WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  WT/TPR/M/170/Add.1 
13 December 2006 
 (06-5957) 
Trade Policy Review Body 
9 and 11 October 2006 Original:   English/Spanish 
                 anglais/espagnol                  inglés/español 
 
TRADE POLICY REVIEW 
KYRGYZ REPUBLIC 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Ms. Claudia Uribe (Colombia)  
 This document contains the advance written qu estions, and replies provided by the Kyrgyz 
Republic.1 
_________________________________________________________________________________ 
Organe d'examen des politiques commerciales 
9 and 11 octobre 2006  
EXAMEN DES POLITIQUES COMMERCIALES 
REPUBLIQUE KIRGHIZE 
Compte rendu de la réunion
 
Addendum  
Président:  S.E. Mme Claudia Uribe (Colombia) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par la République kirghize.1 
__________________________________________________________________________________ 
Órgano de Examen de las Políticas Comerciales 
9 y 11 de octubre de 2006 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
REPÚBLICA KIRGUISA 
Acta de la reunión  
Addendum  
Presidente:  Excma. Sra. Claudia Uribe (Colombia) 
 
 En el presente documento figuran las pr eguntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por la República kirguisa.1 
 
                                                      
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/170/Add.1 
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WRITTEN QUESTIONS BY MEMBERS  
SWITZERLAND  
Report by the Secretariat  
II.  TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES  
(4)  T RADE AGREEMENTS AND ARRANGEMENTS  
(ii)  Regional and other arrangements Page 31, Para. 28 indicates that participation in multiple  preferential trading agreements adds 
uncertainty to the Kyrgyz Republic's trade regime because of varying levels of progress and different 
rules, coverage, and implementation periods. It  further notes that the Kyrgyz Republic has no 
intention of integrating or rationalizing membership  in these agreements. Given the limited capacity 
of the Kyrgyz Republic in terms of human as well as financial resources, it would seem on the 
contrary that it could benefit from a greater transparency stemming from simplified rules and a harmonized coverage, and possibly also for more st reamlined implementation periods in its regional 
trade agreements. What are the measures taken by the Kyrgyz Government to simplify and harmonise 
the procedures for the trade of goods? 
(5)  F
OREIGN INVESTMENT REGIME  
(i)  Incentives and promotion  
Page 40, Para. 64 indicates that the Centre for Attraction of Direct Investment which was created in 
2000 does no longer operate a one-stop shop to assist investors obtain the necessary permits due apparently to financial constraints. Given the lim ited attractiveness of the Ky rgyz Republic for foreign 
investment flows, it would seem that measures facili tating inflows of foreign investment should be a 
priority of the Government's action. Would the Ky rgyz authorities consider reopening such a facility 
and, if yes, what financial resources would be necessary ? Could these resources not be provided in 
the short run through external aid and at a later stag e be financed through fees ? Has such an approach 
already been tested in the past ? 
III.
  TRADE  POLICIES  AND  PRACTICES  BY MEASURE 
(2)  M EASURES DIRECTLY AFFECTING IMPORTS  
(i)  Customs procedures 
Page 43, Para. 9 mentions that the State Customs Inspectorate is undergoing modernization and is 
developing a Single Automated Information System (SAIS). Could the Kyrgyz Government provide 
more details of this modernisa tion programme and, especially, a time schedule in which it plans to 
have the SAIS functioning. 
(ii) Tariffs  
Page 45, Para. 17: According to the notification rules to  the Integrated Data Base (IDB), WTO 
members are required to notify each year their applied tariffs. Could the Kyrgyz Republic indicate when it will notify its applied tariffs for 2004, 2005  and 2006, as the latest applied tariffs submitted 
date back from 2003? WT/TPR/M/170/Add.1 
Page 4  
 
(b)  Bound MFN rates 
Page 47-8, Para. 24:  According to paragraph 24, "applied tariff rates exceed bound levels on at least 
33 items, and in some cases by as much as 10 percentage points. The Kyrgyz authorities indicate that these inconsistencies will be eliminated." Could the Kyrgyz Republic specify if these inconsistencies 
have now been eliminated and, if not, when this would be the case? 
In addition some tariff lines are bound in non- ad valorem  terms while the applied tariff is in 
ad valorem  terms, which reduces the transparency of tariff bindings. Could the Kyrgyz Republic 
provide information regarding how it can ensure that the applied tariffs are not above the bound 
tariffs, in particular how it calculates the ad valorem  equivalents for these items ? 
(iii)  Other import charges 
Page 53, Para. 33:  The Report by the Secretariat indicates that  an ad valorem customs fee of 0.15% 
of the c.i.f. value of the import is levied to cover the costs of providing customs formalities.  
However, article VIII GATT stipulates that the fees shall be limited in amount to the approximate 
cost of services rendered and shall not represent an indirect pr otection to domestic products or a 
taxation of imports or exports for fiscal purposes. In addition, several panel decisions  and in 
particular "Argentina-textiles and apparel and United States -Customs User fee" states that: "an ad 
valorem  tax, by its very design, is not "limited in amount to the approximate cost of services 
rendered", as required by Article VIII:1(a):...An ad valorem  duty with no fixed maximum fee, by its 
very nature, is not 'limited in amount to the approxi mate cost of services rendered'. For example, high-
price items necessarily will bear a much greater tax burden than low-price goods, yet the service accorded to both is essentially the same. An unlimited ad valorem  charge on imported goods violates 
the provisions of Article VIII becau se such a charge cannot be rela ted to the cost of the service 
rendered ". 
We, therefore, invite the Kyrgyz Republic to bring, without delay, its ad valorem  customs fee in 
compliance with article VIII of GATT. 
(a)  Value-added tax 
Page 53, Para. 35:  Could the Kyrgyz Republic specify the rate of the value-added tax for the 
exceptions listed in this paragraph? 
(ix)  Government procurement 
Para 59:  Switzerland notes that Government procuremen t legislation was amended in May 2004 in 
the Kyrgyz Republic. What is the scope and nature of the amendments made and what are, in the 
opinion of the Kyrgyz authorities, the main issu es still to be resolved for complying with the 
conditions set out in the WTO Agreemen t on Government Pr ocurement (GPA) ?  
Para. 60:  The State Agency on Government Procurement and Material Reserves seems also to be in 
charge for the settling of disputes. According to § 61 , procurement decisions may also be appealed to 
the courts. What are the respective roles and mandates of the State Agency and the courts with regard 
to the dispute settlement in the field of government procurement ? 
Para. 61:  Can the Kyrgyz authorities give some indica tion regarding the respective market share of 
the procurements handled by (1) central aut horities, (2) local authorities and (3) sectors ? 
Para. 63:  The method of limited participation is operati ng with a two-stage tendering, while the first 
stage is the technical bid and the second the bid w ith prices. Do the Kyrgyz authorities not use the  WT/TPR/M/170/Add.1 
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method of selective tendering including procedures and criteria for qualification of potential suppliers 
as foreseen in the GPA ? 
(x)  State trading 
Page 60, Para. 64   mentions that the Kyrgyz Republic had not notified any state-trading enterprises. 
During the WTO accession, it indicated, however, that state-trading monopolies in the alcohol, 
tobacco and the electrical and thermal energy industries would be notified. Could the Kyrgyz 
Authorities please elaborate further on the actual status of state trading companies? 
(4)  MEASURES AFFECTING PRODUCTION AND TRADE  
(iv)  Competition policy and price controls 
Page 75, Para. 112  suggests that although in principle the National Agency for Anti-monopoly 
Policy and Competition Improvement is an independe nt agency under the President's Office, in 
practice its autonomy is uncertain and implementa tion of competition policy is rather weak. In 
particular, the agency appears to accept the pe rsistence of many monopolies, whether natural or 
authorized and does not seem to be able to sanct ion effectively their illegal activities. Could the 
Kyrgyz Authorities indicate whether they have any pl ans to reinforce the role  and the competence of 
the competition authority with a view to improving implementation of competition policy and, if so, 
could they indicate which measures they contemplat e to pursue such objectives ? Also, what are the 
prospects of reducing in the short to medium term the number of natural and authorized monopolies in 
the Kyrgyz economy ? 
IV.  TRADE  POLICIES  BY SECTOR 
(5)  M ANUFACTURING  
Table IV.6 . We appreciate the explanations given by the Kyrgyz authorities regarding the reduction 
of industrial activities in the sector of textiles. Wh at are the reasons for th e collapses observed in the 
production of vegetable oils since 2002 and centrif ugal pumps between 2004 and 2005 ? How do you 
explain the progressive increase of production of roofing sheets since 2000 ?   
Para 49.  We note that a new programme of industrial de velopment is being de veloped with a focus 
on high-value-added activities. What is the genera l architecture of the programme which in our 
understanding will involve a great number of nationa l policies such as education, research, finance, 
etc. ? Do the Kyrgyz authorities have an idea about the nature of the high-value-added activities to be 
developed ?  
JAPAN  
Report by the Kyrgyz Republic  (WT/TPR/G/170) 
IV.  TRADE AND TRADE-RELATED POLICIES 
(b)  Customs and tariff regulation (Page 24, paragraph 151) 
1.  Please indicate the outline of the draft Law on Customs Tariff for Imported Goods to the Kyrgyz 
Republic (The information on the draft law is not  placed on the official website in English). WT/TPR/M/170/Add.1 
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Report by the Secretariat
 (WT/TPR/S/170) 
III.  TRADE POLICIES AND PRACTICES BY MEASURE (2)  M
EASURES DIRECTLY AFFECTING IMPORTS  
(i)  Customs procedures (Page 44, paragraph 13) 
2.  Please indicate specific measures taken by the Kyrg yz Government to tackle with the corruption by 
custom officials. 
(i)  Customs procedures 
(Page 45, paragraph 15) 
3. Please indicate how the "Government Resolution on  Comprehensive Action Plan on Prevention of 
Illegal Importation and Trade of Goods, No. 726, September 2004" has been executed and what kind 
of results are obtained from the Plan. 
IV.  TRADE POLICIES BY SECTOR 
(6)  S
ERVICES (OTHER THAN ENERGY ) 
(i)  Financial services 
(Page 102, paragraph 55) According to Table IV.7, while the share of bank non-performing loans to total loans has fallen, the 
absolute amount of bank non-performing loans s hows a sharp increase accompanied by the extremely 
high incidence of total bank assets. 
4.  Please explain the reason why the amount of total bank assets has been rapidly increasing as well 
as whether such rapid rise in total bank assets is evaluated as sound.  
(ii) Telecommunications (Page 109, paragraph 81) 
The Secretariat report states that the interconnecti on rules in the telecommunications sectors were 
established in 2003, but raise some concerns. 
5. Please explain the specific concerns rose in the interconnection rules.  WT/TPR/M/170/Add.1 
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UNITED STATES OF AMERICA  
Secretariat Report  
TRADE POLICIES AND PRACTICES BY MEASURE Tariffs – Structure 
1.  Paragraph 23 on page 47 of the Secretariat Re port explains that the Kyrgyz Republic does not 
currently apply seasonal duties, but applied an "addi tional seasonal tariff" of 20 percent to wheat and 
flour during 2002 and 2003.   
As the Kyrgyz Republic bound duties for these goods at 10 percent, please explain how this 
practice in light of the Kyrgyz Republic’s WTO obligations? 
Tariffs – Bound MFN rates 
2.  Paragraph 24 on page 47 of the Secretariat Repor t identifies 33 items for which applied tariff rates 
exceed bound levels, some by as much as 10 percentage points.   
What steps is the Kyrgyz Republic taking to rec tify this situation and br ing these tariffs within 
their WTO bounds or to initiate negotiations fo r compensatory adjustment with interested 
suppliers? 
Measures Directly Affecting Imports - Import quotas and licensing  
3.  Paragraphs 49 through 54 of the Secretar iat Report address import quotas and licensing.  The 
Kyrgyz Republic provided its responses to the Import Licensing Questionnaire on May 3, 2000.   
We ask that the Kyrgyz Republic provide an updated submission of its Replies to the Import 
Licensing Questionnaire, as this is an annual requirement of all Members as stated in 
article 7.3 of the Agreement on Import Licensing.   
Measures Directly Affecting Imports - Standards and other technical requirements (including 
SPS) - Standards, testing, and certification 
4.  We note that paragraph 71 on page 61 of the Secretariat Report references "Government 
Resolution No. 639 on List of Products Subject to Mandatory Conformity Assessment, 
December 2005" and footnote 58 references "Gov ernment Resolution No. 8 on Procedures for 
importation of products subject to mandatory confor mity certification, 11 January 2006."  However, 
the Kyrgyz Republic has not made any notifications to the WTO under the Agreement on Technical Barriers to Trade.  
What steps is the Kyrgyz Republic taking to fulfill its notification requirements under the 
Agreement on Technical Barriers to Trade?   
5.  Paragraph 75 on page 63 of the Secretariat Re port states "the Government is still developing 
implementing resolutions aimed at establishi ng an independent national accreditation body. 
Regulations on self-declaration assessment, although allo wed for in the legislation, are also being 
developed."  
Could the representative of the Kyrgyz Republic  provide an update on the status of these 
regulations and indicate whether the draf t regulations will be notified for comment  to the 
WTO?  WT/TPR/M/170/Add.1 
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Measures Directly Affecting Imports - Standards and other technical requirements (including 
SPS) - Sanitary and phytosanitary regulations 
6.  We appreciate the sanitary, phytosanitary and environmental information included in the 
Secretariat’s Report.  We note that the Kyrgyz Re public has not made any notifications to the WTO 
under the Agreement on the Application of Sanitary and Phytosanitary Measures.  
A. What steps is the Kyrgyz Republic taking to fulfill its notification requirements under 
the Agreement on the Application of Sanitary and Phytosanitary Measures?    
B. Which ministry is responsible for publishi ng draft SPS measures in an official journal 
and which ministry is responsible fo r meeting the Kyrgyz Republic’s WTO 
obligations of National Notification Authority and Enquiry Point?   
7.  Paragraph 82 on page 64 of the Secretar iat report highlights that the Kyrgyz Republic’s 
Department of State Veterinary Services of the Ministry of Agriculture "is planning to establish an SPS enquiry point".   In the working party re port for Kyrgyz accession WT/ACC/KGZ/26 page 40 
paragraph 103, the Kyrgyz Republic pledged to appl y all sanitary requirements  consistent with the 
WTO SPS agreement.   
What actions will the Kyrgyz Republic undertake to ensure the expeditio us establishment of 
an SPS Enquiry point and compliance with the WTO SPS Agreement?    
8.  Paragraph 85 on page 65 of the Secretariat Repor t indicates that the Kyrgyz Republic requires that 
for any agricultural product which requires a phyto sanitary certificate, an import certificate is also 
required.  This double requirement spans a broad ra nge of commodities, including plants for planting 
(including seeds) of agricultural, forest, and orna mental plants; fruit and vegetables; and plant parts 
that may carry quarantine pests.    
Could the Kyrgyz Republic explain why these duplicative requirements are necessary?   
Measures Directly Affecting Exports - Tax incen tives, subsidies, free zones, and export-
performance requirements - Free economic (export-processing) zones 
9.  According to paragraph 98 on page 70, there are currently 650 entities registered in Kyrgyz’s four 
FEZs, for whom "comprehensive tax incentives" apply, such as income tax and customs duty 
exemptions, and that these FEZs are to be abolished, except for Bishkek. 
Could the representative from the Kyrgyz Republ ic please provide additional information 
regarding the criteria by which companies qualif y to operate in the FEZs.  For example, are 
there any export performance or local content requirements? 
Measures Affecting Production and Trade - Budgetary support and tax concessions 
10.  Paragraph 105 on page 72 of the Secretariat Report identifies th e "parastatal" AiyilTechService as 
"the dominant (if not sole) formal importer and wholesaler of farm machinery," and states that AiyilTechService "receives high levels of govern ment support (mainly from off-budget grants)." 
A. Could the representative from the Kyrgyz Republic please explain to what extent 
AiyilTechService is owned by the government, either at the national or sub-national 
level? 
B. Please provide additional information re garding the "off-budget grants" that the 
company receives in government support.  WT/TPR/M/170/Add.1 
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Intellectual property rights – Patents  
11.  With regard to paragraph 126 on page 79 of the Secretariat Report, which discusses the Kyrgyz 
Republic’s patent regime, we would a ppreciate additional information.   
A. How does the Kyrgyz Republic law comply with TRIPs Article 39.3 regarding 
protection of undisclosed test or other data against unfair commercial use? 
B. Does importation of a patented inventi on into the Kyrgyz Republic satisfy the 
requirement that an invention be "used" in the Kyrgyz Republic to avoid a 
compulsory license? 
C. How does the Kyrgyz Republic law comply with TRIPs Article 34 regarding reversal 
of the burden of proof? 
D. How does the Kyrgyz Republic law comp ly with the safeguards listed in TRIPs 
Article 31 concerning the issuance of compulsory licenses? 
Intellectual property rights – Trade marks and other marks, including trade names 
12.  It is unclear how well-known marks are protect ed in the Kyrgyz Republic. Article 5 of the "The 
Law of Kyrgyz Republic on Trademarks, Service Ma rks and Appellation of Origin of Goods" states 
that the criteria for a well known trademark are established by the government of the Kyrgyz Republic.  However, the trademark law does not me ntion the criteria used for protecting well known 
marks.  Moreover, the Law does not indicate whether unregistered  well-known marks are protected. 
How will the provisions of the Paris Conven tion Article 6bis and TRIPs Article 16 be 
incorporated into laws which require unregist ered well-known marks to be protected against 
uses that are likely to be confused with the well-known mark? 
Intellectual property rights – Geographical Indications 
13.  We note that the Kyrgyz Republic has enacted legislation to protect geographical indications 
under a system as appellations of origin.   
Please confirm that the rights of trademark owners, consistent with Articles 16(1) and 24(5) of the 
TRIPs agreement, are protected.  In particular, please confirm whether trademarks in the Kyrgyz 
Republic would be protected from confusingly sim ilar and later-in-time ge ographical indications. 
EUROPEAN COMMUNITIES
 
I.  ECONOMIC ENVIRONMENT 
(3)  S TRUCTURAL POLICIES  
Report by Kyrgyz Republic , pages 14-17 
We would be interested in further information on the economic and fiscal measures implemented by 
the government, including information on the fiscal  instruments to be applied in the future. 
We would be interested in further information on tax reform, including on the plans to strengthen the 
tax administration (revenue coll ection) and to reduce taxes. WT/TPR/M/170/Add.1 
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(4)  D
EVELOPMENTS IN TRADE  
WTO Secretariat's Report , pages 12-15 
Could further information be provided on future pl ans to secure and promote direct exports to the 
Kyrgyz Republic? 
(5)  T RENDS AND PATTERS IN FOREIGN INVESTMENT  
(6)  O UTLOOK  
WTO Secretariat's Report , pages 16-19 
Report by Kyrgyz Republic , page 34 
Could further information be provided on future  plans to secure and promote direct foreign 
investment?  
What issues will be addressed in the ongoing re vision of the current Law On Investments?  
II.  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES Report by Kyrgyz Republic
, page 23 
What is the current situation regarding a bill accepte d by the Kyrgyz Parliament some time ago, "on 
countering the financing of terrorism and legalization of the illicit income"? 
In practical terms, we would be interested to know  which more concrete efforts are planned for the 
near future in order to secure the financial system.  
(3)  T RADE POLICY FORMULATION AND IMPLEMENTATION  
WTO Secretariat's Report , pages 22-23 
Report by Kyrgyz Republic , page 52 
From the information provided, we understand that one of the objectives of Kyrgyz trade policy is to 
help promote export diversification, with a view  to focus on value added sectors and exports of 
finished products. 
What measures / initiatives has the country alread y undertaken to diversify its export base and 
markets? 
What is the anticipated schedule for the adopti on of the Programme for Export Development for 
2006-2008 and the Programme for Industrial Development 2006-2008? 
Sustainable development 
Does the issue of trade and sustainable developmen t fit into Kyrgyz Republic's overall development 
strategies? 
Trade and environment 
What mechanisms does Kyrgyz Republic have in place to ensure adequate coordination of 
environmental policy and trade policy?   WT/TPR/M/170/Add.1 
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III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  MEASURES DIRECTLY AFFECTING IMPORTS  
(i)  Customs procedures WTO Secretariat's Report
, page 43 
The Kyrgyz Republic has undertaken a number of  Trade Facilitation measures, notably through a 
reform of its customs code in 2004. However,  the WTO Secretariat's Report notes that customs 
formalities and procedures, both formal and informal, restrict imports.  
What reforms are planned to address this?  What concrete technical assistance  needs does the Kyrgyz Republic have to help it take forward the 
reform process?  
Does the Kyrgyz Republic have plans to reforms it customs' fees, which are not cost based and where 
the WTO Secretariat's Report notes business concerns?  
(viii)  Contingency measures 
WTO Secretariat's Report
, pages 58-59 
Could the Kyrgyz Republic clarify on which legal b asis it would impose anti-dumping measures or is 
Article 3 of the Agreement on Implementation of Artic le VI of the General Agreement of Tariffs and 
Trade 1994 directly applicable? 
(ix)  Government procurement 
WTO Secretariat's Report , page 59 
Paragraph 59 :  Although observer of the GPA, The Kyrg yz Republic has been an observer in the 
GPA Committee for some time. Now that new Govern ment procurement legislation has been adopted, 
would the Kyrgyz Republic consider becoming more active?  
Paragraph 62 :  WTO Secretariat's Report mentions 20% preferential price margins for domestic 
suppliers on goods and services; as th ey can be considered quite high by world standards, would the 
Kyrgyz Republic envisage to reduce them and if so, when?  
Paragraph 63 :  When does the Kyrgyz Republic plan  to introduce electronic procurement?  
Related directly to the normal procedures of contr act launching and establishment, does the legislation 
on public procurement cover all public entities awarding contracts? Does it cover all kinds of sectoral 
procurement? Where and how do public entiti es publish tender notices? Are these publication 
requirements enforced in practice? What is the st atus at this moment regarding the Draft Law on e-
Procurement? 
In respect to Kyrgyz official bodies (in particular the State Agency for Government Procurement), are 
there any plans to reinforce their administrative capacity?  
In respect of the application of legal texts, what review procedures are available in the event of an 
alleged public procurement infringement of the rul es? Which administrative or judicial bodies conduct 
this review? What powers do they have? WT/TPR/M/170/Add.1 
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(xi)  Standards and other technical requirements 
WTO Secretariat's Report
, pages  61-64, paras 70-81 
When will the Kyrgyz Republic complete its review  of technical regulations and standards? Is it on 
target to end its transitional period in 2009? 
Please explain the reference to "non-operational standa rds" in paragraph 72. Why have these not been 
eliminated? 
Is it true that many imports that meet internationa l standards and have been certified abroad still need 
to undergo domestic testing and certification (parag raph 74) ? What is being done to stop this? 
(4)  MEASURES AFFECTING PRODUCTION AND TRADE  
(iv)  Competition policy and price controls 
WTO Secretariat's Report , page 75, footnote 115 
What is the current state of the new draft Law on Competition? 
(v)  Intellectual property rights 
WTO Secretariat's Report , page 80, footnote 128 
We would be interested in further information on parallel trade from / to the Kyrgyz Republic. 
IV.  TRADE POLICIES BY SECTOR (6)  Services Postal services 
How are the concepts of Universal  Service Obligation and the reserved area granted to the incumbent; 
has this been established in the country?  
Which licence and authorisation systems are a pplied to postal operators on the territory?  
Do quality service targets and a form of assessment/m easurement already exist? What kind of tariff 
regime is in place? 
CANADA
 
Report by the Secretariat  (WT/TPR/S/170 ) 
Section III.  Trade Policy by Measure, (4) Measures Affecting Production and Trade, 
(V) Intellectual property rights, page 81 and page 82, paragraph 137  
1.  The Secretariat Report notes that despite  "new enforcement powers by Customs, and many 
regional agreements covering intellectual property, the incidence of imported pirated copyright and 
trade mark products in the Kyrgyz Republic still seems high" and that "questions also arise as to the 
competence of courts, and the judicial system ge nerally, to handle intellectual property cases". Canada 
appreciates the Kyrgyz Republic’s  efforts on intellectual property.  WT/TPR/M/170/Add.1 
 Page 13 
 
 
Would the Kyrgyz Republic be able to provide information regarding measures which it may be 
considering to strengthen its institutional capac ity to enforce intellectual property rights?  
Section IV.  Trade Policies by Sector, (3) Mining, page 91, paragraphs 27- 33  
2.  Canada appreciates the description of Kyrgyzstan’s mining sector in the Secretariat's Report.  
Given the current significance of the mining sector to GDP and the fact that the mining sector is a government priority, would the government of the Kyrgyz Republic provide more detailed 
information regarding the policy approach it h as in place to promote future exploration and 
development? 
a)  Does the Kyrgyz Republic have in place a tran sparent, non-discriminatory, and predictable process 
for determining under what  conditions a licence can be granted or revoked? 
3.  Canada notes that the Industry Ministry is r esponsible for implementing a uniform national policy 
on industry development, including mining and metallurgy.  
Could the Kyrgyz Republic provide more informati on on the contents of this policy and advise as to 
whether any changes are planned? 
4.  Canada notes that Kyrgyz Republic adopted the Extractive Industries Transparency Initiative 
(EITI) in May 2004.  
Could the Kyrgyz Republic please provide an update  regarding implementation of EITI, including any 
developments toward an action plan? 
Part IV.  Trade Policies by Sector, (6) Servi ces (Other than Energy), (v) Tourism, page 116, 
paragraph 101 and 102 
5.  According to the Report, fore ign investment in tourism is unrestricted and foreigners can freely 
provide tourism services. Footnote 122 further note d a piece of legislation, which originally intended 
to limit foreign investment in tourist facilities to 49 percent, was not passed. Paragraph 102 indicates, 
however, that foreigners cannot own tourist facilities in the Lake Issyk-Kul region.  
Please clarify whether full foreign participation is a llowed or if there are geographical limitations in 
place. 
6.  The Report states that "the Ministry of Industr y, Trade and Tourism, responsible for tourism policy 
and implementation, cancelled in 2001, licensing of tourist faciliti es."  Could you please explain why 
the licensing of tourist facilities was cancelled?  
7.  According to the Report, the only regulat ory functions currently performed by the above 
mentioned Ministry are coordination and monitoring. Would you please elaborate on the specific functions that are covered in the coordina tion and monitoring of tourist services?  
8.  The Report also indicates that  the government seeks to double tour ist numbers within three years.  
Could the Kyrgyz Republic please elaborate on what policy changes or initiatives are being 
contemplated to help reach this government objective?  WT/TPR/M/170/Add.1 
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Report by the Government of the Kyrgyz Republic
 (WT/TPR/G/170) 
Part IV.  Trade and Trade-related Policies, (6) Tourism, page 45, paragraph 324 
9.  According to the Report, the Presidential d ecree on Creation of Favorable Conditions for Tourist 
Period in 2005 and Actions to Further Development of Tourism in the Kyrgyz Republic of August 2005 (No. 307) recognizes tourism as a priority  sector with sufficient export opportunities and 
capacity for budget allocations.  
Would you please explain what favourable conditions a nd actions have been or are being considered 
to help realize these export opportunities? 
Part IV.  Trade and Trade-related Policies, (6) Tourism, page 45, paragraph 326: 
10.  The Report makes reference to national policy and market reforms that have facilitated the 
development of the market for tourist services. What  specific market reforms have been of significant 
help in this regard? 
Additional questions
 
1.  KR notes that a new version of the Law of KR "On Subsurface Resources" is being prepared. Is 
KR able to give us a sense of the scope of the revi sions planned? What is the current timetable for the 
new version to be implemented? 
2.  KR also notes it intends to simplify the procedures for receiving deposits and mines for 
development purposes.  Is KR able to share with  us how the procedures are to be simplified? 
3.  KR notes that it intends to improve the Tax Code . This is positive news. Again, can KR provide us 
with an indication as to how the Code will be  changed and when theses changes are to be 
implemented? 
4.  KR states that the issuance or cancellation of a license is "discussed collegially by the 
special license commission of the authorized state body on subsurface resources use".  Does the 
license commission operate with a standardized set of  criteria which are made available in a timely 
manner to applicants and to pers ons for whom cancellation of a li cense is under consideration? How 
does KR ensure that license applicants and reci pients are treated in a non-discriminatory and 
consistent manner?  Is there an appeals mech anism from decisions of the license commission? 
TURKEY  
II.  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(1)  INTRODUCTION  
(4)  TRADE AGREEMENTS AND ARRANGEMENTS  
WT/TPR/S/170 , Paras 3, 28 
The Secretariat report notes that the Kyrgyz Republ ic’s membership to multiple preferential trade 
agreements with varying  levels of progress, diffe rent rules and coverage etc. creates uncertainty to 
trade regime. 
Could Delegation of Kyrgyz Republic  explain how it considers to deal  with  possible  
implications  that might arise from differing commitments under various preferential trade 
agreements?  WT/TPR/M/170/Add.1 
 Page 15 
 
 
II.  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(5)  F OREIGN INVESTMENT REGIME  
WT/TPR/S/170 , Para 57- 61 
It is understood that, improving investment climate is a key priority and in this regard steps taken by 
the Kyrgyz Republic to attract forei gn direct investment is appreciated. 
However, as the Secretariat repor t mentions there still  exist hampering barriers to attain fully 
favourable business climate in the co untry such as  weak legal  ins titutions, corruption,  excessive red 
tape, administrative barriers etc. 
Among all these barriers that run counter  investment  friendly environment we have noted that a 
requirement for foreign investors since 2002 to pay the equivalent of the foreign worker’s full salary 
into the Social Fund, while domestic investors contribute only 28% according to the Secretariat 
report. 
We would appreciate the Kyrgyz Republic’s expl anation  to clarify the need for such a 
discriminatory treatment for foreign investors. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  M EASURES DIRECTLY AFFECTING IMPORTS  
WT/TPR/S/170 , Para 24 
It is noted at the Secretariat Report that applied tariff  rates  exceeded   bound levels  on at least 
33 items in 2006. 
Could  Delegation of Kyrgyz Republic inform us on  this inconsistency  with her WTO 
commitments?  
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  M EASURES DIRECTLY AFFECTING IMPORTS  
WT/TPR/S/170 , Para 34 
Secretariat report notes that all foreign road hauliers transporting goods to or from the Kyrgyz 
Republic  must obtain a special permit from the Ministry of Transport  and Communications in 
accordance with intergovernmen tal agreements on international road communication. 
According to the report foreign hauliers who do not have special permits are charged a US$ 250  fee, 
unless otherwise stipulated by an intergovernmental agreements. 
Which criteria is applied  to set the level of the above mentioned fee? 
We understand from footnote 30 that the le vel of the fee may differ among countries. 
Could Kyrgyz Republic further inform us on the  application criteria of this fee? WT/TPR/M/170/Add.1 
Page 16  
 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  M
EASURES DIRECTLY AFFECTING IMPORTS  
WT/TPR/S/170 , Paras  64- 69 
In light of the Secretariat’s report, we have been  informed that the Kyrgyz Republic has not notified 
any state trading enterprises. 
Does the government plan to make necessary noti fications on state-owned entities operating in 
various fields of the economy such as Kyrgyz Temir, Kyrgyztamekisi and Kyrgyzgaz?  
III.  TRADE POLICIES AND PRACTICES BY MEASURE (3)  M
EASURES DIRECTLY AFFECTING EXPORTS  
WT/TPR/S/170, Para 101  
What kind of measures has been  planned with in  2006-08 export promotion program  to 
improve export quality? 
III.  TRADE POLICIES AND PRACTICES BY MEASURE (4)  M
EASURES DIRECTLY AFFECTING PRODUCTION AND TRADE  
WT/TPR/S/170 , Para 103, Footnote 96 
Although some steps have been taken,  it is noted that corruption is widespread within the country. 
Have any measures been implemented so far upon the ratification of the UN Convention 
Against Corruption? 
III.  TRADE POLICIES AND PRACTICES BY MEASURE (3)  M
EASURES DIRECTLY AFFECTING EXPORTS  
WT/TPR/S/170 , Para 112 
According to the Secretariat Report, the  National Agency for Anti-monopoly and Competition 
Improvement which is responsible for administeri ng competition legislation’s autonomy is uncertain. 
Are there any plans to ensure the autonomy of  this Government Agency which is the sole 
authority to prevent unfair competition?  
BRAZIL  
WT/TPR/S/170 , IV (1) paragraph 03 page 83 
According to the Report, "agricultural policy seeks to  raise rural incomes and achieve food security by 
2010.  This is to be achieved in wheat, poultry, eggs , dairy products, vegetabl es, lamb, beef and other 
meat, sugar, and vegetable oils.  The policy to fu rther this goal comprises increasing the Government's 
role by setting production targets,  providing support and protection,  and directing farmers what to 
produce".  Could the Government of Kyrgyz provide  a more comprehensive overview regarding that 
policy?  WT/TPR/M/170/Add.1 
 Page 17 
 
 
WT/TPR/S/170 , II (3) (i) paragraph 11 page 22 
The report highlights that "the Kyrgyz Republic's general trade policy objectives include achieving a 
more outward-oriented trade regime, increasing overseas market access for exports, and integrating more into the world economy".  What woul d be the initial steps to achieve these goals? 
WT/TPR/S/170
, II (4) (II) paragraph 42 page 35 
According to the Secretariat Report, an eventu al adoption of the EAEC tariff structure might 
adversely affect the Kyrgyz Republic's WTO commitm ents, since it could increase the applied tariff 
above the bound tariff.  Could the Kyrgyz Government provide more information, especially regarding the tariff lines and sectors that might be affected? 
WT/TPR/S/170
, II (4) (III) paragraph 56 page 38 
The Secretariat Report informs that the Kyrgyz Rep ublic provides duty free treatment to all imports 
from least developed countries.  We commend this in itiative and additionally would like to have some 
more information regarding the following aspects: 
Does the duty free treatment comprise all products imported from LDCs? 
Are there any exclusions or exceptions? 
How have these imports from LDCs progressed since the duty free treatment was granted ? 
WT/TPR/S/170 , III (2) (X) paragraph 64 page 60 
The Secretariat Report informs that the Kyrgyz Re public practices a liberal trade regime.  On the 
other hand, also according to the Report, it seems th at there is still  no intention to abolish state 
trading in alcohol or tobacco.  Considering that the Kyrgyz Republic is a market oriented economy, 
we would like to know the views of the authorities about this point, regarding the reasons for the 
maintenance of such practice and the prospects for its modification. 
WT/TPR/S/170 , III (2) (V) paragraph 44 page 55 
a)  Could the Kyrgyz Republic inform us what aut hority is responsible for issuing the certificate of 
origin when it is required by importing countries? 
WT/TPR/S/170 , IV paragraph 52 page 100 
In the Secretariat's Report, it is mentioned th at "the Kyrgyz Republic undertook commitments on 
545 subsectors and activities during accession, incl uding no market access or national treatment 
restrictions under almost all sectors and modes of  supply (except for a small number of strategic 
services and mode 4)". 
Please inform:  (a) Which are these strategic services?  Please inform also the domestic regulation 
measures, as per GATS Article VI.4, re lated to qualification requirements and 
procedures, technical standards and license requirements, in the following sectors:  
Sectors 1.A 
 (d) architectural services;  (e) engineering services; 
 (f) integrated engineering services, 
 (g) urban planning and landscape architectur al services;  1.B computer and related 
services;  and 3. construction and related services. WT/TPR/M/170/Add.1 
Page 18  
 
COLOMBIA
 
Trade Policy Review Report by Kyrgyz Republic  
Customs and tariff regulation 
Table No. 5 indicates that the number tariff lines subject to specific duties has increased:  from 
14 lines in 1999 to 155 lines in 2006. 
Could you explain the reasons to increase the num ber of tariff lines with specific duties?  
Could the authorities of Kyrgyz Republic regard that specific duties redu ce the transparency of 
custom duties? 
Trade Policy Review Report by Secretariat  
Import quotas and licensing (pag. 56) 
According to foot note 45 licenses of tobacco l eaf and products were can celled in January 2001. 
Could explain why these products still are in the list of imported goods subjected to licensing Table III.2? 
SINGAPORE
 
Paragraph 102, page 71 of the report by the Secretariat, states that "the business climate remains 
unconducive to private economic activity.  Ad ministrative barriers to doing business impose 
substantial delays and added cost s."  Will the delegation of the Kyrgyz Republic please elaborate on 
the steps which would be taken to improve the business climate?  WT/TPR/M/170/Add.1 
 Page 19 
 
 
REPLIES BY THE KYRGYZ REPUBLIC  
SWITZERLAND  
Report by the Secretariat  
II.  TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES (4)  T
RADE AGREEMENTS AND ARRANGEMENTS  
(ii)  Regional and other arrangements 
Page 31, Para. 28   indicates that participation in multiple preferential trading agreements adds 
uncertainty to the Kyrgyz Republic's trade regime because of varying levels of progress and different 
rules, coverage, and implementation periods. It  further notes that the Kyrgyz Republic has no 
intention of integrating or rationalizing membership  in these agreements. Given the limited capacity 
of the Kyrgyz Republic in terms of human as well as financial resources, it would seem on the 
contrary that it could benefit from a greater transparency stemming from simplified rules and a 
harmonized coverage, and possibly also for more st reamlined implementation periods in its regional 
trade agreements. What are the measures taken by the Kyrgyz Government to simplify and harmonise 
the procedures for the trade of goods? 
Mainly the procedures on harmonization of trade in  goods are realized within EuroAsian Economic 
Community (EAEC). 
Among the real results of integration cooperation of  EAEC members within 5 years of its existence, it 
is necessary to pint out the following:  
 - elimination of customs duties in mutual trade of goods, functioning  of the  Free Trade 
regime without impressments and restrictions on the basis of bilateral agreements, transition to the collection of indirect taxes by "country of destination", forming the 
common customs tariff among the three count ries Belarus, Kazakhstan and Russia, 
working out the Nomenclature of Goods of  External Economic Activity based on 
10 digits, adoption of numerous inter national acts, aimed on harmonization of 
external trade, tax, customs and currency legisl ation, as well as in energy, transport 
and in the field of social relations. Kyrgyz Republic is the member of all these 
mentioned international acts  
(5)  F
OREIGN INVESTMENT REGIME  
(i)  Incentives and promotion  
Page 40, Para. 64   indicates that the Centre for Attraction of Direct Investment which was created in 
2000 does no longer operate a one-stop shop to assist investors obtain the necessary permits due apparently to financial constraints. Given the lim ited attractiveness of the Ky rgyz Republic for foreign 
investment flows, it would seem that measures facili tating inflows of foreign investment should be a 
priority of the Government's action. Would the Ky rgyz authorities consider reopening such a facility 
and, if yes, what financial resources would be necessa ry? Could these resources not be provided in the 
short run through external aid and at a later stage be financed through fees? Has such an approach 
already been tested in the past? 
Attracting foreign direct investments (FDI) to the nati onal economy is one of the priority directions of 
economic policy of the Government of the Kyrgyz Republic and reciprocal economic cooperation of 
the Kyrgyz Republic with the foreign countries.  WT/TPR/M/170/Add.1 
Page 20  
 
In order to improve the investment climate in the country and it’s competitiveness for world 
investments, the Government of the Kyrgyz Republic is taking a ll measures on forming favorable 
business terms and improving the conditions of attracting direct investments to the Republic.  
In this connection, a measures aimed on deregul ation of the economy, inclusion of unjustified  
intervention of state bodies into the activity of th e entities are taken, at the same time administrative 
barriers and restrictions in the field of investment and other business activity are being eliminated, 
and the new approaches in managing the market relations are introduced.  
The functions on attracting and promoting foreign direct  investments in due time were charged to the 
Ministry of External Trade and Industry (Center for attracting foreign direct investments, which was 
abolished), Ministry of Agriculture and processing industry, Ministry of transport and 
communications, State Committee on state property and attracting foreign direct investments and 
others.  
With a view of strengthening the State policy in attracting and promoting direct investments, 
Department of direct investments policy was create d within the Ministry of Economy and Finance of 
the Kyrgyz Republic. Newly-created Department is res ponsible for coordination of activities of the 
state agencies in order to achieve more successful promotion of the country’s investment potential. It 
is also necessary to develop assisting the investo rs by establishing the one-window system "One-Stop-
Shop", which will contribute the potential investo rs by giving more qualitative consultation services, 
this, in its turn will positively influence the investment climate. Investors, in th eir turn, may assist the 
One Stop Shop, for instance by ensuring office equipment, Internet connection and so on. 
Currently, an External Marketing Strategy has been  worked out by the Department on foreign direct 
investments and sent for approval. After approval of  this document, a concrete action plan of the 
ministries and agencies will be adopted, for attracting investments.  
In order to effectively solve the matters relate d to the attraction and promotion of the direct 
investments, an issue of establishing interdepar tmental deliberative body "Investment Council" 
involving the representatives from concerned mi nistries and agencies is being worked over.   
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)
  MEASURES DIRECTLY AFFECTING IMPORTS  
(i)  Customs procedures 
Page 43, Para. 9  mentions that the State Customs Inspect orate is undergoing modernization and is 
developing a Single Automated Information System (SAIS). Could the Kyrgyz Government provide 
more details of this modernisa tion programme and, especially, a time schedule in which it plans to 
have the SAIS functioning. 
As a result of the 2-year work conducted in colla boration with Asian Development Bank, the ADB 
Board approved a loan equivalent to $7,5 millio n for the Kyrgyz Republic to implement the Customs 
Modernization and Infrastructure Development Project  (hereinafter, the Project). The loan took force 
on 23 February 2006 and it is expected that it will be implemented by December 2009. 
The Regional Project is a continuation of the ADB’s support to reform and modernize customs bodies 
in Kyrgyz Republic and Tajikistan. This project will facilitate strengthening of the customs/ legal and 
regulatory reforms currently underway as supporte d by the Regional Customs Cooperation Program 
and will improve the efficiency and transparency of the customs services. The project will also 
facilitate the conduct of harmonized activities in cu stoms reform and modernization in the region of 
Eastern and Central Asia and will, thus, ensure a fa vorable legislative and physical infrastructure  WT/TPR/M/170/Add.1 
 Page 21 
 
 
needed to enhance the regional customs cooperation and the development of the economy in the 
region overall.  
Project components Bank (in million USD 
ICT 5,0 
Infrastructure 2,5 
TOTAL 7,5 
Project goals : 
 1. To improve the efficiency and transparen cy of the activities of the customs service. 
 2. To strengthen the customs legislation reform.  3. To simplify customs procedures.  4. To facilitate trade and regional customs cooperation. 
Expected results
: 
 1. Promptness of control of activities of the customs bodies. 
 2. Transparency in relations among ot her controlling bodies and foreign trade 
participants. 
 3. Compliance of the customs procedures at  the borders with international standards.  
 4. Change of the staff policies and enhancem ent of qualification of the customs bodies’ 
officers. 
 5. Creation of a unified information space for customs purposes.    6. Creation of a modern market  for customs-related services. 
Mechanism of implementation
 
The Ministry of Economy and Finance of Kyrgyz Republic is the Executive Agency (EA) for this 
Project while the State Customs Inspectorate (SC I) under the Government of Kyrgyz Republic is the 
Implementing Agency (IA). The EA will bear the o verall responsibility for implementation of project 
activities, while the very and immediate project implem entation will be the responsibility of the SCI.  
In addition, a Project Coordination Committee (PCC) has been created to manage the overall 
direction and coordinate issues related to project implementation. PCC will be headed by the SCI 
Director and will include representatives of appropriate  ministries and agencies as well as the private 
sector. In order to control the daily implementa tion of the project, a Project Management Office 
(PMO) has been created under the SCI. 
The project consists of 2 components:   (i) Development of the Unified Automa ted Information System (UAIS);  
 (ii) Development of the infrastructure for the checkpoints. 
The project also includes: 
 - technical assistance (TA 4450-KGZ) to build capacity and strengthen the institutional 
opportunities for the Project which will complement the development and 
implementation of the UAIS by rendering support to change management, formalization of customs procedures, en suring of quality and guarantees related to 
the development and implementation of the sy stems, and consultations with the staff 
of the customs service and private sector  to ensure sustainability and widespread WT/TPR/M/170/Add.1 
Page 22  
 
support of the process of modernization of the customs service. The TA is funded 
through a grant and includes four components: (i) support of reforms and partnership between the state and private sectors; (ii) review of the customs procedures as part of modernization of the customs service, and (iii) ensuring of 
UAIS quality and security guarantees and (i v) development of infrastructure at 
checkpoints. 
Development of UAIS
 
This component includes three inter-related subc omponents: (i) development of major systems of 
UAIS software and related operations-support systems; (ii) development of infrastructure to support 
the operation of UAIS (i.e. rendering and strengthening of communication among the central 
apparatus of the customs service, regional customs offices and external checkpoints; and (iii) training 
and conduct of a public awareness campaign to en sure sustainability and widespread support of the 
process of modernization of the customs service. 
(ii)  Tariffs  
Page 45, Para. 17:   According to the notification rules to the Integrated Data Base (IDB), WTO 
members are required to notify each year their applied tariffs. Could the Kyrgyz Republic indicate 
when it will notify its applied tariffs for 2004, 2005  and 2006, as the latest applied tariffs submitted 
date back from 2003? 
Yes, the Kyrgyz Republic intends to make notific ations on applied tar iffs until end of 2006. 
(b)  Bound MFN rates 
Page 47-8, Para. 24:   According to paragraph 24, "applied tari ff rates exceed bound levels on at least 
33 items, and in some cases by as much as 10 percentage points. The Kyrgyz authorities indicate that 
these inconsistencies will be eliminated." Could the Kyrgyz Republic specify if these inconsistencies 
have now been eliminated and, if not, when this would be the case? 
Ministry of Industry, Trade and Tourism of the Kyrgyz Republic has already prepared this year a 
draft Law "On making changes into the Law of the Kyrgyz Republic, 29 March, #81 "On Customs 
Tariff of the Kyrgyz Republic", where the above menti oned 33 items were brought in conformity with 
the obligations of the Kyrgyz Republic under the WTO. Currently the dr aft Law is under the 
consideration of the Government of the Kyrgyz republic, afterwards it w ill be sent to the Parliament’s 
approval. 
In addition some tariff lines are bound in non- ad valorem  terms while the applied tariff is in ad 
valorem terms, which reduces the transparency of tariff bindings. Could the Kyrgyz Republic provide 
information regarding how it can ensure that the applied tariffs are not above the bound tariffs, in 
particular how it calculates the ad valorem equivalents for these items ? 
On those items, on which the Kyrgyz Republic has taken  obligations of non ad valorem terms, in the 
current tariff it applies non ad valorem rates, adopted  according to the obli gations. On those items, 
where the Kyrgyz Republic applies co mbined rates (i.e. non ad valorem and ad valorem equivalents) 
only ad valorem equivalents are used.  
(iii)  Other import charges 
Page 53, Para. 33:   The Report by the Secretariat indicates th at an ad valorem customs fee of 0.15% 
of the c.i.f. value of the import is levied to cover the costs of providing customs formalities.  
However, article VIII GATT stipulates that the fees shall be limited in amount to the approximate  WT/TPR/M/170/Add.1 
 Page 23 
 
 
cost of services rendered  and shall not represent an indirect protection to domestic products or a 
taxation of imports or exports for fiscal purposes. In addition, several panel decisions  and in 
particular "Argentina-textiles and apparel and United States -Customs User fee" states that: "an ad valorem tax, by its very design, is not "limited  in amount to the approximate cost of services 
rendered", as required by Article VIII:1(a):...An ad valorem  duty with no fixed maximum fee, by its 
very nature, is not 'limited in amount to the approxi mate cost of services rendered'. For example, high-
price items necessarily will bear a much greater tax burden than low-price goods, yet the service accorded to both is essentially the same. An unlimited ad valorem  charge on imported goods violates 
the provisions of Article VIII becau se such a charge cannot be rela ted to the cost of the service 
rendered ".  
We, therefore, invite the Kyrgyz Republic to bring, without delay, its ad valorem  customs fee in 
compliance with article VIII of GATT. 
A working group to work on estimation of costs incu rred during the customs clearance of goods by 
the customs bodies has been created. A decision per this issue will be made by 2006 since the 
budget’s expenditure side for 2006 provides for fu nding of the development of the customs service 
through the customs clear ance fees to be collected. 
(a)  Value-added tax 
Page 53, Para. 35:   Could the Kyrgyz Republic specify the rate of the value-added tax for the 
exceptions listed in this paragraph? 
All exclusions are listed in paragraph 35, and th e agricultural products are free from VAT.  
(ix)  Government procurement 
Para 59:  Switzerland notes that Government procurem ent legislation was amended in May 2004 in 
the Kyrgyz Republic. What is the scope and nature of the amendments made and what are, in the 
opinion of the Kyrgyz authorities, the main issu es still to be resolved for complying with the 
conditions set out in the WTO Agreemen t on Government Procurement (GPA)?  
In 2002 the World Bank has reviewed the Government procurement system in the Kyrgyz Republic, as 
a result of this review, a "Report on assessment of Procurement in the Kyrg yz Republic" was issued, 
where the recommendations on necessary amendments  to the Law of the Kyrgyz Republic on 
"Government Procurement of goods, services and work" were given.  
With a view of strengthening the potential of the State Agency, ensuring the transparency, objectivity, 
economy and effectiveness of the government procu rements, more than 60% of amendments to the 
current Law of the KR "On government procu rement of goods, services and work" were introduced, 
and in this connection, according to the Law of th e Kyrgyz Republic "On statutory and legal acts of 
the Kyrgyz Republic" the State Agency worked out  the draft of the new version of the Law on 
Government Procurement. This bill was considere d by the ministries and agencies, and with all 
comments and proposals it was sent to the World Bank.  
In purpose of strengthening the poten tial of procuring entities, State Ag ency has introduced an Article 
13 into the Law on Government Procurement, whic h states that trained and qualified specialists on 
procurement issues will be deali ng with procurement in future. 
As the old version of the Law was not covering the consultative services, a new redaction, taking into 
account the market demand in the Kyrgyz Republic , has as a separate Chapter, devoted to the 
Consultative services. WT/TPR/M/170/Add.1 
Page 24  
 
Para. 60:   The State Agency on Government Procurement and Material Reserves seems also to be in 
charge for the settling of disputes. According to § 61 , procurement decisions may also be appealed to 
the courts. What are the respective roles and mandates of the State Agency and the courts with regard 
to the dispute settlement in the fi eld of government procurement? 
In accordance with the Article 65, Paragraph 1, th e State Agency, in case if the complaint is not 
declined, is entitled to render one or several following legal remedies within 10 days:  
 - prohibit the procuring entity to take ille gal actions, or taking illegal decisions or 
applying illegal procedures; 
 - fully or partially abolish the illegal decision of procuring entity;  - to oblige the procuring entity to compen sate the expenses, carried by the supplier, 
who has submitted a complaint, as a result of illegitimate action or decision of 
procuring organization and applying by this  organization an illegal procedures;   
 - decide on ceasing procuring procedures;  - cancel the illegal decision of procuring entity, breaking the terms of auction 
procedures; 
 - In accordance to the Article 413 of th e Kyrgyz Republic Administrative Responsibility 
Code to impose a penalty to officials – not less than two minimum wages and not more than 20 minimum wages. 
 - The disputes between the suppliers and  procuring entity, arising from the 
implementation of the procuring procedures,  and the decisions of the procuring entity 
and State Agency, adopted according to th e Law "On government procurement", are 
appealed in the court of general jurisdiction in  terms, determined by the legislation of 
the Kyrgyz Republic. 
Para. 61:   Can the Kyrgyz authorities give some indica tion regarding the respective market share of 
the procurements handled by (1) central aut horities, (2) local authorities and (3) sectors? 
According to the Law of the Kyrgyz Republic "O n government procurement", the procurement is 
decentralized, i.e. each procuring organization shou ld use all the allocated funds on the basis of the 
Law on Government Procurement. Biddings with ge neral sum of 2935, 4 mln. Som were held by the 
ministries, agencies and organizations during the period of first six months of 2006.  
Regarding the respective shares in the procuring market , the percentage of realized procurement, by 
the central organizations financed by the State bu dget makes up 84%; by the local administrations, 
financed from the regional budget makes up 10 %; budgetary organizations financed from the 
regional budget, makes up 6%.  
Comparatively with the same period of the last year a number of realized tenders increased for 93%. 
Para. 63:  The method of limited participation is operati ng with a two-stage tendering, while the first 
stage is the technical bid and the second the bid w ith prices. Do the Kyrgyz authorities not use the 
method of selective tendering including procedures and criteria for qualification of potential suppliers 
as foreseen in the GPA ? 
Article 9 of the Law on Government Procuremen t requires fore-qualification procedures of supplier’s 
selection.  WT/TPR/M/170/Add.1 
 Page 25 
 
 
1. Before announcing the auction procedures or inviting to take part in the government 
procurement procedures, the procuring age ncy is entitled to hold fore –qualification 
procedures against suppliers (contractors). 
2. Not later than 1 month before announcing tend ering procuring entity publishes in the state 
media and Government Procurement Bulletin, an d in the internatio nal press, if required, 
information on holding fore - qualification procedures.  
(x)  State Trading 
Page 60, Para. 64  mentions that the Kyrgyz Republic had not notified any state-trading enterprises. 
During the WTO accession, it indicated, however, that state-trading monopolies in the alcohol, 
tobacco and the electrical and thermal energy industries would be notified. Could the Kyrgyz 
Authorities please elaborate further on the actual status of state trading companies? 
The General information on State Trading enterpri ses was indicated in the Report of the WTO 
Secretariat. Currently the Kyrgyz Republic is p reparing the notification on State trading enterprises 
and will send it to the WTO Secretariat by the end of the year. 
(4)  M EASURES AFFECTING PRODUCTION AND TRADE  
(iv)  Competition Policy and Price Controls Page 75, Para. 112   suggests that although in principle the National Agency for Anti-monopoly 
Policy and Competition Improvement is an independe nt agency under the President's Office, in 
practice its autonomy is uncertain and implementa tion of competition policy is rather weak. In 
particular, the agency appears to accept the pe rsistence of many monopolies, whether natural or 
authorized and does not seem to be able to sanct ion effectively their illegal activities. Could the 
Kyrgyz Authorities indicate whether they have any pl ans to reinforce the role  and the competence of 
the competition authority with a view to improving implementation of competition policy and, if so, could they indicate which measures they contempl ate to pursue such objectives? Also, what are the 
prospects of reducing in the short to medium term the number of natural and authorized monopolies in 
the Kyrgyz economy? 
Regarding the issue of independence of the Natio nal Agency of Kyrgyz Republic for Anti-monopoly 
Policies and Competition Development: 
The Decree of the President of Kyrgyz Republic as of 10 October 2005 PD №448 created the 
National Agency of Kyrgyz Republic for Anti-mon opoly Policies and Competition Development that 
submits reports to the President of Kyrgyz Re public and the Government of Kyrgyz Republic on an 
annual basis and simultaneously informs that the National Agency is not an agency operating under 
the Administration of President of Kyrgyz Republic.  
Regarding the issue of ensuring of independen ce of the National Agency of Kyrgyz Republic for 
Anti-monopoly Policies and Competition Development:  
With regards to ensuring of independence of the National Agency, there are plans intentions that are 
reflected in the draft Laws of  Kyrgyz Republic "On Competition" and "On Amendments to Certain 
Legislative Acts of Kyrgyz Republic" currently under development:  
 - the draft Law of Kyrgyz Republic "On Co mpetition" providing for (paragraph 2 of 
Article 3) the following: «The anti- monopoly body carries out its activities 
independently from other state bodies and is guided by the principles of fair competition only» has been recently sent back to the National Agency for further WT/TPR/M/170/Add.1 
Page 26  
 
development with consideration to be given to comments made by the Office of Prime 
of Minister of Kyrgyz Republic;  
 - in the draft Law of Kyrgyz Republic "On Amendments to Certain Legislative Acts of 
Kyrgyz Republic", including the draft La w "On Natural and Permitted Monopolies in 
Kyrgyz Republic", the concepts of indus try-specific bodies of state regulation are 
repealed throughout the text.  
Once this draft law is adopted, the National Agen cy of Kyrgyz Republic for Anti-monopoly Policies 
and Competition Development will proceed to impl ementing anti-monopoly policies in all industries 
of the nation’s economy as an independent unified body.  
Regarding the identification of the share of dominance in the market: 
The state anti-monopoly body, in compliance with the Law of Kyrgyz Republic "On Restriction of 
Monopolistic Activities and Competition Development and Protection" has powers to establish a 
dominance limit:  
«dominating position» - an exclusive position of a co mmercial entity in the market for certain goods 
that enables it to decisively impact competition an d hinder the market access  for other commercial 
entities. A dominating position is one where a comm ercial entity’s share in the market for certain 
goods exceeds 35% or the limit as established annua lly by the anti-monopoly body of the Kyrgyz 
Republic.  
The state anti-monopoly body, taking into consider ation the analysis of the market situation (the 
market power of certain commercial entities) in 2001, practiced the establishment of the limit for 
dominance in the market for tobacco and beans. The dominance share was set at 20%. This practice 
is no longer in use today. 
Regarding the issue of invalidity of the agree ment on restriction of competition among the 
dominating companies (price-setting or market allotment):  
The agreements in question are regulated by Article  7 of the Law of Kyrgyz Republic "On Restriction 
of Monopolistic Activities and Compe tition Development and Protection".  
The state anti-monopoly body has powers to declare inva lidity of such agreements (agreed actions), if 
identified, as reached among commercial entities ( potential competitors) that jointly form a 
dominating position if such agreements (agreed actions) result or may result in a significant 
restriction of competition including the agreements (agreed actions). However, in certain exceptions 
the agreements (agreed actions) among the commercia l entities may be deemed lawful by the state 
anti-monopoly body   if the commercial entities in question are able to prove that their agreements 
(agreed actions) facilitated or will facilitate sa tiation of the goods markets, improve consumer 
properties of goods and enhance their competitiven ess particularly in the foreign markets.  
Normally, such agreements are revealed in the course of inspec tions of monopolistic entities and 
review of complaints received fr om competitors, bodies of the execu tive branch, public unions or 
media, and as a result of own initiatives.  
Once the fact of violation of anti-monopoly legislat ion is identified by the state anti-monopoly body, a 
process of investigation is initiated in accordance with the Procedure of Consideration of Cases of 
Violation of Anti-monopoly Legislation as approved by the Resolution of the State Commission under Government of Kyrgyz Republic on An ti-monopoly Policy as of 31.10.2003 №49.  WT/TPR/M/170/Add.1 
 Page 27 
 
 
Regarding the issue of price control:  
The National Agency, in compliance with the Dec ree of the President of Kyrgyz Republic as of 
13 February 2006 №57, has powers to regulate the issues pertaining to pricing of goods, works and 
services in all industries of the economy with regards to enterprises that are included in the list of 
natural and permitted monopolies including those in  the industries of communications, alcohol 
manufacturing, etc.  
In the future, the prospects of reducing the number of natural monopolies are very low. The number of 
permitted monopolies can be reduced as competitio n develops, the production in the country grows 
and the overall economic situation improves. 
IV.  TRADE POLICIES BY SECTOR 
(5)  Manufacturing Table IV.6.  We appreciate the explanations given by the Kyrgyz authorities regarding the reduction 
of industrial activities in the sector of textiles. Wh at are the reasons for th e collapses observed in the 
production of vegetable oils since 2002 and centr ifugal pumps between 2004 and 2005? How do you 
explain the progressive increase of production of roofing sheets since 2000?   
Para 49 .  We note that a new programme of industrial development is being developed with a focus 
on high-value-added activities. What is the genera l architecture of the programme which in our 
understanding will involve a great number of nationa l policies such as education, research, finance, 
etc.? Do the Kyrgyz authorities have an idea about the nature of the high-value-added activities to be 
developed? 
Table IV.6  
1. Decrease in the output of rotary pumps is rel ated to the collapse of  the market for this 
product during the post-Soviet period.  
2. Increase in output of roofing slate is triggered  by the growing demand in  the domestic market 
(a construction boom in Kyrg yz Republic) and growing exports.  
Paragraph 49.  
The President of Kyrgyz Republic set an objective to  ensure structural changes in the economy with 
stress being given to new technologies. This im plies a transition to manufacturing of highly-
technological high-value-added state-of-the-art products. 
JAPAN
 
Report by the Kyrgyz Republic  (WT/TPR/G/170) 
IV.  TRADE AND TRADE-RELATED POLICIES 
(b)  Customs and tariff regulation 
(Page 24, paragraph 151) 
1.  Please indicate the outline of the draft Law on Customs Tariff for Imported Goods to the Kyrgyz 
Republic (The information on the draft law is not  placed on the official website in English). WT/TPR/M/170/Add.1 
Page 28  
 
The draft Law, 29 March 2006, #81, "On making changes into the Law of the Kyrgyz Republic "On 
customs tariff of the Kyrgyz Republic",  envi sages making alterations on several tariff lines.  
Totally changes on 1009 goods were made. For instance, with a view of protecting priority industrial 
sectors by goods, which are produced domestically, as well as with a purpose of State budget 
replenishment tariff rates for 37 goods were incr eased (for example: agricultural products, tires and 
lids, regenerated or second-hand, etc.).  
Moreover, in order to develop the export oriented production a duty free import of 33 items of 
industrial equipment, utilities, raw materials and passenger traffic is foreseen. For instance, 
equipment: for producing c onstruction materials, food industry, mining sector, as well as agriculture 
and medicine. Duty free import will facilitate the entr ance terms of this equipment in to the Republic 
and reduce the costs of domestic producer; this in  its turn will positively impact the price and the 
quality of the final product, in cluding products for import.   
All changes made to the legislation meet the WTO requirements. Report by the Secretariat
 (WT/TPR/S/170) 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  M EASURES DIRECTLY AFFECTING IMPORTS  
(i)  Customs procedures (Page 44, paragraph 13) 
2.  Please indicate specific measures taken by the Kyrg yz Government to tackle with the corruption by 
custom officials. 
(i)  Customs procedures 
(Page 45, paragraph 15) 3.  Please indicate how the "Government Resoluti on on Comprehensive Action Plan on Prevention of 
Illegal Importation and Trade of Goods, No. 726, September 2004" has been executed and what kind 
of results are obtained from the Plan. 
Article 389 of the Customs Code of the Kyrgyz Repub lic provides for the right to any person to appeal 
a decision, action or failure to act by a customs agency, if by such deci sion, action or failure to act, in 
the opinion of such person, his/her rights and freedoms have been infringed, obstacles created for 
their exercise or any liability has been illegally im posed, and if such decision, action or failure to act 
directly affect the interests of the person. The appeal  shall be submitted to a higher-level (superior)  
agency.  
Also the right has been stipulated for persons to appeal by addressing a complaint to a court.  
The procedures for submission, review and resolution of  complaints submitted to courts shall be 
specified by corresponding legislation of the Kyrgyz Republic.   
To implement the KR President’s Decree on Anti-Co rruption State Strategy in the Kyrgyz Republic of 
June 21, 2005 №251 and strengthening  of crime control, the Government Resolution of the KR №132   
of February 28, 2006 On Approval of a Set of Me asures of the Government of the Kyrgyz Republic on 
the Implementation of the Action Plan under the An ti-Corruption State Strategy in the Kyrgyz  WT/TPR/M/170/Add.1 
 Page 29 
 
 
Republic  and State Program on combating Crime in  the Kyrgyz Republic for 2006-2007, a range of 
measures have been approved of the Government of the Kyrgyz Republic to implement an Action Plan 
within the anti-corruption State Strategy in the Kyrgyz Republic. 
With a view to ensure a timely and efficient respon se to complaints and ap plications submitted by 
citizens regarding illegal actions of the SCI officers and also facts of corr uption among them, "hot 
lines" have been set up at the State Customs Inspectorate. 
The above measures undertaken are brought to publ ic notice via mass media and information stands 
set at customs posts. As for all the incoming comp laints and applications subm itted by individuals and 
legal entities regarding illegal actions on the part of  SCI officers and also facts of revealed customs 
legislation violations, official investigations and checks are conducted. With regard to each official 
investigation, a decision is made on bringing to disciplinary responsibility of guilty persons, up to 
their dismissal.  
In case of revealing signs of criminally punishable offe nse in the actions of SCI officials, the materials 
shall be forwarded to investigation agencies.   
Paragraph 15. 
To implement the Government Resolution on Comprehensive Action Plan on Prevention of Illegal 
Importation and Trade of Goods, No. 726a of  Sept ember 29, 2004, a range of organizational and 
practical measures have been taken.  
By the Government Resolution № 745-р of 24.11.04, a national Headquarters on Prevention of Illegal 
Importation and Trade was establishe d, consisting of representatives from ministries and departments 
concerned 
In accordance with paragraph 3 of the Government Order № 745-р of 24.11.2004, to make joint 
efforts on the prevention of illegal importation of go ods and trade in all the regions of the republic, 
regional headquarters and interdepartmental comm ittees have been established from among public 
and government officials.  
The National headquarters and interdepartmenta l committees have developed joint plans on 
prevention and restraint of illegal importation of goo ds and trade in the Kyrgyz Republic, base maps 
have been prepared, diagrams and plans of rout es, roads, paths and passings have been identified 
that are used by offenders for illegal  transportation of smuggled goods.  
Raid measures (surprise inspec tions) have been taken at big markets and sales outlets, whereby 
special attention was paid to illegal bulk sale of  food products, medicines and storage facilities.  
As a result of work performed by joint interdepartm ental groups in Bishkek city, control inspections 
have been carried out to prevent and withdraw pira ted goods of individuals and legal entities at big 
markets in the capital of the re public and spontaneous outlets.   
Infringement acts have been prepared based on revea led violations of the effective legislation.  
In the course of measures, they’ve withdrawn forged and unmarked excisable goods including liquor 
and alcoholic products, cigarettes,  spirits and medicines. 
In addition, at Osh market they revealed and withdrew  forged excise duty stamps, corks, labels  for 
alcoholic items designed for manufactu ring of alcoholic products marks,  WT/TPR/M/170/Add.1 
Page 30  
 
The interdepartmental committee hav e made preventive efforts with the heads of Bishkek-based 
markets on barring illegal sale of goods especially those used for  medical purpose, alcoholic 
beverages and tobacco products.  
In the course of inspections of Issyk-Kyl outlets se lling alcohol products, they identified such offences 
as trade in alcoholic beverages with forged exci se stamps, lack of licenses and certificates. Based on 
inspection findings, illegally sold alcoholic prod ucts that didn’t meet normative requirements had 
been withdrawn from trade circulation.   
The members of the National Headquarters iden tified major directions and goals on prevention of 
illegal transportation of goods, whereby a special at tention was paid to an excisable  group of goods 
including: 
 - fuel and lubricants; 
 - tobacco products;  - alcoholic products;  - pharmaceuticals;  - precious metals; 
 - foodstuffs. 
To make an operating environment analysis in the area of illegal trade of excisable goods, 
identification and prevention of illegal importation  of goods, storage and sales facilities for illegally 
imported goods, mobile teams (task forces) have been established, with joint action plans having been 
developed and approved.  
Taking into account the growth of spontaneous trade in pharmaceuticals in improper places  and 
without proper permit documents and to  avoid causing harm to public  health due to the increase in 
the flow of forged pharmaceuticals in the local ma rket from CVIS countries, joint mobile groups 
withdrew uncertified, unregistered and not permitted  for application in medical practice in Kyrgyz 
Republic of use pharmaceuticals and medicinal preparations.  
The measures undertaken enabled to cons iderably reduce illegal sale of goods.  
The actions made have also enables to achieve ce rtain results in identification and prevention of 
illegal importation of goods. 
Since the approval of the Comprehensive Plan, th e customs agencies of the Kyrgyz Republic have 
initiated 27 criminal cases related to prevention of economic crimes, with the total  amount of losses 
recovered to the state being 9 million 767.3 thousand soms.  
To strengthen efforts aimed at the improvement of efficiency of identification and prevention of illegal 
transportation of goods, in accordance with the joint Decree of the Revenues Committee under the 
Ministry of Finance of the Kyrgyz Republic and Nati onal Security Services of the KR, they held joint 
inspections of foreign economic activity entities, during which they worked through the information 
on transit of goods from foreign countries thr ough Russian and Belarus to Kyrgyzstan.   
As a result of joint inspection they’ve identified o ffenses with regard to which 8 criminal charges had 
been filed and 6,3 million soms of lo sses reimbursed on customs payments. 
In the course of search-and- measures, the cust oms agencies detained illegally transported goods for 
7,6 million soms, including:  
 - fuel and lubricants - 235,2 thousand liters, 
 - tobacco products  (cigarettes) - 26,8 thousand packs,  WT/TPR/M/170/Add.1 
 Page 31 
 
 
 - alcoholic beverages - 2,4 thousand liters, 
 - spirits - 3,4 thousand liters;  - flour - 55,7 tons;  - foodstuffs and other consumer goods for more than 4,5 mio. soms,  - pharmaceuticals totalling 936,8 thousand soms.  
To prevent illegal importation, exportation and trad e of goods, fuel and lubr icants, pharmaceuticals, 
tobacco products, foodstuffs, and alcoholic products, the Na tional Headquarters and regional 
interdepartmental committees have been activel y making public awareness efforts to prevent 
violations of the Kyrgyz legislation among the population residing in cross-border regions.  
Joint actions on identification and prevention of illega l importation and trade of goods in the Kyrgyz 
Republic have been broadly covered in mass media. 
IV.  TRADE POLICIES BY SECTOR (6)  S
ERVICES (OTHER THAN ENERGY ) 
(i)  Financial services (Page 102, paragraph 55) 
According to Table IV.7, while the share of bank non-performing loans to total loans has fallen, the 
absolute amount of bank non-performing loans s hows a sharp increase accompanied by the extremely 
high incidence of total bank assets. 
4.  Please explain the reason why the amount of total bank assets has been rapidly increasing as well 
as whether such rapid rise in total bank assets is evaluated as sound. 
As for an accelerate growth of credit portfolio, we hereby mention that a subs tantial reduction in the 
volume of lending in 1999 – 2001 was subsequently  followed by a considerable increase in the loan 
portfolio. This process is due to both activati on of current banks (there are substantial foreign 
investments in 4 banks) and also opening of tw o new banks in 2001 and 2005 (also with foreign 
equity), the primary direction of which being lending.  
Credit portfolio trends (31.12.2002-30.06.2006) . 
 31.12.2002 31.12.2003 31.12.2004 31.12.2005 30.06.2006 
Credit portfolio, in mio. soms 2 010,3 2 892,4 5 801,4 7 671,0 9 304,0 
Growth rate for the period, in % 29,1% 43,9% 100,6% 32,2% 21,3% 
(ii)  Telecommunications 
(Page 109, paragraph 81) 
The Secretariat report states that the interconnecti on rules in the telecommunications sectors were 
established in 2003, but raise some concerns. 
5.  Please explain the specific concerns rose in the interconnection rules. 
Public telecommunication network interface rules (f urther referred to as Ru les) have been developed 
in accordance with Law of the KR On Electric and Postal Communications. The rules regulate the 
relations between the telecommunication network operators, which make a unified public network in 
the Kyrgyz Republic independently of their de partmental affiliation, form of ownership of WT/TPR/M/170/Add.1 
Page 32  
 
communication means and also procedures of tra ffic regulation (public electric communication 
network loading in the KR). The provisions of the above rules may also regulate relations of operators, linked to electric communi cation networks of other operators. 
UNITED STATES OF AMERICA
 
Secretariat Report  
TRADE POLICIES AND PRACTICES BY MEASURE 
Tariffs – Structure 
1.  Paragraph 23 on page 47 of the Secretariat Re port explains that the Kyrgyz Republic does not 
currently apply seasonal duties, but applied an "addi tional seasonal tariff" of 20 percent to wheat and 
flour during 2002 and 2003.   
 As the Kyrgyz Republic bound duties for these goods at 10 percent, please explain how this 
practice in light of the Kyrgyz Republic’s WTO obligations? 
Kyrgyz Republic imported in 2002-2003 wheat and fl our from CIS countries (Russia, Kazakhstan). 
These measures were applied in order to limit the im port from the CIS countries, which are not WTO 
members.  
Tariffs – Bound MFN rates 2.  Paragraph 24 on page 47 of the Secretariat Repor t identifies 33 items for which applied tariff rates 
exceed bound levels, some by as much as 10 percentage points.   
 What steps is the Kyrgyz Republic taking to rec tify this situation and br ing these tariffs within 
their WTO bounds or to initiate negotiations fo r compensatory adjustment with interested 
suppliers? 
Ministry of Industry, Trade and Tourism of the Kyrgyz Republic has already prepared this year a 
draft Law "On making changes into the Law of the Kyrgyz Republic, 29 March, #81 "On Customs 
Tariff of the Kyrgyz Republic", where the above menti oned 33 items were brought in conformity with 
the obligations of the Kyrgyz Republic under the WTO. Currently the dr aft Law is under the 
consideration of the Government of the Kyrgyz republic, afterwards it w ill be sent to the Parliament’s 
approval. 
Measures Directly Affecting Imports - Import quotas and licensing 
3.  Paragraphs 49 through 54 of the Secretar iat Report address import quotas and licensing.  The 
Kyrgyz Republic provided its responses to the Import Licensing Questionnaire on May 3, 2000.   
 We ask that the Kyrgyz Republic provide an updated submission of its Replies to the Import 
Licensing Questionnaire, as this is an annual re quirement of all Members as stated in article 
7.3 of the Agreement on Import Licensing. 
Kyrgyz Republic, according to the requirements of  the Article 7.3 of the Agreement on Import 
Licensing, has sent a notification to the WTO Secretaria t on 29 September, 2006, Ref. N. 03-1/7221.    WT/TPR/M/170/Add.1 
 Page 33 
 
 
Measures Directly Affecting Imports - Standards and other technical requirements (including 
SPS) - Standards, testing, and certification 
4.  We note that paragraph 71 on page 61 of the Secretariat Report references "Government 
Resolution No. 639 on List of Products Subject to Mandatory Conformity Assessment, December 2005" and footnote 58 references "Gov ernment Resolution No. 8 on Procedures for 
importation of products subject to mandatory confor mity certification, 11 January 2006."  However, 
the Kyrgyz Republic has not made any notifications to the WTO under the Agreement on Technical Barriers to Trade.  
 What steps is the Kyrgyz Republic taking to fulfill its notification requirements under the 
Agreement on Technical Barriers to Trade?  
5.  Paragraph 75 on page 63 of the Secretariat Re port states "the Government is still developing 
implementing resolutions aimed at establishi ng an independent national accreditation body. 
Regulations on self-declaration assessment, although allo wed for in the legislation, are also being 
developed."  
 Could the representative of the Kyrgyz Republic  provide an update on the status of these 
regulations and indicate whether the draft regul ations will be notified for comment to the 
WTO?  
Government Resolutions "On mandatory Conformity  Assessment of goods" December 30, 2005, #639, 
and "On procedures for importation of products for ci rculation in the Kyrgyz Republic and subject to 
mandatory conformity assessment in the form of  mandatory certification, and on recognition of the 
results of mandatory conformity assessment of th e products, obtained out of the territory of the 
Kyrgyz Republic", 11 January, 2006, #8, were worked  out in full compliance with the Law of the 
Kyrgyz Republic "On technical regulations in th e Kyrgyz Republic" and does not contain procedures 
of conformity assessment, falling into contradic tion with the international rules and regulations. 
Within the framework of the project "Reducing th e technical barriers in entrepreneurship and trade", 
financed by the World Bank, an assistance in de termining the optimal institutional facility and 
creation of national WTO enquiry point will be rendered.  
The draft Resolution of the Government of the Kyrgyz Republic "On accreditation of the bodies of 
conformity assessment in the Kyrgyz Republic" cu rrently agreed with the ministries and agencies and 
is under the consideration of the Government of th e Kyrgyz Republic, and in the near future a final 
decision on establishing the accreditation system in the Kyrgyz Republic will be taken; National body 
for accreditation and Accreditation Council in the Re public in accordance with the international 
regulations.  
With a view of implementation of the Law "On technical regulation in the Kyrgyz Republic", Ministry 
as an authorized body for technical regulation is working out a Regulation on Procedures of 
accepting declarations of confor mity and their registration; 
 - list of goods, included into the nomenclature of products, subject to mandatory 
conformity assessment, the conformity of which can be verified by the confirmation 
declaration.  
If required, the draft of the Regulation can be presented by the Kyrgyz Republic as a notification.  WT/TPR/M/170/Add.1 
Page 34  
 
Measures Directly Affecting Imports - Standards and other technical requirements (including 
SPS) - Sanitary and phytosanitary regulations 
6.  We appreciate the sanitary, phytosanitary and environmental information included in the 
Secretariat’s Report.  We note that the Kyrgyz Re public has not made any notifications to the WTO 
under the Agreement on the Application of Sanitary and Phytosanitary Measures.  
 A. What steps is the Kyrgyz Republic taking to fulfill its notification requirements under 
the Agreement on the Application of San itary and Phytosanitary Measures?   
 B. Which ministry is responsible for publishi ng draft SPS measures in an official journal 
and which ministry is responsible fo r meeting the Kyrgyz Republic’s WTO 
obligations of National Notification Authority and Enquiry Point?   
7.  Paragraph 82 on page 64 of the Secretar iat report highlights that the Kyrgyz Republic’s 
Department of State Veterinary Services of the Ministry of Agriculture "is planning to establish an SPS enquiry point".   In the working party re port for Kyrgyz accession WT/ACC/KGZ/26 page 40 
paragraph 103, the Kyrgyz Republic pledged to appl y all sanitary requirements  consistent with the 
WTO SPS agreement.   
 What actions will the Kyrgyz Republic undertake to ensure the expeditio us establishment of 
an SPS Enquiry point and compliance with the WTO SPS Agreement?    
8.  Paragraph 85 on page 65 of the Secretariat Repor t indicates that the Kyrgyz Republic requires that 
for any agricultural product which requires a phyto sanitary certificate, an import certificate is also 
required.  This double requirement spans a broad ra nge of commodities, including plants for planting 
(including seeds) of agricultural, forest, and orna mental plants; fruit and vegetables; and plant parts 
that may carry quarantine pests.    
 Could the Kyrgyz Republic explain why these duplicative requirements are necessary?   
A) According to the Government Resolu tion #374, 23 June, 2003 , (last revised #607, 
23 August 2006) responsibilities on WTO Agreements im plementation were distributed, for instance, 
Ministry of agriculture, water resources and processi ng industry jointly with the Ministry of Health 
were charged to establish and provide enquiry point  under the provisions of SPS Agreement.  
Ministry of Industry, Trade and Tourism of the K yrgyz Republic as an authorized body on technical 
regulation issues, coordinates the activity on fulfi lling the obligations of the Kyrgyz Republic under 
the provisions of the TBT and SPS Agreements.  
It is necessary to mention, that nowadays the mi nistries are suffering from a lack of capacity in 
implementation WTO obligations.  
Particularly, Ministry of Agriculture, Water Res ource and processing industry, suffers from lack of 
trained experts on SPS issues, prepar ing notifications, and also there is a shortage of financial means 
for ensuring with technologies and additional experts,  for instance interpreter/ translator. The same 
difficulties are met by the Ministry of Health, while fulfilling SPS provisions.     
B) Chapter V of the Law "On legal acts of the Kyrgyz Republic", 1 July, 1996, #34, sets 
procedures for publishing laws and other legal acts. A ccording to the Article 39 of this Law, the legal 
acts, concerning the external trade, are not applie d if they are not published officially for general 
information. The paragraph 3 of Article 57 prov ides that the ministries, state committees, 
administrative agencies and local authorities of the Kyrgyz Republic shall systematic collection of 
legal acts adopted by them.   WT/TPR/M/170/Add.1 
 Page 35 
 
 
Government of the Kyrgyz Republic has adopted a Resolution "On creation of e-data base developed 
legal acts of the Kyrgyz Republic", #318, 26 July, 2005. According to this Resolution, Ministry of justice of the Kyrgyz Republic is creating a electro nic data base of draft legal acts being developed 
with a consequent placing them on a official web site of the Ministry of Justice for a common 
discussion.  
Ministry of Industry, Trade and Tourism of the Kyrgyz Republic as a leading organization 
coordinating external economic relations, trade and issues concerning the cooperation with WTO 
members, is providing an interaction between the  ministries, state committees, administrative 
agencies and state commissions of the Kyrgyz Re public with the WTO Secretariat and serves as a 
national body for notifications.  
The Ministry of Health jointly with the Mi nistry of agriculture, water resources and processing 
industry are responsible for the work of SPS enquiry point.  
7.  Department of State veterinary of the Ministry of agriculture, water resources and processing 
industry of the Kyrgyz Republic is constantly sending  by mail the information on epizootic situation in 
the Republic to the World Organization for Animal Health (OIE) and receives information from OIE 
on epizootic situation of other countries. The plant s quarantine service of the Ministry of Agriculture, 
Water Resources and processing industry cooperat es with the European and Mediterranean 
organization on plants quarantine and protection the same way the state veterinary service does with OIE. Ministry of Health of the Kyrgyz Republic s hall create and provide the functioning of the enquiry 
point according to the provisions of the SPS Ag reement. And mainly this question depends on the 
limited possibilities in the context of financing th e establishment and maintenance of the data base, 
training the personnel and constant access to Internet connection. 
8.  These requirements are not duplicating each oth er, we guess that the question arose from wrong 
translation of the word "permission". 
The import of freights falling under quarantine and their transit through the territory of the Kyrgyz 
Republic is possible if the phytosanitary certificate is available, which is given by the State agencies 
on plants quarantine of the exporting country, and import quarantine permission, issued by the 
importer country before importing product falling under quarantine, according to the list of materials 
falling under quarantine (freight), production and goods , controlled by the State inspection of the 
Kyrgyz Republic on plants quarantine.  
Import quarantine permission is not a certificate for import and contains requirements of absence of 
quarantine objects within the imported plant materi als, route and the requirements on transportation 
(for instance, by refrigerator), as well as importi ng points (border check points of quarantine plants).  
The export of freights falling under quarantine from th e territory of the Kyrgyz Republic and from the 
quarantine zone is fulfilled if a phytosanita ry (quarantine) certificate is available. 
Any requirements on phytosanitary control are set on ly within the frameworks, necessary to ensure 
the phytosanitary measures by rea sonable means and in reasonable period of time. The State service 
on plants quarantine informs the applicant upon his requ est of the time of holding control procedures.  
Phytosanitary measures of other countries a re recognized, if they provide appropriate level of 
phytosanitary protection, applied in the Kyrgyz Re public. In case enough gr ounds are not submitted, 
a temporary phytosanitary measures can be applied on a basis of available information, including 
information from the international organizations and other countries.  WT/TPR/M/170/Add.1 
Page 36  
 
Measures Directly Affecting Exports - Tax incen tives, subsidies, free zones, and export-
performance requirements - Free economic (export-processing) zones 
9.  According to paragraph 98 on page 70, there are currently 650 entities registered in Kyrgyz’s four 
FEZs, for whom "comprehensive tax incentives" apply, such as income tax and customs duty 
exemptions, and that these FEZs are to be abolished, except for Bishkek. 
 Could the representative from the Kyrgyz Re public please provide additional information 
regarding the criteria by which companies qualif y to operate in the FEZs.  For example, are 
there any export performance or local content requirements? 
Currently 655 economic entities are registered with in the Free Economic Zones of the Kyrgyz 
Republic, and only 370 of them are acting enterprises.  
The participants of economic and external econo mic activities, exclusive the entities of Free 
Economic Zones, providing services for domestic market , are released from all kinds of taxes, duties 
and payments for a period of their activity within the Free Economic Zones. The services rendered by 
the entities of the Free Economic Zones for domestic  market use, are subject to VAT in accordance 
with the Tax Code of the Kyrgyz Republic. The serv ices for use at the domestic market are services, 
received by any natural persons on the territory of  the Free Economic Zones in the Kyrgyz Republic. 
Income tax and mandatory insurance payments on social insurance for natural persons, working on 
hire for the entities of the Free Economic Zones, are levied in accordance with the Tax Code of the 
Kyrgyz Republic and the Law of the Kyrgyz Republic "On state social insurance".  
With reference to the inconsistency of FEZs functi oning with the Kyrgyz Republic legislation, various 
abuses of FEZ entities by the rendered them facilities and violation of the national legislation, the 
Government is working on bringing into conformity the domestic regulations.  
According to the Memorandum with IMF on Economic Policy for 2005-2007, elimination of all FEZs 
except FEZ "Bishkek" is foreseen, as a measure of  the tax policy of the budget for 2006.  
The bill on elimination of FEZ "Naryn" currentl y is under agreement with the ministries and 
agencies, afterwards it will be submitted for cons ideration of the Government and Parliament of the 
Kyrgyz Republic. According to this bill a liquida tion period of economic en tities of FEZ "Naryn" is 
foreseen, which shall not exceed 3 years, with preserved tax and cust oms margins. However, these 
margins will be preserved only for those entities, which are produc ing export oriented and import 
substituting products with a sufficient investments.  
As there are no economic activity hold within the FEZ "Maymak", and inconsiste ncy of functioning of 
this FEZ with the national legislation, a Governme nt Resolution on draft Law "On elimination of FEZ 
"Maymak" was adopted (3402, 2 J une 2006) and submitted to the J ogorku Kenesh for consideration. 
The Law of the Kyrgyz Republic #84, 6 July, 2004, the FEZ "Karakol" was set new borders in 
Balykchy (500 ha) and village Tamchy (1180 ha), as  well as a transition period for the FEZ entities to 
pass to the new territories was set as 3 years. 
New borders will be guarded and is olated, and the "Karakol" FEZ func tioning will be in conformity 
with the national legislation and regulations.  
At the same time, the further functioning of "K arakol" FEZ on the territories was agreed with the 
World Bank.  
According to the Law of the Kyrgyz Republic #91,  dated from 28 June, 2006, the borders of the 
"Bishkek" FEZ were changed, due to withdrawal from  its territory the lot, owned by the JSC "Manas  WT/TPR/M/170/Add.1 
 Page 37 
 
 
International Airport", as well as by excluding th e entities which were functioning at the territory of 
the JSC "Manas International Airport". 
All economic entities, registered within the "Bis hkek" FEZ and cooperating in anyway with the JSC 
"Manas International Airport", are subject to ta xation in accordance with the Tax Code and tax 
regulations. The economic entities of the "Bish kek" FEZ irrespective of registration time are 
forbidden to realize the combustive-lubricating materi als, alcoholic beverage and tobacco products to 
natural and legal persons which are not the entities of the FEZ.  
While transporting the goods from the territory of the FEZ "Bishkek" to the customs territory of the 
Kyrgyz Republic, the economic en tities are subject to customs pay ments in accordance with the 
customs and tax regulations of the Republic.  
Currently the draft Law "On making changes into  the Law of the Kyrgyz Republic "On Free 
Economic Zones in the Kyrgyz Republic" is under co nsideration of the Jogorku Kenesh, submitted by 
the Government Resolution #250, 7 April, 2006. This  bill provides prohibiti on of import, storage, 
production and realization on the territory of the F EZ of goods subject to excise tax for FEZ entities 
regardless of their registration time, without paym ent of tax and customs duties according to the 
regulations of the Kyrgyz Republic.  
Measures Affecting Production and Trade – Budgetary support and tax concessions 
10.  Paragraph 105 on page 72 of the Secretariat Report identifies th e "parastatal" AiyilTechService as 
"the dominant (if not sole) formal importer and wholesaler of farm machinery," and states that AiyilTechService "receives high levels of govern ment support (mainly from off-budget grants)." 
 A. Could the representative from the Kyrgyz  Republic please explain to what extent 
AiyilTechService is owned by the government, either at the national or sub-national 
level? 
 B. Please provide additional information re garding the "off-budget grants" that the 
company receives in government support. 
A. Public corporation "Leasing company AyilTec hService" is the assignee of the State Joint 
Stock Leasing Company (SJSLC) "KyrgyzAyilTechS ervice", that was established by the Government 
Resolution #23, 23 January 1997, on the basis of exis ting system of "Selhoztehnika" in order to meet 
the needs of  peasants and farmers. The 100% sto cks of the Public corporation "Leasing company 
AyilTechService" are owned by the State, exactly by the Fund of State Property. According to the 
Government Resolution #91, 13 February 2006, "On state property privatization programme for 
2006-2007", the Public corporation "Leasing Company AyilTechService" was included into the list of 
entities, to be privatized by selling the state s hare holding in accordance with the set rules.  
B. The Government Resolution #23, 23 January 199 7, passed the Public corporation "Leasing 
company AyilTechService" techniques, obtained th rough the KR2 grant and second non project grant 
of the Japanese Government with a total sum 70700, 4 mln. Som (145 tractors and 65 combines) in 
order to establish the charter fund of the Company.  
The Charter Objectives of the Company are leas ing the agricultural techniques on terms accessible 
for peasants and farmers, set up jointly with the latter leasing centres on a cooperative basis, after-
sales service of the agricultural technique.  
Through the Japanese Grant in 1998 18 tractors, 18 combines and 18 ploughs (with a total sum 
65307,3 mln. Som) were received. In 2002 through t echnical credits YAG-VII 63 tractors (for a total WT/TPR/M/170/Add.1 
Page 38  
 
sum 36498,7 mln. Som) and YAG-VIII 25 combines, 37  seeding-machines, 70 tractors, 70 ploughs and 
spare parts to them (for a total sum 82909,5 mln. Soms) were received.  
Since the establishment, the Pub lic corporation "Leasing company AyilTechService" has rendered to 
farmer’s private leasing 356 units of technique, 149  of which have been already redeemed. The rest 
207 are in process of redeeming.  
The Company jointly with the "Rostselmash" plant (Russia) carries out warranty service and remedial 
maintenance of the technique and has the uni versal production and repair base for assembling 
technique. 
Intellectual property rights – Patents  
11.  With regard to paragraph 126 on page 79 of the Secretariat Report, which discusses the Kyrgyz 
Republic’s patent regime, we would a ppreciate additional information.   
 A. How does the Kyrgyz Republic law comply with TRIPS Article 39.3 regarding 
protection of undisclosed test or other data against unfair commercial use? 
 B. Does importation of a patented inven tion into the Kyrgyz Republic satisfy the 
requirement that an invention be "used" in the Kyrgyz Republic to avoid a 
compulsory license? 
 C. How does the Kyrgyz Republic law comply  with TRIPS Article 34 regarding reversal 
of the burden of proof? 
 D. How does the Kyrgyz Republic law comp ly with the safeguards listed in TRIPS 
Article 31 concerning the issuance of compulsory licenses? 
A.  Accordingly to the Kyrgyz Republic legisla tion data submitted to obtain marketing approval for 
pharmaceutical and agricultural chemical products with new chemical agents using, shall be 
protected against unfair commercial use and disclos ure when these data meet the requirements of 
commercial secret.  
In accordance with the Law of the Kyrgyz Repub lic "On Commercial Secret" (hereinafter referred to 
as the Law) commercial secret shall be recognized as data, which are not a State secret and 
connected with production, tec hnologies, management and other kinds  of any subject’s activities, 
disclosure of these data may damage its interests.  
Data representing a commercial secret s hall meet the following requirements: 
 a) real or potential value for a business subject;  b) data are not well-known and open to general use;  c) designation accordingly, taking approp riate measures for confidentiality keeping 
through the system of classification of th ese data; internal rules development for use 
limitation; marking of documents and other data carriers; organization of registration, storing and use. 
Illegal acquisition by a third party of protected information unknown to him/her earlier and having a 
commercial value shall be recognized as infr ingement in accordance with the Law.  
Breach of the legislation on commercial secret en tails civil, administrative and criminal liability.   WT/TPR/M/170/Add.1 
 Page 39 
 
 
Methods of enforcement of civil rights are general procedure of protection of violated rights to 
commercial secret. The given procedure is enforced w ithin the framework of general, i.e. juridical 
(tort) procedure. Civil rights are enforced by means of recognition of the right to a commercial 
secret, by claim to restore the ci rcumstances which existed before the right was violated, and by 
cessation of actions which violate the right or create a threat of its violation, by claim to indemnify 
losses, and by means of other methods stipulated by  Article 11 of the Civil Code of the Kyrgyz 
Republic. 
Administrative liability for disclosure of commercial secret is provided by the Article 314 of the Code 
on Administrative Liability of the Kyrgyz Republic. Sanction in the form of a fine shall be imposed for this administrative infringement.  
Articles 193 and 194 of the Criminal Code of the Kyrgyz Republic stipulate for two corpora delicti 
related to illegal acquisition and unauthorized di sclosure of the information, constituting a 
commercial secret.  
The following acts are subject to criminal punishment:  - collection of data, composing a commercia l secret by theft of documents, bribery and 
threats to the person, owning commercial secrets or their relatives, interception of 
information in communication means, ille gal entering the computer system or 
network, illegal use of special means a we ll as by other illegal way with the purpose 
of disclosure or use of these data (Article 193, Criminal Code); 
 - illegal disclosure or use of commercial se crets without consent of their owner by the 
person, who knows the secret due to th e professional or service-related activity, 
causing significant damage (Ar ticle 194, Criminal Code). 
Thus, the norms provided by the Law of the Kyrg yz Republic "On Commercial Secret", Civil Code of 
the Kyrgyz Republic, Code of Administrative Liab ility of the Kyrgyz Republic and Criminal Code of 
the Kyrgyz Republic completely comply with the Provision 39.3 of the TRIPS Agreement. 
B.  In accordance with the patent legislation of  the Kyrgyz Republic any product importing, which 
contains invention protected by patent in the K yrgyz Republic territory, by any person without the 
owner’s permission shall be considered as infr ingement of a patent owner’s exclusive right. 
Accordingly the legislation of the Kyrgyz Republic  the usage of invention protected by a patent 
without the owner’s permission shall be admissible only at the following conditions: 
 a) if the patent owner or persons to whom a transfer of authorities was realized (right 
holders) use the invention insu fficiently during 3 years from the date of patent issue 
and it results in low distribution of related  goods or services in the Kyrgyz market; 
 b) at force-majeur (natural disasters, catastr ophes, great accidents) or in the interests of 
national security; 
 c) in the case of non commercial use of  this object by the Kyrgyz Republic; 
 d) at necessity to correct the practice, wh ich was recognized by a court or antimonopoly 
body as anticompetitive (monopoly). 
(The more detailed information about compulsory license you can find in the response D on 
conformity of the Kyrgyz legislation with the Article 31 of the TRIPS Agreement). WT/TPR/M/170/Add.1 
Page 40  
 
C.  In accordance with the Code of Civil Proce dure of the Kyrgyz Republic (hereinafter referred to as 
CCP KR) at a case examination in court any proof presentation shall be a duty of parties. The court shall be entitled to demand from a defender every pr oof presentation at dispute resolving. Articles 60, 
61, 81 and 82 of the CCP KR regulate authorities of the court regarding proof presentation and demanding.  
Accordingly the part 9 of the Article 9 of the Pate nt Law of the Kyrgyz Republic, the introduction into 
economic circulation or storage of  any product shall be recognized as the use of the method of such 
product making, protected by a paten t. At that a new product shall be  recognized as m ade by patented 
method at the absence of contrary proofs. 
At presentation to the court any contrary proof by a defender, the court shall be entitled to declare a 
session closed of the basis of a defender’s petition with the purpose of comm ercial secret reservation 
of business subject. Every person presenting at th e closed session shall be responsible for data 
disclosure constituting a commercial secret of th e business subject (Article 12, CCP KR). 
Thus, the norms provided by the Code of Civil Pr ocedure of the Kyrgyz Republic and the Patent Law 
of the Kyrgyz Republic completely comply w ith the Article 34 of the TRIPS Agreement. 
D.  Norms of Articles 12,13 and 14 Patent Laws of Kyrgyz Republic and Positions about conditions 
and the order of representation of the compulsory li cense for object of the industrial property and its 
use, the approved governmental order, contain a ll the requirements listed in Article 31 TRIPS.  
In particular, the specified norms , provide following positions: 
1.  The invention use (the device, a way, the subs tance, microorganisms, culture of cells of plants and 
animals, and also application known before the device, a way, substance, plant on new purpose or 
any other new achievement in all areas of technique s and technology) protected by the patent, without 
the permission of the owner of the patent it is supposed at presence of one of following conditions: 
 a) If the invention is not used or is insuff iciently used by the owner of the patent or 
persons to whom the rights to it (further - the right owner), within three years from 
the date of granting of the patent are transferred that leads to the insufficient offer of 
the corresponding goods and services of Kyrgyz Republic; 
 b) At extreme situations (acts of nature, accidents, large failures) or in interests of 
national safety;  
 c) In case of noncommercial use of such object;  d) If necessary corrections of practice wh ich is recognized by court or antimonopoly 
body as anticompetitive (monopolistically);  
2.  Any person wishing and ready competently to use object of the industrial property, has the right to 
address in court with the claim for granting to it th e compulsory license for use of the specified object. 
Consideration of the specified claim carries out cour t by way of, established by the legislation of 
Kyrgyz Republic on legal proceedings; 
3.  The person, submitted statement of claim, should submit data, confirming real need of the 
corresponding goods and services for Kyrgyz Republic ow ing to non-use or insufficient use of the 
invention by the legal owner, and also data that it has undertaken attempts to conclude the license contract with the legal owner on the conditions  corresponding the established commercial practice, 
during the reasonable period of time an d these attempts have been rejected;  WT/TPR/M/170/Add.1 
 Page 41 
 
 
The specified requirements are not applied in the cases stipulated by sub items "b" and " с" item 1. In 
case of, stipulated by the sub item "b" item 1, the legal owner is notified on such use in the shortest 
terms, and in case of, stipulated by the sub item "b"-immediately, and the volume and duration of use 
of the protected invention is limited to the purposes for which it is authorized, with payment to the 
legal owner of a commensurate indemnification.  
If the legal owner will not prove, that non-use or insufficient use of the invention is caused by the 
valid reasons, the court can give th e compulsory license for its use. 
4.  While taking the decision on granting the co mpulsory license the court should consider following 
positions: 
 a) The compulsory license should be based on individual qualities of the invention;  
 b) The volume and duration of use of the compulsory license are lim ited to the purpose 
for which it is presented; 
 c) The size of payments should be established not below the price of the similar license 
certain according to established commercial practice; 
 d) The compulsory license for technologies of semiconductors is given only for 
noncommercial use by the Kyrgyz Republic or correction of practice which under the 
decision of court or antimo nopoly body as anticompetitive; 
 e)  The compulsory license is the exclusive license and is not a subject assign to other 
person. The right of use of the specified in vention can be transferred by the person to 
whom the compulsory license is given,  to other person only together with 
corresponding manufacture on which this object is used; 
 f) The compulsory license should be given only for maintenance of needs of the market 
of Kyrgyz Republic 5. 
5.  The owner of the patent who cannot use the inven tion, not breaking thus of the rights of the owner 
of other patent, refused from the conclusion of  the license contract on the conditions corresponding 
the established practice has the right to address in  court with the claim for granting to it the 
compulsory license for use of the in vention in territory of Kyrgyz Republic provided that its invention 
provided that its invention represents the import ant technical achievement of the essential economic 
importance in relation to the invention, the secur ity document on which belongs to other person. 
By granting the specified license by court limits of use of the invention should be certain, the security 
document on which belongs to other person, in the volume necessary for use of  the invention, patented 
by the person demanding granting to it of the co mpulsory license, and also the size, terms and the 
order of payments. The size of payments thus should be established not below the price of the similar 
license certain according to established commercial practice. 
Such license is not a subject assign. The right of use of the invention, received on the basis of the 
present item, can be transferred only at a concession of  the patent for the invention in connection with 
which this right is given.  
6.  The court at removal of the decision on gran ting the compulsory license for correction of practice 
which under the decision of court or antimonopol y body is recognized as anticompetitive, has the 
right to not apply the conditions sti pulated by item 4 and the sub item " е" of item 4. Necessity of 
correction of anticompetitive practice can be taken into  consideration at definition in such cases of a WT/TPR/M/170/Add.1 
Page 42  
 
rate of commission. The court has the right to ref use in a cancelling of the sanction if there is a 
probability of that the conditions le d such sanction, can arise again. 
7.  The decision on granting the compulsory licen se can be reconsidered at appropriate observance of 
legitimate interests of the persons who have recei ved the compulsory license if the circumstances led 
it, stop to exist and it is improbable, that they will renew. The court on motivate to the application has 
the right to consider the problem on, whet her these circumstances continue to exist. 
Intellectual property rights – Trade marks and other marks, including trade names 
12.  It is unclear how well-known marks are protect ed in the Kyrgyz Republic. Article 5 of the "The 
Law of Kyrgyz Republic on Trademarks, Service Ma rks and Appellation of Origin of Goods" states 
that the criteria for a well known trademark are established by the government of the Kyrgyz 
Republic.  However, the trademark law does not me ntion the criteria used for protecting well known 
marks.  Moreover, the Law does not indicate whet her unregistered well-known marks are protected.   
 How will the provisions of the Paris Conve ntion Article 6bis and TRIPS Article 16 be 
incorporated into laws which require unregist ered well-known marks to be protected against 
uses that are likely to be confused with the well-known mark? 
12.  According to the Article 5 of the Kyrg yz Republic Law "On Trademarks, Service Marks and 
Names of Origin of goods" (hereinafter referred as to – The Trademark Law) the criteria of 
trademark notoriousness in the Kyrgyz Republic and the order of the notoriousness recognizing shall 
be established by the Government of the Kyrgyz Republic. 
In August 24, 2006 the Regula tion on well-known trademarks in the Kyrgyz Republic (hereinafter 
referred to as – Regulation) was established by the Government Resolution of the Kyrgyz Republic 
"On realization of the Kyrgyz Republic Law "On Trade marks, Service Marks and Names of Origin of 
goods".  
According to the Regulation the  Appellation Board of the State Agency of Intellectual Property under 
the Government of the Kyrgyz Republic (Appellation  Board) shall make a decision about well-known 
trademarks recognition on the territory of the K yrgyz Republic. Moreover, the Appellation Board's 
competence shall include examination of disputes concerning notorious trademarks. 
The application of interested party given to the Appellation Board, shall be the base for recognition 
any trademark as notorious.  
Furthermore, an objection of interested party given to the Appellation Board not later than five years 
from the date of official data publication concern ing the questionable trademark.  The present norm 
does not apply to trademarks, which are reg istered or are used in bad faith. 
The fixed duty shall be paid at an application filing.  
A trademark shall be recognized as well-known on th e Kyrgyz Republic territory at compliance with 
the following criteria: 
 - recognition by actual or potential consum ers of the Kyrgyz Republic the type of 
goods, to which a mark is applied or by persons who participate in distribution 
channels securing of goods, to which a trademark is applied or by business circles 
which relate to the type of goods, to which a mark is applied; 
 - high distinctiveness acquired initia lly or as a result of heavy use;  WT/TPR/M/170/Add.1 
 Page 43 
 
 
 - wide using and advertising of trademark on territory of the Republic or in the world 
market; 
 - commercial value as a result of long and heavy use in the Republic or in the world 
market. 
The application to a trademark recognition as we ll-known shall be considered by the Appellation 
Board during four months from the date of its receipt. 
In case of trademark accordance to applied requi rements the Appellation Board makes a decision 
about trademark recognition as notorio us on territory of the Kyrgyz Republic and its registration in 
the Register. 
According to the Appellation Board decision about trademark recognition as notorious and its 
registration at the Register, Kyrgyzpatent issues a certificate and publishes information in official 
bulletin during one month. 
In case when vested identification evidence is inade quate for trademark recognition as notorious, the 
Appellation Board makes a decision about refuse on satisfaction of app lied application and 
trademark recognition as notorious. 
The decision of the Appellation Board can be appealed  in a court during six months since the date of 
its receiving by applicant. 
A notorious trademark shall be protected not only rel ated to goods in connection with their notoriety 
has been obtained, and also related to every good. 
On the Kyrgyz Republic territory not only a trade mark registered in accordance with established 
legislative procedure may be recognized as a notor ious trademark but also indications which are 
acquired wide distinctiveness as a result of long an d intense use and have been became typical for 
goods of definite producer.  
Trademarks recognized as notorious in accordance with the Regulation on  notorious trademarks, 
colliding with conflicted trademarks, firm-names or  domain names, have paramount legal protection 
from the moment of the st atus of notorious receiving. 
A trademark is considered as conflicted if it or its essential part represent reproduction, imitation, 
translation and transliteration of notorious tradema rk and can provoke displacement at this mark or 
it’s essential part using, or shall be an object of application for registration or registered as a good 
which is identical or similar to the good to wh ich the notorious trademark shall be applied.  
Independently of goods, in respect of  which a trademark is used, weather it is the object of application 
for registration or it is registered, this mark is reco gnized being in contradiction with the notorious 
trademark, if it whole or it’s essential part present reproduction, imitation, translation and 
transliteration of notorious trademark and if: 
 a) usage of this trademark indicates to th e connection between goods in respect of which 
the mark is used, shall be an object of application for registration or has been 
registered and  hurts owner’s interests; 
 b) use of this mark shall damage or wea ken by unfair way distinctive character of 
notorious mark; WT/TPR/M/170/Add.1 
Page 44  
 
 c) this mark uses by unfair way the advantag es of distinctive character of the notorious 
mark. 
The regulation is developed with a view of rea lization of the Law of the Kyrgyz Republic "On 
Trademarks, Service Marks and Names of Origin of  Goods" and obligations resulting from the Paris 
Convention on Industrial Property Protection and TRIPS Agreement. 
Intellectual property rights – Geographical Indications 13.  We note that the Kyrgyz Republic has enacte d legislation to protect geographical indications 
under a system as appellations of origin. 
Please confirm that the rights of trademark owners, consistent with Articles 16(1) and 24(5) of the 
TRIPS agreement are protected.  In particular, please confirm whether trademarks in the Kyrgyz 
Republic would be protected from confusingly sim ilar and later-in-time ge ographical indications. 
13.  In compliance with article 3 of the Kyrg yz Republic Law  "On Trademarks, Service Marks and 
Names of Origin of goods" (hereinafter referred to  as - The Trademark Law) trademark owner has an 
exclusive right for using and managing trademark, and also can forbid its using by another persons. 
In the Kyrgyz Republic nobody can use trademark without owner’s permission. Trademark owner’s 
right is recognized as infringed if a trademark or  a good is used without permission, or at 
application, import, offer for sale, sale and other introduction into the economic circulation or storing 
for this purpose of this trademark, indicated by th is sign which is similar to confusion with it, 
concerning similar goods. 
Exclusive rights for trademark arises from the date of data publication of trademark registration in 
the State Register of Trademarks of the Kyrgyz Republic , in official bulletin edited by Kyrgyzpatent. 
The unauthorized use as Internet address of an indication that is identical or si milar to confusion with 
the trademark of this owner is also recognized as an infringement of the trademark owner’s right. 
According to the Article 4 of the Trademark Law the registration of the following trademarks or their 
elements of indication is not allowed: 
 1) false or deceitful for a cons umer concerning good or its producer; 
 2) representing or containing the name of origin of wines or spirits, protected by virtue 
of the Kyrgyz Republic international agreemen ts, if such indications are destined for 
wine or spirits having different  origin and also nominally directin g to the true place 
of manufacture, but giving false idea about its origin. 
According to the article 5 of the Trademark Law the identical or similar trademark shall not be 
registered as trademarks for homogenous goo ds if they may be confused with:  
 1) trademarks which have been earlier regis tered or declared for registration in the 
Kyrgyz Republic to the name of another person with respect to similar goods, having 
more earlier priority; 
 2) trademarks of another persons, protected  by virtue of the Kyrgyz Republic 
international agreements. 
Registration of an indication that is of similar to  confusion to the trademark, mentioned at points 1 
and 2 concerning homogenous goods is admissible after the owner’s consent providing to register this 
trademark.   WT/TPR/M/170/Add.1 
 Page 45 
 
 
Indications, identical or similar to confusion shall not be registered as trademarks for any good if 
they may be confused with:  
 1) trademarks, which are  recognized as well-known in accordance with established 
procedure in the Kyrgyz Republic; 
 2) names of origin of goods, protected in  compliance with the present Law except cases, 
when they are included as unprotected elemen t of a trademark that is registered to 
the name of person is entitled to use this designation.  
EUROPEAN UNION  
I.  ECONOMIC ENVIRONMENT (3)  S
TRUCTURAL POLICIES  
Report by Kyrgyz Republic , pages 14-17 
We would be interested in further information on the economic and fiscal measures implemented by 
the government, including information on the fiscal  instruments to be applied in the future. 
The main financial measures of the Government of  the Kyrgyz Republic for 2006-2007 are settled in 
the Working Plan on reforming the system of State finances management. This Plan was approved by 
the Decree of the President of the Kyrgyz Republic 3337, dated fr om 29 June, 2006.  
A Working plan on reforming budgetary process was elaborated by the Ministry of Finances and 
Economy in the context of fulfilling one of the cond itions of the credit directed to the structural 
reorganization in public administration (GSAC).  
The Working plan is aimed on settling problems that  will ensure steady and effective functioning of 
the system on State finance managing.  
The implementation forms include analytical doc uments, hand-books, legal acts, training workshops 
and practical activities. 
We would be interested in further information on tax reform, including on the plans to strengthen the 
tax administration (revenue coll ection) and to reduce taxes. 
In accordance with the agreements of Memor andum on Economic policy for 2005-2007, fundamental 
sectors in the context of tax policy reforming are further reduction of tax burden of economic entities 
and increasing the economic growth rate.  
Thus, currently a favorable tax regime was already established. A rate of income tax for natural 
persons was set as 10% with a basic exemption limit  of 650 soms since January 1, 2006; a rate for 
profit tax for enterprises was also  decreased from 20% to 10%, sin ce 1 January 2006, and for natural 
and permitted monopolies beginning from January 1, 2007;  agricultural products are released from 
VAT; some local ineffective taxes were abolished, and import of basic production means was released 
from VAT.  
With a view of pursuing further effective tax po licy by establishing highest possible favorable terms 
for stirring up the activity of economic entities, ensuring the harmonization of taxation system with 
the neighboring countries and other international partners, providing influx of direct investments and 
implementation of State development programs in  the context of Comprehensive Development 
Program of the Kyrgyz Republic till 2010 and  Nati onal Strategy for poverty reduction, a Mid-term WT/TPR/M/170/Add.1 
Page 46  
 
Tax Policy Improvement Strategy for 2006-20 08 and the staff of the Commission on it’s 
implementation was set by the President Decree #172, 13, April, 2006. 
The emphasis according to this Strategy is made  on further reducing the ta x burden by the economic 
entities. Thus, following most important  measures are intend to be realized:  
 - Adoption of the new Tax Code of the Kyrgyz Republic; 
 - Widening the taxable base with a simult aneous reduce of tax burden by economic 
entities, including revise of land tax rates, elimination of all FEZ, except FEZ 
"Bishkek".  
 - Approving regulations on effective tax collection for real estate. After final 
introduction of which a possibility of e limination of numerous local taxes and 
reducing the rates of non market taxes up to  full elimination (road taxes, FPLCS) will 
be considered. 
 - It is planned to improve and strengthen the tax management, increase of effectiveness 
of tax and customs bodes activities, particul arly: reducing the threshold, established 
while tax concealing and collecting, whereupon the criminal responsibility is 
enforced; working out of bill on incom es legalization; transparency ensuring, 
informational openness of fiscal body’s activities; transparency of process on 
expending budgetary means. 
 - A special emphasis is made on impro vement of taxation system for SMEs, and on 
cooperation with the international organiz ations on worked out and acting projects 
taking into account the progressive exp erience of developed countries.  
At the same time with the Strategy for Improvi ng the tax policy in the Kyrgyz Republic for 2006-2008, 
the significant issue within the fiscal policy managing to be pointed out is the adoption of the new revise of the Tax Code.  
Currently, the draft of new Revise Tax Code of th e Kyrgyz Republic was submitted for consideration 
of Jogorku Kenesh (Parliament) of the Kyrg yz Republic by the Government Resolution #212, 
31 March 2006.  
The draft of new Revised Tax Code is not aimed only on pursuing fiscal policy, it has also social 
direction and envisages such measures, as: 
 - release from VAT of all import of fundamental means for VAT payers; 
 - establishing a single rate of income  tax from natural persons as 10%; 
 - establishing 10% profit tax for legal persons; 
 - reducing the rate of tax on income for n on-resident to 15%, which in acting Revise of 
the Tax Code were at 30% level. 
 - sufficient cut of list of local taxes and collection.  - rendering the conscientious taxpayers more fa cilitated (liberal) regime of taxation, at 
the same time a tax managing pressure on unconscientious taxpayers will be 
strengthen due to administration improvement.  For instance, extension of the terms of 
periodicity of controls for conscientious payers up to 3 years.  
 - Rendering sufficient indulgence in the adm inistrative and adjective parts of the draft 
Code (all unavoidable contradictions in the legislation are interpreted in favor of  taxpayer, rules envisaging minimization of taxpayer contacts with the tax services, 
taxation principles were settled, in particular  "principle of conscientiousness of the 
taxpayer"). 
 - Cases where inconsistencies of statuto ry and legal acts with the Tax Code are 
available were determined, and retirement of despairing debts is foreseen.     WT/TPR/M/170/Add.1 
 Page 47 
 
 
With a view of pursuing further effective tax po licy by establishing highest possible favorable terms 
for stirring up the activity of economic entities, ensuring the harmonization of taxation system with 
the neighboring countries and other international partners, providing influx of direct investments and implementation of State development programs in  the context of Comprehensive Development 
Program of the Kyrgyz Republic till 2010 and  Nati onal Strategy for poverty reduction, a Mid-term 
Tax Policy Improvement Strategy for 2006-20 08 and the staff of the Commission on it’s 
implementation was set by the President Decree #172, 13, April, 2006. 
At the same time, it is necessary to point out that currently a draft of new Revised Tax Code was 
elaborated and sent for approval of Jogorku Ken esh, which covers all measu res of tax legislation 
aimed on creation of highest possible favorable term s for activization of ec onomic entity’s activities, 
where making changes in the context of exclusion or inclusion of some kinds of taxes are supposed.   
Early the Ministry of Economy and Finance of the Kyrgyz Republic has informed that the fundamental 
directions, contributing the creation of favorable ec onomic terms for stirring up the economic entity’s 
activities and influx of direct investments into th e national economy would be covered in the Tax 
Policy Improvement Concept of the Kyrgyz Republic. 
Alongside with this, a taxable base will be widened, in  form of:  inclusion of property tax; increase of 
land tax rate for mid-term prospective and further change of it’s collection based on the market price 
of the land; inclusion of tax for use of bosoms w ith the simultaneous elimination of assignments for 
reproduction and development of sources of minerals and raw materials; regulation the legal base of 
taxation while abolishing (bankruptcy) the entity ; improving the legislation by exclusion of 
contradictory and unclear provisions of the Tax Code of the Kyrgyz Republic; exclusion of taxation 
issues from all legal documents and inclusion them into the Tax Code of the Kyrgyz Republic and 
bringing to conformity the guidance materials and other sub legislative acts with the Tax Code; 
cancelling the margins, related to the separate economic entities, and groups (sectors) of entities; 
release from VAT the modes of supply, but not th e definite categories of entities; cancellation of 
certain acting VAT margins stage by stage. 
Above mentioned directions of the tax reforms are also covered by the Memorandum on economic 
policy (MEP) for period from October 1 2001 to September 30, 2002/2004, also for 2005-2007, signed between the Kyrgyz Republic and the IMF. B eside this, Kyrgyz republic committed itself not to 
apply new margins both for domestic and foreign investors.  
It is necessary to point out that the rates of so me kinds of taxes and duties are annually approved by 
the Law of the Kyrgyz Republic, which possibly ma y not be accepted by the investor, and the latter 
may choose more favorable terms for himself, t hat will lead to the discrimination against other 
economic entities and create unequal terms for carryi ng out activities on the territory of the Kyrgyz 
Republic. 
(4) 
 DELOPMENTS IN TRADE  
WTO Secretariat's Report , pages 12-15 
Could further information be provided on future pl ans to secure and promote direct exports to the 
Kyrgyz Republic? 
Kyrgyz Republic does not develop plans on ensuring import into the Kyrgyz Republic, it only makes a 
prognosis for a near-term outlook on a basis of import volume WT/TPR/M/170/Add.1 
Page 48  
 
(5)  T
RENDS AND PATTERNS IN FOREIGN INVESTMENT  
(6)  O UTLOOK  
WTO Secretariat's Report , pages 16-19 
Report by Kyrgyz Republic , page 34 
Could further information be provided on future  plans to secure and promote direct foreign 
investment? 
What issues will be addressed in the ongoing re vision of the current Law On Investments? 
With a view of strengthening the State policy in attracting and promoting direct investments, 
Department of direct investments policy was create d within the Ministry of Economy and Finance of 
the Kyrgyz Republic. Newly-created Department is res ponsible for coordination of activities of the 
state agencies in order to achieve more successful  promotion of the country’s investment potential. 
Currently, an External Marketing Strategy has been  worked out by the Department on foreign direct 
investments and sent for approval. After approval of  this document, a concrete action plan of the 
ministries and agencies will be adopted, for attracting investments.  
In order to effectively solve the matters relate d to the attraction and promotion of the direct 
investments, an issue of establishing interdepar tmental deliberative body "Investment Council" 
involving the representatives from concerned mi nistries and agencies is being worked over.   
It is also necessary to develop assisting the in vestors by establishing the one-window system "One-
Stop-Shop", which will contribute the potential investors by giving more qualitative consultation 
services, this, in its turn will positively influence the investment climate. Investors, in their turn, may 
assist the One Stop Shop, for instance by ensuring office equipment, Internet connection and so on. 
II.  TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
Report by Kyrgyz Republic , page 23 
What is the current situation regarding a bill accepte d by the Kyrgyz Parliament some time ago, "on 
countering the financing of terrorism and legalization of the illicit income"? 
In practical terms, we would be interested to know  which more concrete efforts are planned for the 
near future in order to secure the financial system. 
The Jogorku Kenesh passed the Law of the Kyrg yz Republic on June 16, 2006 On Prevention of 
Terrorism Financing and Legalization (Laundering) R evenues generated from Crime,  which will 
enter into force on November 8, 2006. 
The NBKR is currently preparing the regulatory fr amework for the implemen tation of the Law On 
Prevention of Terrorism Financing and Legalization (Laundering) Revenues generated from Crime. A 
draft normative act that regulates customer identific ation procedures upon open ing bank accounts is 
being at the approval stage; draft amendments to a number of normative and legal acts are being 
developed on foreign currency exchange transactions, on the activity of pawn shops, on   measures 
applied to banks and other finance and credit instituti ons licensed by the NBKR. Jointly with the 
Financial Intelligence Services of the Kyrgyz Republic , issues are being solved regarding information 
and technical interaction; the format and proced ures for submission of information are being 
developed on suspicious transac tions and deals by commercial banks and other finance and credit 
institutions licensed by the NBKR to an authorized state agency (FIS KR).    WT/TPR/M/170/Add.1 
 Page 49 
 
 
(3)  T RADE POLICY FORMULATION AND IMPLEMENTATION  
WTO Secretariat's Report , pages 22-23 
Report by Kyrgyz Republic , page 52 
From the information provided, we understand that one  of the objectives of Kyrgyz trade policy is to 
help promote export diversification, with a view  to focus on value added sectors and exports of 
finished products. 
What measures/initiatives has the country already unde rtaken to diversify its export base and markets? 
What is the anticipated schedule for the adopti on of the Programme for Export Development for 
2006-2008 and the Programme for Industrial Development 2006-2008? 
Sustainable development 
Does the issue of trade and sustainable developmen t fit into Kyrgyz Republic's overall development 
strategies? 
Trade and environment 
What mechanisms does Kyrgyz Republic have in place to ensure adequate coordination of 
environmental policy and trade policy?  
To create favorable conditions and opportunities fo r export diversification the Kyrgyz Government 
adopted Export Development Program for 2002- 2004 on August 22, 2002 and the Program for 
Sustainable Development of Industry of the K yrgyz Republic for 1999-2005 and the Program for 
Development of Industry in Medi um-Term Perspective (2002-2004). 
The Programs includes implementation of such import ant projects as improvement of the legislative 
and normative base that regulates export in the re public, introduction of new and modern marketing 
and trade systems, which includes creation of e- commerce and international marketing system in 
Kyrgyzstan, priority development of export enterprises.  
Negotiations have been held with major trade partn ers to remove trade constraints, as a result of 
which the anti-dumping export duty for cement to  Kazakhstan has been removed and number of 
agreement signed: with Kazakhstan in the area of power and gas industries, with Azerbaijan – on free 
trade, and Iran in the area of trade.  
Also, to assist local manufa cturers, jointly with EAN Kyrgyzstan (European Article Numbering 
Association), Resolution of the KR Government № 70 of 17.02.2003 "On introduction of bar coding 
on exported products in the Kyrgyz Republic " has been developed and approved. Currently, 
140 business entities have joined the Ar ticle Numbering Association. 
Important steps have been taken in the area of international and legal regulation of foreign 
investment protection- related issues by means of concluding a number of bilateral  agreements on 
mutual protection and promotion of investments.  
The country’s marketing strategy "Kyrgyzstan is ope n to the world" has been developed and adopted 
named. The strategy specifies priority directions to  attract direct investments. For the last 2 years 
(2003-2004), there has been a growth of direct investme nts made in the industry,  which amounted to 
US$ 120 million.  WT/TPR/M/170/Add.1 
Page 50  
 
There has been a standing consulting group set up under the Ministry of Agriculture, Water 
Resources and Processing Industry, which provides consulting services to agro-processors and agribusinesses on business plan development and investment project -related issues.  
The following organizational me asures have been taken: the ma rketing strategy for agro-product 
purchase, processing, and sales system has been ap proved which provides for measures and ways for 
solution of issues on expansion of their sales geography.  With this purpose, the Republican Agro 
Processing Exchange has been set up under the Mini stry of Agriculture, Water Resources and 
Processing industry including the Kyrgyz Interregi onal distribution system "Bishkekskiye contracty", 
Kyrgyz Agro-processing Corporation, the co-founders of which appeared  to be 49% from a Russian 
company "Bridge" LLC. Also, to sell agro-products at  CIS markets, a Kyrgyz Russian "KyrRossExpo" 
JV has been opened as well as trade houses in Novosibirsk and Ekaterinburg cities, and trade mission 
of KR to the RF regions, Kazakhstan, Byelor ussia, Ukraine, and other foreign countries.  
To promote Kyrgyz goods at external markets, the Chamber of Commerce and Industry of the Kyrgyz 
Republic has held international and republican fairs and exhibitions.  
Active diversification of industries, without taking  into account gold, focusing on high value added 
industries and export of finished products let us diverge from  raw materials focus of economics. 
These industries include textile and clothing, agro pr ocessing, energy, mining, and construction. They 
mostly use local resources but are not al ways focused on their deep processing.  
Export diversification implies supply of state-of-t he-art, high-quality and high-tech local goods to 
external markets.  
For this purpose, the primary measures taken by the government policy include: 
 - improvement of the normative and legal base of foreign economic activity, currency, 
tax and tariff policies which promote export and efficient methods for trade and 
economic cooperation; 
 - creation of foreign trade-related information system which is focused on the 
information and consulting service network; 
 - service export promotion; 
 - participation in the work of multilat eral economic cooperation and international 
currency and finance organizations; 
 - formation of mechanisms for government  support for working capital financing of 
enterprises- exporters, export guarantee and insurance, financing of export-oriented 
and efficient projects; 
 - solution of issues related to the transportation support of export supplies; 
 - expanding of interaction of executive aut horities at all levels with business 
associations, the Chamber of Commerce and Industry, etc; 
 - conduction of fairs, exhibitions and ot her promo events to support Kyrgyz exports; 
 - increasing the role of foreign institutions of the Kyrgyz Republic, first of all, trade 
missions in their Kyrgyz export promotion efforts; 
Of course, there are no easy solutions made and qui ck results obtained in the course of performing 
the above work, therefore the product export structu re in a medium term perspective won’t undergo 
considerable changes and will remain raw material-o riented. Physical and monetary value of export 
of raw materials and semi-finished products will remain , which is first of all due to the growth of 
world consumption of energy  and non-ferrous metals.  
To diversify export and ensure its growth, a special a ttention should be paid to the improvement of the 
quality of exported goods and their competitiveness. In  this regard, the prim ary measure undertaken  WT/TPR/M/170/Add.1 
 Page 51 
 
 
by the state policy is the technical regulation ref orm which is currently being implemented and which 
will in general result in the following:  
 - increased opportunity for the industry and businesses to create competitive products 
at the global market by means of removal  of total supervision and control over 
manufacture of products and  substantial re duction of requirements set to the product 
conformance evaluation by the government; 
 - reduction of constraints for the locally- produced goods to enter the global market 
through application of international pr oduct standards and setting internationally-
recognized accreditation system; 
 - investment climate improvement by means of creation of transparent government 
standard setting requirements in compliance with international requirements to 
products (processes, and services) and c onformance evaluation methods.  
Also, one more important objective of the governme nt is ensuring institutional basis for a rapid 
development of the private sector’s legal activ ity which would enable export diversification and 
create work places.  
 - Development and Import Substitution Programme  in the KR for 2007-2010, which is 
currently drafted, will be submitted to the Government of the Kyrgyz Republic by 
November 1, 2006.  
Industry Development Program is  being developed for YY2007-2010. 
Sustainable development Currently the Ministry of Economy and Finance is actively working on completing the project on 
"Country development Strategy for 2006-2010". The C ountry Development Strategy (CDS) is the most 
significant conceptual document, reflecting the mi d-term vision of the Kyrgyz Republic, determining 
the main development directions and the activity of the country for 2006-2010. The general intent of 
the CDS is the raise of living standards and qua lity, through sustainable economic growth, creation of 
terms for full employment, receiving high and stable incomes, the availability of wide spectrum of 
social services and following the high living standards.  
The CDS economic policy will be first of all aime d on ensuring sustainable economic growth due to 
promoting the competitiveness of the country, through development intensification and leading 
increase of labor productivity, as well as on raising th e level of Kyrgyz Republic’s integration into the 
world economy through intensive growth and diversification of export while preserving and 
developing the liberal external trade policy.    
These measures will be realized through encouraging  the development of SMEs and development of 
sectors, on which the Kyrgyz Republic has both evi dent and comparatively potential advantages, in 
particular, energy, mining, agricultural processi ng and numerous service sectors (including trade 
services). 
Trade and environment 
The Economic integration process into global co mmunity stipulated for the need for reviewing 
efficient environmental protection legislation taking into account mandatory requirements for 
ensuring ecological safety.  
In the period from 1999 to 2001,  the main regulatory framework had been developed in the area of 
environmental protection and efficient  nature m anagement and a number of Law adopted including: WT/TPR/M/170/Add.1 
Page 52  
 
On Protection of Environment  (1999), On Atmospheric Air Protection (1999), On Ecological 
Expertise  (1999), On Biospheric Territories in the Kyrgyz Republic  (1999), On Fauna (1999).  
In 2001, the following Laws were passed: On Pro duction and Consumption Wastes  (2001) , On 
Protection of Use of Flora (2001).  
Currently, they’re reviewing nature protection-related legislation to implement provisions of the KR 
Law On Technical Regulation. The State Agency took part in drafting of Regulation on procedures of 
conformance assessment of entiti es and ensuring safety measures in the area of veterinary, 
quarantine of plants, epidemiology, sanitary, ecol ogy in the Kyrgyz Republic .  The KR Government 
Resolution №617 of December 26, 2005 approved the Regulatio n on the State Agency, in which they 
specified goals and functions includi ng those on state supervision and oversight.  In the process of 
drafting the regulation on the State Agency, the provision of the KR Law on the Fundamentals of 
Technical Regulation had been taken into cons ideration, concerning state control and supervision 
issues.   
To implement the KR Law on the Fundamentals of Technical Regulation, the State Agency is currently 
taking an inventory of normative and legal documents. They’re planning to develop Draft Law of the 
KR On General Technical Regulation On Ecologica l Safety. The above Draft Law will specify major 
provision of technical regulation in the area of  ecological safety and set requirements to ensuring 
ecological safety of production processes, storage, transportation and utiliz ation of products.  
The conformance assessment in the area of  ecology is made in the form of:  
 - State ecological expertise of project and pre-project documentation;  
 - State ecological control over the producti on, storage, transportation and utilization 
of products;  
 - State ecological control over the u se of flora and fauna by entities.  
So far, within the simplification of approval and permit procedures for use of natural resources by 
entrepreneurs, which is directly connected with  importation and exportation of goods and services, 
efforts are being made to simplify the issuance of cer tain types of licenses and permits in the area of 
environmental protection including the permit for importation of certain goods.  
After accession to WTO by the Chinese People's Republic, the Kyrgyz Republic has got both a 
powerful market and powerful raw material and production base.  
On the one hand, Kyrgyzstan has become a kind of  bridgehead upon transpo rtation of goods and 
services to China and back. On the other hand, agai nst the background of production ecologization, 
Kyrgyzstan has become an object for possible inve stment of hazardous production facilities and use of 
old-dated technologies, whereby China is not a par ty of numerous nature protection international 
Conventions, with Kyrgyzstan being one.  
Kyrgyzstan joined international conventions in th e area of environmental protection and number of 
international agreements (in particular): 
 - Vienna Convention on substances that destroy the ozone layer and Montreal Protocol 
(ratified in 1996 г.).  
 - Basel convention on control over trans- border transportation of hazardous wastes 
and their removal (ratified in 1996).  
 - Convention on biological diversity (ratified in 1996).   - Cartagena protocol on biological safety.   - Convention on international  trade in endangered species  
 - Framework convention on clim ate change (ratified in 2000).   WT/TPR/M/170/Add.1 
 Page 53 
 
 
 - Kyoto protocol (2003).  
 - Rotterdam convention on approval proce dure based on complete information with 
regard to certain dangerous chemicals a nd pesticides in international trade.  
 - Stockholm convention on persistent pollutants 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  MEASURES DIRECTLY AFFECTING IMPORTS  
(i)  Customs procedures WTO Secretariat's Report
, page 43 
The Kyrgyz Republic has undertaken a number of  Trade Facilitation measures, notably through a 
reform of its customs code in 2004. However,  the WTO Secretariat's Report notes that customs 
formalities and procedures, both formal and informal, restrict imports.  
What reforms are planned to address this?  What concrete technical assistance  needs does the Kyrgyz Republic have to help it take forward the 
reform process?  
Does the Kyrgyz Republic have plans to reforms it customs' fees, which are not cost based and where 
the WTO Secretariat's Report notes business concerns? 
A diagnostic mission of the World Customs Organi zation (WCO) had a working visit to the Kyrgyz 
Republic on September 13-23, 2006, for assessment of preparedness of the Kyrgyz Republic for 
introducing the Security and Trade Facilitation Framework Standards.  
During the mission the delegation has worked on assessing the current Customs services of the 
Kyrgyz Republic, ongoing reforms and modernization,  equipped level of customs points, changes of 
the legislation base, in general the level of pre paredness of the Customs S ervices for introducing the 
apply of Security and Trade Facilitation Framewor k Standards, worked out by the WCO and intended 
to solve the one in two task: effectively oppose the new challenges and threats within the external 
economic activity field and at the same render th e numerous preferences fo r conscientious economic 
operators with a purpose of facilitating the terms of international trade turnover.  
The Security Framework Standards were approved  on 105-106 WTO sessions in summer 2005. The 
Kyrgyz Republic among the 166 countries participants signed the resolution of intending to introduce the Framework Standards.  
It is necessary to pint out that the Kyrgyz Re public has already respective legislation base to 
introduce some elements of the Framework Standards.  
In accordance with the new Customs Code of the Kyrgyz Republic, entered into force since 
January 1, 2005, some of the principles in running the customs activity are: 
 - to conduct the customs control on a basis of risk management and audit methods 
(including selective control); 
 - application of electronic data base and electronic methods of information change 
while holding customs procedures; 
 - providing the concerned parties with al l necessary information on Laws, legal and 
administrative acts on customs servi ces, regulations and procedures. WT/TPR/M/170/Add.1 
Page 54  
 
Currently, the Customs Service of th e Kyrgyz Republic has the sufficie nt international legal base in 
bilateral and multilateral forms between the custom s bodies of the different regions in the world.  
A certain level of progress is achieved in est ablishing bilateral and multilateral agreements on 
various sectors of the customs service and policy bot h with neighboring countr ies of Central Asian 
region, and CIS countries. With a view of unificat ion of customs legislation and introducing the 
generally recognized standards for facilitating and harmonization of customs procedures, a 
productive work is done also within the Council of Customs Services Heads (CCSH) of the EAEC and 
CIS countries.  
The Customs Services of the Kyrgyz  Republic also cooperates with the EU countries on the issues of 
applying the customs legislation, revelation and inves tigation of this legislation violation. The 
Customs Service of the Kyrgyz Republic is aiming on establishing the partnership relations with the 
business community and the modern Customs legislati on is developed on basic principles of the Kyoto 
Convention.  
Thus, with the aim of establishing the direct contac t between the customs services and business sector, 
ensuring the participation of business representatives in  discussions of the regulations and legal acts, 
interpretation of the customs legislation provis ions, concerning the external economic activity a 
Consultative Council under the Customs Service of the Kyrgyz Republic was formed in 2004, jointly 
with the Exporter’s Association, Congress of Business  Association, with the help of USAID (USA).The 
Council is involving the Parliamentarians, experts fr om other State agencies, such as Ministry of 
Transport and Communication, National Institute  for Standardization and Metrology, etc. 
The activity of the Consultative Council is interpretation of the legislation and the comments to them 
are allocated on the web-site of the State Customs Inspection. 
In 2002 the Government of the Kyrgyz Republic has approved the Custom s service Development 
Concept till 2010, in accordance of which a systema tic work on modernization of customs services is 
fulfilled.  
Following directions for modernization were determined:  
 - development of IT policy within the cu stoms service (automation and computerization 
customs service of the Kyrgyz Republic); 
 - material and technical basis of the customs services;  - customs infrastructure;  - reforming and improving the customs legislation;  - customs registration and control; 
 - improving the management system and people ware of the Customs service. 
With a purpose of modernizing the customs service in  the Kyrgyz Republic a joint work with various 
international organizations and international credit or ganizations is being done, in order to ensure 
the technical assistance. (ADB, Europe an Customs, USA Embassy, WB, etc.) 
Practical activities 
Within the framework of EuroAsian Economic Comm unity the customs agencies have taken a decision 
"On synchronization of work on introducing Secu rity and World Trade Facilitation Framework 
Standards" (The decision of the CCSH under the EC EAEC N293, 13 October, 2005), according to which the Customs Service of the Russian Federation is the coordinator of these issues.         WT/TPR/M/170/Add.1 
 Page 55 
 
 
- Problematic issues 
 - limited material, technical and professional resources on processing the incoming 
information. This is connected both w ith the lack of financial means and qualified 
experts. 
 - The risk management system needs to be revised. As it was already mentioned, the 
current system shall be finally harmonized with the European system. 
 - The preliminary electronic declaration is not applied. This is a matter of time and 
respective financing of the projects. 
 - There are no realization mechanisms fo r Standards and regulations on submitting 
and analyzing the electronic forms of the trade and shipping documentation. 
- Ways of settlement 
 - Developing the draft Plan for introducing Framework Standards; 
 - Developing the Special Program;  - Developing the Special Programs for agencies. 
(viii)  Contingency measures 
WTO Secretariat's Report
, pages 58-59 
Could the Kyrgyz Republic clarify on which legal b asis it would impose anti-dumping measures or is 
Article 3 of the Agreement on Implementation of Artic le VI of the General Agreement of Tariffs and 
Trade 1994 directly applicable? 
The legal basis for antidumping measures consist from the Law of the KR on Antidumping as of 
October 31, 1998 and the Regulation on Conduct of Antidumping Investigation which is approved by 
Resolution of the KR Government #14 as of Janua ry 20, 2001. The Kyrgyz legislation is in full 
compliance with the requirements and provisions of the Agreement on Implementation of Article VI of 
the General Agreement of Tariffs and Trade 1994. Provisions of Article 3 of the Agreement are 
implemented into the abovementioned Law and Regulation. 
(ix)  Government procurement 
WTO Secretariat's Report , page 59 
Paragraph 59 :  Although observer of the GPA, The Kyrg yz Republic has been an observer in the 
GPA Committee for some time. Now that new Govern ment procurement legislation has been adopted, 
would the Kyrgyz Republic consider becoming more active? 
Paragraph 62 :  WTO Secretariat's Report mentions 20% preferential price margins for domestic 
suppliers on goods and services; as th ey can be considered quite high by world standards, would the 
Kyrgyz Republic envisage to reduce them and if so, when? 
Paragraph 63 :  When does the Kyrgyz Republic plan to introduce electronic procurement? 
Related directly to the normal procedures of contr act launching and establishment, does the legislation 
on public procurement cover all public entities awarding contracts? Does it cover all kinds of sectoral 
procurement? Where and how do public entiti es publish tender notices? Are these publication 
requirements enforced in practice? What is the st atus at this moment regarding the Draft Law on e-
Procurement? WT/TPR/M/170/Add.1 
Page 56  
 
In respect to Kyrgyz official bodies (in particular the State Agency for Government Procurement), are 
there any plans to reinforce their administrative capacity?  
In respect of the application of legal texts, what review procedures are available in the event of an 
alleged public procurement infringement of the ru les? Which administrative or judicial bodies 
conduct this review? What powers do they have? 
Paragraph 59:   The Government of the Kyrgyz Republic  carries out reforms in the government 
procurement system since the independence of th e Republic. The main stages in the government 
procurement reforms were the adoption of the legi slation in the Government Procurement sector in 
1997, and the second revision of the Law on Govern ment Procurement in 2004. This document 
contains some recommendations on further d evelopment and improvement of institutional and 
organizational measures on implementation of the cu rrent legislation and on further development of 
the government procurement syst em in the Kyrgyz Republic. 
In some regions of the Kyrgyz Republic, a local consultants were engaged by the authorized State 
Agency on Government Procurement for preparing an  a review on assessment of the terms and needs 
in institutional and organizational measures on government procuremen t. These research works 
covered procuring entities in Bishkek, Chuy, Osh and Jalalabat regions and determined several 
priority items, which need to be considered, w ith a view of strengthening institutional and 
organizational measures and resources for proc urement system. Thus, including:   
 - increase the effectiveness of Procu rement Divisions and Tendering Commissions, 
which are established in procuring entities in accordance wit the Law on Government 
Procurement and status of the Division on Procurement and Tendering Commission 
of the procuring entity; 
 - development of human resources and professional approach to the government 
procurement system; 
 - monitoring of Procurement Divisions and Tendering Commissions;  - Ensuring with the necessary office equi pment, introducing and promotion use of 
updated information and communication technologies in the procurement process.  
Paragraph 62.   The accession of the Kyrgyz Republic to the World Trade Organization obliges the 
Republic to harmonize its national legislation w ith the commitments ta ken during the accession 
process. One of the recommendations given by the USA and EU was to eliminate the restrictions in 
participating at the tenders on the base of nationality , hence, the Article 3 was fully modified, by 
excluding restrictions based on nationality, and with the purpose of protection of domestic market a 
facilities to local supp liers were foreseen.  
Applying the 20% price margin for domestic suppli ers on delivering goods is caused by the condition 
that, domestic suppliers carry all tax payments w ithin the Republic (VAT 20%), payments for Social 
insurance Fund and the application of this facility  allows balancing the price proposals of domestic 
suppliers with foreign companies. 
Also, the contractors on work procurement are given  price margin up to 10%. The offered rate was 
based on the experience of countries, and the fact t hat the procurement of work is highly expensive 
and raw material intensive was taken into acco unt, and the use of more high rates are not 
appropriate.  
Adoption of this Article in the offered version en sures the development of national producer with a 
final result of economic growth on the one hand, a nd implementation of the obligations under the 
WTO on the other.   WT/TPR/M/170/Add.1 
 Page 57 
 
 
Paragraph 63 
1.  Introducing the system of information technologi es in the system of the State Agency and creation 
of e-government procurement system in the Kyrgyz Re public are the issues of high priority, which are 
settled by the State Agency. The significance of e- procurement is confirmed by such strategic 
documents as: National strategy "ICT for the d evelopment of the Kyrgyz Republic" approved by the 
Decree of the President of the Kyrgyz Republic, March 10, 2002, #54, World Bank Report 
"Procurement in the country", etc. 
For complex settlement of the objectives in this a rea a financial and material support is required. The 
Ministry of Finance and Economy of the Kyrgyz Republic while preparing the draft budget for 2007 has settled an allocation of means in sum 2,0 mln.  Som for the purposes of introducing e-procurement 
system. The creation of the e-procurement system is planned for 2007.  
2.  With a view of e-procurement system regul ation, State Agency has developed a draft Law on 
"Rules of holding electronic government procurement".  
According to the Article 58, paragraph 3 of the La w on Government procurement, regulations of Civil 
Code of the Kyrgyz Republic enter into force on ce the contract is concluded. Further work is 
conducted according to the terms of the contra ct. The Law on Government procurement covers all 
kinds of sectoral procurement. According to th e Article 13, paragraph 4 of the Law on Government 
Procurement, procuring entities publishes without  fail an announcement in Media and in Government 
Procurement Bulletin, issued by the Information P ublishing Center. With a view of e-procurement 
system regulation, State Agency has developed a draft Law on "Rules of holding electronic government procurement".  
The Government of the Kyrgyz Republic carries out reforms in the government procurement system 
since the independence of the Republic. The main st ages in the government procurement reforms were 
the adoption of the legislation in the Governme nt Procurement sector in 1997, and the second 
revision of the Law on Government Procuremen t in 2004. This document contains some 
recommendations on further development and impr ovement of institutional and organizational 
measures on implementation of the current legisla tion and on further development of the government 
procurement system in the Kyrgyz Republic. 
In some regions of the Kyrgyz Republic, local co nsultants were engaged by the authorized State 
Agency on Government Procurement for preparing a review on assessment of the terms and needs in 
institutional and organizational measures on governme nt procurement. These research works covered 
procuring entities in Bishkek, Chuy, Osh and Jalala bat regions and determined several priority items, 
which need to be considered, with a view of st rengthening institutional and organizational measures 
and resources for procurement system. Thus, including:   
 i. Increase the effectiveness of Proc urement Divisions and Tendering Commissions, 
which are established in procuring entities in accordance wit the Law on Government 
Procurement and status of the Division on Procurement and Tendering Commission 
of the procuring entity; 
 ii. Development of human resources and professional approach to the government 
procurement system; 
 iii. Monitoring of Procurement Divisions and Tendering Commissions;  iv. Ensuring with the necessary office equi pment, introducing and promotion use of 
updated information and communication technologies in the procurement process.  
Regarding the procedures of review, in case viola tion of government procurement regulations is 
assumed, the following methods are applied. According to the Article 413 of the Administrative Responsibility Code of the Kyrgyz Republic, th e review and considering the administrative WT/TPR/M/170/Add.1 
Page 58  
 
infringements, as well as recovery of administrati ve penalties for violation of the legislation on 
government procurement is conducted by the Auth orized State Body (State Agency on government 
procurement and material reserves). 
(xi)  Standards and other technical requirements WTO Secretariat's Report
, pages 61-64, paras 70-81 
When will the Kyrgyz Republic complete its review  of technical regulations and standards? Is it on 
target to end its transitional period in 2009? 
Please explain the reference to "non-operational standa rds" in paragraph 72. Why have these not been 
eliminated? 
Is it true that many imports that meet internationa l standards and have been certified abroad still need 
to undergo domestic testing and certification (parag raph 74) ? What is being done to stop this? 
The Law of the Kyrgyz Republic "On technical regul ations" provides a transition period, within these 
period the technical regulations, setting mandato ry for application and observance requirements for 
products, processes (methods) of production, stor age, transportation, realization, operation and 
utilization, as well as mandatory procedures of conf ormity assessment shall be adopted within 5 years 
after the Law comes into force, i.e. till 2009.  
The procedure of national standards revision is set according to the international requirements, once 
in five years.  
The current acting standards fund in the Kyrgyz Republic contains of more than 20 000 standards, 
19 000 of which are regional standards.  
The term "non-operational standards" in national standardization of the Kyrgyz Republic is not 
applied, they were not accounted. If the standard is  necessary, it is enforced. If this standard is 
unnecessary to the entrepreneur it is abolished and does not operate.  
The problem of applying international standards as na tional is the low interest  by the producers in 
financing the acquisition of their translati on and applying in producing their goods. 
According to the Article 30 of the Law, the recogniti on of the conformity assessment results of import 
to the Kyrgyz Republic is based on following principles:  
 - inadmissibility of creating unnecessary barriers in trade; 
 - setting facilitated, clear and accurate procedures and minimization of time and 
expenses of the applicant for their passing through; 
 - inadmissibility of introducing requirements and tests, as well as duplicating actions 
by the State and other authorized agencies. 
The conformity assessment documents, the conformity  marks, protocols of products test, obtained out 
of the territory of the Kyrgyz Republic are rec ognized in accordance with the international 
agreements of the Kyrgyz Republic. In case th ere are no such agreements, the recognition of 
conformity assessment results and conformity marks are hold in a ccordance with the procedures set 
by the Government of the Kyrgyz Republic.  WT/TPR/M/170/Add.1 
 Page 59 
 
 
(4)  MEASURES AFFECTING PRODUCTION AND TRADE  
(iv)  Competition policy and price controls WTO Secretariat's Report
, page 75, footnote 115 
What is the current state of the new draft Law on Competition? 
The draft Law "On competition", was worked out , and currently is under the completion by the 
National Agency on Competition Development, it was re ceived from the Prime-Minister’s Office after 
their consideration and inserting some remarks.  
(v)  Intellectual property rights WTO Secretariat's Report
, page 80, footnote 128 
We would be interested in further information on parallel trade from / to the Kyrgyz Republic. 
The Article 16 of the Law of the Kyrgyz Republic  "On Copyright and Related Rights" reads as 
follows: if copies of a work that is published legally , are introduced into a civil circulation by means 
of selling, the further distribution of these copies shall be admissible without an author’s consent and royalty payment. 
The Law of the Kyrgyz Republic "On Copyright and Related Rights", the Patent Law of the Kyrgyz 
Republic, as well as the Custom Code of the K yrgyz Republic do not touch upon subjects of parallel 
import of goods.   
IV.  TRADE POLICIES BY SECTOR (6)  Services Postal services 
How are the concepts of Universal  Service Obligation and the reserved area granted to the incumbent; 
has this been established in the country? 
Which license and authorization systems are a pplied to postal operators on the territory?  
Do quality service targets and a form of assessment/m easurement already exist? What kind of tariff 
regime is in place? 
Universal mail services – the essential mail services (wr itten correspondence) is covered by the Law 
of the Kyrgyz Republic "On Mail Services", revised by the Law N 110 (Ar ticle 9) dated from 
24 June, 2003. Also the mailing of written corresponde nce is regulated by the provisions of the 
Convention of the World Post Union, appro ved by the Decision of the Seoul Congress, 
September 14, 1994. 
The licensing system of mail service operators of the Kyrgyz Republic is set within the Law of the 
Kyrgyz Republic "On licensing" and in Provision on licensing separate kinds of business activity", 
approved by the Government Resolution, 31 May, 2001. 
In accordance with the "State register of entities of natural and permitted monopoly in the 
"Communication" sector of KR for 2006 subject to state regulation by the National Communication Agency (NCA) of the KR", approved by the NCA ord er N36, 12 April, 2006, the entity of natural and WT/TPR/M/170/Add.1 
Page 60  
 
permitted monopoly in the mail services market is the State enterprise "Kyrgyz pochtasy". This 
nomenclature also determines the lis t of main services of the monopolis tic enterprises, tariffs of which 
are subject to mandatory control and regulation by the State. 
Tariffs for mail services, rendered by  the SE "Kyrgyz pochtasy" and subject to State regulation, are 
included into the Price list N125-III "Tariffs for ma il services, rendered by the operators in the mail 
service market and subject to State regulation", ap proved by the order of State Agency under the 
Government of the Kyrgyz Republic on Communications, N61- пр, 09.06.2004, registered in the 
Ministry of Justice under N 63-04, 10.06.2004. 
Setting and regulating the tariffs for mail services, rendered on a commercial basis (not subject to 
State control and regulation), is carried by th e operators themselves provided firm following the 
antimonopoly legislation. 
EUROPEAN UNION
 (ADDITIONAL) 
IV.  TRADE POLICIES BY SECTOR (6)  Services Postal services 
How are the concepts of Universal  Service Obligation and the reserved area granted to the incumbent; 
has this been established in the country? 
Which license and authorization systems are a pplied to postal operators on the territory?  
Universal mail services – the essential mail services (wr itten correspondence) is covered by the Law 
of the Kyrgyz Republic "On Mail S ervices", revised by the Law N 110 (Article 9) dated from 24 June, 
2003. Also the mailing of written correspondence is regul ated by the provisions of the Convention of 
the World Post Union, approved by the Deci sion of the Seoul Congress, September 14, 1994. 
The licensing system of postal service operators of the Kyrgyz Republic is set within the Law of the 
Kyrgyz Republic "On licensing" and in Provision on licensing separate kinds of business activity", 
approved by the Government Resolution, 31 May, 2001. 
In order to obtain the license for activity of posta l operators  the applicant should apply for license to 
the National Communication Agency (NCA). Along with  the application following documents are also 
should be submitted: 
 1. Application for issuing license accord ing to the form and annexes N1 and N2 of the 
Licensing Provision; 
 2. Document, confirming the payment of  charges for application consideration and 
issuing license; 
 3. Copy of the certificate of state registration: 
  - within the bodies of the Ministry of Justice of the Kyrgyz Republic – for legal 
persons; 
  - within the state statistics bodies – for natural persons;   - in the respective state – for foreign legal and natural persons, which are not 
registered as legal persons or indivi dual entrepreneurship s in the Kyrgyz 
Republic;  WT/TPR/M/170/Add.1 
 Page 61 
 
 
 4. Copy of the document, confirming the appropriation to the applicant of the 
identification code  (number) of taxpayer or payer of insurances; 
 5. Technical proposals to the submitted project; The Technical proposals should cover following issues:  1) the name of the licensee, his first status , for consortiums or joint ventures – the name 
of the each participant or shareholder; 
 2) the name of the establishing network;  3) the territory, where the operation of the ne twork or services is planned, by stages of 
creation and/or development (with the relation to the administrative and territorial division of the Kyrgyz Republic); 
 4) description of the communication netwo rk or communication services, which are to 
be rendered; 
 5) the type of proposed services:   - qualificational indicators of servi ces to be rendered, guaranteed for 
consumers; 
  - the list, and the short description of  each service, their compliance with the 
national and international standards, other regulations; 
  - the order (the mian rules, terms)  of rendering services, it’s compliance with 
the national legislation and approved rules of rendering services, the responsibility of the applicant to consumers. 
 6) the category and the proposed quantity of  users, which are to be rendered services 
(any legal or natural persons or limited categories of users). 
 7) The tariff policy, including tariff le vels for each service, preferential tariffs, 
organisation of calculations with the consumers for all services rendered. 
 8) The intended principles of mutual pa yments with other communication operators, 
interacting with the consumers. 
 9) The development plan or network extension or the scope of services rendered. 
 10) Measures for realizing the labor security regulations and fire security.  
 11) Information on additional services and the ways of their implementation.  
 12) The summary of the activity.  13) Any other information, necessary accord ing to the applicant for the consideration of 
the application. 
 14) Documents, confirming the employee’s qua lification, directly related to the process of 
rendering communication services (diplomas, certificates, testimonies).  WT/TPR/M/170/Add.1 
Page 62  
 
Issuance of licenses is subject to payment. The rate of the payment for application consideration, 
holding necessary examination and documentation makes up three minimal wages. The payment is 
made to the National Communication Agency with  the further transfer to the State budget. 
Do quality service targets and a form of assessment/m easurement already exist? What kind of tariff 
regime is in place? 
A working plan on improving the quality was developed jointly with the Regional Community in the 
field of Communication (RCC) and  State Ent erprise "Kyrgyzpochtasy", which is aimed on 
implementation of world quality standards on se nding written correspondence (D+5) within the RCC: 
 - for 50% of the sent volume of the correspondence; 
 - for 65% of the sent volume of the correspondence; 
as well as provision of implementation of  service indicators on international sendings: 
 - control and monitoring the packages dispat ch at international and national levels; 
 - home delivery;  - receipt;  - confirmation of handing; 
 - payment of the compensation.  
Besides, the quality of the services is estimated by considering the ISO 9000 standard requirements. 
In accordance with the "State register of entities of natural and permitted monopoly in the 
"Communication" sector of KR for 2006 subject to state regulation by the National Communication Agency (NCA) of the KR", approved by the NCA ord er N36, 12 April, 2006, the entity of natural and 
permitted monopoly in the mail services market is the State enterprise "Kyrgyz pochtasy". This 
nomenclature also determines the lis t of main services of the monopolis tic enterprises, tariffs of which 
are subject to mandatory control and regulation by the State. 
Tariffs for mail services, rendered by  the SE "Kyrgyz pochtasy" and subject to State regulation, are 
included into the Price list N125-III "Tariffs for ma il services, rendered by the operators in the mail 
service market and subject to State regulation", ap proved by the order of State Agency under the 
Government of the Kyrgyz Republic on Communications, N61- пр, 09.06.2004, registered in the 
Ministry of Justice under N 63-04, 10.06.2004. 
Setting and regulating the tariffs for mail services, rendered on a commercial basis (not subject to 
State control and regulation), is carried by th e operators themselves provided firm following the 
antimonopoly legislation. 
CANADA
 
Report by the Secretariat  (WT/TPR/S/170) 
Section III. Trade Policy by Measure, (4) Measures Affecting Production and Trade, 
(V) Intellectual property rights, page 81 and page 82, paragraph 137  
1.  The Secretariat Report notes that despite  "new enforcement powers by Customs, and many 
regional agreements covering intellectual property, the incidence of imported pirated copyright and 
trade mark products in the Kyrgyz Republic still seems high" and that "questions also arise as to the 
competence of courts, and the judicial system ge nerally, to handle intellectual property cases". Canada 
appreciates the Kyrgyz Republic’s efforts on intellectual property.   WT/TPR/M/170/Add.1 
 Page 63 
 
 
Would the Kyrgyz Republic be able to provide information regarding measures which it may be 
considering to strengthen its institutional capac ity to enforce intellectual property rights?  
The new redaction of the Custom Code of the Kyrg yz Republic has been implemented since January 1, 
2005; the Issue IX of this Code is dedicated to  intellectual property rights protection by Customs 
bodies. 
The State Custom Inspection under the Government of the Kyrgyz Republic (SCI KR) in according 
with the plan of common events with the Tax Insp ection under the Government of the Kyrgyz Republic 
carry out actions of exposure and suppression of illega l import of counterfeit products and realization 
these products at internal Kyrgyz market. The SCI KR opens cases on administrative infringements of 
intellectual property rights revealed in the course of  conducted events and directs them to courts for 
examination. During 8 months of this year the Court made a decree of fine imposing to infringers of 
the law by 4 cases revealed by the SCI KR; rela tively products, which were the direct subject of 
infringements the Court made decisions on liq uidation (information, delivered by SCI KR). 
Taking into account that the SCI KR Director is also included to the new membership of the 
Interdepartmental Commission on counteraction to infr ingements in the field of intellectual property 
under the Government of the Kyrgyz Republic, it is presumed that the work of Custom bodies directed 
to perfection of mechanisms of intellectual prop erty rights providing will be reinforced in the 
framework of this Commission functioning. 
On Judges and whole Juridical System comp etence in issues of intellectual property  
In the Kyrgyz Republic all disputes regarding to infri ngements in the field of intellectual property are 
examined by courts of general competence and interregional courts (courts examining economic 
disputes).  
At present time the juridical practice of disputes exami nation in the field of intellectual property is not 
great.  
The absence of experience of acting legislation appl ication creates some difficulties not only for law 
machinery and custom bodies, but also for judges.  In this connection Kyrgyzpatent carries out 
seminars and round tables on issues of intellectual property rights protection especially for judges 
and officials of law machinery and custom bodies.  
In accordance with the Resolution of the Kyrgyz Republic Government of February 23, 2003 N 93 the 
Interdepartmental Commission on counteraction to infr ingements in the field of intellectual property 
under the Government of the Kyrgyz Republic was established (hereinafter referred to as – 
Commission). This Commission membership incl udes the law machinery representatives: deputy 
ministers, heads and deputy heads of all interested of fices of the country. In 2004 two meetings of the 
Commission took place (on April 20 and October 27)  under the chairmanship of Vice Prime Minister 
of the Kyrgyz Republic. Two work groups were or ganized under the Commission: (1) audio-, video 
production and software; (2) medical products and foodstuff. 
With the purpose of effectiveness rising of the Commission’s work and recognizing the importance of 
problem connected with illegal usage of intellect ual property subject matters and counterfeit products 
distribution, the Government of the Kyrgyz Republic  approved the Resolution of September 27, 2006 
"On inserting of amendments into some Deci sions of the Kyrgyz Republic Government". In 
accordance with this Resolution the new membersh ip of the Commission is approved; it consists of 
representatives of ministries and offices at minister level. The Chairman of the Commission is Prime 
Minister of the Kyrgyz Republic and the Deputy Chairman is Kyrgyzpatent Director.   
Kyrgyzpatent fulfills functions of the Commission Secretariat. WT/TPR/M/170/Add.1 
Page 64  
 
At present time the Commission Secretar iat implements the preparation of meeting that is planning to 
be held in November 2006.  
Section IV. Trade Policies by Sector, (3) Mining, page 91, paragraphs 27- 33  
2.  Canada appreciates the description of Kyrgyzstan’s mining sector in the Secretariat's Report.  
Given the current significance of the mining sector to GDP and the fact that the mining sector is a 
government priority, would the government of the Kyrgyz Republic provide more detailed 
information regarding the policy approach it h as in place to promote future exploration and 
development? 
a)  Does the Kyrgyz Republic have in place a tran sparent, non-discriminatory, and predictable process 
for determining under what  conditions a licence can be granted or revoked? 
3.  Canada notes that the Industry Ministry is r esponsible for implementing a uniform national policy 
on industry development, including mining and metallurgy.  
Could the Kyrgyz Republic provide more informati on on the contents of this policy and advise as to 
whether any changes are planned? 
4.  Canada notes that Kyrgyz Republic adopted the Extractive Industries Transparency Initiative 
(EITI) in May 2004.  
Could the Kyrgyz Republic please provide an update  regarding implementation of EITI, including any 
developments toward an action plan? 
In order to further develop the mining industry, one  needs to attract significant investments, firstly, 
foreign ones. A potentially positive achievement of this objective, in a prospect, is evidenced by the 
ever-growing investment attractiveness of Kyrgyz mines and deposits as noted in the recent years. 
This has been reached thanks to the ever-improv ing informational and promotional campaigns, 
unrestricted provision of information about the subs urface, promptness of provision of free-of-charge 
consultations and data to users of subsurface re sources regarding the geology and natural resources, 
specific results of explorations of sites and pros pective deposits leading to identification of new 
objects of various kinds of extractable minerals . In the past three years alone, the volume of 
investments in the mining complex grew from 6, 0 million USD to 51,0 million USD. Foreign investors 
are particularly attracted to Kyrgyz objects of gold ore mineralization industry, tin and tungsten mines, potential oil-, gas- and urani um-rich deposits and areas. Local enterprises are mainly engaged 
in research and development of deposits, natural construction materials, charcoal and mineral 
waters.  
The attraction of investments into the mining industr y should be facilitated by the improvement of the 
legislative framework for subsur face resources use (new revision of  the Law of KR "On Subsurface 
Resources" is being prepared) and the simplificat ion of the procedures of receiving deposits and 
mines for development purposes and the improvement of the Tax Code.  
a)  The procedures of issuance of licenses to u se the subsurface resources for geological studies are 
simple and clear as characterized by the fact that  the number of licenses issued annually is growing 
including licenses issued to forei gn and joint companies. The licen se is valid for two years with 
automatic renewal for the project period of ten yea rs if all the provisions of the license agreement are 
complied with. This provision is  a safeguard against companies that fail to fulfill obligations they 
assume when receiving the license. The guarantee of receiving the license to develop a mine or 
deposit is present in the Law of KR "On Subsurfa ce Resources", if the licensee actually conducted 
search and exploration, and is not set during the direct negotiations. The issues of issuance or  WT/TPR/M/170/Add.1 
 Page 65 
 
 
cancellation of licenses are discussed collegiately by the special license commission of the authorized 
state body on subsurface resources use. 
3.  The Ministry of Industry, Trade and Touris m of Kyrgyz Republic develops and implements the 
unified state industrial policy and improves the methods and forms of implementation thereof to 
ensure sustainable development of the industry: 
 - analyzes the status of the industry and prepares suggestions on improving the 
effectiveness of the conduct of struct ural changes in the industrial sector; 
 - develops, in collaboration with commerc ial entities, and suggestions propositions on 
amendments to be made to the fi scal and customs and tariff policies; 
 - develops and implements measures to develop and rationally use the industrial 
potential of Kyrgyz Republic; 
 - forms and implements mechanisms of state support of industrial, science and 
technical and innovative activities of comme rcial entities in the economy of Kyrgyz 
Republic; 
 - participates, in collaboration with other interested ministries and agencies, in the 
development of state policy on issues of insolvency and remedying of enterprises; 
 - works to complete the procedures of bankruptcies as part of the PESAC Program, 
etc. 
4.  In order to successfully impl ement the principles of the Extracting Industry Transparency Initiative 
(EITI), eradicate corruption, ensure openness of information about the financial flows and 
accountability of state bodies before the civic so ciety, the Resolution of Government of Kyrgyz 
Republic as of 4 August 2006 № 435-r approves the Plan of Activities on Further Promotion of EITI 
for 2006-2007, that provides for ensuring transparen cy of operations of mining sector enterprises and 
fiscal bodies.  
Part IV. Trade Policies by Sector, (6) Services (Other than Energy), (v) Tourism, paragraph 101 
and 102 
5.  According to the Report, fore ign investment in tourism is unrestricted and foreigners can freely 
provide tourism services. Footnote 122 further note d a piece of legislation, which originally intended 
to limit foreign investment in tourist facilities to  49 percent, was not passed. Paragraph 102 indicates, 
however, that foreigners cannot own tourist facilities in the Lake Issyk-Kul region.  
Please clarify whether full foreign participation is a llowed or if there are geographical limitations in 
place. 
6.  The Report states that "the Ministry of Industr y, Trade and Tourism, responsible for tourism policy 
and implementation, cancelled in 2001, licensing of tourist faciliti es."  Could you please explain why 
the licensing of tourist facilities was cancelled?  
7.  According to the Report, the only regulat ory functions currently performed by the above 
mentioned Ministry are coordination and monitoring. Would you please elaborate on the specific 
functions that are covered in the coordina tion and monitoring of tourist services?  
8.  The Report also indicates that  the government seeks to double tour ist numbers within three years.  
Could the Kyrgyz Republic please elaborate on what policy changes or initiatives are being 
contemplated to help reach this government objective?  WT/TPR/M/170/Add.1 
Page 66  
 
5)  According to the Article 10 of the Law "On investments in the Kyrgyz Republic" - Economic 
independency of foreign investors and recognizing the investors’ rights 
Paragraph 7. "The investor may participate at the privatization of state owned and municipal objects 
through obtaining property rights for state-owned a nd municipal object or its share, stocks in the 
charter capital of the privatized enterprise on a terms and rules set by the Kyrgyz Republic 
legislation", 
Paragraph 9. "Kyrgyz Republic an d its officials recognize all the rights of investors for intellectual 
property, as well as rights, related to the foreign investments". 
Paragraph 10. "While transferring the property right for construction and building, the right for use 
of land also transfers in comp liance with the rules and terms indicated in the legislation". 
Paragraph 11. "The land tenant right can be obtai ned by the investor according to the rules and 
terms indicated in the legislation of the Kyrgyz Republic". 
According to the Article 5 of Land Code of the Kyrg yz Republic  - The right of the foreign citizens for 
land 
2.  Foreign citizens, and foreign legal person are entitled to obtain a land within the built-up area 
(cities, villages, rural settlements) for use at a fixed period (temporary) of 49 years or obtain as a 
property the tourist object while constructing it according to the Kyrgyz Republic legislation 
requirements.  
3.  Foreign citizens can obtain a land out of built- up area, except agricultural lands, for use at a fixed 
period (temporary) of 49 years, which is given by  the Government of the Kyrgyz Republic. In other 
cases the lands out of built-up area for foreign citi zens are given, handed over, pass into the hands on 
a terms of universal succession for a fixed up (temporary) period. 
6)  According to the Decree of the President of the Kyrgyz Republic "On measures for improving the 
state policy in the field of investment and other business activity regulation", dated from 
25 April 2002, #100, with a view of realiz ation of objectives on developing and supporting 
entrepreneurship, determined by  the Comprehensive Development Program of the Kyrgyz Republic 
till 2010, forming favorable business climate and developing the process of attracting foreign 
investments to the Kyrgyz Republic, elimination of un justified  intervention of state agencies into the 
activity of the business entities, elimination of admin istrative barriers and restrictions in the field of 
investment and other business activity, introducing new methods of regulating market relations within 
the Kyrgyz Republic, it has decided: 
 - to consider the obtaining licenses, perm issions, certificates, conclusions, passing 
through the procedures of mandatory certifica tion, accreditations, tests, agreements, 
as well as payments for this documents , holding control and survey activities as an 
administrative barriers and restrictions in th e field of investment and other business 
activity. 
7)  According to the statute of the Ministry of Industry, Trade and Tourism of the Kyrgyz Republic 
approved by the Resolution of the Government of the Kyrgyz Republic, dated from January 23, 2006, 
#36, it fulfills following functions in the field of tourism: 
 - Carrying out complex analysis and forecasting of tourism development; 
 - Developing and  implementation of economic  strategy of tourism development and 
converting it to the highly remunerative field of economy;  WT/TPR/M/170/Add.1 
 Page 67 
 
 
 - Putting forward proposals on creating favo rable investment climate, for attracting 
investments into the tourism sector; 
 - Jointly with the concerned agencies and other organizations develops draft of 
statutory and legal acts in the touris t services field and send for approval of the 
Government of the Kyrgyz Republic in a ccordance with established procedure; 
 - Developing and approving recommendations  on ensuring and improving the quality 
of rendered services in tourist & excursi on and resort & recreation complexes, 
monitoring the tourism infrastructure development; 
 - Developing and implementation jointly with  the concerned agencies, package of 
measures on guidance ensuring, training and raising the skills of personnel in the 
tourism field; 
 - Conducting the state list of entities engaged in tourism activity;  - Developing and approving by the Govern ment of the Kyrgyz Republic proposals on 
training, raising skills and internsh ip of personnel for tourism field; 
 - Participating in organizing and holding international tourism exchange and fairs, 
scientific conferences, workshops , symposiums and other activities, related to the 
promotion and development of the tourism; 
 - Taking activities on introducing the scientific and technological achievements, 
foreign and national experience in the tourism field; 
 - Taking activities on selection and allocation of personnel, ensuring their 
development, training and promotion, in accordance with the Kyrgyz Republic 
legislation; 
 - Ensuring software, information, finan ces for fulfilling functions, legal expertise and 
accompaniment, presentation at the Courts,  and servicing territorial agencies of the 
Ministry; 
 - Rendering financial and informational suppor t to public tourist associations while 
organizing tourist activities, conducive increa se of tourists’ inflow and forming the 
positive image of the Republic as a country of tourism. 
8)  Nowadays, the tourist potential of the Kyrgyz Republic is not fully applied, and the annual income 
from international tourism makes up only about 70-75  mln. USD. While, having suitable conditions, 
Kyrgyz Republic by the most conservative es timate may annually receive 400-500 mln. USD, 
receiving about 2 mln. foreign tourists. The availabl e tourist resources in th e Kyrgyz Republic allow 
receiving and serving several millions of int ernational and national tourists annually. 
In the forthcoming "Tourist season -2007" the objecti ve of the Kyrgyz Republic is to concentrate the 
efforts on fulfilling following measures: 
 1. Imperfection of legislation base – t ourism industry, is a diversified complex, 
functioning of which is regulated by the various sectors of the law: international, 
transport, customs, land, tax, licensed, en vironment, protection of consumer’s right, 
etc., it is necessary to adopt jointly with  the profile Law of the Kyrgyz Republic "On 
tourism" number of other Laws and by-laws, aimed on creation of favorable terms for development of domestic and int ernational tourism, the ent repreneurship in this field, 
etc. 
 2. Change of the tax legislation in the field of tax remissions in the tourism sector, 
including the exemption of tourist services from VAT, considering the tourism as an 
export and external economic type of activity. 
 3. Attracting investments for completion of  the "Issyk-Kul" airport (Tamchy village) 
reconstruction, which are air gates of the Issyk-Kul Lake. WT/TPR/M/170/Add.1 
Page 68  
 
 4. Introducing agreements (contracts) by th e fiscal agencies on serving tourists (tourist 
tickets) or vouchers, on a principle of "VAT in voices", strict accountings issued by the 
tax services, that can assist in solving th e problem of authenticity of tourism services 
(tourist tickets) registration and obtaining obj ective account of financial flows, in the 
tourism sector.  
 5. Introduction of visa free regime for a t ourism period from May to October for the 
tourists coming from foreign countries, based on the example of the Ukraine and 
Georgia, which cancelled visa regime for EU citizens, and increasing several times 
the number of tourists from these countries. 
 6. Working out the General Plan for Tourism Development in the main tourist & 
recreation zones of the Kyrgyz Republic, 2009- 2020, with a package of measures on 
ensuring environmental safety. 
 7. Creation of economic and political conditions for air carriers, stimulating the 
decrease of group air tariffs.  
 8. Creation of tourist-information centers  network in Russia, Kazakhstan and Europe, 
and continuation of taking active participation at the tourist fairs in these regions for 
attracting tourists both in summer and autumn-winter period.  
 9. Improving the quality of tourists  servicing by introducing State system of 
classification of resort & recreation organizations, hotels and guest houses and fulfilling the system of continuous raise of skills of tourism personnel.  
Upon the realization of the mentioned activities Kyrg yz Republic has the opportunity to provide an 
annual income from tourism sector about 400- 500 mln. USD and receive approximately 2 mln. 
tourists during the whole year.  
Report by the Government of the Kyrgyz Republic
 (WT/TPR/G/170) 
Part IV. Trade and Trade-related Policies, (6) Tourism, page 45, parag raph 324 
9.  According to the Report, the Presidential d ecree on Creation of Favorable Conditions for Tourist 
Period in 2005 and Actions to Further Development of Tourism in the Kyrgyz Republic of 
August 2005 (No. 307) recognizes tourism as a priority  sector with sufficient export opportunities and 
capacity for budget allocations.  
Would you please explain what favorable conditions a nd actions have been or are being considered to 
help realize these export opportunities? 
9)  Currently a proposals on making amendments into the legislation base  concerning the tourism is 
being worked out by the Ministry: 
1.  Adjustment of corresponding amendments into the tax legislation of the Kyrgyz Republic (Tax 
Code), which can significantly influence positively th e reduction of the prime cost of the tourist 
services, on each stage of their production, through creating a facilitated schedule of taxation of hotel 
& tourist entities: 
 - introducing the system of common patenti ng or applying temporary tax mechanism;  
 - exemption from the customs duties a nd charging VAT to co mpanies, which are 
engaged in producing tourist services and im porting equipment, inventory and goods, 
intended for production of tourist service.    WT/TPR/M/170/Add.1 
 Page 69 
 
 
 - abolishment of taxes for the means, whic h were re invested for the development of 
material and technical base of tourism obj ects, as well as means, expended by the 
tourist organizations for training pers onnel, issuing advertisements and printed 
output and participation at the tourist fairs and exchanges. 
2.  Introducing the institute of migration card s, for working out regular analysis and market letters, 
which will be used as a base for planning the developm ent of most prospective sectors of tourism, and 
new basic marketing promotion activities could be settled. 
3.  Making corresponding amendments into the Law of the Kyrgyz Republic "On investments": 
 - entitling tax exemptions for investors, depositing more than 1 mln USD into the 
building and reconstruction of collective alloca tion places of tourists (hotels, tourist 
bases, campsite) 
 - working out a mechanism, securing the investors on incontestability of their property 
rights, especially for land and real estate. 
Part IV. Trade and Trade-related Policies, (6) Tourism, page 45, paragraph 326: 
10.  The Report makes reference to national policy and market reforms that have facilitated the 
development of the market for tourist services. What  specific market reforms have been of significant 
help in this regard? 
In general, the adoption of the necessary regul ations was the main base for facilitation and 
development of the tourism market. Particularly , enforcing the Law of the Kyrgyz Republic "On 
investments", 27 March 2003, 66 and several other d ecrees and resolutions of the Government play 
significant role in forming the market oriented  base for developing the tourism sector.    
CANADA  (ADDITIONAL) 
1.  KR notes that a new version of the Law of KR "On Subsurface resources" is being prepared. Is KR 
able to give us a sense of the scope of the revisions  planned? What is the current timetable for the new 
version to be implemented?  
The proposed changes to the acti ng Law on Subsurface resources: 
 - regulations concerning the mining property rights are introduced; 
 - relations between the subsurface re sources users and owners of the lands for 
subsurface resources using are being detalized;  
 - the process of passing the rights for subs urface resources use to third parties is being 
regulated; 
 - the more clear edition of the law taki ng into account the positive and negative 
experience of licensing the rights for using subsurface resources. 
2.  KR also notes it intends to simplify the procedures for receiving deposits and mines for 
development purposes. Is KR able to share with  us how the procedures are to be simplified? 
For small mineral resources the regis tration process of applications by principle of first application 
will be introduced. 
3.  KR notes that it intends to improve the Tax Code . This is positive news. Again, can KR provide us 
with an indication as to how the Code will be  changed and when theses changes are to be 
implemented?  WT/TPR/M/170/Add.1 
Page 70  
 
While working out the new version of the Tax Code the positive international experience gained from 
the tax reforms hold both in CIS and other foreign countries was considered. At the same time the obligations of the Kyrgyz Republic under inter national financial organizations were taken into 
account.  
The draft of the new version consists of some  regulations aimed on supporting taxpayers, on 
decreasing their tax burden, for instance: 
 - the conscientious taxpayers are subject to more facilitated taxation, at the same time 
the unfair taxpayers are subject to more st rict tax and administrative regulations; 
 - all contradictions within the Law will be interpreted in favour of taxpayers; 
 - with respect to conscientious taxpayers the "principle of conscientiousness of 
taxpayers" is applied, which means that the entity is considered to be acting honestly, 
unless this fact is refuted by documenta lly proofed materials of state bodies in 
accordance with the regulations determin ed by the legislation on taxation and tax 
collection; 
 - the delays and instalments of tax payment are also regulated in more details, in 
accordance to which and depending on th e financial situation of the taxpayer and 
circumstances, reasoned the impossibility of pay ing the taxes in time, the interests are 
not imposed or imposed in less amounts, rather than to the taxpayers who have unjustified reasons for deviation from tax paying; 
 - with regard to activity of the users of s ubsurface resources it is offered to ascribe to 
deduction of all capital expenditures thr ough capital allowances with annual amount 
50%; 
 - The tax rates for non-resident’s incomes we re reduced to 15%, which are established 
as 30% according to the acting Tax Code;  
 - New account, aimed on determination of inco mes subject to taxation, is close to the 
book-keeping to the maximum; 
 - The main amortized means were schedul ed in detail, the process of accounting 
amortization, receipt and retirement of ma in means with the aim of taxation; 
 - The periodicity of holding documenta l controls was increased up to 3 years; 
 - The project of new redaction envisages incl uding into the list of expenses, subject to 
deduction, the maximum amount of expenses, related with receiving of the income. Thus, it was offered to allow the represen tative expenses, expenses for preparing and 
retraining of the staff to be ascribed to the deductions; 
 - For natural persons, it is also allowed to include into the deductions the expenses 
deriving from training not only themselves, but also their children; 
 - The new regulations conducting rights and obligations of both taxpayers and tax 
officers and aimed on ensuring protection of the taxpayers rights were introduced. 
Moreover, the project envisages regulations, which are aimed on reducing the risk of creating 
corruptional relations between the housing entities and tax officers.  
The new project of the Tax Code of the Kyryz Republic was included 3 main Chapters regulating tax 
relations in the subsurface resources using field: 
 - taxes for using the subsurface resources; 
 - taxation of the mountain concessions; 
 - taxation while fulfilling the agreements on dividing the production while using the 
subsurface resources. 
For development of the mountain business in the Kyrgyz Republic following regulations are foreseen: 
  intensified amortization of main means  with the norm of amortization 50%;  WT/TPR/M/170/Add.1 
 Page 71 
 
 
  margin for exhaustion of the subsurface res ources at amount of 15% of taxed income; 
  stabilization of the tax regime for the period of the license acting and rights for using 
the subsurface resources; 
The taxation base on royalty is established based on the cost of the mining of the mineral wealth or 
first vendible product, obtained from the mineral raw material.  
4.  KR states that the issuance or cancellation of  a license is "discussed co llegially by the special 
license commission of the authorized state body on subsurface resources use". Does the license 
commission operate with a standardized set of criteri a which are made available in a timely manner to 
applicants and to persons for whom cancellation of a license is under consideration? How does KR 
ensure that license applicants and recipients ar e treated in a non-discriminatory and consistent 
manner? Is there an appeals mechanisms from decisions of the license commission? 
During issuing and abolishing the license for using th e subsurface resources the license Commission 
of the State Geological Agency acts in accordance with the standards of the assessment criteria, 
established by Articles 16 and 18 of the Law of the Kyrgyz Republic "On subsurface resources".  
In accordance with the legislation on subsurface resources and Civil Code of the Kyrgyz Republic, all 
disputes on issuing and abolishing licenses for us ing subsurface resources are settled judicially, 
unless the parties do not achieve agreement. 
TURKEY  
II.  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (1)  I
NTRODUCTION  
(4)  T RADE AGREEMENTS AND ARRANGEMENTS  
WT/TPR/S/170 , Para 3, 28 
The Secretariat report notes that the Kyrgyz Republ ic’s membership to multiple preferential trade 
agreements with varying  levels of progress, diffe rent rules and coverage etc. creates uncertainty to 
trade regime. 
Could Delegation of Kyrgyz Republic  explain how it considers to deal  with  possible  
implications  that might arise from differing commitments under various preferential trade 
agreements? 
The Kyrgyz Republic participates in the regional tr ade agreements with CIS countries on free trade 
and creation of customs union. Free trade agreements are the first stage of integration and customs union agreements are the second one, which is more  progressive pattern of cooperation (on the base 
of current free trade agreements). None of the agreem ents contradicts to each other. The Kyrgyz 
Republic has not differ  
II.  TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (5)  F
OREIGN INVESTMENT REGIME  
WT/TPR/S/170 , Para 57- 61 
It is understood that, improving investment climate is a key priority and in this regard steps taken by 
the Kyrgyz Republic to attract forei gn direct investment is appreciated. WT/TPR/M/170/Add.1 
Page 72  
 
However, as the Secretariat repor t mentions there still  exist hampering barriers to attain fully 
favorable business climate in the country such as  we ak legal  institutions, corruption,  excessive red 
tape, administrative barriers etc. 
Among all these barriers that run counter  investment  friendly environment we have noted that a 
requirement for foreign investors since 2002 to pay the equivalent of the foreign worker’s full salary 
into the Social Fund, while domestic investors contribute only 28% according to the Secretariat 
report.  
We would appreciate the Kyrgyz Republic’s expl anation  to clarify the need for such a 
discriminatory treatment for foreign investors. 
Paragraph 57 
Currently a Free Economic Zone "Bishkek" is opera ting on the territory of the Kyrgyz Republic, since 
other FEZs were abolished due to ineffective work. 
Attraction of the foreign direct investments (FDI) is the issue of high priority for the Kyrgyz Republic. 
It has liberalized its investment regime and carried out reforms within the entrepreneurship activity 
field. Providing a favorable investment climat e is the main objecti ve of the Comprehensive 
Development Program, aimed on increasing the volume of investments, including FDI from 9,2% of 
GDP in 2000 up to 16,8% of GDP in 2010, as we ll as increase the growth and export diversification. 
The structure of FDI inflow in 2005 is as follows: the portion of the share capital made up 16% of 
total volume of FDI inflow or 33 mln. USD, reinv ested profit made up 15% or 30,7 mln USD, credits 
received from the foreign joint owners of the en terprises made up 31% or 65,83 mln. USD 
respectively and trade credits made up 38% or 80,8 ml n. USD. As a result, the volume of FDI inflows 
in 2005 made 210,3 mln. USD, that makes 8,6% of GDP. The growth rate against the previous year 
made up 119,8%.  
The inflow of FDI (without taking into consideration the flow-out) for 6 months of the 2006 made up 
139,2 mln. USD, which is 1,9 times more than in first half-year of 2005. At the same time, the volume of other capital increased 2,2 times and made up 98,6  mln. USD. The increase of volume of other 
capital was due to increase of trade credits – 3,1 times, credits received from the foreign joint owners 
of the enterprises – 1,4 times. The volume of s hare capital increased 2 times and made up 16,6 mln. 
USD, reinvested profit respectively for 12% and made up 24 mln. USD. 
Most significant kind of economic activity for inve sting is still processing industry, the weight of 
which in 6 months of 2006 increased for 1,2% agai nst the same period in 2005, and made up 45% of 
total Direct Investments volume. Investment flows considerably increased into the mining sector – 
4,7 times, making up 27,2 mln. USD, construc tion, respectively – 2,5 times and 2,8 mln. USD, 
processing industry – 1,9 times and 62,6 mln. USD, trade, repair of automobile, utilities and goods of 
private use – 1,5 times or 18,8 mln. USD, financial activity – for 37,4% or 20,8 mln. USD, hotels & restaurants sector – for 12% or 1,4 mln. USD. Th e volume of investment inflows from non CIS 
countries was increased 1,8 times in comparison w ith the first half year of 2005, and made up 
99,3 mln. USD. Main investor countries are Germany – 23,6% of the total FDI inflow, or 32,9 mln. 
USD, Great Britain – 21,7% or 30,2 mln. USD respectively, Canada – 14,4% or 20 mln. USD, Turkey – 3,3% or 4,5 mln. USD. The investment inflows  from the Germany and Great Britain increased 5,8 
and 3,9 times respectively in comparison with the first  half-year in 2005. The volume of investment 
inflows from CIS countries made up 39,9 mln. US D and in comparison with the same period of the 
previous year increased 2 times. Th e main share of investment w ere made by the investors from 
Kazakhstan – 35,3 mln. USD (25,4% of total investment inflows) and Russia – 4,2 mln. USD (3%). 
The inflows from Kazakhstan, Belarus and Uzbekist an increased 2,5, 1,7 and 3,2 times respectively. 
In the total volume of the FDI the biggest sha re of investments remains in Bishkek – 36,7% or 
51,1 mln. USD, Chuy oblast – 29,5 % or 41,1 mln. USD respectively, Talas oblast – 17,2% or 24 mln. 
USD, Issyk-Kul oblast – 14,2% or 19,8 mln. USD.  WT/TPR/M/170/Add.1 
 Page 73 
 
 
Paragraph 58. 
For the recent years a special emphasis was made on creating the favorable investment climate. Law 
on Investments, President’s Decree "On State poli cy in forming favorable investment climate", 
October 7, 2004, Government Resolution "On implemen tation of the State policy in forming favorable 
investment climate", November 24, 2004, and other le gislation were adopted. The Law of the Kyrgyz 
Republic "On Foreign Investments", #66, dated from  March 27, 2003 (revised on 14 June, 2004 (#76) 
and on 31 July, 2006 (#144)) covers grants equal investment rights for foreign and domestic investors 
regardless of citizenship, nationality, language, sex, race, religion, the place of their economic 
activity, as well as country of origin of the invest or and investments. Investor is entitled freely take out 
or repatriate in freely convertible currency the re imbursement, as well as incomes, received due to 
investing into the Kyrgyz Republic, as well as in vestment profit; investments are not subject to 
expropriation; investors are entitled to open a ccounts of national and foreign currency on the 
territory of the Kyrgyz Republic, freely convert the national currency of the Kyrgyz Republic to 
another currency and so on. This Law regulates the investment policy with regard to domestic and 
foreign investments and provides fair legal regime and protection for investors.  
Paragraph 59. 
In accordance with the Article 8 of the Law "On licensing", 3 March, 1997, #12, "Foreign legal or natural persons, as well as stateless persons obtai n licenses on a same conditions and order, as the 
legal and natural persons of the Kyrgyz Republic obtain, unless other determined by the legislation 
acts. Licenses obtained in other states, are rec ognized on the territory of the Kyrgyz Republic if 
respective intergovernmental agreements are concluded".  
Besides, it is necessary to point out that, in acco rdance with the paragraph 1, Article 6 of the Law 
"On enforcing the Land Code of the Kyrgyz Republic",  the land property right is exclusively pertain 
to Kyrgyz citizens.  
Paragraph 61. 
In accordance with the instruction on procedures of payers registration, payments and registering of 
insurance payments according to the mandatory state social insurance approved by the Resolution of 
Board of Directors of Social Fund, 17 March, 2006, #35, the tariff rates of insurance payments for 
legal persons irrespective of organizational & legal  forms and property forms, their solitary branches 
(affiliations and representatives) and their staff, in cluding foreign citizens and stateless persons, 
permanently living in Kyrgyz Republic, as well as fo r legal persons, using a waged labor, are set as 
295, including:  
 a) employer – monthly from all kinds of payments, accounted in favor of hired 
employees, including foreign citizens and stat eless persons permanently living in the 
Kyrgyz Republic – at the rate 21%; 
 b) for hired employees, including foreign citizens and stateless persons permanently 
living in the Kyrgyz Republic – monthly fr om all kinds of payments, accounted in 
favor of employees, regardless of financing s ource into the Pension Fund at the rate 
8%.  
III.  TRADE POLICIES AND PRACTICES BY MEASURE (2)  M
EASURES DIRECTLY AFFECTING IMPORTS  
WT/TPR/S/170 , Para 24 
It is noted at the Secretariat Report that applied tariff  rates  exceeded   bound levels  on at least 
33 items in 2006. WT/TPR/M/170/Add.1 
Page 74  
 
Could Delegation of Kyrgyz Republic inform  us on this inconsistency with her WTO 
commitments?  
Kyrgyz Republic had no reasons for exceeding the bound levels. Technical errors were made on these 
above mentioned 33 items while forming the Custom s tariff, and these errors are currently being 
eliminated.  
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  M
EASURES DIRECTLY AFFECTING IMPORTS  
WT/TPR/S/170 , Para 34 
Secretariat report notes that all foreign road haulers transporting goods to or from the Kyrgyz 
Republic  must obtain a special permit  from the Ministry of Transport  and Communications in 
accordance with intergovernmen tal  agreements on international road  communication. 
According to the report foreign haulers who do not have special permits are charged a US$ 250  fee, 
unless otherwise stipulated by an intergovernmental agreements. 
Which criteria is applied  to set the level of the above mentioned fee?    
We understand from footnote 30 that the le vel of the fee may differ among countries. 
Could Kyrgyz Republic further inform us on the  application criteria of this fee? In accordance with the Government Resolution of  the Kyrgyz Republic, December 20, 1999 N711: 
 1. Payment for  transportation of freight without special permission by the foreign 
haulers (except Iranian) from the territory of  the Kyrgyz Republic to the territory of 
the third country  or from the territory of the third country to the territory of the 
Kyrgyz Republic is at rate 250 USD, unless  other agreed by intergovernmental treaty. 
(Revised by the Resolution N100, February 25, 2004) 
 2. Payment for transportation of freight w ithout special permission by Iranian haulers 
from the territory of the Kyrgyz Republic to  the territory of the third country or from 
the territory of the third country to the terr itory of the Kyrgyz Republic is equal to 
1000 USD. (Revised by the Government Resolution N100, 25 February, 2004) 
 3. The collection of payment from the fo reign haulers for transportation of the freight 
without special permission into/from the third country is fulfilled by the State Customs Inspection under the Ministry of Finance and Economy while passing the customs registration of goods and the receive d payment is received by the State 
budget.   
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(2)  MEASURES DIRECTLY AFFECTING IMPORTS  
WT/TPR/S/170, Para  64- 69 
In light of the Secretariat’s report, we have been  informed that the Kyrgyz Republic has not notified 
any state trading enterprises.  WT/TPR/M/170/Add.1 
 Page 75 
 
 
Does the government plan to make necessary noti fications on state-owned entities operating in 
various fields of the economy such as Kyrgyz Temir, Kyrgyztamekisi and Kyrgyzgaz?  
Yes, the Government plans to make nece ssary notifications on state-owned entities. 
III.  TRADE POLICIES AND PRACTICES BY MEASURE (3)  M
EASURES DIRECTLY AFFECTING EXPORTS  
WT/TPR/S/170 , Para 101 
What kind of measures has been planned wi thin  2006-08 export promotion program  to 
improve export quality? 
With a view of promoting the competitiveness of  the Kyrgyz goods, the measures on further reducing 
administrative barriers will be taken; for developing  and forming technical legislation, including 
technical regulations. In accordance with interna tional standards, directives, regulations as well as 
technical regulations adopted as nationa l, worked out within the EAEC and CIS.  
III.  TRADE POLICIES AND PRACTICES BY MEASURE (4)  M
EASURES DIRECTLY AFFECTING PRODUCTION AND TRADE  
WT/TPR/S/170 , Para 103, Footnote 96 
Although some steps have been taken, it is noted that corruption is widespread within the country. 
Have any measures been implemented so far upon the ratification of the UN Convention 
Against Corruption? 
Measures on corruption elimination are taken by  the State. A numerous legal regulations were 
adopted: Criminal Code (Article 303), Law "On struggling corruption"; UN Convention against 
Corruption, signed 10 December, 2003 in Merida (Mexico) (ratified by the Law N128, 6 August, 
2005); Acting President Decree N251, 21 June, 2005, "On State Strategy on struggling against 
corruption in the Kyrgyz Republic"; President s Decree N476, 21 October 2005, "On immediate 
measures in struggling against corruption", Law of  the Kyrgyz Republic "On civil service"; Law "On 
declaring and publishing information on incomes,  obligations and property of persons, holding 
political and other special state positions, as well as their relatives", N108, 7 August, 2004; President 
Decree "On ethics of the civil servant". 
A National Agency of the Kyrgyz Republic on pr eventing corruption was established. A National 
Strategy on struggling against the corruption is fulfilled by eliminating the reasons, creating the 
corruption, adequate law enforcement measures, as well as by creating within the public a intolerant 
treatment to corruption due to coordination of va rious ministry’s, civil society’s and international 
agency’s efforts and means. 
As a result of taken measures the level of corrup tion within the Republic sufficiently decreased, and 
the opportunity of increasing the wages for some  categories of most vulnerable servants funded by 
the State budget appeared. Thus, in 2005 the w ages were increased for the employees of the law 
enforcement bodies (50%), education and he alth field (15%), culture (30%).  WT/TPR/M/170/Add.1 
Page 76  
 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
(3)  M
EASURES DIRECTLY AFFECTING EXPORTS  
WT/TPR/S/170 , Para 112 
According to the Secretariat Report, the Na tional Agency for Anti-monopoly and Competition 
Improvement which is responsible for administeri ng competition legislation’s autonomy is uncertain. 
Are there any plans to ensure the autonomy of this Government Agency which is the sole   
authority to prevent unfair competition?  
Regarding the issue of ensuring of independen ce of the National Agency of Kyrgyz Republic for 
Anti-monopoly Policies and Competition Development:  
With regards to ensuring of independence of the National Agency, there are plans intentions that are 
reflected in the draft Laws of  Kyrgyz Republic "On Competition" and "On Amendments to Certain 
Legislative Acts of Kyrgyz Republic" currently under development:  
 - the draft Law of Kyrgyz Republic "On Co mpetition" providing for (paragraph 2 of 
Article 3) the following: «The anti- monopoly body carries out its activities 
independently from other state bodies and is guided by the principles of fair 
competition only» has been recently sent back to the National Agency for further 
development with consideration to be given to comments made by the Office of Prime 
of Minister of Kyrgyz Republic;  
 - in the draft Law of Kyrgyz Republic "On Amendments to Certain Legislative Acts of 
Kyrgyz Republic", including the draft La w "On Natural and Permitted Monopolies in 
Kyrgyz Republic", the concepts of indus try-specific bodies of state regulation are 
repealed throughout the text.  
Once this draft law is adopted, the National Agen cy of Kyrgyz Republic for Anti-monopoly Policies 
and Competition Development will proceed to impl ementing anti-monopoly policies in all industries 
of the nation’s economy as an independent unified body.  
BRAZIL  
WT/TPR/S/170 , IV (1) paragraph 03 page 83 
According to the Report, "agricultural policy seeks to  raise rural incomes and achieve food security by 
2010.  This is to be achieved in wheat, poultry, eggs , dairy products, vegetabl es, lamb, beef and other 
meat, sugar, and vegetable oils.  The policy to fu rther this goal comprises increasing the Government's 
role by setting production targets,  providing support and protection,  and directing farmers what to 
produce".  Could the Government of Kyrgyz provide  a more comprehensive overview regarding that 
policy? 
According to the Rome Declaration, adopted in  November 17 1996, Kyrgyz Republic as the member 
of the world community has taken obligations to "hold the policy aimed on poverty and unequity reduction, ensuring physical and economical a ccess for everybody and everytime to the enough 
dietically appropriate food stuff, and its usage".  
The food safety as one of the priorities of the state,  can be achieved through su fficient production. At 
the same time, the sufficient ensuring with foodstuf f will not be the settlement of the problem, if the  WT/TPR/M/170/Add.1 
 Page 77 
 
 
poverty will not be reduced or eliminated and if the buying possibility of the majority of the 
population will not be raised.  
While settling the food safety problem a significant ro le should be given to the creation of the various 
kinds of cooperations and other types of associati ons. Mainly the associations should cover the fields 
of auxiliary services, processing and realization of produced goods. 
Nowadays the State has no ability to subsidize th e agricultural due to the lack of financial and 
material means. 
In order to ensure the implemen tation of the projects within th e rural areas grants and credits of 
international donors are attracted. The World B ank and the Asan Development Bank are rendering a 
sufficient financial and credit assistance  to the agr icultural sector of the economy through the kyrgyz 
agricultural financial corpor ation and supporting credit unions. 
The important activity in ensuring the farmers and pe asants with the necessary information is hold by 
the regionally established agricultural consu ltative services (SKS) and Kyrgyz agrarian market 
information system (KARIS).    
As far as possible the Government of the Kyrg yz Republic is supporting the farmers by providing 
commodity credits by giving seeds, material & technical resources and grants. The State budget 
annually envisages means for repair and reconstructi on of waterworks facility, plant protection and 
quarantine, improving the epizootic situation, holding scientific researches. 
WT/TPR/S/170 , II (3) (i) paragraph 11 page 22 
The report highlights that "the Kyrgyz Republic's general trade policy objectives include achieving a 
more outward-oriented trade regime, increasing overseas market access for exports, and integrating 
more into the world economy".  What woul d be the initial steps to achieve these goals? 
It is necessary to point out that the first steps w ere made by the Kyrgyz Republic while it has joined 
the World Trade Organization in 1998 and ensured itself with market access for its products. The 
Laws which were adopted with the aim of joining the WTO were necessary in order to establish the 
foreign trade regime, favorable for development of  trade and attracting investments into the economy 
of the country. The further step s of the Kyrgyz Republic are: ma intenance of liberal trade regime; 
development of services market, as well as transpor t, financial, telecommunication and tourist 
markets; forming the liberal business climate for attracting sufficient investments, necessary for 
creating strong economic entities, and for development of SMEs. 
WT/TPR/S/170 , II (4) (II) paragraph 42 page 35 
According to the Secretariat Report, an eventu al adoption of the EAEC tariff structure might 
adversely affect the Kyrgyz Republic's WTO commitm ents, since it could increase the applied tariff 
above the bound tariff.  Could the Kyrgyz Government provide more information, especially regarding the tariff lines and sectors that might be affected? 
Kyrgyz Republic is adhering to the position of joining the Common customs tariff of EAEC after 
accession of other EAEC members to WTO, when th eir obligations on tariffs will be formed.  
Majority of the EAEC countries are in the negotiati on process, and after taking by them obligations 
under the WTO, there will arise a necessity of forming new Common customs tariff. WT/TPR/M/170/Add.1 
Page 78  
 
WT/TPR/S/170
, II (4) (III) paragraph 56 page 38 
The Secretariat Report informs that the Kyrgyz Rep ublic provides duty free treatment to all imports 
from least developed countries.  We commend this in itiative and additionally would like to have some 
more information regarding the following aspects: 
Does the duty free treatment comprise all products imported from LDCs? Yes, all the goods imported from the Least Devel oped Countries are given tariff preferences in the 
form of exemption from customs duties payment. 
Are there any exclusions or exceptions? 
No exceptions are applied.  
How have these imports from LDCs progressed since the duty free treatment was granted ? 
The import from LDCs to the Kyrgyz Republic is ne gligible (import in 2005 – 410 000 USD), hence, 
there were no sufficient changes within the import stru cture after rendering the preferences to LDCs.   
WT/TPR/S/170
, III (2) (X) paragraph 64 page 60 
The Secretariat Report informs that the Kyrgyz Re public practices a liberal trade regime.  On the 
other hand, also according to the Report, it seems th at there is still  no intention to abolish state 
trading in alcohol or tobacco.  Considering that the Kyrgyz Republic is a market oriented economy, 
we would like to know the views of the authorities about this point, regarding the reasons for the 
maintenance of such practice and the prospects for its modification. 
The State monopoly was introduced with respect to production, storage and realization of spirit and 
alcoholic beverages with the aim of regulating th e market of the alcoholic production and reducing 
the number of entities, producing alcoholic goods using equipment, which not conforms to the 
technological process. The State is still not ready to leave the state trading operations at the market of 
the alcoholic products as this sector is the significant component of the budget.  
The purpose of the State regulation of this sector  is to ensure the full collection of taxes from 
producing and realizing the alcoholic  products, clearing the market from inferior and counterfeited 
alcoholic products.  
In the future it is possible that this State practice will be eliminated. 
Concerning the tobacco field it is necessary to point  out that the State regulation deals only with the 
tobacco production and tobacco products. Any person is entitled to obtain the license for 
manufacturing tobacco products. Imported tobacco  products are freely sold within the domestic 
market, and there is no need of license for domestic di stribution and realization of tobacco products.  
WT/TPR/S/170 , III (2) (V) paragraph 44 page 55 
a)  Could the Kyrgyz Republic inform us what aut hority is responsible for issuing the certificate of 
origin when it is required by importing countries? 
Chamber of Commerce and Industry of the Kyrgyz Republic is responsible for issuing certificates on 
origin of goods.  WT/TPR/M/170/Add.1 
 Page 79 
 
 
WT/TPR/S/170 , IV paragraph 52 page 100 
In the Secretariat's Report, it is mentioned th at "the Kyrgyz Republic undertook commitments on 
545 subsectors and activities during accession, incl uding no market access or national treatment 
restrictions under almost all sectors and modes of  supply (except for a small number of strategic 
services and mode 4)". 
Please inform: 
 (a) Which are these strategic services?  Please inform also the domestic regulation 
measures, as per GATS Article VI.4, re lated to qualification requirements and 
procedures, technical standards and license requirements, in the following sectors:  
Sectors 1.A 
 (d) architectural services; 
 (e) engineering services;  (f) integrated engineering services,  (g) urban planning and landscape architectur al services;  1.B computer and related 
services;  and 3. construction and related services. 
Strategic kinds of services, on which the Kyrgyz Re public has not taken obligations are: services in 
the field of energy distribution, postal servi ces, the air transport within the Republic. 
Domestic regulation measures for construction services:   Licensing of the construction activities is based on the Law of the Kyrgyz Republic "On licensing", 
dated from 03.03.1997 an d Provision "On licensing the certain kinds of entrepreneurship activities", 
approved by the Government Resolution of the K yrgyz Republic dated from 31.05.01, N260, last 
revised on September 18, 2006.  
Following activities are subject to licensing:  - town planning, designing & researching works of dwelling, public and industrial 
buildings and constructions; 
 - construction and installation works, excep t construction of individual dwelling 
houses. 
The kinds of construction activities, subject to licen sing, are fulfillment of designing, construction and 
installation works during new construction, as well as during extension, reconstruction, technical re-
equipment, restoration, re-profiling, repai ring and renewal of operating objects.   
The contents of the kinds of the constructive activ ities are determined on the basis of a list of work, 
approved by the abovementioned Provision. Fulfillment of the works by the en tities not included into 
the list of this provision are considered to be free and do not require license. 
Licenses are issued without limiting the time and operating territory. Additional license requirements:  a) depending on the possibility of fulfillme nt of work which are of certain level of 
complexity, while issuing the licenses th e level of responsibility is determined WT/TPR/M/170/Add.1 
Page 80  
 
according to the "Rules of determining responsibility while licensing the fulfilling 
work in the construction field", approved within the abovementioned Provision; 
 b) the legal person in order to obtain license should have at least one specialist, having 
the appropriate qualificational certificate, for each kind of applied activity and work; 
 c) the physical person is given license for t hose kinds of constructive activities, which he 
can fulfill personally depending on hi s own professional skills, approved 
documentally, or control their qualitative fu lfillment, providing the availability of 
qualification certificate for respective professional activity; 
 d) qualificational requirements to specialists are set in accordance with the "Provision 
on the process of holding qua lificational certification of speci alist in the construction 
field", approved by the Government Reso lution dated from April 3, 1997, N 188. 
The main qualificational requirements  are: education (higher or t echnical or comprehensive), work 
experience within the constructi ve activity not less than 5 years. 
The technical standards, which are used in cons truction activity, are thos e adopted and operating in 
CIS countries.  
Domestic regulation measures for computer and attendant services. 
No special domestic regulation measures are applied to computer services. Any legal or physical 
person may render this kind of services by passing th e procedure of registration for holding general 
entrepreneurship activity.  
The attendant services include IP te lephony, internet providing.  
Based on the Government Resolution N 265, 07.05.2003 "On entering  amendments into the 
Resolution of the Government of the Kyrgyz Repu blic N260, 31.05.2001 "O n licensing the separate 
kinds of entrepreneurship activities" some kinds of  electric coupling in order to obtain license for 
rendering  services in the electric coupling field, particularly in servicing the inter-city and 
international telephone (voice) connection and servi ces of batch transmission in real time mode are 
required to provide obligation of the applicant ( licensee), reflected in the license agreement, on 
investing into the telecommunication infrastructure of the Kyrgyz Republic not less than 20 mln. Soms 
within 1 year beginning from the license issuance.  Beside, general requirements for licensing are 
applied similar to requirements for mail service.  
COLOMBIA
 
Customs and tariff regulation 
Table No. 5 indicates that the number tariff lines  subject to specific duties has increased: from 
14 lines in 1999 to 155 lines in 2006. 
Could you explain the reasons to increase the number of tariff lines with specific duties? 
Could the authorities of Kyrgyz Republic regard that specific duties redu ce the transparency of 
custom duties? 
Specific duties (including non ad valorem -12, combin ed -143), are applied within the obligations of 
the Kyrgyz Republic under WTO. On those items, on which the Kyrgyz Republic has taken obligations 
of non ad valorem terms, in th e current tariff it applies non ad valo rem rates, adopted according to  WT/TPR/M/170/Add.1 
 Page 81 
 
 
the obligations. On those items, where the Kyrgyz Republic obliged to apply combined rates, only ad 
valorem equivalents are used. In  order to ensure the transparency of collecting customs duties. 
Import quotas and licensing (paragraph. 56) 
According to foot note 45 licenses of tobacco l eaf and products were can celled in January 2001. 
Could explain why these products still are in the list of imported goods subjected to licensing 
Table III.2? 
The Law of the Kyrgyz Republic "On licensing" dated from 18 January, 2001, #13, licensing of 
tobacco leaf and fermented tobacco export was cancelled.  
Currently, the tobacco was included into the list of goods, which import is licensed (Resolution of 
National Representatives Assembly of the Jogorku  Kenesh of the Kyrgyz Republic, 8 June, 1998 
#1101-1). However, in practice the import of tobacco  into the Kyrgyz Republic is not licensed, as it is 
imported in negligible amounts fo r improving the tobacco’s grade of quality, used in producing the 
tobacco products.  
SINGAPORE  
Paragraph 102, page 71 of the report by the Secretariat, states that "the business climate remains 
unconducive to private economic activity. Administrative barriers to doing business impose 
substantial delays and added costs". Will the de legation of the Kyrgyz Republic please elaborate on 
the steps which would be taken to improve the business climate? 
Attracting foreign direct investments to the na tional economy and creating favorable business climate 
are the main priority directions of economic poli cy of the Government of the Kyrgyz Republic and 
reciprocal economic cooperation of the Kyrgyz Republic with the foreign countries.  
In order to improve the investment and business climate in the country and it’s competitiveness for 
world investments, the Government of the Kyrg yz Republic is taking all measures on forming 
favorable business terms and improving the cond itions of attracting direct investments to the 
Republic.  
In this connection, a measures aimed on deregul ation of the economy, inclusion of unjustified  
intervention of state bodies into the activity of th e entities are taken, at the same time administrative 
barriers and restrictions in the field of investment and other business activity are being eliminated, and the new approaches in managing the market relations are introduced.  
(According to the Decree of the President of the Kyrgyz Republic "On measures for improving the 
state policy in the field of investment and other business activity regulation", dated from 
25 April 2002, #100, with a view of realiz ation of objectives on developing and supporting 
entrepreneurship, determined by  the Comprehensive Development Program of the Kyrgyz Republic 
till 2010, forming favorable business climate and developing the process of attracting foreign 
investments to the Kyrgyz Republic, elimination of un justified  intervention of state agencies into the 
activity of the business entities, elimination of admin istrative barriers and restrictions in the field of 
investment and other business activity, introducing new methods of regulating market relations within 
the Kyrgyz Republic, it has decided: 
 - to consider the obtaining licenses, perm issions, certificates, conclusions, passing 
through the procedures of mandatory certifica tion, accreditations, tests, agreements, 
as well as payments for this documents , holding control and survey activities as an 
administrative barriers and restrictions in th e field of investment and other business 
activity. WT/TPR/M/170/Add.1 
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The functions on attracting and promoting foreign direct  investments in due time were charged to the 
Ministry of External Trade and Industry (Center for attracting foreign direct investments, which was 
abolished), Ministry of Agriculture and processing industry, Ministry of transport and communications, State Committee on state property and attracting foreign direct investments and others. 
With a view of strengthening the State policy in attracting and promoting direct investments, 
Department of direct investments policy was create d within the Ministry of Economy and Finance of 
the Kyrgyz Republic. Newly-created Department is res ponsible for coordination of activities of the 
state agencies in order to achieve more successful promotion of the country’s investment potential. It 
is also necessary to develop assisting the investo rs by establishing the one-window system "One-Stop-
Shop", which will contribute the potential investo rs by giving more qualitative consultation services, 
this, in its turn will positively influence the investment climate. Investors, in th eir turn, may assist the 
One Stop Shop, for instance by ensuring office equipment, Internet connection and so on. 
Currently, an External Marketing Strategy has been  worked out by the Department on foreign direct 
investments and sent for approval. After approval of  this document, a concrete action plan of the 
ministries and agencies will be adopted, for attracting investments. 
In order to effectively solve the matters relate d to the attraction and promotion of the direct 
investments, an issue of establishing interdepar tmental deliberative body "Investment Council" 
involving the representatives from concerned ministries and agencies is being worked over. 
Tax policy In accordance with the agreements of Memor andum on Economic policy for 2005-2007, fundamental 
sectors in the context of tax policy reforming are further reduction of tax burden of economic entities 
and increasing the economic growth rate.  
Thus, currently a favorable tax regime was already established. A rate of income tax for natural 
persons was set as 10% with a basic exemption limit  of 650 soms since January 1, 2006; a rate for 
profit tax for enterprises was also  decreased from 20% to 10%, sin ce 1 January 2006, and for natural 
and permitted monopolies beginning from January 1, 2007;  agricultural products are released from 
VAT; some local ineffective taxes were abolished, and import of basic production means was released 
from VAT.  
With a view of pursuing further effective tax po licy by establishing highest possible favorable terms 
for stirring up the activity of economic entities, ensuring the harmonization of taxation system with 
the neighboring countries and other international partners, providing influx of direct investments and 
implementation of State development programs in  the context of Comprehensive Development 
Program of the Kyrgyz Republic till 2010 and  Nati onal Strategy for poverty reduction, a Mid-term 
Tax Policy Improvement Strategy for 2006-20 08 and the staff of the Commission on it’s 
implementation was set by the President Decree #172, 13, April, 2006. 
The emphasis according to this Strategy is made  on further reducing the ta x burden by the economic 
entities. Thus, following most important  measures are intend to be realized:  
 - Adoption of the new Tax Code of the Kyrgyz Republic;  - Widening the taxable base with a simult aneous reduce of tax burden by economic 
entities, including revise of land tax rates, elimination of all FEZ, except FEZ 
"Bishkek".   WT/TPR/M/170/Add.1 
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 - Approving regulations on effective tax collection for real estate. After final 
introduction of which a possibility of e limination of numerous local taxes and 
reducing the rates of non market taxes up to  full elimination (road taxes, FPLCS) will 
be considered.  
 - It is planned to improve and strengthen the tax management, increase of effectiveness 
of tax and customs bodes activities, particul arly: reducing the threshold, established 
while tax concealing and collecting, whereupon the criminal responsibility is enforced; working out of bill on incom es legalization; transparency ensuring, 
informational openness of fiscal body’s activities; transparency of process on 
expending budgetary means. 
 - A special emphasis is made on impro vement of taxation system for SMEs, and on 
cooperation with the international organiz ations on worked out and acting projects 
taking into account the progressive exp erience of developed countries.  
At the same time with the Strategy for Improvi ng the tax policy in the Kyrgyz Republic for 2006-2008, 
the significant issue within the fiscal policy managing to be pointed out is the adoption of the new 
revise of the Tax Code.  
Currently, the draft of new Revise Tax Code of th e Kyrgyz Republic was submitted for consideration 
of Jogorku Kenesh (Parliament) of the Kyrg yz Republic by the Government Resolution #212, 
31 March 2006.  
The draft of new Revised Tax Code is not aimed only on pursuing fiscal policy, it has also social 
direction and envisages such measures, as: 
 - release from VAT of all import of fundamental means for VAT payers; 
 - establishing a single rate of income  tax from natural persons as 10%; 
 - establishing 10% profit tax for legal persons;  - reducing the rate of tax on income for n on-resident to 15%, which in acting Revise of 
the Tax Code were at 30% level. 
 - sufficient cut of list of local taxes and collection. 
 - rendering the conscientious taxpayers more fa cilitated (liberal) regime of taxation, at 
the same time a tax managing pressure on unconscientious taxpayers will be strengthen due to administration improvement.  For instance, extension of the terms of 
periodicity of controls for conscientious payers up to 3 years.  
 - Rendering sufficient indulgence in the adm inistrative and adjective parts of the draft 
Code (all unavoidable contradictions in the legislation are interpreted in favor of  
taxpayer, rules envisaging minimization of taxpayer contacts with the tax services, 
taxation principles were settled, in particular  "principle of conscientiousness of the 
taxpayer"). 
 - Cases where inconsistencies of statuto ry and legal acts with the Tax Code are 
available were determined, and retirement of despairing debts is foreseen.    
With a view of pursuing further effective tax po licy by establishing highest possible favorable terms 
for stirring up the activity of economic entities, ensuring the harmonization of taxation system with 
the neighboring countries and other international partners, providing influx of direct investments and implementation of State development programs in  the context of Comprehensive Development 
Program of the Kyrgyz Republic till 2010 and  Nati onal Strategy for poverty reduction, a Mid-term 
Tax Policy Improvement Strategy for 2006-20 08 and the staff of the Commission on it’s 
implementation was set by the President Decree #172, 13, April, 2006. WT/TPR/M/170/Add.1 
Page 84  
 
At the same time, it is necessary to point out that currently a draft of new Revised Tax Code was 
elaborated and sent for approval of Jogorku Ken esh, which covers all measu res of tax legislation 
aimed on creation of highest possible favorable term s for activization of ec onomic entity’s activities, 
where making changes in the context of exclusion or inclusion of some kinds of taxes are supposed.   
Early the Ministry of Economy and Finance of the Kyrgyz Republic has informed that the fundamental 
directions, contributing the creation of favorable ec onomic terms for stirring up the economic entity’s 
activities and influx of direct investments into th e national economy would be covered in the Tax 
Policy Improvement Concept of the Kyrgyz Republic. 
Alongside with this, a taxable base will be widened, in  form of:  inclusion of property tax; increase of 
land tax rate for mid-term prospective and further change of it’s collection based on the market price 
of the land; inclusion of tax for use of bosoms w ith the simultaneous elimination of assignments for 
reproduction and development of sources of minerals and raw materials; regulation the legal base of 
taxation while abolishing (bankruptcy) the entity ; improving the legislation by exclusion of 
contradictory and unclear provisions of the Tax Code of the Kyrgyz Republic; exclusion of taxation 
issues from all legal documents and inclusion them into the Tax Code of the Kyrgyz Republic and 
bringing to conformity the guidance materials and other sub legislative acts with the Tax Code; 
cancelling the margins, related to the separate economic entities, and groups (sectors) of entities; 
release from VAT the modes of supply, but not th e definite categories of entities; cancellation of 
certain acting VAT margins stage by stage. 
Above mentioned directions of the tax reforms are also covered by the Memorandum on economic 
policy (MEP) for period from October 1 2001 to September 30, 2002/2004, also for 2005-2007, 
signed between the Kyrgyz Republic and the IMF. B eside this, Kyrgyz republic committed itself not to 
apply new margins both for domestic and foreign investors.  
It is necessary to point out that the rates of so me kinds of taxes and duties are annually approved by 
the Law of the Kyrgyz Republic, which possibly ma y not be accepted by the investor, and the latter 
may choose more favorable terms for himself, t hat will lead to the discrimination against other 
economic entities and create unequal terms for carryi ng out activities on the territory of the Kyrgyz 
Republic.  
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