
Goods  with Use of Information on Prices Available to Customs Authorities", when it is impossible to 
use the method for determining customs value based  on the transaction value of imported goods, due 
to absence of documents confirming the customs value, and when it is necessary to clarify the 
customs value declared by the decl arant, the customs authority shall be entitled to conditionally 
release the goods, provided that the customs duties and taxes are secured in compliance with the 
customs valuation of goods performed by the cu stoms authority, based on information on prices 
which is available to the customs authority.  
The information on prices, which is available to the customs authorities, shall be generated by the 
authorized body on customs issues w ith use of statistical data that is contained in the customs cargo 
declaration, which was formulated on the basis of reliable, quantifiable and documentarily confirmed 
information. 
The period of validity for the deposited amount of customs duties and taxes shall be sixty calendar 
days starting on the day that the goods are rele ased, except when payment documents must be 
submitted as proof and, under the transaction terms,  the time limit for payment exceeds the specified 
time period.  
After the declarant submits documents verifying the declared customs value, the amounts securing 
payment of customs duties and taxe s shall be refunded (or offset), in compliance with Chapter 43 of 
the Customs Code, by filling out a form for adjustment of the customs value. 
Failure to provide the required documents conf irming the declared customs value before the 
expiration of the established time limit shall result in  transfer of the amount of customs payments and 
taxes, calculated on the basis of the conditional va lue of the goods, to the national budget, through 
completion by a customs official of the form for adjustment of the customs value, which shall be 
considered as a final decision with resp ect to the customs value of the goods.   WT/ACC/KAZ/66 
 Page 83 
 
 
  The guarantee of payment of customs payments an d taxes shall apply upon conditional release of 
goods subject to customs payments and taxes, with use of information on prices available to customs 
in compliance with Article 321 of the Code. 
A guarantee of payment of customs payments a nd taxes may be provided in the form of:  
− security; 
− bank guarantees; 
− deposit of the payable sum with the customs authorities; or 
− insurance agreements. 
A person shall be entitled to choose any type of guarantee of payment of customs payments and taxes. 
The procedures for the employment of guarantees of  payment of customs payments and taxes by the 
customs authorities shall be determined by  the authorized body on customs issues. 
The amount of the guarantee of payment of customs payments and taxes shall not be less than the 
amount of customs payments and taxes payable:  
(i)  when declaring the customs regime for rel ease of goods into free circulation with regard to 
the following goods and means of transport: 
− conveyed under the domestic customs transit procedure; 
− admitted into temporary storage at the consignee's warehouse and on means of 
transport; 
− placed under the re-export customs regime; 
− imported for conveyance through the customs territory of the Republic of Kazakhstan 
in compliance with the transit customs regime; 
− with regard to which conditional release w ith use of information on prices is applied 
when determining the customs value; 
− with regard to which the time limit for payment of customs duties is changed; and 
− with regard to which the time limit for filing the customs declaration is extended. 
(ii)  when declaring the export customs re gime  with regard to the following goods: 
− placed under the procedure for processing outside of customs territory; and 
− exported for conveyance through the customs territory of a foreign state in 
compliance with the transit customs regime. 
Any goods and property, which are free from the proper ty rights of third parties, may serve as security 
to guarantee the payment of customs payments and taxes, except for: 
− property excluded from civil circulation; 
− goods prohibited from being imported to the Re public of Kazakhstan or exported from the 
Republic of Kazakhstan; 
− electricity, heat and other types of energy; 
− perishable goods; 
− property rights; 
− property located outside the Republic of Kazakhstan; and 
− property, the sale of which is limited. 
The market value of the object of security to guarantee payment of customs payments and taxes 
cannot be less than the amount of the commitment for customs payments and taxes, the payment of WT/ACC/KAZ/66 
Page 84  
 
  which is ensured by the object of security, includi ng sales expenses.  Unless otherwise decided by the 
customs authority, pledged goods remain with the depositor.  The depositor shall not be entitled to 
dispose of the objects of security until the payer fulfils the commitments secured by the pledge. 
Security procedures shall be performed in complia nce with civil legislation of the Republic of 
Kazakhstan.  A claim against the object of a guara ntee shall be performed in compliance with the 
legislation of the Republic of Kazakhstan.  
As a guarantee of payment of customs payments and taxes, the customs authorities shall accept bank 
guarantees issued in compliance with the laws of the Republic of Kazakhstan taking into account the 
requirements set forth by normative legal acts of th e National Bank of the Republic of Kazakhstan.  
Deposits to deposit accounts of the customs authority as a guarantee of payment of customs payments 
and taxes (hereinafter - deposits) shall be made in  the national currency of the Republic of Kazakhstan 
or in foreign currency.  When the customs aut hority does not have a foreign currency account, the 
deposit shall be made in the national currency of the Republic of Kazakhstan. In the event of failure to 
fulfil the commitments backed by the deposit, th e payable amounts of customs payments and taxes 
shall be transferred to the national budget fro m the deposit upon expiration of 15 days after 
notification on non-fulfilment.  
As a guarantee of payment of customs payments  and taxes, the customs authorities shall accept 
insurance agreements signed in compliance with th e Civil Code of the Republic of Kazakhstan.   
- Refunding a Guarantee of Payment of Customs Payments and Taxes 
 
A deposit shall be refunded, provided that the comm itments required by the deposit are fulfilled.  The 
customs authority upon the written request of the pa yer shall actually refund the deposit within a 
period of time not to exceed ten working days fr om the day when the request was received.   
A request for the refund of a deposit shall be subm itted to the customs authority after the commitment 
has been fulfilled, but not later than five years following the date of fulfilment. A deposit shall be 
refunded by the customs authority to the account of  which the deposit amount was paid or, in case of 
dissolution of the customs authority, by its legal assignee. The deposit shall be refunded   to the 
payer's bank account in the currency of payment. 
The deposit shall be refunded to a payer with deducti on of debts with regard to customs duties, taxes 
and penalties in compliance with the procedures set  forth in Article 351 of the Customs Code. The 
refund of a deposit shall not entail a refund of inte rest, the amounts shall not be indexed, and bank 
fees shall be recovered at the expense of deposit funds. Upon the payer's request, the deposit may be 
accounted for future customs payments and taxes or  for guarantee of payment of customs payments 
and taxes under another commitment to the customs authorities. 
Property security shall be refunded when a security is: 
− in  the disposal of the depositor from the date of fulfilment of the commitments; and 
− in  the disposal of the customs authority not late r than five days from the date of fulfilment of 
the commitments. 
Refund under the bank guarantee shall be  done not later than five days from the date of fulfilment of 
the commitment. Security on insuran ce shall cease not later than five working days from the date of 
fulfilment of the commitments. 
Pursuant to Article 392 of the Customs Code, in  cases when customs authorities make a decision on 
the necessity of testing samples and specimens in order to submit detailed technical documentation, or  WT/ACC/KAZ/66 
 Page 85 
 
 
  to conduct an expert examination for the purpose of verifying the accuracy of the data stated in the 
customs cargo declaration or in other documents  submitted to customs authorities, goods shall be 
released prior to receipt of the results of the e xpert examination, provided that the declarant has 
secured payment of customs payments or taxes th at can be charged additionally according to the 
results of the customs expert examination. 
Goods shall not be released only when customs au thorities discover signs indicating that non-tariff 
regulatory measures may be applied to goods, and th at the declarant has failed to submit evidence, 
proving compliance with these measures. 
Question 71 
Please describe in more detail the use of the "f allback" or "reserve" method of valuation, and 
the "Government recognized reference books" to  determine the value of imports for customs 
purposes. This would appear to be а method of applying administered valuations to imports, 
based on information gathered by the Customs Service. 
Approximately how often has the "reserve" me thod been used to value imports since 
implementation of the Customs Code? 
Answer:  
According to the customs statistics, the customs aut horities of Kazakhstan adhere to the key principles 
of the customs valuation procedure.  The cust oms authorities use the reserve method only in cases 
when it is impossible to apply the other five met hods of customs valuation, in particular, in cases 
when reliable accurate information supp orted with documents is unavailable. 
The statistical data for the year 2004 shows that th e distribution of customs valuation methods used by 
the customs authorities were as the following: the fi rst method –the transaction value method has been 
used for 90.6 per cent of imported goods, the followi ng four methods were used for 2.3 per cent of 
imported goods, while the last reserve method w as used for 7.1 per cent of imported goods.  
Currently, in accordance w ith the Government Resolution No. 79 4 "On Information Reference Books 
Used for Application of the Reserve Method for Cu stoms Valuation of Goods" of 8 August 2003, the 
following information reference books  were used in Kazakhstan:  
− Information Bulletin "Price Information" (Russian Federation); 
− Information Reference Book on Food Prices (U nion of Food Manufacturers of the Republic 
of Kazakhstan); 
− Information Reference Book on Prices for Elect rical Household Appliances Imported to the 
Republic of Kazakhstan (Juridical pe rsons Association "KATEKS"); and 
− Automobile Catalogue "Superschwake". 
Information reference books are applied in cases when  customs value determination via other methods 
is impossible. As a rule, information reference books used in Kazakhstan contain prices from specific 
producers and are applied to specific goods. 
Information reference books are used with the following purposes: 
− to prevent submission of unreliable inform ation on the prices of imported goods by 
participants of foreign trade activities; 
− to prevent opportunities for abuse by customs officials; and 
− to ensure transparency of the customs valuation procedure.  WT/ACC/KAZ/66 
Page 86  
 
  It should be also noted that the customs valuati on methods shall be selected by the declarer, and 
customs authority is responsible to  ensure the accuracy of the method applied in customs valuation. 
Further to paragraph 137 of the Draft Working Party Report, the Law No. 62-III "On Amendments 
and Addenda to the Customs Code of the Republic  of Kazakhstan" was adopted on 20 June 2005.   
Regarding the method for determining customs valu e based on the transaction value of similar goods, 
the amendments made in Article 311 of the Customs C ode stipulated that:  (i) insignificant differences 
in appearance shall not serve as the basis for refu sal to recognize goods as similar; (ii) the cost of 
similar goods imported in different quantity and at a different commercial level may be used, and their 
value had to be adjusted taking into consider ation these differences when there were no cases of 
import of goods in the same quantity and at the sa me commercial level; (iii) some adjustments had to 
be introduced on the basis of reliable information ve rified by documentation; and (iv) the lowest value 
had to be applied to determine the customs value of imported goods when more than one transaction 
value with similar goods was identified.   
Regarding the method for determining customs valu e based on deduction of costs, the  amendments 
made to Article 312 of the Customs Code stipulated that:  (i) the customs authority shall not require 
from a non-resident information determining the cust oms value; and (ii) the information supplied by 
the producer of the goods for the purposes of dete rmining customs value may be verified with the 
agreement of the producer provided that sufficient advance notice was given to the government of the 
country in question and the latter did not object to the investigation.  
In accordance with the amendments  made in Article 309 of the Customs Code of the Republic of 
Kazakhstan, the definition of persons associated in exportation and importa tion of goods has been 
brought into conformity with the provisions of Ar ticle 15(5) of the Customs Valuation Agreement of 
WTO. 
Further to paragraph 136 of the Draft Working Party Report, it should be noted that the Interpretative 
Notes to Article 1 and Article 15 of the Custom s Valuation Agreement will be included into a 
Commentary to the Customs Code of Kazakhstan, wh ich will be introduced by the Resolution of the 
Government. The relevant provision will be added to Article 307 of the Customs Code.  
- Rules of origin 
Question 72 Paragraph 139 of the draft report indicates th at Kazakhstan has adopted the Harmonized 
System (HS) nomenclature. Which version of th e HS nomenclature is currently applied?  Is it 
HS1996 or HS2002? 
Answer:
 
In accordance with the Government Resolution No. 567 "On Approval of the Agreement  on Common 
Product Nomenclature of Foreign Economic Activity of the Eurasian Economic Community" of 
11 June 2003, Kazakhstan appli es HS 2002 as of 1 January 2004. 
Question 73 
Paragraph 141 of the draft report indicates th at Kazakhstan does not deny customs clearance 
when a foreign exporter fails to provide a correctly drafted Certificate of Origin.  In such a case, 
what measure, or measures, should be taken?  Please could Kazakhstan provide information on 
the relevant laws or regulations?  WT/ACC/KAZ/66 
 Page 87 
 
 
  Answer:  
Subject to Article 38 of the Customs Code of the Re public of Kazakhstan, either Certificate of Origin 
or Declaration of Origin certifies the country of origin of an imported good. 
Article 41 of the Customs Code of the Republic of  Kazakhstan provides that importer of a good to the 
customs territory of the Republic of Kazakhstan sha ll produce the certificate of origin in the following 
cases when: 
− a country of origin of the good enjo ys tariff preferences under international 
agreements/treaties, to which the Re public of Kazakhstan is a party; 
− customs body of Kazakhstan has grounds to believe  that the good originates from countries, 
importation of goods from which shall be  regulated by non-tariff measures; and 
− it is required by international agreements/treatie s, to which the Republic of Kazakhstan is a 
party. 
In accordance with paragraph 1 of Article 42 of the Customs Code of the Republic of Kazakhstan, the 
customs authority shall deny customs clearance wh enever goods originate from a country, products of 
which are prohibited from importati on to Kazakhstan under the laws of  the Republic of  Kazakhstan or 
international agreements/treaties, to which the Repub lic of Kazakhstan is a party.  The customs body 
shall notify denial in writing.  
Failure to provide a correctly drafted certificate of or igin or failure to submit it at all shall not be the 
reason to deny customs clearance except for cases stipulated in paragraph 1 of Article 42 of the 
Customs Code of the Republic of Kazakhstan. 
The goods imported into the customs territory of K azakhstan without correctly filled in certificate of 
origin shall be subject for import duty based  on Most Favoured National Treatment rates. 
In case of preferential treatment based on FTAs or G SP, the treatment shall be applied to the goods 
imported into the customs territory of Kazakhstan wi thout correctly filed in certificate of origin only 
in cases when the importer provides the customs body with the confirmation of the country of origin of the goods in question within one year sin ce the day of filing the customs declaration. 
Question 74 
Paragraph 143:  Contrary to the appreciation of  the representative of Kazakhstan in point 143, 
we would urge Kazakhstan to implement before accession the right to seek an assessment of 
origin prior to importation contained in Articl e 2(h) and Annex II paragraph 3(d) of the WTO 
Agreement on the Rules of Origin. 
Answer: 
 
Subject to Article 47 of the Customs Code, upon re quest of a person (applicant), customs authorities, 
except for the customs points and checkpoints, make a preliminary decision on the classification 
under the foreign economic activity commodity nomenclature with regard to specific goods. 
Besides, customs authorities are entitled to make  preliminary decisions on the application of 
methodology for the determination of the origin of  goods and customs value in compliance with the 
provisions of the Customs Code.  
In accordance with Article 48 of the Customs Code, the application on preliminary decision making 
shall contain data on the good, including its descr iption, photos, pictures, drawings as well as WT/ACC/KAZ/66 
Page 88  
 
  commercial, technical and other papers, which are necessary for the preliminary decision making 
process. When possible, the app licant shall also submit taste samples and samples of goods, upon 
which the preliminary decisions shall be made.  Th e preliminary decision shall be issued within ten 
working days since the date of the registration of  the application, provided that no other additional 
information is required for undertaking the expertise.  
In case if the application on preliminary decision making is not accepted, the customs authority shall 
present the motivated refusal in wr iting within seven working days.  Refusal of the application shall 
not impede repeated application on part of the applicant for preliminary decision making provided 
that the grounds, which caused th e refusal, have been addressed.  
Preliminary decision or it's non-acceptance by the customs authorities within the set period of time 
may be appealed in accordance with the procedure es tablished by the Customs Code.  The preliminary 
decision of the customs authorities is valid during three years since the date of its adoption.   
Pursuant to Article 50 of the Customs Code, the auth orized body has a right to annul or to amend the 
preliminary decision made by the authorized bo dy itself or its territorial unit in cases when the 
preliminary decision was based on incomplete or unr eliable information submitted by the applicant. 
Annulations shall enter into force since the date when the new preliminary decision has been made.  
The preliminary decision shall be amended in the following cases:  
− adoption by the World Customs Organization of decisions mandatory for application in the 
Republic of Kazakhstan; 
− the preliminary decision made contradicts the in ternational treaties, to which the Republic of 
Kazakhstan is a party; 
− changes made to the national legislation of  the Republic of Kazakhstan on customs in 
connection with the preliminary decision making; and 
− revelation of infringements that have been made  in the course of the preliminary decision 
making.  
Preliminary decisions made by the customs au thorities, with the exception of confidential 
information, may be published and presented upon the written request of any person.   
Pursuant to the Article 52 of the Customs Code , the preliminary decision made by the customs 
authorities shall be mandatory for implementation by customs authorities.  Preliminary decision shall 
be submitted to the customs authorities along with the customs declaration.  
The preliminary decision procedures are established by the Order of the Customs Control Committee  
No. 210 of 15 June 2003.  
In accordance with Government Resolution No. 669 "O n Establishment of the Rates of Fees, Charges 
and Payments Levied by Customs Bodies" of 7 July  2003, the fee in the amount of € 50 is charged for 
preliminary decision making services. 
It should be noted that provisions  of article 47 of the Customs Code provides the right, but not obliges 
the customs authorities to make the preliminary decision on the country of origin of goods at the request of the participant of foreign trade activity before the trade actually takes place. Therefore, in 
order to fully comply with the provisions of Artic le 2(h) and paragraph 3( d) Annex II Agreement on 
Rules of Origin, the Government of Kazakhstan is planning to introduce amendments to the Customs 
Code.  It is envisaged to introduce a new pr ovision, which obliges customs authorities to make 
preliminary decision upon the request of the particip ant of foreign trade provided that all necessary  WT/ACC/KAZ/66 
 Page 89 
 
 
  information is duly submitted. The amendment will also clearly stipulate the preliminary decision 
procedures will be applicable to both pr eferential and non-preferential trade.   
Question 75 
It is clear from the responses in WT/ACC/KAZ/ 57 that Kazakhstan's legal provisions do not 
fully implement the Agreement on Rules of Origin. 
The current legislation merely perm its, and does not mandate, granting а preliminary 
determination of origin if requested by an  "exporter, importer, or any person with а justifiable 
cause" prior to importation. 
We insist that Kazakhstan address this and the other aspects of the Agreement we raised in 
November, e.g., the right of appeal, and that th ese provisions be implemented prior to accession. 
Answer:  
Subject to Article 47 of the Customs Code, upon re quest of a person (applicant), customs authorities, 
except for the customs points and checkpoints, make a preliminary decision on the classification 
under the foreign economic activity commodity nomenclature with regard to specific goods. 
Besides, customs authorities are entitled to make  preliminary decisions on the application of 
methodology for the determination of the origin of  goods and customs value in compliance with the 
provisions of the Customs Code.  
In accordance with Article 48 of the Customs Code, the application on preliminary decision making 
shall contain data on the good, including its descr iption, photos, pictures, drawings as well as 
commercial, technical and other papers, which are necessary for the preliminary decision making process.  When possible, the applicant shall al so submit taste samples and samples of goods, upon 
which the preliminary decisions shall be made.  Th e preliminary decision shall be issued within ten 
working days since the date of the registration of  the application, provided that no other additional 
information is required for undertaking the expertise.  
In case if the application on preliminary decision making is not accepted, the customs authority shall 
present the motivated refusal in wr iting within seven working days.  Refusal of the application shall 
not impede repeated application on part of the applicant for preliminary decision making provided 
that the grounds, which caused th e refusal, have been addressed.  
Preliminary decision or it's non-acceptance by the customs authorities within the set period of time 
may be appealed in accordance with the procedure es tablished by the Customs Code.  The preliminary 
decision of the customs authorities is valid during three years since the date of its adoption.   
Pursuant to Article 50 of the Customs Code, the auth orized body has a right to annul or to amend the 
preliminary decision made by the authorized bo dy itself or its territorial unit in cases when the 
preliminary decision was based on incomplete or unr eliable information submitted by the applicant. 
Annulations shall enter into force since the date when the new preliminary decision has been made.  
The preliminary decision shall be amended in the following cases:  
− adoption by the World Customs Organization of decisions mandatory for application in the 
Republic of Kazakhstan;  
− the preliminary decision made contradicts the in ternational treaties, to which the Republic of 
Kazakhstan is a party; WT/ACC/KAZ/66 
Page 90  
 
  − changes made to the national legislation of  the Republic of Kazakhstan on customs in 
connection with the preliminary decision making; and 
− revelation of infringements that have been made  in the course of the preliminary decision 
making.  
Preliminary decisions made by the customs au thorities, with the exception of confidential 
information, may be published and presented upon the written request of any person.   
Pursuant to the Article 52 of the Customs Code , the preliminary decision made by the customs 
authorities shall be mandatory for implementation by customs authorities.  Preliminary decision shall 
be submitted to the customs authorities along with the customs declaration.  
The preliminary decision procedures are established by the Order of the Customs Control Committee  
No. 210 of 15 June 2003.  
In accordance with Government Resolution No. 669 "O n Establishment of the Rates of Fees, Charges 
and Payments Levied by Customs Bodies" of 7 July  2003, the fee in the amount of € 50 is charged for 
preliminary decision making services. 
It should be noted that provisions of Article 47 of the Customs Code provides the right, but not 
obliges the customs authorities to make the prelimin ary decision on the country of origin of goods at 
the request of the participant of foreign trade activity  before the trade actually takes place.  Therefore, 
in order to fully comply with the provisions of Article 2(h) and paragra ph 3(d) Annex II Agreement 
on Rules of Origin, the Government of Kazakhsta n is planning to introduce amendments to the 
Customs Code.  It is envisaged to introduce a new provision, which obliges customs authorities to 
make preliminary decision upon the request of th e participant of foreign trade provided that all 
necessary information is duly submitted. The amendm ent will also clearly stipulate the preliminary 
decision procedures will be applicable to both preferential and non-preferential trade.   
- Other customs formalities Question 76 Paragraph 145:  We would urge Kazakhstan to eliminate the "transaction passport" required 
for transactions exceeding US$ 10,000 by accession .  This is an unnecessary burden for trade. 
Answer: 
 
The transaction passport requirement is not used  as quantitative restriction of export-import 
operations, which creates  a barrier for foreign trad e activity.  Consequently, the transaction passport 
requirement does not contradict to Article XI of  GATT 1994 on "General Ca ncellation of Quantitative 
Restrictions".  
In accordance with the currency le gislation of the Republic of Kazakhstan, the transaction passport is 
a basic document required for monitoring of currency and trade flows in the course of foreign trade 
operation. The transaction passport is necessary fo r provision of accounting and reporting on currency 
transactions. Key objective of this document is reflection of basic data on foreign trade contract 
(amount, term, information, identifying whether resi dents or non-residents are participants of the 
foreign trade operation).  The transaction passport shall be filled in by resident-exporter/importer.     
Identification number, assigned to the transaction pass port, is key for analysis of data  on movement 
of financial resources and commodities.  Analysis of data is important for monitoring of export 
revenues and obtaining of import commodities, including for development of the balance of payments  WT/ACC/KAZ/66 
 Page 91 
 
 
  statistics. Accuracy and reliability of balance of payment statistics has a direct impact on the quality 
of economic policy decisions made in Kazakhstan.   
As of 2007, when participants of foreign trade contr act themselves will be able to set the date/deadline 
for fulfilment of contractual obligations, the tran saction passport will be used as a tool for making 
analysis and prognosis of inflow and use of fo reign currency in the Republic of Kazakhstan. 
Procedures for obtaining transaction passport will be  significantly simplified. In particular, it is 
intended to reduce the number of bodies, whose ap proval is required for signing the transaction 
passport, and to eliminate a number of requirement s with regard to foreign trade participants on 
provision of additio nal information.  
As the experience of other countries show, elimin ation of the transaction passport requirement will 
lead to substantial increase in direct regular reporting of enterprises, which is found more 
burdensome.  With the transaction passport requirement in place, small and medium sized enterprises engaged in foreign trade business with non-residents will not need to provide balance of payments 
statistical reports.    
Question 77 
Question 76 of document WT/ACC/KAZ/57:  Acco rding to this answer, Kazakhstan plans on 
abolishing the current licensing regime in resp ect of the "bargain passport."  Does this mean 
the "bargain passport" will b есоmе the new licence?  How is this compliant with the licensing 
agreement? 
Kazakhstan's requirement to obtain an import "passport" in addition to registration and 
licensing for currency control is duplicative and an  unnecessary burden on trade.  It essentially 
replaces former requirements to register import contracts. Kazakhstan should eliminate this 
measure as soon as possible. 
Answer:
 
The transaction passport requirement is not used  as quantitative restriction of export-import 
operations, which creates a barrier for foreign trad e activity.  Consequently, the transaction passport 
requirement does not contradict to Article XI of  GATT 1994 on "General Ca ncellation of Quantitative 
Restrictions".  
In accordance with the currency le gislation of the Republic of Kazakhstan, the transaction passport is 
a basic document required for monitoring of currency and trade flows in the course of foreign trade 
operation.  The transaction passport is necessar y for provision of accounting and reporting on 
currency transactions.  Key objective of this docum ent is reflection of basic data on foreign trade 
contract (amount, term, information, identifying whet her residents or non-residents are participants of 
the foreign trade operation).  The transaction passport sha ll be filled in by resident-exporter/importer.     
Identification number, assigned to the transaction passpor t, is key for analysis of data on movement of 
financial resources and commodities.  Analysis of da ta is important for mon itoring of export revenues 
and obtaining of import commodities, including for deve lopment of the balance of payments statistics. 
Accuracy and reliability of balance of payment statistics has a direct impact on the quality of 
economic policy decisions ma de in Kazakhstan.   
As of 2007, when participants of foreign trade contr act themselves will be able to set the date/deadline 
for fulfilment of contractual obligations, the tran saction passport will be used as a tool for making 
analysis and prognosis of inflow and use of fo reign currency in the Republic of Kazakhstan. 
Procedures for obtaining transaction passport will be significantly simplified.  In particular, it is WT/ACC/KAZ/66 
Page 92  
 
  intended to reduce the number of  bodies, whose approval is required for signing the transaction 
passport, and to eliminate a number of requirement s with regard to foreign trade participants on 
provision of additio nal information.  
As the experience of other countries show, elimin ation of the transaction passport requirement will 
lead to substantial increase in direct regular reporting of enterprises, which is found more 
burdensome. With the transaction passport requirement  in place, small and medium sized enterprises 
engaged in foreign trade business with non-residents will not need to provide balance of payments 
statistical reports.    
-  Preshipment inspection 
Question 78 
Please explain the meaning of paragraph 151.  It is not clear if а PSI system still exists, or if it 
has been rescinded. 
We thank Kazakhstan for the information provided in response to Question 77 of 
WT/ACC/KAZ/57, but it remains unclear ( а) whether such а system currently exists; (b) to 
which products it is, or was, applied; ( с) its place and methods of operation; (d) its revenue 
source; ( е) whether or not it is mandatory, and if so , for which imports; and (f) the abi1ity of 
importers to appeal and the legal status of the PSI firm in such an appeal. 
The section should be revised substantially to in dicate in clear terms the current status, legal 
basis, operational characteristics, and scope of any PSI system in operation. 
Answer:
 
1.  Preshipment Inspection  
(а)  Currently, preshipment inspection does not exis t in the Republic of Kazakhstan.  From 1995 
to 1997 preshipment inspection of goods im ported to the Republic of Kazakhstan was 
performed by "Societe Generale de  Surveillance S.A." company  (SGC).  Due to the fact that 
the preshipment inspection services conducted by  this company gave no positive results, 
Kazakhstan discontinued a contract with the company. 
(b)  The preshipment inspection procedure was a pplied to imports of all goods, except for those 
imported from the CIS countries.  Besides, goods, the customs value of which did not exceed US$ 3,000, and goods of strategic importance,  of double purpose and printing materials were 
exempted from preshipment inspection procedures.  
(с)  Preshipment inspection procedure was conduc ted in the exporting country. The goods subject 
to preshipment inspection were subject to qua lity and quantity control as well as verification 
of the value of goods and whether their cust oms classification corresponded to the Tariff 
Nomenclature on Foreign Economic Activity applied in the Republic of Kazakhstan. 
(d)  Service fees were levied in the amount of 1 per cent of FOB value of imported goods and 
were paid from the state budget. 
(е)  Preshipment inspection procedure was manda tory for all imported goods, except for those 
goods, the customs value of which did not exceed US$ 3,000, and goods of strategic 
importance, of double purpose and printing materials.  WT/ACC/KAZ/66 
 Page 93 
 
 
  (f)  In accordance with the legislation of the Republic of Kazakhstan, foreign economic activity 
participant was entitled to appeal against th e decision made by the territorial customs 
authorities to follow the recommendation of the PSI firm to the higher customs authority or to 
the court system.   
2.  Independent expert examination   
From 2001- 2005, the independent expert examinati on of customs value of imported goods has been 
conducted by the "ICS Inspection and Control Se rvices Kazakhstan" company (ICS- Kazakhstan).  
However, independent examination of custom s value of imported goods did not represent a 
preshipment inspection procedure, since its decision was made within 30 days after sampling of goods 
and conducting the complete price ex amination of imported goods.    
(а)  This system does not exist currently.  The term of the contract with the ICS Kazakhstan 
company expired on 4 October 2005 and was not renewed. 
(b) All categories of goods imported to Kaza khstan could be sampled for the purposes of 
independent customs value examination, except fo r goods included into the List of Goods not 
Subject to Independent Examination, such as goods of strategic importance and medicine.  
The List was incorporated into the contract terms.  
(с)  The independent expert examination of customs value of imported goods was conducted 
within Kazakhstan. Regional representatives of  "ICS Kazakhstan" carried out their activities 
throughout all regions of Kazakhstan. The cu stoms valuation was based on use of two 
methods: transaction value of identical goods and transaction value of homogeneous/similar 
goods.   
(d)  For rendered services, "ICS Kazakhstan" Co mpany was given remuneration of 30 per cent of 
the levied customs duties and taxes as a resu lt of the independent expert examination of 
customs value of imported goods.   
(е)  According to the contract signed between the Ministry of State Revenue and the ICS 
company in 2001, not more than 20 per cent of cargo customs declarations within one quarter 
could be subject to independent  examination by the ICS company, except for goods included 
into the List of goods not subject to independent examination.    
(f)  In accordance with the legislation of the Republic of Kazakhstan, foreign economic activity 
participant was entitled to appeal against th e decision made by the territorial customs 
authorities to follow the recommendation of the ICS Kazakhstan company to the higher 
customs authority or to the court system.   
- Anti-dumping, countervailing duties, and safeguard regimes Question 79 Thank уоu for the update on Kazakhstan's trade rem edy laws. When does Kazakhstan expect 
that the draft laws on amendments and a dditions to Kazakhstan's trade remedies laws, 
described in paragraph 153 of the Draft Workin g Party Report, will be available for review by 
the Working Party? 
We look forward to reviewing the amended la ws, and urge Kazakhstan to circulate these in 
draft to the Working Party as soon as it is possible. WT/ACC/KAZ/66 
Page 94  
 
  Answer:
 
With the purpose to bring the national legislati on into conformity with the WTO Agreement on 
Safeguards, the Law of the Republic of Kazakhsta n No. 59-III "On Amendments and Addenda to the 
Law of the Republic of Kazakhstan "On safeguard m easures of the domestic market in importation of 
products" has been adopted.  
The text of the Law No. 337-I "On safeguard meas ures of the domestic market in importation of 
products" of 28 December 1998 as amended by th e Law No. 59-III of 16 June 2005 is available 
through document WT/ACC/KAZ/66/Add.1. 
Most particularly, the following amendments have been introduced by the new Law:  
− the definitions of "domestic industry", "serious in jury", " threat of serious injury" have been 
modified in accordance with the defin itions stipulated in the WTO Agreement; 
− the involvement of all interested parties thr ough publication of a notification in mass media 
has been introduced as mandatory condition for in itiating the investigation, which shall be 
conducted prior to application of safeguard measures; 
− the provision stating the aims of the heari ng procedure during the investigation has been 
amended to ensure that opportunities were given to all interested parties to produce their 
evidence and their views; 
− the provision stating that the security funds shall not be transferred to the state budget, but 
rather deposited to an account, until the final decision is made by the Government on 
application of safeguard measures as a result of the investigation process has been added; and 
− the provision providing for progr essive liberalization of the safeguard measures after their one 
year of application has been added.            
The detailed comparative table on conformity of the Law of Kazakhstan 337-I "On safeguard 
measures of the domestic market in importatio n of products" of 28 December 1998 with the 
provisions of the WTO Agreement on Safeguards is enclosed in Annex VI. 
With the purpose to bring the national legislati on into conformity with the WTO Agreement on 
Subsidies and Countervailing Measures and the WTO Ag reement on Implementation of Article VI of 
the General Agreement on Tariffs and Trade 1 994, the Law of the Republic of Kazakhstan 
No. 114-III "On Amendments and Addenda to Legisl ative Acts of the Republic of Kazakhstan on 
Subsidies, Countervailing and Antidumping Measures" of 9 January 2006 has been adopted.  The text 
of the Law is available through document WT/ACC/KAZ/66/Add.1. 
Most particularly, in accordance the WTO Agreemen t on Subsidies and Countervailing Measures, the 
following amendments have been introduced by the new Law:  
− the definitions of "domestic producers", "like products", "specific subsidy" have been 
modified; 
− following the termination of provisions stated in Article 8 of the WTO Agreement regarding 
non-specific subsidies, the corresponding provis ion has been eliminated in the Law of 
Kazakhstan; 
− the provision has been added which provides for the opportunity of holding consultations with 
the aim of settling the matter without conductin g the investigation and application of 
countervailing measures; and 
− the provision has been added providing for extension by the authorized body upon the 
sufficient cause shown of the one month term give n for preparation of the reply to the request.  WT/ACC/KAZ/66 
 Page 95 
 
 
  The detailed comparative table on conformity of the Law of the Republic of Kazakhstan No. 441-1 
"On Subsidies and Countervailing Measures" of 16  July 1999 with the provisions of the WTO 
Agreement on Subsidies and Countervailing Measures is enclosed in Annex VII. 
In pursuance of the WTO Agreement on Implementati on of Article VI of the General Agreement on 
Tariffs and Trade 1994, the following amendments have been introduced by the new Law: 
− the term "normal price" has been replaced by  the term "normal value" of imported goods; 
− the concept of common trade operations used in  the Law has been modified in accordance 
with the WTO Agreement; 
− de minimis  dumping margin has been reduced from 5 to 2 per cent of the export price in order 
to be considered as a reason for terminat ion of the anti-dumping investigation;  
− the provision has been added stating that pr oves received by the authorized body shall be 
made available to all interested parties, ex cept for information of confidential nature; and 
− the provision has been added stating that the no tification shall be made through publication in 
official media on introduction of antidumpi ng measures and related information to the 
investigation process with due account of confidential information.    
The detailed comparative table on conformity of the Law of the Republic of Kazakhstan No. 421-1 
"On Anti-Dumping Measures" of 13 July 1999 with the provisions of the WTO Agreement on Implementation of Article VI of the General Ag reement on Tariffs and Trade 1994 is enclosed in 
Annex VIII. 
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
Question 80 
Paragraphs 160-162 of the Draft Report indicate that Kazakhstan has applied export duties on 
domestic products as listed in Table 6 (Par agraph 160).  These discriminatory export duty 
exemptions granted to member-States of the Customs Union may have distorting effects on 
trade, and could be inconsistent with WTO regulations.  Would Kazakhstan therefore please consider abolishing this measure pr ior to its accession to the WTO. 
Answer:
 
In accordance with the Agreement on Cust oms Union and Single Economic Area dated 
26 February 1999, its Members (Kaz akhstan, Belarus, the Russian Federation, Kyrgyzstan and 
Tajikistan) apply free trade regime in full, with no  tariff or non-tariff restrictions on the basis of 
bilateral and multilateral Free Trade Agreements (FTAs).  According to FTAs, the Parties do not 
apply customs duties and quantitative restrictions on import and export of goods originated from the 
customs territory of one Party and destined for the customs territory of another Party.    
Furthermore, in accordance with  the Agreement on Creation of the Free Trade Area of 15 April 1994, 
its Members (CIS member-states) shall establish free trade regime with no tariff or non-tariff 
measures for goods, except for certain ex emptions, which will be phased out.  
The Customs Code of the Republic of Kazakhsta n stipulates the abovementioned provisions. In 
particular, Article 331, stipulates that the goods impor ted into the customs territory of the Republic of 
Kazakhstan and originating from Members of the cust oms union or free trade ar ea with Kazakhstan as WT/ACC/KAZ/66 
Page 96  
 
  well as goods exported from the customs territory of  Kazakhstan to such countries and originating 
from Kazakhstan shall be exempted from customs duties. 
The provisions stipulated in Article 331 of the Customs Code fully comply with the criteria 
established in Article XXIV of GATT for free trad e areas and customs unions. In particular, the 
provisions of Article XXIV of GATT stipulate the following:   
- In respect of trade with third parties, the duties and other regulations of commerce imposed 
by the customs union or applied by each of th e constituent territories of a free trade area at 
their formation should not be higher or more  restrictive than corresponding duties and other 
regulations of commerce applicable in the same  constituent territories prior to the formation 
of customs unions and free trade areas; 
- Duties and other restrictive regulations of  commerce are eliminat ed with respect to 
substantially all the trade between the constituen t territories of the customs union or at least 
with respect to substantially all the trade in products originating in such territories for both 
customs unions and free trade areas. 
In light of the provisions of Article XXIV of GATT, it should be noted that Kazakhstan applied 
export duties with regard to trade with third parti es prior to formation of a free trade area with CIS 
countries and customs union with Belarus, Kyrg yzstan, Russian Federation and Tajikistan. 
Elimination of both import and export duties and other restrictive regulations of commerce with 
regard to all the trade in products originating from the territories of parties to the customs union has 
also been undertaken in accordance with Article XXIV of GATT.  
Furthermore, Kazakhstan applies export duties to  a limited number of products for fiscal and 
regulatory purposes like other WTO member-states.     
Question 81 
Paragraphs 160 to 162:  We would urge Kaza khstan to phase out its export duties and would 
propose Kazakhstan to prepare a timetable for th eir gradual elimination.  (This is what was 
promised in our bilateral meeting in January).  
Answer: 
 
It should be noted that application of export duti es is not prohibited by WTO Agreements.  The latest 
research in this sphere demonstrates that 93 count ries, including developed countries, apply export 
duties.  It is also known that virtually WTO imposes no disciplines on export duties except for MFN principle according to Article I of GATT 1994 and general transparency requirements pursuant to 
Article X of GATT 1994. 
Currently, export duties in the Republic of Kaza khstan have been approved by the Government 
Resolution No. 841 of 5 June 2000 and is applied only to a limited number of goods primarily for 
fiscal and regulatory purposes like other WTO member-sta tes.  In particular export duties are applied 
to goods used as raw materials for domestic produ cers, such as scrap and waste of ferrous and non-
ferrous metals, wool and skin of cattle  and other livestock, and oil products. 
Export duties imposed on scrap and waste of ferrous  and non-ferrous metals, wool and skin of 
livestock are of regulatory nature and were introduced to ensure provision of domestic processing 
industries with raw materials due to critical shorta ge of these goods in the domestic market, which is 
permitted by paragraph (i) Article XX of GATT 1994.  WT/ACC/KAZ/66 
 Page 97 
 
 
  Furthermore, the Government of Kazakhstan is unde rtaking the steps to narrow down the list of goods 
subject to export duties.  In particular, the export duty on aluminium and beryllium ligature have been 
reduced to 0 per cent (HS code 7601 20 100 0) by the Government Resolution No. 898 of 
6 September 2005.  In addition, the Government of  Kazakhstan is also pla nning to eliminate export 
duties on aluminium-made products (HS Code 7604). 
Following the request made by some Working Part y members to eliminate seasonal export bans on 
mazut, diesel, gasoline and other oil products, and in  order to bring its trade policy into conformity 
with the provisions of Article XI of GATT 1994, the Government of Kazakhstan as an alternative 
measure introduced export duties on petroleum products .  The rates of export duties were calculated 
on the basis of world prices on crude oil, which are re-calculated every month and do not have impact on the volumes of exports.  The export duties on petr oleum products have been introduced for fiscal 
purposes.  Those revenues will be used for allocation of direct subsidies to farmers for purchase of 
fuel.    
Kazakhstan is of the view that export duties are le gitimate instruments of trade policy from the WTO 
perspective. Nonetheless, Kazakhstan will aim at mini mizing the use of export duties.  Application of 
such duties will not contradict to the relevant provisions of WTO Agreements. 
In addition, Kazakhstan commits to fulfil its tran sparency obligations under Article X GATT.  With 
this regard, Kazakhstan will publish export du ties and their changes in official media 
(Kazakhstnaskaya Pravda and Egemen  Kazakhstan official newspapers). 
Question 82 
Kazakhstan reports that it taxes exports of iron and steel scrap at the rate of 40 per cent but not 
less than € 35 per tonne. 
We would appreciate clarification on Kazakhstan's intentions to reduce or eliminate this export 
tax, given the pressure it places on countries not applying such restrictions in the current 
market. 
This is particularly important in light of Kazakhstan's n оn-MFN regime on export duties with 
the Customs Union. 
Finally, we do not understand why Kazakhstan ex empts only exports to the countries of the 
customs union from export duties. If Kazakhstan has FT А relations with other CIS, why aren't 
export duties eliminated with these trading partners as well? 
То discriminate in the elimination of duties and ch arges has implications for the consistency of 
this measure with Article XXIV of the GATT. 
Answer: 
 
It should be noted that application of export duti es is not prohibited by WTO Agreements.  The latest 
research in this sphere demonstrates that 93 count ries, including developed countries, apply export 
duties. It is also known that virtually WTO imposes no disciplines on export duties except for MFN 
principle according to Article I of GATT 1994 and general transparency requirements pursuant to 
Article X of GATT 1994. 
Currently, export duties in the Republic of Kaza khstan have been approved by the Government 
Resolution No. 841 of 5 June 2000 and is applied on ly to a limited  number of goods primarily for 
fiscal and regulatory purposes like other WTO member-states. Export duties imposed on scrap and WT/ACC/KAZ/66 
Page 98  
 
  waste of ferrous and non-ferrous metals, wool and skin  of livestock are of regulatory nature and were 
introduced to ensure provision of domestic processing  industries with raw materials due to critical 
shortage of these goods in the domestic market, whic h is permitted by paragraph (i) Article XX of 
GATT 1994. 
Furthermore, the Government of Kazakhstan is unde rtaking the steps to narrow down the list of goods 
subject to export duties. In particular, the export duty on aluminium and beryllium ligature have been 
reduced to 0 per cent (HS code 7601 20 100 0)  by the Government Resolution No. 898 of 
6 September 2005.  In addition, the Government of  Kazakhstan is also pla nning to eliminate export 
duties on aluminium-made products (HS Code 7604). 
Following the request made by some Working Part y members to eliminate seasonal export bans on 
mazut, diesel, gasoline and other oil products, and in  order to bring its trade policy into conformity 
with the provisions of Article XI of GATT 1994, the Government of Kazakhstan as an alternative 
measure introduced export duties on petroleum products .  The rates of export duties were calculated 
on the basis of world prices on crude oil, which are re-calculated every month and do not have impact 
on the volumes of exports. The export duties on petrol eum products have been introduced for fiscal 
purposes. Those revenues will be used  for allocation of direct subsidies to farmers for purchase of 
fuel.    
Kazakhstan is of the view that export duties are le gitimate instrument of trade policy from the WTO 
perspective. Nonetheless, Kazakhstan will aim at mi nimizing the use of export duties. Application of 
such duties will not contradict to the relevant provisions of WTO Agreements. 
In addition, Kazakhstan commits to fulfil its tran sparency obligations under Article X GATT.  With 
this regard, Kazakhstan will publish export du ties and their changes in official media 
(Kazakhstnaskaya Pravda and Egemen  Kazakhstan official newspapers). 
In accordance with the Agreement on Cust oms Union and Single Economic Area dated 
26 February 1999, its Members (Kaz akhstan, Belarus, the Russian Federation, Kyrgyzstan and 
Tajikistan) apply free trade regime in full, with no  tariff or non-tariff restrictions on the basis of 
bilateral and multilateral Free Trade Agreements (FTAs).  According to FTAs, the Parties do not 
apply customs duties and quantitative restrictions on import and export of goods originated from the 
customs territory of one Party and destined for the customs territory of another Party.    
Furthermore, in accordance with  the Agreement on Creation of the Free Trade Area of 15 April 1994, 
its Members (CIS member-states) shall establish free trade regime with no tariff or non-tariff 
measures for goods, except for certain ex emptions, which will be phased out.  
The Customs Code of the Republic of Kazakhsta n stipulates the above-mentioned provisions.  In 
particular, Article 331, stipulates that the goods impor ted into the customs territory of the Republic of 
Kazakhstan and originating from Members of the cust oms union or free trade ar ea with Kazakhstan as 
well as goods exported from the customs territory of  Kazakhstan to such countries and originating 
from Kazakhstan shall be exempted from customs duties. 
The provisions stipulated in Article 331 of the Customs Code fully comply with the criteria 
established in Article XXIV of GATT for free trade areas and customs unions.  In particular, the provisions of Article XXIV of GATT stipulate the following:   
− In respect of trade with third parties, the duties and other regulations of commerce imposed 
by the customs union or applied by each of th e constituent territories of a free trade area at 
their formation should not be higher or more  restrictive than corresponding duties and other  WT/ACC/KAZ/66 
 Page 99 
 
 
  regulations of commerce applicable in the same  constituent territories prior to the formation 
of customs unions and free trade areas; and 
− Duties and other restrictive regulations of commerce are eliminated  with respect to 
substantially all the trade between the constituen t territories of the customs union or at least 
with respect to substantially all the trade in products originating in such territories for both 
customs unions and free trade areas. 
In light of the provisions of Article XXIV of GATT,  it should be noted that Kazakhstan had applied 
export duties with regard to trade with third parti es prior to formation of a free trade area with CIS 
countries and customs union with Belarus, Kyrg yzstan, Russian Federation and Tajikistan. 
Elimination of both import and export duties and other restrictive regulations of commerce with 
regard to all the trade in products originating from the territories of parties to the customs union has 
also been undertaken in accordance with Article XXIV of GATT.  
- Export restrictions Question 83 Paragraph 169:  We welcome information from Kazakhstan that it plans to bring its export 
restrictions into full conformity with Article XI GATT upon accession.  Could Kazakhstan give 
a state of play of the process?  Have legislative proposals been prepared? 
We would like to stress that in case export duties are to be introduced, th ey cannot be set at a 
prohibitive level. They should also be gradually phased out. 
Answer: 
 
Following the request made by some Working Part y members to eliminate seasonal export bans on 
mazut, diesel, gasoline and other oil products, and in  order to bring its trade policy into conformity 
with the provisions of Article XI of GATT 1994, the Government of Kazakhstan as an alternative 
measure introduced export duties on petroleum produc ts.  In this regard, the Resolution of the 
Government of Kazakhstan No . 1036 "On Imposition of Customs Duties upon Export from the 
Customs Territory of the Republic of Kazakhsta n on Goods Produced from Crude Oil" has been 
adopted on 15 October 2005. 
The rates of export duties were calculated on the basi s of the world prices for crude oil, which are re-
calculated every month due to volatility of world pr ices for crude oil and do not have impact on the 
volumes of exports.  
The Resolution of the Government of the Republic of Kazakhstan No. 5 "On Amendments and 
Addenda to the Resolution of the Republic of K azakhstan No. 1036 of 15 October 2005" of 6 January 
2006 has established export duties on certain types of petroleum products, including diesel, aviation 
fuel, and petrol, which entered into force as of March 2006.  
The export duties on petroleum products have been  introduced for fiscal purposes. The revenues 
accrued to the state budget will be used for allocati on of direct subsidies to farmers for purchase of 
fuel.    
In this regard, the Government has adopted a R esolution of the Republic of Kazakhstan No. 6 "On 
Establishment of Regulations for Payments of Subsidies for Producers of Agricultural Goods for 
Purchase of Diesel Fuel for Sp ring Sowing and Harvesting Work s in 2006 and Regulations for 
Providing Producers of Agricultural Goods with Di esel Fuel for Spring Sowing and Harvesting Works 
in 2006" on 6 January 2006.  WT/ACC/KAZ/66 
Page 100  
 
  The Regulations define the procedures of allocati on of subsidies to farmers, which are aimed to 
ensure partial recovery of the costs incurred for pu rchase of diesel fuel, within the limits of funds 
allocated in the state budget to the Ministry of Agriculture.  
The Government is also planning to develop the Ru les on allocation of subsidies for entities providing 
housing and communal services for purchase of fuel during heating seasons.  
Question 84 We will seek а commitment that from the date of a ccession, Kazakhstan's export restrictions 
will be in conformity with WTO provisions, including Article ХI of the GATT. 
We note that export bans and quantitative restri ctions on commercial products are hard to 
justify under WTO provisions. We urge Kazakhstan to review its position and find WTO-
consistent methods to regulate this trade. 
In this regard, we are reviewing current polici es concerning export allocations for gas and oil 
products, with а view to clarifying Kazakhstan's policies restricting exports of, e.g., diesel fuel, 
on a seasonal or other basis. 
We will seek а commitment that from the date of a ccession, Kazakhstan's export restrictions 
will be in conformity with WTO provisions, including Article ХI of the GATT. 
Answer: 
 
Following the request made by some Working Part y members to eliminate seasonal export bans on 
mazut, diesel, gasoline and other oil products, and in  order to bring its trade policy into conformity 
with the provisions of Article XI of GATT 1994, the Government of Kazakhstan as an alternative 
measure introduced export duties on petroleum produc ts.  In this regard, the Resolution of the 
Government of Kazakhstan No . 1036 "On Imposition of Customs Duties upon Export from the 
Customs Territory of the Republic of Kazakhsta n on Goods Produced from Crude Oil" has been 
adopted on 15 October 2005. 
The rates of export duties were calculated on the basi s of the world prices for crude oil, which are re-
calculated every month due to volatility of world pr ices for crude oil and do not have impact on the 
volumes of exports.  
The Resolution of the Government of the Republic of Kazakhstan No. 5 "On Amendments and 
Addenda to the Resolution of the Republic of K azakhstan No. 1036 of 15 October 2005" of 6 January 
2006 has established export duties on certain types of petroleum products, including diesel, aviation 
fuel, and petrol, which entered into force as of March 2006.  
The export duties on petroleum products have been  introduced for fiscal purposes.  The revenues 
accrued to the state budget will be used for allocati on of direct subsidies to farmers for purchase of 
fuel.    
In this regard, the Government has adopted a R esolution of the Republic of Kazakhstan No. 6 "On 
Establishment of Regulations for Payments of Subsidies for Producers of Agricultural Goods for 
Purchase of Diesel Fuel for Sp ring Sowing and Harvesting Work s in 2006 and Regulations for 
Providing Producers of Agricultural Goods with Di esel Fuel for Spring Sowing and Harvesting Works 
in 2006" on 6 January 2006.   WT/ACC/KAZ/66 
 Page 101 
 
 
  The Regulations define the procedures of allocati on of subsidies to farmers, which are aimed to 
ensure partial recovery of the costs incurred for pu rchase of diesel fuel, within the limits of funds 
allocated in the state budget to the Ministry of Agriculture.  
The Government is also planning to develop the Ru les on allocation of subsidies for entities providing 
housing and communal services for purchase of fuel during heating seasons.  
- Export subsidies Question 85 We appreciate Kazakhstan's explanatio n regarding export financing provided b у the 
Development Bank of Kazakhstan. 
Please confirm that export financing provided by  the Development Bank conforms to the rules 
set out in items (j) and (k) of Annex 1 of the WTO Subsidies Agreement. Please also provide the 
Working Party а copy of Law No. 178-11 "On the Development Bank of Kazakhstan" of 
25 April 2001. 
Answer: 
 
The Development Bank of Kazakhstan (hereinafter referred to as the Bank) as the state development 
institution operates based on market principles.  In  accordance with Article XII of the Law of the 
Republic of Kazakhstan No. 178-II "On Development Bank of Kaza khstan" of 25 April 2001, Bank 
provides loans with the interest rates calcula ted based on the average cost of borrowing and 
operational costs of the Bank. Hence, the Bank is le gally prevented from subsidizing the interest rates 
applied for its loans and crediting on preferential terms.  
In this regard, the credits, including export cred its provided by the Bank, do not represent subsidies 
within the meaning of Article 1 of WTO Agre ement on Subsidies and Countervailing Measures. 
In 2004, the Bank participated in financing deve lopment of the following sectors of the economy: 
− 38.7 per cent of the total volume of credit portfolio is used for financing projects in 
production of agricultural produc ts and related services,  
− 25.1 per cent of the total volume of credit portfolio is used for financing projects in 
production of foodstuffs and beverages;  
− 9.1 per cent of the total volume of credit por tfolio is used for financing transport 
infrastructure projects; 
− 7 per cent of the total volume of credit portfolio  is used for financing projects in electricity, 
gas, steam and hot water supply; 
− 5.8 per cent of the total volume of credit portfolio  is used for financing projects in textile and 
tanning-footwear industry; 
− 5.4 per cent of the total volume of credit portfolio is used for financing projects in 
metallurgical industry; 
− 4.6 per cent of the total volume of credit portfolio is used for financing projects 
manufacturing electronic equipment; and 
− 4.3 per cent of the total volume of credit portfolio is used for financing projects 
manufacturing automobiles and other types of equipment. 
Furthermore, it should be noted that practice of  export crediting is widely used by financial 
institutions of WTO member-states (such as Credit Agency KfW of Germany, Development Bank of 
the Republic of Korea, etc).  WT/ACC/KAZ/66 
Page 102  
 
  The text of the Law of the Republic of Kazakhstan No. 178-II "On Development Bank of 
Kazakhstan" of 25 April 2001 is availabl e through document WT/ACC/KAZ/66/Add.1. 
Question 86 
Paragraph 175 of the Draft Working Party Report  states that, "the system of decreasing 
(discount) coefficients on tariffs for railway tran sportation of sulphuric acid and iron ore had 
not been directed at supporting domestic manufacturers." 
We would like to reiterate that, to the extent  that discounts of these tariffs are provided to 
producers of sulphuric acid and iron ore оn the basis of export performance (even if this is not 
necessarily the specific goal of the legislation) , the discounts are prohibited export subsidies as 
provided under Article 3 of the Subsidies Agreement. 
As such, these discounts would be inconsistent with the WTO Subsidies Agreement and must be 
eliminated prior to Kazakhstan's accession to the WTO. 
Answer: 
 
In 2005-2006, the temporary decreasing coefficients to  railway tariffs were not used for transportation 
of iron-ore products in Kazakhstan.  
In 2005, in accordance with the Order of the Chairman of the Agency on Regulation of Natural 
Monopolies of the Republic of Kazakhstan No. 53-OD of 16 February 2005, the temporary decreasing 
coefficient at the rate of 0.5 points to the railway  tariff was provided for transportation of sulphuric 
acid by the JSC "KazZinc".  The decreasing coeffici ent equally applied for both domestic and export 
destinations for the term of three months.  
Sulphuric acid has been exported by the JSC "KazZ inc" to the Kyrgyz Republic and the Russian 
Federation.  
Sulphuric acid is the by-product produced as a result  of production of such products as metallic zinc 
and refined copper.  Application of the decreasing co efficient was justified by the necessity to utilise 
sulphuric dioxide in the course of refining the sul phide polimetal ore in order to reduce the harmful 
impact of the product on the environment.  Du e to environmental safety concerns, enterprises 
producing sulphuric acid shall either utilize or sell the product.  
Since, the decreasing coefficient was applied equa lly for railway transpor tation for both export and 
domestic destinations in order to ensure environmen tal safety, this measure should not be considered 
as prohibited export subsidy.  
Question 87 
Based on information in paragraph 175 of the Draft Working Party Report, it appears that the 
legislation providing for decreasing coefficients fo r the export of sulphuric acid and iron ore has 
been eliminated and replaced by Order No. 375-OD of 8 September 2004. 
Please provide the Working Party а copy of this legislation.  Please also confirm that this 
replacement legislation conforms  to the rules provided under Article 3 of the WTO Subsidies 
Agreement.  WT/ACC/KAZ/66 
 Page 103 
 
 
  Answer:  
The Order of the Agency on Regulation of Na tural Monopolies of the Republic of Kazakhstan 
No. 24-OD "On Approval of Rules on Setting and Cance llation of Decreasing Coefficients to Tariffs 
for Transportation of Goods by Railway Transport"  of 30 December 1999 was replaced by the Order 
of Acting Chairman of the Agency on Regula tion of Natural Monopolies and Protection of 
Competition of the Republic of Kazakhstan No. 375-OD "On Approval of Rules of Granting 
Temporary Decreasing Coefficients to Tariffs (Pri ces, Duties Rates) for Regulated Services of the 
Main Railway Network" (hereinafter re ferred to as Rules) of 8 September 2004. 
According to the Rules, resident and non-resident  enterprises are entitled to apply to the relevant 
authority for obtaining temporary decreasing coeffi cients to tariffs charged for services of main 
railway network. 
The text of the Order of Acting Chairman of the Agency on Regulation of Natural Monopolies and 
Protection of Competition of the Republic of  Kazakhstan No. 375-OD of  8 September 2004 is 
available through document WT/ACC/KAZ/66/Add.1. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial роlicу, including subsidies 
Question 88 Please соnfirm that financing provided by Kazakhstan's Eximbank соnfоrms to the rules set out 
in items (j) and (k) of Аnnех 1 of the WTO Subsidies Agreement.  Please also provide the 
Working Party а сору  of Presidential Decree No. 1815 of 16 July 1994. 
Answer:
 
The Export-Import Bank of Kazakhstan (ExImBank) provided loans at preferential rates.  Pursuant to 
the Decree of the President of the Republic of  Kazakhstan No. 1815 of 16 June 1994, the main 
function of the ExImBank was to borrow funds on international capital markets under government 
guarantees and serve the loans as an agent within the country.  
The state-owned ExImBank has also carried out th e functions of a development bank.  The bank 
provided loans on preferential terms for priority inv estment projects at the average interest rate of 
6 per cent for a period of 3-5 years, of which the pr eferential period represented 2-3 years.  The credit 
terms applied in uniform way to all enterprises involved in priority sectors of the economy.      
Those loans were provided to local companies for the following purposes:  
− processing of agricultural products;  
− import of agricultural equipment and machinery;  
− import of mineral fertilizers;  
− import of equipment for production of sugar beet;  
− import  of equipment for production of natural stones;    
− import of equipment for construction projects;   
− import of equipment for production of construc tion materials, including window frames and 
plastic doors;  
− construction of the plant for production of pumps;  
− construction of the footwear factory; and 
− construction of electric networks companies and electric power plants.   WT/ACC/KAZ/66 
Page 104  
 
  The loans were provided to domestic enterprise s mostly to facilitate import of technologies, 
equipments and goods, whic h were not produced in Kazakhstan. The imports of those products  were 
necessary either for development of new industrie s in non-mineral sectors of the economy or for 
assisting companies which were in crisis.  Henc e, the companies receiving the credits from the 
ExImBank were not in a position to export their products.     
The provision of loans was not contingent, in law or in fact, upon export performance or upon the use 
of domestic over imported goods.  
Against the above background, Kazakhstan assures that  credits provided by the ExImBank conform to 
the rules established in paragraphs (j) and (k) Annex I of the WTO Agreement on Subsidies and 
Countervailing Measures.                                   
Finally, it should be noted that in 2004 the state- owned shares of the ExImBank of Kazakhstan were 
sold to private ownership.  Currently, the ExImBa nk does not operate on behalf  of the Government of 
Kazakhstan.    
The text of the Decree of the President of the Re public of Kazakhstan No. 1815 of 16 July 1994 "On 
Establishment of the Export-Import Bank of the Republic of Kazakhstan" is available through 
document WT/ACC/KAZ/66/Add.1.  
Question 89 
Regarding tax exemptions to exporters of yellow phosphorus, ground phosphate rock and 
phosphate fertilizer, we appreciate the explanation provided in paragraph 185 of the Draft Working Party Report.  However, to the extent  that these tax exemptions are contingent upon 
export, they still appear to be prohibited export  subsidies, as provided under Article 3 of the 
Subsidies Agreement. 
Answer:
 
The "KazPhosphate" LLP is granted the following investment preferences: 
− 50 per cent reduction of corporate tax rate until 31 August 2008; 
− 50 per cent reduction of propert y tax rate until 2007; and 
− 50 per cent reduction of land tax until 2007. 
In accordance with the Law of the Republic of K azakhstan "On State Support of Direct Investments" 
of 28 February 1997, the contracts granting inv estment preferences to the "KazPhosphate" LLP were 
concluded in 1999-2000.  The investment preference s were granted based on the strategic importance 
of the industry for the national economy, and were  not contingent upon export performance or upon 
the use of domestic over imported goods. Hence, in  accordance with Article 2 of the WTO Agreement 
on Subsidies and Countervailing Measures, these pr eferential tax measures could be considered as 
"specific subsidy".     
Question 90 Please explain how Kazakhstan plans to bring this program into соnfоrmity with Article 3 of 
the Subsidies Agreement. 
Please соnfirm whether Kazakhstan has provided info rmation on the universe of Kazakhstan's 
subsidy policy.  WT/ACC/KAZ/66 
 Page 105 
 
 
  Answer:  
In accordance with Article 119-I of the Tax Code, one of the criteria used for granting corporate 
income tax preferences to petrochemical companies was that 90 per cent of crude oil used by those 
industries should be produced in Kazakhstan.  Hence, the investment preferences granted to 
petrochemical industry were contingent upon the use of domestic over imported goods, and as such 
represented "prohibited subsidy".  
This provision has been eliminat ed by the Law of the Republic of  Kazakhstan "On Amendments and 
Addenda to Legislative Acts of the Republic of Kazakhstan on Taxation Issues" adopted on 
22 November 2005.   
The preferences are granted to companies operating in  priority sectors of the national economy in the 
form of preferential loans, tax preferences and customs duty exemptions. 
The main legislation establishing the pref erential treatment includes the following: 
− The Law of the Republic of Kazakhstan No . 373 "On Investments" of 8 January 2003; 
− The Law of the Republic of Kazakhstan No. 2823 "On Special Economic Zones in the 
Republic of Kazakhstan"  of 26 January 1996; 
− The Tax Code of the Republic of Kazakhstan; 
− The Customs Code of the Republic of Kazakhstan; 
− The Resolution of the Government of the Re public of Kazakhstan No. 397 "On Creation of 
Small Business Development Fund of 26 April 1997; 
− The Resolution of the Government of the Republic of Kazakhstan "On the Concept of 
Development of the Joint Stock Company "Small Business Development Fund" for 
2005-2007" of 28 April 2005; 
− The Resolution of the Government of the Re public of Kazakhstan No. 220 "On Amendments 
and Addenda to the Resolution of the Governme nt of the Republic of Kazakhstan No. 1054" 
of 24 February 2004; and 
− The Resolution of the Government of the Re public of Kazakhstan No. 355 "On the List of 
Goods Produced in the Territory of the Repub lic of Kazakhstan Under the Customs Regime 
"Free Warehouse" and Sold to the Rest of th e Territory of Kazakhstan, which are Exempted 
from VAT" of 14 April 2005. 
1. Investment preferences  
The Law of the Republic of Kazakhstan No. 373 "O n Investments" of 8 January 2003 stipulates 
investment preferences for both foreign and domestic investors operating in priority sectors of the national economy. The provisions Law do not discrim inate investors depending on the nationality of 
ownership of investments. 
Investment preferences are provided in the form of tax preferences, customs duty exemptions for 
imported products and in-kind grants.  Decisions  regarding investment preferences and on the 
extensions of their terms are made by the authorized investment body. 
The investment preferences are granted to investor s investing into priority sectors of the national 
economy.  The Resolution of the Government of  the Republic of Kazakhstan No. 436 "On Some 
Issues of Enforcing the Law "On Investments" of 8 May 2003 established the list of priority sectors. 
Currently, the following priority sectors benefit from th e investment preferences: agriculture, forestry, 
fishery, foodstuff production, textile and apparel,  production of goods made from wood, polygraphy, 
furniture production, chemical industry, productio n of rubber and plastic products, metallurgy, WT/ACC/KAZ/66 
Page 106  
 
  machinery production, hardware production, medica l equipment production, production of equipment 
for radio, television and communication, production of electrical energy and gas, construction, transportation.  
- Investment tax preferences 
Corporate income tax preferences are granted for the term up to ten years.  Corporate income tax 
preferences are granted in the form of full corporat e income tax exemption or gradual deduction of the 
cost of commissioned fixed assets from aggregate annua l income in equal parts throughout the term of 
the preferential treatment.  The terms and duration of corporate income tax preferences depended on the volume of investments made into fixed asset s and on the type of investment activity. 
Property tax preferences are granted for the term up to five years.  Property tax preferences are 
granted in the form of property tax exemption on fixed assets that are newly commissioned under the 
respective investment project.  The balance sheet value of the taxable objects constitutes their tax 
base. Juridical persons and natural persons calculate property tax at the rate of one per cent from the 
average annual value of taxable objects.  
Land tax preferences are granted for the term up to five years from tax payable on plots of land used 
in the framework of the investment project.  Differe nt types of land were taxed differently and were 
subdivided into three categories – agricultural lands , populated lands and industrial lands. Rates were 
set according to area size, soil quality and yield class.  
VAT exemptions.  As of 1 January 2006, the i nvestors are exempted from payments of VAT on 
turnover of goods (services, works) sold. VAT exem ptions are granted to those investors, who were 
granted VAT exemptions on imported goods (servi ces, works), pursuant to the terms of the 
investment contracts. 
Juridical persons operating under a special tax regi me and within the framework of subsurface use 
contracts are not entitled to any investment tax preferences and in-kind state grants. 
- Customs duties exemptions 
Customs duties exemptions on equipment/spare part s imported for the implementation of investment 
projects are granted for a period of up to five years. 
- In-kind state grants 
In-kind state grants are granted in the form of  land plots, buildings, machinery and equipment, 
computational devices, measuring and regulatin g units, transportation vehicles (except for 
automobiles), industrial and household tools.  The au thorized body, with the approval of the relevant 
state agencies, confers in-kind state grants for eith er ownership or temporary use.  Approval for in-
kind state grants can be obtained within 15 busin ess days from the date of request.  In-kind state 
grants are assessed at their ma rket value, the maximum amount not exceeding 30 per cent of the 
volume of investments made in the fixed assets of a given juridical person. 
2. Special Economic Areas
 
The Law of the Republic of Kaza khstan "On Special Economic Areas"  provided for tax preferences 
and customs duties exemptions.  At this stage, f our special economic areas(SEAs), including "Astana 
– New City", "Seaport Aktau", "Informational Technologies Park" and "Ontustyk", function in 
Kazakhstan. The Government Kazakhstan welcomes pa rticipation of foreign companies in the SEAs.  WT/ACC/KAZ/66 
 Page 107 
 
 
  The set of criteria  shall be met by both foreign a nd national companies in order to become eligible for 
tax preferences and customs duty ex emptions granted within SEAs.  
The SEA "Astana-New City" was estab lished to facilitate the socio- economic development of the city 
through building high-tech industry, attracting ne w investments, use of advanced construction 
technologies, and building the modern infrastructure. 
The SEA "Aktau Seaport" was established to facilit ate the development of the seaport infrastructure, 
development of auxiliary services that could be pr ovided by the seaport, attracting new investments, 
creating new jobs and introducing modern ad ministration and economic  management methods. 
The SEA "Information Technologies Park" was establis hed to facilitate diversification the national 
economy through production of information technology products and effective use of the country's 
scientific and technical innovation capacity. 
The SEA "Ontustyk" with the purpose to facilita te diversification the national economy through 
development of the textile industry in southern regi on of Kazakhstan, which is specialized in cotton 
production, attract foreign investors and create jobs. 
Enterprises operating within the SEAs are entitled to  tax preferences and customs duty exemptions. 
- Tax preferences 
Pursuant to Article 140 (1,2) of the Tax Code, co mpanies operating in special economic areas were 
provided with the following preferences: 
− 100 per cent corporate income tax reduction; 
− zero rate for land tax and property taxes; and 
− VAT exemptions.  
The companies operating in SEAs are entitled to VAT exemptions provided that they:  (i)  were registered with the tax aut horities within the territory of a SEA;  
(ii)  had no branches or other structural units outside the territory of the SEA; and 
(iii)  at least 90 per cent of their annual aggreg ate income comprised of the income subject to 
receipt (received) as a result of sale of the goods of own production (services, works) of the following types of activity, which comply with purposes of a SEA: 
− design, development, introduction and pilo t-production of software, databases and 
hardware;  
− the development of new informational t echnologies (IT) based on artificial immune 
and neural systems; 
− IT research and development; 
− production of textile, except for apparel; 
− production of knitted wear; and 
− production of clothing from textile. 
- Customs duty exemptions 
In accordance with Chapter 30 of the Customs Code , a "free customs area" means the customs regime, 
within the borders of a Special Economic Area, under which foreign and K azakh goods were placed 
and used.  Such goods are subject to customs du ties exemption.  When a certificate of origin 
establishing the SEA origin of goods was not availa ble, the goods were considered to be either WT/ACC/KAZ/66 
Page 108  
 
  Kazakh (when exported from Kazakhstan) or forei gn (when exported to the rest of the customs 
territory of Kazakhstan). 
3.   Free customs warehouse regime
 
To facilitate development of automobile assembli ng industry in Kazakhstan, the Resolution of the 
Government of the Republic of Kazakhstan No. 220 of 24 February 2004 introduced changes to the 
criteria of sufficient processing for automobile pr oduction.  The resolution stipulates gradual increase 
of the value of "local" content in the price of the final product. 
In particular, the Government Resolution sets the cer tain conditions for granting the status of origin 
when using imported goods by such producers.  The se conditions stipulate that the value of imported 
components and details used in assembli ng shall not exceed the following limits: 
− in the first year of production – 90 per cent in the price of the final good; 
− in the second year of production – 85 per cent in the price of the final good; 
− in the third year of production – 80 per cent in the price of the final good; 
− in the forth year of production – 70 per cent in the price of the final good; 
− in the fifth year of production – 60 per cent in the price of the final good; and 
− in the sixth year of production – 50 per cent in the price of the final good. 
This criteria of sufficient processing is applied only to the goods produced within the framework of 
investment projects implemented by the juridical pe rsons investing into the fixed capital not less than 
KZT 1 billion. 
Currently, the terms of the project on automob ile assembling implemen ted by "AZIA-AUTO" JSC 
met the above criteria.  The company received the following preferences until the year 2009:  
− customs duties exemptions for imported spare pa rts into the territory of the free warehouse; 
− the status of Kazakh origin of goods produced in the free warehouse, provided the company 
meets the criteria of sufficient processing; and 
− customs duty exemptions for importation of au tomobiles from the free warehouse to the rest 
of Kazakhstan. 
The free warehouse regime was established by the Customs Code and the Government Resolution 
No. 355 of 14 April 2005.  The texts are available through document WT/ACC/KAZ/66/Add.1. 
Moreover, the JSC "AZIA-AUTO" benefits from VA T exemptions for certain equipment and spare 
parts used as the company produces within  the free warehouse customs regime.  
4.  Crediting Small Business Entities  
The JSC "Small Business Development Fund" (hereinafter – Fund) with 100 per cent state-owned 
shares was established in 1997 with the following purposes:  
− to provide loans to the small business entities; 
− to provide guarantees to small businesses for obtaining credits from commercial banks; 
− to facilitate creation of busin ess-centres and incubators; and 
− to provide consultancy and market infrast ructure for small business development. 
As of 1 January 2006, the loan portfolio of the Fund was provided from the following sources:  WT/ACC/KAZ/66 
 Page 109 
 
 
  − The Program of Support of Producers establishe d by the Government Resolution No. 555 of 
22 May 2005 with the budget of US$ 22.7 milli on.  The Program has supported the projects in 
the following sectors: production of tractors, cement, fertilizers, packaging etc.  The annual interest rate represented 12 per cent.  During the implementation of the Program 5, 537 jobs 
were created; 
− The Program on Crediting of Small Business, 225 projects were funded with the total amount 
of KZT 596.4 million (approximately US$ 4.7 million); 
− Program on Development of Small Town s with the budget of KZT 1,163.14 million 
(approximately US$ 9 million) funded 235 projects.   The annual interest rate – 7 per cent.  
The loans were provided to the entities work ing in the following sectors:  production of 
industrial goods – 25 per cent, construction – 6 per cent, produc tion of construction materials 
– 10 per cent, services – 28 per cent, agricu lture and food – 18 per cent, transport – 
13 per cent. 
− Fund's own resources with the budget of KZT 11,742.92 million (approximately 
US$ 91.7 million) funded 984 projects.  The annual interest rate – 10 per cent; 
− Financial Leasing – 66 projects in  the amount of KZT 922 million; and 
− Bank guarantees – KZT 4,000 million (approximately US$ 31 million).    
Question 91 
When can we expect а draft formal subsidy notification? 
We also seek а clear commitment to eliminate all prohib ited subsidies (both export and import 
substitution subsidies) by the time of accession.  We look forward to reviewing information from 
Kazakhstan on the specifics of its current program and how it intends to proceed to bring these 
measures into conformity with WTO. 
Answer:
 
More detailed information on preferences granted by th e state to producers of industrial goods will be 
provided to Working Party members in the draft subs idy notification, which is currently being worked 
out by the various government agencies. 
- Technical barriers to trade, standards and certification 
Question 92 Has Kazakhstan submitted its November 2004 Law "On Technical Regulation" to the Working 
Party for its review? 
Answer:
 
Text of the Law of the Republic of Kazakhstan No . 603-II "On Technical Regulating" of 9 November 
2004, is available through doc ument WT/ACC/KAZ/66/Add.1. 
Annotation to the Law "On Technical Regula ting" (hereinafter referred to as Law): 
This Law regulates relations associated with de termination, establishment, application and 
implementation of mandatory and voluntary require ments to products, processes, services, including 
conformity recognition, accreditation and governmental  control and supervisio n of observation of the 
meeting the set requirements, except for sanitary a nd phytosanitary measures.  Mandatory regulation 
of requirements applies to products only. Mandato ry requirements to processes are introduced such 
processes that are related to the safety of products. WT/ACC/KAZ/66 
Page 110  
 
  Services shall not be subject to mandatory regulatio ns. The provisions of this  law apply to services 
only with regard to standardizati on and voluntary conformity assessment. 
The following are the main objectives of technical regulation: 
− provision of the safety of products and processes for human life and health and environment, 
including animals and plants; 
− ensuring national security;  
− prevention of actions, misleading the consumers as to the safety of products, services; 
− elimination of technical barriers to trade; and 
− increased competitiveness of products. 
The law takes into account the main requirements of the TBT Agreement, including: 
− equal treatment of national and imported products and uniform requirements to the 
procedures of conformity assessment; 
− priority of international standards in the de veloping of regulatory legal acts and national 
standards; 
− transparency in the development of re gulatory legal acts and standards; and 
− priority of rules of international treaties ra tified by the Republic of  Kazakhstan over national 
legislation. 
The Government shall set mandatory requirements to  products (processes, if necessary to processes) 
via normative legal acts (technical regulations), adopted by the Government. 
Standards are voluntary in nature and can be us ed as the demonstrative/support basis for meeting 
requirements of technical regulations. 
Technical regulations must contain an exhaustive lis t of mandatory requirement s to products and shall 
have the status of direct application. 
Requirements stipulated by technical regulations shall be set forth and applied in equal and the 
uniform manner regardless of the countr y and/or place of origin of a product. 
For expert examination of draft technical regulations  the law provides for creation of expert boards on 
technical regulation under the governmental bodies, which shall include representatives of 
governmental bodies, public unions, scientific organi zations and enterprises of the Republic of 
Kazakhstan. 
The law sets forth the requirements to the pro cess of elaboration, adoption and application of 
regulations, which ensure transp arency and their availability: 
− notifications on elaboration of draft tec hnical regulations, making amendments and/or 
addenda thereto, or their cancellation shall be published in an official printed edition and in 
the generally available information system within one month since the moment of the 
drafting, amending or cancellation; 
− to conduct pubic hearings and further work on the draft taking into account the comments; 
and 
− to provide interested parties upon their request  the comments collected to the draft technical 
regulation.  WT/ACC/KAZ/66 
 Page 111 
 
 
  The duration of public hearing of a draft technical regulation shall be at least 60 calendar days (from 
the day of publication of the notification on its elaboration up to the day of publication of the 
notification announcing the end of public hearing). 
Whenever the requirements set forth by technical regulations do not meet the requirements of the 
relevant international standards or  there are no such international standards or the requirements of the 
technical regulations in question might have an effect on conditions of imports or exports, the 
authority, which has elaborated the draft technical regulation, shall notify about the list of products to 
be covered by the elaborated technical regulation in question, about the purpose of and need in its 
creation, as well as submit detailed information on the elaborated draft technical regulation or a copy 
of the draft outlining the provisions that do not meet  the requirements of international standards to 
interested parties and foreign countries upon their request. 
Standards shall be elaborated by technical comm ittees on standardization. Technical committees on 
standardization shall include representatives of  governmental bodies and interested parties. 
Regulations and standards of other countries and intern ational organizations shall be used in full or in 
part as the basis in elaboration of national sta ndards of the Republic of Kazakhstan, except for 
situations when such standards are inefficient or  inadequate for achieving the objectives stipulated 
herein. 
An Inquiry Point (Information Centre) shall function for interaction with the Secretariat of the World 
Trade Organization, WTO Members, and internationa l organizations with the purpose of provision of 
interested parties and foreign countries with copies of documents and information on technical 
regulations, standards and conf ormity recognition procedures. 
The Law provides for such kinds of conformity assessment as "conformity recognition" - a 
documentary confirmation that a product is safe fo r consumers; and "accreditation" - the official 
recognition of the right to function of a body providing conformity recognition in such area. 
There are mandatory and voluntary conformity recognitions: 
1.  Mandatory conformity recognition is require d for products with high risk of hazard. These 
products are subjected to the conformity of a pr oduct to requirements of the relevant technical 
regulations. 
 Mandatory product conformity recognition shall have the form of certification issued by the 
certification body accredited in accordance with th e established procedure, or alternatively a 
producer shall declare the conformity of its products to the requirements set by technical 
regulations. 
2.  An applicant may make voluntary conformity recognition in the form of certification or 
declaring that products, which are not subject to mandatory conformity recognition, as well as services and processes do meet requirements of technical regulations or contracts. 
The Government shall approve the uniform accr editation procedure for bodies and laboratories 
involved in conformity recognition activities.  
Any organization, including foreign, seeking to work  in the national system of conformity recognition 
as a conformity recognition organization or a test  laboratory may perform such operations provided 
that it has been duly accredited in accordance with th e procedure approved by the Government of the 
Republic of Kazakhstan. WT/ACC/KAZ/66 
Page 112  
 
  Foreign conformity certificates, test protocols, accreditation certificates or equivalent documents 
issued by a foreign accreditation body shall be rec ognized by the authorized body in accordance with 
concluded international agreements. 
The Law strikes the balance between governmental in terference and protection of the public interests 
in use of safe product so that the products in questio n are subject to the state control only on the sales 
stage and only with regard to meeting the requireme nts of technical regulations. The state control of 
an enterprise may be undertaken only provided that  there have been detected violations of the 
production process. 
The law provides for a transition period, wher e until adoption of new technical regulations: 
− the relevant parts of regulatory documents (re gulations) and standard s regarding mandatory 
requirements designed to achieve the objectives of safety assurance and consumer information on product safety remain valid;  
− mandatory conformity recognition shall be made  in accordance with safety criteria for the 
types of products and services included into th e list of products and services subject to 
mandatory conformity recognition as approved by the Government of the Republic of 
Kazakhstan. 
As soon as necessary, the new technical regulati ons are elaborated and adopted, the products 
governed by such adopted technical regulations sha ll be excluded from the said List. In the future, the 
List shall cease to exist when all types of pr oducts representing potential hazard or harm will be 
regulated by technical regulations. 
As soon as technical regulations are adopted, the exis ting state and regional standards with duplicating 
or contradicting provisions shall become void. 
In accordance with Article 5 of the Law "On Techni cal Regulating" a structure of state system of 
technical regulating consists of: 
− the Government of the Republic of Kazakhstan; 
− authorized body; 
− government bodies within their competence; 
− expert councils in the area of technical  regulating under the government bodies;  
− Information centre on technical barriers to trade, sanitary and phytosanitary measures; 
− technical committees for standardization; 
− conformity assessment bodies, laboratories; 
− expert-auditors on confor mity assessment, standardization and accreditation; 
− state fund of the normative legal acts in the area of technical regulating and standards. 
Question 93 
In reference to WT/ACC/SPEC/KAZ/8/Rev.1, Paragraph 157, is there an appeal process should 
accredited certification bodies decide not to issue а certificate? If so, please describe. 
Answer:
 
An applicant may appeal measures undertaken by an organization providing conformity recognition in 
regard of a product conformity r ecognition.  In doing so, the applicant may apply to the Board of 
Appeals of the conformity recognition organization, and, if such applicant does not agree with its 
decision, to the Board of Appeals at the Technical Regulating and Metrology Committee, Ministry of  WT/ACC/KAZ/66 
 Page 113 
 
 
  Industry and Trade of the Republic of Kazakhstan.  In the Republic of Kazakhstan state (national) 
standard ST RK 3.10 "The Order of the Examination of Appeals" was approved. 
In accordance with this standard the applicant subm its an appeal within one month since the day of 
receipt of notification on the decision made by the accredited certification bodies. The appeal shall be 
made in writing, the form being upon the applican t's discretion, with the correspondence and other 
relevant documents enclosed. 
Boards of appeal include specialists whose qua lification and experience can ensure unbiased and 
justified decisions. When considering appeals, the board shall take measures to keep the confidential 
data constituting commercial secret undisclosed. 
The Board of Appeals shall consider an appeal w ithin 15 days submission of the documents.  The 
board's decision shall be made in th e form of a protocol and sent to th e applicant within ten days since 
the date of the meeting. 
The decision made by the Board of Appeals at the Technical Regulating and Metrology Committee 
may be appealed in the court according to th e legislation of the Republic of Kazakhstan. 
ST RK 3.10 – "The Order of the Examination of Appeals" is available through document 
WT/ACC/KAZ/66/Add.1. 
Question 94 
If no accredited body has the testing capability,  will the testing results of a non-accredited body 
be considered/accepted? 
Answer:  
A certification body or a laboratory shall be accred ited for specific types of products and tests. 
Certification bodies or laboratories are not allowed to function outside their scope of accreditation. 
Body on conformity recognition or an attesting laboratory does not have an authority to conduct an 
activity on conformity assessment not included into their accredited sphere. 
In the absence of accredited la boratories, tests may be conducted by competent non-accredited test 
laboratories, which can guarantee objective results, only upon request of the Committee on Technical 
Regulating and Metrology under the Mi nistry of Industry and Trade of the Republic of Kazakhstan. 
Moreover, the existing system of certification provides several conformity recognition schemes 
(modules), including schemes for situations when th ere are no necessary test laboratories exist in a 
region. In such situations, the decision shall be  made on the basis of submitted documents supporting 
the conformity of products in question to the re quirements (test protocols from other laboratories, 
earlier certificates for the products, certificate on quality management system, etc).  
However, such scheme cannot be applied for certifi cation of children food, toys, gasoline for cars, 
medicines, and hazardous industrial objects. 
Conformity recognition schemes (modules) are enclosed in Annex IX. 
Question 95 
Question 101:  Please provide an exhaustive list of all products that require a certificate of 
conformity. How is a certificate acquired? Is the re a cost associated with the certificate?  WT/ACC/KAZ/66 
Page 114  
 
  Answer:
 
With the purpose of ensuring the safety of products fo r the human health and life, and environment, as 
well as for the national security concerns a nd competitiveness of local products that meet 
requirements of relevant regulations and satisfy  consumer demands, Government Resolution No. 367 
as of 20 April 2005, approved: 
− list of products and services subject to mandato ry certification, including 24 groups of 
products, including vehicles and their components and details, agricultural machinery, service and civil arms and ammunition, electro-techni cal, radio and electronic appliances, household 
chemicals, etc; and 
− list of products allowed for conformity recogniti on with conformity declaration, including 8 
groups of products. It includes certain types of  furniture, shoes, construction materials, 
medical items, communication means, etc. 
These lists are enclosed in Annexes X and XI. 
Mandatory conformity recognition shall have the form of certification by a duly accredited 
certification body or in the form of declaration of conformity to technical regulations requirements. 
There is a single conformity recognition procedure in  Kazakhstan for all kinds of products regardless 
of areas of their use. 
Rules on Conformity Recognition and Accredita tion Work Involving Governmental Bodies, 
Technical Committees on Standardization and Ce rtification Bodies were approved by Ordinance 
No. 136 by the Committee on Technical Regulating a nd Metrology under the Ministry of Industry and 
Trade of the Republic of Kazakhstan, as of 13 May 2005 and registered in the Ministry of Justice 
(available through document WT/ACC/KAZ/66/Add.1). 
Besides, the national standard ST RK 3.4-2003 "S tate Certification System of the Republic of 
Kazakhstan. Procedure for Product Conformity R ecognition. General Requirements". The standard 
provides for several conformity recognition schemes  (modules) available for the applicant to choose 
from. 
Conformity recognition schemes (modules) are enclosed in Annex IX. 
Products, subject to mandatory certification (both local and imported), shall be certified by safety 
criteria in accordance with the following uniform rules: 
1. products shall be certified upon the applican t's request submitted to any certification body 
accredited for such type of products; 
 
− the applicant chooses the product certificati on scheme (module) with the assistance of 
the certification body; 
− the certification body shall consider the app lication, register it, and send the applicant 
the resolution on the results of applicati on processing. The resolution states the main 
certification conditions: the suggested certif ication scheme (module), the laboratory, 
conditions of inspection control over the certified product;  
− if the applicant agrees with the conditions  of product certification, they make an 
agreement on product certification and the app licant transfers the certification fee to 
the certification body's bank account; 
  WT/ACC/KAZ/66 
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  2. the certification body takes samples of the declared products in accordance with the 
requirements of guidelines on such products, wh ich is to be verified with the document; 
 3. the certification body sends the samples to th e accredited laboratory (centre) chosen at its 
discretion; 
− the laboratory (test centre) shall check the samples and send the results report to the 
certification body; 
 4. if the certification scheme (module) procedure results positively, the certification body issues 
the certificate for the product and makes the required number of copies;  
− the conformity certificate may have an anne x with the list of specific products that 
were certified, and, their composition if required. 
− the certification body sets the certificate's expiration date taking into account: 
− the certification scheme (module) chosen;  
− the specific character of a product and its production;  
− expiration term of standards and nor mative documents for the product;  
− the period of validity of the certificate on production or quality management 
system, but no longer than for three years;  
 
5. the inspection control of certified products, if  such is required by the chosen certification 
scheme (module), shall be made by the certification body that has issued the certificate.  Inspections shall be made at least once a year during the entire period of the certificate's 
validity. 
The cost of certification depends on how much a nd difficult the testing of the certified product is. 
Question 96 
WT/ACC/KAZ/57 contains a number of questions for which Kazakhstan has provided 
responsive information.  We will reflect on th is information and provide additional comments 
and questions in writing. 
The text WT/ACC/SPEC/KAZ/9 requires updating in the light of the passage of the 
9 November 2004 Law "On Technical Regulating" to better reflect the substantial and positive 
reforms Kazakhstan is undertaking. 
The Working Party Report should be revised to reflect the current situation and should 
mention this up front (i.e. paragraph 189). 
Answer:
 
We propose amending the text of the Working Party Report as follows: Paragraph 189.
  The legislation framework on technical regul ating, standardization, certification, and 
accreditation in Kazakhstan is based on Law No. 603-II "On Technical Regulating" of 
9 November 2004. This law replaced the earlier La w No. 433-1 "On Standardization" of 16 July 1999 
and Law No. 434-1 "On Certification" of 16 July 1999. 
The law takes into account the main requirements of the WTO Agreement on TBT, including: 
− equal treatment of national and imported products and uniform requirements to the 
procedures of conformity assessment; WT/ACC/KAZ/66 
Page 116  
 
  − priority of international standards in the de veloping of regulatory legal acts and national 
standards; 
− transparency in the development of re gulatory legal acts and standards; and 
− priority of rules of international treaties ra tified by the Republic of  Kazakhstan over national 
legislation. 
Paragraph 190
. The Law of the Republic of Kazakhstan "On Technical Regulating" sets forth 
mandatory requirements to products aimed to ensure  their safety to the human health and life, 
environment protection, national security, as well as to prevent actions misleading consumers as to the 
safety of products. 
Mandatory requirements to processes shall be estab lished only when such processes are related to 
product safety assurance. 
Technical regulations adopted by the Government sh all set forth mandatory requirements to products 
(processes, if necessary). 
Technical regulations must contain an exhaustive lis t of mandatory requirement s to products and shall 
have the status of direct application. 
Requirements stipulated by technical regulations shall be set forth and applied in equal and the 
uniform manner regardless of the countr y and/or place of origin of a product. 
For expert examination of draft technical regulations  the law provides for creation of expert boards on 
technical regulation under the governmental bodies, which shall include representatives of 
governmental bodies, public unions, scientific organi zations and enterprises of the Republic of 
Kazakhstan. 
Elaboration of technical regulations shall be based on international and regional standards. 
With such requirements, the national legislation on technical regulating cannot  constitute any barriers 
to international trade. 
The existing laws of the Republic of Kazakhstan will be brought into  conformity with the provisions 
of the Law of the Republic of Kazakhstan "On Technical Regulating" with the principles and 
provisions of the WTO Agreement on technical barriers to trade. 
With this purpose, Kazakhstan has prepared a draft Program for elaboration of  five new and amending 
34 existing laws of the Republic of Kazakhstan. 
Expert boards on technical regulating to be created at governmental bodies shall elaborate and make 
expert examination of draft technical regulations. Such expert boards shall include representatives of 
governmental bodies, public unions, scientific organi zations and enterprises of the Republic of 
Kazakhstan. 
Currently, the expert boards have been created unde r the auspices of the ministries of industry and 
trade; transport and communications emergency, la bour, finance, interior, defence, agriculture, and 
public protection; Informatization and Communicat ion Agency, National Security Committee, and 
Land Resources Management Agency.  
The body elaborating technical regulations shall publish notifications on elaboration of a draft 
technical regulation within one month since the mo ment of the drafting; conduct pubic hearings and  WT/ACC/KAZ/66 
 Page 117 
 
 
  further work on the draft taking into account the comments; provide interested parties upon their 
request the comments collected to the draft technical regulation. 
The term of public hearing of a draft technical regulation shall be at least 60 calendar days. 
Whenever the requirements set forth by technical regulations do not meet the requirements of the 
relevant international standards or  there are no such international standards or the requirements of the 
technical regulations in question might have an effect on conditions of imports or exports, the 
authority, which has elaborated the draft technical regulation, shall notify about the list of products to 
be covered by the elaborated technical regulation in question, about the purpose of and need in its 
creation, as well as submit detailed information on the elaborated draft technical regulation or a copy 
of the draft outlining the provisions that do not meet  the requirements of international standards to 
interested parties and foreign countries upon their request. 
Paragraph 191 . In accordance with the Law of the Republic  of Kazakhstan "On Technical Regulating" 
standards shall be applied voluntar ily and equally regardless of the origin of a product or service. 
Kazakhstan may apply internationa l and regional standards, classifiers of technical and economic 
information, rules, guidelines and recommendations, national standards, standards of organizations, 
foreign classifiers of technical and economic  data, rules, norms and recommendations on 
standardizing meeting security requirements. 
International standards shall prevail. Regulations and standards of foreign countries and inte rnational organizations shall be used in full or 
in part as the basis in elaboration of state (nati onal) standards of the Republic of Kazakhstan, except 
for situations when such standards are inefficient or inadequate for achieving the objectives stipulated 
herein. 
Standards shall be elaborated by technical committ ees on standardization.  Technical committees on 
standardization shall include representatives of  governmental bodies and interested parties. 
Paragraph 192
. Rules approved by an ordinance of the Committee on Technical Regulating and 
Metrology and registered in the Ministry of Justice shall govern the process and procedure for 
elaboration, coordination, recording, approval, expert examination, amending, termination and 
enforcement of national standards and classifiers of technical and economic information, as well as the procedure for accounting and application of intern ational, regional, and national standards, foreign 
classifiers of technical and economic data, rules,  norms and recommendations  on standardizing and 
accreditation in the territory of the Republic of Kazakhstan. 
An Enquiry Point (Information Centre) on Technical Barriers to Trade, Sanitary and Phytosanitary 
Measures has been created for interaction with the Secretariat of the World Trade Organization, WTO 
Members, and international organizations with the purpose of provision of interested parties and other 
countries with copies of documents and informa tion on technical regulations, standards and 
conformity recognition procedures. 
Any interested party may request Inquiry Point (Information Centre) the necessary information . 
Currently, the Enquiry Point has been processing no tifications for further submission to the WTO 
Secretariat. In addition, with the purpose of fulfilling our commitments pursuant to the Code of Good 
Conduct, the Enquiry Point has published the Draf t Law "On Amendments and Addenda to Certain 
Legislative Acts on Technical Regulating Issues" on the web-sites www.memst.kz and WT/ACC/KAZ/66 
Page 118  
 
  www.wto.memst.kz for the comments from the privat e sector, WTO members and other interested 
parties. 
Paragraph 193
.  The Law "On Technical Regulating" provides for mandatory and voluntary  
conformity recognition:  
Mandatory product conformity recognition shall  ha ve the form of certification issued by  the 
certification body accredited in accordance with the est ablished procedure, or alternatively a producer 
shall declare the conformity of its products to  the requirements set by technical regulations. 
An applicant may make voluntary conformity recogniti on in the form of certification or declaring that 
products, which are not subject to mandatory conformity recognition, as well as services and 
processes do meet requirements of technical regulations and contracts. 
Until adoption of the relevant technical regulations , mandatory conformity recognition shall be made 
in accordance with safety criteria for the types of products included into the list approved by the 
Government of the Republic of Kazakhstan. 
The list of products and services subject to mandato ry certification includes 24 groups of products, 
including vehicles and their components and details , agricultural machinery, service and civil arms 
and ammunition, electro-technical, radio and electr onic appliances, household chemicals, consumer 
commodities contacting human skin, food and water,  construction materials and structures, light 
industry products, medicines, fuel, toys, personal protection aids, etc. 
The list of products allowed for conformity recogni tion with conformity declaration includes 8 groups 
of products, including certain types of furniture, shoes, construction materials, medical items, and 
communication means. 
As soon as necessary, technical regulations are elabor ated and adopted, the products governed by such 
adopted technical regulations shall be excluded fr om the List of Products Subject to Mandatory 
Conformity Recognition.  In future, the List sh all cease to exist when all types of products 
representing potential hazard or harm will be regulated by technical regulations. 
There is a single conformity recognition procedure in  Kazakhstan for all kinds of products regardless 
of areas of their use. Rules on Conformity  Recognition and Accreditation Work Involving 
Governmental Bodies, Technical Committees on Sta ndardization and Conformity Recognition Bodies 
were approved with the Order No. 136 by the Committee on Technical Regulating and Metrology 
under the Ministry of Industry and Trade of th e Republic of Kazakhstan, as of 13 May 2005 and 
registered in the Ministry of Justice. 
Besides, the national standard ST RK 3.4-2003 "S tate Certification System of the Republic of 
Kazakhstan. Procedure for Product Conformity R ecognition. General Requirements" describes the 
organizational and technical aspects of this process. 
Paragraph 194 .  The work on harmonization of the existing standards with requirements of 
international standards with priority of application of international standards is in progress.  In 2004 
Kazakhstan elaborated and harmonized 197 state sta ndards, including 82 standards in real economy 
sector.  In 2005 Kazakhstan has harmonized 290 standards. 
For the further work on transition to internationa l standards, an analysis was undertaken of the 
existing normative framework (standards) on food, light , oil and gas industry, tourism, transportation 
and metallurgy, and proposals were made, accordingly, as to application of international standards in 
the mentioned sectors.  WT/ACC/KAZ/66 
 Page 119 
 
 
  Paragraph 195 . Conformity declaration shall be made by  producer (vendor) of products subject to 
mandatory conformity recognition in case when it is  required by technical regulations, as well as 
voluntarily in regard of any other products that ar e not subject to mandatory conformity recognition. 
The declaration may be made in the form of: 
− a conformity declaration based on the own evidence; and 
− a conformity declaration based on evidence obt ained with participation of conformity 
recognition organization. 
The following documents may be used as a proof:  technical documentation, results of own researches 
(tests) and measures and/or other documents that we re used as the basis for the conformity recognition 
of a product in question. 
When declaring the conformity bases on the own ev idence and evidence obtained with the help of a 
conformity recognition organization, the applicant in  addition may, on its discretion, use laboratory 
tests and measures protocols and submit a quality management system certificate.  
Conformity declaration shall be registered in th e conformity recognition organization accredited for 
this specific type of products. 
A duly arranged and registered conformity declarati on, equally with a conformity certificate is valid 
in the entire territory of the Republic of Kazakhstan  
Until adoption of the relevant technical regulations , the conformity declaration may be used for 
products, the list of which is approved by the Government.  
Paragraphs 196-200 . No changes. 
Paragraph 201 . Law "On Technical Regulating" covers all sectors, including the telecommunication 
sector.  
Under the program for elaboration of new and revision of the existing laws of the Republic of 
Kazakhstan the Law "On Telecommunication" will be re vised in order to bring into conformity with 
the law "On Technical Regulating". 
The main criterion for elaboration of new and revisi on of the existing laws is safety for the human life 
and health, and environment protection, the main  principles of which are transparency, equal 
requirements to local and imported products, and use of international standards as the basis for their 
elaboration. 
As for recognizing of test results, Law "On Techni cal Regulating" provides that foreign conformity 
certificates, test protocols, accreditation certificates or equal documents issued by foreign 
accreditation bodies shall be recognizes in accordan ce with international treaties/agreements. 
If there are no such international treaties/agreemen ts, test results of a body based outside of 
Kazakhstan shall be recognizes through accreditation of  such organization in the national system of 
accreditation of the Republic of Kazakhstan, wh ich complies with paragraph 6.1 of the WTO 
Agreement on TBT. 
Paragraphs 202-203 . No changes. WT/ACC/KAZ/66 
Page 120  
 
  Paragraph 204
. Kazakhstan, acceding to the WTO, aims at full conformity to the TBT Agreement. 
With this view the Law "On Technical Regulating" has been adopted. 
This Law contains the fundamental provisions and principles of the TBT Agreement. It serves as a 
basis when elaborating technical regulations, sta ndards, conformity recognitions, accreditation and 
state control. 
Currently, in some industry sectors, the laws that stipulate provision merely describing producers and 
the structures of the authorities, but no requirement s to the entities ensuring achievement of legitimate 
objectives, are still in operation.  
Mandatory requirements to the entities are contained in the standards, which with the implementation 
of the Law "On Technical Regulating", are advisory in nature. 
Therefore, these laws shall be amended for th eir full conformity to the Law "On Technical 
Regulating" and the TBT Agreement. Among them ar e: "On Fire Security", "On Medicines", "On 
Transports in the Republic of Kazakhstan"  and others, 33 laws in total.    
In addition, more five laws are pending elabora tion (for instance, 4 new la ws "On Electromagnetic 
Compatibility", "On Safety of Toys", "On Safety of  Chemical Products", On Safety of Machines and 
the Equipment" and 1 Law "On safety of Food  Products" replacing acting Law "On Quality and 
Safety of Food Products"). This is with the pur pose of the full coverage of all industry sectors under 
the Law "On Technical Regulating" and the TBT Agreement. 
Kazakhstan understands that  implementation period is not ava ilable.  Thus, Kazakhstan will take 
appropriate steps to revise acting 34 laws and elaborate new five laws that include safety requirements 
and take into account relevant inte rnational laws and standards duri ng 2006.  Such steps would allow 
us to remove technical barriers to trade. 
Finally, on the basis of proposals of the ministri es and agencies resulting from analysis of the acting 
regulatory legal acts governing various industry sectors for the purpose of their conformity to the Law 
"On Technical Regulating" and the TBT Agreement,  new regulatory legal acts on technical regulation 
will be elaborated and existing ones will be revised.  
Question 97 It remains unclear to us why Kazakhstan believes it needs а transition period to comply with 
WTO ТВТ  obligations. 
It would appear that Kazakhstan has а structure in place to ensure future compliance, and that 
the main issue left is to rescind/sunset/amend ex isting technical regulations or conformity 
assessment procedures it believes are not WTO compliant. 
This is Kazakhstan's responsibility in joining the WTO and we would expect this to be done by 
the time of accession. 
It is not clear why Kazakhstan believes it ne eds to pass ten new laws and 100 government 
resolutions (in specific regulatory areas, not horizo ntal legislation which appears to already be 
in place) in order to comply with the WTO ТВТ  obligations.  Why would this be necessary? 
Kazakhstan states that 30 existing laws need to be amended, but it is not clear whether these 
amendments are necessary for purposes of conformi ng to WTO obligations, or whether they are  WT/ACC/KAZ/66 
 Page 121 
 
 
  being undertaken for purposes of upgrading its infrastructure and regulatory quality. If the 
latter, such amendments could take place in  due course and need not hinder WTO accession. 
As it does not appear that Kazakhstan needs a dditional legislation to implement WTO, we 
believe that Kazakhstan should commit to adhere to the ТВТ  Agreement upon accession and 
without recourse to transition. 
Answer:  
This Law "On Technical Regulating" contains the fundamental provisions and principles of the TBT 
Agreement.  It serves as a basis when elaborating technical regulations, standards, conformity recognitions, accreditation and state control. 
Currently, in some industry sectors, the laws that stipulate provision merely describing producers and 
the structures of the authorities, but no requirement s to the entities ensuring achievement of legitimate 
objectives, are still in operation.  
Mandatory requirements to the entities are contained in the standards, which with the implementation 
of the Law "On Technical Regulating", are advisory in nature. 
Therefore, these laws shall be amended for th eir full conformity to the Law "On Technical 
Regulating" and the TBT Agreement.  
Kazakhstan understands that implem entation period is not availabl e. Thus, Kazakhstan will take 
appropriate steps to revise acting 34 laws and elaborate new five laws that include safety requirements 
and take into account relevant inte rnational laws and standards duri ng 2006.  Such steps would allow 
us to remove technical barriers to trade. 
Finally, on the basis of proposals of the ministri es and agencies resulting from analysis of the acting 
regulatory legal acts governing various industry sectors for the purpose of their conformity to the Law 
"On Technical Regulating" and the TBT Agreement,  new regulatory legal acts on technical regulation 
will be elaborated and existing ones will be revised.  
Kazakhstan will undertake its best efforts to adopt all abovementioned regulatory legal acts before the 
middle of 2006. 
- Sanitary and phytosanitary measures Question 98 We see this as a problematic area, where Kazakhstan has much work to do.  We have some 
questions from November that need fuller response. 
The Republic of Kazakhstan is requesting to delay application of the provisions of the SPS 
Agreement for a period of four years followi ng the moment of accession to the WTO. 
An extended transitional period of SPS measures is unacceptable. It appears that there is new 
legislation in the pipeline, and that Kazakhstan is retaining its request for a transition, now shortened. 
We urge Kazakhstan to keep working to avoid the need to have a transition in this area. We 
seek SPS legislation from Kazakhstan that provides for transparent, science-based regulations 
on all issues concerning sanitary and Phytosanitary regulations WT/ACC/KAZ/66 
Page 122  
 
  Kazakhstan should apply the WTO Agreement on  SPS Measures from the date of accession. 
Please describe the process for assessing the ri sk of imported commodities. Is this risk 
assessment process described and available public ly? Are interested parties able to provide 
comments on the risk assessments and are th ose comments, if accepted, addressed in the 
process? 
Answer:
 
- Food safety : 
Risk assessment is conducted upon request of the government authorities, including government 
bodies on sanitary-epidemiological control, judicial authorities, public associations, entrepreneurs, 
juridical and natural persons. 
Within their authority, the government bodies on sanitary-epidemiological control organize risk 
assessment, i.e. set a task to carry out the research /study on risk assessment with clear indication of 
objectives and missions. 
Risk assessment shall be carried out in accordance with established procedure by the bodies that are 
part of sanitary-epidemiological service (republican  sanitary-epidemiological stations, centres for 
sanitary-epidemiological expertise, republican sci entific-research organizations, conducting activities 
in the sphere of sanitary-epidemiological welfare of  the population, state anti-plague institutions) 
(hereinafter – bodies of sanitary-epidemiological service). 
The government bodies of sanitary-epidemiologi cal control submit deta iled report on conducted 
research and expert conclusion, which shall be  supported with substantiation of results and 
recommendations in accordance with th e targeted objective and missions. 
Government bodies on bodies of sanitary-epidemiol ogical control on the basis of the reports and 
conclusions issue sanitary-epidemiological conclusion. 
Risk assessment shall be carried out  according to the following stages: 
− hazard identification: (identification of potential harmful factors, assessment of the 
relationship of the factors in question and de terioration of human health, sufficiency and 
reliability of available information as to wh ether contaminant levels are caused by the 
substances under analysis; form a list of priority  chemical substances that are subject to the 
subsequent description); 
− assessment of "dose-response" dependence: re velation of quantitative relationship between 
data on human health a nd level of expositions; 
− analysis of the influence (expositions) of chemical substances on human: characteristics of 
contaminant sources, routs of movement of contaminants from the sources to human body; pathways and points of influence, determinati on of doses and concentrations; that will have 
impact in the future; identification of e xposition levels for population in the whole and 
individual sub-populations, incl uding supersensitive groups; and 
− characteristics of the risk: analysis of all available data, calculation of risks posed to 
population and its individual  sub-groups; compar ison of risks with the tolerance levels, 
comparative analysis and ranging of various risks according to their statistical, medical, 
biological and social significance, identification of medical priorities and those risks that must 
be prevented or reduced to the acceptable level.  WT/ACC/KAZ/66 
 Page 123 
 
 
  Interested parties can submit their comments on risk assessment via notification procedures 
established by the WTO Secretariat or the SPS/TBT Enquiry Point. 
- Plant Health : 
The phytosanitary risk analysis is determined as  the "process of biological and economic scientific 
assessment of a pathogenic organism aimed to determ ine if such an organism should be an object to 
phytosanitary measures, and how strict the phytosan itary measures should be taken against it" in the 
text of International Convention for Plant Protection revised in 1997. 
The risk assessment analy zes the possibility of a pathogenic organism to enter and acclimatize in a 
natural habitat (in Kazakhstan) e xposed to danger, as well as the po tential economic damage for this 
region. Assessment of the phytosanitary risk re duction allows to select specific phytosanitary 
(quarantine) measures in accordance with the biological features of the quarantined species and the 
ways of its infection and spread.  
The phytosanitary risk analysis includes three phases: preparatory, phytosanitary risk assessment, and 
assessment of the phytosanitary risk reduction. 
The preparatory phase includes identification of the pa thogenic organism or determination of its ways 
of spread for which the phytosanitary  risk analysis will be carried out. 
During the second phase (phytosanitary  risk assessment) the pathogenic organism is to be studied 
individually with the purpose of determination of its conformity with the criteria of quarantine 
species. At this stage an assessment  of a phytosanitary risk of the specific pathogenic organism for the 
territory of Kazakhstan (probability of penetrati on, acclimatization, and potential economic damage) 
is carried out. 
The third phase (assessment of the phytosanitary ri sk reduction) aims at assessing potential of the 
phytosanitary measures to reduce the risk from the specific quarantined pathogenic organism and 
determine the necessary phytosanitary measures. Phyt osanitary measures are used with the purpose to 
reduce the risk of entry of a pathogenic organism through the pathways revealed in the course of the 
phytosanitary risk assessment. 
For the phytosanitary risk assessment, the authori zed body on plant quarantine invites scientists from 
plants protection research institutes, who jointly with specialists from the Russian Plant Quarantine 
Research Institute, carry out the quarantine measures development on the basis of scientific principles 
of phytosanitary risk assessment taking into acc ount international standards and recommendations. 
This work has been included into  the action plan of the Ministry of Agriculture of Republic of 
Kazakhstan for 2005-2007 under the secti ons on pests, plant diseases and weeds. 
Nevertheless, these measures do not solve entirely the problems of technical nature related to the 
necessity of upgrading the equipment of the quarantin e laboratories. Also there is a need to create 
specialized laboratories which would conduct phyt osanitary risk assessment of imported goods as 
well as to equip them in conformity with  the relevant international standards. 
In addition, the Draft Law "On Safety of Foodstuff"  has been elaborated. Th e Draft Law provides for 
the provision on risk assessment of foodstuff which shall be conducted in each case as the complex set 
of risk assessment in the course of laboratory test of foodstuff.   WT/ACC/KAZ/66 
Page 124  
 
  - Animal Health
: 
Risk analysis has important place in trade in an imals, processed and raw products originated from 
animal as well as other goods subject to veterinary  control; and as well as in movement of and 
utilization of above mentioned s ubstances which potentially may carry hazard caused by diseases, 
harmful toxic substances threatening the epizootic welfare and food safety. 
The risk assessment is to be undertaken upon requ est of state authorities including central and local 
bodies of the state veterinary services, judicial authorities, and public associations, juridical and natural persons. 
State veterinary authorities within their co mpetence organize risk assessment and request 
organizations under their supervision (the Stat e Institution "National Ce nter for Reference, 
Monitoring and Veterinary Diagnosis" with its bran ches, the State Enterprise "Republican Veterinary 
Laboratory" with its branches, republican scientific  research institutions, regional branches of state 
veterinary control on the border and transport and local bodies of state veterinary) to conduct research. 
The process of risk analysis includes the following components: 
− Hazard identification – identification of pa thogenic organisms, contaminants and toxic 
elements in products. 
− Risk determination – determination of lik elihood as well as biological and economic 
consequences coming from entry and spread of pathogenic microorganisms, toxic and harmful substances; 
− Risk management – determination, selection and conduct of measures to be undertaken to 
reduce the risk as well as monitoring and inspec tion as to whether those measures do achieve 
the required  results; and 
− Notification of risk – mutual and periodical ex change of information about risk between the 
experts which carry out the risk assessment and the officers responsible for risk management 
and all other interested parties. 
The analysis of the veterinary and sanitary risk  shall be conducted in accordance with the national 
veterinary legislation taking into  account relevant recommendations of the Terrestrial Code of the 
OIE, and requirements of the SPS Agreement. 
The veterinary bodies upon completion of their r esearch and risk assessment shall submit the reports 
and laboratory expertise. On the basis of that rese arch the veterinary authority takes actions against 
hazard accordingly. 
Question 99 
Does Kazakhstan have a process in place for recognizing the equivalence of other countries' 
food safety systems? Is this process throug h which public participation can take place? 
Answer:
 
Food safety:  
The procedure of equivalency recognition is conduc ted upon request of an exporting country through 
bilateral consultations and negations . According to the results of those meetings, Kazakhstan takes the 
decision on conclusion of a bilateral agreement on  recognition of sanitary measures of exporting 
countries as equivalent.  WT/ACC/KAZ/66 
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  - Animal health:  
In accordance with the paragraph 18 Article 8 of  the Law "On Veterinary" Kazakhstan recognizes 
equivalency of veterinary measures of other countr ies if those measures ensure appropriate level of 
protection established on the territory of Kaza khstan. The decision on equivalence recognition is 
under the competence of the state veterinary authorit y and its branches. If veterinary measures of the 
exporter guarantee the appropriate level of protection of animal and human then they are accepted by 
Kazakhstan on the basis of veterinary certificate wh ich verifies conformity of imported products and 
raw materials of animal origin to the veterinary  requirements of Kazakhstan. The veterinary safety 
requirements (except those that can be consumed without processing) are reflected in the regulatory 
legal acts in the sphere of veterinary . These documents are publicly available. 
- Plant Health:  
In accordance with the Law "On Plant Quarantine" , Kazakhstan shall recogni ze as equivalent the 
phytosanitary systems of other countries if they ensure appropriate level of protection on the territory of importer.  
The phytosanitary requirements are set forth in th e regulatory legal acts in the sphere of plant 
quarantine. The public is entitled to put forward pr oposals to the consideration of the authority on 
plant quarantine. 
Question 100 
How are SPS rules/regulations establishe d? Is there a process through which public 
participation can take place? 
Answer:
 
- Food safety:  
1.  State sanitary epidemiological standardization includes:  
− development of common requirements for s ubstantiation of normative legal acts and 
control for their development; 
− development (modification), expertise, a pproval, and publication of normative legal 
acts; and 
− formation and administration of a single data  bank of regulatory legal acts in the field 
of sanitary epidemiological welfare of population.  
2.  The documents of standardization of the sanitary and epidemiological state system are 
sanitary rules, hygiene normatives, instructions, instructional guidelines and other documents.   
3.  Sanitary rules, hygiene normatives shall be  subject to compulsory execution for all natural 
and juridical persons operating on the terr itory of the Republic of Kazakhstan.  
4.  In the course of development and approval of  regulatory legal acts pertaining to the issues of 
sanitary epidemiological welfare of population, governmental agencies shall agree them with 
the authorized body on sanitary and ep idemiological welfare of population. 
5.  Sanitary rules, hygiene normatives of normativ e-technical nature shall not be subject to state 
registration. WT/ACC/KAZ/66 
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  - Animal health:
 
Rules/regulations of SPS measures for animal product s are established by an authorized body in the 
field of veterinary. Thus, in accordance with items 6, 7 and 19 of Article 8 of  the Law of the Republic 
of Kazakhstan "On Veterinary" an authorized bod y in the field of veterinary has the following 
jurisdiction items:  
− development and approval of ve terinary measures, veterinary rules and normatives, veterinary 
accounting instruments, other normative legal acts in the order established by the legislation of the Republic of Kazakhstan;  
− implementation of temporary veterinary measures in cases when scientific argumentation of 
exporting country is not sufficient based on th e available proper information, including 
information obtained from Inte rnational organizations; and 
− arrangement of protection of the territory of  the Republic of Kazakhstan from entering and 
spreading of infectious and exotic diseases of animals from other states.  
- Plant Health:
 
Rules/regulations of phytosanitary measures for crop products are established by the authorized body 
in the field of plants quarantine in accordance with Article 7 of the Law of the Republic of 
Kazakhstan "On Plant Quarantine" jurisdiction of which includes:  
− development, approval and agreement of nor mative and instructional guidelines in the 
established order;  
− specification of the List of Items Subject to  Plant Quarantine Measures, to which state 
measures on plants quarantine are established and implemented; 
− arrangement of the protection of the territory of the Republic of Kazakhstan from entering or 
integral permission of quarantine objects from foreign countries or quarantine zones; and 
− conduction of state control for compliance to the law and abidance by rules and 
implementation of measures on plants quarantine on the territory of the Republic.  
It is provided by the Law of the Republic of Kazakhstan "On Private Entrepreneurship" that 
participation of the private sector in the expertise of regulatory legal acts, affecting the interests of 
private entrepreneurship, through the councils estab lished under central and local executive bodies is 
one of the basic of principles of the government regulation.  
The public has the right to make appropriate propo sals for consideration of an authorized body on 
plants quarantine in accordance with aforecited draft.   
WTO members will also have the right to submit proposals and comments through the Inquiry Point 
on TBT and SPS measures.  
Question 101 
Does Kazakhstan have surveillance programs on an imal and plant pest/diseases?  If so, what 
pests/diseases? 
Answer:  
- Plant health:  
To the effect of forecasting or detecting of dangerous special blasts/plant diseases the Department of 
phytosanitary control arranges harmful quarantine organisms monitoring. The monitoring of harmful  WT/ACC/KAZ/66 
 Page 127 
 
 
  quarantine organisms is held directly by the sp ecialists of RGP "Phytosanitary", and by state 
inspectors of regional, city and district territorial administrations on phytosanitary control of the Ministry of Agriculture of the Republic of Kazakhstan.    
Inspections are made for detection of the followi ng blasts/plants diseases: American white butterfly, 
eastern fir seed moth, Californian parlatoria, Capr idae beetle, Colorado potato beetle, phylloxera, 
coccid Komstok, caryopsis, ragweed, richweed pere nnial, bitterling, nightshade (coracoid), field 
dodders. 
Monitoring program is implementing within th e framework of budget program 004 "Phytosanitary 
Control", sub-program 101 "Detection, Localization and Liquidation of Hotspots Quarantine Blasts, 
Plant Diseases and Weeds".  Annual amount of fund ing provided for these measures is about KZT 43 
million. 
Monitoring regulation is performed by the authori zed body on phytosanitary control (Department of 
phytosanitary control). 
- Animal health:
 
Surveillance program of animal diseases throughout the territory of the Republic of Kazakhstan has 
been established, special veterinary laboratory has b een carrying out the epizootic control to the effect 
of forecasting of arising of dangerous special animal s and birds diseases, as well as for undertaking of 
timely measures on their prevention, localization and liquidation.  
Monitoring program has been implemented with in the framework of budget program 018 "Ensuring 
epizootic welfare" and sub-program 102 "Diagnostics of  animal diseases". Monitoring results are used 
for the development of vaccination strategy on dangerous specific animal and bird diseases and 
compilation of epizootic map and anticipations.    
Inspections are made for detection of the following  animal diseases:  rabies, goat fever, Aujeszki's 
disease, leucosis, leptospirosis, listeriosis, hemorrhagic septicemia, Siberian plague, (except for 
ascolization of raw hide), tuberculosis, foot-and-m outh disease, pox, echinococcosis, paratuberculosis, 
toxpoplasmosis, trychphytia, rikketsial diseases, Franci s disease, vesicular stomatitis (exotic disease), 
epidemic vomiting, rednose, parainfluenza-3, cattle -plague, blackleg, campilobacteriosis, spongiform 
encephalopathy, infectious laryn gotracheitis, Newcastle disease, Ma rek's disease, Gamboro's disease, 
birdpox, parrot disease, respiratory mycoplasmosi s, highly-pathogenic bird influenza, nodular 
dermatitis (exotic disease), clamidiosis (enzootic) sheep abortion, anaerobic sheep enterotocsemia, 
bradsot, infectious epididymitis of stags, contagi ous pustular dermatosis (ecthyma), clamidiosis sheep 
abortion, infectious agalactia of sheep and goats , scrapie, maedi-visna, adenomatosis, bluetongue 
(exotic diseases), plague of small ruminants, infec tious anemia, equinia, influenza, rhinopneumonia, 
infectious encephalomyelitis, African horse sickn ess (exotic disease), epizoo tic lymphangitis, camel 
plague, classical plague, lymphangitis, erysipel as, vesicular disease, T eshen's disease, viral 
transmissible gastroenteritis, African plague (e xotic diseases), viral hemorrhagic myxomatosis, 
myxomatosis, zoophagous plague, hemorrh agic carp septicemia, opisthorchosis. 
Question 102 Please describe the organizational framework of you r veterinary regulatory authority, as well as 
relationship between federal authority and the Oblast authorities.  Please describe the same for your plant health regulatory authority.  WT/ACC/KAZ/66 
Page 128  
 
  Answer:
 
- Phytosanitary control:  
The structure of state administration system of phytosanitary control includes:  1. Authorized state phytosanitary body (Phytosanita ry department of the Ministry of Agriculture 
of the Republic of Kazakhstan); 
2. State quarantine institutions, established by th e Decision of the Government of the Republic 
of Kazakhstan: 
− Republican, zone and border quarantine laboratories; and 
− Introductionary Quarantine Nursery for Cereal Crops. 
3. Republican State Enterprise "Phytosanitary"; 
4. branches of state inspection on phytosanitary co ntrol of oblasts, Astana and Almaty cities of 
the Territorial Departments of the Ministry of  Agriculture of the Republic of Kazakhstan. 
5. phytosanitary inspectors of rayon (city)terr itorial administrations of the Ministry of 
Agriculture of the Republic of Kazakhstan.  
6. border checkpoints and posts of phytosanitary control. 
As coordinating authority, Phytosanitary Department  implements its actions in cooperation with other 
structural subdivisions of the Ministry of Agricultu re of the Republic of Kazakhstan, its territorial 
bodies and organizations under supervision as well as regulates the issues regarding phytosanitary 
control.  
- Animal health:
 
The structure of veterinary control includes:  
− Authorized state veterinary body (Veterinary Department the Ministry of Agriculture of the 
Republic of Kazakhstan); 
− Zone subdivisions of state veterinary control on the border and transport with veterinary 
inspection posts; 
− Regional, (capitals, cities of re publican subordination), district territorial subdivisions of an 
authorized state body in the field of veterinary.  
The Veterinary Department implements its actions in combination with other structural subdivisions 
of the Ministry of Agriculture of the Republic of Ka zakhstan, its territorial departments and deals with 
problems of inter-industry coordination and re gulating in the veterinary field.    WT/ACC/KAZ/66 
 Page 129 
 
 
  
Veterinary System of the Republic of Kazakhstan
Ministry of Agriculture, RK
Veterinary Department
South-East 
Administration of State 
Veterinary Supervision 
of Frontier and 
TransportNorth-West 
Administration of State 
Veterinary Supervision 
of Frontier and 
TransportNational Reference Centre for 
Monitoring and Laboratory 
Diagnostics and Veterinary 
Methodology, SENational Veterinary 
Laboratory, RSCENational Anti-
epizootic Group, 
RSCE
Oblast branches Oblast, regional branches Oblast Departments Oblast Departments
Border veterinary check-pointsBorder veterinary check-pointsRayon diagnostic centres
Veterinary divisions of 
governmental bodiesGovernmental 
veterinary organizations 
of local executive 
bodiesLegal entities and 
natural persons engaged 
in business activityVeterinary departments 
of MA RK rayon (city) 
territorial departmentsVeterinary departments of 
MA RK oblast, Astana 
and Almaty cities 
territorial administrations
Veterinary inspectors 
at marketsVeterinary inspectors 
in rural areasBranch in Almaty
-subordinate
- under control
 
Question 103 
Question 105: Will newly introduced restrictions and legislation be open for comment before 
implementation? All draft, prop osed, amended and final SPS and agriculturally related TBT 
regulations, including those for agricultural biot echnology products, should be published in one 
official journal.  Kazakhstan requires earl y publication of notifications on planned 
implementation of a concrete measure for inform ation purposes and to allow sufficient time for 
the submission of comments. However, per th e WTO SPS Agreement, notifications shall take 
place at an early stage, when amendments ca n still be introduced and comments taken into 
account. 
Answer:  
All draft regulatory legal acts, amended and fi nal versions of SPS rules and TBT regulations 
regarding agriculture for studying and comment s before adoption are placed on the web-sites 
www.minagri.kz, www.memst.kz and in periodicals. Besides, noted above, all regulatory legal acts 
shall pass through the expertise of e xpert council on entrepreneurship.   
As for notifications which shall be directed on the initia te stage, we inform that to this effect there has 
been elaborated state (national) standard "Rul es and procedures of notifications preparation on 
elaborating (adopting) technical regulations and standards" has been adopted.  It provides for 
submissions of notifications on sanitary and phyto sanitary measures and technical regulations under 
elaboration on the initial stage through the WTO Secr etariat in accordance with rules and procedures 
stated in Annex B of SPS Agreement, Article 10 of TBT Agreement, Recommended Procedures For 
Implementing the Transparency Obligations of  The SPS Agreement (Article 7) (document WT/ACC/KAZ/66 
Page 130  
 
  G/SPS/7/Rev.2 of 2 April 2002), Decisions and R ecommendations Adopted by the Committee Since 
1 January 1995 (document G/TBT/1/Rev.7 of 28 November 2000). 
Question 104 
Question 106: It appears that in order to receive permission to import, traders must first receive 
permission from the "Oblast subdivision of th e authorized body".  Why are import permits 
handled by the local authorities? Does a vet erinary certificate to be issued before the 
"authorized body" gives permission to import? This appears to be an additional barrier to 
imports.  
Answer:
 
To obtain permission to import, entrepreneur (trade  company) must apply to Veterinary Department 
(senior veterinary inspector of the oblast) of the Oblast Territorial Division of the Ministry of 
Agriculture of the Republic of Kazakhstan particular ly where the imported goods is expected to be 
placed and used.  That is because that the epizoo tic and veterinary-sanitary  condition is under control 
of the Senior State veterinary Inspector of corresponding oblast and it is also for convenience of entrepreneurs.   
On the basis of the information received from OI E about the epizootic situation of the country-
importer, Senior State veterinary inspector of the oblast in accordance with Article 16 of the Law of the republic of Kazakhstan dated 10 July 2002 No. 339-II "On Veterinary", determines possibility of 
import of the requested goods (freight), regulates c onditions and route of the shipment and issues 
veterinary-sanitary requirements to import a nd transportation of a specific shipment.  
On the grounds of the entrepreneur's application st ate veterinary inspector of the oblast forwards a 
request for import to the authorized  body on veterinary (in this case - Veterinary Department of the 
Ministry of Agriculture of the Republic of Kazakhs tan) taking into account the results of coordination 
on the first stage.  The request for import is to be  reviewed in five days and the positive decision or 
justified refusal is taken and the addr essee is informed by telephone message. 
Thus, to receive permission to import of goods from the authorized body on veterinary prior to receipt 
the veterinary certificate is not necessary.  The i ssuance of the veterinary certificate which confirms 
the implementation of the above-men tioned veterinary-sanitary requir ements of the importing country 
by the trader and State Veterinary Service of the country of the importing country that guarantees veterinary-sanitary safety of the goods takes plac e on the territory of the exporting country upon 
actual importation of goods.  
Three forms of veterinary certificates are approved:  No 1 – for animals; No 2 – for food and animal 
origin products; No 3 – for technical products of an imal origin, and also fodder and fodder additives. 
In accordance with this, during importation of goods   at frontier point the frontier point state 
veterinary inspector, instead of veterinary certif icate of the exporting country, issues a veterinary 
document valid only on the territory of Kazakhstan, since only a certification document of recognized 
from in the State and Russian languages is valid on the territory of Kazakhstan.  In the course of 
exportation from Kazakhstan, down to the state bor er, the goods are accompanied by the certification 
document of one of the above-mentioned-forms which during passing the border checkpoint is 
replaced by veterinary certificate valid outside Ka zakhstan (excluding the goods transported to the 
territory of CIS countries – members of inte rgovernmental agreement on veterinary).   WT/ACC/KAZ/66 
 Page 131 
 
 
  Question 105 
What is the purpose of the local veterinary insp ector reissuing the vet certificate to replace the 
foreign certificate? What means are in place to ensure foreign product is then not relabelled as 
Kazakhstan product? 
Answer:  
According to Rules of veterinary documents issued by veterinary inspectors approved by the Order of 
the Minister of Agriculture of the Republic of Kazakhstan No. 372 of 15 November 2002, the only 
(internal) veterinary certificate is valid fo r applying on the territory of Kazakhstan.  
To prevent the spread of infectious diseases of an imals and mutual protection against epizootics, and 
also reasoning from interests of successful devel opment of economic and tr ade connections among 
countries on 12 March 2003 the States-Heads of ve terinary services of CIS countries signed the 
Agreement of Cooperation in the Veterinary Field (furthering referred to as Agreement). 
Article 14 of the Agreement says that upon importati on of goods subject to state inspection, Parties 
use the same veterinary requirements and veterinary certificates.  
The main reason of replacement of the foreign certificate by the internal veterinary certificate is the 
fact that a cargo arriving to the border or point of destination is accompanied by the certificate in the 
language of the exporting country. 
The procedure of the replacement of foreign vet cer tificate is described in Article 7.5 of the Common 
Rules of State Veterinary Inspection of Internati onal and Interstate Trans portation of animal cargoes 
(approved by Intergovernmental C ouncil for Cooperation in Veterinary Sector of CIS countries dated 
5 November 2003 signed in Kiev), which says that re gistration of veterinary certificate in exchange 
for foreign certificate is carried out only on the cond itions that the freight is undergone full veterinary 
inspection and customs clearance.  In the veterinary certificate issued by state veterinary inspector of 
border checkpoint there shall be indicated the number a nd date of permit of Senior State Inspector of a 
CIS country for importing the cargo under control and the order of its sale or special instructions 
about the conditions of its usage is mentioned as we ll since during transportation within the country 
the good can change its characteristics. 
Besides, Instructions about Issuance of veteri nary documents for goods under control of State 
veterinary inspection (approved by Intergovernmental  Council for Cooperation in veterinary sector of 
CIS countries dated 22 October 1998 in Tashkent) it is  mentioned that for the goods imported into the 
country veterinary inspectors on the border issu e veterinary certificates replacing veterinary 
certificates of the exporting country.  
Further as the imported goods are delivered to the point  of destination, they are under control of state 
inspector of the territory for the period of their intended use (sale, processing), and that is why the 
replacement of the label, marking, packaging of  the foreign goods by Kazakh ones is excluded.  
During export from Kazakhstan, upon arrival to the border, the goods are accompanied by (internal) 
veterinary certificate which after passing the border point of veterinary control is replaced by the 
veterinary certificate of the recognized form in the English, State and Russian languages, which is 
valid outside the territory of Kazakhstan.  
The procedure of replacement of foreign vet certifi cate by Kazakhstan vet certificate is free of charge 
and does not present an obstacle to international trade. WT/ACC/KAZ/66 
Page 132  
 
  Question 106 
Regarding harmonization, specifically what kind of technical assistance is requested? 
Answer:
 
Kazakhstan requests technical assistance for bri nging the existing system on veterinary and 
phytosanitary control to compliance with internati onal requirements and also assistance for renewal of 
material resources of laboratories and staff training.   
Besides assistance in translating international nor ms on product safety into the Russian language is 
needed.  
Question 107 
Concerning the Action Plan for SPS Implementation, WT/ACC/KAZ/61: 
We thank Kazakhstan for its additional information on implementing the provisions of the 
WTO Agreement on SPS. 
We are pleased to understand that an enquiry point exists.  Could you indicate where it is and if 
it is operational? 
Answer:  
The SPS/TBT Single Inquiry point has been functioning since January 2005 and it is located at the 
following address: 
104/1 Auezov street 
473000, Astana 
Republic of Kazakhstan  
Tel.:   +7 3172 320641 
Fax.:  +7 3172 323275 
e-mail: inform@memst.kz 
  int_rel@memst.kz 
The corresponding notification about the Inquiry Point forwarded to the WTO Secretariat in 
February 2004 is contained in documen t G/SPS/ENQ/18/Add.1 dated 3 March 2005. 
Question 108 What are priority products referred to in Roma n II? Are these products for export? Are they 
products that they are concerned about domestically? 
Answer:
 
In accordance with the Action Plan in 2005, multifunctional reference-laboratory at Republic 
Sanitary-Epidemiologic station has been established.  To this end, 38 units of laboratory equipment 
were purchased. The new laboratory equipment was purchased based not on priority of products but 
for analysis of the whole range of food products. With  this regard, this issue is no longer critical for 
Kazakhstan.   WT/ACC/KAZ/66 
 Page 133 
 
 
  Question 109 
Roman numeral II 4 describes development of new standards and norms in the next few years. 
Does this include the adoption of internationa lly accepted (OIE, IPPC, Codex) standards or 
norms? Any standards and norms developed that are more restrictive than those internationally 
accepted ones must have scientific justificatio n. Regional standards and norms, e.g., those 
developed by the EU, are not always WTO consistent.  
Answer:  
New standards shall be elaborated in accordance w ith requirements of international standards and 
provisions (OIE, IPPC, Codex). The scientific justifi cation is the main requirement in the course of 
development of the new standards.   
In accordance with State Program of Development and Reformation of Healthcare System for 2005-
2010, the standards must comply with the WTO provisions.  
Question 110 
As regards Table (1) of WT/ACC/KAZ/58 - La w: "On Changes and Amendments into the 
Legislation of the Republic Kazakhstan on Separati on of Authorities between the Levels of State 
Governance and Budget Relations", please specify: 
What is the reason for such high requirements (above the international standards) for 
importers from other countries? 
Answer:  
With the adoption of the Law of the Republic  of Kazakhstan No. 13-III "On Amendments and 
Addenda to Legislative Acts of the Republic of Kazakhstan on Separation of Authorities between the 
Levels of State Governance and Budget Relations " of 20 December 2004, the following amendments 
and addenda have been introduced to the Law  "O n Plants Quarantine" and the Law "On Veterinary" 
with the purpose to bring them into full conformity with the requirements of the SPS agreement: 
Provisions of the 
SPS Agreement Law "On Plants Quarantine" Law "On Veterinary" 
 Article 4. Members shall 
accept the sanitary or phytosanitary measures of 
other Members as equivalent, 
even if these measures differ from their own or from those 
used by other Members trading 
in the same product, and if the exporting Member 
demonstrates objectively to the 
importing Member that his measures achieve appropriate 
level of sanitary or 
phytosanitary protection of the importing Member.  Article 8.18. Competence of the 
State authorized veterinary body and its territorial units shall cover 
acceptance of the equivalency of 
veterinary and sanitary measures of other countries, if such measures 
guarantee an appropriate level of 
safety on the territory of the country.  
 WT/ACC/KAZ/66 
Page 134  
 
  Provisions of the 
SPS Agreement Law "On Plants Quarantine" Law "On Veterinary" 
Article 5.7.  In cases where 
relevant scientific evidence is 
insufficient, a Member may 
temporarily adopt sanitary or 
phytosanitary measures on the 
basis of available pertinent information, including that 
from the relevant international 
organizations as well as from sanitary or phytosanitary 
measures applied by other 
Members. Article 8.1-1. The state inspectors of 
the authorized body when 
conducting quarantine control shall 
be entitled to apply (impose) 
temporary quarantine measures to 
products subject to quarantine imported from other states, in cases 
when scientific evidence on the basis 
of the available information, including that from the relevant 
international organizations as well as 
from phytosanitary measures applied by other countries, is insufficient. Article 8.19.  
Competence of the State authorized 
veterinary body and its territorial 
units shall cover identification of 
territories, or parts thereof, that are 
free from diseases, or have minor dissemination of diseases, carrying 
out control over traffic of goods 
exported from these territories, providing confirmations to the 
importing country, and ensuring 
access to its representatives with the purpose of carrying out inspections 
of these territories. 
Article 6.  Members shall, in 
particular, recognize the concepts of pest- or disease  
free areas and areas of low pest 
or disease prevalence. Article 7.5. The authorized agency 
shall perform quarantine inspection, laboratory tests and phytosanitary 
certification of imported and 
exported products subject to quarantine based on phytosanitary 
characteristics of the area, place of 
origin and destination, as well as pest-free areas or areas of low pest 
prevalence Article 8.20. Competence of the 
State authorized veterinary body and its territorial units shall cover 
introduction of temporary veterinary 
measures in cases, when scientific evidence of the exporting country 
on the basis of the available 
pertinent information, including the information, received from 
international organizations, is 
insufficient. 
 
No additional measures ensuring a higher level of sanitary and phytosanitary protection than the 
international standards, taking into account the risk assessment, have been introduced into the above 
mentioned Law. 
Question 111 How the analysis of risk originating from imported products is provided? 
Answer: 
 
1.  Food safety Risk assessment is conducted upon the request of government authorities, including government 
bodies on sanitary-epidemiological control and judici al authorities, as well as public associations, 
entrepreneurs, juridical and natural persons. 
Within the framework of their authority, the government bodies on sanitary-epidemiological control 
organize risk assessment, i.e. set a task to carry ou t the research/study on ri sk assessment with clear 
indication of objectives and missions. 
Risk assessment shall be carried out in accordance with established pr ocedures by  public institutions, 
which represent integral part of the bodies of sanita ry-epidemiological services (including:  republican 
sanitary-epidemiological stations, centres for sanitary -epidemiological expertise, republican scientific-
research organizations, conducting activities in the sphe re of sanitary-epidemiological welfare of the 
population, state anti-plague institutions) (hereinaft er – bodies of sanitary-epidemiological services).  WT/ACC/KAZ/66 
 Page 135 
 
 
  The bodies of sanitary-epidemiological services s ubmit detailed report on conducted research and 
expert conclusion, which shall be supported with  substantiation of results and recommendations in 
accordance with the targeted objective and missions. 
Government bodies on sanitary-epidemiological contro l on the basis of the reports and conclusions 
issue sanitary-epidemiological conclusion. 
Risk assessment shall be carried out  according to the following stages: 
− hazard identification: (identification of potential harmful factors, assessment of the 
relationship of the factors in question and de terioration of human health, sufficiency and 
reliability of available information as to wh ether contaminant levels are caused by the 
substances under analysis; form a list of priority  chemical substances that are subject to the 
subsequent description); 
− assessment of "dose-response" dependence: re velation of quantitative relationship between 
data on human health a nd level of expositions; 
− analysis of the influence (expositions) of chem ical substances on human health conditions: 
characteristics of contaminant sources, routs of movement of contaminants from the sources to human body; pathways and points of influen ce, determination of doses and concentrations; 
that will have impact in the future; identifi cation of exposition levels for population in the 
whole and individual sub-populations, including supersensitive groups; and 
− characteristics of the risk:  analysis of all available data, calculation of risks posed to 
population and its individual sub-groups; compar ison of risks with the tolerance levels, 
comparative analysis and ranging of various risks according to their statistical, medical, 
biological and social significance, identification of medical priorities and those risks that must 
be prevented or reduced to the acceptable level. 
Interested parties can submit their comments on risk assessment via notification procedures 
established by the WTO Secretariat or the SPS/TBT Inquiry Point. 
2.  The phytosanitary risk analysis is determ ined as the "process of biological and economic 
scientific assessment of a pathogenic organism ai med to determine if such organism should be a 
subject to phytosanitary measures, and how strict the phytosanitary measures should be taken against 
it" in the text of the International Convention for Plant Protection revised in 1997. 
The risk assessment analy zes the possibility of a pathogenic organism to penetrate and acclimatize in 
a natural habitat (in Kazakhstan) exposed to danger, as well as the potential economic damage for this 
region. Assessment of the phytosanitary risk re duction allows to select specific phytosanitary 
(quarantine) measures in accordance with the biological features of the quarantined species and the 
ways of its infection and spread.  
The phytosanitary risk analysis in cludes three phases:  preparatory, ph ytosanitary risk assessment, and 
assessment of the phytosanitary risk reduction. 
The preparatory phase includes identification of the pa thogenic organism or determination of its ways 
of spread for which the phytosanitary  risk analysis will be carried out. 
During the second phase (phytosanitary  risk assessment) the pathogenic organism is to be studied 
individually with the purpose of determination of it's conformity with the criteria of quarantine 
species.  At this stage an assessment of a phytosanitary risk of the specific pathogenic organism for 
the territory of Kazakhstan (probability of pe netration, acclimatization, and potential economic 
damage) is carried out. WT/ACC/KAZ/66 
Page 136  
 
  The third phase (assessment of the phytosanitary ri sk reduction) aims at assessing potential of the 
phytosanitary measures to reduce the risk from the specific quarantined pathogenic organism and 
determine the necessary phytosanitary measures.  Phyt osanitary measures are used with the purpose to 
reduce the risk of entry of a pathogenic organism through the pathways revealed in the course of the 
phytosanitary risk assessment. 
For the phytosanitary risk assessment, the authori zed body on plant quarantine invites scientists from 
plants protection research institutes, who develop quarantine measures based on scientific principles 
of phytosanitary risk assessment with due c onsideration of international standards and 
recommendations. 
This work has been included into the action plan of  the Ministry of Agriculture of the Republic of 
Kazakhstan for 2005-2007 under the secti ons on pests, plant diseases and weeds. 
3.  Risk analysis has important place in trade in animals, processed and raw products originated 
from animal and other goods subject to veterinary control; and as well as in movement and utilization 
of the above mentioned substances, which potentia lly may carry hazard caused by diseases, harmful 
toxic substances threatening the epizootic welfare and food safety. 
The risk assessment shall be undertaken upon the re quest of state authorities, including central and 
local bodies of the state veterinary services, judicial  authorities, and public associations, juridical and 
natural persons. 
State veterinary authorities within their co mpetence organize risk assessment and request 
organizations under their supervision (the Stat e Institution "National Ce ntre for Reference, 
Monitoring and Veterinary Diagnosis" with its bran ches, the State Enterprise "Republican Veterinary 
Laboratory" with its branches, republican scientific  research institutions, regional branches of state 
veterinary control on the border and transport and local bodies of state veterinary) to conduct research. 
The process of risk analysis includes the following components: 
− Hazard identification – identification of pa thogenic organisms, contaminants and toxic 
elements in products; 
− Risk determination – determination of lik elihood as well as biological and economic 
consequences caused by entry and spread of pathogenic micro-organisms, toxic and harmful substances; 
− Risk management – determination, selection and conduct of measures to be undertaken to 
reduce the risk as well as monitoring and inspec tion as to whether those measures do achieve 
the required  results; and 
− Notification of risk – mutual and periodical ex change of information about risk between the 
experts which carry out the risk assessment and the officers responsible for risk management 
and all other interested parties. 
The analysis of the veterinary and sanitary risk  shall be conducted in accordance with the national 
veterinary legislation taking into  account relevant recommendations of the Terrestrial Code of the 
OIE, and requirements of the SPS Agreement. 
Following the results of the research and risk assessment, the veterinary bodies shall submit the 
reports and laboratory tests, based on which th e conclusion on the use of the good is made.  WT/ACC/KAZ/66 
 Page 137 
 
 
  Question 112 
Whether import permits will be required only for products already tested  against the elevated 
risk or for every product. 
Answer:  
Permits are required for importation of  all goods that are subject to the state veterinary and quarantine 
inspection. 
Pursuant to Article 20 of the Law "On Veterinary" the goods subject to the state veterinary control 
transported through the national boarder of the Republic of Kazakhstan shall be subject to the 
mandatory state veterinary inspection.  
Goods that are subject to the state veterinary in spection include animals, products, raw materials of 
animal origin (meat and meat produc ts, milk and dairy products, fish  and fish products, eggs and egg 
products that are not used for food without sp ecial processing as well as apiculture products), 
veterinary medications, fodder and feeding additiv es. List of goods subject to State veterinary 
inspection with codes specification was enclosed  in Annex XV of document WT/ACC/SPEC/KAZ/9.  
Import and transit of goods subject to the state vete rinary inspection from the countries that are safe in 
terms of epizootic situation sha ll be permitted into and through the territory of the Republic of 
Kazakhstan with consideration of the veterinary (veterinary and sanitary) regulations established by 
the state authorized veterinary body.    
Import, export and transit of goods subject to the state veterinary inspection shall be carried out in 
accordance with the assessment of  the epizootic situation in corresponding territories.  
According to the Rules on Protection of the Terri tory of the Republic of Kazakhstan from Pests, 
adopted by the Government Resolution No. 773 of 1 August 2003, any goods subject to plant 
quarantine control shall be allowed for importation to the Republic of Kazakhstan only through the 
checkpoints at the state border of the Republic of Kazakhstan, which have phytosanitary posts 
equipped in accordance with the plant quarantine ru les and norms.  The following documents shall be 
provided: 
− import quarantine permits of the authorized plant quarantine body; and 
− phytosanitary certificates of the national quarantine services of exporting countries.    
Import quarantine permits are issued on the basis of written applications of juridical and natural 
persons for the specific shipment of produc ts subject to plant quarantine control. 
To obtain the permits, juridical and natural persons not later than  30 days prior to importation or 
within five days prior to transit through the terr itory of Kazakhstan shall submit to the authorized 
body the application with the following information: 
− Purpose of the importation (transit) of a good subject to plant quarantine control and its 
quantity with specification of the form and type of packaging of the cargo; 
− Destination and purpose of use of a good (address,  and for transits – route and country of 
destination); 
− Name of the exporting countries from which the im port or transit is supposed to arrive as well 
as name of the country of origin of the good subject to plant quarantine control; 
− Approximate date of arrival of an imported good or good in transit; and WT/ACC/KAZ/66 
Page 138  
 
  − Name of the border check point (post) thr ough which the good subject to plant quarantine 
control is supposed to pass. 
In the application for receipt of import quaran tine permit for the import and transit of the goods 
subject to quarantine control, the applicant shall guarantee conducting necessary quarantine measures 
at his/her own costs.       
The Nomenclature of Basic Products Subject to Quar antine, which is subject to Phytosanitary Control 
on Plant Quarantine, approved by the Order of th e Minister of Agriculture of the Republic of 
Kazakhstan No. 166 of 30 May 2002 is availa ble through document WT/ACC/KAZ/66/Add.1. 
- Trade-related investment measures  
Question 113 Please provide the Working Party with а сору  of Presidential Decree No. 1096 of 17 Мау  2003.  
Please also provide the Working Party а сору  of Government Resolution No. 969 of 
16 September 2004, the draft law "On Produc tion Sharing Agreement in Offshore Oil 
Operations."  
Any consideration of а transition plan for fully implementing the TRIMs obligations can only 
occur if Kazakhstan provides а detailed action plan.  
The brief response given by Kazakhstan in WT/ACC/KAZ/57 and WT/ACC/SPEC/KAZ/9 is 
inadequate.  
Short of а commitment to fully abide by the TRIMs obligations from the date of accession, 
Kazakhstan needs to provide а detailed action plan for consideration by the Working Party. 
We seek a commitment from Kazakhstan that fr om the date of accession it will not have 
measures in place or operating that are in conflict with the WTO Agreement on TRIMS.  
Answer:
 
1. Investment Contracts on Subsurface and Surface Use  
The text of the Decree of the President of th e Republic of Kazakhstan No. 1096 "On Strategy for 
Industrial and Innovation Development of th e Republic of Kazakhstan for 2003-2015" of 
17 May 2003 is available through document WT/ACC/KAZ/66/Add.1. 
The text of the Resolution of the Government of  the Republic of Kazakhstan No. 969 "On Draft Law 
of the Republic of Kazakhstan "On Production Shari ng Agreements in Offshore Oil Operations" of 
16 September 2004 is available thr ough document WT/ACC/KAZ/66/Add.1. 
The text of the Law of the Republic of Kazakhs tan No. 68 "On Production Sharing Agreements in 
Offshore Oil Operations" of 8 July 2005 is av ailable through document WT/ACC/KAZ/66/Add.1. 
In accordance with laws and regulations of the Repub lic of Kazakhstan (Article 71 of the Law of the 
Republic of Kazakhstan "On Subsurface and Surface U se", the Resolution of the Government of the 
Republic of Kazakhstan No. 1015 of 31 July 2001, the Government guarantees stability of contracts.  WT/ACC/KAZ/66 
 Page 139 
 
 
  According to Article 43 of the Law of the Republic  of Kazakhstan "On Subsurface and Surface Use", 
the exploration contract could be  concluded for the term of up to six years.  The term of the 
exploration contract can be renewed twice with  the duration of each term up to two years.  
The mining contract could be concluded for the term up to 25 years, and in the fields with large and 
unique reserves of mineral products up to 45 years.  The terms of the contract can be renewed 
provided that an investor applied for prolongation not later than 12 months prior to expiration date of 
the contract.  
The contracts for combined exploration and extrac tion works could be concluded for the term, which 
includes both exploration and extraction contracts term s with the possibility of further prolongation.  
Contracts on subsurface and surface use stipulate commi tments of investors to use goods produced in 
Kazakhstan subject to their compliance with state an d/or international standards, the volume of which 
is specified in percentage terms (from 15 per cent up to 80 per cent).  
To the moment, 33 contracts on subsurface and surface use have been concluded, containing 
commitments on the part of investors to use goods  produced in Kazakhstan in implementation their 
investment contracts.   
Besides, according to the results of tenders conducted in 2005, it is planned to conclude this year 150 
contracts, which contain commitments of investor s to use goods produced in Kazakhstan subject to 
their compliance with state and/or international standards.  
2. Contract on Automobile Assembling Industry Development  
To facilitate development of automobile assembli ng industry in Kazakhstan, the Resolution of the 
Government of the Republic of Kazakhstan No. 220 of 24 February 2004 introduced changes to the 
criteria of sufficient processing for automobile produ ction. The resolution stipulates gradual increase 
of the value of "local" content in the price of the final product. 
In particular, the Government Resolution sets the cer tain conditions for granting the status of origin 
when using imported goods by such producers. These conditions stipulate that the value of imported 
components and details used in assembli ng shall not exceed the following limits: 
− in the first year of production – 90 per cent in the price of the final good; 
− in the second year of production – 85 per cent in the price of the final good; 
− in the third year of production – 80 per cent in the price of the final good; 
− in the forth year of production – 70 per cent in the price of the final good; 
− in the fifth year of production – 60 per cent in the price of the final good; and 
− in the sixth year of production – 50 per cent in the price of the final good. 
This criteria of sufficient processing is applied only to the goods produced within the framework of 
investment projects implemented by the juridical pe rsons investing into the fixed capital not less than 
KZT 1 billion. 
Currently, the terms of the project on automob ile assembling implemen ted by "AZIA-AUTO" JSC 
met the above criteria. The company received the following preferences until the year 2009:  
− customs duties exemptions for imported spare pa rts into the territory of the free warehouse; 
− the status of Kazakh origin of goods produced in the free warehouse, provided the company 
meets the criteria of sufficient processing; and WT/ACC/KAZ/66 
Page 140  
 
  − customs duty exemptions for importation of au tomobiles from the free warehouse to the rest 
of Kazakhstan. 
It should be noted that from the date of accession to the WTO, laws and re gulations of Kazakhstan 
will not contain "local content" provisions whic h do not comply with the TRIMs Agreement.  
- State-trading enterprises 
Question 114 
This section remains inadequate.  In its notification on state-trading enterpris es Kazakhstan provided information on four state-
owned enterprises, which it considers to be st ate trading enterprises. Separately, Kazakhstan 
has acknowledged that there are about 6,000 state- owned enterprises, some of them involved in 
export-import operations. We believe it likely th at a number qualify as state trading enterprises 
under the criteria set out in Article XVII of the GATT 1994, whether or not "funded by the 
national budget" or operating as monopolies.   
We urge Kazakhstan to review and add to its notification.   We will require a strong commitment in this se ction to ensure that Kazakhstan's state owned 
firms, whether or not identified for notification as STEs, are operated within WTO provisions, 
including Article XVII, on a commercial basis.  
Answer:
 
Kazakhstan provided information on three Stat e-trading enterprises (JSC "Food Contract 
Corporation", JSC "Mal Onimderi Korporatsiyasy", JSC "KazAgroFinance") whose activities may potentially be covered by Article XVII of  GATT 1994 in document WT/ACC/KAZ/51 of 
7 September 2004.  
There are no other enterprises in Kazakhstan, either state-owned or privately-owned, which have been 
granted, formally or in effect, exclusive or sp ecial rights or privileges, including statutory or 
constitutional powers in the exercise of which th eir purchases or sales might influence the level or 
direction of imports or exports. 
-  Free zones, special economic areas  
Question 115 
Kazakhstan's Free zones are authorized by legisl ation that contains provisions for granting 
special benefits contingent on export orientation and/or import substitution of enterprises. This 
violates both the WTO Agreement on Subsidi es and Countervailing Measures and TRIMS.  
The provisions mandating exports should be eliminated.  
Answer:
 
In line with the TRIMs Agreement, the Government of Kazakhstan is currently working in order to 
introduce the amendments into the following legislation:   WT/ACC/KAZ/66 
 Page 141 
 
 
  − The Decree of the President of the Republic of Kazakhstan No 853 of 26 April 2002 "On 
Establishment of Special Econom ic Zone "Seaport Aktau"; and 
− The Decree of the President of the Republic of Kazakhstan of 18 August 2003, "Information 
Technologies Park". 
In both documents the criteria used for granting preferential treatment by words "import-substituting" 
and "export-oriented" will be eliminated and will be replaced with the criteria ensuring 
correspondence of products and services produced  in SEAs to international standards. 
The Resolution of the Government of the Repub lic of Kazakhstan No. 1376 of 26 September 1997 
"On the Regulation of Procedures on Formation and Use of Assets of the Fund for Economical and 
Social Development of Special Economic Area".  In  this document the criteria "export-oriented" will 
be eliminated. 
The Law of the Republic of Kazakhstan No. 2823 "O n Special Economic Zones in the Republic of 
Kazakhstan" of 26 January 1996 .  In this document the criteria "export-oriented" used for granting 
preferential treatment to goods produced within the territories of SEAs will be eliminated.    
Question 116 
We seek a commitment from Kazakhstan that, from the date of accession, Kazakhstan would 
ensure enforcement of its WTO obligations in free zones existing or established within its 
territory, including the prohibition of TRIMS or s ubsidies contingent in law or in fact on local 
content or export performance.  
Please confirm that from the date of accession, an y free zones or other special  economic areas 
authorized in Kazakhstan's legislation will be ad ministered in conformity with WTO provisions, 
and that the Kazakhstan will ensure enforcemen t of WTO provisions in the zones.  
Answer:  
In accordance with Presidential Decree No. 1605 of  6 July 2005, the SEA "Ontustyk" was established 
with the purpose to facilitate diversification of  the national economy through development of the 
textile industry in southern regi on of Kazakhstan, which is specia lized in cotton production, attract 
foreign investors and create jobs. 
 Basic activities in the territory of the SEA "Ontustyk" include the following  
− production of cotton threads and all kinds of yarn;  
− weaving production; 
− finishing-dyeing production; 
− production of final textile products; 
− production of knitted goods; 
− production of knitted slipovers and cardigans and analogous goods;  
− production of outer garment; and 
− production of other garment and accessories. 
The SEA occupies a limited territory of the Republic  of Kazakhstan (200 ha) with a special tax and 
customs duty preferential treatment. WT/ACC/KAZ/66 
Page 142  
 
  Question 117 
Please also confirm that the right of firms to es tablish and operate in these areas will not depend 
on export performance, trade balancing, or lo cal content criteria and that goods produced in 
these areas under provisions that exempt import fr om tariffs and certain taxes will be subject to 
normal customs formalities when entering the res t of Kazakhstan, including the application of 
tariff and taxes.  
Answer:
 
The Law of the Republic of Kaza khstan "On Special Economic Areas"  provided for tax preferences 
and customs duties exemptions. At this stage, four  special economic areas(SEAs), including "Astana – 
New City", "Seaport Aktau", "Informational Te chnologies Park" and "Ontustyk", function in 
Kazakhstan.  The Government of Kazakhstan welc omes participation of foreign companies in the 
SEAs.  The set of criteria  shall be met by both foreign and national companies in order to become 
eligible for tax preferences and customs duty exemptions granted within SEAs.  
The SEA "Astana-New City" was estab lished to facilitate the socio- economic development of the city 
through building high-tech industry, attracting ne w investments, use of advanced construction 
technologies, and building the modern infrastructure. 
The SEA "Aktau Seaport" was established to facilit ate the development of the seaport infrastructure, 
development of auxiliary services that could be pr ovided by the seaport, attracting new investments, 
creating new jobs and introducing modern ad ministration and economic  management methods. 
The SEA "Information Technologies Park" was establis hed to facilitate diversification the national 
economy through production of information technology products and effective use of the country's 
scientific and technical innovation capacity. 
The SEA "Ontustyk" with the purpose to facilitate  diversification of the national economy through 
development of the textile industry in southern regi on of Kazakhstan, which is specialized in cotton 
production, attract foreign investors and create jobs. 
Enterprises operating within the SEAs are entitled to  tax preferences and customs duty exemptions. 
- Tax preferences  
Pursuant to Article 140 (1,2) of the Tax Code, co mpanies operating in special economic areas were 
provided with the following preferences: 
− 100 per cent corporate income tax reduction; 
− zero rate for land tax and property taxes; and 
− VAT exemptions.  
The companies operating in SEAs are entitled to VAT exemptions provided that they:  (i)  were registered with the tax aut horities within the territory of a SEA;  
(ii)  had no branches or other structural units outside the territory of the SEA;  
(iii)  at least 90 per cent of their annual aggreg ate income comprised of the income subject to 
receipt (received) as a result of sale of the goods of own production (services, works) of the following types of activity, which comply with purposes of a SEA:  WT/ACC/KAZ/66 
 Page 143 
 
 
  − design, development, introduction and pilo t-production of software, databases and 
hardware;  
− the development of new informational t echnologies (IT) based on artificial immune 
and neural systems; 
− research and development; 
− production of textile, except for apparel; 
− production of knitted wear; and 
− production of clothing from textile. 
- Customs duty exemptions  
In accordance with Chapter 30 of the Customs Code , a "free customs area" means the customs regime, 
within the borders of a Special Economic Area, under which foreign and K azakh goods were placed 
and used.  Such goods are subject to customs du ties exemption.  When a certificate of origin 
establishing the SEA origin of goods was not availa ble, the goods were considered to be either 
Kazakh (when exported from Kazakhstan) or forei gn (when exported to the rest of the customs 
territory of Kazakhstan).  
The right of firms to establish and operate in SEAs will not depend on export performance, trade 
balancing or local content criteria and that goods produced in these areas under provisions that exempt 
import from tariffs and certain taxes will be subject to normal customs formalities when entering the rest of Kazakhstan, including the a pplication of tariff and taxes.  
- Government procurement 
Question 118 
We seek a commitment from Kazakhstan that it will initiate negotiations for membership  in the 
Agreement on Government Procurement by tab ling an entity offer immediately after its 
accession to the WTO. 
Answer:
 
Kazakhstan is studying the expediency of joining to the WTO Agreement on Government 
Procurement after its WTO accession. 
 
Question 119 
Paragraph 244:  We would like to have a comm itment from Kazakhstan that it will initiate 
negotiations on joining GPA immediately after its accession.  
Answer:  
Kazakhstan is studying the expediency of joining to the WTO Agreement on Government 
Procurement after its WTO accession. WT/ACC/KAZ/66 
Page 144  
 
  V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- SUBSTANTIVE STANDARDS OR PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Trademarks, including service marks 
- Geographical indications, including appellations of origin 
Question 120 We have worked for some time with Kazakhstan bilaterally to address TRIPS deficiencies. We 
look forward to completing this work as soon as possible.  
We are reviewing the new legislation provided and other information in the Action Plan in 
WT/ACC/KAZ/59. We are submitting addition al questions based on our review so far. 
An outstanding issue remains regarding the parity between trademarks and geographical 
indications. 
We appreciate Kazakhstan's answers to the previo usly submitted questions on trademarks and 
geographical indications.  However, the an swer to Question 130 in Document WT/ACC/KAZ/57 
needs further clarification. Kazakhstan was asked if the rights of trademark owners, consistent 
with Articles 16(1) and 24(5) of the TRIPS Ag reement would be protected from confusingly 
similar and later in time geographical indications.  
Kazakhstan answered that misleading geogra phical indications would not be protected. 
Although this answer addresses misleading ge ographical indications, the answer does not 
address the question regarding geographical indi cations that are confusingly similar with 
earlier established and protected trademarks.  
It is important that a trademark/geographical i ndication regime provide priority and exclusivity 
for trademarks and geographical indications, as well as providing parity of treatment between 
trademarks and geographical indications.  
Specifically, would earlier protected trademarks  be protected from confusingly similar and 
later in time geographical indications?  
Answer:
 
The Law of the Republic of Kazakhstan "On Tradem arks, Service Marks and Appellations" (hereafter 
– the Law) provides for protection of geographical in dications owners' rights, who registered them as 
Appellations under Articles 42-44.   
The cases of interference of owners' rights for trademarks and Appellations are stipulated by 
paragraph 5 of Article 19 of the Law. In accordance with this Law, individuals from good faith using 
a trademark, identical or confusingly similar with registered Appellation (ge ographical indication) not 
earlier than before six months before the registrati on date of Appellation, shall preserve the right for 
its further use within the limits, established by th e authorized body, but not less than seven years, 
following the date of registration. Under non-use of trademark or its use under the term of less than 
six months before the registration da te of Appellation, the effect of the trademark shall be terminated 
anticipatorily.   WT/ACC/KAZ/66 
 Page 145 
 
 
  This norm correspond with paragra ph 3 of Article 22 of TRIPS Agre ement, which states, if it is 
allowed by the legislation of the country, or upon the request of the interested party, it is possible to reject or hold invalid the registration of the tr ademark, consisting of or containing geographical 
indication of goods, not originating from the specified  territory, if the use of geographical indication 
in trademark for such goods in member-country misinforms people in  relation to the real place of 
origin.  
Question 121 
Does Kazakhstan require the intercession of a foreign government on behalf of its nationals in 
order for the foreign national to apply and protect its geographical indication?  
Answer:
 
Subject to Article 48 of the Law on Trademarks fo reign persons, foreign juridical entities and persons 
without a citizenship shall enjoy the rights and obser ve obligations stipulated in that Law on an equal 
basis with persons and juridical entities of the Re public of Kazakhstan, until otherwise provided by 
the laws of the Republic of Kazakhstan. 
Subject to paragraph 3 of Article 46 of the Law on Trademarks, foreign entities shall exercise their 
rights as an applicant, trademark and appellation of origin owner through patent attorneys. 
Upon the submission of the request for registrati on of appellation of origin, foreign persons in 
accordance with subparagraph 3 of paragraph 3 of Article 29 of the Law shall submit the document 
proving his right of the foreign applicant for use of  the claimed appellation of origin in the origin 
country.   
- Requirements on undisclosed information,  including trade secrets and test data 
Question 122 
Regarding the response to Question 148 of WT/ ACC/KAZ/57, we seek further clarification, 
therefore, we provide a brief explanation of TRIPS Article 39.3, and ask the question again.  
TRlPS Article 39.3 requires that undisclosed da ta, pertaining to new pharmaceutical and 
agricultural chemical products submitted to government authorities as a requirement for 
marketing approval, be protected from unfair commercial use. One of the most important 
objectives of Article 39.3 is to provide an incen tive to conduct the research  and testing necessary 
for bringing the product to market. Article 39.3 does this by requiring that undisclosed data, the 
generation of which requires considerable effort , pertaining to pharmaceutical and agricultural 
chemical products containing new chemical en tities submitted to government authorities as a 
requirement for obtaining marketing approval, be protected from unfair commercial use. 
One of the more important aspects of Article 39.3 is the concept that this data must be protected  
from unfair commercial use. When granting ma rketing approval, certain data is inevitably 
disclosed by a government, which subjects such data to unfair commercial use.  
To help protect this data against unfair commerc ial use, we believe that governments need to 
provide an effective period of time where the or iginal person that has expended the time, effort 
and resources to develop the data, is given a peri od of data exclusivity, during which time a 
third party cannot utilize the innovator's data. G overnments need to ensu re that during this 
period of data exclusivity, no other compet itor or generic manufacturer can rely on the 
originator's data to seek marketing approval.  WT/ACC/KAZ/66 
Page 146  
 
  Therefore, to fulfil the obligation of Article 39.3,  governments must have laws or regulations in 
place to make sure that generic companies are prohibited from relying on the data of the 
originator, without its consent, for the marketing of subsequent versions of  the drug during the 
period of exclusivity.  
Based on this background, we need to know whether Kazakhstan's legislation prohibits a 
second applicant (the generic manufacturer, for exam ple) from relying on, or from referring to 
the original data of the first applicant, when a pplying subsequently for market authorization for 
his own product? In other words, does a second applicant have to provide to the responsible 
authorities the same data on safety and efficiency  for his own product as the first applicant? If 
this is not the case, how is this particular obligation of the TRIPS Agreement implemented in 
Kazakhstan's legal framework?  
Answer:
 
Article 34 of the Patent Law provides that disclosur e of the subject matter of an industrial property 
without the author or applicant's consent before  the publication of information about such an 
industrial property shall entail accountability/res ponsibility under the laws of the Republic of 
Kazakhstan. 
Article 126 of the Civil Code of the Republic of  Kazakhstan protects the information that is 
confidential or secret, when the information has an actual or commercial value because it is a secret to 
third parties and it is not readily accessible on le gal grounds and the information owner takes 
measures to keep it secret, including protection of test or other data, the origination of which involves a considerable effort, therefore guaranteeing protection of all such data against unfair commercial use.  
Also, subject to paragraph 1 of Article 184 of the Criminal Code of the Republic of Kazakhstan, illicit 
use of copyrighted works and works covered by rela ting rights, illicit use of an invention, industrial 
design or model, disclosure without consent of an author or an applicant of the subject matter of a scientific discovery, invention, industrial design or model prior to its official publication, as well as 
usurpation of the authorship or coercion into joint authorship shall entail fines equal to 100-500 
monthly calculation indexes, or to the amount of wages or other income received by the convict for a 
period of one to five months, or in public works for 180 to 240 hours, or in a prison term of up to two 
years, if the action was performed with the view to receive profits and resulted in severe damages. 
Subject to Article 158 of the Administrative Infring ements Code of the Republic of Kazakhstan, 
breach of the commitment to keep  undisclosed commercial or banking confidential information, credit 
reports data or information retrieved from a credit history database of a credit organization without the 
owner's consent by a person that obtained such in formation due to his or her professional service or 
job performance shall entail fines equal to 50 mont hly calculation indices, provided that such actions 
have no signs of a criminal deed. 
Besides, we inform that the existing laws of Kazakhstan provide for no term "second applicant", 
because the industrial property priority is determin ed by the date of application submission and the 
right holder has the exclusive right for the protected industrial property. 
The Civil Code of the Republic of Kazakhstan re quires nondisclosure of data or information during 
approbation, sale or marketing of chemical, pharmaceutical, or agricultural products what complies with Article 39(3) of TRIPS Agreement.  
The State has a legal mechanism according to which companies of universal types shall be prohibited 
to refer to developer's information without its prior consent. It is stated in the norm of Article 15 of 
the Law of the Republic of Kazakhstan "On Protection of Selective Achievements", stipulating for the  WT/ACC/KAZ/66 
 Page 147 
 
 
  fact that natural person or juridical entity shall be tr eated as infringing the rights of patent holder, if he 
discloses the information being commercial secret , the data on sort and species being the subject 
matter of the application. 
As to the Law of the Republic of Kazakhstan "On Me dicines" it is prohibited to produce, storage, sale 
and use medicines without stat registration or re -registration on the Republic of Kazakhstan.    
- ENFORCEMENT Question 123 Referring to Question 151, please indicate whet her pre-established dama ges are available with 
regard to the infringement of intellectual propert y rights. The response relating to Article 49 of 
the copyright and Related Rights law indicates that a court can order the respondent to pay 
compensation in the amount of from twenty to fifty thousand minimum wages and five hundred 
to fifty thousand minimum wages for violation of the copyright for software or a database. This 
suggests a range of pre-established damages, fo r copyright and related rights violations.  
Answer:
 
The Legislation of the Republic of Kazakhstan provi des for criminal, administrative and civil liability 
for infringement of intellectual property rights.  
Administrative liability shall fall due in case of unaut horized distribution or any other unauthorized 
use of copyright or related rights items and shall entail imposition of fine with compulsory confiscation of piratical copies of production, audio tracks, as well as the subjects being the instruments of wrongdoing.  
There shall be provided criminal liability in case if the rights and legitimate in terests of the copyright 
or related rights holder are inflicted with severe da mage or significant harm. Criminal liability shall 
come whether for acquisition or storage, move  or production of piratical copies of production 
intended for sale. Criminal liability shall also co me in case of repetition of the specified wrongdoings 
by a group of people by previous concert or crimin al group by way of imprisonment for the term of 
two or five years with confiscation of property or without it.   
As per the civil liability, it shall come as a resu lt of civil procedure initiation and just upon the claim 
of the copyright holder or any other right possessor.  
Subject to Article 49 of the Law of the Republic of Kazakhstan "On Copyri ght and Related Rights" 
(the Law), besides other reinforcement measures to protect copyright and related rights, the court may 
oblige the responder to pay compensation to the infringed party in the amount of 20-50,000 MCI (monthly calculation indices), and in the amount of 500-50,000 MCI for infringement on a PC or 
database related copyright. 
The specified does not touch the amount of damage or preliminary determination of damage size in 
relation of intellectual rights infringement.  The nor m stipulated for in Article 49(1)(6) of the Law 
shall concern only the amount of indemnification for infringement of copyrights and related rights. In 
addition to the aforecited norm is only one of the me asure, which can be applied by the judge on the 
basis of copyright and related rights holder.  
Thus, the Legislation of the Republic of Kazakhs tan does not stipulate for the norm, restricting 
copyright holder or any other intellectual rights owner in determination of the damage sizes in relation 
to the intellectual property rights infringements.   WT/ACC/KAZ/66 
Page 148  
 
  Question 124 
Referring to Question 153, it is not clear fr om the response whether pre-established damages 
are available. Please clarify. 
Answer:
 
Authors or right holders themselves determine the pr e-defined damage At that the amount of damage 
shall be determined based on the value of the licensed  products and taking into account the quantity of 
exempted products. Such information is generally available. 
Subject to Articles 9 and 917 of the Civil Code an infringed party may claim full compensation of the 
losses caused, until otherwise stipulated in the laws or agreements. 
Only the court in the court process on an infri ngement of copyright may oblige the responder 
(infringing party) to compensate the losses of a complainant, includi ng lost proceeds, or oblige the 
responder to pay the proceeds obtained from the such an infringement of copyright or related rights to 
the complainant (Article 49 of the Law). 
Question 125 
Referring to Question 154, as indicated in the response, Article 44(2) of the Trademark Law 
appears to provide as a remedy the deletion of the infringing mark from the goods or 
packaging. Where this is not possible the goods must  be liquidated in accordance with the law. 
Article 46 of the TRIPS Agreement provides that  "[i]n regard to counterfeit trademark goods, 
the simple removal of the trademark unlawfully affixed shall not be sufficient, other than in exceptional cases, to permit release of th e goods into the channels of commerce. 
Article 44(2) does not appear to be in compliance with the provision in Article 46 of TRIPS. 
Please clarify.  
Answer:
 
Subject to Article 44 of the Law on Trademarks, a person illegally using a trad emark or an appellation 
of origin or a denomination similar to such one to  a likelihood confusion, shall dispose of (destroy) 
such illegally produced images of a trademark or an appellation of origin, remove it from the goods, 
packing, letterheads or other documentation illegally using the trademark, appellation of origin or 
denomination similar to a likelihood confusion. 
Whenever it is impossible to meet this requirement, such goods shall be disposed of (liquidated) in 
accordance with the due procedure established by th e laws of the Republic of Kazakhstan, which 
meets the requirements of Article 46 of the WTO Agreement on TRIPS. 
In accordance with Article 220 of the Customs Co de, "destruction of goods" shall mean the customs 
regime under which foreign goods are destroyed or  brought into a state making them unusable, under 
customs control, without payment of customs duties and taxes and without non-tariff regulatory measures being applied to them.  
According to Article 220 of the Customs Code, go ods shall be placed under the customs regime for 
destruction based upon a conclusion, by the appropria te authorized state body, on the possibility to 
destroy goods, which specifies the me thod and the place of destruction.  
Destruction of goods shall be performed:  WT/ACC/KAZ/66 
 Page 149 
 
 
  − by way of thermal, chemical, mechanical or other influence (incineration, demolition, burial 
etc.) resulting in full destruction of the goods. The way of destroying goods must exclude possibility of their further restoration and retu rning to the initial state and further use; and 
− by way of dismantling, taking to pieces, mechanical damage including making holes, tearing, 
or causing damage in other ways, provided such  damages preclude the subsequent restoration 
and possible use of the goods. 
In accordance with Article 46 of TRIPS Agreement for the creation of the effective instrument, 
preventing infringement of rights, judicial agencies sh all have right to issue a legal order, requesting 
to withdraw from trade channels the goods which we re proved to be infringing the rights, without any 
compensation, to avoid damnification to the rights holder, or, if it does not contradict the existing 
constitutional requirements to destruct them. Judicial  agencies shall also have right to issue a legal 
order, requesting to withdraw from trade channels materials and instruments being mainly used for 
production of counterfeits without any compensation to minimize the hazards of new violations. 
Under consideration of such requests the necessity to measure the interrelation between seriousness of 
wrongdoing and judicial remedies, as well as the inter ests of third persons shall be taken into account. 
Subject to the goods with the forged trade marks simp le elimination of illegally used trade mark is not 
sufficient except for the cases to allow the re lease of such goods into trading channels. 
According to the Article 44 of the Law of the Republic of Kazakhstan "On Trade Marks, Service 
Marks and Appellations of Origin" a person illegally using a trade mark, appellation of origin or a 
designation, being confusingly similar to it, is obliged: 
− to cease violation and indemnify losses to the owner of the trademark and the holder of 
appellation of origin right of use; and 
− to destroy produced images of the trademark or appellation of origin, to remove illegally used 
trademark or appellation of origin from the goods, its packages, form sheets or other 
documents, as well as indications be ing confusingly similar to them. At the failure to fulfil the 
requirement corresponding products shall be subject ed to destruction in the order established 
by the legislation of the Republic of Kazakhstan.  
The court shall have right to adjudicate in a case s connected to the infringement of rights, to 
confiscate counterfeits, productions or audio tracks, as well as the materials and equipment used for their playback. At that piratical copies can be pas sed to the holder of copyrights or related rights upon 
his request or shall be subject to annihilation at the decision of the court (paragraph 3 of the Article 49 
of the Law "On Copyright and Related Rights"). 
Materials and equipment, used for their playback, shall also be subjected to destruction or state 
revenue disposition.   
Article 129 of the Code "On Administrative Violati ons" also stipulates for confiscation of production 
and audio tracks copies.  
These regulations comply with Article 46 of TRIPS.  
Question 126 
Please indicate whether the trademark law provides for the manner in which TRIPS Article 46 
relating to the disposition of materials and impl ements predominantly used to create infringing 
goods is complied with.  WT/ACC/KAZ/66 
Page 150  
 
  Answer:
 
According to the Article 44 of the Law "On Tradem arks, Service Marks and Appellations of Origin" a 
person illegally using a trade mark, a ppellation of origin or a designati on, being confusingly similar to 
it, is obliged: 
− to cease violation and indemnify losses to the owner of the trademark and the holder of 
appellation of origin right of use; and 
− to destroy produced images of the trademark or appellation of origin, to remove illegally used 
trademark or appellation of origin from the goods, its packages, form sheets or other 
documents, as well as indications be ing confusingly similar to them. At the failure to fulfil the 
requirement corresponding products shall be subject ed to destruction in the order established 
by the legislation of the Republic of Kazakhstan.  
Question 127 
With regard to both trademark and copyright infringement, please indicate the meaning of 
"liquidated" as used in the response to Question 154.  
Answer:  
In accordance with Article 220 of the Customs Co de, "destruction of goods" shall mean the customs 
regime under which foreign goods are destroyed or  brought into a state making them unusable, under 
customs control, without payment of customs duties and taxes and without non-tariff regulatory 
measures being applied to them.  
According to Article 220 of the Customs Code, go ods shall be placed under the customs regime for 
destruction based upon a conclusion, by the appropria te authorized state body, on the possibility to 
destroy goods, which specifies the me thod and the place of destruction.  
Destruction of goods shall be performed: 
− by way of thermal, chemical, mechanical or other influence (incineration, demolition, burial 
etc.) resulting in full destruction of the goods. The way of destroying goods must exclude possibility of their further restoration and retu rning to the initial state and further use; and 
− by way of dismantling, taking to pieces, mechanical damage including making holes, tearing, 
or causing damage in other ways, provided such  damages preclude the subsequent restoration 
and possible use of the goods. 
Question 128 
Does the law provide with regard to counterfeit a nd piratical goods for the disposal of the goods 
outside the channels of commerce pursuant to TRIPS Article 46. 
Answer:
 
Subject to Kazakh legislation the power of inte rnal affairs bodies and financial police includes 
organization of detection operati ons and criminalistic activity, hol ding inquests and preliminary 
investigation of criminal cases, as well as prevention, detection, control, disclosing and investigation 
of crimes and infringements.  WT/ACC/KAZ/66 
 Page 151 
 
 
  Therefore, the law machinery has the right to expropriate counterfeit pr oducts made by illegal 
producers infringing intellectual property rights, i. e. the products that are not in commercial 
circulation yet. 
Question 129 
Referring to Question 156, reference is made to Article 158 of the Civil Code relating to 
provisional measures and Article 49(2) of the Copyright and Related Rights Laws.  Are 
provisional measures explicitly provided for with regard to the other intellectual property rights?  
Answer:
 
In accordance with Article 50(2) of the Agreement on TRIPS a judicial body shall have right to 
introduce provisional measures without hearing of the other side, when appropriate, particularly in 
cases when there is possibility to inflict serious harm  to the possessor of a right in case of any delay or 
there is hazard  proving that  evidences will be lost.   
According to the Article 158 of Code of Civil Procedure of the Republic of Kazakhstan, upon 
application of the individuals participating in the pr ocess of parties of an intermediate or arbitration 
trial, the court can take measures to secure the enfo rcement.  Enforcement measures shall be available 
at any phase of the case, if non-action may hinder or make impossible court enforcement action.  
The following enforcement measures are stipulated by  Article 159 of Code of Civil Procedure of the 
Republic of Kazakhstan:    
− attachment of the property, belonging to a defe ndant and being in property his disposal or in 
the disposal of other persons;  
− defendant prohibited from performing of certain acts;  
− other persons are prohibited from transferring an y property to the defendant or discharge any 
liabilities to the defendant; and 
− suspension of property sale in case of lawsuit submission for release of property from arrest. 
In special cases the court can assume other measures for security of a lawsuit, which meet the aims, 
specified in Article 158 of CPC RK. 
The court may assume several enforcement measures. Guilty persons will bear administrative 
responsibility for violation of prohibitions specified in  subparagraphs 2) and 3)  of part one of this 
Article. Besides, the suitor shall have right to judi cially require indemnifica tion of damage, impaired 
by non-performance of definition of lawsuit security.  
Question 130 
Referring to Question 157, it is not clear from the response whether pursuant to TRIPS 
Article 50(2) provisional measures inaudita altera parte  are available. In civil cases, may a court 
issue an order relating to the measures outlined in the answer to Question 156 without prior 
notice to the defendant?  
Answer:  
Subject to Article 50(2) of the WTO Agreement on TRIPS the judicial authorities shall have the 
authority to adopt provisional measures inaudita altera parte  where appropriate, in particular where WT/ACC/KAZ/66 
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  any delay is likely to cause irreparable harm to the right holder, or where there is a demonstrable risk 
of evidence being destroyed. 
The legislation of Kazakhstan provides for no prelim inary notification of the responder in intellectual 
property area. 
Subject to Article 638 of the Administrative Infringeme nts Code, whenever a fact of an administrative 
infringement has been disclosed, a protocol on administrative infringement shall be immediately 
drawn up and, in accordance with paragraph 1 of artic le 640 of the Code, within one day it shall be 
submitted to a judge or an authorized body for co nsideration of the administrative infringement case. 
Question 131 
Referring to Question 159, the document reference d is a communication regarding the Customs 
Code, rather than the text. Could a copy of th e text of section 10 of the Customs Code be 
provided? Are implementing regulations  for these provisions available?  
Answer:
 
The text of Section 10 of the Customs Code is  available through document WT/ACC/KAZ/66/Add.1. 
The procedure for keeping the Register of goods containing objects of intellectual property and 
bringing it to the attention of customs authorities and applicants, approved by the Order of Chairman 
of the Agency of Customs Control No. 201 of 13 May 2003, is available through document WT/ACC/KAZ/66/Add.1. 
Question 132 
Referring to Question 161, it is not clear from the response whether enforcement  action will be 
taken with regard to exportations or in tran sit movement of counterfeit or piratical goods. 
Please clarify.  
Answer:
 
As per the Taxation Code, taxation bodies of th e Republic of Kazakhsta n make provisions on 
exclusion of illegal entry or exportation of  goods, containing intellectual property.   
According to Article 416 of the Customs Code, if, during the course of customs clearance and 
customs control of goods included in the Register of goods containing objects of intellectual property, 
the customs authority discovers any signs of the goods being counterfeit, the release of such goods 
shall be suspended.  
According to Article 416 of the Customs Code, cust oms authorities shall not take measures to protect 
intellectual property rights with respect to goods containing objects of intellectual property which are 
conveyed across the customs border of the Republic of Kazakhstan in compliance with the transit 
customs procedure for goods.   
Question 133 
Referring to Question 162, please indicate the manner in which the threshold for severe damage 
is determined.   WT/ACC/KAZ/66 
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  Answer:  
The Criminal of the Republic of Kazakhstan s tipulates for large amount or heavy damage (for 
violation of intellectual property rights) in Articles 184, 184-1.  
The acts, provided for in Articles 184, 184-1 of the Criminal Code, shall be regarded as being caused 
severe damage or committed at the large scale, if th e amount of damage or the value for rights for the 
use of intellectual property, or the value of copies,  audio tracks or goods, containing inventions, useful 
models, industrial designs, selective achievements or  topologies of integrated microcircuits, exceeds 
the monthly specified rate, established by the legisla tion of the Republic of Kazakhstan to the moment 
of crime commission in 100 times.   
The acts, provided for in Articles 184, 184-1 of the Criminal Code, shall be regarded as being caused 
severe damage or committed at the large scale, if th e amount of damage or the value for rights for the 
use of intellectual property, or the value of copies,  audio tracks or goods, containing inventions, useful 
models, industrial designs, selective achievements or  topologies of integrated microcircuits, exceeds 
the monthly specified rate, established by the legisla tion of the Republic of Kazakhstan to the moment 
of crime commission in 500 times.   
VII. TRANSPARENCY Question 134 Where does Kazakhstan provide for publication of administrative rulings of general 
application, e.g., customs rulings?  
Answer:
 
In accordance with Article 4 of the Constitution of the Republic of Kazakhstan,  all laws, international 
treaties, to which Kazakhstan is a party, shall be published officially.  Official publication of legal 
acts, concerning rights, freedom and duties of citizens is a mandatory pre-condition for their 
enforcement.  
The Law of the Republic of Kazakhstan No. 213 "On Regulatory Legal Acts" of 24 March 1998 
differentiates two ways of official publication of regulatory legal acts:  
− official publication of the texts of regulatory legal acts; and 
− subsequent publication of the texts of regulatory legal acts. 
In accordance with Article 30 of the Law of the Republic of Kazakhstan "On Regulatory Legal Acts", 
the Bulletin of the Parliament of the Republic of Kazakhstan and Collection of Acts by President of 
the Republic of Kazakhstan and the Government of the Republic of Ka zakhstan (CAPG) shall be used 
as the official medial.   
Official publication of legal acts shall be made al so in periodicals, which obtained such right on a 
competitive basis in the order established by the Government of the Republic of Kazakhstan.   
"Yegemen Kazakhstan" (in the State language-Kaz akh), "Kazakhstanskaya Pravda" (in Russian), 
newspapers are considered as periodicals entitled on a competitive basis for official publication of 
regulatory legal acts of central executive or other central state bodies of the Republic of Kazakhstan, 
including the Decrees of the Supreme Court, the National Bank, the Central Election Committee.  WT/ACC/KAZ/66 
Page 154  
 
  Subsequent publication of official texts of regulat ory legal acts shall be done by periodicals in the 
order established by the Government of the Republic of Kazakhstan and provided that texts subject to 
publication undergone expertise for compliance with the centralized bank of legal acts of the Republic 
of Kazakhstan.  
(i)  Legal Acts of the Republic of Kazakhstan sha ll be officially published in the Bulletin of the 
Parliament of the Republic of Kazakhstan, as well as in the other periodicals in the order 
established by Article 30 of the Law of the Republic of Kazakhstan "On Regulatory Legal 
Acts".   
(ii)  The Resolutions of the President of th e Republic of Kazakhstan, Resolutions of the 
Government of the Republic of Kazakhstan shall be officially published in the Collection of 
Acts by President of the Republic of Kazakhs tan and the Government of the Republic of 
Kazakhstan, as well as in other periodicals in th e order established by Article 30 of the Law 
of the Republic of Kazakhstan "On Regulatory Legal Acts". 
(iii)  Legal Acts of the Central Executive and other Central State Bodies shall be published in 
periodicals in the order established by Article 30 of the Law of the Republic of Kazakhstan 
"On Regulatory Legal Acts". 
Official publication of regulatory legal decisions of Maslikhats, regulatory legal resolutions of 
Akimats and regulatory legal decisions of Akims sha ll be made in the order established by Article 30 
of the Law of the Republic of  Kazakhstan "On Legal Acts". 
Control over publication of legal acts of central and local administrative bodies shall be executed by 
the Ministry of Justice of the Republic of Kazakhstan and its territorial bodies.   
The list of registered regulatory legal acts shall be  monthly published on the web-site of the Ministry 
of Justice: www.minjust. кz  
Pursuant to Article 30 of the Customs Code, publi cation of regulatory legal documents in the customs 
sphere shall be made through official publication by  the authorised body in periodicals in the order 
established by the Law of the Republic of Kazakhstan "On Regulatory Legal Acts". 
Public informing in the customs sphere sha ll also be made using verbal guidelines and 
announcements, information desks, bucklets and other printed documents as well as via video-, audio- 
and other technical means in the following places:   
− customs points at the border of the Republic of Kazakhstan; 
− airports, railway and automobile stations, maritime ports; 
− on the boards of motor transports, air a nd maritime vessels conducting international 
shipments; and 
− customs control zones determined by the Cust oms Code and other places determined by the 
customs authorities. 
Customs authorities shall provide free access for  par ticipants of foreign tr ade operations and other 
foreign economic activities to regul atory legal documents, administrative decisions on customs related 
issues, including orders of the customs aut horities, except for confidential information. 
The information shall be published in the official  web-site of the Customs Control Committee of the 
Ministry of Finance of the Republic of Kazakhs tan www.customs.kz, and also in magazines and 
newspapers (such as: "Official Gazette",  "Zan", "Keden", "Customs Bulletin"). 
Moreover, in accordance with Article 32 of th e Customs Code, customs officials are legally 
accountable for provision of accurate and relevant info rmation.  They shall be penalized in the order  WT/ACC/KAZ/66 
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  established by Article 84 of the Customs Code  for provision of incomplete and  misleading 
information or failure to provide in formation on customs related issues.  
Question 135 
Where does Kazakhstan provide for publication of regulations and other legal instruments for 
review and comment prior to enactment?  
Answer:  
According to Article 15 of the Law of the Repub lic of Kazakhstan "On Re gulatory Legal Acts" and 
the Regulation of the Government of the Republic of Kazakhstan, approved by the Resolution of the 
Government of the Republic of Kazakhstan No. 1300 as of 10 Decemb er 2005, draft texts of laws, 
regulatory legal acts of the Republic of Kazakhstan shall be submitted for their review and approval to 
all concerned Ministries and Agencies.    
The government body responsible for development of  technical regulations shall publish notification 
on the draft text of amendments a nd/or addenda made to the technical  regulation and draft text of new 
technical regulations as well as the decision on elimin ation of the existing technical regulation in the 
official periodical and informational network of public use.  
The Law of the Republic of Kaza khstan "On Technical Regulating" establishes that public discussions 
on the draft text of technical regulations and other legislative acts in the area of technical regulating 
shall be discussed within the te rm not less than 60 days from the date of the publication of the 
notification about the development of the draft legislation until the date  of publication of the 
notification about conclusion of the public discussions. 
Prior to enactment, all regulations and other legislative acts shall be placed on the web-site 
www.memst.kz and published in periodical media for public review and comments.  
In accordance with Article 18 of the Customs Co de of the Republic of Kazakhstan, the customs 
authorized body is entitled to involve particip ants of foreign trade operations and other foreign 
economic activities, public associations and all other interested parties into the process of 
development of legal acts regulating the customs s phere.  For example, large number of participants 
of foreign economic activities, including business- associations, commerce and industry chambers and 
other business communities of Kazakhstan actively par ticipated in development of the Customs Code 
of the Republic of Kazakhstan.  
The draft Law of the Republic of Kazakhstan "On Am endments and Addenda to the Customs Code of 
the Republic of Kazakhstan" was published on the web-site of the Customs Control Committee prior 
to its enactment.    
Question 136 How does Kazakhstan intend to provide for public ation for review and comment of TBT and 
SPS related materials, procedures, and regulations? Will such facilities b е extended to other 
areas in the establishment of а regulatory review mechanism of general application? 
Answer:
 
In accordance with the Law of the Republic of Kazakhstan "On Technical  Regulating", public 
notifications shall be made on development of  draft technical regulations and sanitary and 
phytosanitary measures as well as their draft texts sha ll be published on the web-site of the authorized WT/ACC/KAZ/66 
Page 156  
 
  body on technical regulating and in its official pe riodicals.  Draft technical regulations shall be 
provided to all interested parties for their review and comments, which shall be taken into account in 
the course of further elaboration. 
Furthermore, the TBT/SPS Enquiry Point (Inform ation Centre) has been established under the 
supervision of the Committee on Technical Regulati ng and Metrology under the Ministry of Industry 
and Trade of the Republic of Kazakhstan.  The TBT/ SPS Enquiry Point is responsible for preparation  
and further submission of notifications to the WTO Secretariat in order to inform the WTO member-
states on the draft technical regulations, which do not  meet the requirements of  international standards 
along with justification for such non-conformity, an d on the draft technical regulations, which were 
developed in the absence of the international standards.  The TBT/SPS Enquiry Point is also 
responsible for submission of the texts of draf t technical regulations, procedures and any other 
documents related to TBT and SPS measures upon the request of WTO member-states..   
The legal and regulatory documents on and proce dures related to application of TBT and SPS 
measures will be published in official media and on the web-site of the authorized body on technical 
regulating, along with the texts of the draft technical regulations.  
All draft technical regulations as well as legal a nd regulatory documents on and procedures related to 
application of TBT and SPS measures will be stored in the special fund of the authorized body on 
technical regulating, which will be availa ble for acquaintance and acquisition.   
Notifications on approved administrative regulations (decrees) in the given spheres shall be published 
in the official periodical editions and on the web-sites www.minagri.kz and www.memst.kz. 
VIII. TRADE AGREEMENTS 
Question 137 
Much more information on the scope and conten t of Kazakhstan's bilateral and plurilateral 
preferential trade agreements should be provided in this section, covering inter alia : 
− FTAs with the CIS and other countries; 
− the customs union with Russia, Belarus, Kyrgyz Republic and Tajikistan;  
− the Eurasian Economic Community; and 
− the Single Economic Area Agreement with Russia, Ukraine, and Belarus. 
Any protocols or agreements within these agreements that cover WTO issues, e.g., safeguards, 
ТВТ  and SPS, customs issues, etc., should be listed and described. 
Please indicate and exceptions to the elimination of all duties and charges on substantially all 
trade with these preferential trading partners,  and the areas of Kazakhstan's tariff schedule 
that are not aligned with the common external tariff of the customs union. 
Answer:
 
Commonwealth of Independent States: 
CIS membership includes the Russian Federation, Ar menia, Belarus, Georgia, Ukraine, the Republics 
of Kazakhstan, Tajikistan, Uzbekistan, Turkmeni stan, Moldova, and the Kyrgyz and Azerbaijan 
Republics.  WT/ACC/KAZ/66 
 Page 157 
 
 
  On 15 April 1994 CIS Member States signed a mu ltilateral "Agreement on Establishing a Free Trade 
Area (FTA)".  
In accordance with the Agreement, its Member Stat es shall establish free trade regime with no tariff 
or non-tariff measures for goods, except for certa in exemptions, which will be phased out.  
Main documents, regulating FTA:  
- Basic Agreements  
− Agreement on Establishing a Free Trade Area (15 April 1994); 
− Protocol on Amending the Agreements on Establishing a Free Trade Area of 
15 April 1994 (2 April 1999); 
− Agreement on Re-export of Goods and the Procedure of Licensing of Re-export 
(15 April 1994); 
− Agreement on Rules of Origin (24 September 1994); 
− Agreement on Uniform Goods Nomenclature of CIS Foreign Economic Activity of 
(3 November 1995); 
− Protocol on Amendments into Uniform Goods Nomenclature of CIS Foreign 
Economic Activity (4 June 1999); 
− Protocol on Amendments into Uniform Goods Nomenclature of CIS Foreign 
Economic Activity (8 October 1999); 
− Protocol to the Agreement on Uniform Goods Nomenclature of CIS Foreign 
Economic Activity  (20 June 2000); 
− Agreement on Measures for Prevention and Restraint of Fictitious Trade Marks and 
Geographical Indications (4 June 1999); and 
− Protocol on the Rules for Conducting of C onsultations on Phasing-Out of Exemptions 
from Free Trade Regime of the Parties to the Agreement on Establishing a Free Trade 
Area (24 December 1999). 
- Liberalization of National Markets  
− Agreement on Formation of Common Scien tific and Technological Area under CIS 
(3 November 1995); 
− Agreement on Formation of Principles of Common Transport Area and Cooperation 
of CIS Member States in the Sphere of Transport Policy (9 October 1997); 
− Agreement on Agricultural Market of CIS Member States (6 March 1998); 
− Agreement on Transit Procedures through the Territories of CIS Member States 
(4 June 1999); 
− Treaty on Conducting of Agreed Antimonopoly Policy (25 January 2000); and 
− Agreement on Basic Directions of Cooperation of CIS Member States in the Sphere 
of Consumer Protection (25 January 2000). 
- Development of Market Infrastructure  
− Agreement on Establishment of In terstate Bank (22 January 1993); 
− Agreement on Assistance in Creation and Development of the Industrial, 
Commercial, Credit and Financial, Insuran ce and Mixed Transnational Associations 
(15 April 1994); 
− Agreement on Development of Exhibiti on Activity in the CIS (26 May 1995); 
− Convention on Transnational Corporations (6 March 1998); 
− Convention on Interstate Leasing (25 November 1998); WT/ACC/KAZ/66 
Page 158  
 
  − Convention on Coordination of Activity of  CIS Member States on Securities Markets 
(25 November 1998); and 
− Program on Small Business (8 October 1999). 
- FTA Formation Regulating Processes
 
− Agreement on Principles of Customs Policy (13 March 1992); 
− Agreement on Cooperation and Mutual  Assistance in Customs Affairs 
(15 April 1994); 
− Agreement on Customs Procedures for Registration and Customs Control of the 
goods Moving between the Parties to th e Agreement on Establishing a Free Trade 
Area (8 October 1999); and 
− Main Principles of the Accounting (Financial) Reporting (25 May 2000). 
- Creation of Favourable C onditions for FTA functioning  
− Agreement on Technical Barriers in FTA (20 June 2000); 
− Agreement on the Procedures of Settling Di sputes Related to Economic Activities 
(20 March 1992); 
− Agreement on Principles of Harmonization of the Economic Legislation of CIS 
Member States (9 October 1992); 
− Agreement on Cooperation in Investme nt Activities (24 December 1993); 
− Agreement on Establishment of Pa yments Union (21 October 1994); 
− Agreement on Coordinated Policy in the Fi eld of Transport Tariffs Determination 
(17 January 1997); 
− Agreement on Support and Development of Small Business (17 January 1997); 
− Convention on Investor Rights Protection (28 March 1997); 
− Agreement on Procedures for Mutual Executi on of Arbitration, Economical Courts 
Decisions on the Territory of CIS Member States (6 March 1998); and 
− Agreement on Collection Principles of Indirect Taxes under Export and Import of 
Goods (Works, Services) among CIS Me mber States (25 November 1998). 
Kazakhstan has bilateral trade agreements with all CIS Member States with the exception of 
Turkmenistan.  Under these bilateral free trade agreements, goods originating from these countries 
and imported to Kazakhstan were exempted from cu stoms duties, except for a number of goods listed 
in the Schedule of Exemptions, which were subject  to normal customs duties, taxes and charges.   
Currently, the Republic of Kazakhstan applies ex emptions from free trade regime towards the 
following CIS Member States:  Georgia, Ukraine,  the Azerbaijan Republic and the Republics of 
Uzbekistan and Moldova. 
Georgia  
Trade relations between the Republic of  Kazakhstan and Georgia are based on: 
− the Free Trade Agreement between the Governme nt of the Republic of Kazakhstan and the 
Government of Georgia of 11 November 1997; 
− the Protocol on Exemptions from Free Trade Re gime to the Free Trade Agreement between 
the Government of the Republic of Kazakhs tan and the Government of Georgia of 
11 November 1997; and 
− the Protocol on Amending the Free Trade Ag reement between the Government of the 
Republic of Kazakhstan and the Governme nt of Georgia of 11 November 1997.  WT/ACC/KAZ/66 
 Page 159 
 
 
  In accordance with the Protocol on Exemptions Kazakhstan applies exemptions from Free Trade 
Regime when importing tobacco, sugar, alcoholic an d non-alcoholic beverages from Georgia with the 
exception of wines and brandies.  
Georgia does not apply exemptions with respect to Kazakhstan. In November 2004, the Protocol on Amending the Free Trade Agreement between the Government of 
the Republic of Kazakhstan and the Government of Georgia of 11 November 1997, providing for 
gradual elimination of exemptions starting from 1 Ap ril 2005, was signed.  This Protocol was ratified 
by the Law of the Republic of Kazakhstan No. 78 of 30 September 2005 
Azerbaijan
 
Trade relations between the Republic of Kazakhs tan and the Azerbaijan Republic are based on: 
− the Free Trade Agreement between the Governme nt of the Republic of Kazakhstan and the 
Government of the Azerbaijan Republic of 10 June 1997; 
− the Protocol on Exemptions from Free Trade Re gime to the Free Trade Agreement between 
the Government of the Republic of Kazakhsta n and the Government of the Azerbaijan 
Republic of 10 June 1997; and 
− the Protocol on Amending the Free Trade Ag reement between the Government of the 
Republic of Kazakhstan and the Government of  the Azerbaijan Republic of 10 June 1997. 
In accordance with the Protocol on Exemptions Kazakhstan applies exemptions from Free Trade 
Regime when importing alcoholic and non-alcoholic  beverages, tobacco and industrial tobacco 
substitutes from Azerbaijan. 
In its turn Azerbaijan applies exemptions from Fr ee Trade Regime when importing liqueur and vodka 
and other alcoholic products, tob acco cigarettes from Kazakhstan. 
On 24 May 2005, the Protocol on Amending the Free Trade Agreement between the Government of 
the Republic of Kazakhstan and the Government of the Azerbaijan Republic of 10 June 1997, 
providing for gradual elimination of exemptions star ting from 1 July 2006, was signed. This Protocol 
was ratified by the Law of the Republic of  Kazakhstan No. 78 of 30 September 2005 
Currently, this Protocol is under ratification process by the Parliament of the Republic of Kazakhstan.  
Uzbekistan  
Trade relations between the Republic of Kazakhstan and the Republic of Uzbekistan are based on: 
− the Free Trade Agreement between the Governme nt of the Republic of Kazakhstan and the 
Government of the Republic of Uzbekistan of 2 June 1997; and 
− the Protocol on Exemptions from Free Trade Re gime to the Free Trade Agreement between 
the Government of the Republic of Kazakhsta n and the Government of the Republic of 
Uzbekistan of 2 June 1997. 
In accordance with the Protocol on Exemptions Kazakhstan applies exemptions from Free Trade 
Regime when importing rice, alcoholic and non-alc oholic beverages, tobacco and industrial tobacco 
substitutes from Uzbekistan.   WT/ACC/KAZ/66 
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  Moldova
 
Trade relations between the Republic of Kazakhsta n and the Republic of Moldova are based on: 
− the Free Trade Agreement between the Governme nt of the Republic of Kazakhstan and the 
Government of the Republic of Moldova of 26 May 1995; and 
− the Protocol on Exemptions from Free Trade Re gime to the Free Trade Agreement between 
the Government of the Republic of Kazakhsta n and the Government of the Republic of 
Moldova of 26 May 1995. 
In accordance with the Protocol on Exemptions Kazakhstan and Moldova a pply exemptions from Free 
Trade Regime when exporting goods that fall unde r the legislation of Kazakhstan and Moldova on 
procedure for export of goods which is in effect at the time of customs clearance of the goods.   
In accordance with the Draft Protocol on Am ending the Free Trade Agreement between the 
Government of the Republic of Kazakhstan and th e Government of the Republic of Moldova of 
26 May 1995, currently is being under consideration by the Government of the Republic of  Moldova, 
the Protocol on Exemptions will become invalid.  
Ukraine  
Trade relations between the Republic of  Kazakhstan and Ukraine are based on: 
− the Free Trade Agreement between the Governme nt of the Republic of Kazakhstan and the 
Government of Ukraine of 17 September 1994; and 
− the Protocol on Exemptions from Free Trade Re gime to the Free Trade Agreement between 
the Government of the Republic of Kazakhs tan and the Government of Ukraine of 
17 September 1994. 
In accordance with the Protocol on Exemptions Kazakhstan applies exemptions from Free Trade 
Regime when importing beer, alcoholic products, ethy l alcohol, tobacco products and raw materials as 
well as other industrial tobacco.  
On 21 December 2005 the Draft Protocol on Elimina tion of Exemptions starting from 1 January 2007 
was approved by the Government of the Republic of Kazakhstan and the Government of Ukraine.  It 
is planned this Protocol will be signed in the nearest future.  
Single Economic Area with Russia, Ukraine and Belarus (SEA)  
On 19 September 2003, the Presidents of the Russian Federation, Ukraine and the Republics of 
Belarus and Kazakhstan signed an "Agreement on the Establishment of a Single Economic Area 
(SEA)".  The agreement aimed at promoting mutual trade and  investment on the basis of fundamental 
principles and norms of international law, including WTO rules. 
Basic principles of SEA are to ensure free trade in goods and services and free  movement of capital 
and labour within the territory  of the Parties.  
The main objectives of the SEA are the following:  
− creation of a free-trade area without withdrawals and restrictions, based on mutual non-
application of antidumping, countervailing and safeguard measures, pursuit of common tariff 
policy and non-tariff regulation, common competition rules, use of subsidies and other forms of state support;   WT/ACC/KAZ/66 
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  − unification of the principles of elaboration and application of technical regulations, standards, 
sanitary and phytosanitary norms; 
− harmonization of macroeconomic policy;   
− ensuring of non-discriminatory access and equal tariff rates for natural monopoly services; 
and 
− formation of common principles for regula ting of natural monopolies activity (railway 
transport, main telecommunication, transpor tation of electric power, oil and gas) and 
competition policy.  
The SEA will be created by stages, taking into account the possibility of different implementation 
rates and level of integration. 
To ensure implementation of basic objectives of SEA formation, Parties to the Agreement elaborated 
more than 90 drafts international treaties which will serve as international legal basis for Single 
Economic Area. 
At the moment the negotiations on the package of docum ents to be signed at the first stage are close to 
the completion. 39 documents shall be include d in the primary package of agreements.   
SEA Agreements: 1. Directed towards completion of establishment of the free trade zone, elimination of tariff and 
non-tariff barriers in mutual trade: 
− Protocol on abolition of customs duties in mutual trade of states – parties to the 
Agreement on Establishment of  SEA of 19 September 2003; 
− Protocol on abolition of import customs duties in mutual trade of countries – parties 
to the Agreement on Establishment of SEA of 19 September 2003; and 
− Agreement on abolition of quantitative restri ctions in mutual trade of countries – 
parties to the Agreement on Establis hment of SEA of 19 September 2003. 
2.  Directed towards unification of rules for appli cation of special safeguards in mutual trade, and 
further non-application of special safeguard s, anti-dumping and countervailing measures in 
mutual trade as well as coordinated applica tion of special safeguards, anti-dumping and 
countervailing measures with regard to the third countries: 
− Agreement on Application of Safeguards in Mutual Trade directed towards 
unification of application of safeguards in mutual trade; and 
− Agreement on Abolition of Safeguards, Anti-Dumping and Countervailing Measures 
in Mutual Trade. 
3. In the field of customs procedures: 
− Agreement on Determining the Customs Va lue of Goods Imported to the Customs 
Territory of the Countries – Parties to the SEA. Pursuant to this Agreement the value 
of goods imported to the customs territory of the country – party to the SEA shall be 
determined on the basis of general princi ples of goods valuation for customs purposes 
of the General Agreement on Tariffs and Trade of 1994 (Article VII); 
− Agreement on Common Rules for Licensing of Import and Export of Goods with 
unification of the list of goods import and export of which shall be subject to 
licensing.  The Agreement is aimed to ensure non-discriminative procedure of 
licensing of export and import of goods in accordance with international norms; WT/ACC/KAZ/66 
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  − Agreement on Simplification of the Proce dure of Customs Clearance and Customs 
Control at Frontiers between the Countries – Parties to the Customs Union of 17 February 2000 (28 October 2003); and 
− Agreement on Uniform Goods Nomenclature of External Economic Activities of the 
Countries – Parties to the Agreement on Establishment of the SEA of 19 September 2003. 
4. In the field of TBT and SPS: 
− Agreement on Coordinated Policy in the Fiel d of Technical Regulation, Sanitary and 
Phytosanitary Measures, in acco rdance with which the Parties shall agree to adhere to 
rules and principles of the WTO Agreement on Technical Barriers to Trade and the Agreement on the Application of Sanita ry and Phytosanitary Measures.    
Eurasian Economic Community (EAEC)
 
The "Agreement on Customs Union and Single Ec onomic Area" was signed on 26 February 1999 
with the Russian Federation, the Republics of Be larus and Tajikistan, and the Kyrgyz Republic. 
In accordance with the Agreement, its  Members apply free trade regime in full, with no tariff or non-
tariff restrictions on the basis of bilateral a nd multilateral Free Trade Agreements (FTAs).   
According to FTAs, the Parties do not apply cust oms duties and quantitative restrictions on import 
and export of goods originated from the customs terr itory of one Party and destined for the customs 
territory of another Party.    
In order to formally establish the single economic  area and customs union, the "Agreement on 
Establishment of the Eurasian Economic Co mmunity" was signed on 10 October 2000 and was 
entered into force on 30 May 2001.  Its membersh ip includes Belarus, Kazakhstan, Kyrgyzstan, 
Russia and Tajikistan and Uzbekistan (joined in January 2006). 
According to the request of the administrations of  Moldova and Ukraine these states were granted the 
observer status in the EAEC.   
The main objectives of the EAEC are fostering economic cooperation between entities of countries-
members; unification of foreign trade, customs policies and trade remedies; cooperation between 
financial and banking systems; cooperation in social  and humanitarian areas; and cooperation in the 
field of legal regulation.  
EAEC Agreements: 
1. In the field of customs and tariffs regulating,  aimed at creating conditions for establishment of 
the Customs Union: 
− Agreement on a Single Customs Tariff of the Customs Union Member States 
(17 February 2000); 
− Protocol on the Mechanism of Applying Special Safeguards, Anti-Dumping and 
Countervailing Measures in Trade of the Customs Union Member States 
(17 February 2000); 
− Protocol on Amendments and Addenda in  the Protocol on the Mechanism of 
Applying Special Safeguards, Anti-Dumpi ng and Countervailing Measures in Trade 
of the Customs Union Member States of 17 February 2000 (28 October 2003);  WT/ACC/KAZ/66 
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  − Protocol on Customs Control over the Re -Export of Commodities Originated from 
the Territory of States - Parties to the Agreement on Customs Union and Single Economic Area of 26 February 1999 and Exported to Third Countries (22 May 2001); 
− Protocol on the Procedure for Introduction and Application of Export Customs Duties 
by the Customs Union Member States (22 May 2001); and 
− Agreement on Uniform Goods Nomenclature of External Economic Activities of the 
Eurasian Economic Community (20 September 2002). 
2. In the field of Non-Tariff Regulation: 
− Agreement on Common Non-Tariff Regulation Measures when Establishing the 
Customs Union (22 October 1997); and 
− Protocol on Common Rules for Licensing of Commodities Import and Export as well 
as Certain Types of Related Activities of the Eurasian Economic Community 
Member States (25 October 2004). 
3. In the field of TBT and SPS 
− Protocol on uniform procedure of appl ying technical, medical, pharmaceutical, 
sanitary, veterinary, phytosanitary and ecological standards, norms, rules and 
requirements with regard to goods imported to the states – partie s to the agreements 
on Customs Union (28 January 1999). 
The work on implementation of provisions of the "Pri ority directions of cooperation in the framework 
of the Eurasian Economic Community for 2003-2006 and following years" has been in process within 
the EAEC.  It provides for elaboration and approval of international legal documents in the field of 
external trade policy on establishment of Cust oms Union including Single Customs Tariff, Common 
Services Market, common non-tariff regulation measures,  unification of trading regimes with regard 
to third countries, harmonization of legislations of EAEC member states in the field of technical 
regulation and others.