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No C 319 / 6 Official Journal of the European Communities 16 . 11 . 94

PARTNERSHIP AND COOPERATION AGREEMENT

between the European Communities and their Member States, on the one part, and the

Republic of Kazakhstan, on the other part

THE KINGDOM OF BELGIUM,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE GRAND DUCHY OF LUXEMBOURG,

THE KINGDOM OF THE NETHERLANDS,

THE PORTUGUESE REPUBLIC,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,

Contracting Parties to the Treaty establishing the European Community, the Treaty estab ­
lishing the European Coal and Steel Community, and the Treaty establishing the European
Atomic Energy Community,

hereinafter referred to as ' Member States ', and

THE EUROPEAN COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY AND
THE EUROPEAN COAL AND STEEL COMMUNITY,

hereinafter referred to as ' the Community ',

of the one part, and

THE REPUBLIC OF KAZAKHSTAN,

of the other part,

CONSIDERING the links between the Community, its Member States and the Republic of
Kazakhstan and the common values that they share,

RECOGNIZING that the Community and the Republic of Kazakhstan wish to strengthen these
links and to establish partnership and cooperation which would strengthen and widen the
relations established in the past in particular by the Agreement between the European
Economic Community and the European Atomic Energy Community and the Union of Soviet
Socialist Republics on Trade and Commercial and Economic Cooperation, signed on 18
December 1989,

CONSIDERING the commitment of the Community and its Member States and of the Republic
of Kazakhstan to strengthening the political and economic freedoms which constitute the very
basis of the partnership,

CONSIDERING the commitment of the Parties to promote international peace and security as
well as the peaceful settlement of disputes and to cooperate to this end in the framework of the
United Nations and the Conference on Security and Cooperation in Europe ( CSCE ),

16 . 11 . 94 Official Journal of the European Communities No C 319 / 7

CONSIDERING the firm commitment of the Community and its Member States and of the
Republic of Kazakhstan to the full implementation of all principles and provisions contained in
the Final Act of the Conference on Security and Cooperation in Europe, the Concluding
Documents of the Madrid and Vienna follow-up meetings, the Document of the CSCE Bonn
Conference on Economic Cooperation, the Charter of Paris for a New Europe and the CSCE
Helsinki Document 1992 ' The Challenges of Change ',

CONFIRMING the attachment of the Community and its Member States and of the Republic of
Kazakhstan to the European Energy Charter,

CONVINCED of the paramount importance of the rule of law and respect for human rights,
particularly those of minorities, the establishment of a multiparty system with free and demo ­
cratic elections and economic liberalization aimed at setting up a market economy,

BELIEVING that full implementation of this Partnership and Cooperation Agreement will both
depend on and contribute to continuation and accomplishment of the political, economic and
legal reforms in the Republic of Kazakhstan, as well as the introduction of the factors
necessary for cooperation, notably in the light of the conclusions of the CSCE Bonn
Conference,

DESIROUS of encouraging the process of regional cooperation in the areas covered by this
Agreement with neighbouring countries in order to promote the prosperity and stability of the
region,

DESIROUS of establishing and developing regular political dialogue on bilateral and inter ­
national issues of mutual interest,

TAKING ACCOUNT of the Community 's willingness to provide for economic cooperation and
technical assistance as appropriate,

BEARING IN MIND the economic and social disparities between the Community and the
Republic of Kazakhstan,

RECOGNIZING that one of the major aims of this Agreement should be to facilitate the elim ­
ination of these disparities through Community assistance to the development and restructuring
of the Kazakh economy,

BEARING IN MIND the utility of the Agreement in favouring a gradual rapprochement
between the Republic of Kazakhstan and a wider area of cooperation in Europe and neigh ­
bouring regions and its progressive integration into the open international system,

CONSIDERING the commitment of the Parties to liberalize trade, based on the principles
contained in the General Agreement on Tariffs and Trade,

CONSCIOUS of the need to improve conditions affecting business and investment, and
conditions in areas such as establishment, labour, provision of services and capital movements,
and of the desirability of moving towards granting of national treatment for each other
companies,

CONVINCED that this Agreement will create a new climate for economic relations between the
Parties and in particular for the development of trade and investment, which are essential to
economic restructuring and technological modernization,

DESIROUS of establishing close cooperation in the area of environment protection taking into
account the interdependence existing between the Parties in this field,

DESIROUS to establish a close cooperation in particular in the area of energy and civil nuclear
safety,

BEARING IN MIND the intention of the Parties to develop their cooperation in the field of
space research in view of the complementarity of their activities in this area,

No C 319 / 8 Official Journal of the European Communities 16 . 11 . 94

DESIROUS of establishing cultural cooperation and improving the flow of information,

HAVE AGREED AS FOLLOWS :

Article 1 TITLE II

A partnership is hereby established between the
Community and its Member States of the one part, and
the Republic of Kazakhstan of the other part . The
objectives of this partnership are :

— to provide an appropriate framework for the political

dialogue between the Parties allowing the devel ­
opment of political relations,

— to promote trade and investment and harmonious

economic relations between the Parties and so to
foster their sustainable economic development,

— to provide a basis for legislative, economic, social,

financial, civil scientific, technological and cultural
cooperation,

— to support Kazakh efforts to consolidate its
democracy and to develop its economy and to
complete the transition into a market economy .

POLITICAL DIALOGUE

Article 4

A regular political dialogue shall be established between
the Parties which they intend to develop and intensify . It
shall accompany and consolidate the rapprochement
between the Community and the Republic of
Kazakhstan, support the political and economic changes
underway in that country and contribute to the estab ­
lishment of new forms of cooperation . The political
dialogue :

— will strengthen the links of the Republic of
Kazakhstan with the Community and its Member
States, and thus with the Community of democratic
nations as a whole . The economic convergence
achieved through this Agreement will lead to more
intense political relations,

— will bring about an increasing convergence of
positions on international issues of mutual concern
thus increasing security and stability .

Article 5

At ministerial level, political dialogue shall take place

TITLE I within the Cooperation Council established in Article 77
and on other occasions by mutual agreement .

GENERAL PRINCIPLES

Article 6

Article 2

Respect for democracy, principles of international law
and human rights as defined in particular in the United
Nations Charter, the Helsinki Final Act and the Charter
of Paris for a New Europe, as well as the principles of
market economy, including those enunciated in the
documents of the CSCE Bonn Conference, underpin the
internal and external policies of the Parties and
constitute an essential element of partnership and of the
present Agreement .

Article 3

The Parties consider that it is essential for the future
prosperity and stability of the region of the former Soviet
Union that the newly Independent States which have
emerged from the dissolution of the Union of Soviet
Socialist Republics, hereinafter called ' Independent
States ', should maintain and develop cooperation among
themselves in compliance with the principles of the
Helsinki Final Act and with international law and spirit
of good neighbourly relations and will make every effort
to encourage this process .

Other procedures and mechanisms for political dialogue
shall be set up by the Parties, and in particular in the
following forms :

— regular meetings at senior official level between

representatives of the Community and its Member
States on the one hand, and representatives of the
Republic of Kazakhstan on the other hand,

— taking full advantage of diplomatic channels between

the Parties including appropriate contacts in the
bilateral as well as the multilateral field such as
United Nations, CSCE meetings and elsewhere,

— any other means, including the possibility of expert

meetings which would contribute to consolidating
and developing this dialogue .

Article 7

Political dialogue at parliamentary level shall take place
within the framework of the Parliamentary Cooperation
Committee established in Article 82 of the present
Agreement .

16 . 11 . 94 Official Journal of the European Communities No C 319 / 9

TITLE III Article 10

TRADE IN GOODS

Article 8

1 . The Parties shall accord to one another most ­
favoured-nation treatment in all areas in respect of :

— customs duties and charges applied to imports and

exports, including the method of collecting such
duties and charges,

— provisions relating to customs clearance, transit,
warehouses and transhipment,

— taxes and other internal charges of any kind applied

directly or indirectly to imported goods,

— methods of payment and the transfer of such

payments,

— the rules relating to the sale, purchase, transport,

distribution and use of goods on the domestic
market .

2 . The provisions of paragraph 1 shall not applay to :

( a ) advantages granted with the aim of creating a

customs union or a free-trade area or pursuant to the
creation of such a union or area ;

( b ) advantages granted to particular countries in
accordance with the General Agreement on Tariffs
and Trade and with other international arrangements
in favour of developing countries ;

( c ) advantages accorded to adjacent countries in order

to facilitate frontier traffic .

3 . The provisions of paragraph 1 shall not apply,
during a transitional period expiring on the date of the
Republic of Kazakhstan acceding to GATT or on 31
December 1998, whichever is earlier, to advantages
defined in Annex I granted by the Republic of
Kazakhstan to other states which have emerged from the
dissolution of the USSR .

Article 9

1 . The Parties agree that the principle of free transit is
an essential condition of attaining the objectives of this
Agreement . In this connection each Party shall secure
unrestricted transit via or through its territory of goods
originating in the customs territory or destined for the
customs territory of the other Party .

2 . The rules described in Article 5 ( 2 ), ( 3 ), ( 4 ) and ( 5 )
of the GATT are applicable between the two Parties .

3 . The rules contained in this Article are without
prejudice to any special rules relating to specific sectors,
in particular such as transport, or products agreed
between the Parties .

Without prejudice to the rights and obligations stemming
from international conventions on the temporary
admission of goods which bind both Parties, each Party
shall furthermore grant the other Party exemption from
import charges and duties on goods admitted
temporarily, in the instances and according to the
procedures stipulated by any other international
convention on this matter binding upon it, in conformity
with its legislation . Account shall be taken of the
conditions under which the obligations stemming from
such a convention have been accepted by the Party in
question .

Article 11

1 . Goods originating in the Republic of Kazakhstan
shall be imported into the Community free of quanti ­
tative restrictions without prejudice to the provisions of
Articles 13, 16 and 17 and to the provisions of Articles

77, 81, 244, 249 and 280 of the Act of Accession of
Spain and Portugal to the European Community .

2 . Goods originating in the Community shall be
imported into the Republic of Kazakhstan free of all
quantitative restrictions and measures of equivalent
effect .

Article 12

Goods shall be traded between the Parties at market ­
related prices

Article 13

1 . Where any product is being imported into the
territory of one of the Parties in such increased
quantities and under such conditions as to cause or
threaten to cause injury to domestic producers of like or
direct competitive products, the Community or the
Republic of Kazakhstan, whichever is concerned, may
take appropriate measures in accordance with the
following procedures and conditions .

2 . Before taking any measures, or in cases to which
paragraph 4 applies as soon as possible thereafter, the
Community or the Republic of Kazakhstan as the case
may be shall supply the Cooperation Council with all
relevant information with a view to seeking a solution
acceptable to both Parties as provided for in Title IX .

3 . If, as result of the consultations, the Parties do not
reach agreement within 30 days of referral to the Coop ­
eration Council on actions to avoid the situation, the
Party which requested consultations shall be free to
restrict imports of the products concerned to the extent
and for such time as is necessary to prevent or remedy
the injury, or to adopt other appropriate measures .

No C 319 / 10 Official Journal of the European Communities 16 . 11 . 94

4 . In critical circumstances where delay would cause Article 17
measures consultations damage difficult before shall the to be consultations repair offered, the immediately Parties, on the may condition after take taking that the lishing 1 . Trade the European in products Coal covered and Steel by Community the Treaty shall estab be ­
such action . governed exception by of Article the provisions 1 1 and upon of this entry Title III into force, with, by the the

provisions of an agreement on quantitative arrangements
concerning exchange of ECSC steel products .

5 . In the selection of measures pursuant to this
Article, the Contracting Parties shall give priority to
those which cause least disturbance to the achievement
of the aims of this Agreement .

2 . A contact group on coal and steel matters shall be
set up, comprising representatives of the Community on
the one hand, and representatives of the Republic of
Kazakhstan on the other .

6 . Nothing in this Article shall prejudice or affect in
any way the taking, by either Party, of anti-dumping or The contact group shall exchange, on a regular basis,
countervailing measures in accordance with Article VI of information on all coal and steel matters of interest to
the GATT, the Agreement on implementation of Article the Parties .
VI of the GATT, the Agreement related on interpre ­
tation and application of Articles VI, XVI and XXIII of
the GATT or related internal legislation .
Article 18

Trade in nuclear materials shall be subject to the
provisions of a specific Agreement to be concluded
Article 14 between the European Atomic Energy Community and
the Republic of Kazakhstan .

The Parties undertake to consider development of the
provisions in this Agreement on trade in goods between
them, as circumstances allow, including the situation
arising from the accession of the Republic of Kazakhstan
to the General Agreement on Tariffs and Trade . The
Cooperation Council referred to in Article 77 may make
recommendations on such developments to the Parties
which could be put into effect, where accepted, by virtue
of agreement between the Parties in accordance with
their respective procedures .

TITLE IV

PROVISIONS AFFECTING BUSINESS AND

INVESTMENT

CHAPTER I

Labour conditions

Article 15

The Agreement shall not preclude prohibitions or
restrictions on imports, exports or goods in transit Article 19
justified on grounds of public morality, public policy or
public security ; the protection of health and life of 1 . Subject to the laws, conditions and procedures
humans, animals or plants ; the protection of natural applicable in each Member State, the Community and
resources ; the protection of national treasures of artistic, the Member States shall endeavour to ensure that the
historic or archaeological value or the protection of treatment accorded to nationals of the Republic of
intellectual, industrial and commercial property or rules Kazakhstan, legally employed in the territory of a
relating to gold and silver . Such prohibitions or Member State shall be free from any discrimination
restrictions shall not, however, constitute a means of based on nationality, as regards working conditions,
arbitrary discrimination or a disguised restriction on remuneration or dismissal, as compared to its own
trade between the Parties . nationals .

Article 16

This Title III shall not apply to trade in textile products
falling within Chapters 50 to 63 of the combined nomen ­
clature . Trade in these products shall be governed by a
separate agreement, initialled on 15 October 1993 and
applied provisionally since 1 January 1994 .

2 . Subject to the laws, conditions and procedures
applicable in the Republic of Kazakhstan, the Republic
of Kazakhstan shall endeavour to ensure that the

treatment accorded to nationals of a Member State,
legally employed in the territory of the Republic of
Kazakhstan, shall be free from any discrimination based
on nationality, as regards working conditions, remun ­
eration or dismissal, as compared to its own nationals .

16 . 11 . 94 Official Journal of the European Communities No C 319 / 11

Article 20 Article 24

The Cooperation Council shall examine which joint
efforts can be made to control illegal immigration taking
into account the principle and the practice of read ­
mission .

Article 21

The Cooperation Council shall examine which
improvements can be made in working conditions for
business people consistent with the international
commitments of the Parties, including those set out in
the document of the CSCE Bonn Conference .

Article 22

The Cooperation Council shall make recommendations

for the implementation of Articles 19, 20 and 21 .

CHAPTER II

Conditions affecting the establishment and
operation of companies

Article 23

1 . ( a ) The Community and its Member States shall

grant for the establishment of Kazakh companies
in their territories treatment no less favourable
than that accorded to companies of any third
country, and this in conformity with their legis ­
lation and regulations .

( b ) Without prejudice to the reservations listed in

Annex II, the Community and its Member States
shall grant to subsidiaries of Kazakh companies
established in their territories a treatment no less
favourable than that granted to any Community
companies, in respect of their operation, and this
in conformity with their legislation and regu ­
lations .

( c ) The Community and its Member States shall

grant to branches of Kazakh companies estab ­
lished in their territories a treatment no less

favourable than that accorded to branches of
companies of any third country, in respect of their
operation, and this in conformity with their legis ­
lation and regulations .

2 . Without prejudice to the provisions of Articles 35
and 86, the Republic of Kazakhstan shall grant to
Community companies and their branches treatment no
less favourable than that accorded to companies of the
Republic of Kazakhstan and their branches or to any
third country companies and their branches, whichever is
the better, in respect of their establishment and
operations, as defined in Article 25, on its territory and
this in conformity with its legislation and regulations .

1 . The provisions of Article 23 shall not apply to air
transport, inland waterways transport and maritime

transport .

2 . However, in respect of activities undertaken by
shipping agencies for the provision of international
maritime transport services, including intermodal
activities involving a sea leg, each Party shall permit to
the companies of the other Party their commercial
presence in its territory in the form of subsidiaries or
branches, under conditions of establishment and
operation no less favourable than those accorded to its
own companies or to subsidiaries or branches of
companies of any third country, whichever are the
better .

Such activities include, but are not limited to :

( a ) marketing and sales of maritime transport and
related services through direct contact with
customers, from quotation to invoicing, whether
these services are operated or offered by the service
supplier itself or by service suppliers with which the
service seller has established standing business

arrangements ;

( b ) purchase and use, on their own account or on behalf

of their customers ( and to resale to their customers )
of any transport and related services, including
inward transport services by any mode, particularly
inland waterways, road and rail necessary for the
supply of an integrated service ;

( c ) preparation of documentation concerning transport

documents, customs documents, or other documents
related to the origin and character of the goods
transported ;

( d ) provision of business information of any means,

including computerized information systems and
electronic data interchange ( subject to any
non-discriminatory restrictions concerning telecom ­
munications );

(e ) setting up of any business arrangement, including

participation in the company 's stock and the
appointment of personnel recruited locally ( or, in the
case of foreign personnel, subject to the relevant
provisions of this Agreement ), with any locally estab ­
lished shipping agency ;

( f ) acting on behalf of the companies, organizing the

call of the ship or taking over cargoes when
required .

No C 319 / 12 Official Journal of the European Communities 16 . 11 . 94

Article 25

For the purpose of this Agreement : '

( a ) a ' Community company 5 or a ' Kazakh company '

respectively shall mean a company set up in
accordance with the laws of a Member State or of
the Republic of Kazakhstan respectively and having
its registered office or central administration, or
principal place of business in the territory of the
Community or the Republic of Kazakhstan
respectively . However, should the company, set up in
accordance with the laws of a Member State or the
Republic of Kazakhstan respectively, have only its
registered office in the territory of the Community
or the Republic of Kazakhstan the company shall be
considered a Community or Kazakh company
respectively if its operations possess a real and
continuous link with the economy of one of the
Member States or the Republic of Kazakhstan
respectively ;

( b ) ' subsidiary ' of a company shall mean a company

which is effectively controlled by the first company ;

( c ) ' branch ' of a company shall mean a place of business

not having legal personality which has the
appearance of permanency, such as the extension of
a parent body, has a management structure and is
materially equipped to negotiate business with third
parties so that the latter, although knowing that
there will if necessary by a legal link with the parent
body, the head office of which is abroad, do not
have to deal directly with such parent body but may
transact business at the place of business constituting
the extension ;

( d ) ' establishment ' shall mean the right of Community or

Kazakh companies as referred to in Article 23 ( 1 ) to
take up economic activities by means of the setting
up of subsidiaries and branches in the Republic of
Kazakhstan or in the Community respectively ;

( e ) ' operation ' shall mean the pursuit of economic
activities ;

( f ) ' economic activities ' shall mean activities of an
industrial, commercial and professional character ;

( g ) with regard to international maritime transport,
including intermodal operations involving a sea leg,
shall also be beneficiaries of the provisions of this
chapter and Chapter III nationals of the Member
States or of the Republic of Kazakhstan established
outside the Community or the Republic of
Kazakhstan respectively, and shipping companies
established outside the Community or the Republic
of Kazakhstan and controlled by nationals of a
Member State or nationals of the Republic of
Kazakhstan respectively, if their vessels are

registered in that Member State or in the Republic of
Kazakhstan respectively in accordance with their
respective legislation .

Article 26

1 . Notwithstanding any other provisions of the
Agreement, a Party shall not be prevented from taking

measures for prudential reasons, including for the
protection of investors, depositors, policy holders or
persons to whom a fiduciary duty is owed by a financial
service supplier, or to ensure the integrity and stability of
the financial system . Where such measures do not
conform with the provisions of the Agreement, they shall
not be used as a means of avoiding the obligations of ia
Party pursuant to the Agreement .

2 . Nothing in the Agreement shall be construed to
require a Party to disclose information relating to the
affairs and accounts of individual customers or any
confidential or proprietary information in the possession
of public entities .

Article 27

The provisions of the present Agreement shall not
prejudice the application by each of any measure
necessary to prevent the circumvention of its measures
concerning third country access to its market, through
the provisions of this Agreement .

Article 28

1 . Notwithstanding the provisions of Chapter I of this
Title, a Community company or a Kazakh company

established in the territory of the Republic of
Kazakhstan or the Community respectively shall be
entitled to employ, or have employed by one of its sub ­
sidiaries or branches, in accordance with the legislation
in force in the host country of establishment, in the
territory of the Republic of Kazakhstan and the
Community respectively, employees who are nationals of
Community Member States and the Republic of
Kazakhstan respectively, provided that such employees
are key personnel as defined in paragraph 2 of this
Article, and that they are employed exclusively by
companies, or branches . The residence and work permits
of such employees shall only cover the period of such
employment .

2 . Key personnel of the abovementioned companies
herein referred to as ' organizations ' are ' intra-corporate
transferees ' as defined in ( c ) of this Article in the
following categories, provided that the organization is a
juridical person and that the persons concerned have
been employed by it or have been partners in it ( other
than majority shareholders ), for at least the year
immediately preceding such movement :

16 . 11 . 94 Official Journal of the European Communities No C 319 / 13

( a ) persons working in a senior position with an organ ­

ization, who primarily direct the management of the
establishment, receiving general supervision or
direction principally from the board of directors or
stockholders of the business or their equivalent,
including :

— directing the establishment or a department or

subdivision of the establishment,

— supervising and controlling the work of other

supervisory, professional or managerial
employees,

— having the authority personally to hire and fire or

recommend hiring, firing or other personnel
actions ;

( b ) persons working within an organization who possess

uncommon knowledge essential to the estab ­
lishment 's service, research equipment, techniques or
management . The assessment of such knowledge
may reflect, apart from knowledge specific to the
establishment, a high level of qualification referring
to a type of work or trade requiring specific
technical knowledge, including membership of an
accredited profession ;

( c ) an ' intra-corporate transferee ' is defined as a natural

person working within an organization in the
territory of a Party, and being temporarily trans ­
ferred in the context of pursuit of economic activities
in the territory of the other Party ; the organization
concerned must have its principal place of business in
the territory of a Party and the transfer be to an
establishment ( branch, subsidiary ) of that organ ­
ization, effectively pursuing like economic activities
in the territory of the other Party .

Article 29

The Parties recognise the importance of granting each
other national treatment with regard to the establishment
and operation of each other 's companies in their terri ­
tories and agree to consider the possibility of movement
towards this end on a mutually satisfactory basis, and in
the light of any recommendations by the Cooperation
Council .

2 . The provisions of this Article are without prejudice
to those of Article 38 ; the situations covered by such
Article 38 shall be solely governed by its provisions to
the exclusion of any other .

3 . Acting in the spirit of partnership and cooperation
and in the light of the provisions of Article 44 the
Government of the Republic of Kazakhstan shall inform
the Community of its intentions to submit new legis ­
lation or adopt new regulations which may render the
conditions for the establishment or operation in the
Republic of Kazakhstan of subsidiaries and branches of
Community companies more restrictive than the situation
existing on the day preceding the date of signature of the
Agreement . The Community may request the Republic
of Kazakhstan to communicate the drafts of such legis ­
lation or regulations and to enter into consultations
about those drafts .

4 . Where new legislation or regulations introduced in
the Republic of Kazakhstan would result in rendering
the conditions for operation of subsidiaries and branches
of Community companies established in the Republic of
Kazakhstan more restrictive than the situation existing
on the day of signature of the Agreement, such legis ­
lation or regulations shall not apply during three years
following the entry into force of the relevant act to those
subsidiaries and branches already established in the
Republic of Kazakhstan at the time of entry into force of
the relevant act .

CHAPTER III

Cross-border supply of services between the

Community and the Republic of Kazakhstan

Article 31

1 . The Parties undertake in accordance with the
provisions of this chapter to take the necessary steps to

allow progressively the supply of services by Community
or Kazakh companies who are established in a Party
other than that of the person for whom the services are
intended taking into account the development of the
services sectors in the Parties .

2 . The Cooperation Council shall make recommen ­
dations for the implementation of paragraph 1 of this
Article .

Article 30

1 . The Parties shall use their best endeavours to avoid
taking any measures or actions which render the
conditions for the establishment and operation of each
other 's companies more restricitve than the situation
existing on the day preceding the date of signature of the
Agreement .

Article 32

The Parties shall cooperate with the aim of developing a
market oriented service sector in the Republic of
Kazakhstan .

No C 319 / 14 Official Journal of the European Communities 16 . 11 . 94

Article 33 inland waterways of the Republic of Kazakhstan and
vice versa .

1 . The Parties undertake to apply effectively the
principle of unrestricted access to the international
maritime market and traffic on a commercial basis .

( a ) The above provision does not prejudice the rights

and obligations arising from the United Nations
Convention and Code of Conduct for Liner
Conferences, as applicable to one or other
Contracting Party to the present Agreement .
Non-conference lines will be free to operate in
competition with a conference as long as they adhere
to the principle of fair competition on a commercial
basis .

( b ) The Parties affirm their commitment to a freely

competitive environment as being an essential feature
of the dry and liquid bulk trade .

2 . In applying the principles of paragraph 1, the
Parties shall :

( a ) not apply, as from entry into force of this
Agreement, any cargo sharing provisions of bilateral

agreements between any Member States of the
Community and the former Soviet Union ;

( b ) not introduce cargo sharing clauses into future

bilateral agreements with third countries, other than
in those exceptional circumstances where liner
shipping companies from one or other Party to the
present Agreement would not otherwise have an
effective opportunity to ply for trade to and from the
third country concerned ;

( c ) prohibit cargo sharing arrangements in future
bilateral agreements concerning dry and liquid bulk
trade ;

( d ) abolish upon entry into force of this Agreement, all

unilateral measures, administrative, technical and
other obstacles which could have restrictive or
discriminatory effects on the free supply of services
international maritime transport .

Each party shall grant, inter alia, no less favourable
treatment, for the ships operated by nationals or
companies of the other Party, than that accorded to a
Party 's own ships, with regard to access to ports open to
international trade, the use of infrastructure and
auxiliary maritime services of the ports, as well as related
fees and charges, customs facilities and the assignment of
berths and facilities for loading and unloading .

3 . Nationals and companies of the Community
providing international maritime transport services shall
be free to provide international sea-river services in the

Article 34

With a view to assuring a coordinated development of
transport between the Parties, adapted to their
commercial needs, the conditions of mutual market
access and provision of services in transport by road, rail
and inland waterways and, if applicable, in air transport
may be dealt with by specific agreements where appro ­
priate negotiated between the Parties after entry into
force of this Agreement .

CHAPTER IV

General provisions

Article 35

1 . The provisions of this Title shall be applied subject
to limitations justified on grounds of public policy, public
security or public health .

2 . They shall not apply to activities which in the
territory of either Party are connected, even occasion ­
ally, with the exercise of official authority .

Article 36

For the purpose of Title IV of this Agreement, nothing
in the Agreement shall prevent the Parties from applying
their laws and regulations regarding entry and stay,
work, labour conditions and establishment of natural
persons and supply of services, provided that, in so
doing, they do not apply them in a manner as to nullify
or impair the benefits accruing to any Party under the
terms of a specific provision of the Agreement . The
above provision does not prejudice the application of
Article 35 .

Article 37

Companies which are controlled and exclusively owned
by Kazakh companies and Community companies jointly
shall also be beneficiaries of the provisions of Chapters
II, III and IV of this Title .

Article 38

Treatment granted by either Party to the other
hereunder shall, as from the day one month prior to the
date of entry into force of the relevant obligations of the
General Agreement on Trade and Services ( GATS ), in
respect of sectors or measures covered by the GATS, in
no case be more favourable than that accorded by such
first Party under the provisions of GATS and this in
respect of each service sector, subsector and mode of
supply .

16 . 11 . 94 Official Journal of the European Communities No C 319 / 15

Article 39 — Community companies or Kazakh subsidiaries or

branches of Community companies to supply workers
For the purposes of Chapters II, III and IV of this Title, who are nationals of the Member States by
no account shall be taken of treatment accorded by the temporary employment contracts .
Community, its Member States or the Republic of
Kazakhstan pursuant to commitments entered into in
economic integration agreements in accordance with the
principles of Article V of the GATS . CHAPTER V

Current payments and capital

Article 40

1 . The most - favoured-nation treatment granted in
accordance with the provisions of this Title shall not
apply to the tax advantages which the Parties are
providing or will provide in the future on the basis of
agreements to avoid double taxation, or other tax

arrangements .

2 . Nothing in this Title shall be construed to prevent
the adoption or enforcement by the Parties of any
measure aimed at preventing the avoidance or evasion of
taxes pursuant to the tax provisions of agreements to
avoid double taxation and other tax arrangements, or
domestic fiscal legislation .

3 . Nothing in this Title shall be construed to prevent
Member States or the Republic of Kazakhstan from
distinguishing, in the application of the relevant
provisions of their fiscal legislation, between tax payers
who are not in identical situations, in particular as
regards their place of residence .

Article 41

Without prejudice to Article 28, no provision of
Chapters II, III and IV shall be interpreted as giving the

right to :

— nationals of the Member States or of the Republic of

Kazakhstan respectively to enter, or stay in, the
territory of the Republic of Kazakhstan or the
Community respectively in any capacity whatsoever,
and in particular as a shareholder or partner in a
company or manager or employee thereof or supplier
or recipient of services,

— Community subsidiaries or branches of Kazakh
companies to employ or have employed in the
territory of the Community nationals of the Republic
of Kazakhstan,

— Kazakh subsidiaries or branches of Community
companies to employ or have employed in the
territory of the Republic of Kazakhstan nationals of
the Member States,

— Kazakh companies or Community subsidiaries or

branches of Kazakh companies to supply Kazakh
persons to act for and under the control of other
persons by temporary employment contracts,

Article 42

1 . The Parties undertake to authorize in freely
convertible currency, any payments on the current
account of balance of payments between residents of the
Community and of the Republic of Kazakhstan
connected with the movement of goods, services or
persons made in accordance with the provisions of the
present Agreement .

2 . With regard to transactions on the capital account
of balance of payments, from entry into force of the
Agreement, the free movement of capital relating to

direct investments made in companies formed in
accordance with the laws of the host country and
investments made in accordance with the provisions of
Chapter II of this Title IV, and the liquidation or re ­
patriation of these investments and of any profit
stemming therefrom shall be ensured .

3 . Without prejudice to paragraph 2 or 5, as from
entry into force of this Agreement, no new foreign
exchange restrictions on the movement of capital and
current payments connected therewith between residents
of the Community and the Republic of Kazakhstan shall
be introduced and the existing arrangements shall not
become more restrictive .

4 . The Parties shall consult each other with a view to
facilitating the movement of forms of capital other than
those referred to in paragraph 2 between the Community
and the Republic of Kazakhstan in order to promote the
objectives of the present Agreement .

5 . With reference to the provisions of this Article,
until a full convertibility of the Kazakh currency within
the meaning of Article VIII of the articles of agreement
of the International Monetary Fund ( IMF ) is introduced,
the Republic of Kazakhstan may in exceptional circum ­
stances apply exchange restrictions connected with the
granting or taking up of short and medium-term
financial credits to the extent that such restrictions are
imposed on the Republic of Kazakhstan for the granting
of such credits and are permitted according to
Kazakhstan 's status under the IMF . The Republic of
Kazakhstan shall apply these restrictions in a
non-discriminatory manner . They shall be applied in
such a manner as to cause the least possible disruption to
this Agreement . The Republic of Kazakhstan shall
inform the Cooperation Council promptly of the intro ­
duction of such measures and of any changes therein .

No C 319 / 16 Official Journal of the European Communities 16 . 11 . 94

6 . Without prejudice to paragraph 1 and 2, where, in
exceptional circumstances, movements of capital between
the Community and the Republic of Kazakhstan cause,
or threaten to cause, serious difficulties for the operation
of exchange rate policy or monetary policy in the
Community or the Republic of Kazakhstan, the
Community and the Republic of Kazakhstan,
respectively, may take safeguard measures with regard to
movements of capital between the Community and the
Republic of Kazakhstan for a period not exceeding six
months if such measures are strictly necessary .

procurement, protection of health and life of humans,
animals and plants, the environment, consumer
protection, indirect taxation, technical rules and
standards, nuclear laws and regulations, transport .

3 . The Community shall provide the Republic of
Kazakhstan with technical assistance for the implemen ­
tation of these measures, which may include, for
example :

— the exchange of experts,

— the provisions of early information, especially on

CHAPTER VI relevant legislation,

Intellectual, industrial and commercial

— organization of seminars,
property protection

— training activities,

Article 43

1 . Pursuant to the provisions of this Article and of
Annex III, the Republic of Kazakhstan shall continue to
improve the protection of intellectual, industrial and
commercial property rights in order to provide, by the
end of the fifth year after the entry into force of the
Agreement, for a level of protection similar to that
existing in the Community, including effective means of
enforcing such rights .

2 . By the end of the fifth year after entry into force of
the Agreement, the Republic of Kazakhstan shall accede
to the multilateral conventions on intellectual, industrial
and commercial property rights referred to in para ­
graph 1 of Annex III to which Member States are parties
or which are de facto applied by Member States,
according to the relevant provisions contained in these
conventions .

TITLE V

LEGISLATIVE COOPERATION

Article 44

1 . The Parties recognize that an important condition
for strengthening the economic links between the
Republic of Kazakhstan and the Community is the
approximation of the Republic of Kazakhstan 's existing
and future legislation to that of the Community . The
Republic of Kazakhstan shall endeavour to ensure that
its legislation will be gradually made compatible with
that of the Community .

2 . The approximation of laws shall extend to the
following areas in particular : customs law, company law,
banking law, company accounts and taxes, intellectual
property, protection of workers at the workplace,
financial services, rules on competition including any
related issues and practices affecting trade, public

— aid for translation of Community legislation in the

relevant sectors .

4 . The Parties agree to examine ways to apply their
respective competition laws on a concerted basis in such
cases where trade between them is affected .

TITLE VI

ECONOMIC COOPERATION

Article 45

1 . The Community and the Republic of Kazakhstan
shall establish economic cooperation aimed at
contributing to the process of economic reform and
recovery and sustainable development of the Republic of
Kazakhstan . Such cooperation shall strengthen existing
economic links, to the benefit of both parties .

2 . Policies and other measures will be designed to
bring about economic and social reforms and restruc ­
turing in the Republic of Kazakhstan and will be guided
by the requirements of sustainability and harmonious
social development ; they will also fully incorporate en ­
vironmental considerations .

3 . To this end the cooperation will concentrate, in
particular, on economic and social development, human
resources development, support for enterprises ( including
privatization, investment and development of financial
services ), agriculture and food, energy and civil nuclear
safety, transport, tourism, environmental protection and
regional cooperation .

4 . Special attention shall be devoted to measures
capable of fostering cooperation between the Inde ­
pendent States with a view to stimulating a harmonious
development of the region .

16 . 11 . 94 Official Journal of the European Communities No C 319 / 17

5 . Where appropriate, economic cooperation and
other forms of cooperation provided for in this
Agreement may be supported by technical assistance

from the Community, taking into account the
Community 's relevant Council regulation applicable to
technical assistance in the Independent States, the
priorities agreed upon in the indicative programme
related to European Community technical assistance to
the Republic of Kazakhstan and its established coordi ­
nation and implementation procedures .

— the creation of favourable conditions for attracting

foreign investments into the Kazakh economy,

— to establish stable and adequate business law and

conditions, and to exchange information on laws,
regulations and administrative practices in the field of
investment,

— to exchange information on investment opportunities

in the form of, inter alia, trade fairs, exhibitions,
Article 46 trade weeks and other events .

Industrial cooperation

1 . Cooperation shall aim at promoting the following
in particular :

— the development of business links between economic

operators of both sides,

— Community participation in Kazakhstan 's efforts to

restructure its industry,

— the improvement of management,

— the improvement of the quality of industrial products,

— the development of efficient production and
processing capacity in the raw materials sector,

— the development of appropriate commercial rules and

practices including product marketing,

— environmental protection,

— defense conversion .

2 . The provisions of this Article shall not affect the
enforcement of Community competition rules applicable
to undertakings .

Article 47

Investment promotion and protection

1 . Bearing in mind the respective powers and
competences of the Community and the Member States,
cooperation shall aim to establish a favourable climate
for private investment, both domestic and foreign,
especially through better conditions for investment
protection, the transfer of capital and the exchange of
information on investment opportunities .

2 . The aims of cooperation shall be in particular :

— the conclusion, where appropriate, between the
Member States and the Republic of Kazakhstan of
agreements for the promotion and protection of
investment,

— the conclusion, where appropriate, between the
Member States and the Republic of Kazakhstan of
agreements to avoid double taxation,

Article 48

Public procurement

The Parties shall cooperate to develop conditions for
open and competitive award of contracts for goods and
services in particular through calls for tenders .

Article 49

Cooperation in the field of standards and conformity

assessment

1 . Cooperation between the Parties shall promote
alignment with internationally agreed criteria, principles
and guidelines followed in the field of quality . The
required actions will facilitate progress towards mutual
recognition in the field of conformity assessment, as well
as the improvement of Kazakh product quality .

2 . To this end they shall seek to cooperate in technical
assistance projects which will :

— promote appropriate cooperation with organizations

and institutions specialized in these fields,

— promote the use of Community technical regulations

and the application of European standards and
conformity assessment procedures,

— permit the sharing of experience and technical
information in the field of quality management .

Article 50

Mining and raw materials

1 . The Parties shall aim at increasing investment and
trade in mining and raw materials .

No C 319 / 18 Official Journal of the European Communities 16 . 11 . 94

2 . The cooperation shall focus in particular on the
following areas :

— exchange of information on the prospects of the

mining and non-ferrous metals sectors,

— the establishment of a legal framework for coop ­

eration,

— trade matters,

— the adoption and implementation of environmental

legislation,

— training,

— safety in the mining industry .

Article 51

Cooperation in science and technology

1 . The Parties shall promote cooperation in civil
scientific research and technological development ( RTD )
on the basis of mutual benefit and, taking into account
the availability of resources, adequate access to their
respective programmes and subject to appropriate levels
of effective protection of intellectual, industrial and
commercial property rights ( IPR ).

2 . Science and technology cooperation shall cover :

— the exchange of scientific and technical information,

— joint RTD activities,

— training activities and mobility programmes for
scientists, researchers and technicians engaged in
RTD in both sides .

Where such cooperation takes the form of activities
involving education and / or training, it should be carried
out in accordance with the provisions of Article 52 .

The Parties, on the basis of mutual agreement, can
engage in other forms of cooperation in science and
technology .

In carrying out such cooperation activities, special
attention shall be devoted to the redeployment of
scientists, engineers, researchers and technicians which
are or have been engaged in research on / and production
of weapons of mass destruction .

3 . The cooperation covered by this Article shall be
implemented according to specific arrangements to be
negotiated and concluded in accordance with the
procedures adopted by each party, and which shall set
out, inter alia, appropriate IPR provisions .

Article 52

Education and training

1 . The Parties shall cooperate with the aim of raising
the level of general education and professional qualifi ­
cations in the Republic of Kazakhstan, both in the public
and private sectors .

2 . The cooperation shall focus in particular on the
following areas :

— updating higher education and training systems in the

Republic of Kazakhstan including the system of
certification of higher educational establishments and
diplomas of higher education,

— the training of public and private sector executives

and civil servants in priority areas to be determined,

— cooperation between educational establishments and

between educational establishments and firms,

— mobility for teachers, graduates, administrators,
young scientists and researchers, and young people,

— promoting teaching in the field of European studies

within the appropriate institutions,

— teaching Community languages,

— post-graduate training of conference interpreters,

- — training of journalists,

— training of trainers .

3 . The possible participation of one Party in the
respective programmes in the field of education and
training of the other Party could be considered in
accordance with their respective procedures and, where
appropriate, institutional frameworks and plans of coop ­
eration will then be established building on participation

of the Republic of Kazakhstan in the Community 's
Tempus programme .

Article 53

Agriculture and the agro-industrial sector

The purpose of cooperation in this area shall be the
pursuance of agrarian reform, the modernization, pri ­
vatization and restructuring of agriculture, the agro ­

industrial and services sectors in the Republic of
Kazakhstan, development of domestic and foreign
markets for the Kazakh products, in conditions that
ensure the protection of the environment, taking into
account the necessity to improve security of food supply
as well as the development of agri-business, the
processing and distribution of agricultural products . The

16 . 11 . 94 Official Journal of the European Communities No C 319 / 19

Parties shall also aim at the gradual approximation of
Kazakh standards to Community technical regulations
concerning industrial and agricultural food products
including sanitary and phytosanitary standards .

Article 54

Energy

1 . Cooperation shall take place within the principles
of the market economy and the European Energy
Charter, against a background of the progressive inte ­
gration of the energy markets in Europe .

2 . The cooperation shall include among others the
following areas :

— the environmental impact of energy production
supply and consumption, in order to prevent or
minimize the environmental damage resulting from
these activities,

— improvement of the quality and security of energy

supply, including diversification of supply, in an
economic and environmentally sound manner,

— formulation of energy policy,

— improvement in management and regulation of the

energy sector in line with a market economy,

— the introduction of the range of institutional, legal,

fiscal and other conditions necessary to encourage
increased energy trade and investment,

— promotion of energy saving and energy effectiveness,

— modernization of energy infrastructure,

— improvement of energy technologies in supply and

end use across the range of energy types,

— management and technical training in the energy

sector,

— security in energy supply, transportation and transit

of energy and energy materials .

2 . Cooperation shall aim at combating the deterio ­
ration of the environment and in particular :

— effective monitoring of pollution levels and
assessment of environment ; system of information on
the state of the environment,

— combating local, regional and transboundary air and

water pollution,

— ecological restoration,

— sustainable, efficient and environmentally effective

production and use of energy,

— safety of industrial plants,

— classification and safe handling of chemicals,

— water quality,

— waste reduction, recycling and safe disposal, im ­

plementation of the Basle Convention,

— the environmental impact of agriculture, soil erosion,

and chemical pollution,

— the protection of forests,

— the conservation of biodiversity, protected areas and

sustainable use and management of biological

resources,

— land-use planning, including construction and urban

planning,

— use of economic and fiscal instruments,

— global climate change,

— environmental education and awareness,

— implementation of the Espoo Convention on En ­

vironmental Impact Assessment in a transboundary

context .

3 . Cooperation shall take place particularly through :

— disaster planning and other emergency situations,

— exchange of information and experts, including
information and experts dealing with the transfer of
clean technologies and the safe and environmentally
sound use of biotechnologies,

Article 55 — joint research activities,

Environment

— improvement of laws ( Community standards ),

1 . Bearing in mind the European Energy Charter, the
Parties shall develop and strengthen their cooperation on
environment and human health .

— cooperation at regional level ( including cooperation

within the framework of the European Environment
Agency ) and at international level,

No C 319 / 20 Official Journal of the European Communities 16 . 11 . 94

— development of strategies, particularly with regard to

global and climatic issues and also in view of
achieving sustainable development,

— environmental impact studies .

Article 56

Transport

The Parties shall develop and strengthen their coop ­
eration in the field of transport .

This cooperation shall, inter alia, aim at restructuring

and modernizing transport systems and networks in the
Republic of Kazakhstan, and developing and ensuring,
where appropriate, compatibility of transportation
systems in the context of achieving a more global

transport system .

The cooperation shall include, inter alia :

— the modernizing of management and operations of

road transport, railways, ports and airports,

— modernization and development of railways,
waterways, roads, ports, airports and air navigation
infrastructure including the modernization of major
routes of common interest and the trans-European
links for the above modes,

— promotion and development of multimodal transport,

— the promotion of joint research and development

programmes,

— preparation of the legislative and institutional
framework for policy development and implemen ­
tation including privatization of the transport sector .

Article 57

Space

Bearing in mind the respective competences of the
Community, its Member States and the European Space
Agency the Parties shall promote where appropriate long
term cooperation in the areas of civil space research,
development and commercial applications . The Parties
will pay particular attention to initiatives making full use
of the complementarity of their respective space
activities .

Article 58

Postal services and telecommunications

Within their respective powers and competences the

Parties shall expand and strengthen cooperation in the
following areas :

— the establishment of policies and guidelines for the

development of the telecommunications sector and
postal services,

— development of principles of a tariff policy and

marketing in telecommunications and postal services,

— encourage the development of projects for telecom ­

munications and postal services and attracting
investment,

— enhancing efficiency and quality of the provision of

telecommunications and postal services, amongst
others through liberalization of activities of
subsectors,

— advanced application of telecommunications, notably

in the area of electronic funds transfer,

— management of telecommunications networks and

their ' optimization ',

— an appropriate regulatory basis for the provision of

telecommunication and postal services and for the
use of the radio frequency spectrum,

— training in the field of telecommunications and postal

services for operations in market conditions .

Article 59

Financial services

Cooperation shall in particular aim at facilitating the
involvement of the Republic of Kazakhstan in universally
accepted systems of mutual settlements . Technical
assistance shall focus on :

— the development of banking and financial services,

the development of a common market of credit
resources, the involvement of the Republic of
Kazakhstan in universally accepted systems of mutual
settlements,

— the development of the fiscal system, fiscal insti ­

tutions in the Republic of Kazakhstan and the
exchange of experience and personnel training by
fiscal matters,

— the development of insurance services, which would,

inter alia, create a favourable framework for
Community companies ' participation in the estab ­
lishment of joint ventures in the insurance sector in
the Republic of Kazakhstan, as well as the devel ­
opment of export credit insurance .

This cooperation shall in particular contribute to foster
the development of relations between the Republic of
Kazakhstan and the EC Member States in the financial

services sector .

16 . 11 . 94 Official Journal of the European Communities No C 319 / 21

Article 60

Money laundering

— planning and management of the restructuring

programmes,

1 . The Parties agree on the necessity of making — encouragement of local employment development,
efforts and cooperating in order to prevent the use of
their financial systems for laundering of proceeds from
criminal activities in general and drug offences in — exchange of information on the programmes
particular . flexible employment, including those stimulating

— exchange of information on the programmes of

flexible employment, including those stimulating self ­
employment and promoting entrepreneurship .

2 . Cooperation in this area shall include administrative
and technical assistance with the purpose of establishing
suitable standards against money laundering equivalent
to those adopted by the Community and international
fora in this field, including the Financial Action Task
Force ( FATF ).

Article 61

Regional development

1 . The Parties shall strengthen cooperation on
regional development and land-use planning .

2 . To this end, they shall encourage exchange of
information by national, regional and local authorities
on regional and land-use planning policy and on
methods of formulation of regional policies with special
emphasis on the development of disadvantaged areas .

They shall also encourage direct contacts between the
respective regions and public organizations responsible
for regional development planning with the aim, inter

alia, to exchange methods and ways of fostering regional
development .

3 . The Parties shall pay special attention to coop ­
eration in the sphere of social protection which, inter
alia, shall include cooperation in planning and
implementing social protection reforms in the Republic
of Kazakhstan .

These reforms shall aim to develop in the Republic of
Kazakhstan methods of protection intrinsic to market
economies and shall comprise all directions of social
protection .

Article 63

Tourism

The Parties shall increase and develop cooperation
between them, which shall include :

— facilitating the tourist trade,

— increasing the flow of information,
Article 62

Social cooperation

1 . With regard to health and safety, the Parties shall
develop cooperation between them with the aim of
improving the level of protection of the health and safety
of workers .

— transferring know-how,

. — studying the opportunities for joint operations,

— cooperation between official tourism bodies,
The cooperation shall include notably :

— education and training on health and safety issues — training for tourism development .

with specific attention to high risk sectors of activity,

— development and promotion of preventive measures

to combat work related diseases and other work

related ailments,

— prevention of major-accident hazards and the
management of toxic chemicals,

— research to develop the knowledge base in relation to

working environment and the health and safety of
workers .

2 . With regard to employment, the cooperation shall
include notably technical assistance to :

— optimization of the labour market,

— modernization of the job-finding and consulting

services,

Article 64

Small and medium-sized enterprises

1 . The Parties shall aim to develop and strengthen
small and medium-sized enterprises and their
associations and cooperation between SMEs in the
Community and the Republic of Kazakhstan .

2 . Cooperation shall include technical assistance, in
particular in the following areas :

— the development of a legislative framework for
SMEs,

No C 319 / 22 Official Journal of the European Communities 16 . 11 . 94

— the development of an appropriate infrastructure ( an

agency to support SMEs, communications, assistance
to the creation of a fund for SMEs ),

— the development of technology parks .

Article 65

Information and communication

The Parties shall support the development of modern
methods of information handling, including the media,
and stimulate the effective mutual exchange of
information . Priority shall be given to programmes aimed
at providing the general public with basic information
about the Community and the Republic of Kazakhstan,
including, where possible, access to databases, in full
respect of intellectual property rights .

Article 66

Consumer protection

— the support in the introduction of modern customs

information systems,

— the organization of seminars and training periods .

Technical assistance shall be provided where necessary .

3 . Without prejudice to further cooperation foreseen
in this agreement and in particular Article 70 the mutual
assistance between administrative authorities in customs
matters of the Parties shall take place in accordance with
the provisions of the Protocol .

Article 68

Statistical cooperation

Cooperation in this area shall have as its aim the devel ­
opment of an efficient statistical system to provide the
reliable statistics needed to support and monitor the
process of economic reform and contribute to the devel ­
opment of private enterprise in the Republic of
Kazakhstan .

The Parties will enter into close cooperation aimed at
achieving compatibility between their systems of Kazakhstan .
consumer protection . This cooperation may include the
exchange of information on legislative work and institu ­ The Parties, in particular, shall
tional reform, the establishment of permanent systems of following fields :
mutual information on dangerous products, the
improvement of information provided to consumers
especially on prices, characteristics of products and — adaptation of the Kazakh statistical
services offered, the development of exchanges between national methods, standards and
the consumer interest representatives, and increasing the
compatibility of consumer protection policies, and the — exchange of statistical information,
organization of seminars and training periods .

The Parties, in particular, shall cooperate in the
following fields :

— adaptation of the Kazakh statistical system to inter ­

national methods, standards and classification,

Article 67

Customs

1 . The aim of cooperation shall be to guarantee
compliance with all the provisions scheduled for
adoption in connection with trade and fair trade and to
achieve the approximation of customs system to that of
the Community .

2 . Cooperation shall include the following in
particular :

— the exchange of information,

— the improvement of working methods,

— the introduction of the combined nomenclature and

the single administrative document,

— the interconnection between the transit systems of the

Community and the Republic of Kazakhstan,

— the simplification of inspections and formalities in

respect of the carriage of goods,

— provision of necessary statistical macro - and micro ­

economic information to implement and manage
economic reforms .

To this end the Community shall contribute through
rendering technical assistance to the Republic of
Kazakhstan .

Article 69

Economics

The Parties shall facilitate the process of economic
reform and the coordination of economic policies by
cooperating to improve understanding of the funda ­
mentals of their respective economies and the design and
implementation of economic policy in market economies .
To this end, the Parties shall exchange information on
macro-economic performance and prospects .

The Community shall provide technical assistance as to :

— assist the Republic of Kazakhstan in the process of

economic reform by providing expert advisory and
technical assistance,

16 . 11 . 94 Official Journal of the European Communities No C 319 / 23

— encourage cooperation among economists in order to

expedite the transfer of know-how for the drafting of
economic policies, and provide for wide dissemi ­
nation of policy-relevant research .

Article 70

— training of personnel and development of research

infrastructures,

— elaboration of mutually acceptable measures aimed at

impeding illegal activities .

Drugs TITLE VII

Within the framework of their respective powers and
competences the Parties shall cooperate in increasing the
effectiveness and efficiency of policies and measures to
counter the illicit production, supply and traffic of
narcotic drugs and psychotropic substances, including
the prevention of diversion of precursor chemicals, as
well as in promoting drug demand prevention and
reduction . The cooperation in this area shall be based on
mutual consultation and close coordination between the

Parties over the objectives and measures on the various
drug-related fields .

CULTURAL COOPERATION

Article 72

The Parties undertake to promote, encourage and
facilitate cultural cooperation . Where appropriate, the
Community 's cultural cooperation programmes or those
of one or more Member States may be the subject of
cooperation and further activities of mutual interest may
be developed .

Article 71 TITLE VIII

Cooperation on prevention of illegal activities

The Parties shall establish cooperation aimed at
preventing illegal activities such as :

— illegal immigration and illegal presence of physical

persons of their nationality on their respective terri ­
tories, taking into account the principle and practice
of readmission,

— illegal activities in the sphere of economics, including

corruption,

— illegal transactions of various goods, including
industrial waste,

- — counterfeiting,

— the illicit traffic of narcotic drugs, psychotropic

substances and arms .

The cooperation in the abovementioned areas will be
based on mutual consultations and close interactions and

will provide technical and administrative assistance,
including :

FINANCIAL COOPERATION

Article 73

In order to achieve the objectives of this Agreement and
in accordance with Articles 74, 75 and 76 the Republic
of Kazakhstan shall benefit from temporary financial
assistance from the Community by way of technical
assistance in the form of grants to accelerate the
economic transformation of the Republic of Kazakhstan .

Article 74

This financial assistance shall be covered within the
framework of Tacis as foreseen in the Community 's
relevant Council regulation .

Article 75

The objectives and the areas of the Community 's
financial assistance shall be laid down in an indicative
programme reflecting established priorities to be agreed
between the two Parties taking into account the Republic
of Kazakhstan 's needs, sectoral absorption capacities and
progress with reform . The Parties shall inform the Coop ­
eration Council thereof .

Article 76

— drafting of national legislation in the sphere of

— In order to permit optimum use of the resources

preventing illegal activities, available, the Parties shall ensure that Community

technical assistance contributions are made in close coor ­

— creation of information centres, dination with those from other sources such as the

Member States, other countries, and international organ ­
izations such as the International Bank for Recon ­
— increasing the efficiency of institutions engaged in struction and Development and the European Bank for

preventing illegal activities, Reconstruction and Development .

preventing illegal activities,

— creation of information centres,

preventing illegal activities,

No C 319 / 24 Official Journal of the European Communities 16 . 11 . 94

TITLE IX Article 81

INSTITUTIONAL, GENERAL AND FINAL PROVISIONS

Article 77

A Cooperation Council is hereby established which shall
supervise the implementation of this Agreement . It shall
meet at ministerial level once a year . It shall examine any
major issues arising within the framework of the
Agreement and any other bilateral or international issues
of mutual interest for the purpose of attaining the
objectives of this Agreement . The Cooperation Council
may also make appropriate recommendations, by
agreement between the two Parties .

When examining any issue arising within the framework
of this Agreement in relation to a provision referring to
an Article of the GATT, the Cooperation Council shall
take into account to the greatest extent possible the
interpretation that is generally given to the Article of the
GATT in question by the Contracting Parties to the
General Agreement .

Article 82

. The Cooperation Council A established Parliamentary . It shall Cooperation be a forum for Committee Members is of hereby the
recommendations, by

Kazakh Parliament and the European Parliament to

two Parties . meet and exchange views . It shall meet at intervals which

it shall itself determine .

Article 78

1 . The Cooperation Council shall consist of the
members of the Council of the European Communities
and members of the Commission of the European
Communities, on the one hand, and of members of the
Government of the Republic of Kazakhstan, on the
other .

2 . The Cooperation Council shall establish its rules of
procedure .

Article 83

1 . The Parliamentary Cooperation Committee shall
consist of members of the European Parliament, on the
one hand, and of members of the Kazakh Parliament, on
the other .

2 . The Parliamentary Cooperation Committee shall
establish its rules of procedure .

3 . The Parliamentary Cooperation Committee shall be
presided in turn by the European Parliament and the
Kazakh Parliament respectively, in accordance with the
provisions to be laid down in its rules of procedure .

3 . The office of President of the Cooperation Council Kazakh Parliament respectively,
shall be held alternately by a representative of the provisions to be laid down in its
Community and by a member of the Government of the
Republic of Kazakhstan . Article 84

Article 79 The Parliamentary Cooperation Committee may request
relevant information regarding the implementation of

Council shall be assisted in the this Agreement from the Cooperation Council, which
by a Cooperation Committee shall then supply the Committee with the requested

information .

1 . The Cooperation Council shall be assisted in the
performance of its duties by a Cooperation Committee
composed of representatives of the members of the
Council of the European Communities and of members
of the Commission of the European Communities on the
one hand and of representatives of the Government of
the Republic of Kazakhstan on the other, normally at
senior civil servant level . The office of president of the
Cooperation Committee shall be held alternately by the
Community and by the Republic of Kazakhstan .

In its rules of procedure the Cooperation Council shall
determine the duties of the Cooperation Committee,
which shall include the preparation of meetings of the

Cooperation Council, and how the Committee shall
function .

2 . The Cooperation Council may delegate any of its
powers to the Cooperation Committee, which will ensure
continuity between meetings of the Cooperation Council .

Article 80

The Cooperation Council may decide to set up any other
special committee or body that can assist it in carrying
out its duties and shall determine the composition and
duties of such committees or bodies and how they shall
function .

The Parliamentary Cooperation Committee shall be
informed of the recommendations of the Cooperation
Council .

The Parliamentary Cooperation Committee may make
recommendations to the Cooperation Council .

Article 85

1 . Within the scope of this Agreement, each Party
undertakes to ensure that natural and legal persons of
the other Party have access free of discrimination in
relation to its own nationals to the competent courts and
administrative organs of the Parties to defend their indi ­
vidual rights and their property rights, including those
concerning intellectual, industrial and commercial

property .

2 . Within the limits of their respective powers, the
Parties :

— shall encourage the adoption of arbitration for the

settlement of disputes arising out of commercial and
cooperation transactions concluded by economic
operators of the Community and those of the
Republic of Kazakhstan,

16 . 11 . 94 Official Journal of the European Communities No C 319 / 25

— agree that where a dispute is submitted to arbitration,

each party to the dispute may, except where the rules
of the arbitration centre chosen by the parties provide
otherwise, choose its own arbitrator, irrespective of
his nationality, and that the presiding third arbitrator
or the sole arbitrator may be a citizen of a third
State,

— will recommend their economic operators to choose

by mutual consent the law applicable to their

contracts,

give rise to any discrimination between the Member
States, their nationals or their companies or firms,

— the arrangements applied by the Community in

respect of the Republic of Kazakhstan shall not give
rise to any discrimination between Kazakh nationals,
or its companies or firms .

2 . The provisions of paragraph 1 are without
prejudice to the right of the Parties to apply the relevant
provisions of their fiscal legislation to tax payers who are
not in identical situations as regards their place of
residence .

— shall encourage recourse to the arbitration rules elab ­
Article 88

orated by the United Nations Commission on Inter ­
national Trade Law ( Uncitral ) and to arbitration by
any centre of a State signatory to the Convention on
Recognition and Enforcement of Foreign Arbitral
Awards done at New York on 10 June 1958 .

1 . Each of the two Parties may refer to the Coop ­
eration Council any dispute relating to the application or
interpretation of this Agreement .

2 . The Cooperation Council may settle the dispute by
means of a recommendation .

3 . In the event of it not being possible to settle the
dispute in accordance with paragraph 2 of this Article,
either Party may notify the other of the appointment of,
a conciliator ; the other Party must then appoint a second
conciliator within two months . For the application of this
procedure, the Community and the Member States shall
be deemed to be one Party to the dispute .

The Cooperation Council shall appoint a third
conciliator .

The conciliator 's recommendations shall be taken by

majority vote . Such recommendations shall not be
binding upon the Parties .

Article 89

The Parties agree to consult promptly through appro ­
priate channels at the request of either Party to discuss
any matter concerning the interpretation or implemen ­
tation of this Agreement and other relevant aspects of
the relations between the Parties .

The provisions of this Article shall in no way affect and

are without prejudice to Articles 13, 88 and 94 .

Article 90

Treatment granted to the Republic of Kazakhstan
hereunder shall in no case be more favourable than that
granted by the Member States to each other .

Article 86

Nothing in the Agreement shall prevent a Party from
taking any measures :

( a ) which it considers necessary to prevent the disclosure

of information contrary to its essential security
interests ;

( b ) which relate to the production of, or trade in arms,

munitions or war materials or to research, devel ­
opment or production indispensable for defence
purposes, provided that such measures do not impair
the conditions of competition in respect of products
not intended for specifically military purposes ;

( c ) which it considers essential to its own security in the

event of serious internal disturbances affecting the
maintenance of law and order, in time of war or
serious international tension constituting threat of
war or in order to carry out obligations it has

accepted for the purpose of maintaining peace and
international security ;

( d ) which it considers necessary to respect its inter ­

national obligations and commitments in the control
of dual use industrial goods and technology .

Article 87

Article 91
1 . In the fields covered by this Agreement and without
prejudice to any special provisions contained therein : For the purposes of this

— the arrangements applied by the Republic of
Kazakhstan in respect of the Community shall not

For the purposes of this Agreement, the term ' Parties '
shall mean the Republic of Kazakhstan on the one part,
and the Community, or the Member States, or the
Community and the Member States, in accordance with
their respective powers, on the other part .

No C 319 / 26 Official Journal of the European Communities 16 . 11 . 94

Article 92 Article 97

In so far as matters covered by this Agreement are This Agreement sljall apply, on the one hand, to the
covered by the Energy Charter Treaty and Protocols territories in which the Treaties establishing the
thereto, such Treaty and Protocols shall upon entry into European Economic Community, the European Atomic
force apply to such matters but only to the extent that Energy Community and the European Coal and Steel
such application is provided for therein . Community are applied and under the conditions laid

down in those Treaties and, on the other hand, to the
Article 93 territory of the Republic of Kazakhstan .

This Agreement is concluded for an initial period of 10
years after which time the Agreement shall be auto ­ Article 98
matically renewed year by year provided that neither The Secretary-General of the Council of the European
Party gives the other Party written notice of
denunciation of the Agreement six months before it Union shall be the depositary of this Agreement .
expires .

Article 99

Article 94
This Agreement is drawn up in duplicate in the Danish,

1 . The Parties shall take any general or specific Dutch, English, French, German, Italian, Spanish,
measures required to fulfil their obligations pursuant to Greek, Portuguese and Kazakh languages, each of these
the Agreement . They shall see to it that the objectives set texts being equally authentic .
out in the Agreement are attained .

2 . If either Party considers that the other Party has
failed to fulfil an obligation pursuant to the Agreement,
it may take appropriate measures . Before so doing,
except in cases of special urgency, it shall supply the
Cooperation Council with all relevant information
required for a thorough examination of the situation
with a view to seeking a solution acceptable to the

Parties .

In the selection of these measures, priority must be given
to those which least disturb the functioning of the
Agreement . These measures shall be notified immediately
to the Cooperation Council if the other Party so

requests .

Article 95

Annexes I, II and III together with the Protocol shall

form an integral part of this Agreement .

Article 100

This Agreement will be approved by the Parties in
accordance with their own procedures .

This Agreement shall enter into force on the first day of
the second month following the date on which the
Parties notify each other that the procedures referred to
above have been completed .

Upon its entry into force, and as far as relations between
the Republic of Kazakhstan and the Community are
concerned, this Agreement shall replace the Agreement
between the European Economic Community, the
European Atomic Energy Community and the Union of
Soviet Socialist Republics on trade and economic and
commercial cooperation signed in Brussels on 18
December 1989 .

Article 96 Article 101

This Agreement shall not, until equivalent rights for indi ­
viduals and economic operators have been achieved

hereunder, affect rights assured to them through existing
Agreements binding one or more Member States on the
one hand and the Republic of Kazakhstan on the other
except in areas falling within Community competence
and without prejudice to the obligations of Member
States resulting from this Agreement in areas falling
within their competence .

In the event that, pending the completion of the
procedures necessary for the entry into force of this
Agreement, the provisions of certain parts of this
Agreement are put into effect in 1994 by means of an
Interim Agreement between the Community and the
Republic of Kazakhstan, the Contracting Parties agree
that, in such circumstances, the term ' date of entry into
force of the Agreement ' shall mean the date of entry into
force of the Interim Agreement .

16 . 11 . 94 Official Journal of the European Communities No C 319 / 27

ANNEX I

Indicative list of advantages granted by the Republic of Kazakhstan to the Independent States in accordance

with Article 8 ( 3 )

1 . Armenia, Belarus, Estonia, Georgia, Lithuania, Moldova, Ukraine, Turkmenistan, Russia :

No import duties are implemented .

No export duties are implemented as regards goods delivered under clearing and inter-State agreements
within the volumes stipulated in these agreements .

No VAT is applied on export and import . No excise is applied on export .

All Independent States :

Export quotas for deliveries of products under annual inter-State trade and cooperation agreements are
opened in the same way as for deliveries for State needs .

2 . Armenia, Belarus, Estonia, Georgia, Lithuania, Moldova, Ukraine, Turkmenistan :

Payments could be made in roubles .

Russia :

Payments could be made in roubles or tenge .

All Independent States :

Special system of non-commercial operations, including payments resulting from these operations .

3 . All Independent States :

Special system of current payments .

4 . All Independent States :

Special price system in trade with some raw materials and semi-finished products .

5 . All Independent States :

Special conditions of transit .

6 . All Independent States :

Special conditions of customs procedures .

No C 319 / 28 Official Journal of the European Communities 16 . 11 . 94

ANNEX II

Community reservations in accordance with Article 23 ( 1 ) ( b )

Mining

In some Member States, a concession may be required for mining and mineral rights for non-EC
controlled companies .

Fishing

Access to and use of the biological resources and fishing grounds situated in the maritime waters coming
under the sovereignty or within the jurisdiction of Member States of the Community is restricted to fishing
vessels flying the flag of a Community Member State and registered in Community territory unless

otherwise provided for .

Real estate purchase

In some Member States, the purchase of real estate by non-EC companies is subject to restrictions .

Audiovisual services including radio

National treatment concerning production and distribution, including broadcasting and other forms of
transmission to the public, may be reserved to audiovisual works meeting certain origin criteria .

Telecommunications services including mobile and satellite services

Reserved services

In some Member States market access concerning complementary services and infrastructures is restricted .

Professional services

Services reserved to natural persons nationals of Member States . Under certain conditions those persons
may create companies .

Agriculture

In some Member States national treatment is not applicable to non-EC controlled companies which wish to
undertake an agricultural enterprise . The acquisition of vineyards by non-EC controlled companies is
subject to notification, or, as necessary, authorization .

News agency services

In some Member States limitations of foreign participation in publishing companies and broadcasting
companies .

16 . 11 . 94 Official Journal of the European Communities No C 319 / 29

ANNEX III

Intellectual, industrial and commercial property rights ( IPR ) conventions ( Article 43 )

1 . Article 43 ( 2 ) concerns the following multilateral conventions :

— Berne Convention for the Protection of Literary and Artistic Works ( Paris Act, 1971 ),

— International Convention for the Protection of Performers, Producers of Phonograms and Broad ­

casting Organizations ( Rome, 1961 ),

— Protocol relating to the Madrid Agreement concerning the International Registration of Marks

( Madrid, 1989 ),

— Nice Agreement concerning the International Classification of Goods and Services for the purposes

of the Registration of Marks ( Geneva 1977, and amended in 1979 ),

— Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the

purposes of Patent Procedures ( 1977, amended in 1980 );

— International Convention for the Protection of New Varieties of Plants ( UPOV ) ( Geneva Act,

1991 ).

2 . The Cooperation Council may recommend that Article 43 ( 2 ) shall apply to other multilateral

conventions . If problems in the area of intellectual, industrial and commercial property affecting trading
conditions were to occur, urgent consultations will be undertaken, at the request of either party, with a
view to reaching mutually satisfactory solutions .

3 . The Parties confirm the importance they attach to the obligations arising from the following multi ­

lateral conventions ;

— Paris Convention for the Protection of Industrial Property ( Stockholm Act, 1967, and amended in

1979 );

— Madrid Agreement concerning the International Registration of Marks ( Stockholm Act, 1967, and

amended in 1979 );

— Patent Cooperation Treaty ( Washington, 1970, amended in 1979 and modified in 1984 ).

4 . From entry into force of this Agreement, the Republic of Kazakhstan shall grant to Community

companies and nationals, in respect of the recognition and protection of intellectual, industrial and
commercial property, treatment no less favourable than that granted by it to any third country under
bilateral agreements .

5 . The provisions of paragraph 4 shall not apply to advantages granted by the Republic of Kazakhstan to

any third country on an effective reciprocal basis and to advantages granted by the Republic of
Kazakhstan to another country of the former USSR .

No C 319 / 30 Official Journal of the European Communities 16 . 11 . 94

PROTOCOL

on mutual assistance between administrative authorities in customs matters

Article 1

Definitions

For the purposes of this Protocol :

( a ) ' customs legislation ' shall mean provisions applicable

in the territories of the Parties governing the import,
export, transit of goods and their placing under any
customs procedure, including measures of
prohibition, restriction and control and adopted by
the said Parties ;

( b ) ' customs duties ' shall mean all duties, taxes, fees or

any other charges which are levied and collected in
the territories of the Parties, in application of
customs legislation, but not including fees and
charges which are limited in amount to the
approximate costs of services rendered ;

( c ) ' applicant authority ', shall mean a competent admin ­

istrative authority which has been appointed by a
Party for this purpose and which makes a request for
assistance in customs matters ;

( d ) ' requested authority ', shall mean a competent admin ­

istrative authority which has been appointed by a
Party for this purpose and which receives a request
for assistance in customs matters ;

( e ) ' contravention ', shall mean any violation of the

customs legislation as well as any attempted violation
of such legislation .

Article 2

Scope

1 . The Parties shall assist each other, within their
competences, in the manner and under the conditions
laid down in this Protocol, in ensuring that customs
legislation is correctly applied, in particular by the
prevention, detection and investigation of contraventions
of this legislation .

2 . Assistance, in customs matters, as provided for in
this Protocol, applies to any administrative authority of
the Parties which is competent for the application of this
Protocol . It shall not prejudice the rules governing
mutual assistance in criminal matters . Nor shall it cover
information obtained under powers exercised at the
request of the judicial authority, unless those authorities

so agree .

regarding operations noted or planned which contravene
or would contravene such legislation .

2 . At the request of the applicant authority, the
requested authority shall inform it whether goods
exported from the territory of one of the Parties have
been properly imported into the territory of the other
Party, specifying, where appropriate, the customs
procedure applied to the goods .

3 . At the request of the applicant authority, the
requested authority shall take the necessary steps to
ensure that a surveillance is kept on :

( a ) natural or legal persons of whom there are
reasonable grounds for believing that they are
contravening or have contravened customs legis ­
lation ;

( b ) places where stocks of goods have been assembled in

such a way that there are reasonable grounds for
supposing that they are intended as supplies for
operations contrary to the legislation of the other
Party ;

( c ) movements of goods notified as possibly giving rise

to substantial contraventions of customs legislation ;

( d ) means of transport for which there are reasonable

grounds for believing that they have been, are or
may be used in the contravening of customs legis ­
lation .

Article 4

Spontaneous assistance

The Parties shall provide each other, in accordance with
their laws, rules and other legal instruments, with
assistance without prior request if they consider that to
be necessary for the correct application of customs legis ­
lation, particularly when they obtain information
pertaining to :

— operations which have contravened, contravene or

would contravene such legislation and which may be
of interest to other Parties,

— new means or methods employed in realizing such

operations,

— goods known to be subject to substantial contra ­

vention of customs legislation .

Article 3

Article 5

Assistance on request

Delivery / Notification
1 . At the request of the applicant authority, the
requested authority shall furnish it with all relevant At the request of the applicant
information to enable it to ensure that customs legis ­ authority shall in accordance with its
lation is correctly applied, including information necessary measures

At the request of the applicant authority, the requested

authority shall in accordance with its legislation take all

necessary measures

16 . 11 . 94 Official Journal of the European Communities No C 319 / 31

— in order to deliver all documents,

— to notify all decisions,

falling within the scope of this Protocol to an addressee,
residing or established in its territory . In such a case
Article 6 ( 3 ) is applicable .

Article 6

Form and substance of requests for assistance

1 . Requests pursuant to this Protocol shall be made in
writing . Documents necessary for the execution of such
requests shall accompany the request . When required
because of the urgency of the situation, oral requests
may be accepted, but must be confirmed in writing
immediately .

2 . Requests pursuant to paragraph 1 of this Article
shall include the following information :

3 . Duly authorized officials of a Party may, with the
agreement of the other Party involved and within the
conditions laid down by the latter, obtain from the
offices of the requested authority or other authority for
which the requested authority is responsible, information
relating to the contravention of customs legislation
which the applicant authority needs for the purposes of
this Protocol .

4 . Officials of a Party may, with the agreement of the
other Party involved and within the conditions laid down
by the latter, be present at enquiries carried out in the
latter 's territory .

Article 8

Form in which information is to be communicated

1 . The requested authority shall communicate results
of enquiries to the applicant authority in the form of
documents, certified copies of documents, reports and
the like .

( a ) the applicant authority making the request ; 2 . The documents provided for in paragraph 1 may be

( b ) the measure requested ; replaced by computerized information produced in any
form for the same purpose .

( c ) the object of and the reason for the request ;

( d ) the laws, rules and other legal elements involved ;

( e ) indications as exact and comprehensive as possible

on the natural or legal persons being the target of
the investigations ;

( f ) a summary of the relevant facts and of the enquiries

already carried out, except in cases provided for in
Article 5 .

3 . Requests shall be submitted in an official language
of the requested authority or in a language acceptable to
such authority .

4 . If a request does not meet the formal requirements,
its correction or completion may be demanded ; the
ordering of precautionary measures may, however, take
place .

Article 7

Execution of requests

1 . In order to comply with a request for assistance,
the requested authority or, when the latter can not act
on its own, the administrative department to which the
request has been addressed by this authority, shall
proceed, within its competence and available resources,
as though it were acting on its own account or at the
request of other authorities of that same Party, by
supplying information already possessed, by carrying out
appropriate enquiries or by arranging for them to be
carried out .

2 . Requests for assistance will be executed in
accordance with the laws, rules and other legal
instruments of the requested Party .

Article 9

Exceptions to the obligation to provide assistance

1 . The Parties may refuse to give assistance as
provided for in this Protocol, where to do so would :

( a ) be likely to prejudice sovereignty, public policy,

security or other essential interests ;

or

( b ) involve currency or tax regulations other than regu ­

lations concerning customs duties ;

or

( c ) violate an industrial, commercial or professional

secret .

2 . Where the applicant authority asks for assistance
which it would itself be unable to provide if so asked, it
shall draw attention to that fact in its request . It shall
then be left to the requested authority to decide how to
respond to such a request .

3 . If assistance is withheld or denied, the decision and
the reasons therefore must be notified to the applicant
authority without delay .

Article 10

Obligation to observe confidentiality

1 . Any information communicated in whatsoever form
pursuant to this Protocol shall be of a confidential
nature . It shall be covered by the obligation of official
secrecy and shall enjoy the protection extended to like
information under the relevant laws of the Party which
received it and the corresponding provisions applying to
the Community authorities .

No C 319 / 32 Official Journal of the European Communities 16 . 11 . 94

2 . Nominative data shall not be transmitted whenever
there are reasonable grounds to believe that the transfer
or the use made of the date transmitted would be
contrary to the basic legal principles of one of the
Parties, and, in particular, if the person concerned would
suffer undue disadvantages . Upon request, the receiving
Party shall inform the furnishing Party of the use made
of the information supplied and of the results achieved .

3 . Nominative data may only be transmitted to
customs authorities and, in the case of need for pros ­
ecution purposes, to public prosecution and judicial
authorities . Other persons or authorities may obtain such
information only upon previous authorization by the
furnishing authority .

4 . The furnishing Party shall verify the accuracy of
the information to be transferred . Whenever it appears
that the information supplied was inaccurate or to be
deleted, the receiving Party shall be notified without
delay . The latter shall be obliged to carry out the
correction or deletion .

5 . Without prejudice to cases of prevailing public
interest, the person concerned may obtain, upon request,
information on the data stores and the purpose of this

storage .

Article 11

Use of information

1 . Information obtained shall be used solely for the
purposes of this Protocol and may be used within each
Party for other purposes only with the prior written
consent of the administrative authority which furnished
the information and shall be subject to any restrictions
laid down by that authority .

2 . Paragraph 1 shall not impede the use of
information in any judicial or administrative proceedings
subsequently instituted for failure to comply with
customs legislation .

3 . The Parties may, in their records of evidence,
reports and testimonies and in proceedings and charges
brought before the courts, use as evidence information
obtained and documents consulted in accordance with
the provisions of this Protocol .

Article 12

Experts and witnesses

An official of a requested authority may be authorized to

appear, within the limitations of the authorization
granted, as expert or witness in judicial or administrative

proceedings regarding the matters covered by this
Protocol in the jurisdiction of another Party, and
produce such objects, documents or authenticated copies
thereof, as may be needed for the proceedings . The
request for an appearance must indicate specifically on
what matters and by virtue of what title or qualification
the official will be questioned .

Article 13

Assistance expenses

The Parties shall waive all claims on each other for the
reimbursement of expenses incurred pursuant to this
Protocol, except, as appropriate, for expenses to experts
and witnesses and to interpreters and translators who are
not dependent upon public services .

Article 14

Implementation

1 . The management of this Protocol shall be entrusted
to the central customs authorities of the Republic of
Kazakhstan on the one hand and the competent services
of the Commission of the European Communities and,
where appropriate, the customs authorities of the
Member States of the European Union on the other .
They shall decide on all practical measures and
arrangements necessary for its application, taking into
consideration rules in the field of data protection . They
may recommend to the competent bodies amendments
which they consider should be made to this Protocol .

2 . The Parties shall consult each other and
subsequently keep each other informed of the detailed
rules of implementation which are adopted in accordance
with the provisions of this Protocol .

Article 15

Complementary

1 . This Protocol shall complement and not impede the
application of any agreements on mutual assistance
which have been concluded or may be concluded
between individual or several Member States of the
European Union and the Republic of Kazakhstan . Nor
shall it preclude more extensive mutual assistance
granted pursuant to such agreements .

2 . Without prejudice to Article 11, these agreements
do not prejudice Community provisions governing the
communication between the competent services of the
Commission and the customs authorities of the Member
States of any information obtained in customs matters
which could be of Community interest .

16 . 11 . 94 Official Journal of the European Communities No C 319 / 33

Joint Declaration concerning Article 13

The Community and the Republic of Kazakhstan declare that the text of the safeguard clause
does not grant GATT safeguard treatment .

Joint Declaration concerning Article 23

Without prejudice to the provisions of Articles 38 and 41, the Parties agree that the words ' in

conformity with their legislation and regulations ' mentioned in Article 23 ( 1 ) and ( 2 ) mean that
each Party may regulate the establishment and operation of companies on its territory,
provided that these regulations do not create for the establishment and operations of
companies of the other Party any reservations to the treatment no less favourable than that
accorded to their own companies or to companies, branches or subsidiaries of companies of
any third country .

Joint Declaration concerning the notion of ' Control ' in Articles 25 ( b ) and 37

1 . The Parties confirm their mutual understanding that the question of control shall depend on

the factual circumstances of the particular case .

2 . A company shall, for example, be considered as being ' controlled ' by another company, and

thus a subsidiary of such other company if :

— the other company holds directly or indirectly a majority of the voting rights,

or

— the other company has the right to appoint or dismiss a majority of the administrative

organ, of the management organ or of the supervisory organ and is at the same time a
shareholder or member of the subsidiary .

3 . Both Parties consider the criteria in paragraph 2 to be non-exhaustive .

Joint Declaration concerning Article 43

The Parties agree that for the purpose of the Agreement, intellectual, industrial and
commercial property includes in particular copyright, including the copyright in computer
programs, and neighbouring rights, the rights relating to patents, industrial designs,
geographical indications, including appellations of origin, trademarks and service marks, topo ­
graphies of integrated circuits as well as protection against unfair competition as referred to in
Article 10 bis of the Paris Convention for the protection of Industrial Property and protection
of undisclosed information on know-how .

Joint Declaration concerning Article 94

The Parties agree, for the purpose of its correct interpretation and its practical application, that
the term ' cases of special urgency ' included in Article 94 of the Agreement mean cases of
material breach of the Agreement by one of the Parties . A material breach of the Agreement
consists in :

( a ) repudiation of the Agreement not sanctioned by the general rules of international law ;

or

( b ) violation of the essential elements of the Agreement set out in Article 2 .