SIGNUM regularly provides Legislative/Regulatory Alerts to keep Clients informed about important laws and regulatory changes in the Republic of Kazakhstan (“RK”). This Alert includes recent developments introduced in March 2019 related to:
On 16 March 2019, the Law on the Ratification of the Agreement on Marking of Goods by Means of Identification in the Eurasian Economic Union (EAEU) entered into force.
The Agreement on marking defines the procedure by which goods will be marked with unified means of identification within the EAEU. This Agreement applies to legal entities and individual entrepreneurs engaged in the production and (or) turnover of goods under the item “Garments, clothing accessories and other products from natural fur”.
2. Trade and economic cooperation between Kazakhstan and Russia in the field of oil and oil products supply2
On 16 March 2019, the Law on Ratification of the Protocol on Amendments to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on Trade and Economic Cooperation in the Supply of Oil and Oil Products to the Republic of Kazakhstan entered into force.
Significant changes were made to Article 6 on protection of the environment and national security. The Protocol excluded Appendices 2 and 3 in relation to lists of petroleum products prohibited for export from the Russian Federation to the Republic of Kazakhstan and petroleum products prohibited for export from the Republic of Kazakhstan outside the customs territory of the Customs Union.
3. Recording of foreign trade transactions for export control purposes3
On 4 March 2019, the Order on Approving the Rules and Forms for Recording Foreign Trade Transactions for Export Control Purposes entered into force.
The rules were developed in accordance with the Law of the Republic of Kazakhstan dated 21 July 2007 “On Export Controls” and outlined the procedure for Kazakhstani participants in foreign economic activity to keep records of foreign trade transactions with products, subject to export control.
Additionally, foreign trade transactions recording form was also approved.
4. Government procurement4
On 1 March 2019, the Order on Amendment of the Rules for Implementing Government Procurement entered into force.
Major changes were made in cases when akims are appointed as chairmen of the competition commission:
Most of the other changes are of clarifying nature and bring the provisions of the Rules in line with the current legislation on government procurement.
5. Formation and maintenance of government procurement registers5
On 16 March 2019, the Order on Amending the Rules for Formation and Maintenance of Government Procurement Registers entered into force.
According to the changes, government procurement registers are divided into the following types:
In accordance with this list, the Rules in paragraphs 15 and 16 on the register of unfair participants of government procurement are mentioned in the new edition and supplemented with Chapter 7 “The procedure for formation and maintenance of the complaints register”.
6. Tenge base rate6
The National Bank of Kazakhstan retained the tenge base rate at 9.25% with a fixed interest rate with a constant interest rate band +/- 1 p.p.
Any further decisions on the tenge base rate will be made based on dynamics of actual inflation, its forecast values and the extent to which risk scenarios will be implemented. This will be announced on 15 April 2019 at 5PM (Astana time).
Information contained in this Client Update is of general nature and cannot be used as legal advice or recommendation. Please note that Kazakhstan is an emerging economy, and its legislation and legal system are in constant development. Should you have any questions or want to discuss matters addressed in this Client Update, please contact us.