RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/KAZ/57 
24 January 2005 
 (05-0277) 
Working Party on the 
Accession of Kazakhstan Original:   English 
 
 
 
ACCESSION OF KAZAKHSTAN 
 
Additional Questions and Replies  
 
 
 The following submission, dated 14 January 2005, is being circulated at the request of the Delegation of the Republic of Kazakhstan.   
_______________ 
  WT/ACC/KAZ/57 
 Page i 
 
 
 TABLE OF CONTENTS 
 
ECONOMIC POLICIES.............................................................................................................. .........1  
- Monetary and Fiscal Policy..................................................................................................... .1 
-  Foreign Exchange and Payments ............................................................................................3  
-  Investment Regime.............................................................................................................. ......9  
-  State Ownership and Privatization .......................................................................................11  
-  Pricing Policies ............................................................................................................... .........14  
- Competition Policy............................................................................................................. .....29  
FRAMEWORK FOR MAKING AN D ENFORCING POLICIES .................................................30  
POLICIES AFFECTING TRADE IN GOODS ................................................................................31  
-  Trading Rights (the right to import and export) .................................................................31  
A. IMPORT REGULATION......................................................................................................41  
-  Customs tariff................................................................................................................. .........41  
- Tariff rate quotas, tariff exemptions.....................................................................................42  
- Fees and charges for services rendered.................................................................................45  
-  Application of internal taxes to imports ...............................................................................46  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............50  
-  Import Licensing............................................................................................................... ......50  
-  Customs valuation.............................................................................................................. .....53  
-  Rules of origin ................................................................................................................ .........57  
- Other customs formalities ...................................................................................................... 59 
-  Preshipment inspection ......................................................................................................... .60 
B. EXPORT REGULATIONS ...................................................................................................61  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........61  
-  Export rest rictions ............................................................................................................ ......64  
-  Export subsidies ............................................................................................................... .......65  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................67  
- Industrial policy, including subsidies....................................................................................67  
-  Technical barriers to trade .................................................................................................... 73 
-  Sanitary and phytosanitary measures...................................................................................80  
-  Trade-related investment measures ......................................................................................86  
-  State-trading entities......................................................................................................... ......89  
-  Free zones, special economic areas........................................................................................89  
- Government procurement......................................................................................................90  WT/ACC/KAZ/57 
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 - 
 Transit........................................................................................................................ ..............91  
-  Agricultural policies.......................................................................................................... ......93  
TRADE-RELATED INTELLECTUAL  PROPERTY REGIME....................................................94  
General........................................................................................................................ ..........................94  
Substantive Standards of Protection, Including Procedures for the Acquisition and 
Maintenance of Intellect ual Property Rights .......................................................................95  
- Copyright and related rights..................................................................................................9 5 
- Trademarks, including  service marks...................................................................................96  
- Geographical indications, including appellations of origin.................................................99  
- Industrial designs............................................................................................................. .....100  
- Patents........................................................................................................................ ............102  
- Requirements on undisclosed information, including trade secrets and test data..........107  
Enforcement .................................................................................................................... ...................109  
- Civil judicial procedures and remedies...............................................................................109  
- Provisional measures ........................................................................................................... .114 
- Special border measures.......................................................................................................1 15 
- Criminal procedures............................................................................................................ .117 
POLICIES AFFECTING TRADE IN SERVICES.........................................................................118  
Transparency................................................................................................................... ...................118  
Trade Agreements............................................................................................................... ...............120  
ANNEX 1 ........................................................................................................................ ....................123  
ANNEX 2 ........................................................................................................................ ....................127  
ANNEX 3 ........................................................................................................................ ....................138  
ANNEX 4 ........................................................................................................................ ....................145  
ANNEX 5 ........................................................................................................................ ....................146  
ANNEX 6 ........................................................................................................................ ....................149  
ANNEX 7 ........................................................................................................................ ....................151  
ANNEX 8 ........................................................................................................................ ....................159  
ANNEX 9 ........................................................................................................................ ....................161  
 
  WT/ACC/KAZ/57 
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 ECONOMIC POLICIES  
- Monetary and Fiscal Policy  Question 1 Which corporate tax rate is paid by companies extracting oil and gas and other minerals, the 
normal rate of 30 per cent, or the reduced rate  for those "using land as the main production 
medium"? 
Answer:
 
For taxpayers extracting oil, gas, and other minera l resources the corporate tax represents 30 per cent 
in accordance with Article 135-1 of  the Tax Code of Kazakhstan. 
The 10 per cent corporate tax is established for taxpayers for whom the la nd is the main production 
factor, i.e. for producers of agricultural products. 
Question 2 
What is the "social tax" applied regressively from 20 per cent to 7 per cent?   
Answer:  
The social tax was introduced to cover budgetary expenses on social protection of the population. 
Income received by an employee from its employer is subject to social tax. 
The social tax is applied to: - legal entities resident in Kazakhstan as well as non-residents conducting business in 
Kazakhstan through permanent establishment, br anches and representative offices of foreign 
legal entities. In particular, taxation appl ies to employer's expenses paid as:   
- resident employees' income in cash or in ki nd, in the form of material, social, or other 
benefits;  
- non-resident employees' income for their work in Kazakhstan within the framework 
of  individual labour contracts or other civil contracts; as fees to executives and/or other payments to the management (members of board of directors, or other executive 
boards) for implementation of assigned managerial functions pertaining to the 
resident legal entity; as bonuses paid to recover living expenses in Kazakhstan; as 
reimbursement of expenses incurred by the employer or contractor to recover the cost of material, social or whatsoever benefits of non-resident natural persons working in 
Kazakhstan, including expenses for meals, liv ing, education of children in schools, 
recreation/vacations of their families, and pa yments to the natural persons by onerous 
service contracts; and 
- entrepreneurs, private notary officers and lawy ers:  the taxation applies to the number of 
employees, including taxpayers themselves. 
Legal entities resident in Kazakhstan as well as non-residents making business through a permanent 
establishment, branches and representative offices of foreign legal entities shall pay the social tax at 
the following rate: WT/ACC/KAZ/57 
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  Taxed employee's income amount Rate 
1 15 annual calculation indices and less 
(165,420 tenge and less) 20% of taxed income amount (33,084 tenge and less) 
2 From 15 to 40 annual calculation indices 
(from 165,420 to 441,120 tenge) The amount of tax from 15 annual calculation indices + 
15% of the sum exceeding that amount (33,084 tenge + 
15% of the sum exceed ing 165,420 tenge) 
3 From 40 to 200 annual calculation indices 
(from 441,120 to 2,205,600 tenge) The amount of tax from 40 annual calculation indices + 
12% of the sum exceeding that amount (74,439 tenge + 
12% of the sum exceed ing 441,120 tenge) 
4 From 200 to 600 annual calculation 
indices (from 2,205,600 to 6,616,800 tenge) The amount of tax from 200 annual calculation indices 
+ 9% of the sum exceeding th at amount (286,177 tenge 
+ 9% of the sum exceed ing 2,205,600 tenge) 
5 Over 600 annual calculation indices 
(over 6,616,800 tenge) The amount of tax from 600 annual calculation indices 
+ 7% of the sum exceeding th at amount (683,185 tenge 
+ 7% of the sum exceed ing 6,616,800 tenge) 
 
Legal entities resident in Kazakhstan as well as non-residents making business through a permanent 
establishment, branches and representative offices of foreign legal entities shall pay the social tax for 
foreign administrative and executive specia lists as well as foreign specialists with 
technical/engineering skills at the following rates: 
 Taxed employee's income amount Rate 
1 40 annual calculation indices and less 
(441,120 and less) 11% of the taxed income amount (48,523 tenge and 
less) 
2 From 40 to 200 annual calculation indices 
(from 441,120 to 2,205,600 tenge) The amount of tax from 40 annual calculation indices + 
9% of the sum exceeding that amount (48,523 tenge + 
9% of the sum exceed ing 441,120 tenge) 
3 From 200 to 600 annual calculation 
indices (from 2,205,600 to 6,616,800 tenge) The amount of tax from 200 annual calculation indices 
+ 7% of the sum exceeding th at amount (207,326 tenge 
+ 7% of the sum exceed ing 2,205,600 tenge) 
4 Over 600 annual calculation indices 
(over 6,616,800 tenge) The amount of tax from 600 annual calculation indices 
+ 5% of the sum exceeding th at amount (516,110 tenge 
+ 5% of the sum exceed ing 6,616,800 tenge) 
 
Question 3 
Please clarify that the "rent tax" rate is applied on a sliding scale (1 per cent to 33 per cent of 
the blended "market price" of oil), with the level of application increasing as the price of a 
barrel of oil increases?  Where is the "rent tax" found in Table 2 of WT/ACC/KAZ/50? 
We note that according to Table 2 of WT/ACC /KAZ/50 "taxes imposed on international trade" 
account for 4.2 per cent of total government reve nues.  Does this include tariffs, VAT, excise 
taxes?  Anything else? 
Answer:  
In accordance with paragraph 1 of Article 304-2 of the Tax Code of the Republic of Kazakhstan, the 
rent tax for exported crude oil is calculated based on the value of exported crude oil, which is set 
based  on the actual volume of exported crude o il and it's market price (depending on oil quality) 
excluding transportation costs. 
Paragraph 2 of Article 304-2 of the Tax Code defines the market price for exported crude oil by 
adding the average weighted price prevailing among world  market prices on similar sorts of crude oil 
in the reported period (daily).  Thus, in accordance  with the Article 304-4 of the Tax Code of the  WT/ACC/KAZ/57 
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 Republic of Kazakhstan, the rent tax rate is est ablished on a sliding scale depending on world prices 
for crude oil. 
In accordance with the Draft Law of Kazakhstan "On Addenda and Amendmen ts to the Tax Code" 
(which is currently being reviewed in the Parliame nt), the procedures for calculation and payment of 
rent tax for the export of crude oil and gas conde nsate are separated from Section 10 "Taxation of 
Subsurface Users" and added into a separate Secti on 9-1 "Rent Tax On the Export of Crude Oil and 
Gas Condensate".  Thus, not only users of subsurface  resources, but also all legal entities and natural 
persons engaged in the export of crude oil and gas condensate will be subject to rent tax.  
Under Article 304-4 of the Tax Code of Kazakhstan, the amount of the rent tax for the export of crude 
oil shall be defined as follows: 
Quotation Level Market Price Rate 
US$ 19 per barrel 1% 
US$ 20 per barrel 4% 
US$ 21 per barrel 7% 
US$ 22 per barrel 10% 
US$ 23 per barrel 12% 
US$ 24 per barrel 14% 
US$ 25 per barrel 16% 
US$ 26 per barrel 17% 
US$ 27 per barrel 19% 
US$ 28 per barrel 21% 
US$ 29 per barrel 22% 
US$ 30 per barrel 23% 
US$ 31 per barrel 25% 
US$ 32—33 per barrel 26% 
US$ 34—35 per barrel 28% 
US$ 36 per barrel 29% 
US$ 37 per barrel 30% 
US$ 38—39 per barrel 31% 
Over US$ 40 per barrel 33% 
 In 2003, the share of revenues from foreign trade represented 4.2 per cent of total state revenues, 
which included import and export customs duties; cu stoms duties applied at uniform rate for goods 
imported by natural persons; income received fo r services rendered by customs (excluding VAT, 
excise and other taxes).  In January-September 200 4, the share of revenues from international trade 
represented 3.9 per cent of total state revenue. 
-  Foreign Exchange and Payments Question 4 Questions 8 and 9 of document WT/ACC/KAZ/50:  Would it be correct to say that the 
Government currently does not apply any of the restrictions, including licensing requirements, 
authorized by Article 3 of the Currency Law?   
Answer:
 
Article 3 of the Law of Kazakhstan "On Currency Re gulation" (hereinafter referred to as the Law) 
entitles President of the Republic of Kazakhstan an d the National Bank with the right to introduce 
additional restrictions in addition to the existi ng currency regulation regime in case of emergency 
and/or under potential security threat to the national economy. WT/ACC/KAZ/57 
Page 4  
 
 The regime on mandatory sale of export currency pro ceeds, stipulated in paragraph 2 of Article 3 of 
the Law, was temporarily introduced in practice la st time in April 1999, when the National Bank 
shifted to the new currency exchange rate regime , and discontinued in December 1999.  No other 
restrictions, stipulated in Article 3 of the Law,  ha d been introduced since the Law  became effective.  
The existing licensing requirements originate from the provisions of the Law "On Currency 
Regulation", which defines the principles and proc edures for currency transactions in Kazakhstan (a 
copy of the Law is available from the Secretariat through document WT/ACC/KAZ/57/Add.1). 
Question 5 
Are the forms of restriction described in this sect ion cover all such restrictions provided for in 
Article 3?  Does that mean that the requirement s to register the importation and/or to get a 
licence for the foreign exchange are not currently operational? 
Answer:
 
In addition to Article 3 of the Law, the repli es provided to Questions 8 and 9 of WT/ACC/KAZ/50 
cover the existing requirements of the current currency regime, which are based on the following 
principles: 
- Repatriation - if a non-resident fails to suppl y goods (services), the export proceeds or import 
prepayment shall be transferred to the account s of residents in authorized Kazakh banks 
within 180 days or within 365 days for certain  categories of exported products (paragraphs 5 
and 6 of Article 1-2 of the Law).  The foreign currency obtained by resident, as a loan from non-resident, shall be also transferred to the r esident's account in an authorized Kazakh bank. 
All payments and transfers relate d to transactions between residents and non-residents shall be made 
in the currency of the Republic of Kazakhstan only (paragraph 1 of Article 7 of the Law) except for 
cases stipulated in legal acts of the National Bank of Kazakhstan as well as in the Tax Code and the 
Customs Code. 
- Payments for transactions between residents a nd non-residents shall be made in any currency, 
the parties concerned agreed upon, (paragraph 5 of Article 7 of the Law) through authorized 
banks and organizations (paragraph 1 of the Ru les for Currency Transactions in the Republic 
of Kazakhstan). 
- Authorized banks shall make international ba nk payments and transfers within current 
operations with no restrictions (par agraph 1 of Article 11 of the Law). 
- International bank payments and transfers made within capital transactions shall be made in 
accordance with the procedure set forth by th e National Bank (paragraph 2 of Article 11 of 
the Law). 
The procedures for payments and transfers made  within capital transactions (including, under 
paragraph 4 of Article 1-2 of the Law, payments  for export/import operations for goods (services) for 
the period exceeding 180 days) requires from resident s to obtain a licence or registration certificate, 
which allows: 
- residents, who are parties to external economic deals, to make currency transactions that go 
beyond the requirements, stipulated  in paragraphs 1-3 above; and 
- the National Bank to obtain timely reliable in formation (supported with documents) on the 
most important and large-scale currency transactions for the purpose of statistical data collection and analysis of the internationa l balance of payment and foreign debt, of 
excessively detailed and operative -regular statistical reports fro m banks and other residents.  WT/ACC/KAZ/57 
 Page 5 
 
 
 For instance, the licence issued  by the National Bank of Kazakhstan (NBK) for export-import 
transactions allows residents to provide trade loans to foreign partners for the period defined by the 
terms of the export-import deal, with no account ability for violation of the above mentioned 
repatriation requirement. The resident itself can define  the time frame, necessary for receipt of export 
proceeds or return of the prepayment by simply maki ng a brief justification of the term.  In addition, 
the National Bank obtains the primary information on the foreign trade statistics, terms of contracts 
and international payments and accounts terms. 
Question 6 
The response to Question 6 states that licensing ru les are laid out in Annex 1 of the Questions 
and Replies document (Annex VI of WT/ACC/SPEC/KAZ/8/Rev.1).  These licensing 
requirements, however, appear to be related ex clusively licensing the right to import or to 
export specific goods or categories of goods.  They do not appear related to any financial 
operations.  The licensing requirements laid out in the response to Question 10 go through the 
National Bank, not through the Ministry of Trad e and Industry, and do not appear to be the 
same requirements as those listed in Annex 1. 
Please clarify. Answer:
 
Annex 1 to document WT/ACC/KAZ/50 (and similar Annex VI to the Factual Summary) indeed 
provides information on licensing requirements for expor t and import of products, which is within the 
competency of the Ministry of Industry and Trade and Ministry of Finance (for a limited number of specific group of products). 
Under the Law No. 2200 "On Licensing" of 17 Ap ril 1995 (WT/ACC/KAZ/4 refers), licensing 
requirements extended to the following types of transactions with currency valuables: 
- retailing and provision of services in cash for foreign currency; 
- opening of accounts by residents, excluding opening of accounts by:  
- banks;   
 - resident natural persons in foreign banks  in OECD member-states with the required 
rating of one of the rating agencies; and 
 - natural persons, temporarily residi ng outside Kazakhstan, for purposes of 
employment, education, medical treatment, or recreation. 
- investments of residents placed abroad, excluding:  
- dealing bank operations; and 
 - investments into securities of non-residents, meeting requirements set out in the 
currency and banking legislation of Kazakhstan; investments into authorized capitals 
of juridical persons of OECD member-states and/or states, who are parties to international agreements on facilitation a nd protection of investments, signed and 
ratified by the Republic of Kazakhstan,  unde r which the investing resident will have 
the right to 50 per cent or more of voting shares (50 per cent or more of votes) of an 
investment object; 
- transfers by residents to non-residents as paym ent for transactions transferring property rights 
to real estate, with the exception of  the property of the same status; WT/ACC/KAZ/57 
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 - transfers of residents to non-residents made as payment for importation of goods, works, and 
services that requires advance payments for a period of more than 180 days; as well as 
extension of the deadline for receipt of earni ngs in foreign currency made as payment for 
exportation of goods, works, services by residents for a period of more than 180 days after the 
actual date of exportation.  
- receipt by residents of payments from non-r esidents for export of goods, included in the 
Schedule developed by the Government of th e Republic of Kazakhstan, in cases, when the 
period between the date on which the goods were exported and the date on which export 
receipts were collected, exceeds 365 days; 
- granting by residents (other than banks) of loan s to non-residents for a period of more than 
180 days; 
- crediting foreign currency, received by resident as a loan granted by a non-resident, to an 
account of a third-party, unless there was a provision to the contrary in the currency legislation of the Republic of Kazakhstan;  
- transfer of currency valuables to beneficial ownership, effected by a resident to a non-
resident. 
Licensing requirements for the above mentioned opera tions are described in response to Question 10 
(paragraph 15 of document WT/ACC/SPEC/KAZ/8) .  
Licensing requirement applies only to residents-partie s to foreign economic deal s.  In case a resident 
does not have a licence of the NBK, the authori zed banks are not allowed to carry out currency 
transactions.  No deposit requirements are necessary to obtain a licence.   
As to the response to Question 6 of document WT/ACC/KAZ/50, it should be underlined that the 
licensing requirements set forth in paragraph 15 of the document WT/ACC/SPEC/KAZ/8 refer to the 
control over capital transactions and establish the pr ocedures stipulated in paragraph 9 of the same 
document (see the response to the previous question). 
In addition to response to Question 10 of the doc ument WT/ACC/KAZ/50 concerning the approval of 
licensing requirements by the IMF, it should be noted  that Kazakhstan submit s annual reports to the 
IMF on the applied currency regime and currency r estrictions. For instance, the currently applied 
licensing requirements have been covered in the report for the year 2003 and extensively discussed 
with regular IMF missions to Kazakhstan.  Up to  date, the IMF have not made any comments with 
regard to incompliance of Kazakhstan's currency regi me with Article VIII or any other provisions of 
the IMF Agreement. 
Question 7 What/who is a "resident" for the purposes of seeking a licence from and registering the 
importation with the National Bank? 
Answer:
 
Requirement to obtain a licence applies only to residents, who are parties to foreign economic deals. 
A definition of "a resident" stipulated in Article 1-1 of the Law "On Currency Regulation" is used in 
order to implement norms of the currency legisla tion, including obtaining the licence or registration 
certificate for import operations. 
According to Article 1 of the Law of the Re public of Kazakhstan "On Currency Regulation",  
1)  Residents are:  WT/ACC/KAZ/57 
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 - natural persons with the domicile on the Repub lic of Kazakhstan, including the persons 
temporarily living abroad or employed as officials of the Republic of Kazakhstan abroad; and 
- juridical persons of the Republic of Kazakhs tan with the domicile in the Republic of 
Kazakhstan, as well as their branches and repr esentative offices located either in Kazakhstan 
or abroad. 
2) Non-residents include all other juridical pers ons and natural persons located either in the 
Republic of Kazakhstan or abroad, as well as their branches and representative offices, not covered in 
the definition of "resident". Most specifically, non-residents are: 
- foreign citizens, including those temporary living  in Kazakhstan, excluding foreign citizens 
possessing a permanent residency right in the Republic of Kazakhstan; 
- juridical persons, established in accordance with the foreign legislation, located outside the 
territory of the Republic of Kazakhstan, as well as their branches and representative offices 
located both in the territory and outside of the Republic of Kazakhstan; 
- diplomatic, trade and other official representa tive offices of foreign states in the Republic of 
Kazakhstan; and 
- all other juridical and natural persons not defined by this Law as residents. 
Branches and representative offices of foreign juridi cal persons, working on the territory of the 
Republic of Kazakhstan, are considered as non-residents.    
Question 8 
Paragraph 21 records that Kazakhstan's current foreign exchange and currency liberalization 
plans are contained in the Currency Regime Li beralization Concept, approved by Resolution 
No. 369 of the National Bank Board of 11 September 2002.   
Please include information from the response to Question 15 on the draft Currency Regime 
Liberalization Program for the period of 2005-2007.   
Does Kazakhstan intend to eliminate the licen sing and registration requirements with the 
National Bank?  If so, please provide a timeline for this liberalization. 
Answer:  
The Government of the Republic of Kazakhstan approved the Program for Liberalization of the 
Currency Regime in the Republic of Kazakhstan for 2005-2007 by its Resolution  No. 705 as of 
25 June 2004.  The adopted Program for Liberalizat ion of the Currency Regime in the Republic of 
Kazakhstan for 2005-2007 includes the measures laid  out in the response to Question 15 of the 
document WT/ACC/KAZ/50.  
In order to implement the Liberalization Program for 2005-2007, a new draft Law of the Republic of 
Kazakhstan "On Currency Re gulation and Control" has been developed. The draft law has been 
submitted to the Parliament of Kazakhstan by th e Resolution of the Government No. 1007 as of 
30 September 2004 and is being reviewed. 
The draft Law of the Republic of Kazakhstan "On Currency Regulation and Control" (hereinafter 
referred to as the draft Law) stipulates the following: 
- retaining the existing repatriation requirement (see Section I above) until the year 2007.  From 
2007 and onwards the repatriation re quirement will require that a resident ensures a transfer WT/ACC/KAZ/57 
Page 8  
 
 of export proceeds or import prepayment to the bank account in one of the Kazakh banks 
within the time-period stipulated by the foreign trade contract; 
- removal of the requirement for a resident to tr ansfer a loan in foreign currency received from 
a non-resident to the account in one of the Kazakh banks; 
- expansion of the list of transactions among reside nts, payments for which can be made in  
foreign currency;  
- expansion of the list of transactions among residents without requirement that such 
transactions should be undertaken through authorized banks; and 
- simplification of procedures for international bank payments by:  (i) reducing the list of 
capital transactions subject to licensing by  the year 2007; and as from 2007 and onwards 
(ii) complete elimination of licensing requirement for capital transactions; and 
(iii) replacement of registration requirements fo r certain kinds of currency transactions with 
the notification regime. 
The notification on currency transaction will be submi tted to the NBK by a resident, who is a party to 
currency transaction or by Kazakh bank serving such transaction after completion of the transaction. 
As a result, the notification regime in contrast to  the registration requirement will provide residents 
with the opportunity to conduct currency transac tions without any proof or supporting documents 
from the NBK. 
As of 2007 and onwards, the National Bank will only issue licenses for the transactions made in cash 
in foreign currency, such as:  (i) exchange transac tions by exchange bureaus; (ii) retailing at duty free 
shops; and (iii) international car go transportation services.  Thereafter, the existing licensing and 
registration requirements with regard to capital transactions (paragraph 15 of WT/ACC/SPEC/KAZ/8, 
paragraph 17 of WT/ACC/SPEC/KAZ/8/Rev.1, an d paragraph 17 of WT/ACC/SPEC/KAZ/8) will be 
changed as shown in the attached table (see Annex 1). 
Loans issued by residents to non-residents for th e period exceeding 180 days will remain subject to 
licensing requirement until the year 2007 (until trans ition to the repatriation principle by contractual 
term). 
The registration requirement with regard to dir ect investments, financial loans for the period 
exceeding 180 days, and purchase of exclusive intell ectual property rights will be retained as of the 
year 2007 and onwards, due to complexity of these transactions in terms of accurate classification in 
the balance of payment statistics.  For large-scale transactions, the National Bank will refer to primary 
source of information (contract) in order to accurate ly reflect both assets and liabilities of residents in 
the balance of payment account. 
Monetary loans and foreign investments represent key components of the balance of payment account 
and foreign debt of Kazakhstan. Along with export proceeds, they also serve as the main sources of 
foreign currency inflow to Kazakhstan.  In this regard, information submitted by residents in the 
course of registration (including registration of comm ercial loans) is used as a primary source of data 
for conducting analysis and prognosis of the balan ce of payment and foreign debt statistics, and for 
evaluation of sustainability of foreign economic policy of the country.  
At the same time, taking into account the position of some Working Party members, the National 
Bank is reviewing the possibility of removing as  of the year 2007 and onwards the registration 
requirement towards commercial loans, which require transaction passport in order to ensure their  
compliance with the repatriation requirement based on the contractual term.  
Therefore, banks' data on payments made and cu stoms agency's information on the movement of 
goods based on transaction passports will be submitted directly to the National Bank for assessment of 
assets and liabilities within  commercial loans.  WT/ACC/KAZ/57 
 Page 9 
 
 
 All other commercial loans will still be subj ect to registration as of 2007 and onwards. 
-  Investment Regime  
Question 9 Paragraph 30 of WT/ACC/SPEC/KAZ/8/Rev.1 states "Pursuant to Article 65 of Law No. 242-II 
"On Architectural, Town-Building and Construction  Activities in the Republic of Kazakhstan" 
of 16 July 2001, the share of foreign participat ion in joint ventures' charter capital could not 
exceed 49 per cent." 
Does that mean that foreign investors cannot ow n more than 49 per cent of the equity of any 
joint venture, in any sector, e.g., in servi ces enterprises?  If not, please clarify. 
Is the list of restrictions on foreign investme nt in paragraph 30 complete?  Could Kazakhstan 
list, for the Working Party, the exhaustive list of industries, services sect ors, or enterprises in 
which foreign investment is prohibited or restricted? 
Answer:
 
In accordance with the Law No. 42 -II "On Architectural, Town-Building, and Construction Activities 
in the Republic of Kazakhstan" of 16 July 2001 the sh are of foreign ownership in the charter capital of 
juridical persons of Kazakhstan may not exceed 49 pe r cent.  This restriction applies only to joint 
ventures in architectural, town-building and constr uction services.  At the same time, branches of 
foreign juridical persons could obtain a one-time licence, which allows to work on one construction 
site at a given time.   
In accordance with Article 36 of the Law No. 136-I "On Pensions in the Republic of Kazakhstan" of 
20 July 1997 the total charter capital of open saving pension funds with foreign participation may not 
exceed 25 per cent of the total declared charte r capital of all open sav ing pension funds in 
Kazakhstan. 
In accordance with the Article 35 of the Law "On insurance activity" dated 18 December 2000, non-
residents could establish insurance (reinsurance) co mpanies in the form of juridical persons of 
Kazakhstan under the following conditions:  
- The total paid-up capital of insurance institutions , with foreign participation, may not exceed 
25 per cent of the aggregate paid-up capital of  insurance institutions of Kazakhstan (for non-
life insurance companies); and 
- The total paid-up capital of insurance institutions , with the participation of non-residents of 
Kazakhstan, may not exceed 50 per cent of the aggregate paid-up capital of insurance 
institutions of Kazakhstan (for life insurance companies). 
In accordance with the Law of the Republic of K azakhstan "On banks and banki ng activity",  the total 
paid-up authorized capital of banks, with foreign participation, may not exceed 50 per cent of the 
aggregate paid-up capital of the banks of Kazakhstan. 
As provided by the Law of the Republic of  Kazakhstan "On communications" No. 568 as of 
5 July 2004, foreign juridical and natural persons, persons without c itizenship have no right to possess 
in direct and/or indirect ownership, use, dispose and/or operate with more than 49 per cent of stocks 
of juridical person owning the terrestrial (cable, including optical fibre, radio relay) communication 
lines and executing activity in the field of telecommunications as the operator of long distance and/or WT/ACC/KAZ/57 
Page 10  
 
 international communication. The abovementioned r estriction applies only towards the operators of 
terrestrial lines, providers of long distance and international communication. 
In accordance with the Law of the Republic of K azakhstan "On mass media", with the purpose of 
establishing and strengthening the national informati on protection system, including state information 
resources as well as public interests, there is a norm restricting participation of foreign juridical and 
natural persons, persons w ithout citizenship to possess, use, dispo se or operate more than 20 per cent 
of stock/share of juridical person owning a mass- media resource or conducting activity in the mass 
media sector in Kazakhstan.  
Question 10 
Please list the priority investment sectors provi ded in Government Resolution "On Some Issues 
of Enforcing the Law "On Investments" of 8 May 2003 No. 436, that are eligible for preferential 
investment treatment. 
Answer:
 
The list of the priority investment projects at the sub-sectors level, for which certain tax preferences 
are granted, are approved by the Government Reso lution dated 8 May 2003 No. 436 (a copy of the 
List is provided in Annex 2) 
The conditions and requirements for receipt of tax pr eferences by an investor are described in Article 
15, 16, and 17 of the Law "On investments" (a copy of the Law is available from the Secretariat through document WT/ACC/KAZ/57/Add.1). 
Question 11 
Paragraph 30:  The representative of the Governme nt of the Republic of Kazakhstan stated that 
"there could be certain areas in which investment  activities were limited or banned because of 
national security considerations".  The paragraph then lists limitations on the aggregate charter 
capital of banks operating with fo reign capital participation.  Is this limitation taken because of 
national security concerns, and if so can the government of the Republic of Kazakhstan please 
explain the link between national security concerns and limitations on foreign bank 
participation in the Kazakh economy?  
Answer:
 
The limitation on the maximum foreign share in th e aggregate charter capital of all second tier banks 
is not linked to the national security concerns. 
This measure has been introduced w ith the aim to develop and strengthen local  financial institutions. 
Due to limited experience, relatively low capitalizat ion and lack of skilled management, the national 
financial sector could not compete on a fair basis  with foreign banks.  Hence, the requirement on the 
maximum foreign capital share in the aggregate ch arter capital of all second tier banks has been 
introduced.  This limitation ensures the optimal ration of foreign and local investors.   WT/ACC/KAZ/57 
 Page 11 
 
 
 -  State Ownership and Privatization 
Question 12 Question 24 asks "Does the state retain partial ownership in firms and enterprises slated for 
privatization?"  The response does not answer the question.  Please describe, as appropriate, how the state retains partial ownership in privatised firms. 
Answer:
 
In accordance with the legislation of the Republic of Kazakhstan the state can sell state owned objects 
in full or partially based on its strategic interests and favourable market conditions.  
In accordance with the Decree of the President of  the Republic of Kazakhsta n, having the power of a 
Law, "On privatization" dated 23 December 1995, the state retains no ownership in privatized 
organizations (companies). 
In cases when state owned shares in charter capitals of limited partnerships or joint stock companies 
are privatized partially, i.e. not the total state ow ned shares, the state owns the rest-not privatized- 
shares.  
Moreover, in accordance with the abovementioned Decree, privatization of state-owned shares in 
charter capitals of limited partne rships and joint stock companies is done in compliance with the 
Kazakh legislation on joint stock companies, limited partnerships and securities.    
Question 13 
Paragraph 39:  Please list the areas that will not be subject to privatization, such as state 
property exempted from privatization until 2006, as approved by Presidential Decree No. 422 of 
28 July 2000 and Government Resolution No. 1587 of 24 October 2000. 
Answer:  
According to the Decree of the Pr esident of the Republic of Kazakhstan No. 422 "On the List of State 
Property Objects Exempted from Privatization" of 28 July 2000 (available from the Secretariat 
through document WT/ACC/KAZ/57/Add.1), the following forms of state property were exempted from privatization or its preliminary stages:  
- Land (excluding land that may be privately ow ned under conditions a nd within limits set by 
the legislation of the Republic of Kazakhsta n), subsurface and water resources, flora and 
fauna; 
- Natural zones under special protection; 
- Military organizations and sites, including propert y thereof, required to ensure  the national 
security of the Republic of Kazakhstan;  
- Main railroads, Republican highways, forming a pa rt of the network of international routes; 
and those designed for defence purposes, including accompanying engineering structures; navigable waterways, lighthouses, navigation devices and seamarks, regulating navigation 
and ensuring its safety; 
- Main oil and gas pipelines, and interregional electric networks of 220,500 and 1,150 kW; 
- Water reservoirs and hydraulic works, wate r control pivots, dams and barrages on water 
sources; 
- First-aid medical organizations operating in ru ral areas, specialized medical centres (blood 
banks, maternity welfare centres, centres of radiological medicine, oncology centres; WT/ACC/KAZ/57 
Page 12  
 
 tuberculosis, HIV and AIDS centres; STD centr es; mental hospitals), as well as other 
organizations and centres, where they act as the only source of medical services in a specific area; 
- Social protection services, children's homes,  orphanages, nursing homes, rest homes, 
hospitals and health resorts for the disabled, ve terans of the World War II and individuals of 
the same status, children, and the aged; 
- Organizations of secondary education, implem enting the constitutional rights of every citizen 
of the Republic of Kazakhs tan to education; and 
- Historic and cultural sites protected by the State.  
The Government Resolution No. 1587 "On the List of State Property Objects Exempted from 
Privatization" of 24 October 2000 (availa ble from the Secretariat through document 
WT/ACC/KAZ/57/Add.1) contains: 
- the schedule of non-privatisable state property (including preliminary stages of privatization 
process) until 2006; and 
- the schedule of joint-stock companies with non-privatisable public shares (including 
preliminary stages of privatization process) until 2006.  
Question 14 
Please list the largest state owned firms, and indicate their lines of business.   
Answer:
 
The Government Resolution No. 182 "On Approval of the List of National Companies" of 
16 February 2004 provides the list of 12 national companies: 
 Name Main Lines of Business 
1 Joint-Stock Company (JSC) 
"National Company 'KazMunaiGaz"   Participation in implementation of the state oil and gas policy, 
ensuring efficient use of national oil and gas resources, participation in development of the strategy on use, reproduction 
and further expansion of oil and gas resources, representation of 
Kazakhstan in production sharing agreements, supp ly of oil and 
gas transportation services, etc. 
2 Open Joint-Stock Company (OJSC) 
"Kazakh Company Electric 
Network System Administration"  Wholesale power supply throug h national electric network, 
technical maintenance and repair of the network, ensuring 
effective work of the single electric network system of 
Kazakhstan, etc. 
3 OJSC "Kazpost"  
 Receipt, processing, tran sportation, and delive ry of letters, post 
packages, parcels; postal money orders; issuing state postal 
marks; special communication; pe nsion, social subsidies, etc 
payment service; express a nd courier delivery service, 
distribution of periodicals, etc 
4 JSC "Food Contract Corporation"  Purchase, forming, accounting, storage, renewal, transportation 
and sale of the state resources grain and processed grain products. 
5 Closed Joint-Stock Company 
(CJSC)"National Atomic Company 
"Kazatomprom"  Acts as national operator for export and import of uranium and its 
compounds, nuclear fuel for nuclear power plants, special 
equipment and technologies, reusable materials. 
6 CJSC "National Information 
Technologies"  Development and organization of national information systems 
network in Kazakhstan and thei r integration into the world 
information infrastructure, ensuring informational independence 
of Kazakhstan by creating favorable environment for the Single Information Area.  WT/ACC/KAZ/57 
 Page 13 
 
 
  Name Main Lines of Business 
7 JSC "National Company 
Kazakhstan Temir Zholy" Construction, maintenance and modernization of the railway 
system, administration of railway traffic, supply of international railway transportation se rvices, rail freight, etc 
8 CJSC "State Pension Accumulating 
Fund"  Collection of compulsory pension contyributions from 
population, payment of pensions, creation of pension assets, 
investing pension assets, etc 
9 JSC "Kazakhtelecom"  Acts as national opera tor of Kazakhstan for bu ilding, installation, 
operation and technical maintenance of public and private 
telecommunication network. 
10 CJSC "International Airport Astana"  
 Receiving, dispatching and mainte nance of aircrafts, supply of 
services for passengers; handling luggage, freight, and post; 
repair and maintenance of air port infrastructure and utilities, 
aviation security service, etc. 
11 OJSC " National Company Kazakh 
Information Agency" (Kazinform) Collection, processing and distribution of news and information 
materials, dissemination of information covering the work of 
governmental bodies and Parliament of the Republic of 
Kazakhstan in local and foreign mass media, monitoring materials of foreign mass media and their dissemination in mass 
media of Kazakhstan, etc 
12 "Kazakhstan Engineering" National 
Company" OJSC (Kazakhstan Engineering) Participation in implementation of the state policy pertaining to 
the development, production, distribution, and liquidation of defence, civil and multipurpose products, etc 
 
Question 15 
Please clarify how foreign investors may particip ate in Kazakhstan's privatization programs. 
Answer:  
In accordance with the Decree of the President of th e Republic of Kazakhstan, which has the status of  
Law, No. 2721 "On Privatization" of 23 December  1995 (hereinafter referred to as the Decree), the 
main principles of privatization include:  transp arency, competition, legal succession, accountability 
of officials for legitimacy of the privatization pr ocess and credibility of information related to objects 
put for sale.  
According to the Decree, the seller and the buye r shall be the participants of the process of 
privatization. Seller means the state body authoriz ed to carry out privatization.  Buyer means a 
physical person, private legal entity or foreign legal entity which purchase assets in the course of 
privatization.  When Buyer consists of several entiti es participating on behalf of the Buyer, they act 
jointly. 
The following may not be the Buyers in privatization: - juridical persons, in whose charter fund the share of the state exceeds 20 per cent; and 
- juridical persons, who in accordance with legisl ative acts of the Republic of Kazakhstan or 
their foundation documents, have no right to engage in the types of activities, the performance 
of which is a pre-condition for buying the property at the auction. 
In the course of selling a state block of shares, the Buyer which is a joint stock company may not 
acquire more than 25 per cent of shares of the jo int stock company if the latter owns shares of the 
Buyer.  The Seller shall have the right to hire an intermediary to organize the process of privatization. WT/ACC/KAZ/57 
Page 14  
 
 The full list of requirements and conditions for partic ipation of national and foreign investors in the 
state owned property privatization process are lis ted in the Decree (available from the Secretariat 
through document WT/ACC/KAZ/57/Add.1).   
-  Pricing Policies 
Question 16 
Paragraph 46:  As there is no legal definition  of the term "state mo nopoly," can Kazakhstan 
clarify if state monopolies actually operate as  monopolies, or is there direct competition? 
Answer:
  
The existing laws of the Republic of Kazakhsta n provide that only government bodies and state 
enterprises with the exclusive rights for operation in certain sectors of the national economy can 
conduct certain activities, which fall un der the category of state monopoly. 
Subparagraph 2-1) of Article 1 of the Law of  the Republic of Kazakhstan "On Government 
Procurement" provides that the state monopoly in gover nment procurement is a type of activity to be 
operated exclusively by government bodies and/or  state owned enterprises in accordance with the 
laws of the Republic of Kazakhstan as well as in si tuations when competition is not reasonable due to 
the following concerns: national security, ensuring th e legal order, security of top level officials, 
defence system and defence industry. 
The Government of Kazakhstan defines the list of state monopolies and their application areas. 
Paragraph 2 of Article 25-1 of the given Law s tipulates that economic activities with information 
system developed to conduct government procurement process is a state monopoly. 
Subparagraph (2) of paragraph 1 of Article 13 of the Law of the Republic of Kazakhstan "On 
Licensing" provides that activities can be added to the state monopoly category through the adoption 
of certain legislative acts of the Republic of Kazakhstan. 
Subparagraph (3) of paragraph 1 of Article 2 of the Law of the Republic of Kazakhstan "On State 
Enterprises", for instance, stipulates that the main functions of state enterprises consists of activities 
defined as state monopoly areas or government functions.  
The Law of the Republic of Kazakhstan "On Guar ding Activity" defines guarding of the national 
security objects as a state monopoly, which can be carried out exclusively by specialized security 
subdivisions of the interior ministry. At present guarding of the national security objects is provided by the National Central Board, Oblast (State) divisions , city and rayon (district) units of a specialized 
security service of the Ministry of Interior of the Republic of Kazakhstan. 
Article 11 of the Law of the Republic of Kazakhsta n "On Veterinary" stipulates that the Government 
of the Republic of Kazakhstan creates state en terprises for the purpose of executing the following 
functions defined as the state monopoly: 
- identification of extremely dangerous animal diseases, included into the special list approved 
by the Government of the Republic of Kazakhstan; 
- registration tests, testing veterinary medication,  feed and fortified feeds, as well as control of 
consignments of veterinary me dication claimed for replacement; 
- liquidation of sources of extremely dangerous animal infections included into the list 
approved by the Government of the Republic of Kazakhstan; 
- disinfection of vehicles at veterinary check points at the national bounder; and  WT/ACC/KAZ/57 
 Page 15 
 
 
 - storage of the national stock of veterinary medications. 
At present "National Veterinary Laboratory" National State Enterprise of the Ministry of Agriculture 
of the Republic of Kazakhstan carries out the abovementioned state monopoly functions. 
Article 4 of the Patent Law of the Republic of K azakhstan defines the state monopoly functions in the 
area of industrial property protection. The aut horized government body is the national patent 
organization, which processes the industrial property applications, examines them, issues documents 
of title, issues a bulletin with information on the industrial property objects and carries out other 
functions of the patent agency. 
Article 3 of the Law of the Republic of Kazakhsta n "On Trademarks, Service Marks and Indications 
of Places of Goods' Origin" defi nes the state monopoly functions in the area of protection of 
trademarks and indications of places of goods' or igin. The authorized governmental body is the 
national patent organization, whic h processes applications for trademark registration, registration and 
entitling with the right to use the indications of pl aces of goods' origin, examines the applications, and 
issues certificates, makes official publications of information on registration of trademarks and right holders of geographic indications of goods' origin, as well as carries out other function of the patent 
agency. 
Article 10 of the Law of the Republic of Kazakhsta n "On Plants Protection" defines phytosanitary 
monitoring of extremely hazardous organisms as  a state monopoly.  At present "Phytosanitary" 
National State Enterprise of the Ministry of Ag riculture of the Republic of Kazakhstan conducts 
phytosanitary monitoring of extremely hazardous organisms. 
The Forestry Code of the Republic of Kazakhsta n stipulates that "forest regulation concerning 
determination of the national forest fund boundari es, wood inventory, and forestry planning on the 
national forest fund lands is a state monopoly".  
Article 1 of the Law of the Republic of Kazakhs tan "On Legal Protection of Integrated-Circuit 
Layouts" defines the state monopoly functions in th e area of legal protection of integrated-circuit 
layouts. 
In addition, there are legal acts, which provide th at certain sectors and areas are conducted exclusively 
by the governmental bodies and state enterprises. Such legislative acts entitle governmental bodies 
and state enterprises with the exclusive right; howev er, they do not qualify such  operations as the state 
monopoly. 
Paragraph 11 of Article 1 of the Law of the Republic of Kazakhstan "On Architectural, Town 
Planning and Construction Activity" (her einafter referred to as the Law), for instance, defines the state 
appraisal of projects as the compulsory form of a complex appraisal of projects (draft projects or 
design estimates), being a single state system, whose functions can not be overlapped.  
The legal entity authorized by the Government of the Republic of Kazakhstan makes the state 
appraisal of projects. At present NSE "National Independent Commission of Experts on Project Appraisal" under the Construction Committee of the Mi nistry of Industry and Trade of the Republic 
of Kazakhstan has the exclusive right for state appr aisal of projects as defined in paragraph 4 of 
Article 64 of the Law. 
Article 5 of the Presidential Decree "On State Registration of the Rights for Realty and Realty 
Operations" and the Land Code of  the Republic of Kazakhstan entitle  NSE "Realty Centres" under the 
Registration Service  Committee of the Ministry of  Justice of the Republic of Kazakhstan with the WT/ACC/KAZ/57 
Page 16  
 
 exclusive right for registration of the rights for rea lty and realty operations, issuance of realty value 
acts, provide information on encumbrance (if any) on the land lot or on the land tenure right. 
The Land Code of the Republic of  Kazakhstan entitles the Agency of  the Republic of Kazakhstan on 
Land Resources Management with the exclusive rights for maintaining the State Land Cadastre, monitoring of lands, as well as issuance of land lot plans. 
All of the abovementioned legal acts qualify certain  kinds of operations as state monopolies to be 
carried out by governmental bodies and state enterprises.  However, they do not provide a single uniform definition of the state monopoly area.  Therefore, there has been a need to develop a legal act, which could clearly regulate the issues of the state monopolies. 
In accordance with the Legislative Action Plan for 2005 of the Government of the Republic of 
Kazakhstan the Agency of the Republic of K azakhstan on Natural Monopolies Regulation and 
Protection of Competition initiated development of the draft Law of the Republic of Kazakhstan "On 
State Monopoly," which should be developed by  the end of the first quarter of 2005. 
This law is based on specific criteria for qualifi cation of certain activities as the state monopoly, 
following the guidelines of paragraph 1 of Article  39 of the Constitution of the Republic of 
Kazakhstan, which provides that the rights and fr eedoms of a person and citizen may only be limited 
by laws and only to the extent that is necessary to protect the constitutional and public order, rights 
and freedoms of people, health and morale of the population. 
The draft law defines the fundamental principles of  governmental regulation taking into account the 
existing approach to the regulation of the market participants acting as state monopolies, as well as 
organizational and legal foundations  of the governmental regulation of the state monopoly relations 
and areas. 
Adoption of such law aims to define the legal fr amework for the governmental control and regulation 
of operations qualified as the state monopol y, and to bridge the gap in laws. 
This draft law will provide a clear separation of existing vague interpretation of the state monopoly 
and the exclusive right, which is qualified as the governmental function in the Republic of 
Kazakhstan. 
Adoption of the draft law is necessary to regul ate the market participants operating as state 
monopolies as well as to achieve a balance of interests of both consumers and state monopolies. 
At the same time, in the view of various interpreta tion of the translation of the "state monopoly" term 
from Russian into English, please  be advised that one should read the term "state monopoly the 
Republic of Kazakhstan" as the exclusive right fo r production and sale of goods (works and services) 
in a certain market, as stated in the legislative act s of the Republic of Kazakhstan to the governmental 
bodies and/or state enterprises for the purposes of ensuring protection of constitutional and public 
order, human rights and freedoms, health  and protection of the population.  
Question 17 
Paragraph 49:  Please explain how there is compet ition for the "natural monopolies" regulated 
by Kazakhstan? On what basis would the Government of Kazakhstan sanction direct 
competition with its holdings in these industries?   WT/ACC/KAZ/57 
 Page 17 
 
 
 Answer:  
Currently the Government of the Republic of Kaza khstan is pursuing policy measures aimed at further 
liberalization of key sectors of the national ec onomy by facilitating competition and "narrowing 
down" the list of areas defined as natural monopolies. 
- Railway transport sector  
Until recently the railway transport operations, in cluding transportation operations and management 
of trains, rolling stock and locomotives, maintena nce of the infrastructure providing functions on the 
repair and maintenance of the railway lines, ro lling stock and locomotives have been qualified as 
natural monopolies. 
To encourage competition and liberalize this sector  Kazakhstan adopted the Program on Restructuring 
of the Railway Transport for the period 2004-2006 approved by Government Resolution No. 145 of 
6 February 2004.  The program provides for the basic measures aime d to create competitive 
environment, mobilize private investments to a nd facilitate business environment in the railway 
transport. 
According to the Program the railway transport na tural monopoly's area will be "limited" to the 
services of the main-line railway (infrastructure).  The transportation operations with the use of own 
or rented rolling stock as well as maintenance ope rations (including railway, cars and locomotives 
repair) will belong to the competitive sector.  Fo r this purpose, non-discriminatory legal and 
technological conditions for the access to the servi ces of the main-line railway are created for all 
carriers. 
In the framework of the Program implementation some service enterprises have been excluded from 
"Kazakhstan Temir Zholy" NC" JSC by sale of shares packages to private investors. 
The law of the Republic of Kazakhstan "On Natura l Monopolies" has been changed to include the 
main-line railway services into the natural monopoli es. The Law "On Railway Transport" stipulates 
that the main-line railway network is a public ra ilway transport object in the entire territory of 
Kazakhstan and it is not subject to privatization. 
Agency Ordinance No. 242-OD of 25 May 2004 deregulates the tariff rates for the transportation of 
goods and for the first time approves the tariffs fo r the services of the main-line railway, which took 
force on 20 July 2004.  After introduction of the tari ffs for the main-line railway services, the freight 
carriers shall independently set the tariffs for transportation of goods. 
- Power Supply  
Regional Electricity Supply Network Companie s (RECs) used to have two functions: 
- transmission of electricity by the regional and local networks; and 
- power supplies operations. 
That is why the Agency used to  regulate the tariffs for the electricity supply services as well as the 
selling tariffs for the service of supplying end users with electrical power. 
Governmental Resolution No. 190 of 18 Februa ry 2004 approved the Concept on the Further 
Development of Market Relations in the Power Industry of the Republic of Kazakhstan, and on 
9 July 2004 they adopted the new Law "On Power Industry". WT/ACC/KAZ/57 
Page 18  
 
 In accordance with the provisions of the new Law and the Concept, RECs excluded the power supply 
operations into the competitive sector by creating pow er supply organizations (PSO).  Therefore, at 
present RECs only provide the service of transmission of electrical energy. 
Today the selling tariffs for the power supply to end- users are defined in the competitive market.  The 
Law of the Republic of Kazakhs tan "On Natural Monopolies" regulates the services for transmission 
of electrical energy by the inter-regional networks ("KEGOC" OJSC) and for transmission of 
electrical energy by regional and local networks ("in" tariff). 
Earlier purchase of minimum 5 MWt of average daily (basic) power used to be one of the conditions 
for a consumer to access to the wholesale market of electricity. 
After adoption of the new regulatory legal acts pertaining to the power industry, the conditions for the 
access of consumers to the wholesale market of el ectrical energy have been simplified.  Now, for 
instance, a consumer may have the access to th e wholesale power supply market purchasing minimum 
1 MWt of the average daily (basic) power. 
Article 9 of the Law "On Power Industry" provid es that it is possible to design and build the 
redundant (shunting) power transmission lines and s ubstations after a preliminary notice to and 
coordination with the sectoral Ministry (the Mini stry of Energy and Mineral Resources of the 
Republic of Kazakhstan), regulati ng body (the Agency of the Republic of Kazakhstan on Natural 
Monopolies Regulation) and the system operator ("KEGOC" OJSC). 
- Pipeline Transportation
 
Though pipeline transportation a nd water collecting systems operations are qualified as the natural 
monopoly, this qualification, however, makes no restric tions or any barriers for the access of local and 
foreign companies to these markets. 
Moreover, it should be noted that laws of the Re public of Kazakhstan do not prohibit construction of 
pipeline transportation and water collecting systems objects, including redundant and parallel systems, 
with subsequent ownership.  Paragraph 1 of Artic le 42 of Presidential Decree No. 2350 "On Oil" of 
28 June 1995 provides that a trunk pipeline is an indivisible technological system, which can be both 
in governmental and private owners hip. Paragraph 2 of Article 55 of  the Water Code of the Republic 
of Kazakhstan stipulates that "construction, recons truction, operation, conservation, liquidation of 
enterprises and utilities affecting the condition of water objects require the positive resolution of the 
central executive body of the Republic of Kazakhs tan on environmental protection, authorized body 
on the subsurface use and protection, authorized  body on sanitary-epidemiological welfare of 
population, and of the authorized body on industrial safety.  Article 125 of the Water Code also 
defines more detailed conditions for location, d esign, construction, rec onstruction and commissioning 
of enterprises and utilities at water objec ts, in water protection zones and areas. 
The following are among many examples of construc tion and operation of main-line oil-pipelines: 
Atyrau-Novorossiysk (KTK-K), Petro Kazakhstan Company's Kumkol-Zhusaly, MunayTas Company's Kenkiyak-Atyrau, design and beginning  of construction of Atasu-Alashankou pipeline. 
Commissioning of gas service pipes by Tauekel-T Ltd in Almaty oblast is an example of new 
construction of gas service pipes. 
Question 18 
Paragraph 56:  Please describe how a "decreasing coefficient" works to keep prices in line.  WT/ACC/KAZ/57 
 Page 19 
 
 
 Answer:  
The Order of the Chairman of the Agency on Regulation of Natural Monopolies and Protection of 
Competition No. 248-OD "On Approval of Tariffs  on KazTransOil JSC's Services" dated 
13 December 2002 approves the prices/tariffs for oil transportation services of JSC "KazTransOil", 
which stipulates that the decreasing coefficient (0.4 6) should be applied for transportation of oil by 
residents of Kazakhstan to domestic oil refineries. 
Application of decreasing coefficient for transporta tion of crude oil to oil refineries of Kazakhstan 
does not restrict exports of oil and  has no eff ect on prices of crude oil supplied to domestic oil 
refineries and refined oil products.  Prices for oil a nd oil products are regulated by market mechanism 
depending on the demand and supply.  At the end of  2003, for instance, the price for crude oil was 
approx. US$ 70-80 per tonne.  In November of 2004 the price has gone up to US$ 130-140 per tonne, 
while the same decreasing coefficient for trans portation of oil continued to be applied.  
Question 19 
Kazakhstan's definition of natural monopolies, as set out in paragraph 44 (Factual Summary; 
also paragraph 283), leaves the Kazakh authorities with a very large discretionary margin to 
qualify activities as natural monopolies, beyo nd the commonly applied approach.  We for 
example do not consider either telecommunications or postal services to be natural monopolies. 
Could Kazakhstan please provide further clarification on this. 
Answer:   
The Law of the Republic of Kazakhstan "On Natu ral Monopolies" defines the areas of the natural 
monopolies. Currently, the government is pursuing liberalization programs in key sectors of the 
economy by facilitation of competition and "narrowing down" the list of activities defined as natural 
monopolies.    
- Telecommunication  
The Law of the Republic of Kazakhstan "On Natural Monopolies" used to qualify the 
telecommunication services using local lines as natu ral monopoly.  The recent changes made to the 
Law "On Natural Monopolies" significantly reduced and concretized the area of the natural monopoly 
in telecommunication services. 
The Law "On Communication" of 5 July 2004 introduced universal telecommunication services 
subject to governmental regulation, the tariffs for which being set by the Government of the Republic 
of Kazakhstan. Governmental Resolution No. 866 of 19 August 2004 approves the list of universal 
telecommunication services to be compulsory ava ilable to any communication services user in any 
place; the prices and quality are subject to regulati on. These universal services include fixed telephone 
communication (local, area, long-distance). 
Governmental Resolution No. 1064 of 15 October 2004 approves the nomenclature of 
telecommunication and technologically related services, prices for which are subject to governmental 
regulation. 
At present the natural monopoly still includes the communication operator's connection services and 
telephone transit traffic services. Also, the natu ral monopoly on leasing the technological property, 
utilities and communication channels (mainly by "K azakhtelecom" JSC, the national level natural 
monopoly) still remains. WT/ACC/KAZ/57 
Page 20  
 
 The Program on Development of the Telecomm unication Sector for 2003-2005 (as approved by 
Governmental Resolution No. 168 of 18 February 2 003 and aimed to liberalize the sector) created the 
necessary prerequisites for the development of the telecommunication services market.  This program provides for a phase-by-phase reduction of the telecommunication regulation. 
- Postal Services
 
The Agency used to regulate the fo llowing postal communication services: 
- sending postcards; 
- sending regular letters; 
- sending registered letters; 
- sending insured letters; 
- sending post packages; 
- sending registered postal packets; 
- sending insured postal packets; and 
- sending parcels. 
The list of postal services qualified as natural m onopoly has been reduced by two times.  Now only 
the common postal communication services are qualified as the regulated postal services.  They include the following: 
- sending postcards; 
- sending letters; and 
- sending postal packets. 
Therefore, the natural monopoly reduction policy also concerns the postal communication sector. 
As soon as Kazpost JSC introduces the separate cost s accounting method and, therefore, determines 
the profitableness/un-profitableness of regulated postal services, it will be possible to create the 
necessary prerequisites for the creation of the postal services market, and the common postal services 
will be excluded from the natural monopoly's area. 
Question 20 
Paragraph 53 (Factual Summary) already contains some information with relation to prices for 
energy products.  Could more information be pr ovided on the pricing regime covering energy 
products, in particular gas.  Do foreign compan ies in Kazakhstan benefit from the same prices 
as Kazakh companies?  Are the prices charged fo r domestic consumers the same as for export? 
Answer:
 
Pricing policy on natural gas  
In the domestic market: 
- Final price on natural gas for end users comprises of actual cost of gas plus transportation 
costs (tariff on transportation of gas by main-gas pipelines + cost of transportation of gas by gas distribution networks) plus profit.  WT/ACC/KAZ/57 
 Page 21 
 
 
 For export: 
Export of the Kazakh gas is carried out only by two companies - "Tengizchevroil" and "Karachaganak 
Petroleum Operating" CJSC. 
- "Tengizchevroil" Ltd sells gas at the Russian border at US$ 30-32 per 1,000 m3. This price 
includes the cost (tariff) of transportation of  natural gas, which equals to US$ 0.7 per 
1,000 m3 per 100 km (for legal entities); and 
- "Karachaganak Petroleum Operating" CJSC has its own 35 km long non-main gas pipeline; it 
transports and supplies gas under the contract w ith KazRosGas CJSC at its own tariff, which 
is not subject to government regulation.  
The price for 1,000 m3 of un-stripped gas supplied to Orenburg gas processing plant equals to 
US$ 13.86 and covers the cost of gas, transpor tation expenses and company's profit. "KazRosGas" 
CJSC sells processed gas at the price of US$ 29.39 per 1,000 m3. 
Question 21 
In paragraph 54 (Factual Summary), please clarify whether there is currently any 
discrimination in the fees for railway transport fo r domestic purposes and export.  If yes, how 
will this be eliminated? 
Answer:  
The tariffs for railway freight transportation diffe r depending on distance, rolling stock (wagons) type, 
cargo and destination (domestic, export, importation) types. 
The Methodology for calculation of tariffs for railw ay transportation services is being developed in 
order to implement the Program of railway sector liberalization.  One of the main criteria of this 
Methodology are:  transparency of calculating costs, which comprise a tariff; full recovery of the costs 
incurred in relation with provision  of services; ensuring a threshold profit margin and differentiation 
of tariff rates only by significant factors. 
At the same time, taking into account that differen tiation by destination types contradicts with the 
provision of the Article 3 of GATT, we are considering the possibility of a staged phasing out of 
currently applied differentiation of tariffs by des tination (export, import, a nd domestic), while still 
retaining differentiation of tariffs by types of cargo and distance. 
Question 22 
From paragraph 56 (Factual Summary), we understand that a priori , tariff rates for the 
transport of oil by pipeline are the same for domestic consumption and export; however, for 
domestic consumption, a decreasing coefficient is applied thereafter, de facto leading to a 
cheaper rate.  We agree with other WTO Memb ers that this constitutes a discriminatory 
practice that needs to be abolished. Please also clarify the situation for gas. 
Answer:  
No decreasing coefficient for transportation of  natural gas is applied in Kazakhstan.   
The Agency of the Republic of Kazakhstan on Natural Monopoly Regulation and Protection of 
Competition (hereinafter - Agency) sets tariffs on dom estic transportation of natural gas by the gas 
pipelines system. WT/ACC/KAZ/57 
Page 22  
 
 There is a single tariff on transportation of 1,000 m3 of gas to domestic market by gas pipelines, 
which does not depend on transportation distance: 
- for legal entities: 420 tenge per 1,000 m3; and 
- for legal entities supplying natural gas to the population: 171 tenge per 1,000 m3. 
The tariffs on domestic transportation of gas cove r all expenses on operation and maintenance of the 
gas pipeline system. 
The tariff on transportation of 1,000 m3 of gas for export is US$ 0.7 per 1,000 m3 per 100 km.  The governmental bodies of Kazakhstan cannot regulate tariffs on international transit of natural gas 
through the territory of Kazakhstan.  Such tari ffs are to be negotiated under a Concession Agreement 
between the Republic of Kazakhstan and the other c ountry from which natural gas is being exported 
through the territory of Kazakhstan.  
In accordance with the obligations under the re levant Concession Agreements, the Republic of 
Kazakhstan confirms that tariffs on international transit of natural gas through the territory of 
Kazakhstan are not regulated by the governmental bodies and that therefore the Concessionaire and/or the Investment companies have the right to set a nd approve own tariffs on international transit.  
Below is the data on tariffs for transportation of natural gas through the main-gas pipeline by Intergas 
Central Asia CJSC (year 2004): 
Tariffs on Natural Gas Transportation and Storage Services By Intergas Central Asia CJSC
 
Item Tariff 
Transportation of natural gas for domestic consumption in 
Kazakhstan (tenge/1,000 m3 without VAT)  
- for legal entities 420 
- for legal entities supplying natural gas to the population 171 
International transit (US$/1,000 m3 per 100 km)  
- Russian transit  0.9 
- Turkmen transit 0.68 
- Uzbek transit  0.68 
- Uzbek transit  1.2 
- Kyrgyz transit 14.8% of the factually transported gas at 
the price of US$ 42 per 1,000 m3 
Export of the Kazakh gas (US$/p er 1,000 m3 per 100 km) 0.7 
 
Question 23 
Please provide further details about the process of granting of quotas for oil export via the 
Atyrau-Samara pipeline. Is there a mathematic fo rmula, which is applied? What input do 
interested exporters have into th e process? Is there the possibilit y of the review of the quota 
allocation decision by the Ministry  of Energy and Mineral Resources?  
Answer:  
Under the Law of the Republic of Kazakhstan "On Natural Monop olies" the Agency on Natural 
Monopoly Regulation and Protection of Competition (her einafter - Agency) regulates the activity of a 
natural monopoly subject - "Kaztransoil" JSC, wh ich operates Uzen-Atyrau-Samara oil pipeline, 
ensuring that the latter provides services to all cons umers in accordance with the principles of equality 
and fairness.  WT/ACC/KAZ/57 
 Page 23 
 
 
 In this view, as well as taking into account the growth rate of hydrocarbon resources extraction in 
Kazakhstan, the Ministry of energy and mineral resources of the Republic of Kazakhstan provides for 
the oil companies to use the trunk pipelines for tran sportation of oil by the Kazakh producers on the 
principles of equal availability to all consumers ba sed on proportional to the volumes transportation of 
oil for export.  
Transportation of oil via Uzen-Atyrau-Samara oil- pipeline is done according to monthly applications 
for transportation of oil, indicating the volumes and destinations. 
Such procedure was introduced not only due to the technical limitations on the pipeline capacity, but 
also due to the limitations on the transit through the territory of the Russi an Federation imposed by 
"Transneft" JSC. 
At present the annual output of oil in the Wester n Kazakhstan region equals  to 30 million tonnes 
(excluding the oil output by "TengizChevrOil" JV), whereas the throughput capacity of Uzen-Atyrau-
Samara oil-pipeline is only around 17 million tonnes per year. 
Unfortunately, due to absence of an alternative r oots for companies of Mangystau and Atyrau regions 
to transport oil for export and to the oil refini ng plants besides the Atyrau-Samara pipeline, the 
marketing opportunities for the companies to tran sport their products through the territory of 
Kazakhstan are significantly reduced.  
At the same time, the oil extrac ting companies may apply for increased quotas for export of oil when 
a consignor gives up its quota for transportation of oil via Uzen-Atyrau-Sama ra oil-pipeline because 
of insufficient volume of products or absence of a buyer, as well as when the Russian Federation 
grants additional transit opportunities. 
It is important to note that Kazakhstan, when requesting from "Transneft" JSC annual volume quotas 
for transportation of oil through Uzen-Atyrau-Sa mara oil pipeline, takes into account forecasted 
maximum quota volumes necessary for transportation of oil by all Kazakh companies.  Thus, up to date all requested volumes of oil tr ansportation have been satisfied.  
There has not been a single problem regarding shortage of quotas or their disproportional allocation.    Question 24 Paragraph 51:  Can the Government of Kazakhs tan please provide further information on the 
process of approval of price increases for natu ral monopolies by the Agency on Natural 
Monopoly Regulation and Competition Protection,  including details on any public consultation 
process, its use by Kazakh juridical and natural persons, as well as the possibility of participation in the consultation process by foreign and foreign-invested firms.  
Answer:
  
In accordance with Article 16 of the Law of th e Republic of Kazakhstan "On Natural Monopolies" 
(hereinafter referred to as the Law) the natura l monopolies shall submit an application to the 
authorized body when they need to obtain approval of  changes of tariffs (prices, rates) for the services 
(goods, works) provided.  
In addition, such natural monopoly subject must s ubmit tariff estimate and draft tariff rates (prices, 
rates) for provided services 60 days before the supposed date of their introduction. WT/ACC/KAZ/57 
Page 24  
 
 When the authorized body initiates the review of ta riffs (prices, rates), natural monopoly subject must 
provide it with economically justified calculations and other information in the same amount as when 
submitting application for approval of new ta riffs (price, rate) within one month.  
The authorized body shall consider the draft tari ffs (prices, rates) for provided services (goods) of 
natural monopolies within forty-five days provide d that the latter submitted economically justified 
calculations in accordance with the requirements of th e authorized body.  The period of consideration 
of draft tariffs (prices, rates) starts  on the day of application submission. 
When considering the application of natural monopoly subject, the authorized body shall do the 
following: 
- undertake financial and, if necessary, technical evaluation of the draft tariffs (prices, rates) 
involving independent experts, government bodi es, consumers and their public unions, and 
the applicants - natural monopolies. For th is purpose the Agency on Natural Monopoly 
Regulation and Protection of Competition (hereina fter - Agency) hires independent experts on 
a competitive basis. In addition, the Agency h as the Boards of Experts on various sectors of 
the economy; and 
- based on the results of the examination devel op a preliminary decision on the proposed tariffs 
and, in case of public hearings (consultation process), bring it up for discussions. 
In accordance with paragraphs 2, 3, and 4 of Artic le 18 of the Law, the authorized body shall send its 
final decision on approval of tariffs (prices, rates) for services (goods, works) provided by the natural 
monopoly subject no later than 15 days before their introduction.  
Changes of tariffs (prices, rates) for services (goods, works) provided by a natural monopoly subject, 
registered in the State Register, cannot be made more than once in two quarters. 
New tariffs (prices, rates) shall be introduced on the first day of a quarter.  The natural monopoly 
subject must notify the consumers on changes in tariffs  (prices, rates) no later than ten days prior to 
their introduction. 
Public hearings (public consultation process) is the procedure for discussion of the draft tariffs (price, 
rate) for service (goods, works) provided by the natural monopoly subjects, which involves members 
of local legislative branch, representatives of government agencies, consumers and their public 
unions, mass media, independent e xperts, and natural monopolies. 
Thus, various legal and natural pe rsons including foreign companies and foreign-invested firms can 
take part in such public hearings. 
The following are the principles of public hearings: 
- publicity; and 
- maintaining balance of interests of  consumers and natural monopolies. 
The public consultation processes aim to reinforce the system of consumer rights protection in 
relation to the tariff policy by ensuring the transp arency of the natural monopolies' activity for 
consumers and the authorized body. 
Under Article 14 of the Law "On Natural Monopoli es" the authorized body has the right to have 
public hearings when considering applications fo r changes in tariffs (prices, rates) of natural 
monopolies registered in local sections of the State Register of natural monopolies.  WT/ACC/KAZ/57 
 Page 25 
 
 
 The authorized body determines the need to have p ublic hearings when considering applications for 
changes in tariffs (prices, rates)  of natural monopolies registered in the local sections of the State 
Register of natural monopoles (hereinafter referr ed to as the Register) upon the written request by 
consumers or natural monopoly subject.  
Under Article 14-1 of the Law the authorized body  must have public hearings when considering 
applications for changes in tariffs (prices, ra tes) of natural monopolies registered in the 
republican/national section of the State Register of natural monopolies. 
In case of having public hearings the authorized body must no later than ten days prior to such 
hearings publish information regarding the date a nd place where these hearings will take place.   
Public hearings shall be held no later than 15 da ys prior to the adoption of the final decision on 
approval of tariffs (prices, rates) for services provided by the natural monopoly subject. 
The procedure for holding public hearings when cons idering applications for approval or change of 
tariffs (prices, rates) of natural monopolies is re gulated by the relevant Rules, approved by the 
Government Resolution No. 376 of 21 April 2003 (available from the Secretariat through document 
WT/ACC/KAZ/57/Add.1). 
Question 25 Paragraph 52 – Please provide more details on the results of the Program on Improvement of 
Tariff Policies of Natural Monopolies for the period 2002-2004.  For example, have price 
controls for electrical power services, rail tr ansport services and certain telecommunication 
services been eliminated, as planned? 
Answer:
  
The Program on Improvement of Tariff Policy of Natural Monopolies for the period of 2002-2004 
was adopted by the Government Resolution No.1126 of 15 October 2002 (hereinafter referred to as 
the Program). 
To implement the Program the Agency undertook an  active work for development and improvement 
of the legal regulatory framework and methodology  of forming tariffs for services of natural 
monopolies.  In 2002-2004, for instance, the Agency approved over 60 legal acts and methodological 
guidelines. 
A priority objective of the Program is to ensure st ability of an average level of tariffs for services of 
natural monopolies for the mid-term period in orde r to draw investments in upgrading production and 
improve the quality of provided services (goods, works). 
The Agency, in this regard, has develope d and approved the following legal acts: 
- Order of the Agency Chairman No. 30-OD "On Approval of the Instruction on Approval and 
Introduction of mid-term Tariffs (Prices, Ra tes) for Services (Goods, Works) of Natural 
Monopolies" of 3 February 2003; 
- Order of the Agency Chairman No. 16-OD "On Approval of the Instruction on Consideration 
and Coordination of Natural Monopolies' Investment Plans" of 27 January 2003; 
- Order of the Agency Chairman No. 17-OD "On Approval of the Instruction on Calculation of 
the Profit Margin (Net Profit) on the Regul ated Assets Basis for Natural Monopolies 
Providing Water Supply and/or Sewage System  Services and for Energy Sector Natural 
Monopolies" of 27 January 2003; and WT/ACC/KAZ/57 
Page 26  
 
 - Order of the Acting Agency Chairman No. 304-OD "On Approval of the Instruction on 
Calculation of the Profit Margin (Net Profit) on the Regulated Assets Basis for Natural Monopolies Providing Oil Pipeline Transportation Services" of 5 July 2004. 
By now the Agency has calculated the profit margin  on the regulated assets basis for over 150 natural 
monopolies providing services in the energy sector, water supply and sewage systems. 
To ensure a further progress in electrical energy sector and to increase the efficiency of its 
functioning, by its Resolution No. 190 of 18 Fe bruary 2004 the Government of the Republic of 
Kazakhstan approved the Concept on Further Development of Market Relations in Electrical Energy 
Sector (hereinafter referred to as the Concept) , which provides for a phase-by-phase development of 
the wholesale and retail electric energy market, incl uding the measures to improve the formation of 
tariffs in the energy sector for the period of 2004-2006. 
In accordance with the Concept, at  its first phase, the regional electric companies (RECs) will give up 
their procurement and other functions to the suppliers of electric power. 
The second phase (paragraph 3.3.2 of the Concept) envisages transition from  the monopolistic retail 
market, regulated by the Government, to the co mpetitive retail market, where the electric power 
providing organizations will be the suppliers. 
Since power supply will be competitive, the electri c power suppliers will set the tariffs themselves 
and the Agency will not regulate the retail tariffs fo r the electric energy supplied to the end users. 
In its Resolution No. 866 of 19 August 2004 the Govern ment of the Republic of Kazakhstan qualifies 
the fixed telephone (local, intra-z one, and international) communication services, which used to be 
regulated by the legislation on natural monopoli es, as universal telecommunication services.  Under 
paragraph 4 of Article 32 of the Law of the Repub lic of Kazakhstan "On Communications" the prices 
for such services are subject to government regulation. 
Question 26 
Paragraph 54:  Please provide further information on the implementation of Resolution No. 145 
of 6 February 2004 and specific details on th e charges for services provided by carriers and 
companies operating in the railway transport sect or for the transport of commodities, as a 
result of the approval of Resolution No. 145 of 6 February 2004.  
Answer:
 
In accordance with the Law of the Republic of Kazakhstan "On Railway Transport" (hereinafter 
referred to as the Law), one of the principles of th e state policy in the railway transport sector is to 
ensure that the railway transport services are av ailable to all carriers and transport companies. 
The ownership and operation of th e railway network, including administration of the transportation 
traffic and railway services is assigned to the National Railway Company, the functions of which are carried out by "National Company "Kazakhstan Temir Zholy" JSC. 
The Program on Restructuring the Railway Transpor t of the Republic of Kazakhstan approved by the 
Government Resolution No. 145 of 6 February 2004 (hereinafter referred to as the Program) provides 
for separation of the competitive sector of the ra ilway transport from the natural monopoly services.  WT/ACC/KAZ/57 
 Page 27 
 
 
 The National Railway Company will, therefore, ensure  the equal right of all carriers to use the main-
line railway.  The competition among the carriers will be ensured by appearing of new carriers with 
their own (rented) rolling stock. 
The carriers will pay for the use of the main-line rail way network; the charges will be regulated by the 
Government and set forth by the government body regulating natural monopolies, under the procedure 
established by the Rules on Use of the Main-Line Railway, approved by the Government Resolution 
No. 424 of 16 April 2004 (hereinafter referred to as the Rules).  
Paragraph 4 of the Rules stipulates that to obtain th e right for the use of the main-line railway, carriers 
shall sign Model Agreement, approved by the Govern ment of the Republic of Kazakhstan, between an 
operator and a carrier. Such agreement shall define  the main terms, rights and obligations of the 
parties under the Rules and other legal and regulatory acts. 
Another eligibility condition for access of carriers to the main-line railway is that the rolling stock 
must meet the rules for technical operation, traffic safety rules and environment protection regulations, otherwise the railway operator (the  National Railway Company) must exclude such 
rolling stock from the main-line railway. 
Carriers have, therefore, the right of access to the main-line railway on paid, contract basis provided 
that the rolling stock is registered, it meets the requirements of the technical operation rules, traffic safety rules, environment protection regulations, and the carrier has the licence  for the transportation 
of goods and passengers. 
The tariffs for the main-line railway services, whic h became effective on 20 July 2004, were approved 
by the Order of the Agency of the Republic of Kazakhstan on Natural Monopolies Regulation and 
Protection of Competition (hereinafter referred to as the Agency) No.242 "On Tariffs of "National 
Company "Kazakhstan Temir Zholy" JSC of 25 May 2004. 
Currently the prices for locomotive header and railway header services ("Locomotive" JSC and 
"Kazzheldortrans" JSC, which are not natural m onopolies under the Law of the Republic of 
Kazakhstan "On Natural Monopolies") have been set at the rate suffi cient for the implementation of 
their operational and investment budgets and are re gulated as the prices of companies with the 
dominating position in its sector. 
Question 27 
Paragraph 57:  The representative of the Govern ment of the Republic of Kazakhstan clarified 
"that there was no transit of oil through the te rritory of Kazakhstan".  Can the government of 
Kazakhstan confirm that there is no oil m oving from Russia, through Kazakhstan to 
neighbouring countries? 
Answer:
 
At the beginning 2004, the transit of oil trough the territory of Kazakhstan from the territory of the 
Russian Federation to China is conducted via railway  and pipeline networks.  The oil first delivered 
through Omsk-Pavlodar oil-pipeline to Atasu oil lo ading rack and later transported to China by 
railway.  An average monthly volume of transit equals to 30,000-40,000 tonnes of oil. 
When transporting oil via Priirtyshsk-Pavlodar-A tasu oil pipeline to China, as well as when 
transporting oil via Kumkol-Karakoin-Atasu oil pipelin e to China, the tariffs for transportation of oil 
are set at 2,413 tenge per tonne per 1,000 km. WT/ACC/KAZ/57 
Page 28  
 
 Thus, the tariff rate for transportation of oil in the territory of Kazakhstan as well as for transit of oil 
through the territory of Kazakhstan via the oil pipe line operated by "KazTransOil" CJSC remains the 
same (Order of the Chairman of Agency on  Natural Monopoly and Protection of Competition 
No. 248-OD dated 13 December 2002).      
The program of railway sector restructuring for th e years of 2004-2006 foresees freight transportation 
services and locomotive header services being provided in a competitive environment, while 
"Kazakhstan Temir Zholy" CJSC (hereinafter KTZ)  shall focus on services qualified as natural 
monopoly, i.e. main railway network services. 
The tariffs for the main-line railway services, whic h became effective on 20 July 2004, were approved 
by the Order of the Agency of the Republic of Kazakhstan on Natura l Monopoly Regulation and 
Protection of Competition (hereinafter referred to as the Agency) No. 242 "On Tariffs of "National 
Company "Kazakhstan Temir Zholy" JSC of 25 May 2004. 
Since 20 July 2004 tariffs for freight transportation services were comprised of tariff for services of 
the main railway network, locomotive header, ca rgo and commercial works, use of cargo wagons and 
containers.  For transportation of freight using own or rented wagons , the tariff for transportation does 
not include a fee for cargo wagon use.  
Yet, in accordance with the legislation on na tural monopolies the regulated part of freight 
transportation is a tariff for services of the main ra ilway network.  When calculating the tariffs for 
services of the main railway network the Agency reta ined differentiation of tariffs by types of cargo, 
destination, and wagon type, as well as depending on th e ownership of the wagon, whether it is KTZ's 
property or the property of a shipper).       
Question 28 Annex III.  List of Services provided by Natural Monopolies:  The column containing the list of 
legal acts regulating the activities of natural mo nopoly entities and the issues of tariff setting 
shows that there are a wide range of acts affect ing the various monopolies. Some of these acts 
seem to incorporate the possibility of a public hearin g i.e. in the setting of tariffs for gas or gas 
condensate by distributing pipelines – Resolution  No. 376 of 21 April 2003.  Other tariff 
Approval processes do not appear to include this pub lic consultation process (at least explicitly).  
We would appreciate further information about when a public consultation process applies in 
the setting of tariffs for natural monopolies and when it does not. 
Answer:
 
The public hearings (public consultation process) is  the procedure for discussion of the draft tariff 
(price, rate) for the service (goods) of the natural monopoly subject involving deputies, 
representatives of governmental bodies, consumers a nd their public unions, mass media, independent 
experts, and natural monopolies. 
Therefore, various legal entities and natural persons  including foreign companies and foreign-invested 
firms can take part in the public consultation process. 
The following are the principles of the public hearings: 
- publicity; and 
- observing the balance of interests of consumers and natural monopolies.  WT/ACC/KAZ/57 
 Page 29 
 
 
 The public consultation processes aim to reinforce the system of consumer rights protection in 
relation to the tariff policy by ensuring the transp arency of the natural monopolies' activity for 
consumers and the authorized body. 
Under Article 14 of the Law "On Natural Monopolies" the authorized body has the right to make 
public hearings (consultation processes) when consider ing applications for changes in tariffs (prices, 
rates) of natural monopolies registered in the lo cal sections of the State Register of natural 
monopolies. 
The authorized body determines the need to ma ke public hearings (consultation processes) when 
considering applications for changes in tariffs (pri ces, rates) of natural monopolies registered in the 
local sections of the State Register of natural monopolies (hereinafter referred to as the Register) upon 
the request of consumers or the natural monopoly subject in writing.  
- Competition Policy 
Question 29 Paragraph 60:  Can the Government of the Re public of Kazakhstan please provide further 
details on the program for 2004-2006 aimed at re organizing/downsizing monopolistic structures 
and natural monopolies.  Which structures and monopolies will be subject to the program and 
how will the results be measured? 
Answer:
   
The description of the Program on Improvement of Tariff Policy of Natural Monopolies for the period 
of 2002-2004 is given in the answer to Qu estion on Paragraph 52 of the Factual Summary. 
The Program on Restructuring of the Railway Transp ort of the Republic of Kazakhstan for the period 
of 2004-2006 (hereinafter referred as the Program),  which provides for the separation of the natural 
monopolistic (main-line railway) and competitive (t ransportation) sectors, was approved by the 
Government Resolution No.145 of 6 February 2004. 
After the reform, the natural monopolistic service of the railway sector, regulated by the Agency, is 
granting the main-line railway to carriers for the us e and administration of the transportation process. 
Carriers (owners of the rolling stock) and the ente rprises maintaining the ra ilway sector function in 
the competitive sector. 
To implement the Program, Kazakhs tan Temir Zholy Company (hereinafter referred as KTZ) has 
separated from itself two independent legal entities:   "Kazzheldortrans" JSC (a national carrier) and 
"Locomotive" JSC (locomotive header operator).  These two companies by th e Order of the Agency 
No. 104-OD of 4 March 2004, were registered in the State Register of companies dominating in 
curtain sector. 
The Agency also coordinated development of th e following joint stock companies:  "Luggage 
Transportation", "Commuter Transportation", "Railway Station Service", "Passenger Leasing 
Company", "Wagon-Service", and "Almaty Wagon Repair Plant".  
It also coordinated transfer of "Passenger Transpor tation" OJSC property to the following joint stock 
companies:  "Passenger Leasing Company", "Railw ay Station Service", "Wagon-Service", and 
"Luggage Transportation".  WT/ACC/KAZ/57 
Page 30  
 
 Moreover, it coordinated transfer of the loco motive rolling stock of "KTZ" to the "Passengers 
Transportation" OJSC, as well as transfer of the la undry shops property to "Passenger Transportation" 
OJSC.  
"Passenger Transportation" OJSC was excluded from the national section of the State Register of 
Natural Monopolies and was included into the national section of the State Register of Dominating 
Companies in the market of national and intern ational railway passenger transportation services, 
except for transportation of passengers in trains form ed of the rolling stock of Spanish firm "Patents 
Talgo S.A.", transportation of luggage, cargo, and posting by railway transport. 
Since transportation of goods by railway transpor t cannot be regulated under the Law of the Republic 
of Kazakhstan "On Natural Monopolies", the Order of Agency Chairman No. 242-OD "On Tariffs of 
"National Company "Kazakhstan Temir Zholy" of 25 May 2004 approved the tariffs for the main-line 
railway services, increasing the basic rates for thes e services by 18 per cent on the average since 20 
July this year. 
It formed the computation schedules to Order No . 242-OD by separation of the main-line railway 
services' share in the transportation of goods according to Price List 10-01.  It also defined the shares 
of the locomotive and car parks as well as of the goods and commercial departments in Price List 10-1 
by proportionally dividing the proceeds and costs. 
It differentiated the tariffs by types of destin ation, cargo, distance, and wagons, reasoning from the 
fixed general estimated cost  of goods transportation. 
The Agency issued this order as a temporary measure for the transition period until the final 
restructuring of the railway sector so as to allow the parties involved in the transportation services to 
adapt to the new environment of the railway transport functioning. 
The Agency plans to introduce the new tariff met hodology for the services of the main lines railway 
this year. Now the Agency is developing the methods  to calculate tariffs for the services of the main-
line railway.  Development of such methods is also stipulated in the Program on Improvement of the 
Tariff Policy of Natural Monopolies for the period of 2002-2004. 
The procedures for public hearings, concretizing the liabilities of natural monopolies on auditing and 
publishing the auditor's reports, as well as on regu lar implementation of fi nancial and technical 
examination by the antimonopoly body were introduced. Monitoring of fulfilment of the tariff estimates, reorganization of natural monopolies, pur chase of its shares, and operations with its fixed 
assets has also been introduced. 
The authorized body coordinated the lists of opera tions included into the main-line railway and the 
local railways (railway approach lines) services, so  as to qualify these services as railway transport 
sector natural monopoly services.  
In the context of the Program, this year the Agency approved the Methodology for Evaluation of the 
Effect of Natural Monopoly's Activity on Consumers of its Services (Goods, Works). 
FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
Question 30 
Paragraphs 70-71:  These two paragraphs cover the issue of judicial and administrative appeals, 
but do not appear to focus on the specific WT O-related issue of how importers and exporters 
(a) appeal customs and other WTO-related decision s within administrative channels; (b) appeal  WT/ACC/KAZ/57 
 Page 31 
 
 
 administrative rulings to a court or other "indepe ndent tribunal" as provided for in Article X of 
the GATT. 
Please elaborate these paragraphs to describe a nd clarify the legal basis for such appeals. 
Answer:  
The following documents regulate civil judicial procedures: 
- The Civil Code of Practice of the Republic of Kazakhstan; 
- Ratified international treaties, if they provide  for other rules than the mentioned Code of 
Practice; 
- Resolutions of the Constitutional Council (pertaining to constitutional norms); and 
- Resolution of the Supreme Court of the Repub lic of Kazakhstan (pertaining to the court 
rulings on certain categories of cases). 
The Civil Code of Practice defines the common j udicial procedure for the proceedings on civil, 
family, labour, housing, administrative , financial, economic, land, environmental, etc appeals as well 
as for special proceedings. Resolutions of the Suprem e Court are based on the judicial practice of the 
proceeding. 
The court of primary jurisdiction shall proceed w ith such appeals, as well as with reopening cases. 
The civil proceeding procedure is described in detail in Annex 3. 
POLICIES AFFECTING TRADE IN GOODS 
-  Trading Rights (the right to import and export) Question 31 Paragraph 73:  WT/ACC/SPEC/KAZ/8/Rev.1 st ates that Presidential Decree No. 2021 "On 
Liberalization of Foreign Economic Activities"  of 11 January 1995, provides that any natural 
and legal person may import and export, and that Law No. 2198 "On State Registration of Legal Entities and Registration of Branches and Representative Offices" of 17 April 1995 requires that all legal persons be registered if they have an aggregate annual income over 
prescribed threshold and employ permanent staff. 
Please confirm whether or not a firm or indivi dual must have state registration to carry out 
import and export activities. 
Answer:
 
Subject to the Law of the Republic of Kazakhstan "On Trade Activity Regulation" both natural and 
legal persons can export and import, i.e. carry out foreign trade. 
The said Law defines foreign trade as the trade activity comprising export of goods from Kazakhstan 
and/or importation of goods into Kazakhstan.  At that, export means export of goods and import 
means importation of goods. 
Article 12 of the Civil Code of the Republic of Ka zakhstan (General Part) de fines natural persons as 
citizens of the Republic of Kazakhstan, forei gn citizens, and persons without a citizenship. WT/ACC/KAZ/57 
Page 32  
 
 Article 33 of the same Code defines a legal person (legal entity) as an organization/entity, which: 
- owns, operates or manages a separate property; 
- supports its liabilities with this property; 
- can purchase and exercise property and non-property rights and liabilities on its behalf; 
- can be the claimant and responder in the court; 
- must have its own balance or estimate; and 
- must have a seal with its name. 
Subject to Article 34 of the said Code legal persons  can be divided into the following groups by the 
type of activity:  commercial or profit-making (prof it-making is the main goal of its activity) and non-
profit (profit-making and allocation of profits among th e stakeholder (owners) is not the main goal of 
its activity) companies. 
Commercial legal entities can have the following organizational-legal forms: 
- state owned enterprise; 
- partnership; 
- joint stock company; and 
- producers' co-operative. 
In accordance with Presidential Decree "On Partners hips" as of 2 May 1995 the partnerships, in their 
turn, can be created in the following forms: 
- complete partnership; 
- special partnership; 
- limited liability partnership; and 
- double liability partnerships. 
Non-profit legal entities can be created in the following organizational-legal forms: - establishment; 
- public union (non-governmental organization); 
- consumer cooperative; 
- public fund; 
- religious organization; 
- joint stock company; and 
- other forms stipulated by the special laws (facu lty of advocates, audit house, notary house, for 
instance). 
The legal entity's legal capacity comes into force in the moment of its creation and ceases with its 
liquidation. 
A legal entity is considered as created since the moment of its state registration in the justice 
authorities. 
The special Law of the Republic of Kazakhsta n "On State Registration of Legal Entities and 
Accounting Registration of Branches and Representa tive Offices" as of 17 April 1995 regulates the 
procedure, requirements and terms of legal entity registration. 
Subject to this Law the state registration of le gal entities includes checking whether documents of 
incorporation and other documents submitted to the state registration meet the laws of Kazakhstan,  WT/ACC/KAZ/57 
 Page 33 
 
 
 issuing the state registration certificate with the regi stered number, and entering the data on the legal 
person into the single State Register. 
Reorganization and liquidation of a legal entity is subject to the state registration too. 
Subject to the Civil Code of the Republic of Kazakhstan legal entities have the right to create 
branches and representative offices (missions) which are not legal entities themselves. They are given 
the property of the parent legal entity and func tion in accordance with the approved regulations. 
A branch is a separate subdivision of a legal entit y located beyond its place of residence and making 
all or some of its functions, including representative functions. 
A representative office (mission) is a separate s ubdivision of a legal entity located beyond its place of 
residence and protecting and representing the inter ests of this legal entity, making deals and other 
legal transactions on its behalf.  
Branches and representative offices ar e subject to accounting registration in the justice authorities. 
The accounting registration is a kind of the state registration. The accounting registration of branches and repr esentative offices includes checking whether the 
documents submitted to the accounting registration meet the laws of Kazakhstan, issuing the 
accounting registration certificate with the register ed number, and entering the data on branches and 
representative offices (missions) into the Br anches and Representative Offices Register. 
On 20 September 2004 Kazakhstan enforced the Law "On Amendments and A ddenda to Legal Acts 
of the Republic of Kazakhstan on State Regist ration of Legal Entities", which simplifies the 
principles, forms and terms of registration. 
Subject to the said Law henceforth legal entities, th eir branches and representative offices will obtain 
the following certificates from one source – the justice authorities: 
- state registration certificate; 
- taxpayer registration certificate; and 
- statistical certificate on registration in the State Statistical Register. 
According to the statistical data of the justi ce authorities small businesses in the form of limited 
liability partnerships dominate among the le gal entities registered in Kazakhstan. 
It should be noted that on 19 June 1997 Kazakhstan adopted the sp ecial law "On State Support of 
Small Business". 
As it was mentioned, subject to the Law of the Re public of Kazakhstan "On Trade Regulation" natural 
persons also have the right to carry  out foreign trade in Kazakhstan. 
The trade activity of natural persons  is more of entrepreneurship. 
Subject to the Law of the Republic of Kazakhstan "On Individual Entreprene urship" persons making 
business without establishing a legal entity must re gister as individual entrepreneurs in the local 
territorial tax body. 
The state registration in the territorial tax bod y means getting registered and submitting periodical 
reports. WT/ACC/KAZ/57 
Page 34  
 
 In this view, foreign firms and persons carrying ou t trade in Kazakhstan must officially register. 
Question 32 
Please confirm that firms not invested in Kazakhstan and individuals (natural persons) may 
register for the purpose of importing and expo rting without the need to establish a physical 
presence in Kazakhstan. 
Answer:
 
Under the civil legislation of Kazakhstan foreign firms (legal entities) and individuals (natural 
persons) willing to export and impor t in Kazakhstan without establishing the physical presence have 
the right to carry out such business under civil contracts made with partners in Kazakhstan. 
At the same time, foreign firms and individuals may take share in establishing a legal entity in 
Kazakhstan as well as create branches and representa tive offices of foreign firms with the purpose of 
foreign trade (export and import) in Kazakhstan. 
Question 33 
Paragraph 76:  Please outline the legal basis for the need to register to have the right to be 
engaged in certain types of activities.  What forms of activity require activity licenses?  Are any 
of these explicitly related to the right to import or to export?  
Answer:  
The state registration of legal entities and account ing registration of branches and representative 
offices has the following purpose: 
- certify the fact of creation, reorganization and li quidation of a legal entity as well as branches 
and representative offices (missions); 
- keep account of created, reorganized, and shut down legal entities as well as created and 
liquidated branches and representative of fices in the Republic of Kazakhstan; 
- keep the single state register of legal entities and register of branches and representative 
offices; and 
- sale of information on legal entities, their branch es and representative o ffices (except for the 
information which is confidential or a commerc ial secret) at the prices determined by the 
antimonopoly body. 
Subject to the Law of the Republic of Kazakhsta n "On Licensing" (chapter II) 107 activities require 
the licence.  At present there is a draft Law of  the Republic of Kazakhstan "On Amendments and 
Addenda to Legal Acts on Licensi ng" developed in submitted to th e Parliament of the Republic of 
Kazakhstan for approval, which is  supposed to exclude 21 activ ity from the licensed activities. 
By now the main activities requiring the licence ar e the activities dealing in the following areas: 
- especially hazardous objects and/or objects of much national importance;  
- servicing people and legal entities; 
- concentration of financial resources; and 
- making currency operations. 
This list also includes the activities dealing with pr oduction, storage, design and development, etc.  WT/ACC/KAZ/57 
 Page 35 
 
 
 Subject to Article 12 of the Law of the Republic of Kazakhstan "On Licensi ng" export and import of 
certain goods (services) requires the licence.  The Government of the Republic of Kazakhstan defines 
the list of goods subject to licensing. 
Governmental Resolution No. 1037 of 30 June 1997, for instance, approves the list of goods 
(services) requiring the licence for export and impor t, which also includes the work and services in 
military-technical cooperation besides goods. 
Question 34 
Paragraph 78:  Could we have an update on efforts to amend the law on registration to 
streamline it, remove duplicative and burdensome requirements, and ensure that all fees were 
related to the cost of services rendered, not the value of the good. 
We welcome Kazakhstan's intention to bring its registration fees into conformity with the 
requirements of Article VIII of GATT.  Please confirm that this will be achieved prior to 
accession to the WTO. 
Answer:  
In order to bring the practice of state duties for the registration of legal entities in line with the 
transparency principles and in line with the provisi ons of Article VIII of GATT, the Government of 
Kazakhstan resolved to revise the methods of compu ting the duties for the state registration of legal 
entities defined in MCI (monthl y calculated indices) and on ad valorem  principle. 
To implement this resolution the Government of Kazakhstan established the Interagency Work Group. 
The main objective of the Work Group is to deve lop the new methods for computation of the state 
duties for the state registration of legal entities. 
The Work Group's results are supposed to be u sed in development of the corresponding draft 
governmental resolution, which will provide fo r introduction of the new methodology for the 
computation of the state duties for the state regist ration of legal entities based on the cost of services 
rendered. 
Question 35 
Paragraph 79:  Does "establishment" in Kazakhsta n mean commercial registration?  If so, say 
so.  If not, then define it. 
Answer:  
Subject to Article 177 of the Tax Code of the Re public of Kazakhstan a non-resident's permanent 
establishment in the Republic of Kazakhstan is de fined as the permanent place of activity, through 
which the non-resident makes all or part of its  business, including the activity made through a 
delegate (authorized person); to be precise: 
- any place of activity associated with production, processing, integration, packing, delivery, 
sale of goods regardless of the terms of activities; 
- any place of management, a branch, division, representative office (mission), bureau, office, 
room, agency, factory, shop, laboratory, store, warehouse of the non-resident regardless of the 
terms of activity; WT/ACC/KAZ/57 
Page 36  
 
 - any place of activity associated with extraction of mineral resources, including the place of 
hydrocarbons extraction: mine, pit, oil and/or  gas well, surface mine, land or offshore rigs 
and/or wells regardless of the terms of activity; 
- any place of activity (including control and superv ision activity) in respect of pipelines, gas 
pipelines; exploration and/or extraction of mi neral resources; installation, assembling, 
adjusting, starting up and/or maintenance of equi pment regardless of the terms of activity; and 
- any place of activity associated with operation of game-playing machines (including 
consoles), computer networks and communication channels, attractions (sideshows), transport 
and other infrastructure regardless of the terms of activity. 
A construction site, installation or assembly site, and design work make a permanent establishment 
regardless of the terms of works. 
At that, a construction site (object) is define d as the place for activity on construction and/or 
reconstruction of realty objects, including constr uction of buildings, structures and/or installation 
work; construction and/or reconstr uction of bridges, roads, channe ls; laying pipes, installation of 
energy, technological, and other equipment and/or carrying out other similar activities. 
A construction site (object) ceases to exist on the next day after the day of commissioning the object 
(signing the acceptance documents) and complete payment for the construction. 
A non-resident also establishes a permanent establishm ent in the Republic of Kazakhstan if makes the 
following: 
- insures or reinsures risks in the Republic of  Kazakhstan through an authorized person; 
- provides services in the Republic of Kazakhstan fo r over ninety consecutive calendar days in 
any consecutive period of twelve months ending in the current tax period through employees 
or personnel employed for this purpose; 
- takes a share in a special partnership (associa tion agreement) created in accordance with the 
laws of the Republic of Kazakhstan and ope rating in the territory of Kazakhstan; 
- makes chargeable exhibitions in the Republic of Kazakhstan and/or exhibitions that sell 
goods; and 
- entitles a resident or non-resident with the right  to represent its interests in the Republic of 
Kazakhstan, act or make contracts (agreements, deals) on its behalf. 
Temporary or seasonal breaks in the mentioned activ ities do not result in liquidation of the permanent 
establishment. 
A non-resident making business in the Republic of  Kazakhstan through an independent middleman 
(broker and/or other independent agent acting in acc ordance with the contract of agency, commission, 
consignment or any other similar contract) with no authority to sign contracts on behalf of this non-
resident is not considered as a permanent establishment. 
An independent agent is defined as a person acti ng in the framework of his(her) regular (main) 
activity and which is independent from the non-resident both legally and economically. 
A subsidiary (affiliated) organization of the non-resi dent created under the laws of Kazakhstan is not 
considered as the permanent establishment of the parent organization, if there are no relations meeting provisions of subparagraph (5) of paragraph 3 of Article 177 of the Tax Code of the Republic of 
Kazakhstan between the parent and its affiliated (subsidiary) organization. 
A non-resident providing services of provision of fore ign personnel for the work in the territory of 
Kazakhstan to another legal entity, including a no n-resident, making business in the Republic of  WT/ACC/KAZ/57 
 Page 37 
 
 
 Kazakhstan through a permanent establishment shal l not be considered as a permanent establishment 
in Kazakhstan for such services provided that it meets all of the following requirements: 
- such personnel acts exclusively on behalf and in the interests of the legal entity it was 
assigned to; 
- the non-resident providing the services on provis ion of foreign personne l is not responsible 
for the results of work of th is personnel in Kazakhstan; and 
- the non-resident's income from provision of fore ign personnel shall be determined taking into 
account the time spent by this personnel for execution of its duties on behalf and in the interests of the legal entity it was assigned to , and this income amount shall not exceed 
10 per cent of the total expenses on provision of this personnel incurred by the non-resident.  
To confirm the total amount of expenses on provision of foreign personnel the non-resident 
shall submit copies of accounting documentation to the service consumer. 
Regardless of whether non-resident is registered  in the tax body or not, the non-resident's activity 
meeting provisions of this Article  makes a permanent establishment. 
In addition we inform that chapters 28, 29 and 30 of the Tax Code of the Republic of Kazakhstan 
regulates the following: 
- Taxation of income of non-resident legal entities making business without a permanent 
establishment in Kazakhstan; 
- Taxation of income of non-resident lega l entities making business through a permanent 
establishment in Kazakhstan; and 
- Taxation of income of non -resident natural persons. 
The Tax Code of the Republic of Kazakhstan defi nes non-residents as natu ral and legal persons, 
which are not residents of the Republic of Kazakhstan. 
Annex VI lists requirements under Governme nt Resolution No. 1037 dated 30 June 1997 and 
No. 1031 of 27 June 1997 (for alcohol) for licensing of firms and individuals to conduct import and 
export activities in certain goods, i.e., those lis ted in Annex V of WT/ACC/SPEC/KAZ/8/Rev.1. 
Question 36 Please confirm that such a licence is not necessary for the import and export of all other goods. 
Answer:
 
Annex VI of the Factual Summary contains th e Rules on Licensing Export and Import of all goods 
subject to licensing and listed in Annex V of the F actual Summary. In this view Kazakhstan confirms 
that Annex V lists all goods that require the licence for export and import. 
It should be noted that subject to paragraph 1 of Article 12 of the Law of the Republic of Kazakhstan 
"On Licensing" the Government determines the list of goods that require the licence for export and 
import. Government Resolution No. 1037 "On Licensi ng of Export and Import of Goods (Services) in 
the Republic of Kazakhstan" dated 30 June 1997 stat es the requirements to the licensing of export and 
import of goods except for ethyl spirit and alcoho lic products, and Government Resolution No. 1031 
"On Licensing of Import of Ethyl Spirit and alcoho lic Products in the Republic  of Kazakhstan" dated 
27 June 1997 states the rules on licensing the ethyl spirit and alcoholic products. WT/ACC/KAZ/57 
Page 38  
 
 Question 37 
Please indicate if it is necessary in any ca se for a registered firm or individual physically 
invested in Kazakhstan to be able to acquire the import activity licence.   
For example, Annex VI of WT/ACC/SPEC/KAZ/6/Rev.1 states that in order to obtain import 
licenses for alcoholic beverages, an applicant must already have a licence for production of 
alcohol products, or for storage and sale of et hyl spirit in case of importing ethyl spirit. 
Answer:
 
Article 10.1 of Law of the Republic of Kazakhstan No. 429-1 "On State Regulation of Production and 
Circulation of Ethyl Spirit and Alcoholic Products" of 16 July 1999 provides the following in respect 
of import: 
- ethyl spirit can be imported by the licence for import of ethyl spirit provided that the importer 
has the licence for production of the alcoholic pr oducts for which the ethyl spirit will be used; 
and 
- alcoholic products can be imported by the licen ce for import of alcoholic products and with 
the licence for either production of alcoholic pro ducts or storage, wholesale sale of alcoholic 
products (except for beer). 
Article 11 of the Law of the Republic of Kaza khstan "On State Regulation of Production and 
Circulation of Ethyl Spirit and Alcoholic Products" prohibits retail sale of ethyl spirit except for sale of ethyl spirit in drugstores that ha ve the licence for their activity.  It  is allowed to sell ethyl spirit in 
accordance with the procedure defined by the authorized body as follows: 
- selling to pharmaceutical and state medical organizations if they have the licence for their 
activity; and 
- selling to manufacturers of alcoholic products (except for beer manufacturers); to 
organizations using ethyl spirit for technical  purposes or to manufacturers of non-alcoholic 
products if they submit documents supporting the application/consumption norms and the 
need in the amount of ethyl spirit approved by the authorized body. 
A reason behind the restriction on the purchase of ethy l spirit is that this product is highly toxic, 
dangerous for the human health and for the environm ent.  That is why the use of spirit must be 
maximally safe and limited to the use as the raw material and for the medical purposes.  This is the rationale behind the requirements to the import if spirit. 
An importer is required to have the licence for pr oduction or storage and wholesale sale of alcoholic 
products (except for beer) because  alcoholic products belong to the kind of products which has a 
number of qualification requirements to its storage.  Obtaining the said licence confirms the 
conformity to such a qualification. 
Subject to Article 15 of the Rules on Licensing th e Production of Ethyl Spirit and Alcoholic Products, 
Storage and Wholesale Sale of Alcoholic Products (Except for Beer) as well as Retail Sale of 
Alcoholic Products (Except for Beer) appr oved by Government Resolution No. 1258 of 
27 August 1999 an applicant must have the following in  order to obtain the licence for the storage and 
wholesale sale of alcoholic products (except for beer): 
- specialized premises:  exclusively for the stor age, reception and issue of alcoholic products;  WT/ACC/KAZ/57 
 Page 39 
 
 
 - facility premises: for the storage of packages, sale of products, packing and 
unpacking, as well as for the sta nd/showcase for the goods samples; 
- engineering utility premises: for storage of equipment, parking of handling 
machinery, fire prevention (if there is no a fire alarm system), etc. 
- drives and entrances for cars and/or railway siding (rail access) to the specialized premises 
mentioned in subpa ragraph 1 above; 
- communication systems: cold water supply, sewer age, heating, power supply, air conditioning 
(venting system), and fire prevention means, fire alarm system; 
- technical documentation regulating the safety for the life and health of consumers (sanitary 
norms and rules, state standards (GOSTs), norms and rules on fire safety, environment 
protection); 
- measurement instrumentation and its calibra tion schedule approved by the authority on 
standardization, metrology and certification; 
- the storage conditions meeting the established requirements (temperatu re regime and other 
parameters, goods neighbourhood, etc) to preser ve the product quality while storing; and 
- overalls and other protective means to ensure th at the work conditions for the employees meet 
the requirements of sanitary hygienic norms and rules, an safety rules. 
Question 38 
Are there any other such requi rements to be able to im port other goods under licence? 
Answer:  
Subject to Government Resolution No. 1037 an app licant shall submit the following to the Licensor in 
order to obtain the licence for export and import of goods: 
(a) application for the licence (Annex 1, 2); 
(b) a copy of contract (agreement) of purchase or  other contract of disposal made between the 
parties of the foreign trade deal and th e original copy for verification; and 
(c) contract made between the exporter and ma nufacturer or importer and consumer, if the 
applicant is an agent. 
(d) State registration certificate:  - for legal entities: the state registration certificate; 
 - for natural persons: the state registration of entrepreneur (patent); 
(e) a document supporting the payment of the licence duty; 
(f) the activity licence issued by th e authorized governmental body; 
(g) permission from the Government of the Repub lic of Kazakhstan or the relevant governmental 
body for certain goods in accordance with Annex 2-5 hereto; and 
(h) the list of submitted documents. 
Documents specified in subparagraphs "c", "d", "e ", "f", "g" shall be pa perbound photocopies with the 
seal and signature of the chief executive officer (or deputy chief) affixed to it. 
The applicant is responsible for the reliability of information submitted. 
Subject to Government Resolution No. 1031 an app licant shall submit the following to the Licensor in 
order to obtain the licence for import of ethyl spirit and alcoholic products: WT/ACC/KAZ/57 
Page 40  
 
 (a) application for the licence in the established form; and 
(b) a copy of contract (agreement) of purchase made  between the parties of the foreign trade deal 
and the original copy for verification. 
(c) State registration certificate:  - for legal entities:  the state registration certificate; 
- for natural persons:  the state registration of entrepreneur (patent); 
(d) a document supporting the payment of the licence duty; 
(e) the licence for production of alcoholic products in case of import of ethyl spirit; and (f) the licence for storage and wholesale sale of alc oholic products in case of import of alcoholic 
products. 
Documents specified in subparagraph "c", "e", "f " shall be paperbound photocopies with the seal and 
signature of the chief executive officer (or deputy chief) affixed to it. Importer of beer shall not 
submit documents specified in subpa ragraph "f". The applicant is responsible for the reliability of 
information submitted. 
Annex VI of the Factual Summary states all requirements for obtaining the licence for import of 
goods. 
Question 39 
Please explain the response to Question 81 in WT /ACC/KAZ/50.  It states, "Given requirements 
for a licence to produce alcoholic beverages description are removed." 
Answer:
 
Government Resolution No. 663 of 17 June 200 4 eliminates application of quota for import of 
alcoholic products in the amount of 20 per cent of the annual output.  It does not eliminate the 
licensing for the import of such goods. 
Government Resolution No. 1031 "On Licensing of Im port of Ethyl Spirit and Alcoholic Products in 
the Republic of Kazakhstan" da ted 27 June 1997 states the rules on licensing the ethyl spirit and 
alcoholic products. 
The Tax Committee of the Ministry of finances of  the Republic of Kazakhstan issues the licence for 
the import of ethyl spirit and alcoholic products. 
Article 10.1 of Law of the Republic of Kazakhstan No. 429-1 "On State Regulation of Production and 
Circulation of Ethyl Spirit and Alcoholic Products" of 16 July 1999 provides the following in respect 
of import: 
- ethyl spirit can be imported by the licence for import of ethyl spirit provided that the importer 
has the licence for production of alcoholic produc ts for which the ethyl spirit will be used; 
and 
- alcoholic products can be imported by the licen ce for import of alcoholic products and with 
the licence for either production of alcoholic pro ducts or storage, wholesale sale of alcoholic 
products (except for beer).  WT/ACC/KAZ/57 
 Page 41 
 
 
 Question 40 
Please confirm that this requirement to be licensed  to import or to export is separate from the 
requirement to register and apply for a licence from the National Bank in order to acquire 
foreign exchange for trade. 
Answer:  
Residents need the licence and registration certificate from the National Bank in order to be able to 
grant and receive commercial credits for the period of over 180 days.  Therefore the licensing and 
registration in the National Bank has nothing to do with the licensing of export and import of goods as 
well as it has nothing to do with the purch ase of foreign currency for foreign trade. 
No licence or registration certificate from the National Bank is required for the purchase of foreign 
currency in the domestic market; resident legal entit ies and natural persons only are supposed to have 
a foreign trade contract. 
Question 41 
Once a trader has acquired a licence under Government  Regulation No. 1037, is it necessary to 
apply for additional specific import  licenses for the goods themselves? 
Answer:  
No additional specific import licenses for goods are required. 
A. IMPORT REGULATION 
-  Customs tariff Question 42 Paragraph 82:  Please provide a chart that indi cates how many tariff lines are zero; 0-less than 
5 per cent; 5 – less than 10 per cent; 10 – less than 15 per cent; 15 – less than 20 per cent; 
20-30 per cent; and greater than 30 per cent, including the ad valorem  equivalents of specific 
and compound tariff rates.  
Answer:
 
The structure of the import customs tariff of the Re public of Kazakhstan is represented in the table in 
Annex 4. 
Question 43 
Paragraph 83:  Please indicate the rate of duty charged for imports under GSP.  Please list the 
countries eligible for this program.  Please indica te if there is any country for which the non-
MFN double tariff rate applies. 
Answer:  
The goods imported to the customs territory of Kazakhstan and originating from the developing 
countries enjoying the national preferences system of  the Republic of Kazakhstan are applied customs 
duties in the amount of 75 per cent of the customs duties granted on the MFN principle. WT/ACC/KAZ/57 
Page 42  
 
 The goods imported to the customs territory of Ka zakhstan and originating fr om the least developed 
countries enjoying the national preferences system of the Republic of Kazakhstan are exempted from the customs duties. 
The system of tariff preferences of Kazakhstan is based on GSP and applies to 104 developing 
countries and 47 least developed countries.  The lis t of countries is enclosed in Annex 5.  The 
preferential treatment applies to over 1,500 lines.  This list of goods mainly includes the goods that 
are not produced in Kazakhstan and items of handicraf t, art, and antiques (citrus plants, coffee, tea, 
caoutchouc, cork, statuettes, woven furniture, for instance). 
Question 44 
Please indicate if there is any country for wh ich the non-MFN double tariff rate applies. 
Answer:
 
Subject to Government Resolution No. 1389 of 14 November 1996, Kazakhstan doubled the customs 
rates only in respect of imported goods of unknown origin. 
Question 45 
With reference to Question 53 of WT/ACC/KAZ /50, in what nomenclature is Kazakhstan 
conducting its WTO tariff negotiations, e.g., HS 2002?  In what nomenclature are Kazakhstan's 
current applied rates established?  If these are different, how does Kazakhstan intend to 
proceed to reconcile the two schedules? 
Answer:  
The tariff offers of Kazakhstan as well as the app lied import customs rates of Kazakhstan are based on 
HS 2002. 
- Tariff rate quotas, tariff exemptions Question 46 Paragraph 85:  Does Kazakhstan currently appl y TRQs?  What "sensitive" products are 
planned to be subject to TRQs under the new legislation? 
Answer:
 
At present Kazakhstan applies no TRQs.  However,  the Law of the Republic of Kazakhstan "On 
Trade Regulation" has provisions on application of  TRQs.  The Government of Kazakhstan resolved 
that it is advisable to apply tariff quotas to the import of certain kinds of meat and cane sugar. 
In respect of this the Ministry of Industry and Tr ade in collaboration with the Ministry of Agriculture 
is working on the government resolution to define the customs duties rates within quota and outside 
quota as well as determine the administration mechanism. 
Question 47 Does Kazakhstan plan to use import licensing to apply TRQs?  WT/ACC/KAZ/57 
 Page 43 
 
 
 Answer:  
It is planned to administer tariff rate quotas am ong foreign trade participants by issuing licenses for 
import of goods.  The applications for import of goods within the tariff quota will be administered by 
first come, fist served method. 
Question 48 
Paragraph 87:  On what WTO basis does Ka zakhstan justify prohibition of temporary 
importation of foods and beverages?  Does Kazkhstan deny transit to shipments of such goods across its territory? 
Answer:
 
Subject to Article 188 of the Customs Code of th e Republic of Kazakhstan temporary importation of 
goods and vehicles is such a customs treatment wh ere foreign goods and vehicles are used in the 
customs territory of the Republic of Kazakhstan w ith complete or partial exemption from the import 
customs duties and taxes, without application of non-tariff regulation measures, except for the goods safety requirements with subsequent removal of goods  and vehicles from the customs territory of the 
Republic of Kazakhstan. 
Subject to paragraph 2 of Article 190 of the Cu stoms Code temporary imported goods must stay 
unchanged, except for the changes due to natu ral wear-and-tear under normal conditions of 
transportation, storage or use (operation).  It is a llowed to make operations necessary to preserve such 
goods, including small repair, technical maintenance an other operations necessary to keep them in a 
good condition, provided that the goods identity is  preserved so as the customs body could identify 
them when the goods are coming-out. 
Subject to paragraph 2 of Article 189 of the Cu stoms Code of the Republic of Kazakhstan it is 
prohibited to place the following under the customs treatment of temporary importation of goods and 
vehicles: 
- spare and component parts (except for when th ey are designated for the temporary imported 
vehicles), consumables and samples, raw mate rials, semi-finished goods, except for the 
temporary importation of one piece (unit) for th e advertising and/or de monstrational purpose; 
- food products, beverages, including alcoholic ones, tobacco products, except for the 
temporary importation of one piece (unit) for th e advertising and/or de monstrational purpose; 
- factory waste; and 
- the goods banned for import into the custom s territory of the Republic of Kazakhstan. 
As for subparagraph (1) of Article 189, this subpa ragraph takes into account that temporary imported 
spare and component parts, consumables and sampl es, raw materials, and semi-finished goods cannot 
stay unchanged within three years (the temporary importation term) because of the definite purpose of 
their importation.  The listed goods are qualified as consumables, because the goods themselves have 
no functionality. 
As for subparagraph (2) of paragr aph 2 of Article 189, this subparagraph takes into account that 
temporary imported food products, beverages (including alcoholic), and tobacco products also cannot 
stay unchanged.  There is no need to import th em if they are not supposed to be consumed. 
The same is in respect of subparagra ph (3) of paragraph 2 of Article 189. WT/ACC/KAZ/57 
Page 44  
 
 As for subparagraph 4 of paragra ph 2 of Article 189, the Government  of the Republic of Kazakhstan 
approved the list of goods banned for importati on to the customs territory of Kazakhstan: 
- Weapon of war of any kind and ammunition, mass destruction weapon, as well as materials 
and equipment, which could be used fo r creation of mass destruction weapon.  
Note:  The goods listed here may be imported in accord ance with the following legal acts of the Republic of 
Kazakhstan or by permission from the Government of the Republic of Kazak hstan: under Law of the Republic 
of Kazakhstan No. 9-1 "On Export Control" of 18 June 1996.  This Law states the principles and procedure for 
the export control of arms, military equipment, nuclear  and special non-nuclear materials, military products, 
double purpose goods and technologies , raw materials, equipment, technologies, scientific information and 
services associated with their production and use in the interests of both international and national security of 
Kazakhstan, for the consolidation of non-dis tribution of the mass destruction weapon. 
- Narcotics, psychotropic agents and precursors as well as tools for their consumption. 
Note: The goods listed here may be imported in accordan ce with the following legal acts of the Republic of 
Kazakhstan:  Law of the Republic of Kazakhstan No. 279-1 "On Narcotics, Psychotropic Agents, Precursors, 
and Measures for Prevention of their Illegal Circulation and Abuse" of 10 July 1998. 
Subject to this Law "import and export of narcotics,  psychotropic agents and precursors at the national 
and customs borders requires the licence and certificate issued under the laws of the Republic of 
Kazakhstan". 
- Printed and art materials designated to undermine the political and public systems, 
propagandizing war, terrorism, violation, racism , as well as obscene (pornographic) materials. 
Subject to paragraph 1 of Article 213 of the Cust oms Code of the Republic of Kazakhstan any goods 
may be placed under the transit customs treatment, provided that: 
- such goods are not banned for importati on to and export from Kazakhstan. 
 
Government Resolution No. 681 "On A pproval of Goods and Vehicles Banned 
for Importation to and Export from the Re public of Kazakhstan, List of Goods 
Banned for Placing under Certain Customs Treatments, as Well as Bans and Limitations on Operations with Goods Placed under Certain Customs 
Treatments" of 10 July 2003 approves the following bans: 
1.  Goods Banned for Importation to the Republic of Kazakhstan 
- Weapon of war of any kind and ammunition, mass destruction weapon, as well as 
materials and equipment, which could be used for creation of mass destruction weapon;  
- Narcotics, psychotropic agents and pr ecursors as well as tools for their 
consumption; and 
- Printed and art materials designated to  undermine the political and public 
systems, propagandizing war, terrorism, vi olation, racism, as well as obscene 
(pornographic) materials. 
2.  Goods Banned for Export fr om the Republic of Kazakhstan 
- Weapon of war of any kind and ammunition, mass destruction weapon, as well as 
materials and equipment, which could be used for creation of mass destruction weapon;  WT/ACC/KAZ/57 
 Page 45 
 
 
 - Works of art, ancient items (antiquities) and other items with significant art, 
historic, scientific or cultural value; 
- Animals and plants registered in the Red Book and saiga horns; 
- Narcotics, psychotropic agents and pr ecursors as well as tools for their 
consumption; and 
- Cancelled securities; 
 
- such goods will be transported by the transit ways and destinations, if the 
 Government of the Republic of  Kazakhstan will define such; 
- the goods will be transported in time al located by the customs body in accordance 
 with the usual terms of delivery based on the transport vehicle's capacity, destination 
 and other conditions of transportation, but not exceeding the maximal period defined 
 as one month per two thousand kilometres; and - the goods will be delivered in unchanged c ondition, except for the changes due to the 
natural wear-and-tear under the normal cond itions of transportation and storage. 
- Fees and charges for services rendered Question 49 Paragraph 91:  How will Kazakhstan bring its tr ansit escort fees into conformity with WTO? 
Answer:
 
By now the Customs Control Committee of the Mini stry of Finance of the Republic of Kazakhstan 
developed and submitted to the G overnment of the Republic of Kazakhstan the draft government 
resolution providing for the revision of the cust oms escort fees rate. The customs fees will be 
computed without the salary component and it will be based on the cost of services rendered, which meets the requirements of Article VIII of GATT. 
Question 50 
Please confirm that the fees for customs clea rance and for customs escort are the only 
remaining customs fees. 
What are the fees for customs warehousing of goods?  Are these ad valorem ?  Do they vary with 
the length of stay in the warehouse? 
Answer:
 
Subject to Government Resolution No. 669 of 8 July 2003 Kazakhstan applies the following customs 
fees and other levies (see WT/ACC/KAZ/50/Add.1): 
- customs clearance fees (€ 50 per the main sheet  of the customs declaration and € 20 per every 
additional sheet); 
- customs escort fees1 computed in MCI (monthly calculation indices) depending on the 
distance; 
                                                      
1 2 MCI1 (US$ 13.5 or € 11.1) up to 50 km; 4 MCI (US$ 26.9 or € 22.1)  for distance from 50km to 
100km; 7 MCI (US$ 47.2 or € 38.7) for distance from 100km to 200km; 14 MCI (US$ 94.4 or € 77.4) for 
200km to 400km; 21 MCI (US$ 141.57 or € 116) for distance from 400km to 600km; 29 MCI (US$ 195.5 or 
€ 160.3) for distance from 600km to 800km; 36 MCI (US$ 242.7 or € 198.9) from 800km to 1,000km; 54 MCI (US$ 364 or € 298.5) from 1,000km to 1,500km; 72 MCI (US$ 485.4 or € 398) from 1,500km to 2,000km;  89 
MCI (US$ 600 or € 492) for over 2,000km
. WT/ACC/KAZ/57 
Page 46  
 
 - customs fees for storage of goods (€ 0.17 per 1 m2 per day in open place; € 0.48 per 1m2 per 
day indoor; € 0.86 per 1m2 per day in a special building); 
- fee for obtaining the licence for created a cust oms warehouse (€ 9,000 for the area up to 
1,000 m2 inclusive; € 14,000 for the area from 1,000 to 2,000 m2; € 19,000 for the area over 2,000 m2); 
- fee for obtaining the licence for creating a duty-free shop (€ 20,000); 
 - fee for obtaining the licence for creating a free customs warehouse (€ 19,000 for the 
  area from up to 1,000 m2; € 28,000 for the area over 1,000 m2);  - fee for obtaining the licence for creating a temporary (limited) storage site (€ 8,000); - fee for obtaining the customhouse broker licence (€ 5,000); 
- fee for obtaining the customs carrier licence (€ 5,000); 
- fee for issuing the customs specialist qualification certificate (€ 200); 
- fee for preliminary resolution (€ 50). 
This is the exhaustive list of fees collected by the customs bodies of the Republic of Kazakhstan. 
The amount of customs duties for the storage of goods depend on the warehouse conditions for the 
storage of goods. 
-  Application of internal taxes to imports 
 -  VAT Question 51 Paragraph 94:  Russia will soon eliminate the pr actice of applying VAT to exports of energy 
products to CIS countries.  Will Kazakhstan end its discriminatory practice of exempting 
imports from Russia of oil, natural gas, and gas condensate from VAT at that time? 
Answer:
 
Subject to the Agreement on Indirect Taxes Princi ples in Mutual Trade between the Government of 
Kazakhstan and the Government of  Russia as of 9 October 2000 ap proved by Government Resolution 
No. 1504 of 6 October 2000, the goods exported from th e customs territory of one Party and imported 
to the customs territory of the other Party under the customs treatment of export used to be subject to 
indirect taxes at zero rate in accordance with the na tional legislations of the Parties, except for the 
natural gas and oil, including condensed gas. 
On 15 September 2004 Kazakhstan and Russia signed the Protocol on Making Changes to the said 
Agreement providing that natural gas, oil and cond ensed gas under the said treatment shall be subject 
to indirect taxes by the principle of the destination country. 
On 10 December 2004 the Parliament of the Repub lic of Kazakhstan adopted the draft Law "On 
Ratification of Protocol on Making Changes in Agreement on Indirect Taxes Principles in Mutual 
Trade between the Government of Kazakhstan and th e Government of Russia as of 9 October 2000". 
Therefore, Kazakhstan and Russia will simultaneously eliminate practicing application of VAT to the 
export of energy products (natural gas, oil, an d condensed gas) and since 1 January 2005 these goods 
will be charged VAT by the principle of the destination country.  WT/ACC/KAZ/57 
 Page 47 
 
 
 Question 52 
Paragraph 94:  Could you clarify how the "offse tting system" applied for imports of natural 
gas, oil and gas condensate from the Russian Federation works in practice? 
Answer:  
Subject to paragraph 3 of Article 235 of the Ta x Code, the VAT due to the suppliers of goods 
imported to Kazakhstan in accordance with the sp ecial export and import taxation system under the 
international agreement shall be set off in a ccordance with the procedure established by the 
Government of the Republic of Kazakhstan. 
Government Resolution No. 556 of 22 May 2002 (a vailable from the Secretariat through document 
WT/ACC/KAZ/57/Add.1) approved the procedure for setting off the VAT due to the suppliers of 
goods imported to Kazakhstan in accordance with th e special export and import taxation system under 
the international agreement. 
Subject to paragraph 1 of Resolution No. 556 the VAT  due to the suppliers of  natural gas, oil, and 
condensed gas imported to Kazakhstan from Ru ssia shall be set off to the VAT payers. 
The VAT is set off in the amount of the tax rate applied in the Russian Federation on the date of 
shipment of the mentioned goods from Russia upon presenting the invoice with the specified VAT 
amount issued by the exporter from Russia. 
Question 53 
We have also received information that Russia has cancelled the application of VAT on energy 
exports to CIS countries, with effect from 1 January 2005.  What are the ramifications for 
Kazakhstan's VAT regime? 
Answer:  
On 15 September 2004 Kazakhstan and Russia signed the Protocol on Making Changes to the said 
Agreement providing that natural gas, oil and cond ensed gas under the said treatment shall be subject 
to indirect taxes by the principle of the destination country. 
On 10 December 2004 the Parliament of the Repub lic of Kazakhstan adopted the draft Law "On 
Ratification of Protocol on Making Changes in Agreement on Indirect Taxes Principles in Mutual 
Trade between the Government of Kazakhstan and th e Government of Russia as of 9 October 2000". 
After the effect of this Protocol export of natu ral gas, oil and condensed gas from the Republic of 
Kazakhstan will be charged VAT at zero rate, a nd import of these products will be charged at 
15 per cent rate, which is subject to setting off fo r Kazakh taxpayers in accordance with Article 235 of 
the Tax Code. 
Question 54 Paragraph 95:  Please confirm that the 15 per cent  VAT is applied to all other goods, imported 
and domestic, and that there are that there are no  exemptions from the VAT other than those 
listed in this paragraph, e.g., for small busin esses with trade turnover below a certain threshold, 
or domestic raw agricultural produce at its first point of sale from the farm. WT/ACC/KAZ/57 
Page 48  
 
 Answer:
 
In accordance with Article 206 of the Tax Code the following is subject to VAT:  
- taxable turnover; and 
- taxable import. 
Two rates of VAT have been determined by the Tax code: 
- 15 per cent, applied to the rates of th e taxable turnover and taxable import; and 
- 0 per cent, applied to:  (i) goods e xport and (ii) international traffic. 
Proceeds turnovers not exceeding 12,000 times value of MCI (approximately US$ 84,000) are not 
subject to VAT taxation. 
This rate is applied independently of the residence of VAT payer and is directed to the exclusion of 
the necessity in registration as VAT payer upon small turnovers (basically is applied by 
representatives of small business). 
With the purpose of the state support of small business development in Kazakhstan the special tax 
treatment for small businesses is stipulated in the Ta x Code, main point of which lies in the special 
(simplified) procedure of settlements with budget on separate types of taxes: 
- for legal persons – subjects of small-scale busin ess the simplification is applied to corporative 
income and social taxes; and 
- for individual businessmen – on individual income and social taxes. 
The special procedure of settlements with budget is applied in respect of the calculation mechanism, 
payments of said taxes, and also the order of tax accounts making on them, and taking into 
consideration the different stages of entrepre neurship's development the following forms are 
stipulated: 
- on the basis of the one-time certificate (for na tural persons, which activity has the occasional 
character, that is no more than 90 days altogether during the year);  
- on the basis of licence (for individual businessmen not using the labour of wage earners and 
receiving the income no more than 2.0 million tenge per year (approximately 
US$ 15.5 thousand).  The main point of settleme nts form with budget is that businessmen pay 
3 per cent of the amount of the declared estimat ed income before stating of the activity's 
implementation; and 
- on the basis of the simplified declaration (int ended for businessmen using the labour of wage 
earners with application of the progressive rate's  scale to the revenue earned: three-level – for 
individual businessmen and fou r-level – for legal persons). 
Farms apply special tax treatment on the basis of the payment of single land tax at the rate of 
0.1 per cent to the assessed value of the land. 
The special tax treatment for legal persons-manuf acturers of agricultural products stipulates the 
special procedure of settlements with budget on the basis of licence.  Upon the calculation of the 
licence value amount of tax and payment for land use, subject to the payment into the budget, is 
reduced for 80 per cent.   WT/ACC/KAZ/57 
 Page 49 
 
 
 Question 55 
Paragraphs 96-99:  We are pleased that Kazakhstan has decided to eliminate the element of 
discrimination in its excise taxes prior to accession. 
Please confirm that there are no additional exemptions  from the excise tax, i.e., that it is applied 
to all similar goods imported from all countries in a non-discriminatory manner. 
Answer:  
The Republic of Kazakhstan confirms that the uni fication of excises rates will be fulfilled at the 
moment of Kazakhstan's entry into WTO. 
In accordance with Government Resolution No. 137  dated 28 January 2000, the excises rates have 
been established for excised goods manufactured in  the Republic of Kazakhstan and imported to the 
customs territory of the Republic of Kazakhs tan regardless of the country of origin.  
 -  Excise tax 
Question 56 Paragraph 98:  We welcome Kazakhstan's intention to eliminate excise tax discrimination for 
certain imported goods by the time of accession. Please keep the Working Party informed of 
developments in this area. 
Answer:
 
The unification of excises rates will be fulfilled at a time to the moment of entry into WTO. Change 
of excises rates does not require the adoption of the individual statute, but is approved by the 
Government Resolution on changes in Governme nt Resolution No. 137 dated 28 January 2000 "On 
Excises Rates for Excised Goods Manufactured in the Republic of Kazakhstan and Imported to the 
Customs Territory of the Republic of Kazakhstan,  Sold in the Territory of the Republic of 
Kazakhstan, and Gambling". In this connection at  the moment of Kazakhstan's accession to the WTO 
the correspondent draft resolution will be submitted to the Government.  
At present the Ministry of Finance takes preparat ory measures within the unification of excises rates 
for domestic and imported.  So, in accordance with Government Resolution No. 874 "On 
Organization of Work on the Introduction of Cont rol System for Manufacture and Circulation of 
Alcoholic Products Using Registra tion and Control Marks" of 27 August 2003 the projects selection 
competition on the introduction of Control system for manufacture and turnover of alcoholic products 
using registration and control marks" (hereinafter re ferred to as RCM) was carried out on 9 July 2004.  
At present the Ministry of Finance has developed draft Government Resolution "On Marking of 
Certain Types of Excised Goods with Registration and Control Marks".  At present such project is 
subject to the agreement.   
Introduction of RCM will allow creating the effectiv e control system for manufacture and turnover of 
alcoholic products and will provide the comple teness of excises supply into the budget of the 
Republic of Kazakhstan upon the following si multaneous unification of excises rates. WT/ACC/KAZ/57 
Page 50  
 
 - Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 57 Paragraph 100: Are these the only import proh ibitions?  Does Kazakhstan prohibit imports of 
used articles, e.g., clothing, tires?   
Answer:
 
All prohibitions of goods importation, existing in Ka zakhstan, are set forth in paragraph 100 of the 
Factual Summary.  Kazakhstan does not apply and h as never applied any prohibition on importation 
of second-hand clothes and tires.  
Question 58 
Please confirm that the non-tariff measures listed in Annex VII are on exports only. 
Answer:  
We confirm that in Annex 7 to the Factual Summary  the full list of goods is presented, in respect of 
which export prohibitions are applied. 
At the same time we emphasize that the Government  of the Republic of Kazakhstan has made the 
decision on the expediency of the prohibition abolition of export of wastes and aluminium and nickel 
scrap.  At present the correspondent draft Governme nt Resolution has been developed which adoption 
is planned in the near future.  
-  Import Licensing  
Question 59 This section of the report is a bit thin.   Paragraph 103: Please clarify whether Governme nt Resolution No. 1037 "On licensing export 
and import of goods and services in the Republic  of Kazakhstan" of 30 June 1997 provides for 
activity licensing, import licensing of goods, or both.  
Answer:
 
Government Resolution No. 1037 date d 30 June 1997 approved the list of goods, works and services, 
which export and import is subject to licensing, an d including works and services in the sphere of 
military and technical collaboration.  
Question 60 
We seek a response to Question 84 of WT/ACC/KAZ/50.  In general, what criteria are applied 
for granting licenses.  Under what circumstances would a licence not be granted for any of the products in Annex V? 
Answer:
 
For registration of licence of export and import of goods the applicant gives to the Licensor the 
following:  WT/ACC/KAZ/57 
 Page 51 
 
 
 (i)  application of due form for the licence receipt; 
(ii)  copy of sales contract (agreement) or othe r agreement of alienation between the participants 
of international contract and the original for collation; 
(iii)  agreement between the exporter and ma nufacturer or between the importer and goods 
consumer, if any mediator stands as the applicant; 
(iv)  certificate of state registration: 
 -  for legal persons - certificate of state registration; and 
 -  for natural persons - certificate of state registration as entrepreneur. 
(v)  document confirming the payment of licence tax; 
(vi)  licence of the relevant authorized state bod y for the fulfilment of separate types of activity; 
(vii)  permission of the Government of the Republic  of Kazakhstan or the relevant authorized state 
body on the separate types of goods according to Annex 2-5 hereto; and 
(viii)  list of presented documents. 
The licence is not given, if: - all required documents have not been presente d. Upon the clearance by the applicant the 
application is considered on common basis; and 
- the licence tax for licensing of export and import of goods has not been paid. 
All rules and criteria used upon the licenses issuing for import and export of goods in accordance with 
Government Resolution No. 1037 and No. 1031 are set forth in Annex VI of the Factual Summary. 
Question 61 
The response to Question 84 states that import licenses are granted on a "national treatment" 
basis.  How is that possible, since by definition  import licenses are not granted for the sale or 
distribution of domestic manufactures? 
Answer:
 
It is necessary to note that licenses of export and import are issued on the non-discriminatory basis. 
So, according to Article 3 of the Law of the Repu blic of Kazakhstan "On licensing" the issue of 
licenses of export and import of goods is fulfilled on equal bases and equal conditions for all persons 
meeting the requirements determined for this type of licence.  Article 8 of this Law stipulates that the 
foreign legal or natural persons, and also persons without citizenship receive licenses on the same 
conditions and on the same order as legal and natura l persons of the Republic of Kazakhstan, unless 
otherwise is stipulated by legislative acts of the Republic of Kazakhstan.  
Question 62 
Are all of Kazakhstan's import licensing proce dures contained in Government Regulation 1037, 
as outlined in Annex VI? 
Answer:  
Rules on licensing, set forth in Annex VI of the Factual Summary, apply to import and export of all 
goods, works and services approved by Resolutions of  the Government of th e Republic of Kazakhstan 
No. 1037 and No. 1031. WT/ACC/KAZ/57 
Page 52  
 
 Question 63 
Information in paragraphs 115 and 116 of WT /ACC/SPEC/KAZ/8 may be helpful in rounding 
out the description.  It makes it clear that in  order to obtain a licence to import alcoholic 
beverages, an enterprise much first have permis sion to produce or store alcoholic beverages.  
This is not consistent with the establishment of tr ading rights, i.e., the right to import or export 
without the need to be invested or have distribution rights. 
Answer:
 
Contents of items 115 and 116 will be indicat ed in the draft Report of Working Group. 
 It should be noted that Article 10.1 of Law of  the Republic of Kazakhstan No. 429-1 "On State 
Regulation of Production and Circulation of Ethyl Spirit and Alcoholic Prod ucts" of 16 June 1999 
provides the following in respect of import: 
- ethyl spirit can be imported by the licence for import of ethyl spirit provided that the importer 
has the licence for production of the alcoholic pr oducts for which the ethyl spirit will be used; 
and 
- alcoholic products can be imported by the licen ce for import of alcoholic products and with 
the licence for either production of alcoholic pro ducts or storage, wholesale sale of alcoholic 
products (except for beer). 
Question 64 
Please clarify whether there are requirements to obtain a marketing licence in order to be 
allowed to market products.  If yes, to wh at kind of products do such licenses apply? 
Answer:  
In accordance with Law of the Republic of K azakhstan dated 17 April 1995 "On Licensing" the 
following is subject to the licensing: 
- sale of weapon and ammunition, cryptographi c means, special technical facilities for 
conducting special operations and investigation measures, military equipment, spare parts, 
component elements and devices to them, if they are not used in other branches, and also 
special materials and equipment for their production;  
- sale of explosive and pyrotechnic subs tances and products with their use; 
- sale of products containing radioactive s ubstances in quantities exceeding the amount 
permitted for their use without necessity of application of special protection means; 
- sale of fire-prevention equipment, e quipment and fire prevention means;  
- wholesale sale of facilities and preparations of disinfection, disinsection, and also types of 
works and services connected with their use; 
- sale of X-ray equipment, devices and equipment using radioactive substances and isotopes;  
- sale of topographic and geodesic and cartographic products; 
- wholesale, retail sale of medicinal remedies;  
- wholesale and retail sale of alcoholic products (except beer); 
- sale of scrap and wastes of ferrous and non-ferrous metals to legal persons;  
- sale of plants and herbs containing drugs and psychotr opic substances; 
- sale of poisons according to the list determin ed by the Government of the Republic of 
Kazakhstan;   
- sale of pesticides  (chemical weed-killers and pest killers);  WT/ACC/KAZ/57 
 Page 53 
 
 
 - civil and official firearms and ammuniti on, military hand shooting firearms and its 
ammunition, cold weapon, civil pyrotechnical substances and products with their use, and 
also chemical weapons of self-defence; and 
- retail sale for foreign currency cash (opera tions connected with use of currency). 
It is necessary to note that the developed draf t Law of the Republic of Kazakhstan "On Amendments 
and Addenda to Legislative Acts of the Republic of Kazakhstan on Li censing" stipulates the exclusion 
of following types of activity:  
- wholesale sale of facilities and preparations of disinfection, disinsection, and also types of 
works and services connected with their use; 
- sale of topographic and geodesic and cartographic products; and 
- sale of fire-preventive equipment, equipment and facilities of fire-preventive protection. 
-  Customs valuation 
Question 65 Please confirm that all of Kazakhstan's relevant provisions on customs valuation, including the 
Interpretative notes, can be found in the three pi eces of legislation listed in paragraph 107.  If 
not, please indicate what other legislation is relevant: 
- Customs Code 
- Rules for Independent Examination of Cons istency of Customs Value, Quality, and 
Quantity of Imported Goods (Resolution No.782 of 16 July 2002) 
- Decree of the Customs Committee No. 209 "On Adoption of Rules on Completion of 
Declarations of Customs Value and Customs Value Adjustment Forms" of 15 May 2003. 
Have the Rules and the Decree been made available to the Working Party? 
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 a mann er that importers may become acquainted with 
them. 
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 a 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:
 
At present all provisions on customs valuation are se t forth in the Customs Code of the Republic of 
Kazakhstan, Rules on Filling Forms of Customs Value Declaration and Customs Value Correction 
Forms. 
Rules on carrying out of independent conformity assessment of customs goods value imported to the 
Republic of Kazakhstan, their quality and qua ntity (Government Resolution No. 782 dated WT/ACC/KAZ/57 
Page 54  
 
 16 July 2002) have become invalid upon the adoption of the Government Resolution No. 1274 "On 
acceptance of invalid Government Resolution No. 782 of 16 July 2002" dated 19 December 2003". 
Rules on forms filling of declaration of customs va lue and forms filling of customs value correction 
are available from the Secretariat through document WT/ACC/KAZ/57/Add.1. 
Concerning the right of appeal, Article 318, ite m 7 of the Customs Code of the Republic of 
Kazakhstan stipulates that "after acceptance of docum ents to the customs registration all corrections 
of customs value fulfilled by the customs authority and stated by the declarant, are considered as the 
customs valuation of goods and may be appealed  by the declarant in the determined order". 
Article 319, paragraph 1 (4) also adds that "The declarant has the right: upon the disagreement with 
the decision of the customs authority in respect of the determination of the customs value of goods to 
appeal this decision in order determined by legislative acts of the Republic of Kazakhstan 
(Presidential Decree holding the law dated 19 June 1995 No. 2340 "On order of the consideration of 
subjects appeal" is available from the Secret ariat through document WT/ACC/KAZ/57/Add.1.  
Besides, the section 15 of the Customs Code of th e Republic of Kazakhstan stipulates the provisions 
concerning the appeal of customs authorities' reso lutions, administration of complaints on decisions 
and simplified order of appeal of customs authorities' resolutions. 
In respect of transparency Article 30 of the Cu stoms Code of the Republic of Kazakhstan says: 
"1.  Informing in the sphere of customs affair is  fulfilled by means of the official publication of 
statutory legal acts of the Republic of Kazakhstan in th e sphere of the customs affair by the authorized 
body on customs affairs in periodical published editions  in the order determined by the legislation of 
the Republic of Kazakhstan. 
2.  Informing in the sphere of customs affair is  fulfilled also with use of  oral explanations and 
announcements, information stands, indicator boards,  booklets and other printed materials, and also 
video-, audio- and other technical facilities applie d for spreading of information including for public 
and free examination in following places:  
1) check-points across the customs border of the Republic of Kazakhstan; 
2) airports, railway and car stations, water ports; 
3)  on the board of vehicles, air and marine  vessels fulfilling international traffic; and 
4)  areas of customs control determined by the present Code, and in other places stipulated by 
customs authorities. 
3.     Customs authorities provide the unimpeded  access for the members of foreign-economic and 
other activity to the information about statutory lega l acts of the Republic of Kazakhstan in the sphere 
of the customs affair using information technologies  in the order determined by the authorized body 
on customs affairs". 
4.       Concerning provisions relating to warrant y policies, Article 321 of the Customs Code of the 
Republic of Kazakhstan explains that "the customs authority has the right to carry out the conditional 
goods release, if payment of customs duties and ta xes has been provided in accordance with customs 
value of goods", i.e. hindrances to the trade are not stipulated.  
Besides, in accordance with Article 339 of th e Customs Code of the Republic of Kazakhstan 
guarantee types of customs payments and taxes are provided in the form of: 
- pledge; 
- bank guarantee;  WT/ACC/KAZ/57 
 Page 55 
 
 
 - money contribution to the deposit account of customs authority; and 
- insurance agreement. 
Concerning the use of the reserve method, applicatio n of price reference books and information, being 
at the disposal of customs authorities, is permitte d. Application of reference books is approved by 
resolutions of the Government of the Republic of Kazakhstan.  At present the following are valid: 
Government Resolution No. 794 "On information re ference books used upon the application of the 
reserve method of determination of goods cust oms value" dated 8 August 2003, Government 
Resolution No. 797 "On Changes to Government  Resolution No. 788 of 9 June 2001" dated 
11 August 2003.  
Application of the reserve method may be the admi nistrative valuation of import based on information 
of customs authorities. 
By frequency of application the reserve method ta kes the 2nd place after the principal method "on the 
transaction's price with imported goods".  
Question 66 
Could Kazakhstan please submit copies of the fo llowing legislation to the Working Party for 
review:  Resolution No. 782 of 16 Ju ly 2002 and Decree No. 209 of 15 May 2003. 
Answer:  
The resolution of the Government of the Republic of Kazakhstan dated 16 July 2002 No. 782 "On the 
approval of Rules on conducting of the independent  conformity expertise of goods customs value 
imported to the Republic of Kazakhstan, their qualit y and quantity" has become invalid in accordance 
with the resolution of the Government of th e Republic of Kazakhstan dated 19 December 2003 
No. 1274 "On acceptance of invalid resolution of the Government of the Republic of Kazakhstan 
No. 782 dated 16 July 2002". 
Ordinance No. 209 of Customs Control Agency dated 15 May 2003 "On the approval of Rules on 
forms filling of the declaration of customs value an d forms filling of correction of customs value" is 
available from the Secretariat thr ough document WT/ACC/KAZ/57/Add.1. 
Question 67 
The explanation on the possible use of minimum values given in paragraph 111 (Factual 
Summary) is not sufficient.  Could Kazakhstan pl ease provide further clarification on whether 
or not minimum values are used. 
Answer:  
In accordance with Article 310, paragraph 9 of the Customs Code of the Republic of Kazakhstan upon 
the application of determination method of the cust oms value "at the transaction's price with identical 
goods" for the determination of customs value the lo west from them is used.  Example, the company 
"Sara" has imported to the Republic  of Kazakhstan TV sets of "Samsung" company, at that the value 
of previously imported TV sets is € 100 and € 1 20 correspondently, upon the application of method 
"at the transaction's price with identical goods" th e value of € 100 will be accepted as the lowest from 
two existing.  WT/ACC/KAZ/57 
Page 56  
 
 Besides, the single reference about minimum value is set forth in the subparagr aph 7 of paragraph 4 of 
Article 314 of the Customs Code of the Republic  of Kazakhstan in a similar manner with the 
subparagraph (f) of Article 7 of the Agreement on the application of Article 7 of the GATT 1994. 
Thus, in the Republic of Kazakhstan upon the determ ination of customs value the system of fixed 
minimum value is not applied. 
Question 68 Article 318, paragraph 7 of Customs Code of Re public of Kazakhstan: Is an appeal without 
penalty foreseen in accordance to Article 11 of the WTO Customs Valuation Agreement? 
Answer:
 
Paragraph 7 of Article 318 of the Customs Code of  the Republic of Kazakhstan does not stipulate any 
penalty provisions upon the fulfilment of customs value of goods by the customs authority, but 
stipulates that after acceptance of documents to th e customs registration all corrections of customs 
value, made by the customs authority and stated by the declarant, are considered as the customs value 
of goods and may be appealed by the declarant in the determined order.  
Question 69 
Article 12 WTO Customs Valuation Agreement:  Ho w are laws, regulations, judicial decisions 
and administrative rulings of general applicat ion published in conformity with Article X of 
GATT 1994? 
Answer:  
Customs authorities provide the unimpeded access for members of foreign-economic and other 
activity to the information about laws, statutory legal acts of the Republic of Kazakhstan, court 
decisions and administrative acts in the sphere of  customs value using information technologies, mass 
media and published editions, excluding informati on with confidential character on the basis of 
Article 26 of the Customs Code of  the Republic of Kazakhstan.  
The official web site www.customs.kz exists and functions in the Customs Control Committee of the 
Republic of Kazakhstan. 
On the indicated site the following information is situated:  structure and condition of the Committee 
of the customs control and customs authorities; legislation including: laws of the Republic of Kazakhstan, decrees of the President of the Republic of Kazakhstan, resolutions of the Government of 
the Republic of Kazakhstan, orders of the Co mmittee of the customs control (administrative 
decisions), directives of the Committee of the custom s control (administrative decisions), joint orders 
of the Committee of the customs control, explana tions of the Committee of the customs control, 
statistics of foreign commerce, foreign relations of  the Committee of the customs control, the history 
of the Committee of the customs control. 
Question 70 
Interpretative notes to the WTO Customs Value Agreement:  Only the Interpretative Notes to 
Article 1 and Article 15 are partially included in  the Customs Code of the Republic Kazakhstan. 
When will the Interpretative Notes be completely  included in the Customs Code of Kazakhstan?  WT/ACC/KAZ/57 
 Page 57 
 
 
 Answer:  
At present draft Law "On alterations and additi ons in the Customs Code of the Republic of 
Kazakhstan" is on the approval in the Parliament of the Republic of Kazakhstan.  After acceptance of 
this Law, the Commentary to the Customs Code of  the Republic of Kazakhstan will be issued, where 
the WTO Agreements similar to the Explanatory no tices to Article 1 and Article 15 will be included. 
-  Rules of origin Question 71 Do Kazakhstan's legal provisions granting a preliminary determination of origin specify that 
"exporter, importer, or any person with a justif iable cause" may ask for this and receive it?  
Concerning the preferential rules of origin a pplied to CIS products, are the provisions of 
Annex II reflected in domestic law and observed?   
Paragraph 116:  The right to seek a determination of origin prior to importation is contained in 
Article 2 (h) and Annex II, paragraph 3 (d) of the WTO Agreement on Rules of Origin.  If these provisions are not already in Kazakhstan's laws, we seek legislation to remedy that prior to 
Kazakhstan's accession to the WTO. 
Answer:
 
In the Republic of Kazakhstan the current rules are unified and applied either on preferential or non-
preferential basis. The comparative table is enclosed in Annex 6. 
Regarding Article 2 (h) and paragraph 3 (d) of Annex 2 of WTO Agreement on origin rules, the 
Customs Code of the Republic of Kazakhstan stipul ates the provisions, similar by implication, in 
particular: 
- In respect of request of exporter, importer or  any person, according to Article 51 the Customs 
Code of the Republic of Kazakhstan indicates th at "preliminary decisions made by customs 
authorities excluding confidential informati on, may be published and presented upon the 
written request to any person"; and 
- In respect of the decision on the determinati on of the country of goods origin, Article 47, 
paragraph 2 of the Customs Code of the Republic of Kazakhstan says that "customs 
authorities indicated in paragraph 1 of the present Article in accordance with provisions of the present Code have the right to make the preliminary decision on the application of 
methodology of the determination of country of  origin and customs value of goods.  The 
acceptance order and the form of the preliminary decision on indicated questions are 
determined by the authorized body on customs af fairs", namely in accordance with the Order 
of the Customs control agency of the Re public of Kazakhstan dated 15 May 2003 No. 210 
(available from the Secretariat through document WT/ACC/KAZ/57/Add.1). 
In this case the preliminary decision shall be cons idered as the final decision made by the customs 
authorities prior to customs registration of goods or prior to trade implementation. 
- In respect of temporary limits (not later th an 150 days), Article 48, paragraph 3 of the 
Customs Code of the Republic of Kazakhstan also stipulates that "the application is 
considered by the customs authority and the pr eliminary decision (final) is made during ten 
working days from the date of giving of other information or carrying out of expertise". WT/ACC/KAZ/57 
Page 58  
 
 - In respect of the provision that such valuati ons shall remain in force during three years, 
Article 49 of the Customs Code of the Republic  of Kazakhstan also stipulates the provision 
with similar contents specifying that "the prel iminary (final) decision of customs authorities is 
in force during three years from the moment of its acceptance"; and 
- In respect of the provision that such valuati ons shall be public on c ondition of the observance 
of provisions of the subparagraph (k), the Customs Code of the Republic of Kazakhstan 
stipulates the provision with similar contents : "preliminary decisions made by customs 
authorities excluding confidential informa tion may be published and presented upon the 
written request to any person".  
Question 72 
We take note of Kazakhstan's statement in pa ragraph 166 (Factual Summary) that it considers 
that there is no need for separate legislation to  implement Article 2(h) of the Agreement on 
Rules of Origin. Nevertheless, the Kazakh auth orities will have to ensure assessments of the 
origin. 
Is a review of any administrative action on the application of the rules of origin by judicial, 
arbitral or administrative tribunals or proce dures foreseen (Article 2(j) of Agreement on Rules 
of Origin)? 
Answer:
 
Revision of application of origin rules by legal, ar bitral or administrative bodies is not stipulated.  
In respect of the appeal right the section XV of the Customs Code of the Republic of Kazakhstan 
stipulates provisions concerning the appeal of cu stoms authorities' resolutions, administration of 
complaints on decisions and simplified order of ap peal of customs authorities' resolutions (available 
from the Secretariat through document WT/ACC/KAZ/57/Add.1). 
Question 73 
Article 157 of Customs Code of Republic of Kazakhs tan:  Article 157 refers to the classification 
code of goods and processed products under the foreign economic activity commodity 
nomenclature.  Does this nomencla ture correspond to the subheadings  and headings of the tariff 
nomenclature mentioned in Article 2a (i) of the Agreement on the Rules of Origin? 
Answer:  
Yes, it conforms.  The Republic of Kazakhstan joined the Convention on the Harmonized system of 
the description and coding of goods in accordance wi th the Law of the Republic of Kazakhstan dated 
3 February 2004 No. 525-II "On joining of the Republic of Kazakhstan to the International 
Convention on the Harmonized system of the description and coding of goods". 
Question 74 
In Paragraph 113 of this document it is stated  that the existing system of determining the 
country of origin was developed by the World Customs Organization and covered provisions of 
the Kyoto Convention.  However we are concern ed by the statement found in paragraph 115 
that the certificate of origin should contain a written declaration that the good conformed with 
the corresponding criteria of origin. Such info rmation is usually not contained in a non-
preferential certificate of origin and is also not foreseen in the Kyoto Convention.  WT/ACC/KAZ/57 
 Page 59 
 
 
 Answer:  
Certificate of goods origin is the document unambiguously certifying the country of origin and issued 
by the authorized body of state-exporter. 
In accordance with Article 41 of the Customs Code of the Republic of Kazakhstan the terms of the 
presentation of the certificate of goods origin upon the goods import are: 
- tariff preferences are given to the country of these goods origin in accordance with 
international agreements, the member of  which the Republic of Kazakhstan is;  
- the customs authority has the well-founded grounds to assume that the goods derive from 
countries which goods import is regulated by measures of non-tariff regulation; or 
- this is stipulated by international agreemen ts members of which the Republic of Kazakhstan 
is. 
Thus, presentation of certificates of goods origin  upon the non-preferential procedure is not 
obligatory, excluding the cases when the customs authority has well-founded assumptions that the 
goods derive from countries which goods import is regul ated by measures of non-tariff regulation or, 
if it is stipulated by international agreements, wh ich member the Republic of Kazakhstan is.  At that 
the mark about the criteria of goods origin is not obligatory.  
Question 75 
We have doubts about the WTO-compliance of the provision mentioned in paragraph 114, that 
the origin could go to parts of a country, if there  is a justifiable reason.  We would like to know 
the context of such a determination of origin  and the justifiable reasons as we see great 
implications for the application of ot her parts of the Marrakesh Agreement." 
Answer:  
In case if determination of the country of goods orig in, stipulated in Article 33 of the Customs Code 
of the Republic of Kazakhstan, does not conform to the determination stipulated in the Convention of 
Kyoto, the Committee of the Customs control of the Ministry of Finance will work out the 
correspondent draft Law of the Republic of Kazakhstan on the alterations in para graph 2 of Article 33 
concerning the exclusion of the region and the country.  
- Other customs formalities 
Question 76 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 co ntracts.  Kazakhstan should eliminate this 
measure as soon as possible. 
Answer:
 
The bargain passport is registered by customs aut horities for each international contract in sum more 
than US$ 10,000.  The bargain passport is not used in any measure for trade balancing and, therefore, 
is not the hindrance for the implementation of fo reign-economic activity or "additional burden for 
commercial relations".  Each bargain passport has its  own certain number, contains the brief extract 
from the contract. WT/ACC/KAZ/57 
Page 60  
 
 It is necessary to note that the registration requireme nt of the bargain passport in accordance with the 
draft Law of the Republic of Kazakhstan "On the curr ency regulation and currency control" will be in 
force even after 2007.  Either the procedure of lic ensing, or the registration will be abolished in 
respect of the bargains with passports, i.e. there will be no doubling and additional burden. 
-  Preshipment inspection 
Question 77 
Please explain in some detail what sort of service is being provided by the "independent 
examination system."   
Is this service provided by customs officials, or by a private firm?   Is there a fee charged, and if so, how much? 
How are goods selected for application of this system?  Is there a list of "risky" goods that 
require "price audit" by an "independent" entity? 
What are the avenues of appeal for traders whose declared value is questioned or overturned by 
this system? 
We have concerns that this "independent exam ination system" is a disguised method of 
avoiding use of transaction value in customs valuation and applying an administered price that 
would take its place, certified by the "independent examination system". 
We will want much more information about how it operates in practice, who provides the 
service, their relationship to the Kazakh Cust oms Service, and the application of WTO 
provisions in their work. 
Answer:
 
The independent expertise, fulfilled by "I.C.S. In spection and Control Services Kazakhstan" Ltd., is 
not the provisional shipment goods inspection. This service is rendered by the private company which is engaged in rendering of the assistance to custom s authorities for carrying out of the customs value 
control of imported goods (in accordance with Article  436 of the Customs Code).  This is the paid 
service which is paid at the rate of 30 per cent fro m pre-exacting customs payments and taxes. At the 
same time, the conclusions of the independent e xpert have the recommendation character. The final 
decision in respect of the customs value is made by  customs authorities.  In case of the confirmation 
of the customs value by shipping documents which list is determined in Article 316 of the Customs 
Code, the results of the independent expertise ar e rejected.  In case of arising of doubts in the 
reliability of declared customs valu e, the customs authority takes into consideration the preliminary 
information of the independent expert about goods value, in which accordance the funds of the 
payments provision of customs payments and goods ar e deposited, the goods is put in free circulation. 
Goods selection is fulfilled only in respect of imported goods put in free circulation, at that the list of 
"risk" goods is absent. 
After the presentation of the Conclusion about results  of the independent expertise by the independent 
expert, the customs authority makes the final deci sion on the value of imported goods. In case of the 
rejection of the independent expertise results, th e previously deposited funds are returned to the 
declarant.  In case of disagreement with the decisi on of the customs authority, the member of foreign-
economic activity has the right to appeal such deci sion in the order determined by the legislation 
(available from the Secretariat through document WT/ACC/KAZ/57/Add.1).   WT/ACC/KAZ/57 
 Page 61 
 
 
 B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
Question 78 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 Ka zakhstan's non MFN regime on export duties with 
the Customs Union. 
We note that the non MFN treatment of nonferrous scrap in its export to the EU.  This practice 
should stop immediately and must be eliminated totally prior to accession. 
Finally, we do not understand why Kazakhstan ex empts only exports to the countries of the 
customs union from export duties.  If Kazakhstan has FTA relations with other CIS, why aren't 
export duties eliminated with these trading partners as well? 
Answer:
 
Export duties are determined by Kazakhstan in respect of the restricted list of products with a fiscal 
view. Export duties are applied on the basis of the most favoured nation regime (MFN), excluding the goods exported to countries of the Customs union. Export duties are applied upon the export to CIS countries, excluding export to countries of the Customs union with which the agreements on the free 
trade with specified withdrawals have been concluded. 
The Republic of Kazakhstan confirms that from th e moment of entry into WTO will apply export 
duties on the non-discriminatory basis with respect to all WTO countries, excluding export of goods 
to countries of European-Asiatic Economic Community.  
Question 79 
Paragraph 133:  We urge Kazakhstan to consid er phasing out all export duties according to a 
set timetable.  
We also note that ferrous and non-ferrous scrap is  subject not only to export duties but also to 
VAT for export, as stated in paragraph 93.  Co uld further information on this VAT regime be 
provided? 
Answer:
 
In accordance with Article 222 of the Customs Co de the turnover of goods sale for export, excluding 
export of scrap of ferrous and non -ferrous metals, is imposed upon zer o rate.  As for the export of 
scrap of ferrous and non-ferrous metals, from 1 July  2001 the export of said goods has been subjected 
to VAT in generally established order, from 1 Ja nuary 2004 – the export of said goods is exempted 
from VAT. WT/ACC/KAZ/57 
Page 62  
 
 At present alteration and additions inserted to the Customs Code, are under consideration in the 
Parliament of the Republic of Kazakhstan, in wh ich accordance the export of scrap of ferrous and 
non-ferrous metals will be subjected to VAT imposition at zero rate. 
Question 80 
Paragraph 134:  Please provide more details on th e new tax regime for oil operations in order to 
allow for an assessment of its WTO compliance. 
Answer:
 
Beginning from 2004, the new taxation procedure of oil operation has been introduced: the rental tax 
to the exported oil has been imposed, the specific o il rates have been established, the mechanism of 
computation of the excess profit tax has been improve d, as well as the taxation of the activity, fulfilled 
within the contract on the products division, has been improved. 
Suggested rental tax to the exported crude oil is used to provide the stable income into the state's 
budget, simplicity of tax administration, problem solving of the transfer pricing. 
 Hydrocarbons royalty rates are established upon slid ing scale as the percent from the level of total 
extraction during each year of the activity. 
With the purpose to withdraw excess profits of the subsurface users, the improved mechanism of 
computation of excess profit tax has been imposed, that greatly simplifies the computation order of this tax, and its obligation arises immediately after excess profits rise. 
With the purpose to improve the mechanism of products division between the Republic and 
contracting organization, the threshold values of products division between the state and contracting 
organization have been established. They are three triggers. 
Triggers determine the part of the Republic of K azakhstan in profitable oil upon the maximum from 
the percent values that in perspective will allow bringing the part of Kazakhstan in the products 
division till 80 per cent.  The new taxation proce dure of oil operations concerns only contracts 
concluded from 2004.  
According to Article 304-3 of the Customs code of the Republic of Kazakhstan the rental tax to the 
exported crude oil is established at the following rates: 
Market price at the level of exchange price Rate 
US$ 19 per barrel 1% 
US$ 20 per barrel  4%  
US$ 21 per barrel  7%  
US$ 22 per barrel  10%  
US$ 23 per barrel  12%   
US$ 24 per barrel  14%  
US$ 25 per barrel  16%  
US$ 26 per barrel  17%  
US$ 27 per barrel  19%  
US$ 28 per barrel  21%  
US$ 29 per barrel  22%  
US$ 30 per barrel  23%  
US$ 31 per barrel  25%  
US$ 32—33 per barrel  26%  
US$ 34—35 per barrel  28%   WT/ACC/KAZ/57 
 Page 63 
 
 
 US$ 36 per barrel  29%  
US$ 37 per barrel  30%  
US$ 38—39 per barrel  31%  
US$ 40 per barrel and more 33%  
 
Question 81 
Paragraph 135 - Can the Government of th e Republic of Kazakhstan provide further 
information about how the world price of crude oil is determined? Does it for example take 
account of the various grades of crude available in the global market? 
Answer:  
In accordance with Article 5.5 of Presidentia l Decree No. 2828 "On Subsurface and Subsurface 
Utilization" effective since 27 January 1996, the subsurface user possessing mineral raw materials on 
the right of property (economic conduct or operative management), has the right to dispose of it and 
in their respect to make any bargains not prohibited by the legislation. 
Taking into consideration the fact that at present mo st of enterprises of oil and gas complex have been 
privatized and are under the management of fore ign investors, the questions connected with 
distribution and sale's price of its resources, are solv ed independently by them.  Thus, the Ministry of 
energy and mineral resources of the Republic of Kazakhstan does not regulate the level of sale oil 
prices for principal sale to any customers.  
Besides, the level of sale oil prices is determined by the demand, i.e. the higher demand, the higher oil 
price, and is formed according to world oil quotations. 
In case of underestimation of oil prices upon its sale,  the subsurface user (seller) is applied force of 
Law on transfer prices in which accordance the tax is  levied from the variation between the factual 
market price and underestimated price of sale at  the moment of the transaction's settlement.  
The basic directions of the Kazakh oil sale at present are: - Ports of Black sea; 
- Ports of Baltic sea; 
- European countries by oil-pipeline "Druzhba";  
- CIS countries (Ukraine); 
- China; and 
- Iran. 
At that the sale of Kazakh oil is fulfilled by oil- producing companies either on the oilfield, or on the 
Kazakhstan border, or in marine terminals.  Also the type of transport infl uences the grade of quality 
preservation of extracted oil.  So, upon the oil tr ansportation by the oil-pipeline Atyrau-Samara and 
farther by the oil-pipelines system of AK "Transo il" to the ports of Black, Baltic seas and European 
countries, as well as to CIS countries, the oil quotati on used upon its sale is Urals class.  During the 
oil transportation according to the system KTK, where the Bank of oil quality has been introduced, 
the used quotation is the CPC Blend class.  Using th e rail transport the oil quality will be preserved.  
Question 82 
Can the Government of the Republic of Kazakhsta n please provide information on the activities 
of the Mangystau Industrial Company in Aktau?  WT/ACC/KAZ/57 
Page 64  
 
 Answer:
 
"Mangistau industrial company" Ltd. (MIC) is situat ed in Aktau city, the 9th microdistrict, building 
23A. The director is I. Kh. Vassilyeva. 
The certificate of the registration of legal person is 5654 – 1943 – Ltd. dated 17 July 2003, RNN 
430600065323. 
The founder (member) of the company is the State institution – he Committee of state property and 
privatization of the Ministry of Finance of the Republic of Kazakhstan.  The state share in the 
authorized capital is 100 per cent. 
OJSC "Mangistau industrial company" has been est ablished by the resolution of the Department of 
state property and privatization of the Ministry  of Finance of the Republic of Kazakhstan on 
6 February 1998 No. 83 with charter capital 34,816 tenge. 
At present the principal type of activity is the farming of premises and property. 
At present the work on documents preparation for receipt of licence for the activity on the 
maintenance of boilers, vessels and pipelines opera ting under pressure, organization of measures for 
the implementation of the activity on building materials sale, is carried out.  
-  Export restrictions 
We note that export bans and quantitative restric tions on commercial products are hard to justify 
under WTO provisions.  We urge Kazakhstan to revi ew its position and find WT O-consistent methods 
to regulate this trade. 
We will seek a commitment that from the date of a ccession, Kazakhstan's export restrictions will be in 
conformity with WTO provisions, including Article XI of the GATT. 
Answer:  
Kazakhstan will not apply the export restrictions contradicting the provisions of GATT of 1994. 
Question 83 
Paragraph 138:  Please report on any recent development concerning Kazakhstan's plans to 
eliminate WTO-inconsistent export restrictions.  We welcome Kazakhstan's plan to replace the 
export ban on mazut and diesel with export du ties, which should be subject to a phase-out 
according to a set timetable. 
Answer:  
With the purposes to create the essential resources of  combustive-lubricating materials for needs of 
the country's economy the Government of the Repub lic of Kazakhstan annually makes the decisions 
on the seasonal prohibition of export of fuel and diesel oil from the territory of the Republic of 
Kazakhstan.  
During carrying out of seasonal agricultural works th e necessity of agricultural producers in diesel oil 
increases in 7-8 times.  This brings to the combus tive-lubricating materials prices increase and has the 
effect on the course of agricultural works.  WT/ACC/KAZ/57 
 Page 65 
 
 
 The total necessity in diesel oil of agricultura l producers in 2003 constitute d 1,098.3 thousand tonnes, 
where the necessity to the carrying out of spring-  and autumn- field works constituted 855.7 thousand 
tonnes or 77.9 per cent. 
This practice is directed to the prevention or weaken ing of the critical shortage of foodstuffs or other 
goods in the republic, as it is stipulated in  paragraph 2 of Article XI of GATT. 
At the same time, at present the Government of the Republic of Kazakhstan considers the problem of 
the replacement of the prohibition practice to export of  fuel and diesel oil to the practice of application 
of export duties at the moment of entry of the Republic of Kazakhstan into WTO. 
-  Export subsidies 
Question 84 
Please confirm that it is Kazakhstan's conten tion that it has no export subsidies. 
In WT/ACC/KAZ/50, Kazakhstan has provided fu rther information regarding the decreasing 
coefficient on tariffs for railway transportation.  
According to the information provided in Annexes 6 and 7, it appears that the tariff reductions 
provided to producers of sulphuric acid and iron  ore products are only available for export 
transportation.  Specifically, it states that, "in or der to increase transportation volumes, support 
local producers, stimulate increase of production vo lumes the tariffs on export transportation of 
sulphuric acid [and iron ore products] in tanks of  producers in all communications are reduced  
by 25 per cent."   
To the extent that these incentives are contingent  upon export, they could constitute prohibited 
export subsidies under Article 3.1 of the WTO Agreement on Subsidies and Countervailing 
Measures (Subsidies Agreement).  
Answer:  
Application of reducing coefficients to tariffs in exportation for transportati on of sulphuric acid and 
iron ore production by railway transport has not been directed to the support of domestic manufacturers. 
The criterion for the establishment of the decreasing coefficient during the transportation of sulphuric 
acid was the ecological safety of sideline products of the industrial manufacture. The manufacture of 
sulphuric acid is the sideline manufacture upon the obtaining of metal zinc.  
The principal criterion for the establishment of the decreasing coefficient during the transportation of 
iron ore production was the volume increase of expor t transportations of iron ore production by 
railway transport.  Thus, the volume of e xported iron ore production in 2003 increased to 
10.5 per cent in comparison with 2002 (from 9.9 million tons up to 11 million tons).  
Question 85 
Could you please explain whether the tariff reductions on transportation provided to producers 
sulphuric acid and iron ore products are contin gent upon export?  If so, please explain how the 
GOK plans to eliminate or bring this program into compliance with WTO provisions. WT/ACC/KAZ/57 
Page 66  
 
 Please explain whether any of the other products eligible for decreasing coefficients of railway 
tariffs (e.g., coal, black coal, complex ore, seconda ry material resources, metal roll, crude oil, 
and energy) receive benefits contingent upon export. 
Answer:
 
Reforms in the sphere of railway transport carried  out by Kazakhstan at present provide the guarantee 
of free access of all subjects of transport market to receiving of services of railway transport, 
development of competition in the sphere of th e vehicular activity and rendering of services. 
In February 2004 the Restructure program of railw ay transport of the Republic of Kazakhstan was 
approved for 2004-2006 providing the separation of co mpetitive section of railway transport from 
naturally monopolistic services of mail line.  Thus, the equal right of user of mail railway line is 
provided for all carriers.  
From 20 July 2004 the tariffs for services of mail ra ilway line approved by the Order of the Chairman 
of Agency on Natural Monopolies Regulation a nd Competition Protection in the Republic of 
Kazakhstan (ANMR) dated 25 May 2004 No. 242-OD, are valid.  These tariffs are temporary – for 
the period till the acceptance of new tariff methodology.  
In August 2004 the Rules on establishment and abo lition of reducing coefficients to tariffs for 
transportation of goods by railway transport subject to the state regulation, approved by the Order of 
the Chairman of ANMR dated 30 December 1999 No. 24-OD, became invalid. 
In this connection previously made ANMR de cisions on establishment of temporary reducing 
coefficients to tariffs for transportation of g oods (sulphuric acid and iron ore production) by the 
railway transport have become invalid.  
The Rules on establishment and abolition of temporar y reducing coefficients to tariffs (prices, dues 
rates) for the services of mail railway line have b een approved by the Order of the Chairman of 
ANMR dated 8 September 2004 No. 375-OD. 
Economic effectiveness of the establishment of tempor ary decreasing coefficient is determined by the 
volume increase of rendered services, received incomes of the operator of main railway line and the 
consumer, returns growth into the state budget.  
Question 86 
In addition, could you please also explain the meaning of the term "producers in all 
communications"?    
Answer:  
Phrase 'producers in all communications' (actually, cons ignors in all destinations in this context) 
means that the decreasing coeffi cient for the transportation of goods in question applies to all 
consignors transporting this type of goods in any d estination: national, export and import destination. 
Question 87 
In response to the request from the Working Pa rty for a proper subsidy notification for all 
subsidies granted according to Article 25 of the Subsidies Agreement (see Question 146 of 
document WT/ACC/KAZ/50), Kazakhstan provided in formation on Establishing of Decreasing 
Coefficients of Railway Tariffs on Transportati on of Different Types of Goods for the years  WT/ACC/KAZ/57 
 Page 67 
 
 
 2002 and 2003.  However, it appears that Kazakhstan may maintain other subsidies, which may 
be notifiable under Article 25 of the Subsides Agreement.   
Could you please explain whether the above stated program is the only specific subsidy, as 
defined by Articles 1 and 2 of the Subsidies Ag reement, administered wi thin the territory of 
Kazakhstan?  If there are additional programs admi nistered at the Federal or sub-federal level 
which meet the definition of a specific subsidy, please provide the information required under 
Article 25.  
Answer:  
On this stage the work on the preparation of th e additional information required in accordance with 
Article 25 of WTO Agreement on Subsidies and Compensation Measures, is carried out. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS - Industrial policy, including subsidies Question 88 The response to Question 4 of WT/ACC/KAZ/50 stated that "in 2004, the Republic of 
Kazakhstan introduced preferential treatment fo r corporate income tax levied upon industries 
investing into the petrochemical sector, ... [and] ... special tax treatment for companies 
operating in special economic zones (in the so-called Information Technology Parks), and 
engaged primarily in scientific research and development of information technologies." 
Please describe in more detail the tax preferences provided and cite the law that authorizes this 
treatment. 
Answer:
 
The preferential tax regime for petrochemical en terprises is a governmental measure to support and 
encourage creation and development of new non-mi neral sectors of Kazakhstan's economy, including 
the petrochemical sector. 
The preferential tax regime for petrochemical indus try provides that petrochemical enterprises have 
the right to reduce the amount of corporate income ta x by 100 per cent for five years since the date of 
commissioning of their production units, provided that  such enterprises meet th e following criteria:  
they were created from 2004 to 2007; proceeds from sales of oil and gas products make 90 per cent of their aggregate annual income; and the amount of i nvestments in such an en terprise exceeds 5 million 
Monthly Calculated Indices (MCI). 
The companies operating the territory of special  economic zones have the right to reduce the 
corporate income tax by 50 per cent and be exem pted from the land tax, property tax, and VAT. 
The preferential tax regime for petrochemical enterprises 
 
(Article 119-1 of the Tax Code): "1.  To be eligible for the provisions of this Article a petrochemical enterprise must 
simultaneously meet the following criteria: 
(а)  it was registered in the period from 1 January 2004 to 31 December 2007; WT/ACC/KAZ/57 
Page 68  
 
 (b)  its production and processing units (with comp lete technological cycle) were commissioned 
by the state acceptance boards within the period st ated in subparagraph (1) of this paragraph; 
(c)  the proceeds from sales of its own products made by processing of oil and/or gas extracted in 
the Republic of Kazakhstan, by the types of operations defined by the Government of the 
Republic of Kazakhstan, shall make no less than  90 per cent of the aggregate annual income;  
(d)  the minimal amount of investments in the pr oduction units (stipulated in subparagraph (2) of 
this paragraph) shall make no less than 5 m illion of Monthly Calculated Indices defined by 
the law on the national budget for the correspondent year.  
2.  This Article cannot be applie d to the following organizations: 
(a) users of the subsurface resources; 
(b) organizations producing goods subject to th e excise tax (spirit, alcoholic products, beer, 
tobacco goods, sturgeon and salmon caviar, petrol, diesel fuel); and 
(c) organizations under preferential tax regimes. 
3.  The organizations defined in paragraph 1 of this Article shall compute the taxes in accordance 
with the procedure established by this Code, taking into account the specific provisions of paragraph 4 
of this article. 
4.  When defining the amount of corporate income tax to be paid to the budget, the amount of 
corporate income tax computed shall be redu ced by 100 per cent in accordance with Article 125 
herein. 
Reduction of the tax amount stipulated herein also applies to the computation of the prepayment 
instalments of the corporate income tax defined in Article 126 of this Code. 
5.  If a petrochemical enterprise fails to meet th e requirements stipulated in paragraph 1 of this 
article, its proceeds shall be subject to taxa tion in accordance with the general procedure. 
6.  The procedure stipulated in paragraph 4 of this Article shall be a pplied to petrochemical 
enterprises (meeting the requirements of paragraph 1 of this article) for five years since the date when 
the state acceptance boards commissioned the production units. 
7.  The taxation period, procedures and terms of submission of the tax report on taxes and other 
compulsory payments to the budget shall be  defined in accordance with this Code." 
The preferential tax regime in the special economic zone (SEZ)
 
(Article 140-1 and 140-2 of the Tax Code): Article 140-1 "1. Until otherwise stipulated by this Code, to be  an organization operating in the territory of the 
special economic zone a legal entity must simultaneously meet the following criteria: 
a)  be registered in the tax bodies in the territory of a special economic zone; 
b) have no structural units beyond the territory of special economic zones; c)  over 90 per cent of the aggregate annual in come shall be made of the proceeds from the 
following types of operations in the territory of the special economic zone, meeting the SEZ 
mission:  design, development, introducti on and pilot-production (modelling) software, 
databases and hardware; and/or creation of ne w informational technologies based on artificial  WT/ACC/KAZ/57 
 Page 69 
 
 
 immune and neural systems; and/or research and development in crea tion and implementation 
of IT projects. 
The Government of the Republic of Kazakhstan de fines list of specific operations and services in 
subparagraph (3) of this paragraph. 
2.  To qualify the proceeds as the proceeds from the operations defined in subparagraph (3) of 
this Article the company needs the confirmation from the executive body in the te rritory of the special 
economic zone; the confirmation shall be issued in form and in accordance with the procedure 
established by the authorized body on administrati on of this industry, upon coordination with the 
authorized governmental body." 
Article 140-2 
"1.  The organizations operating in the territory of special economic zones shall compute the taxes 
in accordance with the procedure established by th is Code, taking into account the specific provisions 
of paragraphs 2 and 4 of this Article. 
2.  When defining the amount of corporate income tax to be paid to the budget, the amount of 
corporate income tax computed shall be reduced by  50 per cent in accordance with Article 125 herein. 
Reduction of the tax amount stipulated herein also applies to the computation of the prepayment 
instalments of the corporate income tax defined in Article 126 of this Code. 
3.  The corporate income tax and prepayment in stalments shall be paid in accordance with the 
procedures and in terms defined in Article 127 of this Code. 
4.  The following shall be applied to the tax obj ect situated in the territory of special economic 
zones and used for operations defi ned in subparagraph (3) of paragr aph 1 of Article 140-1 of this 
Code: 
a)  0 (zero) coefficient to the land tax rate; and 
b)  0 (zero) rate to the annual average cost of tax objects when computing the property tax. 
5.  The proceeds from sales of services defi ned in subparagraph (3 ) of paragraph 1 of 
Article 140-1 of this Code shall be exempted from the value added tax." 
Question 89 Even though the Law "On Investments" has be en repealed, are there any residual contracts 
outstanding where preferences are still being provided? 
Answer:
 
In accordance with the Law No. 266-III "On Foreign I nvestments" of 27 December 1994 (lost effect), 
Law No. 75-I "On State Support of Direct Investment s" of 28 February 1997 (lost effect), and Law 
No. 373 "On Investments" of 8 January 2003, 435 c ontracts have been made on tax privileges and 
preferences (of which 255 are effective today) in  the sphere of state support of investments. 
Article 23 of the Law "On Investments" stipulates that the privileges granted by the contracts made 
with the authorized governmental body on investments before the date when this Law came into force 
shall be effective until the expiration of the term defined in such contracts. WT/ACC/KAZ/57 
Page 70  
 
 Question 90 
Paragraph 149 of Kazakhstan's Factual Summary  states that the granting of discount 
coefficients is not contingent upon export an d therefore could not be considered a prohibited 
export subsidy.  However, according to the in formation provided in Annexes 6 and 7, the tariff 
reductions provided to producers of sulphuric acid and iron ore products appear to be available 
only for export transportation.  Specifically, it states that, "In order to increase transportation 
volumes, support local producers, stimulate increa se of production volumes the tariffs on export 
transportation of sulphuric acid [and iron o re products] in tanks of  producers in all 
communications are reduced  by 25 per cent."  To the extent that these incentives are contingent 
upon export, they could constitute a prohibited export subsidy under Article 3.1 of the WTO 
Agreement on Subsidies and Countervailin g Measures (Subsidies Agreement).  
Could you please explain whether the tariff reductions on transportation provided to producers 
sulphuric acid and iron ore products are contin gent upon export?  If so, please explain how the 
GOK plans to eliminate or bring this program into compliance with WTO provisions. 
Answer:
 
In accordance with the Program on Railway Transport Restructuring for the period 2004-2006 
adopted by the Resolution No. 145 of 6 February 2004 the organizational and financial separation of 
related infrastructure and other functions of the national company "Kazakhstan Temir Zholy" is being 
currently carried out. 
According to Article 4 of the Law No. 272 of 9 July 1998 "On Natural Monopolies" the services of 
the main railroad network are classified as natural monopolies.  Thus, charges applied by the national 
company "Kazakhstan Temir Zholy" for the use of th e main railway infrastructure by other carriers 
and users remain in the sphere of natural monopolies.  In this regard, the tariff rates for services of the 
main railroad network were firstly established by Order of the Chairman of the Agency of Kazakhstan 
on Regulation of Natural Monopo lies and Protection of Competition  No. 242-OD of 25 May 2004 
and came into force on 20 July 2004. 
Since introducing these tariff rat es, charges for services provided by carriers and companies operating 
in the railway transport sector are established  in a competitive market environment.   
Rules for Introduction and Discontinuation of Decre asing Coefficients on Tariffs on Regulated Rail 
Freight" (approved by Order of the Chairman of the Agency of Kazakhstan on Regulation of Natural 
Monopolies, Protection of Competition and Support of Small Business No. 24-OD of 30 December 1999) were abolished by Order of the Chairman of the Agency of Kazakhstan on 
Regulation of Natural Monopolies and Protection of Competition  No. 337-OD of 5 August 2004. 
Therefore, all decisions of the Agency on establishi ng of decreasing coefficients for railway tariffs for 
transportation of some goods by rail (including sulphu rous acid and iron ore products) early made are 
failed. 
In accordance with Article 14-1 of the Law "On Na tural Monopolies" the state regulation of natural 
monopolies also includes establishing of temporary decr easing coefficients.  In this regard, Order of 
the Chairman of the Agency of Kazakhstan on Regulation of Natural Monopolies No. 375-OD of 8 September 2004 approved the Rules for Introduction  and Discontinuation of Temporary Decreasing 
Coefficients on Tariffs (Prices, Rates) for the Services of Main Railroad Network. 
A temporary decreasing coefficient can be set accord ing to the estimation of economical effect and 
expediency of such a measure for the state, main  railroad network operator and consumer. Established  WT/ACC/KAZ/57 
 Page 71 
 
 
 decreasing coefficient for transportation of defined go ods apply to all consignor s of this kind of goods 
in all communications (including  importers, exporters and republican). 
A temporary decreasing coefficient could be set only under the following conditions: 1. the declared goods turnover exceeds (keeps the same as) the factual goods turnover in the 
similar period of the previous year; 
2. there is an opportunity to use the idle or  low-intensive parts of the main line railway; 
3. the sideline products of the industrial productio n are environmentally hazardous.  In this case 
a temporary decreasing coefficient may be set only provided that the criterion in subparagraph (1) is met; 
4. equal tariff conditions for the access to the main line railway services; and 
5. social importance of passengers transportation. 
To ensure water supply to the southern regions of Kazakhstan during the vegetation period of 2004 
under Resolution No. 799 of 29 July 2004 and Rules for Introduction and Discontinuation of Temporary Decreasing Coefficients on Tariffs (Prices, Rates) for Services of the Main Railroad Network  No. 375-OD of 8 September 2004, Kazakhsta n set temporary decreasing coefficients 0.5 for 
tariffs for services of the main railroad network fo r transportation of coal and black oil for export 
through Lugovoye station, the coal and black oil being exported as compensation for the electric power supplied from the Kyrgyz Republic during th e vegetation period of 2004 (Order of Chairman 
of the Agency of Kazakhstan on Regulation of Natural Monopolies No. 434-OD of 1 November 2004). This measure will be valid until 31 December 2004. 
[Kazakhstan confirms that from the date of ac cession Kazakhstan will apply its internal subsidy 
policies affecting foreign trade in industrial goods in  conformity with the Agreement on Subsidies and 
Countervailing Measures.] 
Question 91 
Paragraph 150 of the Factual Summary states that the tax exemptions granted under Law 
No. 75-I "On State Support to Direct Investments"  of 28 February 1997 were abolished by Law 
No. 373-II "On Investments" of 8 January 2003.  
Could the Government of Kazakhstan please provide the Working Party a copy of Law 
No. 373-II "On Investments:" of 8 January 2 003?  Could you please also confirm that 
Kazakhstan's Law on Investme nts complies with Members' obligations under the Subsidies 
Agreement? 
Please provide the Working Party a copy of P residential Decree No. 1815 of 16 July 1994, 
referred to in paragraph 152 of the Factual Summary. 
Answer:
 
Kazakhstan confirms that the Law "On Investment s" does not contradict Article 3 of the WTO 
Agreement on Subsidies and Countervailing Measures. 
The English texts of the requested Laws are available from the Secretariat through document 
WT/ACC/KAZ/57/Add.1. WT/ACC/KAZ/57 
Page 72  
 
 Question 92 
We welcome the information on industrial subsid ies provided in various annexes to the Factual 
Summary.  Nevertheless, we encourage Kaza khstan to make one comprehensive subsidy 
notification for all subsidies granted according to Article 25 of the Agreement on Subsidies and 
Countervailing Measures. 
Answer:
 
Kazakhstan has provided members with intermediate information on subsidies during the accession 
discussions.  Kazakhstan will provide a draft notif ication covering all subsidy programs under the 
WTO Agreement on Subsidies and Countervailing Measures immediately upon accession. 
Question 93 
Paragraph 148:  Can the Government of the Re public of Kazakhstan clarify if the practice of 
discount co-efficients for the transport of various products is still in effect?  The document states that the measure was "introduced only temp orarily as it had proved to be economically 
inefficient", but does not clearly indicate whether the measures are still in effect.  
Answer:
 
The legal basis for decreasing coeffi cients on the railway tariffs for transportation of various products, 
including sulfuric acid and iron ore products in 2002-2003 was the Rules for Introduction and Discontinuation of Decreasing Coefficients on Tari ffs on Regulated Rail Freight" (approved by Order 
of the Chairman of the Agency of Kazakhstan on Regulation of Natural Monopolies, Protection of 
Competition and Support of Small Business No. 24-OD of 30 December 1999). 
In accordance with the Program on Railway Transport Restructuring for the period 2004-2006 
adopted by the Resolution No. 145 of 6 February 2004 the organizational and financial separation of 
related infrastructure and other functions of the national company "Kazakhstan Temir Zholy" is being 
currently carried out. 
Monopolies" the services of the main railroad network are classified as natural monopolies.  Thus, 
charges applied by the national company "Kazakhstan Temir Zholy" for the use of the main railway 
infrastructure by other carriers and users remain in the sphere of na tural monopolies. In this regard, 
the tariff rates for services of the main railroad network were firstly established by Order of the 
Chairman of the Agency of Kazakhstan on Regul ation of Natural Monopolies and Protection of 
Competition  No. 242-OD of 25 May 2004 and came into force on 20 July 2004. 
Since introducing these tariff rat es, charges for services provided by carriers and companies operating 
in the railway transport sector are established  in a competitive market environment.   
Rules for Introduction and Discontinuation of Decre asing Coefficients on Tariffs on Regulated Rail 
Freight" (approved by Order of the Chairman of the Agency of Kazakhstan on Regulation of Natural 
Monopolies, Protection of Competition and Support of Small Business No. 24-OD of 30 September 1999) were abolishe d by Order of the Chairman of the Agency of Kazakhstan on 
Regulation of Natural Monopolies and Protection of  Competition  No. 337-OD of 5 August 2004.  
Therefore, all decisions of the Agency on establishi ng of decreasing coefficients for railway tariffs for 
transportation of some goods by rail (including sulphu rous acid and iron ore products) early made are 
failed.  WT/ACC/KAZ/57 
 Page 73 
 
 
 In accordance with Article 14-1 of the Law "On Na tural Monopolies" the state regulation of natural 
monopolies also includes establishing of temporary decr easing coefficients. In this regard, Order of 
the Chairman of the Agency of Kazakhstan on Regulation of Natural Monopolies No. 375-OD of 8 September 2004 approved the Rules for Introduction  and Discontinuation of Temporary Decreasing 
Coefficients on Tariffs (Prices, Rates) for the Services of Main Railroad Network. 
A temporary decreasing coefficient can be set accord ing to the estimation of economical effect and 
expediency of such a measure for the state, main  railroad network operator and consumer. Established 
decreasing coefficient for transportation of defined go ods apply to all consignor s of this kind of goods 
in all communications (including  importers, exporters and republican) . 
A temporary decreasing coefficient could be set only under the following conditions: 
1. the declared goods turnover exceeds (keeps the same as) the factual goods turnover in the 
similar period of the previous year; 
2. there is an opportunity to use the idle or  low-intensive parts of the main line railway; 
3. the sideline products of the industrial producti on are environmentally hazardous. In this case a 
temporary decreasing coefficient may be set only provided that the criterion in 
subparagraph (1) is met; 
4. equal tariff conditions for the access to the main line railway services; and 
5. social importance of passengers transportation. 
To ensure water supply to the southern regions of Kazakhstan during the vegetation period of 2004 
under Resolution No. 799 of 29 July 2004 and Rules for Introduction and Discontinuation of Temporary Decreasing Coefficients on Tariffs (Prices, Rates) for Services of the Main Railroad 
Network  No. 375-OD of 8 September 2004, Kazakhsta n set temporary decreasing coefficients 0.5 for 
tariffs for services of the main railroad network fo r transportation of coal and black oil for export 
through Lugovoye station, the coal and black oil being exported as compensation for the electric power supplied from the Kyrgyz Republic during th e vegetation period of 2004 (Order of Chairman 
of the Agency of Kazakhstan on Regulation of Natural Monopolies No. 434-OD of 
1 November 2004).  This measure w ill be valid until 31 December 2004. 
[Kazakhstan confirms that from the date of ac cession Kazakhstan will apply its internal subsidy 
policies affecting foreign trade in industrial goods in  conformity with the Agreement on Subsidies and 
Countervailing Measures.] 
-  Technical barriers to trade 
Question 94 
We note the combined enquiry point for TBT and SPS notified in WT/ACC/KAZ/52 and the 
official publications that supplement its activities.   
Please confirm that all standards and technica l regulations within the meaning of the WTO 
definition will be provided for review and comment prior to enactment though these 
publications. 
Answer:
 
The Enquiry Point was created to provide informa tion to the WTO Members on the existing as well as 
currently developing drafts of legal acts pertai ning to the technical regulations and standards, 
including sanitary and phytosanitary measures (Ar ticle 10 of the Law "On Technical Regulation"), 
available. WT/ACC/KAZ/57 
Page 74  
 
 Question 95 
While we applaud Kazakhstan's efforts to brin g its standards and technical regulation system 
into line with WTO requirements through the provisions of the draft law on Technical 
Regulations, we also note that little has actu ally yet been done to address the overhang of 
requirements that arguably may not be  consistent with WTO requirements. 
Please provide a description of how Kazakhstan inte nds to proceed to implement the new law.  
Will mandatory requirement in areas such as telecommunications also be covered by its 
provisions, e.g., the transparency and due pr ocess requirements for establishing a technical 
regulation? 
Answer:
 
At present, Kazakhstan is developing a Program on the Development of legal acts in the area of 
technical regulation (technical orders) and on the Revision of existing legislation in Kazakhstan.  
The main criterion of the development of new and re vision of existing legislation is the provision of 
safety for the life and health of people and environment.  The main principles stipulated in subparagraphs (4), (5), (7) of pa ragraph 2 of Article 4 of the Law of the Republic of Kazakhstan "On 
Technical Regulation", are transparency, the equa lity of requirements for the national and imported 
products, and application of international standards as the base in the process of their development. 
To implement the Law "On Technical Regulation" in  the area of communications, the development of 
regulatory legal acts on technical regulation is planned. (e.g. "Electromagnetic compatibility"). 
Communications administration of the Republic of Kaza khstan makes the first steps in this direction. 
Currently, the budget program is developed, it is  aimed to analyze the existing framework of 
regulatory technical documentation as well as to deve lop regulatory legal acts on technical regulation 
and other regulatory-technical documentation. 
Research and work on implementation of quality ma nagement systems and environmental protection 
is regularly conducted.  This will result in th e development of recommendations and methodical 
guidelines on introduction of such systems in enterprises, communications services providers, in 
accordance with 9,000 and 14,000 series internati onal standards taking into account local production 
conditions. 
The communications sector will follow the main prin ciples of reforming stipulated in the Law "On 
Technical Regulation".  But for the creation of a transparent structure of legal and regulatory 
documents, harmonized voluntary standards, as well  as for the assurance of higher quality of works 
(services), it is advisable to create a separate sta ndardization system for the communications sector.  
Kazakhstan plans to introduce changes to the Law "On Technical Regulation" pertaining to the 
exclusion of communications sector from this la w, and based on these corrections to make 
correspondent changes to the Law of the Re public of Kazakhstan "On Communications". 
Question 96 
Document WT/ACC/SPEC/KAZ/8/Rev.1 said "During th e next few years, it is planned to divide 
existing standards into manda tory technical regulations and voluntary standards, and to 
proceed with harmonization of national technica l regulations and standards with international 
technical regulations and standards."  WT/ACC/KAZ/57 
 Page 75 
 
 
 This implicitly establishes a transitional period  after Kazakhstan's accession.  We oppose such a 
transitional arrangement and seek Kazakhstan's stro ng efforts to deal with the problem prior to 
accession. 
We welcome any additional information that can be provided on the new legislation and on how 
Kazakhstan is setting up its TBT regime, includ ing additional information on the scope of 
publication for prior comment, the operations of the enquiry point in terms of outreach, and its 
intra-governmental and external (with interested parties) coordination plans. 
Answer:  
The analysis of the legal and regulatory framework shows that initially Kazakhstan needs to develop 
10 laws in the area of technical regulation (for exam ple, "On Toys Safety", "On Potable Water", "On 
Industrial Safety", "On Electromagnetic Compatibilit y", etc), about 100 governmental resolutions, and 
to make amendments in 30 existing laws ("On Fire Safety", "On Grain", "On Medicine", "On 
Radiation Safety", "On Transport in  the Republic of Kazakhstan", etc). 
Besides, Kazakhstan needs to revise about 10,0 00 normative documents to harmonize them with 
international standards. 
By 2004, Kazakhstan has developed 627 state standa rds, 14 per cent of which are harmonized with 
international standards.  By December, 2004, the nu mber of developed standards has exceeded 1,000, 
of which 25 per cent are harmonized. Please, find the list of harmonized state standards attached in Annex 7. 
Question 97 
What provision has been made to accept test  results from reputable bodies not located in 
Kazakhstan?  
Answer:
 
The Law "On Technical Regulation" provides for the recognition of the following documents in 
accordance with international agreements: 
- conformity certificates issued in foreign count ries, products testing certificates, compliance 
marks (Article 33, paragraph 1); and 
- accreditation certificates or equivalent documen ts issued by foreign accreditation bodies 
(Article 36, paragraph 4). 
In the absence of international agreements, the testing results issued by an authority beyond of 
Kazakhstan can be recognized onl y through accreditation of this body in the national accreditation 
system of the Republic of Kazakhstan in accordance with Article 6.1 of the WTO Agreement on 
Technical Barriers in Trade. 
Question 98 
We look forward to reviewing the new legislation and regulations. 
Answer:  
On 9 November 2004, President of the Republic of  Kazakhstan signed the Law of the Republic of 
Kazakhstan "On Technical Regulation", which w ill take force in six months after signing. WT/ACC/KAZ/57 
Page 76  
 
 The Law of the Republic of Kazakhstan "On Techni cal Regulation" of 9 November 2004 provides the 
establishments of compulsory requirements at the le vel of regulatory legal acts (technical regulations) 
adopted by the Government or Parliament. 
Regulatory legal acts on technical regulation will contain compulsory requirements concerning only 
the protection of human life and health, plants, animals, and environment, as well as prevention of 
actions misleading consumers, whereas the standards requirements will be in a voluntary manner. 
Provisions of the law aim to meet the followi ng principles based on provisions of the WTO 
Agreement on TBT. 
-  Non-discrimination and national treatment
 
The main principles of technical regulation stipulat e that the requirements to products of national 
origin and imported products as well to the procedures for their conformity assessment shall be equal 
(subparagraph 4 of paragraph 2 of Article 4) as we ll as there must be a single system and uniform 
rules on conformity recognition (subparagr aph 9 of paragraph 2 of Article 4). 
The requirements provided in the regulatory legal acts on technical regulation (technical regulations) 
are set and applied equally regardless of the co untry and/or place of origin of the products 
(paragraph 3 of Article 17). 
-  Transparency and availability  
Official information on pending and adopted regulator y legal acts pertaining to technical regulations, 
state, national, international and regional standa rds and classifiers of technical-economic information 
and recommendations on standardizing as well as the mentioned documents shall be available to the 
users (paragraph 2 of Article 15). 
Legal acts in the area of technical regulations, standards and information on their development, 
approval and publication shall also be available for users (subparagraph 7 of pa ragraph 2 of Article 4). 
The Enquiry Point (paragraph 1 of Article 10) is cr eated for interaction with the Secretariat of the 
World Trade Organization, WTO Members, and inte rnational organizations to provide parties and 
foreign countries involved with copies of docum ents and information on technical regulations, 
standards, and procedures upon their request. 
The Law provides for publication of notifications in official media and public information system on 
the development of draft changes in  and/or addenda to or eliminati on of a technical regulation within 
one month from the beginning of such development, ch anges in and/or addenda to or elimination of a 
technical regulation.  Also the Law provides for public discussion of the draft and its further development based on received comments, submissi on of received comments on the draft technical 
regulation to the parties involved (paragraph 4 of Article 18). 
The draft legal act on technical regulation shall be available for the parties involved from the moment 
of publication of the notification on its development (paragraph 6 of Article 19). 
The term for public discussion of the draft legislati on on technical regulation shall be no less than 
sixty calendar days (from the day of the notification publication on its development till the day of the 
notification publication on completion of the public discussion) (paragraph 8 of Article 19). 
-   Application of interna tional and regional standards
  WT/ACC/KAZ/57 
 Page 77 
 
 
 The Law provides for application of international a nd regional standards as the basis for the legal acts 
on technical regulations (s ubparagraph 5 of paragraph 2 of Article 4 and paragr aph 4 of Article 17), as 
well as for the full or partial development of sta ndards, except for the cases wh en such standards are 
inefficient or unsuitable for the security concerns (paragraph 4 of Article 21). 
International and regional standards and normative do cuments on standardization shall be applied in 
Kazakhstan equally and to the same extent as th e state standards and norma tive documents of the 
Republic of Kazakhstan on standardi zation (paragraph 6 of Article 24). 
If the requirements set by the technical regulations  fail to meet the requirements of corresponding 
international standards or if there are no corresponde nt international standards, or the requirements set 
by such technical regulations may impact the goods export-import conditions  in Kazakhstan, the 
governmental body developing the draft of the techni cal regulation shall notify on the list of products 
to be excluded from the mentioned technical regulation, on its purpose and the necessity of development, as well as provide the parties and fo reign countries involved w ith detailed information 
on the technical regulation under development or with a copy of such upon their request, specifying the provisions that fail to meet the requ irements of international standards. 
The Law also provides for participation in interna tional and regional organizations on standardization 
and accreditation, in mutual recognition of c onformity assessment results (subparagraph 7 of 
Article 7). 
 -  Elimination of technical barriers to trade
 
The requirements set by the technical regulations sh all not create barriers for entrepreneurial activities 
to the extent more than for the security  concerns (paragraph 5 of Article 17). 
Technical regulations set the minimal necessary requirements considering the level of damaging risk 
to ensure the safety of products and processes (paragraph 1 of Article 18). 
In case of non-compliance of the legal act on techni cal regulation with the international agreements 
ratified by the Republic of Kazakhstan, the authorized  body shall start the procedure of elimination or 
amendment into such a technical regulation (paragraph 6 of Article 17). 
The state standards shall be applied voluntarily to th e equal extent regardless of the place of origin of 
the goods or service (paragraph 6 of Article 21). 
Question 99 
Document WT/ACC/KAZ/54:  We welcome the steps taken by Kazakhstan to significantly 
reduce the length of the originally requested transitional period for compliance with the 
provisions of the Agreement on Technical Barrie rs to Trade.  Could Kazakhstan confirm that 
all measures foreseen in docume nt WT/ACC/KAZ/54 indeed refer to the year 2004 only (as the 
title of the document  re fers to the years 2004-2006)? 
Answer:  
The measures listed in document WT/ACC/KAZ /54 refer to the period of 2004-2006. 
On 9 November 2004, the President of the Republic of Kazakhstan signed the Law of the Republic of 
Kazakhstan "On Technical Regulation", which will come  into force in six months from the moment of 
signing.  WT/ACC/KAZ/57 
Page 78  
 
 Currently, Kazakhstan is developing the Draft Pr ogram on the development of necessary technical 
laws and governmental reso lutions. According to this Program, th ere will be developed ten new laws  
(for example, "On Toys Safety", "On Potable Wate r", "On Industrial Safety", "On Electromagnetic 
Compatibility", etc) will be developed and chang es will be made in 30 existing laws ("On Fire 
Safety", "On Grain", "On Medicine", "On Radiati on Safety", "On Transport in the Republic of 
Kazakhstan", etc). 
Question 100 
Paragraph 159:  Our economic operators, in particular exporting pharmaceuticals to 
Kazakhstan, are experiencing problems re garding the functioning of the mandatory 
certification system.  The procedure of conformity assessment, which has to be completed by 
Kazakhstan's accredited bodies, is applied for ev ery consignment, even in cases of multiple 
imports of identical products and irrespectively  of the possession of internationally recognized 
certificates.  The procedure of conformity asse ssment takes on average 21 days and goods which 
are subject of mandatory certification have to be placed in customs warehouses for temporary 
storage during this period.  Such goods may not pass customs clearance without first obtaining 
a certificate of conformity issued by Kazakhstan's certification institution.  This process is time 
consuming and a costly measure which seriously di storts trade and is not compatible with the 
TBT Agreement.  
Answer:
 
Internationally recognized cer tificates are not existent.  
Mutual recognition of the conformity certificates can be accepted on the basis of signing agreements 
(multilateral or bilateral) or in the case when su ch certificate was issued by a certification body 
accredited in the national certification system confirming the conformity of the mentioned imported product. This is the framework for the mutual recognition of the conformity certificates in all 
countries, which conforms to the provisions  of Article 6.1 of the Agreement on TBT. 
At present Kazakhstan has a multilateral agreem ent on the mutual recognition of conformity 
certificates only with the CIS countries. 
So far Kazakhstan has no bilateral and multilatera l agreements on recognition of the conformity 
certificates for the imported and exported products with other foreign countries, but if any country 
initiates such an agreement Kazakhstan is willing to make these agreements. 
Kazakhstan has the single procedure of conform ity confirmation for the national and imported 
products (ST RK No. 3.4-2003 "State Certificati on System of the Republic of Kazakhstan. The 
Procedure for Product Conformity Confirmation. Ge neral Requirements"), which provides for several 
modules of conformity confirmation, including the analysis of the production conditions for the goods sold by more than one consignment. If the certif ication body accredited in the national certification 
system of the Republic of Kazakhstan makes al l the mentioned procedures for the conformity 
confirmation, the goods imported to  Kazakhstan will have the conformity certificate recognized in the 
Republic of Kazakhstan. In this case there will be  no need to certify each consignment of goods. 
Question 101 
Could Kazakhstan provide further clarificatio n of the mandatory certification procedure 
applicable to imported goods.   WT/ACC/KAZ/57 
 Page 79 
 
 
 Answer:  
The products (goods) imported to the Republic of Ka zakhstan and subject to compulsory certification 
shall be customs cleared in the body that makes the customs arrangement. 
Besides documents necessary for the customs control, the certificate of conformity of the Republic of 
Kazakhstan is the basis for customs treatment of the imported product. 
The certification body certifies the confor mity of the imported products as follows: 
- by recognizing the certificate if Kazakhstan has multilateral or bilateral agreements on mutual 
recognition of the conformity certification resu lts, or if the certificate was issued by the 
certification body accredited in the National Certification System of the Republic of Kazakhstan; and 
- by certifying the consignment of goods. 
The Republic of Kazakhstan has the same rules and procedures for the certification of both imported 
and local goods. 
Question 102 
Is the right granted to producers to confirm the conformity of products by declaration 
(according the amendments of Law No. 431-1 "O n Certification") applicable for imported 
goods as well? If not, how can this kind of discrimina tion be justified in view of Article III of the 
GATT 1994? 
Answer:
 
The Law of the Republic of Kazakhstan "On Certifica tion" allows the importer himself to confirm the 
conformity of products (goods), subject to compulsory certification according to the safety 
requirements, by declaring the conformity if th e imported products are included into the "List of 
Products Permitted to be confirme d by the Conformity Declaration" approved by the Governmental 
Resolution No. 77 of 22 January 2003. 
This list includes:  (i) communication means (el ectric telephones, coin telephones, fax machines, 
trunk and cellular communication transmitting equi pment, radio and telegraph communication 
transmitting equipment); (ii) medical items (first-a id kits); (iii) consumer goods contacting with 
human skin (rubber masks for diving, swimmi ng caps, rubber hot-water bags, oilcloth); 
(iv) equipment for potentially hazardous productions  (steel wire ropes); (v) construction materials 
(acoustic, heat insulation materials and double-glazed  window panes);  (vi) packing material (metal 
caps for glass containers); (vii) light industry produc ts (cloths, footwear); (viii) woodworking industry 
products (matches, furniture). 
Question 103 Does Kazakhstan require additional certification for products which have been certified as safe 
for human use and consumption by internatio nally recognized bodies?  Could Kazakhstan 
provide information concerning international co nformity assessment bodies whose certificates 
are recognized by Kazakhstan.  WT/ACC/KAZ/57 
Page 80  
 
 Answer:
 
Certificates of conformity issued in other count ries can be mutually recognized under bilateral or 
multilateral international agreemen ts through accreditation of the e xporting countries' certification 
bodies in the national certification systems of the importing countries. This meets the provisions of paragraph 6.1 of the Agreement on TBT. 
At present Kazakhstan only has the agreement on the mutual recognition of conformity certificates 
with the CIS countries. 
Kazakhstan is open for the dialogue with countri es willing to make an agreement on mutual 
recognition of certificates. 
Kazakhstan has the single procedure of confor mity certification for the national and foreign 
organizations that may want to be accredited as the certification bodies. 
-  Sanitary and phytosanitary measures 
Question 104 Paragraph 168:  Please detail the registratio n process for new, potentially hazardous 
substances.   
Answer:
 
Potentially hazardous substances are such substan ces that can have a harmful effect on the human 
health or health of future generations in certain conditions and in certain concentrations.  The sanitary 
rules and hygienic standards regulate the applica tion and use of potentially hazardous substances. 
Article 16 of the law of the Republic of Kazak hstan "On Sanitary-Epidemiological Safety of 
Population" provides that the new substances or substances introduced for the first time and which 
have never been used before as well as materials and medicines from them are subject to the state 
registration if they are potentially hazardous for people. 
The state registration of the mentioned substances and certain kinds of products potentially hazardous 
for people shall be based on the following: 
- expert assessment of how hazardous the substa nces and certain products are for people and 
environment; 
- assessment of conformity of for the content of substances and individual components of 
products to the sanitary rules and hygienic standards; and 
- development of special measures, including the conditions for utilization and liquidation of 
substances and certain kinds of products, to  prevent their harmful effect on people and 
environment. 
The state registration of substances and certain kinds of products potentially hazardous for people 
shall be made in accordance with the procedure established by the authorized body on sanitary and 
epidemiological safety of population. 
Pesticides agents registered in the Register of Po tentially Hazardous Substances shall not be registered 
in Kazakhstan. The pesticides included into the "Lis t of Pesticides Prohibited from Application on the 
Territory of the Republic of Kazakhstan" appr oved by Governmental Resolution No. 439 dated 
15 April 1996 shall not be registered too.  WT/ACC/KAZ/57 
 Page 81 
 
 
 The "List of Pesticides (Chemical Insecticides) Allowed for Application in the Territory of the 
Republic of Kazakhstan for 2003-2012" shall include o fficially registered pesticides after registration 
and production tests made by research and other or ganizations of Kazakhstan and if supported with 
the tests documents approved by executives of oblast territorial administrations of the Ministry of Agriculture in accordance with "Rules on Making Registration Tests and State Registration of 
Pesticides (Chemical Insecticides) in the Republic of Kazakhstan" a pproved by Ordinance of Ministry 
of Agriculture No. 432 of 26 December 2002. 
The registration tests of pesticides are necessary to develop and test the regulations on their 
application (use) ensuring the efficiency and safet y for the health of people and environment. 
Production tests are the final phase of pesticides te sting and are necessary to check and confirm the 
stability of biological and economical efficiency of recommended registered rates of application of the 
substance in production.  The period of regi stration and production tests is 2-3 years. 
Applications for registration tests of pesticides with especially toxic agents as well as prohibited 
pesticides shall be refused. 
Question 105 
Paragraph 170:  Kazakhstan indicates that its veterinary service would inform the relevant 
countries of all newly introduced or lifted re strictions (bans) through their embassies in 
Kazakhstan.  Is this the only method of communi cation the veterinary service has?  Are newly 
introduced restriction open for comment first? 
Answer:
 
Kazakhstan has been cooperating with the countries  in the framework of the membership in the 
International Epizootic Bureau (IEB) since 1993. 
In accordance with Article 1.1.3.2 of the Intern ational Veterinary Code, Kazakhstan shares any 
information with the IEB Members necessary to excl ude the spread of animal and birds diseases, as 
well as to efficiently prevent such diseases. 
Also, in accordance with the above-mentioned Article of the Code, when the internationally available 
data is insufficient, the importing country may dir ectly request either the exporting country or the IEB 
for additional information. 
In this view, the veterinary service of Kazakhstan, first of all, notifies the IEB Central Office on the 
veterinary-sanitary status of its territory as to the List A diseases and veterinary measures taken. 
Kazakhstan introduces restrictions based on inform ation about especially dangerous diseases revealed 
in any country including the information recei ved from IEB and other countries, not violating 
Article 5.7 of the SPS Agreement. Kazakhstan publishes info rmation on the temporary restrictions on 
the website of the Ministry of Agriculture (www.mi nagri.kz) and also notifies the restricted country 
through its veterinary services. 
Moreover, in July 2004 by the joint Order of Minist ers of Industry and Trade, Health, and Agriculture 
the Single Enquiry Point on TBT/SPS was created. The Enquiry Point's functions include notification of the WTO Members on currently applied SPS measures and measures in the process of 
development. 
Notifications on temporary restrictions as on all other SPS measures will be sent in accordance with 
the standard of Kazakhstan "Rules and Procedures fo r Preparation of Notifications on Pending (Being WT/ACC/KAZ/57 
Page 82  
 
 Adopted) Technical Regulations and Standards", wh ich was developed by the guidelines of the WTO 
Secretariat (document G/SPS/7). 
Question 106 
Paragraph 171:  Please provide a detailed list by  HS Code and product description, which are 
subject to veterinary control.  Kazakhstan not es that products may be denied permits with 
written justification.  What, if any, appeal pro cess exists if a product is denied?  What is the 
process for applying for an import permit? 
Answer:
 
Article 20 of the Law "On Veterinary" provides that the cargo subject to the state veterinary control 
transported across the national border of Kazakhsta n must undergo the state veterinary control. 
Importation into the territory of K azakhstan and transit of cargo subject to the state veterinary control 
from other countries is allowed if it is safe in epiz ootic terms and is compliant with the veterinary 
(veterinary-sanitary) rules established by the authorized  state body in the area of veterinary.  The state 
veterinary control shall be confirmed with a veterinary certificate or veterinary evidence. 
Importation, export and transit of goods subject to th e state veterinary control shall be conducted in 
accordance with the evaluation of epizootic  situation in the corresponding area. 
Prior to concluding an agreement on export, import a nd transit of goods subject to the state veterinary 
control, the person or legal entity has the right to obtain information on the epizootic situation in the 
country of export, import and transit, on veterinary (veterinary-sanitary) rules preventing importation and export of animal diseases pathogens from the au thorized governmental bod y on veterinary and its 
territorial subdivisions.  Confidential information sh all not be divulged without the consent in writing 
of the owner of the goods subject to the state veterinary control. 
Article 4 of "Rules On the Conduct of State Vete rinary Control of Goods Subject to the State 
Veterinary Control and Crossing the National Bord er of the Republic of Kazakhstan" approved by 
Governmental Resolution No. 407 of 28 April 2003 provides that the permission for importation of 
goods subject to the control shall be issued upon appl ication of the freight owner in writing to oblast 
(city) territorial subdivision of the authorized body.  He should specify the name and characteristics of 
the goods, the country of origin, importation purpose, type of transport, route, the place of crossing 
the national border, including CIS countries and Kazakhstan, places for storage, quarantining, 
processing, sale period and other information in the original with compulsory translation into the 
national or Russian language. 
Oblast (city) territorial subdivision of the authorized body shall consider (within 15 days) the 
principle possibility (conditions of processing, sale, and storage) of importation of the goods into the 
territory of its region.  If the resolution is positive,  the body provides the freight owner with veterinary 
(veterinary-sanitary) requirements to  the specific type of goods and requests the authorized body in 
writing to issue the importation permission. 
The authorized body shall either issue the importa tion permission or send justified refuse in writing 
within five working days. 
A veterinary inspector of the frontier station check s the veterinary certificate, the permission from the 
authorized body, the freight name, weight, packag ing, number of submitted documents, transportation 
conditions, and gives the veterinary certificate inst ead of the foreign veterinary certificate.  Line 
"Special Notes" of the veterinary certificate shall have the number and date of the authorized body's  WT/ACC/KAZ/57 
 Page 83 
 
 
 permission and the procedure for the use of the freig ht under control (free sales, long-term storage or 
processing). At the same time the veterinary inspect or of the frontier station reports on passing the 
freight under control and its final destination to th e corresponding territorial subdivision of the state 
veterinary control on frontier and transport. 
In accordance with paragraph 2 of Article 17 of the Law "On Veterinary", persons and legal entities 
can appeal to the higher state veterinary contro l bodies and/or to the court to claim veterinary 
inspectors' actions or inaction (dereliction).  
Please, find attached in Annex 8 the list of FEA PN  nomenclature codes and descriptions of the goods 
subject to the veterinary control. 
Question 107 
Paragraph 177:  We would like to reiterate th at a seven-year transitional period for 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 remain unconvinced that this is in anyway necessary, but look forwar d to the new legislation and action plan that 
should help in addressing our concerns. 
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" 
Kazakhstan should apply the Agreement  on SPS from the date of accession. 
Answer:
 
On 8 April 2004, the Law of the Republic of Kazakhs tan No. 543-II "On Quality and Security of Food 
Products" was adopted.  It regulates relations in the area of quality and security provision for the food 
products to ensure health of population and environment during the process of food products 
development and turnover on the territory of the Repub lic of Kazakhstan (text of the Law is available 
from the Secretariat through document WT/ACC/KAZ/57/Add.1).  
The Law provides for responsibility for production or  importation of food products, materials and 
goods to Kazakhstan without the state registration. 
The Law has general requirements to the exported and imported products, to food products, materials 
and goods quality and safety assurance, to pack aging, marking, production control, assessment 
procedures and confirmation of their conformity  to the requirements of standards and other 
documents. 
The Law distributes the requirements to the f ood products, materials a nd goods quality and safety 
assurance stipulated in Articles 11, 12, 13, 14, 15 , 16, 17, 18 and 19 among the specific governmental 
bodies with control and supervision functions. 
In accordance with Article 9 of this Law, the authorised governmental bodies on sanitary-
epidemiological safety of population, veterinary, ph ytosanitary supervision, and the authorized body 
on standardization, metrology, and certification sha ll make the state control and supervision of the 
food products quality and safety within their competency defined by the laws of the Republic of 
Kazakhstan. WT/ACC/KAZ/57 
Page 84  
 
 In accordance with Article 5 of this Law the governmental bodies with control and supervision 
functions shall provide persons and legal entities with information on the following within their 
competency: 
- food products, materials and goods quality and safety; 
- regulatory documents setting forth requirements  to the food products, materials and goods 
quality and safety; 
- state registration of food products, materials and goods; 
- confirmation of conformity of food products, materials and goods to the requirements of 
regulatory documents; and 
- measures to prevent selling low-quality and da ngerous food products, materials and goods. 
On the whole, the Law provides the norms re gulating the general principles on ensuring the 
transparency and equivalence of the sanitary me asures pertaining both to the imported and exported 
products. 
For harmonization of the existing system with the requirements of the WTO Agreement on the 
Application of  SPS measures, Kazakhstan has de veloped the Plan of Action of the Republic of 
Kazakhstan to Bring the Existing Sanitary-Epide miological Welfare, Veterinary and Plants 
Quarantine System in Conformity with the Provisi ons of the WTO Agreement on the Application of  
SPS Measures in 2004-2006. 
 This Plan of Action provides for some changes in the legal and standards-regulatory framework, 
harmonization of the existing standards with the in ternational standards, upgrading the material and 
technical basis of veterinary and quarantine la boratories, as well as training specialists in SPS 
measures. 
However, the scheduled measures canno t completely solve the technical problems, such as the need to 
upgrade the material and technical basis of  veterinary and quarantine laboratories. 
The need to harmonize the existing system with the requirements of the Agreement on SPS measures 
requires attraction of technical assistance to Kaza khstan in the form of e quipment and training of 
human resources (Kazakhstan is willing to pr ovide the list of necessary equipment). 
In spite of all preventive veterinary measures take n by the schedule, the epizootic situation with 
certain animal diseases, especia lly the diseases common for animals and human, is still complicated. 
As of 1 November 2004, there were registered 48 cases of the rabies, 2 cases of charbon, and 10 cases of emphysematous carbuncle of cattle in Kazakhstan.  The brucellosis and tuberculosis prevalence 
among humans and animals tends to grow. 
The main reason of the existing situation with the above diseases is the absence of efficient epizootic 
monitoring, insufficient sensitivity of the diagnostics methods employed in veterinary laboratories. In 
accordance with the requirements of the International Epizootic Bureau, in international trading with 
animals and animal products the countries shall widely use the following molecular-genetic and 
immunochemical diagnostics methods for the impera tive and alternative t ests: polymerase chain 
reaction, immune-enzyme analysis, and spectrophotomet ric methods.  At that, it should be noted that 
many especially dangerous animal diseases are fera l nidal infections, i.e. the pathogen either 
circulates in the animal organism or stays in the soil or other environmental objects for a long time (up to 100 years).  To break the epizootic chain of  infection and efficiently reveal the pathogens in 
animal organisms and environmental objects, the ve terinary laboratories need modern equipment and 
diagnostic tools. Unfortunately, at present the material  and technical basis of veterinary laboratories 
does not allow them making mass researches on th e animal infections epizootic monitoring.   WT/ACC/KAZ/57 
 Page 85 
 
 
 In 2004, the work on the project of the World Bank "Enhancement of the Agricultural Products 
Competitiveness" Project has begun. One of the project components covers the quality management and agricultural product safety assurance.  The project  is supposed to be implemented in five years 
(2005-2009). 
This project considers creating the National Referent  Laboratories on veterinary and plants protection 
for the adaptation of the national quality manage ment and agricultural products safety assurance 
system to the international requirements of th e International Epizootic Bureau, International 
Convention for Plants Protection, a nd Codex Alimentarius Commission. 
During 2005, the project design of the laboratory is planned. Construction of the laboratory building is 
planned for 2006. In 2007, the labor atory will be provided with the equipment for referent tests (gas 
chromatography, liquid chromatography, mass-s pectrometry, atomic absorptiometry, etc). 
Provision of the veterinary laboratories and plants  protection laboratories at oblast and rayon level 
with modern highly sensitive equi pment according to the requirements of the international standards 
and regulations is also planned. 
Within the framework of the project, advanced tr aining of the specialists on modern methods of 
laboratory diagnostics in international research centres is considered (plants protection:  herbology, 
phytopathology; veterinary: toxicology, microbiology and virology). 
Starting from 2004, identification (labelling and passpor t system) of agricultural animals is held in 
Kazakhstan. A legal framework has been created for this issue. Identification of agricultural animals 
in the regions of Kazakhstan has been mostly completed. 
Identification of agricultural animals allowed to  improve the monitoring of cattle movement, 
application of veterinary, preventive and diagnostic measures, and epizootic monitoring of contagious 
animal diseases. 
At the same time, the absence of a single enquiry point does not allow to fully use the possibilities of 
animals identification to bring the epizootic m onitoring to the new leve l in accordance with the 
requirements of the Agreement on SPS measures.  
Kazakhstan needs technical assistance for creation of a single database to keep account of the 
livestock population, organization of its regional bran ches, training of veterinary inspectors in animal 
diseases monitoring and diagnostics. 
The Ministry of Health developed the draft law "On Amendments and Addenda to the Law of the 
Republic of Kazakhstan "On Sanitary Epidemiological  Welfare of Population" in accordance with the 
resolution of IMC.  
The draft law considers the following as the a dditional objectives and principles of ensuring the 
sanitary epidemiological welfare of population:  (i) application of sanitary measures that do not discriminate countries with identical or similar c onditions, including the territorial differences, and 
which are not hidden limitations on in ternational trade; (ii) uniform requirements to products made in 
the Republic of Kazakhstan and imported products if they keep the proper level of sanitary 
epidemiological welfare of population in the Republic of Kazakhstan. 
The state sanitary epidemiological regulati on will undergo further development (revision), 
examination, harmonization of documents of the state sanitary epidemiological regulation system, 
also taking into account the requirements of in ternational standards, approval, publishing and 
distribution of copies thereof. WT/ACC/KAZ/57 
Page 86  
 
 Harmonization of the national sanitary measures will take into account the geographic and ecological 
conditions and the efficiency of the state sanitary  epidemiological supervision in the Republic of 
Kazakhstan. The sanitary regulations and standards w ill be based on the evaluation of the risk to the 
life and health of people, taking into account the risk evaluation methods developed by the national 
and international organizations. 
Moreover, the Government plans making amendments  and addenda to the laws on plants quarantine 
and veterinary so as to complete harmoni ze them with the Agreement on SPS measures. 
Kazakhstan requests four year transitional period fro m the moment of accession to the WTO to bring 
the national legislation in the area of sanitary a nd phytosanitary measures in full compliance with the 
provision of WTO agreement on SPS measures.  
Question 108 Document WT/ACC/KAZ/53:  We welcome the steps taken by Kazakhstan to significantly 
reduce the length of the originally requested transitional period for compliance with the 
provisions of the Agreement on Sanitary and Phytosanitary Measures and take note of 
Kazakhstan's intention to complete the process of achieving compliance with the SPS 
Agreement by the end of 2006.  Does Kazakhstan consider this timeframe to be a transitional 
period or to precede or coincide with accession to the WTO? 
Answer:
 
For the harmonization of the existing system with  the requirements of the WTO Agreement on the 
Application of  SPS measures, Kazakhstan has de veloped the Plan of Action of the Republic of 
Kazakhstan to Bring the Existing Sanitary-Epide miological Welfare, Veterinary and Plants 
Quarantine System in Conformity with the Provisi ons of the WTO Agreement on the Application of  
SPS Measures in 2004-2006. 
This Plan of Action provides for some changes in the legal and standa rds-regulatory framework, 
harmonization of the existing standards with the in ternational standards, upgrading the material and 
technical basis of veterinary and quarantine la boratories, as well as training specialists in SPS 
measures. 
However, the scheduled measures cannot completely so lve the technical problems such as the need to 
upgrade the material and technical basis of  veterinary and quarantine laboratories. 
The need to harmonize the existing system with the requirements of the Agreement on SPS measures 
requires involvement of technical assistance to Kaza khstan in the form of equipment and training of 
human resources (Kazakhstan is willing to pr ovide the list of necessary equipment). 
-  Trade-related investment measures Question 109 The response to Question 28 of document WT/ACC/KAZ/50 states that the Governmental 
Resolution of the Republic of Kazakhstan "On Approval of Rules of purchasing of goods, services and works for oil operations" requires th e use of domestically produced products and 
services provided that they meet the standard s and other requirements, as a result of the 
bidding process.  WT/ACC/KAZ/57 
 Page 87 
 
 
 This would appear to be inconsistent with the WTO Agreement on Trade related Investment 
Measures (TRIMs).  We would appreciate knowi ng what Kazakhstan will do to bring this 
measure into conformity with its WTO obligations. 
We appreciate the explanation provided in th e Factual Summary (paragraph 179) regarding 
Kazakhstan's Law "Concerning the Subsurface and it s Utilisation" of 27 January 1996 and the 
Law "On Oil" of 28 June 1995.  However, this le gislation, which requires the use of domestically 
produced products and services, still appears to constitute prohibited subsidies under 
Article 3.1 of the WTO Subsidies Agreement.  Therefore, we would again ask Kazakhstan to 
provide information regarding their plans to e liminate or bring this program into compliance 
with WTO provisions.   
Answer:  
The use of Kazakh goods and services in implementation of investment projects in subsurface 
utilization is not a privilege and is granted no tax abatements. 
Earlier (in 1999), with the purpose to protect na tional manufacturers the legislation was changed 
requiring purchasing goods and services of national or igin if they meet the standards and other 
requirements. 
This provision is of no principle concern to the mineral resource industry (subsurface users), because 
this concerns the mechan ical engineering, food and other pro cessing industries' products as well as 
design institutions and service providers, including transport, communication and other companies. 
The absence of governmental regulation in this sector  resulted in the fact that all investors having 
contracts on exploration and extraction of mineral resources in Kazakhstan used to prefer complete 
autonomy in purchasing equipment, services and goods.  They used to use services and products of 
their (foreign) manufacturers and affiliated co mpanies, which significantly infringed upon the 
interests of Kazakhstan, impairing the utilization of the national economy's industries even when the 
necessary goods and services were manufactured and could be purchased in Kazakhstan. Support of 
the national manufacturer is one f the main work di rections of the Government of the Republic of 
Kazakhstan. 
The commitment to bring the laws of Kazakhstan in compliance with the provisions of the WTO 
Agreement on TRIMs shall be implemented within an  agreed transitional period after the accession of 
Kazakhstan to the WTO. 
This measure first of all solves the problem w ith unemployment of able-bodied citizens and the 
problem with placing orders with local manufactur ers, which will boost the gross domestic product, 
i.e. improves the economic indices, increases the revenues to the budget from taxation. 
During the requested transitional period Kazakhsta n will take measures to bring the laws on 
compulsory use of national goods and services in th e subsurface utilization operations in compliance 
with the WTO Agreements.  However, at presen t Kazakhstan only begins forming and developing a 
number of economy sectors, which it virtually lack s. Being new productions, these industries need 
support.  Besides, the new industries' goods and services cannot be competitive in the first time, 
especially in the absence of their interna tionally accepted and recognized counterparts. 
Question 110 
Furthermore, please also provide informatio n regarding the newly launched industrial 
innovation program for the period of 2003-2015 (see paragraph 180 of the Factual Summary).  WT/ACC/KAZ/57 
Page 88  
 
 This program also appears to be a prohibited export subsidy to the extent that it provides 
preferences to local produ cers and service suppliers.   
Please provide information regarding Kazakhs tan's industrial innovation program for the 
period of 2003-2015, including the program's legislat ive authority.  In particular, please provide 
information regarding the types of preferen ces provided to local producers and service 
suppliers under this program.  Please also pr ovide information regarding the industries 
receiving benefits under this program.   
Could you please explain whether firms recei ve incentives under this program, which are 
contingent upon using domestically produced equipment, supplies, and services in their 
operations?  If so, please explain how the GOK plans to eliminate or bring this program into 
compliance with WTO provisions. 
Answer:
 
The main goal of the Strategy on Industrial I nnovation Development of th e Republic of Kazakhstan 
for the period of 2003-2015 (hereinafter referred to  as the Strategy) approved by Presidential Decree 
No. 1096 of 17 May 2003 is to achieve the steady development of the country by economy 
diversification, assisting in diversion from the ra w materials oriented economy, and to prepare the 
environment for the long-term transition to the service and technology oriented economy. 
The Strategy provides for application of no prohibited export subsidies and preferences to the local 
manufacturers and service providers by the Gove rnment of the Republic of Kazakhstan. 
Moreover, integration of Kazakhstan into the wo rld economy is one of the main objectives of the 
Strategy on economic development of K azakhstan for the period of up to 2015. 
Question 111 According to Kazakhstan's reply to Question 166 in Document WT/ACC/KAZ/50, the Draft 
Law  "On Production Sharing Agree ments" has entered into force. 
Please provide the Working Party a copy of this legislation. Could you please also explain whether this legisl ation provides benefits to producers contingent 
on the use of domestic over imported goods.  If so, please explain how this legislation conforms 
with Members' obligations under Article 3.1 of the Subsidies Agreement. 
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:
 
The draft law "On Production Sharing Agreement in Offshore Oil Operations" has been submitted by 
the Government Resolution No. 969 of 16 Septem ber 2004 to the Parliament of Kazakhstan for 
approval.  Currently it is being reviewed in the Parliament, and therefore, does not have any legal 
force yet. 
Question 112 
Paragraph 180:  Generally, in order to assess whether any transitional period could be 
accorded, Kazakhstan will have to justify the need  very carefully with a detailed Action Plan,  WT/ACC/KAZ/57 
 Page 89 
 
 
 specifying each step to be taken, and the timefr ame within which it will be accomplished.  When 
does Kazakhstan think this Action Plan will be available?  Please also provide further information on the planned steps to improve th e inconsistent provisions of the implementing 
regulations mentioned. 
Answer:
 
Kazakhstan needs a transition period for measures to  bring the legislation in line with the WTO 
provisions.  In the sector of subsurface resources u se it is advisable to grant a transition for the period 
up to 2010, when the Governmental Program on Explor ation of Kazakh Sector of the Caspian Sea will 
be logically completed and all subs urface resources users will have stable economical relations with 
Kazakh goods manufacturers. 
-  State-trading entities Question 113 This section is woefully inadequate. We woul d like to see information on the large State 
companies and facilities that engage in trade on behalf of the government, that have monopoly 
positions in Kazakhstan, and/or that have close rel ationships to the Ministries.  In this regard, 
the firms notified in WT/ACC/KAZ/51 should be described. 
We will require a strong commitment in this se ction to ensure that Kazakhstan's state owned 
firms are operated within WTO provisions and on a commercial basis. 
Answer:
 
Besides the companies listed in document WT /ACC/KAZ/51, there are a number of companies 
producing industrial products, with the state share in the charter capital. 
However, those companies are not involved in the export-import operations and, therefore, are not 
funded by the national budget for this purpose.  In  this view Article XVII of GATT does not apply to 
them. 
Annex II to document WT/ACC/SPEC/KAZ/8/Rev.1 has the list of all state owned companies and 
companies with the state share in their capital. 
-  Free zones, special economic areas Question 114 Kazakhstan's Free zones are authorized by legisl ation that contains provisions for granting 
special benefits contingent on export orientation a nd/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. 
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.  In addition , goods produced in the free zones under tax and 
tariff provisions that exempted imports and im ported inputs from tariffs and certain taxes WT/ACC/KAZ/57 
Page 90  
 
 would be subject to normal customs formalities when entering the rest of Kazakhstan, including 
the application of tariffs and taxes 
Answer:
 
The existing laws on SEZ have no provis ions on privileges contingent in  law or in fact on export of 
goods and services. 
The Tax Code provides for taxation privileges in th e territory of the SEZ in the view of the SEZ 
mission (encourage and boost the development of the left bank of Ishim River by drawing investments 
and cutting-edge technologies into construction, cr eation of the modern infrastructure for the capital; 
creation of new productions for exploration of K azakhstan's offshore sector of the Caspian Sea; 
development of scientific and innovation activities) , aiming to encourage development of productions 
in the territories of the said SEZs, which are institu tionally oriented to the domestic consumption in 
Kazakhstan. 
Among the objectives of SEZ creation Presidentia l Decrees on creation of corresponding zones use 
the term of "export oriented production". 
However, the term "export oriented" does not mean  the fact of export of goods and services as a 
condition for the privileged taxation.  This de scription means creating production of goods and 
services that can be potentially exported. The la tter means that the goods or services have the 
functions, quality and other parameters, which will ma ke the product competitive in the world market. 
Therefore, term "export oriented" is a general charac teristic of production and ob taining this status is 
not related with the export of goods and services. 
Question 115 
Paragraph 183:  Could Kazakhstan provide a co py of the Law on "Changes and Amendments 
to Legislative Acts on the Special Economic Zones" of 5 July 2001 to the Working Party? 
Answer:  
The English text of the requested Law is av ailable from the Secretariat through document 
WT/ACC/KAZ/57/Add.1. 
- Government procurement Question 116 We seek a commitment from Kazakhstan that it wi ll 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 will consider accession to the WTO Ag reement on Government Procurement after its 
accession to the WTO.   WT/ACC/KAZ/57 
 Page 91 
 
 
 Question 117 
Paragraph 191:  We welcome the fact that Kazakhstan is considering accession to the WTO 
Agreement on Government Procurement follo wing accession to the WTO.  We suggest 
Kazakhstan that becomes an observer to the GP A upon accession to the WTO and submits an 
application for membership together with a coverage offer one year after. 
Answer:  
Kazakhstan will consider accession to the WTO Ag reement on Government Procurement after its 
accession to the WTO.  
-  Transit 
Question 118 
Paragraph 194:  We note that transportation co sts for goods in transit do not benefit from the 
same decreasing coefficients provided to domestic transport. 
Answer:  
For international transit transportation of goods by  railway the Republic of Kazakhstan applies the 
Tariff Policy of the Railway of Kazakhstan on Intern ational Transportation of Goods for the freight 
year, which is annually coordinated and approve d at the annual Tariff Conferences held in the 
framework of the Tariff Agreement of the Railway Administrations (Carriers) of the CIS Countries 
made on 17 February 1993. 
The rates of the Tariff Policy for the freight year are based on the International Transit Tariffs (ITT) 
and Uniform Transit Tariff (UTT), to whic h the railway of Kazakhstan is a party. 
The rates declared by the CIS railways in the Ta riff Policy define the maximal tariff rate for the 
freight year. 
In accordance with the Concept on Tariff Polic y Coordination for the CIS Members' Railway 
Transport approved by resolution of the CIS Governments Council on 18 October 1996, "…every 
railway administration has the right to lower the de clared tariff rate by making discounts and setting a 
special tariff rate in accordance with its economical reasons". 
In accordance with the provisions of the Tariff Ag reement, being a Member to the Agreement, 
"Kazakhstan Temir Zholy" NC" JSC has the right to increase the basic tariff two times a year and to reduce the tariff by granting decreasing coefficients to tariffs on transporta tion of certain kinds of 
goods by certain routes. 
Purporting to ensure competitive transportation of go ods by railway, to implement the flexible transit 
tariff policy for retaining the existing turnover of g oods transportation and to draw additional flows of 
goods, "Kazakhstan Temir Zholy" NC" JSC crea ted a working commission on setting competitive 
tariff conditions for transit transportation of goods by  the railway of the Republic of Kazakhstan. This 
commission considers proposals from all consignors  and forwarders, if they have the necessary 
justification and estimates. Having made a resolutio n the working commission sends the journals to 
the Ministry of Transport and Communication of the Republic of Kazakhstan for coordination, after 
which they become effective if agreed. WT/ACC/KAZ/57 
Page 92  
 
 No decreasing coefficients are applied to th e dues and payment rates for the transit goods 
transshipment services in the seaports of Kazakhstan. 
Kazakhstan charges no payments for the air tr ansit goods transshipment in its territory. 
Annex 9 has the specific examples of the applied d ecreasing coefficients to transit transportation of 
goods by the railway. 
Question 119 Paragraph 194:  Can the Government of the Republic of Kazakhstan please provide detailed 
information of the charges for transp ortation services for goods in transit? 
We also request that the Government of the Republic of Kazakhstan provide detailed 
information on how access to the state- owned railway system is allocated.  
Answer:
 
For international transit transportation of goods by  railway the Republic of Kazakhstan applies the 
Tariff Policy of the Railway of Kazakhstan on Intern ational Transportation of Goods for the freight 
year, which is annually coordinated and approve d at the annual Tariff Conferences held in the 
framework of the Tariff Agreement of the Railway Administrations (Carriers) of the CIS Countries 
made on 17 February 1993. 
The rates of the Tariff Policy for the freight year are based on the International Transit Tariffs (ITT) 
and Uniform Transit Tariff (UTT), to whic h the railway of Kazakhstan is a party. 
The rates declared by the CIS railways in the Ta riff Policy define the maximal tariff rate for the 
freight year. 
In accordance with the Concept on Tariff Polic y Coordination for the CIS Members' Railway 
Transport approved by resolution of the CIS G overnments Council on 18.10.1996, "…every railway 
administration has the right to lower the declared tariff rate by making discounts and setting a special 
tariff rate in accordance with its economical reasons". 
The amount of payment for the transit of goods by road equals to the administrative expenses or the 
cost of the services. In this case, this is the cost of escort of transit goods. 
As for the international transportation by road, Kazakhstan charges ten monthly calculation indices 
per one vehicle over the exchange quota only; mee tings of the Joint Commissions define the quota 
every year. 
Ordinance No. 320-OD of 12 December 2003 of the Agency of the Republic of Kazakhstan on 
Natural Monopolies Regulation provides for the payment for the trans-shipment of the transit goods in 
the seaports of Kazakhstan.  No decreasing coeffici ents are applied to the dues and payment rates for 
the transit goods trans-shipment services; the payment shall be made on the general terms. 
Kazakhstan charges no payments for the air tran sit goods trans-shipment in its territory. 
In accordance with paragraph 7 of Article 7 of  the Civil Code of the Republic of Kazakhstan 
(hereinafter referred to as the CC RK) foreign pers ons and legal entities as well as persons without a 
citizenship has the right to enjoy the same ri ghts and must fulfil the same commitments and 
obligations as the persons and lega l entities of Kazakhstan, until otherwise stipulated by the laws.  WT/ACC/KAZ/57 
 Page 93 
 
 
 Question 120 
Paragraph 193 appears to be in conflict with  Kazakhstan's statements in the "Tariff 
Exemptions" part of this report.  Please clarif y if  food and beverages are allowed transit. 
Answer:  
While translating from Russian into English some  discrepancy was appeared in paragraph 87 of 
chapter "Tariff rate quotas, tariff exemptions" of the Factual Summary. 
Goods in transit across the territory of Kazakhsta n are exempt from customs charges and fees, VAT, 
and excise taxes. Kazakhstan allows free transit to  reflect provisions of Article V of GATT 1994, as 
well as those of the international treaties to which it is a party. 
The Customs Code provided that certain types of imported goods listed in the Resolution No. 524 of 
4 June 2003 (available from the Secretariat th rough document WT/ACC/KAZ/57/Add.1) can only 
transit the customs territory of Kazakhstan provid ed that there is a guarantee of payment of all 
chargeable customs duties and taxes  
Except for bans on import and export of certain goods (e.g. arms, drugs, antiques, etc.) there is no 
legislation prohibiting transit of goods. 
-  Agricultural policies Question 121 Paragraph 205:  Kazakhstan should understand that updating export subsidy and domestic 
support documents is an ongoing process for all current WTO members.  In order for an 
accurate analysis by the Members, the base peri od in these documents should reflect the most 
recent years and the tables record expenditures on current programs. 
Answer:
 
Kazakhstan needs application of export subsidies due  to its geographic location, no access to the sea, 
large territory, remote location from the main ag ricultural products markets and high rate of 
transportation costs, which significantly reduce the competitiveness of agricu ltural products made in 
Kazakhstan. Besides, production of the main export product (grain) is much higher than the domestic 
market needs, and this is one of the main  sources of income for the rural population. 
Since the WTO provisions allow application of expor t subsidies, Kazakhstan would like to have the 
right for application of export subsidies practiced by other WTO Members. 
The WTO Agreement on Agriculture has no clear inst ructions on what period shall be the "base" 
period. 
The letter of the WTO Secretariat provides that countries in accessi on shall submit information on the 
domestic support "using, as a rule, the average for the last three years". 
Originally Kazakhstan suggested 1994-1996 as the base period, which was changed to 1996-1998 
upon the request of the WTO Members.  The s uggested base period (1996-1998) is a rather 
representative updated period, for which a lot of materials had been collected and processed.  The negotiations have been based on this period for the several recent years. WT/ACC/KAZ/57 
Page 94  
 
 The choice of 1996-1998 base period can be explained by  the fact that in that period the agrarian 
sector situation was rather stable as compared ag ainst the subsequent phases of thoroughgoing market 
reforms.  The economic crisis in 1998 resulted in a sudden reduction of the support of the agrarian 
industrial sector.  The agriculture had no conditions  for reproduction.  The support was provided in 
the amount necessary for the simple survival of ag riculture.  The choice of the period was based on 
the conditions specific for the pre-crisis  situation in the agrarian sector. 
Question 122 
Paragraph 209 of the Factual Summary states that Kazakhstan "needed to use export 
subsidies" for various reasons.  We would like to reiterate our position, which is the same for all 
acceding countries, that Kazakhstan commit to bindi ng all agricultural export subsidies at zero 
upon accession.  
Answer:
 
Kazakhstan needs application of export subsidies due  to its geographic location, no access to the sea, 
large territory, remote location from the main ag ricultural products markets and high rate of 
transportation costs, which significantly reduce the competitiveness of agricu ltural products made in 
Kazakhstan.  Besides, production of the main expor t product (grain) is much higher than the domestic 
market needs, and this is one of the main  sources of income for the rural population. 
As it was said on the seventh meeting of the Work ing Party, Kazakhstan will no longer insist on direct 
export subsidies to wheat provided that Kazakhstan will be given the opportunity to continue making 
transportation export subsidies to agricultural products. 
Question 123 
The current negotiations under the Doha Developm ent Agenda call for the complete elimination 
of all export subsidies for all Members, therefor e adding them to the Kazakhstan accession is 
unacceptable. 
In addition, it is our view that Kazakhstan do es not have automatic recourse to the S and D 
provisions contained in Article 6.2 and 6.4. 
Answer:  
By its real economic development and all factua l agricultural data Kazakhstan is a developing 
country, but according to the per capita income it is very close to the poor countries (annually US$ 456.6 per capita).  That is why Kazakhstan will assert its right to use Article 6.2 of the WTO 
Agreement on Agriculture. 
TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
General 
Question 124 Could Kazakhstan confirm that all measures fo reseen in document WT/ACC/KAZ/55 indeed 
refer to the year 2004 only (as the title of the document  refers to the years 2004-2006)?  WT/ACC/KAZ/57 
 Page 95 
 
 
 Answer:  
The plan of measures to bring the laws of the Republic of Kazakhstan on intellectual property rights 
protection in compliance with the TRIPS Agre ement submitted by Kazakhstan in document 
WT/ACC/KAZ/48 considers realization of these measures during the period of  2004-2006. 
Information provided in document WT/ACC/KAZ/55 refe rs to the measures to bring the national laws 
in line with the TRIPS Agreement taken in Kazakhstan in 2004.  
Substantive Standards of Protection, Incl uding Procedures for the Acquisition and 
Maintenance of Intellectual Property Rights 
- Copyright and related rights Question 125 
Kazakhstan is not TRIPS compliant in the area of copyrights. Kazakhstan's Law on Copyright 
and Neighbouring Rights (10 June 1996) does not contain a provision that clearly provides for 
the protection of pre-existing works and sound reco rdings as required under Article 18 of the 
Berne Convention.  TRIPS Article 9 requi res WTO Members to comply with Berne 
Articles 1-21.   
Kazakhstan stated that it has developed a draft law "On Changes and Amendments to 
Legislative Acts of The Republic of Kazakhs tan on Intellectual Property."  (Item 215, 
WT/ACC/SPEC/KAZ/8) Please provide a copy of the draft legislation.  What is the anticipated 
timetable for adoption of these amendments? In particular, what provisions in the draft law 
address the protection of pre-existing works and sound recordings as required under the Berne 
and TRIPS Agreements?  What is the proposed term of protection? 
Answer:
 
On 9 July 2004, the Republic of Kazakhstan adopt ed the "Law on Amendments and Addenda to the 
Legal Acts of the Republic of K azakhstan on Intellectual Property". 
This draft law makes amendments and addenda to  the number of legal acts regulating intellectual 
property rights issues. In particular, it makes amendm ents and addenda to the Law of the Republic of 
Kazakhstan "On Copyright and Rela ted Rights" pertaining to the protection of pre-existing works. 
Currently, the copyright exists for the entire life of  the author and for fifty years after his death 
(paragraph 1 of Article 28 of the Law of the Republic of Kazakhstan "On Copyright and Related 
Rights"). 
The right for authorship, the right for the name and the right for reputation protection is protected on a 
permanent base. 
The copyright for a work published anonymously or  under a nom de plume shall be reserved for fifty 
years after the date of its lawful publication. If the author discloses himself/herself or his/her identity is undoubtedly identified within the mentioned pe riod, then the provisions of paragraph 1 of 
Article 28 of the Law of the Republic of Kazakhs tan "On Copyright and Related Rights" will be 
applied. 
The copyright for a work made in  co-authorship shall be reserved for the entire life and for 50 years 
after the death of the last author  who outlived the other co-authors. WT/ACC/KAZ/57 
Page 96  
 
 The copyright for a work published for the first time within the thirty years after the author's death 
shall be reserved for 50 years after the date of publication counting from the 1 January of the year 
following the year of publication. 
If the author was victimized and rehabilitated posthumously, the copyright protection period 
stipulated in Article 28 of the Law "On Copyright  and Related Rights" should be reserved starting 
from the 1 January of the year following the year of rehabilitation. 
At the same time, it should be noted that reserva tion of the copyright for a work under international 
treaties ratified by the Republic of Kazakhstan cannot exceed the period established in the country of 
origin.  
Besides, time periods stipulated in Article 28 of the Law of the Republic of Kazakhstan "On 
Copyright and Related Rights" are applied in all cases when the legal fact to be used as the start time 
took place no earlier than fifty years before the Law of the Republic of Kazakhstan "On Copyright 
and Related Rights" came into force. 
As for the related rights, the performer's rights are reserved for fifty years after the first performance 
or staging.  The rights of the performer for th e name and protection of the performance from any 
distortion or other encroachment on the rights, cap able of damaging the honour and dignity of the 
performer, shall be protected permanently. 
The phonogram copyright is reserved for the period of 50 years after the first publication of the 
phonogram or after the first record, if the phonogram was not published within this period. 
The copyrights of on-air and cable broadcasting comp anies are reserved for the period of fifty years 
after the first on-air or cable broadcasting by such company. 
If the performer was victimized and rehabilitated posthumously, the copyright protection period shall 
be reserved beginning from Janua ry the first of year following the year of rehabilitation. 
The copy of the Law of the Republic of Kazakhsta n "On Amendments and Adde nda to Legal Acts of 
the Republic of Kazakhstan on Intell ectual Property Issues" is available from the Secretariat through 
document WT/ACC/KAZ/57/Add.1.  
- Trademarks, including service marks Question 126 Pending an analysis of new legislation, we  do not believe Kazakhstan's trademark and 
geographical indications protection regime is TRI PS compliant, particularly in the area of 
geographical indications.  
We have requests for further information/legisl ation and additional TRIPS related questions. 
Once we receive the new information/draft legisl ation, and response to additional questions, we 
can make a complete and final TRIPS compliance assessment.  
Are trademarks and geographical indications in Kazakhstan solely protected under the "Law of 
the Republic of Kazakhstan on Trademarks, Service Marks and Appellations of Origin," 
(hereinafter, The Law) No. 456-I LRK, of 26 July 1999?  Are there any supplemental or 
implementing regulations in addition to the 1 999 law?  In its submission of answers to the 
Working Party on the Accession of the Kazakhstan, document [WT/ACC/KAZ/37/Add.3], the Government of Kazakhstan made reference in Qu estion 72  to "The Rules for Drafting and  WT/ACC/KAZ/57 
 Page 97 
 
 
 Filing of Applications for Registration of Trademarks of 8 October 1996 (hereinafter, the 
Rules)."   
Please provide copies of all laws and regulations, including The Rules, relating to the protection 
and enforcement of trademarks and geographical indications for review. 
Answer:  
The legal protection of trademarks  and geographical indication in th e Republic of Kazakhstan is based 
on the Law of the Republic of Kazakhstan "On Trademarks, Service Marks, and Geographical 
Indications of Places of Origin" as well as the Rul es on Drawing Up and Submission of Applications 
for Trademark Registration as of 8 October 1996,  the Rules on Processing of Applications for 
Trademark Registration as of 8 October 1996.  
Document WT/ACC/KAZ/50/Add.1 has the Rules on Drawing Up and Submission of Trademark 
Registration Applications as of  8 October 1996. Please find att ached the Rules on Processing of 
Applications for Trademark Registration as of 8 Oc tober 1996 (available from the Secretariat through 
document WT/ACC/KAZ/57/Add.1). 
Question 127 
The Synoptic Table on Legislation on the Republic Kazakhstan found in WTO Document 
WT/ACC/KAZ/41 indicates that a new Draft Law ha s been developed to harmonize the national 
legislation with the requirements set out in  the international treaties and agreements 
(specifically TRIPS), regulating mechanisms of protection of intellectual property rights.  The Draft Law provides for a number of changes and am endments to the Laws of the Republic of 
Kazakhstan "On Trademarks, Service Marks, and Appellations of Origin."  The WTO 
document indicates that this new law will be subm itted to the Parliament of Kazakhstan in June 
of this year. A copy of the draft law would be helpful to determine if the trademark and 
geographical indications regime of Kazakhstan is co nsistent with WTO norms.  Please provide a 
copy of the draft law for review. 
Answer:
 
The Law of the Republic of Kazakhstan "On Amendm ents and Addenda to the Legal Acts of the 
Republic of Kazakhstan on Intellectual Property Rights  Issues" was adopted in 9 July 2004.  Changes 
to the Law of the Republic of Kazakhstan "O n Trademarks, Service Marks, and Geographical 
Indications of Places of Origin" were introduced by the abovementioned legislation. The copy of this law is available from the Secretariat through document WT/ACC/KAZ/57/Add.1.  
Question 128 
Article 21 of the Law states that a "trademark assi gnment contract or licence contract shall be 
done in writing and registered in Kazpatent, and in the absence of such writing and registration, the contract shall be deemed nu ll and void."  The comments that some members 
have received from trademark owners raise questions about the value of requiring recording of licenses.  Recordation of licenses is not a requi rement in the United States.  Among the concerns 
expressed by trademark owners are the following :  recordation involves significant expense, 
when multiplied over many countries ; failure to record can result in loss of rights – even to 
obvious counterfeiters; and that failure to reco rd can actually be used by counterfeiters and 
others as a means to prevent the true owner from  asserting rights.  For these reasons, we would 
like to know why mandatory licence recording, particul arly as it affects the rights of legitimate 
trademark owners, is considered to be desirable.   WT/ACC/KAZ/57 
Page 98  
 
 Answer:
 
According to the Article 21 of TRIPS Agreem ent, Members may determine conditions on the 
assignment of licenses and application of trademarks.  It is being understood that the compulsory 
licensing of trademarks shall not be permitted and that  the owner of a registered trademark shall have 
the right to assign the trademark with or without the transfer of business to which the trademark 
belongs.   
The existing laws of Kazakhstan stipulate that the owner of a registered trademark can assign the right 
for the trademark on all goods and services listed in the certificate or on part of them to the other party 
under an agreement or licence contract (Article 21 (1-2) of the Law of the Republic of Kazakhstan 
"On Trademarks, Service Marks a nd Indications of Places of Origin of Goods"). The agreement on 
the assignment of the right for the tr ademark or the licensing contract as well as the licensing contract 
and subcontract on the use of an invention, utility m odel, or industrial design shall be made in writing 
and registered in the authorized body (Article 1031 of the Civil Code of the Republic of Kazakhstan, 
paragraph 3 of Article 21 of the Law of the Repub lic of Kazakhstan "On Trademarks, Service Marks, 
and Indications of Places of Origin of Goods"). 
Incompliance with the writing or registration requirement leads to the voidance of the contract. 
Rejection in registration shall be made in writi ng and is possible only with the reference to the 
violation of Kazakhstan's legal pr ovisions (Article 12 of the Law of the Republic of Kazakhstan "On 
Trademarks, Service Marks, and Indications of Places of Origin of Goods"). 
At the same time, it should be noted that according to the civil laws of Kazakhstan any deals subject 
to the state or other registration based on the laws of Kazakhstan are considered to be in force only 
after their registration (paragraph 1 of Artic le 155 of the Civil Code of Kazakhstan). 
Thus, the legal norms existing in Kazakhstan ar e in compliance with the Article 21 of TRIPS 
Agreement, since using this procedure the governme nt protects the rights of the intellectual property 
owners. 
Question 129 
Moreover, in a previous question submitted as king Kazakhstan to confirm that a trademark 
maybe assigned with or without the goodwill of a company, an answer to the question was not provided.  The question is posed again to Kaza khstan.  Please note that Paris Convention 
Article 6 quater  requires transfer of a trademark along with the goodwill.   
Answer:
 
Article 6 quater  of the Paris Convention provides that assignment of a trademark is valid only when 
the owner of this trademark assigns it with the tran sfer of business to which the trademark belongs.  
To make such an assignment valid, it is sufficient to transfer the business situated in EU entirely or in 
part to the assignee with the exclusive right fo r the production or sale of products with the assigned 
trademark. 
The Law of Kazakhstan "On Trademarks, Service Ma rks, and Indications of Places of Origin of 
Goods" stipulates that the owner can assign the exclus ive right for a registered trademark on all goods 
and services listed in the certificate or on some  of them to other party under an agreement 
(Article 21).  The assignment of the exclusive rights means a complete transfer of all rights for this 
intellectual property.  WT/ACC/KAZ/57 
 Page 99 
 
 
 No assignment of the right to a registered trademark is allowed if this may mislead the public as to the 
product or its manufacturer. 
Assignment of a trademark as well as the assignment based on the agreement shall be registered in the 
authorized body. 
The owner of a registered trademark (licensor) ca n assign the right to use the trademark to another 
party (licensee) with respect to all or some of the goods and services listed in the certificate under the 
licence contract. 
The licence contract permitting the licensee to use th e trademark shall contain the provision that the 
quality of the goods or services will not be inferior to  those of the licensor, and that the licensor has 
the right to control the implementation of this provision. 
The licence contract expires when th e right for the trademark expires. 
Assigning the trademark to the other party does not entail termination of the licence contract. Assigning the right for the trademark entails the assignment of both the trademark itself used in 
production goods or services and the goodwill it has obtained. 
Therefore, the legal provisions of the Law of th e Republic of Kazakhstan "On Trademarks, Service 
Marks, and Indications of Places of Origin of G oods" meet the requirements of Article 6quater of the 
Paris Convention. 
Question 130 
In what way does the law of Kazakhstan preserve the rights of trademark owners, consistent 
with Articles 16(1) and 24(5) of the TRIPS Agre ement?  It is unclear whether trademarks in 
Kazakhstan would be protected from confusin gly similar and later in time geographical 
indications.  
Answer:
 
Article 16 of the TRIPS Agreement provides that the owner of a registered trademark shall have an 
exclusive right to prevent all third parties without the owner's consent from using identical or similar 
signs for goods or services in the course of trade, wh ich are identical or similar to those in respect of 
which the trademark is registered, where such a use would result in a likelihood of confusion. 
Subparagraph (1) of paragraph 3 of Article 6 of the Law of the Republic of Kazakhstan "On 
Trademarks, Service Marks, and Indications of Place s of Origin of Goods" allows no registration of 
signs and their components which are false or capable  of misleading the public as to the product or its 
manufacturer, including geographical indications capable of misleading the public as to the place of production of the good.  This meets the provisi ons of Article 16 of the TRIPS Agreement. 
- Geographical indications, including appellations of origin Question 131 It is unclear from the response given to Question 75 in WTO document 
WT/ACC/KAZ/37/Add.3 whether foreign geogr aphical indications are protected in 
Kazakhstan.  Specifically, what procedures are in place for the interested parties or owners of 
third-country geographical indications to prevent the use of foreign geographical indications?   WT/ACC/KAZ/57 
Page 100  
 
 Answer:
 
In accordance with Article 48 of the Law "On Trademarks, Service Marks and Appellations of 
Origin," foreign natural as well as legal entities enj oy the rights and observe the obligations stipulated 
in that Law on an equal basis with natural a nd legal entities of the Republic of Kazakhstan.  
Thus, a geographical indication registered in the Republic of Kazakhstan and protected by 
Kazakhstan's laws or by interna tional treaties and agreements, to which Kazakhstan is a party, is 
protected at the same terms as the one registered by a national of Kazakhstan. 
Question 132 
Document WT/ACC/KAZ/50 - Question 196:  plea se clarify, whether in order to have a 
geographical indication protected, it must be regist ered in Kazakhstan.  If yes, then it should be 
revised as such provision conflicts with Article 22.2 of TRIPS, which sets an obligation for 
Members to provide legal protectio n regardless of registration.    
Answer:  
In accordance with Article 22 (2) of the TRIPS Ag reement, Members shall provide the legal means 
for interested parties to prevent the use of any m eans in the designation or presentation of a good that 
indicates or suggests that the good in question orig inates in a geographical area other than the true 
place of origin in a manner which misleads the public as to the geographical origin of the good.  The Law of the Republic of Kazakhsta n "On Trademarks, Service Marks,  and Indications of Places of 
Origin of Goods" stipulates in Article 37 (2) that it is prohibited to use an unregistered geographical 
indication identical or similar to those in respect of which a trademark is registered where such use 
results in the likelihood of confusion.  The indication of the place of origin of a good provides the 
legal protection since its registration and obtaining th e corresponding certificate on the territory of the 
Republic of Kazakhstan. 
Therefore, the provisions of the Law of the Repub lic of Kazakhstan "On Trad emarks, Service Marks, 
and Indications of Places of Origin of Goods" comp ly with the requirements of Article 22 (2) of the 
TRIPS Agreement. 
- Industrial designs Question 133 Kazakhstan's Patent Law of 1999, Article 8(1) requires an industrial design to be "industrially 
applicable."  This appears to be inconsistent  with TRIPS Article 25(1), which only requires an 
industrial design to be new or original and, if pr ovided for in the national legislation, to require 
an inventive step.  Please clarify. 
Answer:
 
Article 25 (1) of the TRIPS Agreement provides th at Members shall provide for the protection of 
independently created industrial designs that are ne w or original.  Members may provide that designs 
are not new or original if they do not significantly differ from known designs or combinations of known design features. 
In Kazakhstan, the Patent Law of the Republic of Kazakhstan regulates the rights for industrial 
designs, which are certified with the provisional and full patents if an applied industrial design meets  WT/ACC/KAZ/57 
 Page 101 
 
 
 the eligibility criteria: it is new, involves an inventiv e step, and is capable of industrial application (in 
accordance with Article 25 (1) of the TRIPS Agreement). 
Since the industrial designs together with invent ions and utility models refer to the objects of 
industrial property, the laws of Kazakhstan set fort h the requirement of "industrial applicability" as 
the main patentability criteria for an industrial design.  First of all, industrially applicable objects must 
have a stable manufacturing form, i.e. it shall be  possible to reproduce the registered physical 
appearance by industrial manufacturing of the registered product. 
The examination for the "industrial applicability" crite rion eligibility may be held before examining 
the eligibility for "newness" and "originality" crite ria. The experts shall determine whether it is 
possible to industrially reproduce the declared indus trial design.  For these purposes, they analyze the 
information on the industrial applicability of the industrial design submitted with the application 
materials. 
Question 134 
Please explain what types of designs fall within th e exception to patentability for "solutions that 
relate to ... industrial, hydraulic and other stationary structures." 
Answer:  
Industrial, hydraulic engineering and other stationary constructions  cannot be recognized as industrial 
designs, because they do not meet the "industrial applicability" criterion. Article 7 of the Law "On 
Copyright and Related Rights" qualifies ar chitectural objects as copyright objects. 
Question 135 
Please explain how Kazakhstan's law is consistent with TRIPS Article 25(2). 
Answer:  
In accordance with Article 25 (2) of the TRIPS Ag reement providing that each Member shall ensure 
that requirements for securing protection for tex tile designs in laws on industrial designs or 
copyrights, the Patent Law of the Republic of Kazakhstan defines the exclusive rights and liabilities 
of a patent holder for industrial designs , textile goods being a kind of the latter. 
In this view, Article 8 of the Patent Law of  the Republic of Kazakhstan qualifies the styling 
determining the physical appearance of the good,  including textile goods, as an industrial design. 
Question 136 
Paragraphs 237-248:  The text refers frequently to the term "a patent FOR an industrial 
design".  Usually and in the language we use, th e term in question is either "a patent" or "an 
industrial design". 
Answer:  
Article 8 of the Patent Law of the Republic of  Kazakhstan qualifies the styling determining the 
physical appearance of the good as an industrial design.   The industrial design can be legally protected 
if it is new, involves an inventive step and is industrially applicable. WT/ACC/KAZ/57 
Page 102  
 
 A provisional patent or an industrial design pate nt certifies the rights for the industrial design 
(Article 5 of the patent Law of the Republic of Kazakhstan). 
A provisional industrial design patent may be issued af ter the formal expertise of the application. The 
expert organization makes the formal  application examination in two months after the receipt of the 
application.  They can also make the formal examination before the mentioned deadline upon the 
applicant's request in writing.  However, in this case the applicant forgoes the right stipulated in 
paragraph 1 of Article 21 of the Patent Law of th e Republic of Kazakhstan (w ithin two months since 
the date of application the applicant has the ri ght to make corrections and adjustments in the 
documents which do not change the industrial design essence). 
During the conduct of formal expertise of an applica tion for invention, submission of all the necessary 
documentation and compliance with all the require ments is examined, the application date, the 
possibility to qualify the declared application as prot ected invention is determined, and also the unity 
of invention is checked.  The formal expertise does not examine the decl ared invention for the 
patentability criteria stipulated in paragraph 1 of Article 6 of the Patent Law of the Republic of 
Kazakhstan.  The applicant takes the risk and responsibility for obtaining the provisional patent. 
An industrial design patent may only be issued afte r the essential examination of the application upon 
a request of the applicant or a third party. The re quest can be submitted after official publication of 
information on the issue of the provisional patent, but  within five years since the application date.  If 
the provisional patent is prolonged under paragraph 3 of Article 5 of the Patent Law of the Republic 
of Kazakhstan, the expert organization makes th e essential examination of the application.  The 
essential examination includes determining the techni que level by searching the information on the 
declared invention, checking the conformity of th e declared invention to the unity of invention 
requirement and patentability criteria eligibility define d in Article 6 of the Patent Law of the Republic 
of Kazakhstan.  If the applicant requests the es sential examination, he/she shall also submit 
documents supporting the payment of the essentia l examination and the provisional patent 
prolongation.  
The provisional patent and industrial design patent certify the priority, authorship (inventorship) and 
the exclusive right for the industrial property. 
The provisional industrial design patent is valid  for five years since the application date. 
The industrial design patent is valid for ten years si nce the application date with the opportunity to 
prolong the validity period up to five years upon a request of the patent holder. 
- Patents 
Question 137 
We are not yet able to make a determination whether Kazakhstan's laws are TRIPS compliant.  
We have requests for further information/legisl ation and additional TRIPS related questions. 
Once we receive the new information/draft legisl ation, and response to additional questions, we 
can make a complete and final TRIPS compliance assessment.  
In WT/ACC/KAZ/41 of May 2003, Kazakhstan me ntions a Draft Law that provides for several 
changes in Kazakhstan's laws protecting intell ectual property.  Has this Draft Law been 
enacted?  If not, when do you expect it will be  passed into law?  Could Kazakhstan provide us a 
copy of the law?  WT/ACC/KAZ/57 
 Page 103 
 
 
 Answer:  
This is the Law of the Republic of Kazakhstan "O n Amendments and Addenda to Legal Acts of the 
Republic of Kazakhstan on Intellectual Property", which makes changes in the main legal acts 
regulating the intellectual property rights protecti on issues (Laws of the Republic of Kazakhstan "On 
Copyright and related Rights", "Patent Law", "O n Protection of Selection Achievements", "On 
Trademarks, Service marks, and Indications of Pl aces of Origin of Goods", "On Legal Protection of 
Integrated-Circuit Layouts").  This law was adopted on 9 July 2004 and was harmonized with 
international treaties and the TRIPS Agreement. 
A copy of this Law is available from the Secr etariat through document WT/ACC/KAZ/57/Add.1. 
Question 138 
In response to Question 86 in document WT/ACC/KAZ/37/Add.3 regarding the compatibility of 
Kazakhstan's law with Paris Convention Article 3, Kazakhstan explained that the Constitution 
provided the same rights to foreign and stateless individuals as to Kazakhstan citizens.   Later 
in the same response, however, Kazakhstan note d that under the Patent Law of 1999, there 
might be exceptions to this provision.   Pl ease explain these exceptions and how they are 
consistent with Paris Convention Article 3 as well as with TRIPS Article 3 on National 
Treatment. 
Answer:  
In accordance with Article 3 of the Paris Conventio n, Article 3 of the TRIPS Agreement providing 
that each Member shall accord to the nationals of other Members treatment no less favourable than 
that it accords to its own nationals with regard to the protection of intellect ual property, paragraph 1 
of Article 38 of the Patent Law of the Republic of Kazakhstan both forei gn and Kazakh persons and 
legal entities equally enjoy the rights provided in th e Patent Law of the Republic of Kazakhstan in 
accordance with international treaties and agreemen ts, to which Kazakhstan is a party, or in 
accordance with the reciprocity principle. 
Paragraph 2 of Article 38 of th e Patent Law of the Republic of  Kazakhstan provides that person 
without a citizenship resident in Kazakhstan enjoy the same rights stipulated in the Patent Law and 
other laws pertaining to the legal protection of industrial property as the persons and legal entities of 
Kazakhstan do, until otherwise agreed by the Patent Law or other legal acts. 
Therefore, the Patent Law of the Republic of Kazakhstan has no provisio ns conflicting with the 
provisions of Article 3 of the Paris Conventi on and Article 3 of the Agreement on TRIPS. 
Question 139 
In response to Question 86 in document WT/ACC /KAZ/37/Add.3 regarding the exclusion from 
patentability for "proposals that are contrary to the public interest, humanitarian principles or 
morality," Kazakhstan explained that this "imp lements" TRIPS Article 27(2).  As noted in 
Question 86, however, the language used is br oader than the permissible exceptions provided in 
TRIPS Article 27(2).  Please explain how the exclusion is consistent with TRIPS Article 27(2). 
Answer:  
Subject to Article 27(2) of the TRIPS Agre ement, Members may exclude from patentability 
inventions, the prevention within their territory of  the commercial exploitation of which is necessary 
to protect order public or morality, including to prot ect human, animal or plant life or health or to WT/ACC/KAZ/57 
Page 104  
 
 avoid serious prejudice to the environment, provided that such exclusion is not made merely because 
the exploitation is prohibited by their law. 
Subject to subparagraph (8) of paragraph 2 of Ar ticle 6 and subparagraph (5) of paragraph 2 of 
Article 8 of the Patent Law of  Kazakhstan the solutions, Article s and proposals contradicting the 
public interests, humanity principles and mora lity shall not be qualified as inventions. 
Applications contradicting the public interests,  humanity principles and morality shall not be 
protected even if they may be new, involve invent ive step, and be capable of industrial application. 
Subject to subparagraph (2) of paragraph 2 of Ar ticle 4 of the Patent Law of the Republic of 
Kazakhstan the authorized body on inventions, utility models, and indus trial designs protection grants 
protection documents on inventions, utility models and industrial designs, and therefore has the right 
to independently resolve whether an intellect ual property object meets the humanity criteria 
established in the society and being commonly accepted. 
The antihumanism criteria may also take into accoun t any resolutions of authorized bodies banning 
substances or engineering solutions employed in the invention and capable of doing harm to the 
human and human life. 
Question 140 Kazakhstan's Patent Law of 1999 also exempt s from patentability "methods of economic 
organization and management" and "computer programs."  TRIPS Article 27(1) prohibits 
discrimination in the granting of patents on th e basis of technology.  Please explain how the 
above-identified exclusions are consistent with TRIPS Article 27(1). 
Answer:
 
Subject to Article 27 (1) of the TRIPS Agreement,  patents shall be available for any inventions, 
whether products or processes, in all fields of tec hnology, provided that they are new, involve an 
inventive step and are capable of industrial applicat ion.  Patents shall be available and patent rights 
enjoyable without discrimination as to the place of invention, the field of technology and whether 
products are imported or locally produced. 
In accordance with the laws of the Republic of Kazakhstan computer programs are protected by the 
Law on Copyright as copyright objects, and by the civ il laws of Kazakhstan (Article 9 of the Law of 
the Republic of Kazakhstan "On Copyright and Relate d Rights", Article 972 of the Civil Code of the 
Republic of Kazakhstan). 
Besides, protection is available for all kinds of software (including operation systems) which may be 
expressed in any language and in any form, incl uding the source and object code (paragraph 2 of 
Article 972 of the Civil Code of the Republic of Ka zakhstan, paragraph 2 of Article 9 of the Law of 
the Republic of Kazakhstan "On Co pyright and Related Rights"). 
Question 141 
Is the list of patentable subject matter in Article 6(2) of the Patent Law of 1999 intended to be 
exhaustive, or are plants, animals and surgical , therapeutic and diagnostic methods patentable 
in Kazakhstan? 
Answer:  
The list in paragraph 2 of Article 6 of the Patent  Law of the Republic of Kazakhstan is exhaustive.  WT/ACC/KAZ/57 
 Page 105 
 
 
 The Law of the Republic of Kazakhstan "On Pr otection of Selection Achievements" as of 
13 July 1999 protects plant varieties and animal species in Kazakhstan. 
Subject to the Patent Law of the Republic of Kaza khstan, diagnostic, therapeu tic and surgical methods 
may be protected as inventions under common inve ntion criteria as defined in Article 6 of the 
mentioned Patent law. 
Question 142 Please explain in detail how the co mpulsory licensing provisions in Articles 11(3) and 11(4) of 
the Patent Law of 1999 comply with each of  the requirements of TRIPS Article 31(a)-(l) 
regarding compulsory licenses. 
Answer:
 
Article 31 (a)-(k) of the TRIPS Agreement sets fort h the provisions to be respected according to the 
legislation of a Member in case of use of the subject matter of a patent without the authorization of the right holder, including the use by the government or third parties authorized by the government. 
Subject to paragraphs 3, 4 and 5 of Article 11 of the Patent Law of the Republic of Kazakhstan, any 
person may appeal to the court with a petition for a compulsory non-exclusive licence if, prior to such 
a claim, the proposed user has made efforts to obt ain authorization from the right holder on reasonable 
commercial terms and conditions and that such effo rts have not been successful within a reasonable 
period of time, and if the invention was non-working for the period of any four consecutive years after the official publication of information on issuance of the protection document for this invention. If the patent holder fails to prove that such a misuse was due to a respectful reason, the court shall grant the 
licence in question specifying the scope and term of use, the amount and order of payments. The 
amount of payments shall not be inferior to the ma rket price of the licence defined in accordance with 
the existing practice. 
Subject to Article 12 of the Patent law of the Republic of Kazakhstan the following shall not be 
construed as violation of the exclusive rights of the patent holder: 
- application of means containing protected patent holder exclusive right objects of industrial 
property, contained in the structure of or used for operation of (sea, river, air, land, and space) 
vehicles of other countries, provided that the said vehicles were on the territory of the Republic of Kazakhstan temporarily or by accident  and the objects were used for the needs of 
the vehicle.  Such actions are not considered to  be violations of the exclusive rights of the 
patent holders if the vehicles belong to the na tural and legal entities of the countries, which 
provide the same rights to the owners of vehicles of the Republic of Kazakhstan.  
- conduct of a scientific research or an experime nt of an object containing a protected subject 
matter of industrial property;  
- application of such means in emergency situati ons (natural and other disasters, big accidents) 
with immediate notification of the patent holde r and subsequent payment of the correspondent 
compensation to the patent holder;  
- application of such means for personal needs without a commercial purpose; and 
- as for medicines, one-time preparation of the medicine by doctor's prescription. 
Thus, the existing legal norms meet the requirement s of Article 31 (a)-(k) of the TRIPS Agreement. 
As for the requirements of Article 31 (1) of the WTO Agreement on TRIPS, there are no definitions 
of "the first patent" and "the second patent" in the ex isting laws of Kazakhstan. Subject to Article 5 of 
the Patent Law of the Republic of Kazakhstan, there are two kinds of protection documents for WT/ACC/KAZ/57 
Page 106  
 
 industrial property:  the provisional patent and th e full patent, which are equal in protection, but 
having various validity periods. 
Question 143 
Please explain the exception to exclusive rights provided in Article 12(6) of the Patent Law of 
1999. 
Answer:
 
Subject to paragraph 1 of Article 11 of the Pate nt Law of the Republic of Kazakhstan the patent 
holder has the exclusive right for the use of the protected industrial property. In accordance with 
paragraph 6 of that Article the patent holder can cede the protection document to any person or legal 
entity.  The agreement of cession must be register ed in the Committee on Intellectual Property Rights 
at the Ministry of Justice of the Republic of Kazakhstan. 
In this view application of means containing prot ected subject matters of industrial property are not 
considered as violation of the exclusive right of the patent holder, provided that such means have been 
utilized, for instance, by an agreement of cession. 
Question 144 
How does the Patent Law of 1999 comply with  TRIPS Article 34 requiring a reversal of the 
burden of proof in civil proceedings concerning the infringement of a process patent? 
Answer:  
Subject to Article 34 of the Agreement on TRIPS any Member shall be free to provide that the burden 
of proof indicated in paragraph 1 shall be on the alleged infringer only if th e condition referred to in 
subparagraph (a) is fulfilled or only if the condition referred to in subpa ragraph (b) is fulfilled ((a) if 
the product obtained by the patented process is new;  (b) if there is a substantial likelihood that the 
identical product was made by the process and the owner of the patent has been unable through 
reasonable efforts to determin e the process actually used). 
The existing Patent law of the Repub lic of Kazakhstan has no provisions stipulating that the burden of 
proof for the purposes of civil proceedings in respect  of the infringement of the rights for intellectual 
property, because the Patent Law of the Republic of  Kazakhstan only regulates the relations in respect 
of the process of patenting of intellectual property subject matters.  Article 65 of the Civil Procedural 
Code of the Republic of Kazakhstan has such a prov ision where every party is responsible for proving 
its own claims and statements.  
Subject to Article 66 of the Civil Procedural C ode of the Republic of Kazakhstan other persons 
involved in the process can provide evidences too. 
Question 145 Can the requirement that a patented invention be used, as provided in Article 11(3) of the 
Patent Law of 1999, be satisfied by importation of  the invention into Kazakhstan?  If not, please 
explain how this practice is consistent with TR IPS Article 27(1), which prohibits discrimination 
on the basis of whether the invention is produced locally or imported.  WT/ACC/KAZ/57 
 Page 107 
 
 
 Answer:  
Paragraph 2 of Article 11 of the Patent Law of  the Republic of Kazakhstan defines the use of 
industrial property as manufacturing, application, im portation, offer to sale, sale, and other means of 
putting a product inclusive of the pr otected industrial property into the civil circulation or its storage 
with the purpose to do so, as well as application of the protected method. 
- Requirements on undisclosed information,  including trade secrets and test data 
Question 146 In its response to Question 90 in document WT/ACC/KAZ/37/Add.3 on the protection of 
undisclosed information, Kazakhstan identified Articles 34 and 15 of the Patent Law of 1999 as satisfying its requirements under TRIPS Article 39( 3).  Article 15, however, does not mention 
undisclosed information, and Article 34 applies only  to the disclosure of information related to 
"intellectual property subject matter," which is defined in Article 1(5) as the "results of intellectual creative activity."  This definition does not appear to extend to the protection of 
"test or other data, the origination of which in volves considerable effort."  Please explain how 
Kazakhstan's law is consistent with TRIPS Article 39(3). 
Answer:
 
Subject to Article 39 (3) of the Agreement on TR IPS Members, when requiring, as a condition of 
approving the marketing of pharmaceutical or of agricultural chemical products which utilize new 
chemical entities, the submission of undisclosed test or other data, the origination of which involves a 
considerable effort, shall protect such  data against unfair commercial use.  
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 lega l grounds and the information owner takes steps to 
keep it secret. It also protects information on the submission of undisclosed test or other data, the origination of which involves a considerable effort , therefore guaranteeing protection of all such data 
against unfair commercial use. These provisions of the civil laws of Kazakhstan meet the 
requirements of Article 39 (3) of the TRIPS Agreement. 
Besides, the reply to question 90 (WT/ACC/KAZ/37/A dd.3) quotes the provisions of Article 15 of the 
Law of the Republic of Kazakhstan "On Protection of  Selection Achievements", qualifying a natural 
or legal person as infringing on the rights of the patent holder, if such a person discloses the information on the sort and variety specified in  the submitted application and being the commercial 
secret without the authorization from the patent holder. 
Question 147 How does Kazakhstan's law implement the require ments of TRIPS Articles 39(1) and 39(2)? 
Answer:
 
Subject to Articles 39 (1) and 39 (2) of the Agreement on TRIPS Members shall protect undisclosed 
information and data subm itted to governments or governmental agencies. 
Subject to Article 126 of the Civil Code of the Re public of Kazakhstan the civil laws of Kazakhstan 
protect information, which has real or commercial value if kept in secret from third parties and is not accessible on the legal grounds. WT/ACC/KAZ/57 
Page 108  
 
 Therefore, the existing provisions of the Civil Code of the Republic of Kazakhstan meet the 
requirements of paragraph 1 and 2 of Article 39 of the TRIPS Agreement. 
Question 148 
In paragraph 251 it is mentioned that Article 226 of the Civil Code also protects confidential 
data or other information which was required in the process of approving the marketing or sale 
of chemical, pharmaceutical, or agricultural products. 
Regarding the protection of such data, Article 39.3 of the TRIPS Agreement establishes two 
specific obligations:  to protect undisclosed test or  other data submitted by an applicant to the 
responsible State agency in the procedure for market authorisation of a pharmaceutical or of an agricultural chemical product a) against disclosure and b) from unfair commercial use.  
- We would like to thank the Republic of Ka zakhstan for the information given to the 
question regarding the obligation to protect su ch data against disclosure by mentioning 
Article 126 of the Civil Code, 34 of the Patent Law, Article 158 of the Law "On Administrative Violations" and Article 184 of the Criminal Code; 
- Concerning the question regarding the obligat ion to protect such data against unfair 
commercial use, please explain in detail how your legislation fulfils this obligation and 
ensures that such data is protected against unfair commercial use by a competitor. In 
particular: 
Does Kazakhstan's legislation, for example, pr ohibit a second applicant from relying on, or 
from referring to the original data of the first applicant, when applying subsequently for market 
authorisation for his own product? In other word s, does a second applicant have to provide to 
the responsible authorities the same data on sa fety 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:
 
The civil legislation 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 legal grounds (Ar ticle 126 of the Civil Code of the Republic of 
Kazakhstan).  
Subject to Article 34 of the Patent Law of the Republ ic of Kazakhstan disclosure of the subject matter 
of an industrial property before the official publication of information on it without the consent of the 
author or applicant entails responsibility under the la ws of the Republic of Kazakhstan.  Article 15 of 
the Law of the Republic of Kazakhstan "On Protec tion of Selection Achievements", for instance, 
qualifies a natural or legal person as infringing on th e rights of the patent holder, if such a person 
discloses the information on the sort and variety sp ecified in the submitted application and being the 
commercial secret without the authorization from the patent holder. 
At the same time, it should be noted that the ex isting laws of Kazakhstan provides no term "second 
applicant", because the industrial property priority is determined by the date of  application submission 
and the right holder has an exclusive right for the protected industrial property.  WT/ACC/KAZ/57 
 Page 109 
 
 
 Question 149 
In paragraph 255 it is mentioned that the Dr aft Law "On Commercial Secrets" was withdrawn 
from the hearing in the Parliament. Please inform about the state of play of the legislative process, in particular: 
- When is this subject matter expected to be resubmitted to the Parliament? 
- Is the content of the Draft Law being revised? 
- We would welcome to receive a draft of the new law. 
Answer:
 
The draft Law of the Republic of Kazakhstan "On Commercial Secret" was withdrawn from the 
Parliament of the Republic of Kazakhstan and no re-consideration is planned in the near future. 
As for the protection of information, 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 pa rties and it is not readily accessible on legal 
grounds. 
Enforcement 
- Civil judicial procedures and remedies 
Question 150 The following questions pertain to Question 85 of WT/ACC/KAZ/37/Add.3. Please describe the manner in which the law of  the Republic of Kazakhstan complies with 
TRIPS Article 43 (1) requiring that judicial auth orities shall have the authority, where a party 
has presented reasonably available evidence suffic ient to support its claim and has specified 
evidence relevant to substantiation of its claims which lies in the control of the opposing party, 
to order that this evidence be produced by the opposing party, subject in appropriate cases to 
conditions which ensure the protection of confidential information. 
Answer:
 
Subject to Article 43(1) of the Agreement on TRIPS the judicial authorities shall have the authority, 
where a party has presented reasonably available ev idence sufficient to suppo rt its claims and has 
specified evidence relevant to substantiation of its  claims which lies in the control of the opposing 
party, to order that this evidence be produced by  the opposing party, subject in appropriate cases to 
conditions which ensure the protec tion of confidential information. 
Subject to Article 65 of the Civil Procedural Code  of the Republic of Kazakhstan every party is 
responsible for presenting evidence to s upport its own claims and statements. 
Moreover, subject to paragraph 3 of Article 66 of the Civil Procedural Code of the Republic of 
Kazakhstan the court has the right to suggest othe r parties and persons involved in the process to 
provide additional evidence relevant to the case too. 
Subject to paragraph 4 of Article 66 of the Civil Procedural Code of Kazakhstan in cases when parties 
and other persons involved in the process had proble ms with presenting evidence, the court can assist WT/ACC/KAZ/57 
Page 110  
 
 them in obtaining the necessary evidence upon their re quest.  If necessary, the court can provide the 
requesting party with an official letter of  request to obtain such an evidence.  
Besides, if certain information is qualified as conf idential the court has the right to take measures to 
protect such information in accordance with Artic le 126 of the Civil Code of the Republic of 
Kazakhstan, which 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 
legal grounds and the information owner takes steps to keep it secret.  
Also, the court has the right to make a private sessi on to consider the data qualified as confidential in 
case when the court had satisfied the request of a pa rty involved to present the commercial secret or 
confidential data. 
These provisions of the civil laws of Kazakhstan meet  the requirements of Article 43 (1) of the TRIPS 
Agreement. 
Question 151 
Please explain the manner in which the law of the Republic of Kazakhstan complies with TRIPS 
Article 45(1) requiring that the judicial authorities shall have the authority to order the 
infringer to pay the right holder damages adequa te to compensate for the injury the right 
holder has suffered because of an infringement of  the person's intellectual property right by an 
infringer who knowingly, or with reasonable grou nds to know, engaged in infringing activity. 
Answer:
 
Subject to Article 45 (1) of the Agreement on TRIPS th e judicial authorities shall have the authority to 
order the infringer to pay the right holder damages ad equate to compensate for the injury the right 
holder has suffered because of an infringement of that person's intellectual property right by an 
infringer who knowingly, or with reasonable grounds  to know, engaged in infringing activity. 
In accordance with the civil, admini strative, and criminal legislation of Kazakhstan, the court has the 
authority to recover from the violator damages incurred by the right holder. 
Article 44 of the Law of the Republic of Kazakhsta n "On Trademarks, Service Marks, and Indications 
of Places of Goods Origin", for instance, provides that a person illegally using a trademark or an 
indication of a place of goods origin or any sim ilar designation in a manner which misleads the public 
shall discontinue it and compensate the losses incurred  by the right holder of the trademark and the 
holder of the geographical indication. 
In accordance with Article 49 of the Law of the Republic of Kazakhstan "O n Copyright and Related 
Rights" the court can do the following when considering cases on violation of copyrights: 
- oblige the respondent (copyright violator) to co mpensate the losses to the claimant, including 
lost profit; 
- levy the profit obtained by the violator by vi olation of the copyright and related rights and 
transfer it to the claimant; and 
- oblige the respondent to pay the compensation in the amount from twenty to fifty thousand 
minimum wages (defined by the laws of the Republic of Kazakhstan), and in the amount from 
five hundred to fifty thousand minimum wages for violation of the copyright for software or a database.  WT/ACC/KAZ/57 
 Page 111 
 
 
 It should be noted that if the court determines the amount of compensation, it shall be paid instead of 
compensation of losses or levying the profit. 
Therefore, the provisions of the existing laws of Kazakhstan meet the requirements of Article 45 (1) 
of the TRIPS Agreement. 
Question 152 
Please explain the manner in which the law of the Republic of Kazakhstan complies with TRIPS 
Article 45(2) requiring the judicial authorities shall have the authority to order the infringer to pay the right holder expenses, which may include appropriate attorney's fees. 
Answer:
 
Subject to Article 45 (2) of the Agreement on TRI PS the judicial authorities shall also have the 
authority to order the infringer to pay the right  holder expenses, which may include appropriate 
attorney's fees.  In appropriate cases, Members may authorize the judicial authorities to order recovery 
of profits and/or payment of pre-established dama ges even where the infringer did not knowingly, or 
with reasonable grounds to know, engage in infringing activity. 
Articles 9 and 917 of the Civil Code, which stipulat es that a person whose rights have been violated 
can demand complete recovery of losses, unless otherwise provided by law or contract. The violator 
should provide complete recovery of the damage cau sed by his or her act or omission to the property 
or non-property rights and goods of citizens or legal entities. 
In accordance with Article 111 of the Civil Code , the court can order the unsuccessful party to 
compensate the successful party for his attorneys'  costs in the amount actually incurred by the 
successful party.  In money claims that sum can not exceed 10 per cent of the cost of the claim 
sustained.  In a case where the legal support is fre e for the party, the court can order the unsuccessful 
party to pay the mentioned costs to the legal aid ag ency which appointed the lawyer or to the lawyer. 
The provisions of the existing laws of Kazakhstan meet the requirements of Article 45 (2) of the 
TRIPS Agreement. 
Question 153 
Please explain whether the law of the Republic of Kazakhstan provides for the recovery of 
profits and/or pre-established da mages under TRIPS Article 45(2). 
Answer:  
Subject to Article 45 (2) of the Agreement on TRI PS the judicial authorities shall also have the 
authority to order the infringer to pay the right  holder expenses, which may include appropriate 
attorney's fees.  In appropriate cases, Members may authorize the judicial authorities to order recovery 
of profits and/or payment of pre-established dama ges even where the infringer did not knowingly, or 
with reasonable grounds to know, engage in infringing activity. 
Article 917 of the Civil Code of the Republic of  Kazakhstan provides that (property and/or non-
property) damage to the property or non-property ri ghts and goods of citizens and legal entities caused 
by unlawful acts or inaction shall be compensated by the wrongdoer in corpore. WT/ACC/KAZ/57 
Page 112  
 
 Under the laws of the Republic of Kazakhstan th e compensation liability may be imposed on other 
party, which is not the wrongdoer, as well as hi gher compensation amount may be set,  which meets 
the requirements of Article 45 (2) of the Agreement on TRIPS. 
Question 154 
Please explain whether the law of the Republic of  Kazakhstan provides judicial authorities with 
the authority to order goods found to be infringing and materials and implements- the 
predominant use of which has been in the creation  of the infringing goods to be disposed of 
outside the channels of commerce in a manner to avoid harm to the right holder under TRIPS 
Article 46. 
Answer:
 
Subject to Article 46 of the Agreement on TRIPS in order to create an effective deterrent to 
infringement, the judicial authorities shall have the authority to order that goods that they have found to be infringing be, without compensation of any sort , disposed of outside the channels of commerce 
in such a manner as to avoid any harm caused to the right holder, or, unless this would be contrary to 
existing constitutional requirements, destroyed.  The judicial authorities shall also have the authority 
to order that materials and implements the predomin ant use of which has been in the creation of the 
infringing goods be, without compensation of any sort , disposed of outside the channels of commerce 
in such a manner as to minimize the risks of further infringements.  
Article 44 of the Law of the Republic of Kazakhsta n "On Trademarks, Service Marks, and Indications 
of Places of Goods Origin", for instance, provides that a person illegally using a trademark or an 
indication of a place of goods origin or any sim ilar designation in a manner which misleads the public 
shall do the following: 
1. discontinue the violation and compensate th e losses incurred by the right holder of the 
trademark and the holder of the geographical indication; and 
2.  liquidate the manufactured images of the trademark or the geographical indication in 
question, delete them from the good, packing,  blanks or other doc umentation unlawfully 
bearing the trademark or geographical indication of the origin of the good as well as any 
designation similar to the extent of misleading th e public.  If it is impossible to do so, all such 
goods must be liquidated in accordance with the procedures established by the laws of the Republic of Kazakhstan. 
In cases on copyright violation the court has the righ t to resolve to expropriate the pirated copies of 
the work or phonogram, as well as  the materials and equipment used for their production.  In doing so 
the pirated copies of the work of phonogram can be  transferred to the holder of the copyright or 
related rights upon his/her request or shall be liquida ted by the resolution of the court (paragraph 3 of 
Article 49 of the Law of the Republic of K azakhstan "On Copyright and Related Rights"). 
The materials and equipment used for production of  infringing merchandise shall be also liquidated 
by the court's resolution or shall be  transferred to the state revenues. 
Article 129 of the Administrative Code of the Republ ic of Kazakhstan also provides for expropriation 
of the pirated copies of works and phonograms. 
Therefore, the provisions of the existing laws of Kazakhstan meet the requirements of Article 46 of 
the TRIPS Agreement.  WT/ACC/KAZ/57 
 Page 113 
 
 
 Question 155 
Please explain the manner in which the law of the Republic of Kazakhstan complies with TRIPS 
Article 48 requiring that judicial authorities shall have the authority to order a party at whose request measures were taken and who has abused enforcement procedures to provide to a party 
wrongfully enjoined or restrained adequate co mpensation for the injury suffered because of 
such abuse. 
Answer:
 
Subject to Article 48 of the TRIPS Agreement the judicial authorities shall have the authority to order 
a party at whose request measures were taken and who has abused enforcement procedures to provide 
to a party wrongfully enjoined or restrained adequa te compensation for the injury suffered because of 
such abuse.  The judicial authorities shall also ha ve the authority to order the applicant to pay the 
defendant expenses, which may incl ude appropriate attorney's fees. 
Article 917 of the Civil Code of the Republic of  Kazakhstan provides that (property and/or non-
property) damage to the property or non-property ri ghts and goods of citizens and legal entities caused 
by unlawful acts or inaction shall be compensate d by the wrongdoer in corpore, which meets the 
requirements of Article 48 of the Agreement on TRIPS.  
Under the laws of the Republic of Kazakhstan th e compensation liability may be imposed on other 
party, which is not the wrongdoer, as well as higher compensation amount may be set. 
The wrongdoer can be released from the compensation obligation if he/her proves that the damage 
was not his/her guilt, except for the cases stipulated in  the Civil Code of the Republic of Kazakhstan. 
Question 156 
Please explain the manner in which the law of the Republic of Kazakhstan complies with TRIPS 
Article 50 relating to provisional measures and pr oviding judicial authorities the authority to 
adopt provisional measures ex parte. 
Answer:  
Subject to Article 5 of the Agreement on TRIPS the judicial authorities shall have the authority to 
order prompt and effective provisional measures to  prevent an infringement of any intellectual 
property right from occurring, and to preserve relevant  evidence in regard to the alleged infringement. 
Article 158 of the Civil Code of the Republic of K azakhstan provides that upon the request of parties 
involved in the process the court can take measures to executive the claim resolution. Execution of the 
claim resolution is allowable in any situation when  omission of such measures might hinder or make 
impossible executing the court's resolution.  
The following can be the measures to  execute the court's resolution: 
- sequestration of respondent's property in hi s/her possession or in possession of other entities 
(except for the bank accounts); 
- prohibit the respondent from making certain actions; 
- prohibit other persons from transferring proper ty or fulfilling other obligations to the 
respondent; 
- suspend sales of property in case of fili ng a claim to cancel the sequestration; 
- suspend the effect of a legal act in question i ssued by a governmental body, organization or an 
official; and WT/ACC/KAZ/57 
Page 114  
 
 - suspend a penalty imposed by an executive docum ent contested by the debtor in the court. 
If needed, the court may take other measures to secu re the claim. The court may take several such 
measures at one time. The violators of the prohi bitions imposed under subpa ragraph (2) and (3) of 
Article 158 of the Civil Code of the Republic of Kazakhstan shall be subject to the administrative 
responsibility.  Besides, the claimant has the right  to claim such persons to pay indemnity for the 
losses caused by the failure to execute  the resolution to secure the claim. 
In accordance with paragraph 2 of Article 49 of the Law of the Republic of Kazakhstan "On 
Copyright and Related Rights" the judge has the right to resolve to prohibit the defendant from manufacturing, reproduction, sales, and use of pirated copies of the works and phonograms in question before the investigation.  The judge also can make a resolution on sequestration and 
expropriation of all copies of works and phonograms in  question (suspected to be pirated copies) as 
well as materials and equipment designate d for their production and reproduction. 
Therefore, the provisions of the existing laws of Kazakhstan meet the requirements of Article 50 of 
the TRIPS Agreement. 
- Provisional measures 
Question 157 
TRIPS Article 50(2) provides that members are obligated to provide judicial authorities the 
authority to grant provisional measures ex parte.  Under Article 61 members shall provide for criminal procedures and penalties to be applied at least in cases of wilful copyright piracy on a 
commercial scale.  Please indicate how the Repub lic of Kazakhstan provides for such ex parte 
relief in civil cases and criminal procedures and penalties.   
Answer:
 
Subject to Article 50 (2) of the Agreement on TRIPS th e judicial authorities shall have the authority to 
adopt provisional measures inaudita altera parte where appropriate, in  particular where any delay is 
likely to cause irreparable harm to the right holder, or where there is a demonstrable risk of evidence 
being destroyed. 
Subject to Article 61 of the TRIPS Agreement Me mbers shall provide for criminal procedures and 
penalties to be applied at least in cases of wilful trademark counterfeiting or copyright piracy on a commercial scale. 
Civil legislation of the Republic of Kazakhstan and the Law "On Copyright and Related Rights," 
implementing provisions of Article 50 of the WT O TRIPS Agreement, provides judges with the 
power to take the following measures at the requ est of the claimant or upon their own initiative: 
- to arrest the defendant's property; 
- to prohibit a defendant from taking certain  actions including sale of goods bearing a 
trademark belonging to the complainant;  
- to prohibit other persons from transferring prope rty to the defendant or from fulfilling other 
commitments with regard to the defendant;  
- to suspend sales of property in case of a suit to free the property from seizure; 
- to suspend a contested act issued by a governmental body, organization or official person; and 
- to suspend recovery made in accordance with an  executive document, if the debtor contested 
this document.   WT/ACC/KAZ/57 
 Page 115 
 
 
 In accordance with Article 184 of the Criminal C ode of the Republic of Kazakhstan provides for a 
fine in the amount of one to five hundred of monthly calculation indices, or in the amount of the wages or other income of a convict for the period fro m one to five months, or for public works for the 
period from one hundred eighty to two hundred forty h ours, or for imprisonment for up to two years 
for the following: illegal use of objects under copyright  or related rights, as well as illegal use of an 
invention, utility model or industrial design, una uthorized disclosure of the essence of a scientific 
discovery, invention, utility model or industrial d esign without the author's permission before the 
official publication of information about them, as  well as assuming the authorship for one's own or 
forcing for co-authorship, if su ch deeds were made with the purpose to benefit and caused a 
significant damage.  
The punishment for illegal acts stipulated in part one of Article 184 of the Criminal Code of the 
Republic of Kazakhstan shall be a fine in the amou nt of five to eight hundred monthly calculation 
indices, or in the amount of the wages or other inco me of a convict for the period from five to nine 
months, or detention from four to six months, or im prisonment for up to five years with or without 
deprivation of property, if the said acts were co mmitted either more than once, or by a group of 
persons by a previous concert, or by an organized group. 
The provisions of the existing laws of Kazakhstan m eet the provisions of Article 50 (2) and 61 of the 
TRIPS Agreement. 
Question 158 
Questions 215, 216:  Please confirm whether the re is no legal obligation by law to inform the 
alleged infringer about the decision on taken measures prior such decision is executed. 
According to Article 50.2 of TRIPS, we draw the attention to this aspect as in certain 
infringements of intellectual property rights it is essential to ensure the preservation of evidence, which can be eliminated in a few second s if the infringer is informed prior about the 
supposed measures against him.    
Answer:
 
The laws of Kazakhstan have no re quirement to prevent an imminent infringement in respect of 
intellectual property. Subject to Article 638 of the Administrative Code of the Republic of Kazakhstan 
a report on administrative infringement must be made immediately after eliciting a fact of such an 
administrative infringement, and subject to paragra ph 1 of Article 640 of the Administrative Code of 
the Republic of Kazakhstan the report shall be subm itted to the court or the authorized body within 
one day for the trial. 
- Special border measures Question 159 With regard to border measures, Articles 51-59 provi de for obligations of members relating to 
effective border enforcement.  Can a copy of the draft Code Customs be provided? 
Answer:
 
Kazakhstan provided the text of the Customs Code of the Republic of Kazakhstan as of 5 April 2003 
in document WT/ACC/KAZ/39 (03-0062) and Rev.1. 
The existing Customs Code of Kazakhstan incl udes section 10, which regulates the intellectual 
property rights protection aspects by the customs bodies. WT/ACC/KAZ/57 
Page 116  
 
 This section contains provisions for the protectio n of rights for intellectual property by customs 
bodies as well as specific details of customs treatm ent and customs control of intellectual property 
goods. 
Question 160 
The response relating to border measures and the ability of rights holders to inspect detained 
merchandise under TRIPS Article 57 and obtain in formation does not clearly indicate that the 
right holder may inspect detained goods or pr ovided information regarding the importer.  
Please clarify.  If current law does not provide  for these actions, are amendments to the law 
contemplated? 
Answer:
 
Subject to Article 57 of the Agreement on TRIPS wi thout prejudice to the protection of confidential 
information, Members shall provide the competent authorities the authority to give the right holder 
sufficient opportunity to have any goods detained by the customs authorities inspected in order to 
substantiate the right holder's claims.  The competent authorities shall also have authority to give the 
importer an equivalent opp ortunity to have any such goods insp ected.  Where a positive determination 
has been made on the merits of a case, Members ma y provide the competent authorities the authority 
to inform the right holder of the names and addresses  of the consignor, the importer and the consignee 
and of the quantity of the goods in question. 
Subject to Article 418 of the Customs Code of the Republic of Kazakhstan the customs body entitles 
the applicant and applicant's representatives with the right to make samples of goods under customs 
control in respect of which it was resolved to su spend the release because of counterfeit suspicion and 
to make an investigation. At that, besides informing the applicant on the elicited signs of 
infringement, the customs body also reports the decl arant's name and address (Article 416 of the 
Customs Code of the Republic of Kazakhstan). 
These provisions of the customs legislation of Kazakhstan meet Article 57 of the TRIPS Agreement. 
Question 161 
Question 91 in WT/ACC/KAZ/37/Add.3:  Please clarify whether under the current or draft 
Customs Code, enforcement action will be taken rel ating to the exportation of infringing goods 
or the in transit movement of such goods. 
Answer:  
The existing Customs Code of Kazakhstan incl udes section 10, which regulates the intellectual 
property rights protection aspects by the customs bodies. 
This section contains provisions for the protectio n of rights for intellectual property by customs 
bodies (chapter 52 of the Customs Code, Articles 410-414) as well as specific details of customs 
treatment and customs control of intellectual pr operty goods (chapter 53 of the Customs Code, 
Articles 415-420).  WT/ACC/KAZ/57 
 Page 117 
 
 
 - Criminal procedures 
Question 162 Please explain the provisions under the law of th e Republic of Kazakhstan relating to criminal 
procedures and penalties for wilful trademark counterfeiting. 
Answer:
 
Under Article 199 of the Criminal Code illegal u se of a trademark, service mark, firm name, 
appellation of origin or other d esignations of goods (services) for the related goods or services can 
result in the following if the action was performed repeatedly and resulted in severe damages: fines 
equal to 200-500 monthly calculation indices, or to the amount of wages or other  income received by the convicted party for a period of two to five months; public works for 180 to 240 hours; detention 
for up to six months; or a prison term of up to two years. 
Illegal use of special marking with respect to tradem arks and appellations of origin not registered in 
Kazakhstan can result in the following if the action was performed repeatedly and resulted in severe 
damages:  fines equal to 100-200 monthly calculation indices, or to the amount of wages or other income received by the convicted party for up to two months; public works for 120 to 180 hours; 
detention for up to three months; or a prison term of up to one year. 
Question 163 
In addition, penalties for copyright piracy may not be adequate to co mpensate the copyright 
holder for injuries suffered as the result of in fringement as required under TRIPS Article 45.  
Copyright reform (as discussed be low) to address these longstanding  deficiencies has been slow. 
Kazakhstan has been urged to increase the penalt ies for copyright piracy and impose penalties 
that are "sufficient" to act as an effective de terrent to potential pirates and counterfeiters.  
Kazakhstan responded that current penalti es are "sufficiently strict" (Item 217, 
WT/ACC/SPEC/KAZ/8). Does Kazakhstan's response mean that its current remedies are serving as an "effective deterrent" against widesp read copyright piracy?  If so, please provide 
evidence of the deterrent effect. 
Answer:
 
The draft Law on Amendments and A ddenda to the Criminal and Admi nistrative Laws of Kazakhstan 
as of 2004 aims to reinforce the responsibility for infringement of intellectual property rights. The 
draft law entitles the Criminal Code with more sanctions to punish recurrent infringement of 
copyright or other rights and provides sanctions for administrative infringements. 
Besides, if the proposed revision of the Criminal C ode is adopted, there will be no need to prove the 
amount of losses incurred or lost by the right holde r, because a large quantity of suspended counterfeit 
goods (not the amount of damage) will suffi ce to start a criminal investigation. 
Question 164 
In paragraph 279 it is mentioned that preparat ions to make amendments and addenda to the 
existing administrative and criminal legislatio n were in place to reinforce the penalties for 
violations of intellectual property.  We would welcome to receive a draft of these amendments. WT/ACC/KAZ/57 
Page 118  
 
 Answer:
 
The draft Law of the Republic of Kazakhstan "On Am endments and Addenda to the Legal Acts of the 
Republic of Kazakhstan on Inte llectual Property Rights" aiming change the criminal and 
administrative laws of Kazakhstan as to reinforce the responsibility for infringement of intellectual 
property rights was developed and submitted to the Government of Kazakhstan for approval in 2004. 
A copy of the text of this draft Law is available from the Secretariat through document 
WT/ACC/KAZ/57/Add.1. 
POLICIES AFFECTING TRADE IN SERVICES 
Question 165 Paragraph 283:  Could Kazakhstan provide updated information concerning the current 
situation in the telecommunication sector. A ccording to information available to us, on 
2 September 2004, the Government of Kazakhstan eliminated the exclusive rights of KazakhTeleCom for the provision of international and long-distance communication. At the same time, KazakhTelecom noted that it will take part in the tender for the acquisition of 18.6 per cent shares of the telecommunication co mpany "Nursat".  Taking into consideration 
that 41.25 per cent of "Nursat" shares already belong to KazakhTeleCom, after the acquisition 
of this additional package of shares, KazakhTel eCom would have exclusive rights for providing 
international and long-distan ce telecommunication services in Kazakhstan. This could 
effectively create a state-owned monopoly in telecommunication sector.  
Answer:
 
"Kazakhtelecom" JSC did take part in the bids tender for 18.6 per cent of shares of "Nursat" 
telecommunication company, which does not contradict the antimonopoly laws of the Republic of 
Kazakhstan. According to our information "Telecom Service" company won the tender. 
Question 166 
Please provide the Working Party with updated in formation on Kazakhstan's national security 
legislation. We understand that this legislation has been amended regarding security in the 
Communications sector. 
Answer:  
On 5 July 2004 Kazakhstan adopted Law No. 568 "O n Amendments and Addenda  to Legal Acts of 
the Republic of Kazakhstan on Communication", whic h provides that foreigners, persons without a 
citizenship and foreign legal entities cannot directly and/or indirectly own, use, dispose of, and/or 
manage over 49 per cent in total of voting shares of  a telecommunication legal entity operating as an 
operator of long distance or international co mmunication possessing communication land lines (cable 
lines, including fibre optic and radio).  This limitatio n does not apply to operators of mobile, satellite 
and local communication. 
Transparency 
Question 167 
Where does Kazakhstan provide for publication of administrative rulings of general 
application, e.g., customs rulings?  WT/ACC/KAZ/57 
 Page 119 
 
 
 Answer:  
In general, the Law "On Regulatory Legal Acts " of 24 March 1998 regulates the procedures for the 
publication and interpretation of regulatory legal acts as well as  preparing comments thereto and 
participation in the discussion of draft regulatory legal acts. 
In accordance with Article 46 of the mentione d Law, the governmental bodies adopting regulatory 
legal acts shall keep account of a nd systemize such acts, have control copies of their adopted acts and 
timely make all amendments and addenda to the acts. 
The governmental bodies periodically issue collections of  their regulatory legal acts or delegate this to 
the subordinate governmental bodies and organizations. 
Moreover, in accordance with Article 33 of the me ntioned law the central governmental bodies make 
official publications in official periodicals only distributed in the entire territory of the Republic of 
Kazakhstan.  
The following are the official pe riodicals:  the Bulletin of the Parliament of the Republic of 
Kazakhstan and the Collection of Acts by Presi dent of the Republic of Kazakhstan and the 
Government of the Republic of Kazakhstan. 
Other periodicals can make official publications too, if they obtain the right for this at a tender under 
the procedures defined by the Governme nt of the Republic of Kazakhstan. 
The other printed media can only make subsequent official publications of regulatory legal acts in 
accordance with the procedure estab lished by the Government of the Republic of Kazakhstan, 
provided that the texts have been proved the authenticity by comparing with the control reference bank of regulatory legal acts of the Republic of Kazakhstan. 
Law-enforcement practice provides for the use of o fficial publications of regulatory and legal acts 
only. Informal publishing of regulatory legal acts is only allowed after their official publication. 
The Customs Control Agency pu blishes the following information on its official web-site 
"www.сustoms.kz": structure and functions of the Cu stoms Control Agency and other customs bodies, 
the legislation of the Republic of Kazakhstan, in cluding Laws, Presidential Decrees, Governmental 
Resolutions,  Orders of the Customs Control Agency  (administrative decisions), Instructions of the 
Customs Control Agency (administrative decisions),  Joint Orders of the Customs Control Agency, 
Explanations of the Customs Control Agency, foreign trade statistics, foreign relations of the Customs 
Control Agency, history of the Customs Control Agency. 
Question 168 
Where does Kazakhstan provide for publication of regulations and other legal instruments for 
review and comment prior to enactment? 
Answer:
 
In accordance with Article 14 of the Law "On Re gulatory Legal Acts" the governmental bodies may 
involve experts in various disciplines, scientific organizations and scientists (by creating advisory 
boards both at the developing body and at the Govern ment of the Republic of Kazakhstan) into the 
development of draft regulatory legal acts. WT/ACC/KAZ/57 
Page 120  
 
 Besides, in accordance with Article 13 of the sai d Law other governmental and non-governmental 
organizations and entities not involved in the devel opment of a regulatory legal act have the right to 
make suggestions on their devel opment or submit the initiated drafts to the examination of the 
authorized bodies. 
Drafts of especially important legal acts can be prel iminary published in the official periodicals for the 
public to read it and make comments (the Tax Code and the Civil Code were developed according to 
this practice). 
Question 169 
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 be extended to other 
areas in the establishment of a regulatory review mechanism of general application? 
Answer:
 
In accordance with paragraph 2 of Article 10 of th e Law "On Technical Regulation" information on 
the existing and pending drafts of technical regula tions, standards, conformity assessment procedures, 
international agreements on standardization, co nformity recognition, bilateral and multilateral 
recognition will be published in the official peri odical of the authorized body and in the public 
information system (on the web-site of the authorized body). 
Trade Agreements 
Question 170 Much more information on the scope and conten t of Kazakhstan's bilateral and plurilateral 
preferential trade agreements should be provi ded in this section, covering inter alia: 
(a) FTAs with the CIS and other countries;  
(b)  the customs union with Russia, Belarus, Kyrgys Republic and Tajikistan;  (c) the Eurasian Economic Community; and  (d) the Common Economic Space Agreement  with Russia, Ukraine, and Belarus. 
Any protocols or agreements within these agreements that cover WTO issues, e.g., safeguards, 
TBT 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:
 
(a) The trade and economic relations among Kazakhstan and CIS c ountries (Azerbaijan, 
Armenia, Belarus, Georgia, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkme nistan, Uzbekistan, and 
the Ukraine) are based on multilateral and bilateral Agreements.  
Being parties to the Eurasian Economic Community , Belarus, Kazakhstan, Kyrgyzstan, Russia, and 
Tajikistan provide each other with the free trad e regime without exceptions and limitations. 
At that Kazakhstan and Turkmenistan has no bilate ral agreement on free trade, that is why the goods 
imported to Kazakhstan from Turkmenistan are subject to customs duties.  WT/ACC/KAZ/57 
 Page 121 
 
 
 As for the other six CIS countries, Kazakhstan has bilateral agreements on free trade with each of 
them. 
Under the mentioned agreements the goods orig inating from the CIS countries and imported to 
Kazakhstan from their territory are exempted from customs duties, except for certain goods, the list of 
which makes exception from the free trade regime. 
In accordance with the Agreement on Creation of the Free Trade Zone as of 15 April 1994, the Parties 
are developing and coordinating the List of Exceptions from the Free Trade Regime as well as the methods of application and phase-by-phase eliminati on of such exceptions before the creation of the 
free trade zone. 
Before the approval of the common List of Exceptio ns from the Free Trade Regime the Parties make 
protocols to bilateral agreements on free trade. 
The goods included into the List of Goods Excluded from the Free Trade Regime in the mutual trade 
among Parties are subject to customs duties, taxes, and levies in accordance with the national laws of 
the Parties (the list of goods is enclosed). 
The mentioned lists of such goods mainly comprise  excise products (certain kinds of alcoholic and 
tobacco products). 
In the framework of the Eurasian Economic Comm unity they approved the Single List of Exceptions 
for the Free Trade Regime of the EurAsEC Members with the CIS countries that are not Members to 
the EurAsEC, and the Single Schedule on Exceptions Elimination. 
In accordance with the said Schedule the Parties are developing protocols on  phasing out the existing 
exceptions from the free trad e regime on the goods included into the Single List, and the Parties have 
the right to set their own terms of elimination of exceptions on the goods not included into the Single 
List. 
Taking into account that the free trade regime a pplies to the goods originating from the customs 
territory of the CIS countries with destination in th e customs territory of the CIS countries, the origin 
of goods is confirmed with the certificate of origin  in accordance with the Rules on Determination of 
the Country of Origin of Goods being an indispen sable part of the Agreement on the Free Trade Zone. 
(b) In accordance with the Agreement on Cu stoms Union and Single Economic Area as of 
26 February 1999, Belarus, Kazakhstan, Kyrgy zstan, Russia, and Tajikistan ensure full 
implementation of the free trade regime wit hout exceptions and limitations, under the existing 
bilateral and multilateral Agreements on Free Trade. 
The Agreement aims to complete the formation of the customs union and creation of the Single 
Economic Area. 
The Agreement's provisions regulate the trade in goods and services as well as the capital flow. At 
that the Agreement provides for application of no tariff and quantitative limitations on mutual trade 
except for the measures to protect national mark ets, permitted by the WTO provisions and rules. 
(c) The Customs Union of Belarus, Kazakhstan,  Kyrgyzstan, Russia, and Tajikistan made in 
1999 with the purpose to enhance efficient formation of the Single Economic Area with help of new, 
prospective forms and mechanisms of interaction,  and through achievement of common benefits and 
national interests by mutual efforts, was further reorganized into the Eurasian Economic Community 
in 2000 (the Agreement on Creation of EurAsEC as of 10 October 2000). WT/ACC/KAZ/57 
Page 122  
 
 (d) On 23 February 2003 Presidents of Belarus,  Kazakhstan, Russia, and the Ukraine signed the 
Agreement on formation of the Single Economic Area (SEA). 
The SEA formation aims to create the environment for the stable and efficient development of the 
Parties' economies, to improve the standard of  life of population, to encourage the trade and 
investments flows among the Parties on the basis of the commonly accepted principles and norms of 
international laws as well as the WTO rules and principles. 
At present the SEA Members are working on the deve lopment of the package of international legal 
documents to be put into the basis of the SEA form ation and functioning. Taking into account the fact 
that all SEA Members are negotiating on accession to  the WTO, compliance with the WTO rules and 
provisions is the main requirement to the devel opment of the said international legal documents. 
For coordinated application of special protec tive, antidumping and compensation measures to 
importation of goods in the mutual trade and in  trade with third party countries, the EurAsEC 
Members made the Protocol on the Mechanism of  Application of Special, Protective, Antidumping 
and Compensation Measures in the tr ade with Customs Union Members. 
The Protocol defines the common procedure for a pplication of the mentioned measures both in the 
mutual trade and in the trade with other countries. 
The Protocol on the Single Procedure for Applic ation of Technical, Medicine, Pharmaceutical, 
Sanitary, Phytosanitary, and Environmental Standa rds, Regulations, Rules and Requirements to the 
Goods imported to the Customs Union Members (28 January 1999) regulates application of measures 
necessary for the protection of life and health of human, animals, plants and to protect the environment. 
The Protocol sets forth the single procedure for app lication of standards and requirements to the goods 
imported to the territory of the Parties, including the complex of measures and rules aimed to reveal, 
prevent and stop violations of the procedure fo r importation of certain goods, for which there are 
uniform standards and requirements. 
At the same time, the EurAsEC Members are working on changing national legislations on 
standardization and certification, because of the tran sition to the technical regulation system and its 
harmonization with the WTO Agreements. In the view of this they are working on the changes in the 
above mentioned Protocol in the framework of th e work of the Commission on Technical Regulation, 
Sanitary, Veterinary, and Phytosanitary Measures in Trade at the EurAsEC Integration Committee. 
To ensure free circulation of goods in the terr itory of the EurAsEC Members by elimination of 
technical barriers to trade with the community pa rties, they developed the draft Agreement on the 
Fundamentals of Harmonization of Technical  Regulations of the EurAsEC Members. 
The draft Agreement defines the development proce dure, mechanism and scope of adoption of single 
technical regulations in the framework of the EurA sEC.  At that, during consideration of the draft 
Agreement the parties have analyzed the conformi ty of their national legislations with the WTO 
Agreement on Technical Barriers to Trade.  
  WT/ACC/KAZ/57
 Page 123ANNEX 1 
Changes Made in the Capital Transactions by the Dr aft Law "On Currency Regulation and Currency Control"  
 
Currency transaction description Cu rrent regime Regime before 20072 Regime after 2007 Note 
1 2 3 4 5 
Concerning the currently licensed operations 
1. Residents open accounts 
(including accounts in the 
national currency of the 
Republic of Kazakhstan) in foreign banks and other 
financial organizations 
 To be licensed except for cases when:  
 
- banks open accounts;  
- natural persons open accounts in banks 
of OECD with rating "A" ("Fitch", 
"Standard & Poor's") or "A2" 
("Moody's Investors Service") and 
higher; as well as persons temporary 
staying abroad open accounts for work, 
study, medical treatment; or 
- vacation/recreation purposes. 
 To be licensed except for the following cases: 
 
1. banks open accounts; 
2. resident financia l organizations open 
accounts for transactions with financial 
instruments at the international 
securities market; 
3. resident legal entities open accounts to 
finance expenses of their branches and 
representative offices (see note); 
4. resident legal entities open accounts to 
pay money necessary to form the 
charter capital of a legal entity if such 
was required under the laws of a 
foreign state where the legal entity was 
to be formed; 
5. resident legal entities open accounts to 
pay money to fulfil liabilities of 
residents to non-residents by the loans 
obtained from the non-residents; or 
6. natural persons ope n accounts in banks 
in the territory of OECD countries and 
in banks in other foreign countries 
during such person's staying in those 
countries. Notify NBK (National Bank 
of Kazakhstan) on opening 
an account in a foreign bank 
within 30 days since conclusion of the agreement 
with a foreign bank or since 
the day of returning to 
Kazakhstan (for natural 
persons) As for the exception from 
the licensing regime 
specified in par. (3) of 
column 3 herein, before 2007 registration will be 
required, which will be 
changed for the notification 
regime, and as for par. (2), 
(4)-(6), the notification 
regime will be effective 
since the day of 
enforcement of the Law 
2. Residents make foreign 
investments 
 To be licensed except for the following cases: 
 
1. dealer operat ions of banks; 
2. residents' investments in securities of 
international financial organizations; 
3. residents' investme nts in foreign shares 
and other securities when the issuer or 
the shares/securities have the rating 
specified in par. 1 above and provided 
that the investments were made through 
Kazakh brokerage houses and dealer 
organizations; 1.  All direct inve stments (i.e. when 
residents purchase shares or contribute 
capital into the charter capital of a non-resident legal entity and such a resident 
will have 10 and more % of voting 
share or votes in the invested entity) 
will require registration. 
2.  Portfolio inves tments (when residents 
purchase shares, securities, shares of 
non-residents, purchase shares of non-
resident investment funds or contribute 
capital into the charter capital of a non-1. Direct investments 
still require 
registration. 
2. Portfolio investments 
will require a 
notification.  
 Banks and professional 
operators will make 
notifications on the investments (either their or 
on the behalf of clients) in 
the framework of their 
regular payment balance 
accountability by providing 
certain details of the 
transactions made (e.g., 
name of resident client and 
non-resident invested 
                                                      
2 This regime will be effective since the day of enforcement of  the new law "On Currency Regulation and Currency Control" until 31 December 2006  
 WT/ACC/KAZ/57 
Page 124 Currency transaction description Cu rrent regime Regime before 20072 Regime after 2007 Note 
1 2 3 4 5 
4. investments into the charter capital of 
legal entities of OECD countries and/or 
countries with which Kazakhstan has 
ratified treaties/agreements on mutual 
encouragement and protection of 
investments that guarantee that the 
resident will have 50 and more percent 
of voting shares (votes) in the invested 
entity (registration regime); or 
5. investments into non-residents' 
securities on the account of pension 
funds. resident legal entity as well as 
transactions with derivative financial 
instruments) will be licensed except for 
the cases when the resident is a bank, 
insurance organization or an 
organization maki ng investment 
management of pension funds (if it 
invests pension funds). 
 
In doing so, professional participants of the 
equity market (not banks or pension funds 
managers) will obtain the operation license 
for portfolio investments that entitles them 
with the right to make all such 
transactions/operations on the account of both 
its own and clients' funds. 
 
Therefore the existing requirement to obtain a 
one-time license (i.e. the license for each 
separate transaction) will only be valid in 
cases where resident legal entities (except for the ones specified above) and natural persons 
make portfolio inve stments bypassing 
Kazakh professional participants. entity)  
3. Residents make money 
transfers to purchase (rent) 
real estate from a non-
resident To be licensed Residents' payments for the purchase of real 
estate from non-residents will require 
registration  Residents' payments for the 
purchase of real estate from 
non-residents will require a 
notification Rent payments will be 
regulated as commercial 
credits 
4. Residents pay in advance for 
import of goods (services) as 
well as receive proceeds from 
the payment for export in the period over 180 days (365 
days for the export of certain 
goods) To be licensed as capital transactions To be licensed as commercial credits granted 
by residents to non-residents for the period 
over 180 days Registration will still be 
required The law defines commercial 
credits as allowing to 
postpone a payment 
/delivery by a supplier and buyer, which conform to the 
payment balance term 
"trade credit" 
5. Residents grant loans to non-
residents for the period over 
180 days 
 To be licensed except for bank loans To be registered as financial loans Registration will still be 
required The law gives a definition 
of financial loans, which 
conforms to the meaning of 
the payment balance term 
"loans"  
  WT/ACC/KAZ/57
 Page 125Currency transaction description Cu rrent regime Regime before 20072 Regime after 2007 Note 
1 2 3 4 5 
6. Foreign currency obtained by 
a resident as a credit from a 
non-resident is transferred to 
accounts of third parties 
 
 To be licensed except for: 
 
1. state loans and government guaranteed 
loans; 
2. unwarranted loans from foreign banks 
providing for the use of documentary 
forms of accounts settlement; 
3. credits obtained by residents to finance 
export-import deals insured in foreign 
agencies on export loans (find the list 
enclosed); or 
4. credits where a non-resident third party 
pays for the import contract, for which 
the deal certificate was issued Neither of the regime s applies (licensing, 
registration, notification)   
 Neither of the regimes 
applies (licensing, 
registration, notification) 
 The necessary statistical 
data will be obtained from 
reports on registration of 
credits (financial loans) 
obtained  
 
7. A resident transfers currency 
values to a non-resident for 
the asset management To be licensed  To be regulated as portfolio investments It will be regulated as 
portfolio investments The draft laws does not put 
it as a separate transaction 
(operations) 
8. Residents' investments into 
the charter capital of legal 
entities of OECD countries 
and/or countries with which 
Kazakhstan has ratified 
treaties/agreements on mutual 
encouragement and 
protection of investments that 
guarantee that the resident 
will have 50 and more 
percent of voting shares 
(votes) in the invested entity Exception from the licensing requirement 
(see sub-par. 4 of par. 2 above). To be 
registered as direct investments. To be registered as direct investments It will still require 
registration The law gives the definition 
of term "direct 
investments", which 
conforms to sub-par. 1 of 
column 2 of par.2 herein 
9. Natural persons open 
accounts in foreign banks in 
the territory of OECD 
countries with the rating as 
specified in par.1 above Exception from the licensing requirement 
(see par.1 above). 
To be registered except for the cases where 
resident persons temporary staying abroad 
open accounts for work, study, medical 
treatment or vacati on/recreation purposes Notification required regardless of the rating 
of the OECD country (see also par.1 above) Notification (see par.1 
above)   
10. Obtaining a credit from a 
non-resident for the period 
over 180 days, including 
financial leasing 
 To be registered except for agreements on 
external state loan and government 
guaranteed loans as well as transactions 
there-under To be registered as financial loans  
 To be registered as financial 
loans  
 At present registration is 
required when the amount 
of a credit agreement 
(and/or resident's actual 
account payable) exceeds 
US$ 100,000 equivalent  
 WT/ACC/KAZ/57 
Page 126 Currency transaction description Cu rrent regime Regime before 20072 Regime after 2007 Note 
1 2 3 4 5 
11. Non-residents credit export-
import contracts (non-
residents prepay for export or 
allow a postponed payment) 
for the period over 180 days To be registered To be registered as commercial credits To be registered as 
commercial credits At present registration is 
required when the amount 
of a credit agreement 
(and/or resident's actual 
account payable) exceeds 
US$ 100,000 equivalent 
12. Non-residents make direct 
and portfolio investments 
into Kazakhstan, including 
primary distribution of residents' equity in 
international capital markets, 
including issuing deposit 
receipts for residents' equity To be registered except for the cases where:  
 
1. non-residents buy securities issued in 
Kazakhstan; 
2. non-residents buy depositary receipts;  
3. non-residents buy residents' equity 
through Kazakh brokerage houses 
(except for investing into the brokerage 
house itself); 
4. residents buy resi dents' equity and 
shares in the charter capital of resident 
legal entities from non-residents; or 
5. reinvestment of non-residents. Direct investments must be registered. 
 
Portfolio investment s (when non-residents 
buy equity of residents,  shares of resident 
investment funds or cont ribute capital into the 
charter capital of a resident legal entity as 
well as make a primary distribution of 
residents' equity in international capital 
markets, including issuing depositary receipts 
for resident's securities) require registration. 
 1. Direct investments 
require registration 
2.  Portfolio investments 
require notification At present registration only 
is required when the 
contract amount (articles of 
incorporation, sale /purchase resolution, etc), 
which is the basis for 
investment, exceeds 
US$ 100,000 equivalent 
13. Non-residents make money 
transfers to pay residents for 
complete transfer of the 
exclusive right for 
intellectual property To be registered 
 To be registered 
 
After the Law becomes effective, purchase of 
the exclusive right for intellectual property by 
residents from non-resident s will also require 
registration 
 To be registered 
 At present registration only 
is required when the 
contract amount exceeds 
US$ 100,000 equivalent 
 
It is always the resident 
who has to register it in the 
NBK 
14. Non-residents pay for the 
property rights for real estate 
except for the property 
qualified as equal to real 
estate 
 To be registered 
 Purchase of real estate by non-residents from 
residents will require registration  Purchase of real estate by 
non-residents from residents 
will require notification Non-residents' payments for 
the rent shall be regulated 
as commercial credits (see 
par.1 above). 
 
At present registration only 
is required when non-
residents purchase real 
estate property for the 
amount exceeding 
US$ 100,000 equivalent 
  WT/ACC/KAZ/57 
 Page 127 
 
 
 ANNEX 2 
List of Priority Types of Activity on the Level of the Classifier of Sub-types of Activity on Which 
Investment Preferences are Granted  
 
No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
01.1 Plant growing 
01.11 Growing of cereals, technical crops and other agricultural crops, 
except for:  
- growing of tobacco and its primary processing: gathering 
and drying of tobacco leaves 
- growing of agricultural crops not entered in other groups 
01.13 Growing of grapes for wine and table grapes 
01.2 Live stock-breeding 
01.21 Cattle breeding, except for: 
 
- manufacture of raw cow milk 
01.24 Breeding of agricultural poultry 
01.25 Breeding of other animals 
01.4 Rendering of services in the field of plant growing 
01.41 Rendering of services in the field of plant growing, except for: 
 
- making, treatment and maintenance of gardens, parks and 
green plantations at sportive units, etc. 
- trimming of trees and hedge-rows 
01.5 Hunting and breeding of game, in particular rendering of 
services in those fields 01 Agriculture 
01.50 Hunting and breeding of game, in particular rendering of 
services in those fields, except for: 
catching of sea mammals such as walruses seals 
02.0 Forestry and forest harvesting operations 
02.01 Forestry and forest harvesting operations, except for: 
 - wood cutting and manufacture of commercial wood such 
as pit props, logs for piles, pales, firewood 
- growing of vegetable materials used for manufacture of 
woven articles 02 Forestry and rendering 
of services in that field 
02.02 Rendering of services in th e field of forestry and forest 
harvesting operations, except for: 
 - rendering of services in th e field of forest harvesting 
operations:  
  - transportation of logs within the forest WT/ACC/KAZ/57 
Page 128  
 
 No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
05.0 Fishery 
05.01 Fishery, except for: 
 - fishery in an ocean, in n earshore and inland waters 
- catching of sea and fresh-w ater crustacea and mollusks 
- catching of water animals: te rrapins, ascidia, Tunicata, sea 
urchins, etc. 
- gathering of sea products: natural pearls, sponges, corals 
and seaweed 
05.0 Fish-breeding 05 Fishery, fish-breeding 
and rendering of services in those fields 
05.02 Fish-breedin g, except for: 
 
- breeding of young oysters, mussels, young lobsters, spiny 
lobsters, shrimps, young fishes 
- growing of red algae and other eatable seaweed, breeding 
of oysters 
15.1 Manufacture of meat and meat foods 
15.12 Manufacture of meat of agricultural poultry and rabbits 
15.13 Manufacture of m eat foods, except for: 
manufacture of ready meat dishes in the public catering system 
15.2 Processing and preservation of fish and fish foods 
15.20 Processing and preservation of fish and fish foods, except for: 
preparation of ready fish dishes 
15.3 Processing and preservation of fruits and vegetables 
15.31 Processing and preservation of potatoes, except for: 
preparation of snacks of potatoes 
15.32 Manufacture of fruit and vegetable juices 
15.33 Processing and preservation of fruits and vegetables not entered 
in other groups 
15.4 Manufacture of vegetable and animal oils and fats 
15.41 Manufacture of non-refined oils and fats 
15.42 Manufacture or refined oils and fats 
15.43 Manufacture of margarine 
15.5 Manufacture of dairy foods 
15.51 Processing of milk and manufacture of cheese 
15.52 Manufacture of ice-cream 
15.6 Manufacture of foods of the flour-milling and cereal industry, 
starches and starch products 
15.61 Manufacture of foods of the flour-milling and cereal industry 
15.62 Manufacture of star ch and starch products 
15.7 Manufacture of read y feedstuffs for animals 
15.71 Manufacture of ready feedst uffs for animals kept at farms 
15.72 Manufacture of ready feed stuffs for domestic animals 
15.8 Manufacture of other foodstuffs 
15.84 Manufacture of cocoa, chocolate and sugar confectionery 
15.87 Manufacture of spices and seasonings 
15.88 Manufacture of baby food and dietetic foodstuffs 15 Manufacture of 
foodstuffs 
15.89 Manufacture of other foodstuffs not entered in other groups 
(soups, meat broth, yeast, egg solids)  WT/ACC/KAZ/57 
 Page 129 
 
 
 No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
17.1 Spinning of textile fibres 
17.11 Spinning of cotton fibres 
17.12 Carding spinning of wool fibres 
17.13 Combing spinning of wool fibres 
17.14 Spinning of flax fibres 
17.15 Manufacture of natural silk , artificial and synthetic fibres 
17.16 Manufacture of sewing threads 
17.17 Preparation and spinning of other textile fibres 
17.2 Weaving industry 
17.21 Manufacture of cotton cloths 
17.22 Manufacture of woollen cloths of fibres of carding spinning 
17.23 Manufacture of woollen cloths of fibres of combing spinning 
17.24 Manufacture of silk cloths 
17.25 Manufacture of other textile cloths 
17.4 Manufacture of ready-made textile articles, except for clothes 
17.40 Manufacture of ready-made textile articles, except for clothes 
17.5 Manufacture of other textile articles 
17.51 Manufacture of carpets and carpet articles 
17.52 Manufacture of cordage, ropes, binder and nets 
17.53 Manufacture of non-woven textile materials and articles of them 
17.54 Manufacture of other textile articles not entered in other groups 
17.6 Manufacture of knitted fabric 
17.60 Manufacture of knitted fabric 
17.7. Manufacture of knitted articles 
17.71 Manufacture of knitted hosiery articles 17 Textile industry 
17.72 Manufacture of knitted pullovers, cardigans and analogous 
articles 
18.1 Manufacture of clothes of leather 
18.10 Manufacture of clothes of leather 
18.2 Manufacture of clothes of textile materials 
18.21 Manufacture of  special clothes 
18.22 Manufacture of outerwear 
18.23 Manufacture of underwear 
18.24 Manufacture of other clothes and accessories 
18.3 Dressing and dyeing of fur; manufacture of fur articles 18 Manufacture of clothes, 
dressing and dyeing of fur 
18.30 Dressing and dyeing of fur; manufacture of fur articles 
19.1 Hardening and finishing of leather 
19.10 Hardening and finishing of leather 
19.2 Manufacture of cases, bags and other articles of leather 
19.20 Manufacture of cases, bags and other articles of leather 
19.3 Manufacture of footwear 19 Manufacture of leather, 
articles of leather and manufacture of 
footwear 
19.30 Manufacture of footwear 
20.2 Manufacture of veneer, plywood, boards and panels 
20.20 Manufacture of veneer, plywood, boards and panels 
20.3 Manufacture of wooden buildi ng structures and joiner's articles 20 Processing of wood 
and manufacture of articles of wood 
20.30 Manufacture of wooden building structures and joiner's articles WT/ACC/KAZ/57 
Page 130  
 
 No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
21.1 Manufacture of pulp, paper and cardboard 
21.11 Manufacture of pulp 
21.12 Manufacture of paper and cardboard 
21.2. Manufacture of articles of paper and cardboard 
21.21 Manufacture of corrugated ca rdboard, paper and cardboard tare 
21.22 Manufacture of paper articles of household and sanitary-
hygienic designation 
21.23 Manufacture of writing paper articles 
21.24 Manufacture of wallpaper 21 Manufacture of pulp, 
paper, cardboard and articles of it 
21.25 Manufacture of other articles of paper and cardboard 
22.2. Printing activity and rendering of services in that field 
22.22 Printing activity not entered in other groups 22 Printing industry and 
rendering of services in 
that field 22.23 Stitching-binding and finishing activity 
23.2 Manufacture of oil products 23 Manufacture of oil 
products 23.20 Manufacture of oil products, except for: 
 
- manufacture of motor fuel: gasoline, kerosene, etc. - manufacture of fuel:  light distillate fuel, middle distillate 
fuel and heavy distillate (diese l) fuel, oil refinery gases 
such as ethane, propane, butane, etc. 
24.1 Manufacture of general chemical matters 
24.11 Manufacture of industrial gases 
24.12 Manufacture of colours and pigments 
24.13 Manufacture of other general inorganic (chemical) matters 
24.14 Manufacture of general organic (chemical) matters, except for: 
 
- manufacture of wood coal, - manufacture of pitch and pitch coke, 
- rectification of coal-tar resin 
24.15 Manufacture of fertilis ers and nitrogen compounds 
24.16 Manufacture of plastics in primary forms 
24.17 Manufacture of synthetic caoutchouc 
24.2 Manufacture of agricu ltural chemical products 
24.20 Manufacture of agricultural chemical products 
24.3 Manufacture of paints and lacquers 
24.30 Manufacture of paints, lacquers and analogous coatings, 
typographic paints and mastics 
24.4 Manufacture of pharmaceutical products 
24.41 Manufacture of genera l pharmaceutical products 
24.42 Manufacture of pharmaceutical  preparations and materials 
24.5 Manufacture of soap and washing, cleansing and polishing 
matters, perfume and cosmetic matters 
24.51 Manufacture of soap and washing, cleansing and polishing 
matters 
24.52 Manufacture of perfume and cosmetic matters 
24.6 Manufacture of other chemical products 
24.61 Manufacture of explosive materials 
24.62 Manufacture of glues and gelatine 
24.63 Manufacture of essences 
24.64 Manufacture of photographic materials 
24.65 Manufacture of ready-made unrecorded carriers of information 
24.66 Manufacture of other chemical products 
24.7 Manufacture of artificial and synthetic fibres 24 Chemical industry 
24.70 Manufacture of artificial and synthetic fibres  WT/ACC/KAZ/57 
 Page 131 
 
 
 No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
25.1 Manufacture of rubber articles 
25.11 Manufacture of rubber tires, cases and tubes 
25.13 Manufacture of other rubber articles 
25.2 Manufacture of plastic articles 
25.21 Manufacture of plastic plates, strips, tubes and profiles 
25.22 Manufacture of plastic articles for package of goods 
25.23 Manufacture of plastic articles used in construction 25 Manufacture of rubber 
and plastic articles 
25.24 Manufacture of other plastic articles 
26.1 Manufacture of glass and articles of glass 
26.11 Manufacture of sheet glass 
26.12 Forming and processing of sheet glass 
26.13 Manufacture of hollow glass articles 
26.14 Manufacture of glass fibre 
26.15 Manufacture and processing of other glass articles 
26.2 Manufacture of ceramic artic les, except for ones used in 
construction 
26.21 Manufacture of household and decorative ceramic articles 
26.22 Manufacture of ceramic  sanitary-technical articles 
26.23 Manufacture of ceramic el ectric insulators and insulating 
accessories 
26.24 Manufacture of other technical ceramic articles 
26.25 Manufacture of other ceramic articles 
26.26 Manufacture of refractory products 
26.3 Manufacture of ceramic tiles and plates 
26.30 Manufacture of ceramic tiles and plates 
26.4 Manufacture of bricks, tiles and other building articles of burnt 
clay 
26.40 Manufacture of bricks, tiles and other building articles of burnt 
clay 
26.5 Manufacture of cement, lime and gypsum 
26.51 Manufacture of cement 
26.52 Manufacture of lime 
26.53 Manufacture of gypsum 
26.6 Manufacture of articles of concrete, gypsum and cement 
26.61 Manufacture of building articles of concrete 
26.62 Manufacture of gypsum articles for use in construction 
26.63 Manufacture of concrete ready for use 
26.64 Manufacture of dry concrete mixtures 
26.65 Manufacture of articles of asbestos cement and fibrous cement 
26.66 Manufacture of other articles of concrete, gypsum and cement 
26.8 Manufacture of other non-metal mineral products 
26.81 Manufacture of abrasive articles 26 Manufacture of other 
non-metal mineral 
products 
26.82 Manufacture of other non-metal mineral products not entered in 
other groups WT/ACC/KAZ/57 
Page 132  
 
 No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
27.2 Manufacture of tubes 
27.21 Manufacture of tube of iron 
27.22 Manufacture of steel tubes 
27.3 Other primary processing of iron and steel and manufacture of 
ferrous alloys 
27.31 Cold drawing 
27.32 Cold rolling of strands and narrow strips 
27.33 Cold pressing and bending 
27.34 Manufacture of wires 
27.35 Manufacture of ferrous alloys and other products being out of 
consideration of the ECSC (European Coal and Steel 
Community) 
27.4 Manufacture of non-ferrous metals 
27.42 Manufacture of aluminium, except for: 
 
- manufacture of aluminium by electrolytic refining of 
aluminium wastes and scrap 
27.43 Manufacture of lead, zinc and tin, except for: 
 
- manufacture of lead, zinc and tin from ore; 
- manufacture of lead, zinc and tin  by electrolytic refining of 
wastes and scrap of lead, zinc and tin 
27.44 Manufacture of copper, except for: 
manufacture of copper from ore; 
manufacture of copper by electroly tic refining of copper wastes 
and scrap 27 Metallurgical industry 
27.45 Manufacture of other non-ferrous metals 
28.1 Manufacture of building metal structures and articles 
28.12 Manufacture of building metal articles 
28.2 Manufacture of metal reservoirs, radiators and boilers of the 
central heating system 
28.21 Manufacture of metal cisterns, reservoirs and containers 
28.22 Manufacture of radiators and boilers of the central heating 
system 
28.3 Manufacture of steam boilers, except for boilers of the central 
heating system 
28.30 Manufacture of steam boilers, except for boilers of the central 
heating system 
28.7 Manufacture of other ready-made metal articles 
28.71 Manufacture of metal barrels and analogous containers 
28.71 Manufacture of package of light metals 
28.73 Manufacture of articles of wire 
28.74 Manufacture of fastening articles, chains and springs 28 Manufacture of ready-
made metal articles 
28.75 Manufacture of other ready-made metal articles  WT/ACC/KAZ/57 
 Page 133 
 
 
 No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
29.1 Manufacture of mechanical equipment 
29.11 Manufacture of engines and turbines, except for aircraft, car and 
motorcycle engines 
29.12 Manufacture of pumps, compressors and hydraulic systems 
29.13 Manufacture of taps and valves 
29.14 Manufacture of bearings, gear transmissions, elements of 
mechanical transmissions and drives 
29.2 Manufacture of other equipment of general designation 
29.21 Manufacture of fu rnaces and kiln burners 
29.22 Manufacture of lifting-transporting equipment, except for: 
technical servicing of elevators and escalators 
29.23 Manufacture of industrial  refrigerating and ventilating 
equipment 
29.24 Manufacture of other machinery and equipment of general 
designation not entered in other groups 
29.3 Manufacture of machinery a nd equipment for agriculture and 
forestry 
29.31 Manufacture of agricultural tractors 
29.32 Manufacture of other machin ery and equipment for agriculture 
and forestry 
29.4 Manufacture of machines 
29.40 Manufacture of machines 
29.5 Manufacture of other machinery and equipment of special 
designation 
29.51 Manufacture of machinery and equipment for metallurgy 
29.52 Manufacture of machinery and equipment for production of 
minerals and construction 
29.53 Manufacture of machinery and equipment for preparation of 
foodstuffs, including beverages, and tobacco articles 
29.54 Manufacture of equipment for production of textile, garment, fur 
and leather articles 
29.55 Manufacture of machinery and equipment for production of 
paper and cardboard 
29.56 Manufacture of other machinery and equipment of special 
designation not entered in other groups 
29.7 Manufacture of home appliances 
29.71 Manufacture of home electric appliances 29 Manufacture of 
machinery and equipment 
29.72 Manufacture of home non-electric appliances 
30.0 Manufacture of office equi pment and computing machines 
30.01 Manufacture of  office equipment 30 Manufacture of office 
equipment and computing machines 30.02 Manufacture of electronic computing machines and other 
equipment for processing of information WT/ACC/KAZ/57 
Page 134  
 
 No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
31.1 Manufacture of electric engine s, generators and transformers 
31.10 Manufacture of electric engines, generators and transformers 
31.2 Manufacture of electric distributing and controlling equipment 
31.20 Manufacture of electric distributing and controlling equipment 
31.3 Manufacture of insulated wires and cables 
31.30 Manufacture of insulated wires and cables 
31.4 Manufacture of galvanic elemen ts (electric batteries and primary 
cells) 
31.40 Manufacture of galvanic elemen ts (electric batteries and primary 
cells) 
31.5 Manufacture of electric lamps and lighting equipment 
31.50 Manufacture of electric lamps and lighting equipment 
31.6 Manufacture of other electric equipment 
31.61 Manufacture of electric equipment for engines and transport 
vehicles 31 Manufacture of electric 
machinery and electric equipment 
31.62 Manufacture of other electri c equipment, except for electric 
equipment for engines and transport vehicles 
32.1 Manufacture of electric and radio elements 
32.10 Manufacture of elect ric and radio elements 
32.2 Manufacture of transmitting equipment 
32.20 Manufacture of transmitting equipment 
32.3 Manufacture of equipmen t for receiving, recording and 
replaying of sound and picture 32 Manufacture of 
equipment for radio, 
television and communication 
32.30 Manufacture of equipmen t for receiving, recording and 
replaying of sound and picture 
33.1 Manufacture of articles of medical equipment, including surgical 
equipment, and orthopaedic attachments 
33.10 Manufacture of articles of medical equipment, including surgical 
equipment, and orthopaedic attachments 
33.2 Manufacture of controlling-metering devices, except for devices 
of control and adjustment of technological processes 
33.20 Manufacture of controlling-metering devices, except for devices 
of control and adjustment of technological processes 
33.4 Manufacture of optical devices and photographic equipment 
33.40 Manufacture of optical devices and photographic equipment 
33.5 Manufacture of watches 33 Manufacture of articles 
of medical equipment, 
means of measurements, optical 
devices and equipment 
33.50 Manufacture of watches 
34.1 Manufacture of cars 
34.10 Manufacture of cars 
34.2 Manufacture of car bodies, manufacture of trailers and semi-
trailers 
34.20 Manufacture of car bodies, manufacture of trailers and semi-
trailers 
34.3 Manufacture of parts and acce ssories to cars and their engines 34 Manufacture of cars, 
trailers and semi-trailers 
34.30 Manufacture of parts and acce ssories to cars and their engines  WT/ACC/KAZ/57 
 Page 135 
 
 
 No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
35.1 Building and repair of vessels 
35.11 Building and repair of vessels, except for: 
 - building of military ships, 
- cutting of vessels for metal scrap 
35.12 Building and repaid of  sportive-tourist vessels 
35.2 Manufacture of railway rolling stock 
35.20 Manufacture of railway rolling stock 
35.3 Manufacture of aircraft, including space ones 
35.30 Manufacture of airc raft, including space ones 
35.4 Manufacture of motorcycles and bicycles 
35.41 Manufacture of motorcycles 
35.42 Manufacture of bicycles 35 Manufacture of other 
transport vehicles 
35.43 Manufacture of carri ages for the disabled 
36.1 Manufacture of furniture 
36.11 Manufacture of chairs and other furniture for sitting, except for: 
finishing, such as upholstering of chairs, and other furniture for 
sitting 
36.12 Manufacture of furniture for offices and trading enterprises 
36.13 Manufacture of kitchen furniture 
36.14 Manufacture of other furniture, except for: 
finishing of furniture, except for chairs and other furniture for sitting, such as spraying treatment, painting, polishing, 
lacquering and upholstering 
36.15 Manufacture of mattresses 
36.3 Manufacture of musical instruments 
36.30 Manufacture of musical instruments 
36.4 Manufacture of sportive goods 
36.40 Manufacture of sportive goods 
36.5 Manufacture of games and toys 36 Manufacture  of 
furniture and other 
products not entered in 
other groups 
36.50 Manufacture of games and toys 
37.2 Processing of non-metal wastes and scrap 37 Processing of 
secondary raw products 37.20 Processing of non-metal wastes and scrap 
40.1 Production and distribu tion of electrical energy 
40.10 Production and distribution of electrical energy 
40.2 Production and distribution of gaseous fuel 
40.20 Production and distribution of gaseous fuel 
40.3 Supply of steam and hot water 40 Production of electrical 
energy, gas, steam and 
water 
40.30 Production and supply of steam and hot water 
41.0 Collection, purification and distribution of water 41 Collection, purification 
and distribution of  
water 41.00 Collection, purification and distribution of water WT/ACC/KAZ/57 
Page 136  
 
 No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
45.1 Preparation of a building site 
45.11 Dismantling and demolition of buildings; land operations, 
except for preparation of sites for mining operations 
45.12 Exploration drilling 
45.2 Construction of buildings and erections 
45.21 General construction operations 
45.22 Arrangement of coverings of buildings and erections 
45.23 Building of roads, autodromes and sportive facilities 
45.24 Construction of water facilities 
45.25 Other building operations 
45.3 Installation of engineering equipment in buildings and erections 
45.31 Wiring operations 
45.32 Insulation operations 
45.33 Sanitary-technical operations 
45.34 Installation of other engineering equipment 
45.4 Finishing operations 
45.41 Plastering operations 
45.42 Joiner's and carpenter's operations 
45.43 Arrangement of coverings of floors and facing of walls 
45.44 Painting and glazing operations 45 Construction 
45.45 Other finishing operations 
55.2 Rendering of services by other places for short-term 
accommodation 
55.21 Rendering of services by youth tourist camps and mountain 
tourist bases 55 Rendering of services 
by hotels and 
restaurants 
55.22 Rendering of services by camping, except for: 
 
- in rural houses, flats - in other places for short-term accommodation, such as 
houses for visitors, residential houses at farms 
60.1 Activity of railway transport 
60.10 Activity of railway transport 
60.2 Activity of other land transport 
60.21 Activity of other land transport subject to timetable 
60.24 Activity of freight motor transport 
60.3 Transportation by pipelines 60 Activity of land 
transport 
60.30 Transportation by pipelines 
61.1 Activity of marine transport 
61.10 Activity of marine transport 
61.2 Activity of river transport 61 Activity of water 
transport 
61.20 Activity of river transport 
62.1 Activity of air transport subject to timetable 
62.10 Activity of air transport subject to timetable 
62.2 Activity of air transport not subject to timetable 62 Activity of air transport 
62.20 Activity of air transport not subject to timetable 
73.1 Researches and developments in the field of natural and 
technical sciences 73 Researches and 
developments 
73.10 Researches and developments in the field of natural and 
technical sciences 
80.1 Primary education (first level) 
80.10 Primary education (first level) 
80.2 Secondary education (second level) 80 Education 
80.21 General secondary education (second level)  WT/ACC/KAZ/57 
 Page 137 
 
 
 No. Name of the section Code Name of the type and sub-type of activity 
1 2 3 4 
85.1 Activity in the field of healthcare 85 Healthcare and 
rendering of  social services 85.11 Activity of hospital institutions 
92.1 Activity connected with cinema and video films 
92.13 Showing of cine-films 
92.3 Other entertainment activity 
92.33 Activity of parks of entertainment and leisure 
92.6 Activity in the field of sport 
92.61 Activity of sportive items 92 Activity for 
organisation of leisure 
and entertainment, 
culture and sport 
92.62 Other activity in the field of sport 
 WT/ACC/KAZ/57 
Page 138  
 
 ANNEX 3 
Civil Proceedings
 
Procedure for Reviewing of Judgements  
Court judgements may be reviewed in the follo wing cases: appeal process, judicial review, and 
revision of a case due to new findings and facts. 
1.  Petition of appeal, protestation 
Court decisions can be appealed. Persons involved in the process have the right to app eal decisions of a court of primary jurisdiction, 
except for the decisions of the Supreme Court of the Republic of Kazakhstan. 
The public prosecutor involved in th e process has the right to protest. 
The Prosecutor General of the Republic of Kazakhsta n and his/her deputies, oblast and equal public 
prosecutors and their deputies, as well as rayon and equal public prosecutors and their deputies within 
their terms of reference has the right to protest a court decision regardless of participation in the 
particular proceeding. 
If the court makes a decision in respect of the ri ghts and liabilities of persons not involved in the 
process they have the right to appeal too. 
The following authorities pro cess the appeals and protests: 
- Board on Civil Appeals of an oblast or equal court can process appeals of decisions made by 
rayon and equal courts; and 
- Board on Civil Appeals of the Supreme Court of the Republic of Kazakhstan can process 
appeals of decisions made by oblast a nd equal courts of first jurisdiction. 
The appeals and protests shall be filed (submitted) in  the court that made the decision or judgement 
with copies (one per each person involved in the pro cess) within fifteen days since the date of the 
final court decision/judgement. It is allowed to appe al the decision made during the reviewing of case 
in accordance with the general procedure. 
An appeal or protest must contain the following: 
- name of the court being appealed or protested; 
- name of the applicant submitting the appeal or protest; 
- the appealed or protested decision and name of the court that made this decision; 
- the statement specifying what is wrong in the proceeding; 
- justification of what is illegal or unjustified in  the decision/judgement with the reference to 
the laws, other normative legal acts and case papers; 
- the statement as to whether the applicant appeals the whole decision or a part of it, and what 
changes does the applicant require; 
- list of documents enclosed to the appeal or protest; and 
- the date of filing (submission) of the appeal or protest and the applicant's signature.  The 
documents supporting the payment of the state fee shall be enclosed to the appeal too. If a 
proxy/representative files the appeal, a power of attorney or other document certifying the  WT/ACC/KAZ/57 
 Page 139 
 
 
 representative's authority must be enclosed to th e appeal if the case provides for such terms of 
reference. 
An appeal or protest may also contain a petition to summon the witness whose testimony/evidence is 
disputed by the appeal or protest. 
The applicant's reference to new findings or evidence not presented in the court of the first jurisdiction 
is only allowed when the applicant justifies that it was impossible to present them in the court of 
primary jurisdiction. 
Processing an appeal, the court shall check the en tire decision/judgement of the court of primary 
jurisdiction as to whether it was legal and justified. The court of appeal may elicit new facts within the 
appeal and investigate the new evidence, which wa s impossible to present in the court of primary 
jurisdiction due to respectful reasons. 
The court of appeal shall check the case papers and additional evidence as to whether the facts and 
circumstances were investigated ri ght, whether the provisions of the substantive law were applied and 
interpreted right, and whether the provisions of the civil procedural laws were observed in the 
proceeding. 
The court of appeal shall process the cases within one month since the date it was transferred from the 
court of primary appeal. 
The public prosecutor must take part in the sitting of the court of appeal and make a resolution in 
respect of the case. 
The court of appeal has the right to do the following: - leave the decision/judgement unchanged, disallowing the appeal or protest;  
- change the decision/judgement of the court of primary jurisdiction; 
- cancel the decision of the court of primary jurisdiction and make a new decision; 
- cancel the decision and send the case to a new pr oceeding in the court of primary jurisdiction 
if an infringement of the substantive or procedural law was elicited; and 
- cancel the entire decision or a part of it and cease the proceeding or dismiss the appeal by the 
reasons stipulated in the civil procedural code. 
Decisions of the court of appeal only be come effective on the day they are made. 
2.  Judicial review Effective acts of all courts except for the resolutions  by the Reviewing Board of the Supreme Court of 
the Republic of Kazakhstan may be judicially reviewed  with the reference to reasons stipulated in the 
Civil Procedural Code (CPC RK). 
Reviewing of resolutions made by the Reviewing Board of the Supreme Court of the Republic of 
Kazakhstan and second trials in the Reviewing Boar d of the Supreme Court of the Republic of 
Kazakhstan are only allowed in excepti onal situations or by a protest by the Prosecutor General of the 
Republic of Kazakhstan because of eliciting data s howing that the resolution made by this board 
would entail severe irreversible consequences for the human life and health, national economy and 
security of Kazakhstan. WT/ACC/KAZ/57 
Page 140  
 
 The other persons involved in the process and having the right of appeal may appeal the effective 
decisions, judgements, resolutions and orders ( ad deliberandum ) of court, submitting the appeal 
directly to the court authorized to review the case. 
The following officials have the right to  protest an effective court decision: 
- Prosecutor General of the Republic of Kazakhsta n may register a protest in the Reviewing 
Board of an oblast or equal court, Civil Boar d and Reviewing Board of the Supreme Court of 
the Republic of Kazakhstan; 
- Deputies of Prosecutor General of the Republic of Kazakhstan may register a protest in the 
Reviewing Board of an oblast or equal cour t, Civil Board and Reviewing Board of the 
Supreme Court of the Republic of Kazakhstan; and 
- Oblast and equal prosecutors may register a protest in the Reviewing Board of an oblast or 
equal court. 
They may make a protest either on their own initiative or by a petition of other parties involved in the 
process and having the right to appeal. 
An applicant may withdraw the appeal or protest be fore the trial in the court of appeal by submitting 
the corresponding application to the reviewing court.  The superior prosecutor may also withdraw a 
protest. The court shall notify the person involved in  the process on the withdrawal of an appeal or 
protest. Withdrawal of an appeal or protest  entails the dismissal of the reviewing. 
With the grounds provided in the Code and upon th e appeals of parties involved in the process the 
Chief Justice of the Supreme Court of the Republic  of Kazakhstan, Chairman to the Board of the 
Supreme Court of the Republic of Kazakhstan, judge s of the Reviewing Board of an oblast or equal 
court shall make a proposal to the corresponding re viewing court to review the appealed court 
decision 
The reviewing board of an oblast or equal court shall process the following cases with reviewing 
protests and proposals: 
- effective decisions, resolutions, and judg ements of rayon and equal courts; and 
- resolution on appeal made by the civil board of an oblast or equal court. 
The civil board of the Supreme Court of the Repub lic of Kazakhstan shall process the following cases 
with reviewing protests and proposals: 
- decisions, resolutions, and judgements of oblast and equal courts made during the 
proceedings of the first jurisdiction,  which have not been appealed; and 
- resolution made by the reviewing board of an oblast or equal court. 
The reviewing board of the Supreme Court of th e Republic of Kazakhstan shall process the following 
cases with reviewing protests and proposals: 
- decisions, resolutions, and judgements of the civil board of the Supreme Court of the 
Republic of Kazakhstan made during the proceeding in the first jurisdiction; 
- resolutions made by the civil board of the Supreme Court of the Republic of Kazakhstan 
during the proceeding by appeals or review; and 
- resolutions made by the reviewing board of th e Supreme Court of the Republic of Kazakhstan 
in exceptional cases upon proposal of the Chief Ju stice of the Supreme Court of the Republic 
of Kazakhstan or upon a protest entered by Pr osecutor General of the Republic of Kazakhstan 
due to eliciting data showing that the resolu tion made by this board would entail severe  WT/ACC/KAZ/57 
 Page 141 
 
 
 irreversible consequences for the human life and health, national economy and security of 
Kazakhstan. 
A civil case may be obtained on demand (certiorari) from the current court for reviewing examination 
only if this is supported with the grounds  and reasons stipulated in the CPC RK. 
The following may be the certiorari causes: appeals a nd petitions of the parties involved in the process 
and having the right of appeal as well as initiative of  prosecutors within their terms of reference. 
A significant violation of the provisions of the substantive or procedural law may be the cause for 
reviewing of effective decisions, judge ments, and resolutions of a court. 
Effective decisions, judgements, and resolutions of a court may also be reviewed if the Supreme Court 
of the Republic of Kazakhstan finds unconstitutio nal the document upon which they were based. 
An applicant can submit an appeal or protest for a review within one year since the date the court's 
decision, judgement or resolution in question became effective. 
The court can prolong the term for making a protest  if the petition for a review protest was submitted 
to the prosecutor within the due period but the deci sion was pending.  This must be specified in the 
protest. 
Oblast and equal courts shall make the preliminary c onsideration of the appeal for a review within 15 
days since the date of submission by a sole judge decision on the instructions of the chief justice of 
such a court. 
As for the Supreme Court of the Republic of Kazakhstan, the corresponding boards shall make 
preliminary consideration of appeals for review with in 15 days since the date of submission on the 
instructions of the Court President.  If the content of the review appeal and documents enclosed give 
rise to doubts as to the legality of appealed court decisions, the persons authorized to make the 
preliminary consideration of the review appeal have the right for a certiorari.  In such a case the term 
for the preliminary consideration of the review app eal shall be one month since the date of submission 
to the reviewing court.  Either Chairman to the Board or a Vice-Chairman may prolong the term for 
the preliminary consideration of a review appeal  for up to one month in the view of respectful 
reasons.  
One of the following decisions can be made based on the results of the preliminary consideration: 
- to review the appealed court decision; and 
- to dismiss the review of the appealed court decision. 
The following officials can make a proposal on review of an appealed court decision: 
- Chief Justice of the Supreme Court of the Re public of Kazakhstan may make a proposal to 
the Reviewing Board of an oblast or equal court,  boards of the Supreme Court of the Republic 
of Kazakhstan; 
- Vice Chairman to the Board of the Supreme C ourt of the Republic of Kazakhstan may make a 
proposal to the Reviewing Board of an oblast or equal court, Civil Board of the Supreme 
Court of the Republic of Kazakhstan; and 
- Judges from the review board of and oblast or equal court may make a proposal to the 
reviewing board of their court. WT/ACC/KAZ/57 
Page 142  
 
 The Chief Justice, Chairman to the Board of the Supreme Court of the Republic of Kazakhstan, oblast 
or equal court president shall send the proposal on th e review of an effective decision, judgement or 
resolution along with the case papers, appeal and enclosed documents to the corresponding review 
court for consideration. 
The proposal on review of an effective court deci sion is mandative for the reviewing court authorized 
for such a judicial review. 
The reviewing court shall consider the case within one  month since the date of receipt.  The reviewing 
court may resolve to prolong the term of review because of motivated respectful reasons.  The court 
shall notify the parties and persons  concerned by the appealed court decision on the time and place of 
the review as well as copies of the appeal, proposal, or protest. 
If there are no reasons for the review of the appeal ed court decision the court shall send a notification 
in writing to the applicant of the review appeal. 
Besides the right for a certiorari, Chief Justice of the Supreme Court of the Republic of Kazakhstan, 
Prosecutor General of the Republic of Kazakhstan a nd its Deputies within their terms of reference 
have the right to suspend execution of a court d ecision for the reviewing purpose for the period of up 
to three months. 
During the judicial review the court verifies the le gality and validity of the court decisions made by 
the courts of primary jurisdiction and courts of a ppeal in accordance with th e case papers within the 
statements of an appeal or protest.  For the sake of  the law the reviewing court has the right to verify 
the legality of the entire appealed court decision beyond the scope of the review appeal or protest.  The court verifies the legality and validity of en tire decisions made by the courts of primary 
jurisdiction and courts of appeal by cases on claims to protect the electoral franchise of citizens and 
public unions participating in elections, referendu m; on claiming the legality of normative legal acts; 
on prosecutor's appeal of lawfulness of documen ts and acts of organizations and officials. 
Based on the results of the review the reviewing c ourt has the right to make one of the following 
decisions: 
- leave the decision/judgement of the court of primary jurisdiction or court of appeal 
unchanged, dismissing the appeal or protest;  
- cancel the decision of the court of primary jurisdiction or court of appeal in full or a part of it 
and send the case for a new consideration to the court of primary jurisdiction or the court of appeal; 
- cancel the decision of the court of primary jurisdiction or court of appeal in full or a part of it 
and dismiss the claim or dismiss the proceeding; 
- leave effective one of the decisions made on this case; and 
- cancel the decision of the court of primary juri sdiction or court of appeal or cancel it and 
make a new decision without sending the case for a new consideration if there was a fact of 
wrong application or interpretation of the provisi ons of the substantive or procedural law. 
Decisions of the reviewing court become effective on the day they are made. 
If the judicial reviewing cancelled a court decisi on, judgement or resolution, the case shall be 
considered in accordance with the general procedure. 
A secondary court decision, judgement or resolution,  made in the view of cancellation of previous 
decisions by an appeal or judicial review, may be appealed or protested in accordance with the general 
procedure regardless of the reasons for the cancellation of the primary court decision.  WT/ACC/KAZ/57 
 Page 143 
 
 
 3.  Revision of a case due to new findings and facts 
Effective decisions, judgements and resolutions  can be revised due to new circumstances. 
The following are the grounds for a revisi on of a case due to new circumstances: 
- significant circumstances that were not and could not be known to the applicant; 
- attested false testimony, faked results of an expertise, faked translation, forged/counterfeit 
documents or evidence entailing making either illegal or invalid decision; 
- attested crimes made by the parties and other persons involved in the process, by their 
representatives or illegal acts made by the judges in the proceeding in question; 
- cancelled decision, sentence, judgement or resolu tion made by the court or other organization, 
which used to be the reason for making the decision, judgement or resolution in question. 
The court of primary jurisdiction shall revise its effective decision if new circumstances have been 
elicited.  
The court of appeal or a reviewing court shall revi se its judgements, decisions and resolutions that 
changed decisions of the court of primary jurisd iction if new circumstances have been elicited. 
Having considered the petition for the revision of a decision, judgement or resolution due to new 
circumstances, the court shall either allow the petition and cancel  the decision, judgement or 
resolution in question, or dismiss the revision petition. 
No appeal or protest is provided for the judgement of the court to allow the petition for revision of a 
decision, judgement or resolution due to new circ umstances. In case of cancellation of a decision, 
judgement or resolution the court shall consider th e case in accordance with the rules defined in the 
CPC RK. 
Revision of resolutions on administrative infringements, which have not become effective  
An applicant shall submit the appeal of the case on an administrative infringement to the judge, 
organization (officer) that made the resolution in r espect of this case, and they shall send the appeal 
and the case papers to the corresponding court or a superior organization (officer) within three days 
since the submission of the appeal or protest. 
The applicant can also submit the appeal or register the protest directly in the court or the superior 
organization (officer) authorized to consider it. Th e civil procedural laws define the procedure for 
submission of an appeal directly to the court. 
An appeal of or a protest to a court resolution on imposing a penalty in the form the administrative 
arrest shall be send to the superior court in the day of the receipt of this appeal or protest. 
An appeal or a protest to a court resolution on  an administrative infringement may be submitted 
within ten days since the day of the receipt of a copy of such a resolution in question. 
Submission of an appeal within the term provide d suspends execution of the resolution on imposing 
an administrative penalty until the consideration of the appeal, except for the cases of imposing an 
administrative penalty on the place of where th e administrative infringement was committed. 
An appeal or a protest to a c ourt resolution on an administrative infringement shall be considered 
within ten days since the day of submission. An appeal or a protest to a court resolution on an WT/ACC/KAZ/57 
Page 144  
 
 administrative infringement shall be considered w ithin one day since the day of submission if the 
person concerned is under administrative arrest. 
Having considered the appeal or protest to the resolution on an administrative infringement the judge 
of the superior court, superior organization (o fficer) shall make one of the following decisions:  
- leave the resolution unchanged, dismissing the appeal or protest;  
- change the resolution; 
- cancel the resolution and dismiss the proceeding if supported by circumstances stipulated in 
Articles 68 (exemption from administrative penalty due to the insignificance of the infringement in question), 580 (circumstances excluding administrative proceeding), and 581 
(circumstances allowing not to call to administra tive responsibility) of the Code as well as 
due to the failure to prove the circumstances upon which the resolution in question was made; 
- cancel the resolution in question and make a new resolution; 
- cancel the resolution and send th e case to the court with the necessary jurisdiction if it was 
found out that the resolution in question had been made by a judge, organization (officer) beyond its competency. 
Revision of effective resolutions on cases on administrative infringements and judgements upon the 
results of considering appeals and prot ests to such resolutions in question  
Upon a protest of Prosecutor General, its deputies, oblast and equal prosecutors and their deputies, as 
well as upon a petition of the person concerned, th e injured party, defendant, and their legal 
representatives and proxies the following effective re solutions on administrative cases may be revised 
or reviewed in the court if during the consideration of the appeal or protest it was found out that the 
resolution was made by a judge or an organiza tion (officer) beyond its competency: administrative 
resolutions made by the judge of a specialized ra yon or equal administrative court, judgements made 
by rayon or equal court presidents; decisions made  by judges of superior courts upon appeals or 
protests to resolutions made by judges of specializ ed rayon or equal administrative courts and by 
rayon or equal court presidents, as well as resoluti ons made by judges (presidents) of rayon and equal 
courts. 
The boards of oblast and equal courts have the right  to revise the mentioned effective resolutions and 
judgements.  
The court can revise an administrative resolution aggravating the position of the person concerned 
only within one year since the day when the court d ecision or resolution in question became effective. 
Submission of petitions or protests to effective reso lutions and judgements suspend execution of such 
resolutions and judgements. 
Submission of petitions or protests to an effectiv e resolution on imposing an administrative arrest 
does not suspend execution of such a resolution. 
Upon the protest made by Prosecutor General and its  deputies the board of the Supreme Court of the 
Republic of Kazakhstan has the right to verify the legality and validity of an effective resolution on 
any administrative case as well as of any judgement (reso lution) on the results of consideration of an 
appeal or protest to the resolution in question and to revise such a resolution.  WT/ACC/KAZ/57 
 Page 145 
 
 
 ANNEX 4 
Structure of Import Customs Tariff of the Republic of Kazakhstan  
Import Customs Tariff Rates (%) Number of Tariff Lines 
From 0 to 5  6,558 
From 5 to 10 1,389 
From 10 to 15 2,376 
From 15 to 20 651 
From 20 to 25 20 
From 25 to 30 64 
Over 30 22 
 WT/ACC/KAZ/57 
Page 146  
 
 ANNEX 5 
List of developing countries, using the special preferential treatment 
 
of the Republic of Kazakhstan  
1. Albania     53. Former Yugoslav Republic of Macedonia 
2. Algeria     54. Malta 
3. Angola     55. Malaysia 
4. Antigua and Barbuda    56. Morocco 5. Angela     57. Marshall Islands 6. Argentina     58. Mexico 7. Aruba     59. Micronesia 
8. Bahamian Island    60. Mongolia    
9. Barbados     61. Montserrat 10. Bahrain     62. Namibia 11. Belize     63. Nauru 12. Bermudian Islands    64. Nigeria 
13. Bolivia     65. Netherlands Antilles Islands 
14. Brazil     66. Nicaragua 15. British Virgin Islands   67. Niger 16. Brunei Darussalam    68. United Arab Emirates 17. Venezuela     69. Oman 18. Vietnam     70. Saint Elena Islands 
19. Gabon     71. Turks and Caicos Islands 
20. Guyana     72. Pakistan 21. Ghana     73. Panama 22. Guatemala     74. Papua New Guinea 23. Honduras     75. Paraguay 
24. Hong Kong     76. Peru 
25. Grenada     77. Romania 26. Dominica     78. Salvador 27. Dominican Republic    79. Saudi Arabia 28. Egypt     80. Swaziland 29. Zimbabwe     81. Seychelles 
30. India     82. Senegal 
31. Indonesia     83. Saint Vincent and the Grenadines 32. Jordan     84. Saint Kitts and Nevis 33. Iraq      85. Saint Lucia 34. Iran      86. Singapore 
35. Cayman Islands    87. Syria 
36. Cameroon     88. Slovenia 37. Qatar     89. Surinam 38. Kenya     90. Thailand 39. Cyprus     91. Tokelau Islands 40. China     92. Tonga 
41. Democratic People's Republic of  Korea 93. Trinidad and Tobago 
42. Columbia     94. Tunisia 43. Congo     95. Turkey 44. Republic of Korea    96. Uruguay 45. Costa-Rica     97. Fiji 
46. Cote d'Ivoire    98. Philippines 
47. Cuba     99. Croatia 48. Kuwait     100. Chile  WT/ACC/KAZ/57 
 Page 147 
 
 
 49. Cook Islands    101. Sri Lanka 
50. Lebanon     102. Ecuador 51. Libya     103. Serbia and Montenegro (Yugoslavia) 52. Mauritius     104. Jamaica WT/ACC/KAZ/57 
Page 148  
 
 List of least developed countries, using the special preferential treatment
 
of the Republic of Kazakhstan  
1. Afghanistan    25. Madagascar 
2. Bangladesh    26. Malawi 3. Benin    27. Mali 
4. Burkina Faso    28. Maldives 
5. Burundi    29. Mozambique 6. Botswana    30. Myanmar 7. Bhutan    31. Nepal 8. Vanuatu    32. Niger 
9. Haiti     33. Rwanda 
10. Gambia    34. West Samoa 11. Guinea    35. Sao Tome and Principe 12. Guinea Bissau   36. Solomon Islands 13. Djibouti    37. Somali 
14. Zaire    38. Sudan 
15. Zambia    39. Sierra Leone 16. Yemen    40. Tanzania 17. Cape Verde    41. Togo 18. Cambodia    42. Tuvalu 19. Kiribati    43. Uganda 
20. Comorian Islands   44. Central African Republic 
21. Laos    45. Chad 22. Lesotho    46. Equatorial Guinea 23. Liberia    47. Ethiopia 24. Mauritania  
  WT/ACC/KAZ/57
 Page 149ANNEX 6 
Comparative Analysis of Provisions of the Rules of Orig in and the Customs Code of the Republic of Kazakhstan  
 
Paragraph h of article 2 of the Agreement on 
Rules of Origin Paragraph 3 (d) of  Annex 2 to the Agreement on 
Rules of Origin Customs Code's Provisions 
2 (h)  
 Upon the request of an exporter, importer or any 
person with a justifiable cause, assessments of 
the origin they would accord  to a good, are issued 
as soon as possible but no later than 150 days
3 
after the request for such an assessment provided that all necessary documents have been 
submitted. Requests for such assessments shall be 
accepted before trade of concerned good begins and may be accepted at any later point of time.  
Such assessments shall remain valid for three 
years provided that the facts and conditions, including the rules of origin, under which they 
have been made, remain comparable.  Provided 
that the parties concerned are informed in advance, such assessments will no longer be 
valid when a decision contrary to the assessment 
is made in a review as referred to in subparagraph (j). Such assessments shall be made 
publicly available subject to the provisions of 
subparagraph (k). 3 d 
Upon request of an exporter, importer or any person 
with a justifiable cause, assessments of the 
preferential origin they would accord to a good are 
issued as soon as possible but no later than 150 days 
after a request for such an assessment provided that all necessary elements have been submitted.  
Requests for such assessments shall be accepted 
before trade in the good concerned begins and may be accepted at any later point in time.  Such 
assessments shall remain valid for three years 
provided that the facts and conditions, including the preferential rules of origin, under which they have 
been made remain comparab le.  Provided that the 
parties concerned are info rmed in advance, such 
assessments will no longer be valid when a decision 
contrary to the assessment is made in a review as 
referred to in subparagraph (f). Such assessments shall be made publicly available subject to the 
provisions of subparagraph (g). 
 Article 47. Preliminary assessment: 
 1.  Upon request of an applicant the customs authorities (except 
for customs stations) shall make a preliminary assessment of 
a particular good as to the go ods classification in accordance 
with the Foreign Economic Activity Product Nomenclature 
(FEA PN). 
2.  Subject to the provisions of this Code, the customs bodies 
specified in paragraph 1 of this article have the right to make 
a preliminary decision on the application of the methodology to determine the country of origin and the customs value of 
the good concerned.  The authorized customs body shall 
define the form and procedure on making such a preliminary assessment. 
3.  Subject to Article 299 of this Code the fee shall be charged 
for such preliminary assessment.  
 
Article 48. Application for a preliminary assessment 
 1.  The applicant shall submit an application in writing to the 
customs body specified in article 47 of this Code. 
2.  The application shall contain information on the good 
necessary for the preliminary assessment.  The application 
shall have enclosed description of the goods, pictures, 
drawings, commercial, technical and other documents 
necessary to make a preliminar y assessment.  If possible, the 
applicant shall also enclose samples or specimen of the goods to be assessed. 
3.  The customs body considers the application and issues a 
preliminary assessment within ten working days since the 
                                                      
3 In respect of requests made during the firs t year from the date of entry into force of the WTO Agreement,  Members shall only b e required to issue these assessments as 
soon as possible.  
 WT/ACC/KAZ/57 
Page 150 Paragraph h of article 2 of the Agreement on 
Rules of Origin Paragraph 3 (d) of  Annex 2 to the Agreement on 
Rules of Origin Customs Code's Provisions 
date when the application was registered, provided that no 
additional data or examination was required. 
4.  If the data submitted by the applicant is insufficient for the 
preliminary assessment, the customs body shall notify the 
applicant on the need in additional information and sets the deadline for its submission. If the applicant fails to submit 
the data in time, the application for preliminary assessment 
shall be dismissed. The general term for submission of additional data shall not exceed one month since the day 
when the applicant was notified in writing. 
5.  If the application was dismissed, the customs body shall send 
reasoned refuse to the applican t within seven working days.  
Dismissal of an application does not prohibit the applicant 
from submission of another application for preliminary assessment, provided that th e applicant eliminates the 
mistakes, which had caused dismissal of the previous 
application. 
6.  A preliminary assessment or a dismissal of such may be 
appealed in the court in accordance with the procedure 
defined in this Code. 
 
Article 49. Preliminary assessment expiration term  
A preliminary assessment shall expire  in three years since the date 
it was made by the customs authority.  
A change in the preliminary assessment does not prolong its 
validity period.  
Article 51. Transparency of  preliminary assessments 
 Preliminary assessment made by the customs authorities (except 
for confidential information) may be published or made available 
to any person upon a request in writing. 
  WT/ACC/KAZ/57 
 Page 151 
 
 
 ANNEX 7 
List of State Standards Harmonized with International Standards  
 
1. ST RK 1.2-2002 National standardization system of the Republic of Kazakhstan. 
Procedure on development of the state standards. 
2. ST RK 1.28-2002 National standardization sy stem of the Republic of Kazakhstan. 
Standardization of services. 
3. ST RK 3.7-2002 National certification sy stem of the Republic of Kazakhstan. 
Procedure on certification of touris t-excursion services and tourist 
accommodation services. 
4. ST RK 3.26-2002 National certification syst em of the Republic of Kazakhstan. 
Procedure on certification of speci al hoisting equipment and cranes. 
5. ST RK 3.28-2002 Procedure on certification of vegetable oils and fat-and-oil products. 
6. ST RK 4.6-2002 Oil products. General provisions. 
7. ST RK 7.3-2002 National certification system of the Republic of Kazakhstan. General 
requirements to test la boratories (centres).  
8. ST RK 7.8-2002 Procedur e on accreditation of certificat ion bodies, testing and 
calibrating laboratories (centres). 
9. ST RK GOST R 12.4.026-
2002 Signalling colours, safety signs, and signalling marking. General 
technical specifications and application procedure. 
10. ST RK 34.003-2002 Information technology. Nomenclature of quality parameters of 
information system databases. 
11. ST RK 34.004-2002 Information technology. Methods to determine base values of 
software quality. 
12. ST RK 34.010-2002 Information technology. Software certification. Procedure on 
examination of software documentation.  
13. ST RK 34.012-2002 Information technology. Software tools certification. Typical methods 
to evaluate the quality of software documentation. 
14. ST RK 34.016-2002 Information technology. Remote control technical software tools. 
General technical specifications.  
15. ST RK ISO/IEC 66-2002 General specifications for the bodies evaluating and 
certifying/registering ecological control systems. 
16. ST RK 452-2002 Mineral, natural, potable and table, therapeutic waters. General 
technical specifications (GTS). 
17. ST RK 1010-2002 Food products. Information for consumers. General specifications. 
18. ST RK 1042-2001 Administrative-regulatory documentation. Specifications on drawing 
documents.  
19. ST RK 1050-2002  
(ISO 752-1981) Zinc bars. Technical specifications.  
20. ST RK 1052-2002 Environment protection. Atmosphere. Determining parameters of 
lead, zinc, copper and th eir compounds emission.  
21. ST RK 1055-2002 Kazakh coal  for carbonization. Genera l technical specifications. 
22. ST RK 1056-2002 Kazakh coal for powdere d-coal combustion. General technical 
specifications. 
23. ST RK 1060-2002 Lactoserum based drinks with filler. General technical specifications. 
24. ST RK 1062-2002 Butter. General technical specifications. 
25. ST RK 1063-2002 Cheese. General technical specifications. 
26. ST RK 1076-2002  Perfume and cosmetic products. Information for consumer. General 
specifications. 
27. ST RK 1093-2002 Kazakh coal for lime prod uction. General technical specifications. 
28. ST RK 1094-2002 Kazakh coal for cement pr oduction. General technical specifications. 
29. ST RK 1097-2002 Water. Gas chromatography method for detection of carbon in 
organic compounds.  
30. ST RK 1109-2002 Ampul for mining and construction. General technical specifications.  
31. ST RK 1110-2002 Bolt shaft. General technical specifications. WT/ACC/KAZ/57 
Page 152  
 
 32. ST RK 1147-2002 Standoff ceramic insulators for voltage over 1,000 V for outdoor 
work. Types, main parameters and sizes. 
33. ST RK 1148-2002 Standoff ceramic insulators for voltage over 1,000 V for indoor work. 
Types, main parameters and sizes.  
34. ST RK 1157-2002 Professional higher education. Education quality management 
systems. 
35. ST RK 1158-2002 Professional higher education. Material-technical base for educational 
institutions.  
36. ST RK 1166-2002 Fire equipment. Classification. Terms and definitions.  
37. ST RK 1167-2002 Fire-prevention automated mechanisms. Classification. Terms and 
definitions. 
38. ST RK ISO/IEC TO  
15504-1-2002 Information technology. Evaluation of software development. Part 1. 
General provisions and introduction. 
39. ST RK 19011-2002 Audit of quality management and/or environment protection systems. 
40. ST RK 1.32-2003 GSS RK. Technical specifications on food products. General 
specifications on development and design. 
41. ST RK 1.41 – 2003 Statistical and conventional digital codes used as notation 
conventions in development of standards and regulatory documents 
on standardizing. 
42. ST RK 3.11-2003 National certification syst em of the Republic of Kazakhstan. 
Structure and procedure on keeping the National System Register. 
43. ST RK 3.31-2003 Gas certification procedure. 
44. ST RK 3.35-2003 National certification syst em of the Republic of Kazakhstan. 
Qualification requirements to the certification body executive. 
45. ST RK 3.362003 National certification system of the Republic of Kazakhstan. Mineral 
fertilizers application equipm ent certification procedure. 
46. ST RK 4.5- 2003 Product development and mass production system. Foreign 
companies documentation products. 
47. ST RK 7.6-2003 Specifications and procedure on accreditation to obtain the right for 
metrology certification of measuring methods. 
48. ST RK 7.10-2003 Specifications and procedure on accreditation to obtain the right for 
independent expert evaluation in metrology. 
49. ST RK 7.9 - 2003 GSS RK. Standard time for operations on preparation and 
accreditation of organizations on certif ication of products, processes, 
work, services and test laboratories (centres). 
50. ST RK 1174-2002 Fire-prevention equipment. Main types. Allocation and maintenance. 
51. ST RK 1176-2002 State number plates with light reflective surface for certain types of 
vehicles and trailers. Technical specifications. 
52. ST RK 1178-2003 Protection of information system of the National Standards Fund 
from unauthorized access. Gene ral technical specifications. 
53. ST RK 1183-2003 Car gasoline. General technical specifications. 
54. ST RK 1184-2003 Quality of internal information. Terms and definitions.  
55. ST RK 1185-2003 Safety certificate for products, substances and materials. 
Composition, development and application procedure. 
56. ST RK 1186-2003 Textiles. Coating and carpet products made by mechanical 
manufacture method. Information for consumer. General 
specifications.  
57. ST RK 1187-2003 Fire alarms. Classificati on. General technical specifications. Test 
methods.  
58. ST RK 1188-2003 Thermal fire alarms. Fi re safety technical specifications. Test 
methods. 
59. ST RK 1189-2003 Fire reporting facilities and evacuation managers. Classification. 
General technical specifications. Test methods. 
60. ST RK 1196-2003 Product quality parame ters system. Erosion-preventive seeding-
machines. Nomenclature of quantitative indices of quality.  
61. ST RK 1212-2003 Bitumen and bitumen based cementing agents. Terms and definitions.  WT/ACC/KAZ/57 
 Page 153 
 
 
 62. ST RK 1228  -2003 Bitumen and bitumen based cementing agents. Solubility 
determination method. 
63. ST RK 1211-2003 Bitumen and bitumen based cementing agents. Dynamic viscosity 
determination method. 
64. ST RK 1210-2003 Bitumen and bitumen based cementing agents. Kinematic viscosity 
determination method. 
65. ST RK 1227-2003 Bitumen and bitumen based cementing agents. Determining the 
softening point by ball and ring method. 
66. ST RK 1221-2003 Mineral powder for road concrete mix. Test methods. 
67. ST RK 1224-2003 
 Bitumen and bitumen based cementing agents. Methods to determine 
the heat and air aging treatment resistance. 
68. ST RK 1229-2003 Bitumen and bitumen based cementing agents. Brittle temperature 
determination Fraas method.  
69. ST RK 1226-2003 Bitumen and bitumen based cementing agents. Penetration depth 
determination method. 
70. ST RK 1219-2003 Moto r roads and airfields. Surface imperfections measuring methods. 
71. ST RK 1230-2003 Oil bitumen. Paraffin content determination methods. 
72. ST RK 1218-2003 Organic astringents based materials for road and airfield construction. 
Test methods. 
73. ST RK 1217-2003 Construction sand. Test methods. 
74. ST RK1213 -2003 Constructio n macadam and gravel from dense rock and industrial 
wastes. Physical and mechanical test methods. 
75. ST RK 1214-2003 Constructio n macadam and gravel from dense rock and industrial 
wastes. Chemical analysis methods. 
76. ST RK 1124-2003 Traffic control technical facilities. Road marking. Technical 
specifications. 
77. ST RK 1220-2003 Resin for bridge framework carriages. General technical 
specifications. Test methods. 
78. ST RK GOST R 51760-2003 Package. General technical specifications. 
79. ST RK GOST R 50779.11-
2003 Statistical methods. Statistical quality management. Terms and 
definitions. 
80. ST RK GOST R 51089-2003 Fire-p revention receive rs and control devices . General technical 
specifications. Test methods. 
81. ST RK GOST R 51210-2003 Po table water. Boron content determination method. 
82. ST RK GOST R 51211-2 003 Potable water. Surface-active materials detection methods. 
83. ST RK GOST R 51574-2003 White salt. Technical specifications. 
84. ST RK GOST R 51578-2003 Liquid perfume products. General technical specifications. 
85. ST RK GOST R 51579-2003 Cosmetic products. General technical specifications 
86. ST RK GOST R 51691-2003 Paintwork materials. Enamels. General technical specifications. 
87. ST RK GOST R 51692-2003 Paint oil. General technical specifications. 
 WT/ACC/KAZ/57 
Page 154  
 
 List of standards harmonized in accordance with the Schedule for Harmonization of National 
Standards with International Standards in 2004  
 1. ST RK Gas and oil industry. Drilling and pr oduction equipment. Wellhead and production 
tree.  
2. ST RK Gas and oil industry. Pump rods (short pump rods, subsurface pump plungers, 
couplings and reducing taper elbow s). Technical specifications. 
3. ST RK Gas and oil industry. Pumping units. Technical specifications. 
4. ST RK Rotary pumps for oil, petr ochemical and gas industries.  
5. ST RK Gas and oil industry. Drilling and pr oduction equipment. Equipment for through 
drilling.  
6. ST RK Oil and gas industry. Tubular heat exchangers. 
7. ST RK Steel shutoff valves, ball-valves, and stop valves with DN 100 and less diameter for 
oil and gas industry. 
8. ST RK Gas and oil industry. Casing centralizer s. Part 1. Spring casing centralizers.  
9. ST RK Gas and oil industry. Well cementing equipment. Part 3. Operational tests of 
cementing floating equipment. 
10. ST RK Gas and oil industry. Plate-type heat exchanger. 
11. ST RK Oil, chemical and gas industry. Centrifugal-flow compressors. 
12. ST RK Oil and gas industry. Positive displaceme nt rotary compressors. Part 1. Industrial 
compressors (without oil)  
13. ST RK Gas and oil industry. Flexible coup lings for transmission of general-purpose 
mechanical energy. 
14. ST RK Gas and oil industry. Piston gas packed compressors.  
15. ST RK Gas and oil industry. Seamless pipes from corrosion-resistant alloys for safety 
clutches, pipelines and end caps. Technical specifications on supply.  
16. ST RK Gas and oil industry. Drilling and pr oduction equipment. Control, technical 
maintenance, repair and upgrade of hoisting equipment. 
17. ST RK Oil and gas industry. Drilling and pr oduction equipment. Hoisting equipment. 
18. ST RK Gas and oil industry. Collection and exchange of data on equipment safety and 
maintenance.  
19. ST RK Gas and oil industry. Formulas for and co mputation of parameters  of casing pipes, oil-
well tubing, drill pipes and pipelines pipes.  
20. ST RK Gas and oil industry. Downhole equipment. Packers and bridge plugs.  
21. ST RK Downhole equipment for oil and gas industry. Subsurface pump systems with 
chambers for mechanized production. Part 1. Pumps.  
22. ST RK Oil and gas industry. Piston compressors. 
23. ST RK Gas and oil industry. Pipelines for gas transportation. Pipeline valves.  
24. ST RK Gas and oil industry. Well drilling e quipment. Landing nipple mandrel and landing 
nipple. 
25. ST RK Gas and oil industry. Bends made with induction heating method,  fittings and flange 
for pipeline pumping-over systems. Part 1. Bends made with induction heating method.  
26. ST RK Gas and oil industry. Downhole equipment. Downhole safety valves.  
27. ST RK Oil industry. Terminology. Part 1.  Raw materials and finished products. 
28. ST RK Oil industry. Terminology. Part 2. Test specifications and methods.  
29. ST RK Oil industry. Terminology. Part 3. Deposit exploration and production.  
30. ST RK Oil industry. Terminology. Part 4. Oil processing.  
31. ST RK Oil industry. Terminology. Part 5. Transportation, storage, distribution.  
32. ST RK Oil industry. Terminology. Part 6. Measuring system.  
33. ST RK Oil industry. Terminology. Part 7. Miscellaneous terms.  
34. ST RK Oil industry. Terminology. Part  99. General provisions and index.  
35. ST RK Natural gas. Dictionary. 
36. ST RK Gas and oil industry. Contents and draft of technical specifications.   WT/ACC/KAZ/57 
 Page 155 
 
 
 37. ST RK Gas and oil industry. Content defi nition and development of the functional 
specifications document.  
38. ST RK Crude oil and liquid oil products. Laborat ory density test. Areometer based method. 
39. ST RK Measuring systems for oil products. Ca libration. Temperature modifications for 
calibration of measuring vessels for tests. 
40. ST RK Oil and gas industry. Field tests of drillin g agents. Part 1. Water based drilling agents. 
41. ST RK Gas and oil industry. Field tests of dr illing agents. Part 2. Carbon based drilling 
agents. 
42. ST RK Gas and oil industry. Drilling agents. Laboratory tests.  
43. ST RK Oil and gas industry. Materials for drilling agents. Technical specifications and tests.  
44. ST RK Oil and gas industry. Lifetime operationa l costs computation. Part 1. Methodology.  
45. ST RK Gas and oil industry. Lifetime opera tional costs. Part 2. Guidelines to the 
methodology and computation methods.  
46. ST RK Oil and gas industry. Lifetime operational costs. Part 3. Introduction guidelines.  
47. ST RK Oil parameters tables. Part 2. Tables based on standard temperatures 20 ° C.  
48. ST RK Crude oil. Water content determination.  Karl Fischer potentiometric titration method. 
49. ST RK Crude oil. Water content determ ination. Coulometric titration method. 
50. ST RK Crude oil and liquid and solid oil products . Density and relative de nsity determination. 
Method using a capillary densimeter with a plug and a graded bicapillary densimeter. 
51. ST RK Natural gas. Sulfides content det ection. Part 1. General introduction.  
52. ST RK Natural gas. Water content de tection. Part 2. Test methods.  
53. ST RK Natural gas. Water content detecti on. Part 3. Coulometric measurements.  
54. ST RK Natural gas. Constriction coefficient computation. Part 3. Physical characteristics 
based computation.  
55. ST RK Natural gas. Quality designation.  
56. ST RK Natural gas. Composition analysis with  standard precision by gas chromatography 
method. Part 6. Hydrogen, helium, oxygen, nitrogen, carbonic acid gas, and hydrocarbons 
(C1-C8) content analysis with  three capillary columns.  
57. ST RK Natural gas. Extended analysis. Gas chromatography method.  
58. ST RK Natural gas. Calorific power, density, relative density and Wobbe index computation 
for the blend.  
59. ST RK Natural combustible gas. Component analysis chromatography method.  
60. ST RK Natural gas. Organic sulphurous compounds  used as aromatizers. Specifications and 
test methods.  
61. ST RK Gas analysis. Detection of sulphurous co mpounds content in natural gas. Part 2. 
Method of gas chromatography analysis with application of odorant sulphurous compounds 
electrochemical detector.  
62. ST RK Natural gas. Water content determination at high pressure.  
63. ST RK Natural gas. Constriction coefficient com putation. Part 1. Introduction and guidelines.  
64. ST RK Natural gas. Constriction coefficient co mputation. Part 2. Molar percentage based 
computation.  
65. ST RK Technical propane and butane. Gas chromatography analysis method.  
66. ST RK Natural gas. Composition analysis with  standard precision by gas chromatography 
method. Part 4. Nitrogen, carbonic acid gas and hydrocarbons (C1-C5 and C6+) content 
analysis for a laboratory and real time m easuring system with two capillary columns. 
67. ST RK Natural gas. Composition analysis with  standard precision by gas chromatography 
method. Part 5. Nitrogen, carbonic acid gas and hydrocarbons (C1-C5 and C6+) content 
analysis for the laboratory application and real  time application of the process with three 
capillary columns.  
68. ST RK Natural gas. Physical properties co mputation methods. Condensability coefficient 
computation.  
69. ST RK Domestic gas. Ordor intensity detection methods.  WT/ACC/KAZ/57 
Page 156  
 
 70. ST RK Crude oil. Water content dete rmination. Distillation method.  
71. ST RK Natural gas. Composition analysis with  standard precision by gas chromatography 
method. Part 1. Special analysis guidelines.  
72. ST RK Natural gas. Composition analysis with  standard precision by gas chromatography 
method. Part 2. Measuring system specifications and statistical data analysis.  
73. ST RK Natural gas. Composition analysis with  standard precision by gas chromatography 
method. Part 3. Hydrogen, helium, oxygen, nitrogen, carbonic acid gas, and hydrocarbons (up to C8) content analysis wi th two packed columns.  
74. ST RK Natural gas. Organic sulphurous compounds  used as ordorants. Specifications and test 
methods.  
75. ST RK Natural gas. Water content analys is. Part 3. Coulometric measurements. 
76. ST RK Liquid petroleum gas. Vapor dens ity and pressure computation method.  
77. ST RK Oil products. Water content analysis. Ca rl Fisher coulometric titration method.  
78. ST RK Oil products. Sulfur content analysis. X-ray fluorescent spectrometry with wavelength 
variance.  
79. ST RK Crude oil. Water and precipitation content analysis. Centrifugal method.  
80. ST RK Oil products. Vanadium and nickel c ontent analysis. X-ray fluorescent spectrometry 
with wavelength variance.  
81. ST RK Oil products. Determination of lead content in gasoline. Method with application of 
iodine chloride.  
82. ST RK Oil and liquid oil products. Temper ature measurement. Manual methods.  
83. ST RK Oil products. Sulfur content analysis. En ergy dispersion X-ray fluorescence method.  
84. ST RK Light cooled hydrocarbon liquids. Samp le monitoring of natural liquefied gas. 
Continuous monitoring method.  
85. ST RK Oil products. Aviation and distillate fu el. Specific electric conductance test.   
86. ST RK Oil products. Saponification number test. Pa rt 1. Method of titration with a chemical 
indicator.  
87. ST RK Oil products. Saponification number test. Part 2. Potentiometric titration method.  
88. ST RK Liquid hydrocarbons. Volumetric me asurement with turbine flowmeters.  
89. ST RK Oil and liquid oil products. Calibration of vessel by measurement of the liquid. 
Increment method with volumetric flowmeters.  
90. ST RK Crude oil and oil residue. Residue content analysis. Extraction method.  
91. ST RK Oil and liquid oil products. Calibration of  horizontal cylinder reservoirs. Part 2.  
Method of internal measurement with electrooptic distance meters.  
92. ST RK Gas and oil industry. Casing pipes and tubing maintenance and operation.  
93. ST RK Gas and oil industry. Casing pipes, tubing, and pipelines cutting, calibration and 
manufacturing inspection. Technical specifications. 
94. ST RK Gas and oil industry. Systems of  gas transportation by pipelines. 
95. ST RK Gas and oil industry. Evaluation and testi ng of threaded joints of casing pipes, tubing, 
and pipelines.  
96. ST RK Gas and oil industry. Evaluation and t esting methods for threaded joints of casing 
pipes and pipelines.  
97. ST RK Gas and oil industry. Systems of gas tran sportation by pipelines. Pipelines welding.  
98. ST RK Gas and oil industry. Drilling and pr oduction equipment. Computation of drilling 
pipes and maximal lifetime.  
99. ST RK Gas and oil industry. Pipelines systems fro m glass-reinforced plastic (GRP). Part 4. 
Assembly, laying, and operation.  
100. ST RK Gas and oil industry. Pipelines systems.  
101. ST RK Gas and oil industry. Pipelines systems fro m glass-reinforced plastic (GRP). Part 1. 
Dictionary, symbols, application and materials.  
102. ST RK Gas and oil industry. Pipelines systems fro m glass-reinforced plastic (GRP). Part 2. 
Qualification evaluation and production.   WT/ACC/KAZ/57 
 Page 157 
 
 
 103. ST RK Gas and oil industry. Pipelines systems fro m glass-reinforced plastic (GRP). Part 3. 
System design.  
104. ST RK Gas and oil industry. Installations for offshore production. Guidelines on choice of 
tools and methods to identify hazards and evaluate risks.  
105. ST RK Crude oil. Transportation accounting. Guidelines on inspection of cargo.  
106. ST RK Natural gas. Carl Fisher method of wa ter content analysis. Part 1 Introduction.  
107. ST RK Natural gas. Carl Fisher method of wa ter content analysis. Part 2. Testing.  
108. ST RK Natural combustible gas. Sampling methods. 
109. ST RK Agglomerated fuel from coal of K azakhstan. General technical specifications. 
110. ST RK Solid mineral fuel. Qua lity based acceptance rules.  
111. ST RK Solid mineral fuel. Test of specific efficient activity of natural radionuclids.  
112. ST RK Electrical safety of industrial and soci al-domestic electrical installations. General 
technical specifications. 
113. ST RK Electrical safety of industrial and soci al-domestic electrical installations. Control 
methods.  
114. ST RK Re-equipment of vehicles. General specifications phase 1.  
115. ST RK Railway transport forwarding services. General requirements. 
116. ST RK Vehicles. Structure safety requirements.  
117. ST RK Technical facilities for traffic control and organization. Operation rules.  
118. ST RK Porcelain rod insulators for the overhead  contact system of the railway lines system. 
General technical specifications. 
119. ST RK Polymer rod insulators for the overhead contact system of the railway lines system. 
General technical specifications. 
120. (State standard) GOST Car service center services. Car glass toning. General specifications 
phase 1. 
121. (State standard) GOST Car service center services. Maintenance shop services. Types of 
services, service procedure and quality requirements. Phase 1. 
122. ST RK Emission of hazardous substances and exhaust smoke opacity of main-line and 
shunting diesel locomotives. Norms and methods of determination.  
123. ST RK Vehicles. Safety requirements to the technical condition and inspection methods.  
124. ST RK Motor roads. Wheel and surface traction coefficient test methods.  
125. ST RK Mineral powder for road c oncrete mix. Test methods.  
126. ST RK Construction macadam and gravel fro m dense rock. Technical specifications. 
127. ST RK Bitumen road emulsions. Technical specifications. 
128. ST RK Polymer-bitumen astringent for road construction. Technical specifications. 
129. ST RK Metal safety fence. Technical specifications. 
130. ST RK Raw material for production of constr uction sand, macadam and gravel. Technical 
specifications and test methods.  
131. ST RK Paintwork materials. Enamels. General technical specifications.  
132. ST RK Paint oil. General technical specifications. 
133. ST RK Gas and oil industry. Cement and materi als to cement the well. Part 1. Technical 
specifications. 
134. ST RK Technical regulations on geological e xploration and protecti on of the subsurface. 
General specifications. 
135. ST RK Annual schedule of mining operations. Requirements to the content, design, 
coordination and approval.  
136. ST RK Soils. Laboratory tests. General provisions.  
137. ST RK Soils. Laboratory methods for the grain (grain-size) analysis.  
138. ST RK Annual production plan for complex co nsumption of mineral raw material in 
processing. General specifications. 
139. ST RK Radiation evaluation of deposits of raw materials for production of construction 
materials. WT/ACC/KAZ/57 
Page 158  
 
 140. ST RK Development of requirements to the desi gn, organization and implementation of local 
monitoring of subsurface to the procedure on representation and use of this data.  
141. GOST Lead-antimony alloys. Technical specifications  
142. GOST Zinc. Spectral analysis method.  
143. ST RK Fitment and corking. General provisions on safety, marking and acceptance rules.  
144. ST RK White salt. Technical specifications  
145. ST RK Iodized white salt. Iodine and sodium  thiosulfate content determination methods. 
146. ST RK Statistical methods. Procedures on sampling testing by alternative attributes. Part 1. 
AQL (acceptable quality level) based plans on sampling testing of consecutive consignments. 
147. ST RK Quality management system. Evaluation of quality management system efficiency 
with help of expert score.  
148. ST RK Statistical methods. Processes capacity indices. Main computation methods.  
149. ST RK 695-98 Soils. Motor roads surface so ils' density and humidity test methods. 
150. ST RK 781-93 Cindery astringents for road construction. Technical specifications. 
151. ST RK 973-94 Stone materials and soils treated with nonorganic astringents for road and 
airfield construction. Technical specifications. 
152. Revised standard ST RK 17.1.4.01-95 Environment protection. Hydrosphere. Method of 
determining the acute toxic ity of water on daphnia.  
153. Revised standard ST RK 17.1.4.02-96 Environment protection. Hydrosphere. Method of 
determining the acute toxicity of water on ceriodaphnias.  
154. Revised standard ST RK 17.1.4.03-96 Environment protection. Hydrosphere. Method of 
determining the acute toxicity of water on algae. 
155. Revised standard ST RK 17.1.4.04-97 Environment protection. Hydrosphere. Method of 
determining the acute toxicity of water on infusoria. 
156. Revised standard ST RK 1082-2002 Mining load-haul-dump machines. General technical 
specifications. 
157. Revised standard ST RK 1123-2002 Mechanical vehicles and trailers.  
158. Revised standard ST RK 962-93 Technical re gulation on tire production. Development, 
coordination and approval procedure.  
159. Revised standard ST RK 1086-2003 Technical di agnosis of vehicles a nd trailers. General 
technical specifications. 
160. Revised standard ST RK 3.18-2000 Machine bu ilding industry products certification. General 
provisions.  
161. Revised standard ST RK 3.26-2002 GSS RK . Special hoisting equipment certification 
procedure.  
  WT/ACC/KAZ/57 
 Page 159 
 
 
 ANNEX 8 
List of Goods Liable to State Veterinary Control  
 
FEA PN Code Item 
0101     Live horses, donkeys, mules, and hinnies 
0102 Livestock  
0103 Live pigs  
0104 Live sheep and goats 
0105 Live poultry, i.e. саllus dоmеstiсus (chicken), duck, turkey, and guinea fowl 
0106 Other live animals 
0201 Fresh or refrigerated meat of cattle 
0202 Frozen meat of cattle 
0203 Fresh, refrigerated or frozen pork 
0204 Fresh, refrigerated or frozen mutton or goat's flesh 
0205 Fresh, refrigerated or frozen flesh of horse, donkey, mule or hinny 
0206    Fresh, refrigerated or frozen food by-p roducts from cattle, pig, sh eep, goat, horse, donkey, 
mule or hinny 
0207 Fresh, refrigerated or frozen meat and food by-products from poultry (line 0105) 
0208 Other fresh, refrigerated or frozen meat and meat by-products 
0209 Fresh, refrigerated, corned or pickled, dried or smoked lard separated from lean meat, 
poultry fat (not melted into grease or not extracted by any other means) 
0210 Corned or pickled, dried or smoked meat and food meat by-products; meat-meal 
0301 Live fish 
0302 Fresh or refrigerated fish except for filleted fish and other fish meat in line 0304 
0303 Frozen fish except for filleted fish and other fish meat in line 0304 
0304 Fresh, refrigerated or frozen filleted fish  and other fish meat (including minced fish) 
 
0305 Dried, salty or pickled fish; hot or cold smoked fish; fish flour, powder and granules for 
food 
0306 Live, fresh, refrigerated, frozen, dried, corned or pickled shellfish; undivided shellfish 
steamed or boiled; flour, powder and granules from shellfish 
0307 Mollusk (clam), other invertebrate animal different from the shellfish and mollusk; flour, 
powder and pills from other invertebrate animals for food 
0401 Not condensed milk and cream without sugar or other edulcorators 
0407 Eggs in shell: fresh, canned or boiled 
0408 Eggs without shell and egg yolk: fresh, dried, steamed or boiled, moulded, refrigerated or 
canned by any other method 
0409   Natural honey 
0410 Other food products from animals, not specified in other lines 
0504 Animal bowels, bladder and stomach (except for fish): whole or in pieces 
0505 Skins and other parts of birds with feathers or fluff; feathers and parts of feathers …; and 
fluff, …: for storage but not for further pro cessing; powder and wast e from feathers and 
their parts 
0506 Bones and horns: unprocessed, defatted, after primary treatment (without 
moulding/shaping), treated with acid or de-g elatinized; powder and waste from such 
products 
0507 Ivory, turtle shell, whalebone…; horns, hoof, nails, claws, beaks: unprocessed or after 
primary treatment (without moulding/shaping); powder and waste from such products 
0509 Natural sponge of animal origin 
0510 Ambergris, castoreum, civet and musk; bile and dry bile; glands and other animal products 
used in pharmaceutics: fresh, refrigerated and frozen 
0511 animal products not specified in other lines , inedible perished (dead) animals of category 01 
or 03 
1501 Pig fat (including lard) and poultry fat, except for fat in line 0209 or 1503 
1502 Fat of cattle, sheep or goat, except for fat in line 1503 WT/ACC/KAZ/57 
Page 160  
 
 FEA PN Code Item 
1504 Fat, oil and their fractions from fish or sea mammal: refined or not refined, but with 
unchanged chemical composition 
1505 Wool grease and fat from it (including lanolin) 
1516 Animal or vegetable fat, oil and their fractions: refined and not refined, but unprocessed 
1518 Animal or vegetable fat, oil and their fractions: inedible boiled, oxidized, dehydrated, 
sulfonated or bodied by heating in vacuum or rare gas, except for goods in line 1516  
3002 Human blood; animal blood, immune serum (antiserum) and other blood fractions…; 
vaccine, toxin, germ cultures (excep t for yeast) and similar products 
3003 Medicine (except for line 3002, 3005 or 3006) made of two or more components, not 
packed 
3004 Medicine (except for lines 3002, 3005 or 3006) made of mixed or unmixed products…; 
packed for retail sale 
3005 cotton wool, gauze, bandage and similar products: packed for retail sale, designated for 
medical application in surgery, dentistry or veterinary 
3006 Pharmaceutical products men tioned in notes on this group 
3101 Animal or vegetable fertilizers: mixed or  unmixed, chemically processed or unprocessed 
3203 Vegetable or animal dye-stuffs (including extracts, except for animal coal) of known or 
unknown chemical composition an d chemicals made from them 
3802 Activated charcoal; activated natural mineral products; an imal coal, including waste animal 
coal 
4101 Skins of cattle or horse family an imals (untanned) with or without wool 
4102 Sheep or lamb skin…: with or without wool, except for the ones excluded in note 1 to this 
group 
4103 Other unprocessed skins and fells (rawstock)…, with or without wool, except for the ones 
excluded in note 1 (b) or 1 (c) to this group 
4104 Skin of cattle or horse family animals without wool, except for leather in line 4108 or 4109 
4105 Sheep or lamb skin leather without wool, except for commercial leather in line 4108 or 4109 
4106 Goat skin leather without wool, except for commercial leather in line 4108 or 4109 
4107 Other animals skin leather without wool, except for commercial leather in line 4108 or 4109 
4109 Enameled leather and laminated en ameled leather; metallized leather 
4110 Leather cuttings and other waste from natura l or artificial leather unsuitable for production 
of leather items, leather dust, powder and flour  
4111 Artificial leather based on natural leather or leather fiber: in plates or bands, in rolls or not 
in rolls 
4201 Harness leather items and harness for any animal (including trace s, bridles, knee-cap, 
horsecloth and similar goods) made from any material 
4206   Items made from animal bowels (except for catgut from natural silk), bladders or sinew 
4301 Fur rawstock (including heads, tails, … suitable for production of fur items), except for 
rawstock and commercial skins in lines 4101, 4102 or 4103 
4302   Tanned fur skins or leather, …packed or unpacked (without other materials added) except 
for the ones specified in the line 
5101 Uncombed and not carded wool 
5102 Thin or crude uncombed and not carded wool 
5104 Restored sheep wool and thin or crude restored animal wool 
5105 Sheep wool and thin or cr ude combed or carded animal wool (including combed wool in 
pieces) 
9018 Equipment and devices to be used in medicine, surgery, dentistry or veterinary, including 
planar nuclear imaging system, other electrical medical equipm ent and devices for research 
on eye 
9601     Processed ivory, bone, turtle shell, antle r, coral, nacre and other an imal materials for carving 
and items from these materials (including … by molding) 
  
  WT/ACC/KAZ/57
 Page 161ANNEX 9 
Decreasing Coefficients to the Existing Tariffs for Tr ansit Railway Transportati on of Goods in Kazakhstan  
 
Forwarder Freight type Nomenclature Code Destination Decreasing 
Coefficient Expiration Date by 
protocol 
  HS UTSFTN4    
For all forwarders  wood, timber 4403-4420  All destinations - Iran 0.7 1 January 2004 -
31 December 2004 
For all forwarders sugar beet  044009 Maimak-Lugovaya (from 
Kyrgyzstan to Kyrgyzstan) US$ 2.19/ton 1 January 2004 -
31 December 2004 
Aktau - Oasis 0.36 For all forwarders alumina 281820 151060 
Aksaraiskaya - Oasis (from 
Azerbaijan) 0.65 1 January 2004 -
31 December 2004 
Nikeltau-Aktau (to third 
countries except for Afghanistan) 0.56 For all forwarders metal-roll chapter 72-73  
Nikeltau-Oasis, Nikeltau-
Saryagash (to third countries except for Afghanistan) 0.7 1 January 2004 -
31 December 2004 
 
 
__________ 
 
 
 
                                                      
4 Unified Tariffs/Statistics Freight  Transportation Nomenclature.