Legislative News

This CLIENT UPDATE includes amendments to the legislation of the Republic of Kazakhstan and appointments in April 2010.

The following 120 legislative acts were adopted in April 2010:

• Laws – 10;

• Decrees of the President of the Republic of Kazakhstan – 3

• Resolutions of the Government of the Republic of Kazakhstan – 46 (6 of which are not effective);

• Other regulatory legal acts.

Most of these regulatory legal acts are concerning public sector, but among them there are some which may attract your attention and affect your business in Kazakhstan in a certain way.

We would like to draw your attention to the following regulatory legal acts:

INTERNATIONAL LAW

Law of the Republic of Kazakhstan dated 8 April 2010 ¹ 268-IV «On Ratification of Agreement on Procedure of Control over Correctness of Determination of Customs Cost of Goods Carried Across the Customs Border of the Customs

In accordance with this Law Kazakhstan ratified Agreement on Procedure of Control over Correctness of Determination of Customs Cost of Goods Carried Across the Customs Border of the Customs Union dated 12.12.2008 (Moscow).

In accordance with the abovementioned Agreement control over customs cost of goods shall be carried out by customs body of the state of each Party of the Agreement during customs clearance of goods as well as after release of goods.

At that provisions of the Agreement shall not be applied to goods carried across the customs border of the Customs Union by physical persons for personal or other needs not related to entrepreneurial activity.

In the process of control customs bodies can conduct additional inspection in case if there are factors showing that declared cost has not been properly confirmed. Correction of customs cost shall be allowed in accordance with the procedure specified in the Agreement.

Law of the Republic of Kazakhstan dated 9 April 2010 ¹ 269-IV «On Ratification of Agreement on Procedure of Declaring of Customs Cost of Goods Carried Across the Customs Border of the Customs Union»

In accordance with this Law Kazakhstan ratified Agreement on Procedure of Declaring of Customs Cost of Goods Carried Across the Customs Border of the Customs Union dated 12.12.2008 (Moscow).

The abovementioned Agreement establishes that declaring of customs cost of goods exported from united customs territory of the member-states of the Customs Union shall be made in accordance with legislation of the state – Party, where goods are declared.

At that declaring of customs cost of imported goods shall be made in accordance with international agreements of member-states of the Customs Union regulating customs legal relations in the Customs Union. The person determined by international agreements of member-states of the Customs Union regulating customs legal relations in the Customs Union shall be responsible for credibility of information specified in the declaration of customs cost.

Currency rate of member-state, in the territory of which customs clearance of goods is carried out, on the day of acceptance of customs declaration shall be used for determination of customs cost of imported goods.

Law of the Republic of Kazakhstan dated 9 April 2010 ¹ 270-IV «On Ratification of Agreement on Rules of Determination of Origin of Goods from Developing and the Least Developed Countries»

In accordance with this Law Kazakhstan ratified Agreement on Rules of Determination of Origin of Goods from Developing and the Least Developed Countries dated 12.12.2008 (Moscow).

In accordance with this Agreement Rules of Determination of Country of Goods Origin shall be applied to goods from developing or the least developed countries. The abovementioned Rules specify tariff preferential regime for goods produced or sufficiently processed or reprocessed in such countries. Moreover, Rules specify special cases of origin of goods, to which tariff preferential regime is also applied.

Declaration – certificate for a period of 12 months shall be issued to confirm application of the abovementioned regime with regard to the goods. Such document is not required if customs cost of goods does not exceed 5,000 US Dollars.

Resolution of the Government of the Republic of Kazakhstan dated 14 April 2010 ¹ 307 «On Amendments to Resolution of the Government of the RK dated 28.01.2000 ¹ 136»

In accordance with the abovementioned Resolution regime of stay of foreign citizens in the territory of the Republic of Kazakhstan specified by Some Issues of Legal Regulation of Stay of Foreign Citizens in the RK approved by Resolution of the Government dated 28.01.2000 was changed.

Thus, previously established period of 90 days with the right of extension for the same period of stay of foreign citizens in the territory of the Republic of Kazakhstan remains unchanged for citizens of the countries of the Customs Union. For all other foreigners this period was reduced to 30 days with a right of extension for the same period.

Resolution of the Government of the Republic of Kazakhstan dated 1 April 2010 ¹ 268 «On Amendments to Resolution of the Government of the RK dated 08.04.2008 ¹ 334»

In accordance with the abovementioned Resolution Rules of Formation and Maintenance of the Register of Goods, Works and Services Used for Conduction of Subsoil Use Operations and Their Producers have been amended including criteria of their assessment for inclusion into this register approved by Resolution of the Government of the RK dated 08.04.2008 ¹ 334.

In accordance with the abovementioned Rules formation and maintenance of Register shall be made in the state information system Register of Goods, Works and Services Used for Conduction of Subsoil Use Operations.

Maintenance of register means: (1) entering of data; (2) updating of register in case of changes of data provided by producers; (3) updating of register in case of changes of data provided by subsoil users; (4) allocation of register in the state information system. Rules also specify obligation of subsoil user to form data for register, namely (1) to register in the state information system within 30 calendar days after conclusion of the contract; 2) to submit registration form to the Competent Body within 5 working days; (3) to present annual program for procurement of goods, works and services in the abovementioned state information system.

Resolution of the Government of the Republic of Kazakhstan dated 1 April 2010 ¹ 267 «On Amendments to Resolution of the Government of the RK dated 28.11.2007 ¹ 1139» (not effective)

We would like to draw you attention to Rules of Procurement of Goods, Works and Services during Conduction of Subsoil Use Operations approved in a new wording.

Thus, newly approved Rules specify procedure for procurement of goods, works and services by means of conduction of: (1) open competitive tender; (2) request for bids; (3) by method from single source; (4) through system of electronic procurement (5) through commodity exchanges. In such a way the possibility of procurement of goods, works and services by conduction of closed competition is excluded.

Rules introduce definitions of Conditional Price, Client, Potential Supplier and Subcontractor. Qualifying requirements to potential supplier during procurement by method of open competitive tender are also specified.

Rules specify restrictions for participation of potential supplier in tender and register of bids of potential suppliers with indication of corresponding data. Procedure of documents submission for participation in the tender has been changed. Rules introduce notion Register of Goods, Works and Services where required information about method of procurement of goods, works and services is given.

Brief on the Draft Law of the Republic of Kazakhstan «On Promulgation of the Customs Code of the Republic of Kazakhstan» (March 2010)

In accordance with this Law Customs Code of the Republic of Kazakhstan will be carried into effect starting from 1 July 2010. Customs Code of the Republic of Kazakhstan shall be applied to rights and obligations that will arise on the effective date.

Legal relations in the sphere of subsoil use of the Republic of Kazakhstan emerged before entering of the Customs Code into force shall be regulated by Customs Legislation of the Republic of Kazakhstan, in accordance with which corresponding contracts have been concluded, and in the part not regulated by it, – by provisions of the Customs Code of the Republic of Kazakhstan.

APPOINTMENTS:

The following appointment were made in April 2010:

1) Mr. Nurmakhambet Kanapiyevich Abdibekov was appointed to the position of Vice-Minister of Industry and New Technologies of the Republic of Kazakhstan;

2) Mr. Berik Sailauovich Kamaliyev was appointed to the position of Vice-Minister of Industry and New Technologies of the Republic of Kazakhstan;

3) Mr. Zhanbolat Amangeldinovich Smailov was appointed to the position of Vice-Minister of Industry and New Technologies of the Republic of Kazakhstan;

4) Mr. Duisenbai Nurbayevich Turganov was appointed to the position of Vice-Minister of Industry and New Technologies of the Republic of Kazakhstan;

5) Mrs. Ainagul Erkinovna Shakirova was appointed to the position of Adviser to the Prime.

Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please seek for a specific advice in relation to any questions. Please note that Kazakhstan and Turkmenistan are emerging economies and their legislation and legal systems are in constant development. Should you have any questions or would like to discuss subjects addressed in this Client Update please contact us.