Legislative News

This CLIENT UPDATE includes amendments to the legislation of the RK and key appointments in May 2010.

The following 142 regulatory legal acts were adopted in May 2010:

• Laws – 4

• Decrees of the President of the Republic of Kazakhstan – 2

• Resolutions of the Government of the Republic of Kazakhstan – 64;

• 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:

1. Resolution of the Government of the Republic of Kazakhstan dated 28 May 2010 № 487 «On Imposition of Temporary Ban on Export of Motor Gasoline, Kerosene and Gas Oils»

Resolution imposes temporary ban on export of motor gasoline (code of Foreign Economic Activity Commodity Nomenclature TS 710 11 310 0 – 2710 11 700 0), kerosene (code of Foreign Economic Activity Commodity Nomenclature TS 2710 19 210 0 – 2710 19 250 0) and gas oils (code of Foreign Economic Activity Commodity Nomenclature TS 271019 410 0 – 271019 4900) from the territory of the Republic of Kazakhstan, except for household stove oil. This temporary ban shall remain in force until 1 July 2010.

2. Resolution of the Government of the Republic of Kazakhstan dated 20 May 2010 № 454 «On Issues of the Ministry of Oil and Gas of the Republic of Kazakhstan»

In accordance with the Resolution and for the purpose of implementation of Decree of the President of the Republic of Kazakhstan dated 12 March 2010 № 936 «On Further Development of State Administration System of the Republic of Kazakhstan» Committee of State Inspection in the Oil and Gas Complex under the Ministry of Oil and Gas of the Republic of Kazakhstan was established, and Provision on Ministry of Oil and Gas of the Republic of Kazakhstan, list of organizations reporting to the Ministry of Oil and Gas of the Republic of Kazakhstan as well as changes introduced to some decisions of the Government of the Republic of Kazakhstan were approved.

In accordance with the Resolution Ministry of Oil and Gas of the Republic of Kazakhstan is a central executive body of the Republic of Kazakhstan performing formation of state policy, coordination of control process in the spheres of oil and gas industry, petrochemical industry, transportation of hydrocarbons, concluding contracts on exploration, production and integrated exploration and production of hydrocarbons on behalf of the state, monitoring and control over fulfillment of their conditions.

3. Resolution of the Government of the Republic of Kazakhstan dated 14 May 2010 № 416 «On Some Issues of the Ministry of Industry and Innovative Technologies of the Republic of Kazakhstan»

In accordance with the Resolution and for the purpose of implementation of Decree of the President of the Republic of Kazakhstan dated 12 March 2010 № 936 «On Further Development of State Administration System of the Republic of Kazakhstan» Statute of Ministry of Industry and Innovative Technologies of the Republic of Kazakhstan, list of organizations reporting to the Ministry of Industry and Innovative Technologies of the Republic of Kazakhstan as well as changes introduced to some decisions of the Government of the Republic of Kazakhstan were approved.

The following committees are specified as reporting to the Ministry of Industry and Innovative Technologies of the Republic of Kazakhstan:

• Investment Committee,

• Committee of Industry,

• Committee of Technical Regulation and Metrology,

• Committee of State Energy Supervision,

• Committee of Atomic Power,

• Committee of Geology and Subsoil Use.

As you may know, previously these committees reported to the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan. Now they report to the Ministry of Industry and Innovative Technologies of the Republic of Kazakhstan, which is a central executive body performing administration in the sphere of industry and industrial and innovative, scientific and technical development of the country, chemical industry, consumer industry, state support of investments, establishment, functioning and abolition of special economic zones; export control; technical regulation and ensuring the unity of measurements; electric power industry; mineral resources except for hydrocarbons.

4. Law of the Republic of Kazakhstan dated 4 May 2010 №274-IV «On Protection of Consumers’ Rights» (not effective)

The Law establishes legal, economic and social principles of consumers’ rights protection as well as measures on supply of consumers with safe and high quality goods (works, services). The Law will be enacted upon expiry of three months after its first official publication («Kazakhstanskaya Pravda» dated 18 May 2010 № 123).

The Law grants rights to consumers to conclude contracts on a free basis for purchase of goods (performance of goods and rendering of services), to access information in the sphere of consumers’ rights protection, to obtain information about goods (works and services) as well as seller (producer, executor), to purchase safe goods (works, services), to make free choice of goods (works, services), exchange or return goods of improper and low quality, to obtain from seller (producer, executor) documents confirming fact of purchase of goods (performance of works, rendering of services), etc.

INTERNATIONAL LAW

  1. Resolution of the Government of the Republic of Kazakhstan dated 5 May 2010 № 377 «On Draft Law of the Republic of Kazakhstan «On Ratification of Convention on Temporary Import»

Resolution submits for consideration of Majilis of the Parliament of the Republic of Kazakhstan Draft Law of the Republic of Kazakhstan «On Ratification of Convention on Temporary Import (Istanbul, 26 June 1990)».

Ratifying Convention is aimed at easing of temporary import by means of simplification and harmonization of procedures as well as adoption of standardized document types on temporary import as international customs documents together with international guarantee.

In case of adoption of this Convention procedures of import of goods to the territory of the Republic of Kazakhstan will be simplified and systemized.

DRAFT REGULATORY LEGAL ACTS

Also we would like to provide additional information about forthcoming regulatory legal acts.

  1. Resolution of the Government of the Republic of Kazakhstan dated 11 May 2010 № 404 «On Draft Law of the Republic of Kazakhstan «On Enactment of the Code of the Republic of Kazakhstan «On Customs Procedures in the Republic of Kazakhstan»

Resolution submits for consideration of Majilis of the Parliament of the Republic of Kazakhstan Draft Law of the Republic of Kazakhstan «On Enactment of the Code of the Republic of Kazakhstan «On Customs Procedures in the Republic of Kazakhstan ». In accordance with the Draft Law it is planned to carry this Code in effect starting from 1 July 2010.

Main aim of the development of this Draft Code of the Republic of Kazakhstan «On Customs Procedures in the Republic of Kazakhstan» is bringing national customs legislation to conformity with Customs Code of the Customs Union. It also regulates relations associated with movement of goods, their transportation under customs control, temporary storage, customs declaring, release and use in accordance with customs procedures, conduction of customs control, payment of customs duties, determination of country of origin of goods, etc.

Recommendations:

  1. Please note that export of motor gasoline, kerosene and gas oils from the territory of the Republic of Kazakhstan is prohibited until 1 July 2010.
  2. Subsoil Users should send their enquiries on subsoil use issues to the Ministry of Oil and Gas of the Republic of Kazakhstan instead of Ministry of Energy and Mineral Resources.
  3. Please note that some committees that previously reported to the Ministry of Energy and Mineral Resources now report to the Ministry of Industry and Innovative technologies of the Republic of Kazakhstan.
  4. Enactment of the new Law of the Republic of Kazakhstan «On Protection of Consumers’ Rights» on 18 August 2010 will substantially extend consumers’ rights upon procurement of goods in the territory of the Republic of Kazakhstan and give them opportunity to protect their rights and obligations more efficiently.
  5. Please note that ratification of the Convention on temporary Import will result in modification of customs documents as well as change of procedure of import upon temporary import of goods to the territory of the Republic of Kazakhstan.
  6. Please note that enactment of the Code of the Republic of Kazakhstan «On Customs Procedures” will result in change of rates of customs duties as well as change of customs procedures in accordance with Customs Code of the Customs Union.

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.