The fees charged by Customs for temporary storage in a Customs-operated facility are 0.04 ECU per one kilogram gross per 24 hours. (Government Resolution No. 1479, On Customs Payments Rates (Nov. 7, 1995) Appendix 21). Rates charged for warehousing by Customs-licensees are established by those licensees. Goods which may cause damage to other goods or require special storage conditions must be placed into the customs warehouses equipped for such storage.

Summary of Required Documents
In order to enter commercial goods for free circulation, the documents listed below must be submitted to Customs.

Quarantine certificate (1)

Phytosanitary certificate

Declarant's submission of documents with an electronic copy of the customs declaration;

Customs verification of documents;

Customs valuation of the goods;

Customs calculation of duties, taxes and fees due, and declarant's payment; Customs processing of currency control documents (note, however, that currency control documents may be submitted before customs clearance to avoid delays);

The Transaction Passport, which is completed by the declarant, is to be submitted for signature to the declarant’s bank or the customs body, depending upon whether the declarant is required by its contract for supply of the goods to make payment for the goods before customs clearance or after.

If payment is to be made more than 180 days after arrival of the goods, and in a sum of more than $100,000, the contract must be registered with the National Bank regardless of kind of currency (tenge or foreign).

A sample Import Transaction Passport and instructions for its completion are set out in Appendix 19.

Pre-Paid Goods

If the importer’s contract for the goods provides for payment to be made before completion of the customs processing, the importer (or a third person, if the payment will be made by that third person) is required to complete and present an Import Transaction Passport to the bank from which the importer (or the third party) intends to transfer the funds. This Passport is to be completed on the basis of the importer’s contract for purchase of the goods, a copy of which the importer must also provide to the bank. If payment for the goods is to be made by a third person, a copy of the agreement between the importer and that third person must be provided.

The bank will sign and certify by stamp the Import Transaction Passport, provide a copy of the Passport to the customs body, and notify the customs body of the amount of the payment made.

The customs body shall accept the imported goods for customs processing only upon presentation of a copy of the Import Transaction Passport certified by the responsible bank officer and imprinted with a bank stamp, as well as other documents required by the customs legislation of the Republic of Kazakhstan.

The Customs body will check the conformity of the data in the Import Transaction Passport submitted by the importer with the data in the Passport provided directly by the bank and the data in the importer’s Cargo Customs Declaration and other available documents. Absent presentation of the Import Transaction Passport, the customs body will not accept the imported goods for customs processing.

Where the goods arrive not in full or with violations of the term indicated in the Import Transaction Passport, the importer will be required to take all the measures to obtain the goods in full value, or to obtain the return of the excess funds it transferred for importation of the goods. The importer is further required to produce information to explain the discrepancy.

Customs shall perform control of timely receipt of goods in accordance with the contract provisions and Import Transaction Passport. In case of violation of time periods for arrival of goods, the customs body shall inform tax and law enforcement bodies of the violation, and shall have the right to apply sanctions under the customs legislation.

To facilitate Customs identification of cargo for currency control purposes, the importer is required to notify the supplier of the goods to indicate his contract particulars and the number of the Import Transaction Passport for the contract in documents sent to the importer and confirming shipment of the goods.

Payments Made After Importation

If the importer’s contract with the foreign supplier provides for the importer to make payment for the imported goods after customs processing, the importer (or a third party, if payment is to be made by that party) shall complete and present an Import Transaction Passport to the customs body when the goods arrive.

A customs officer shall review the submitted documents to ensure conformity of the Import Transaction Passport and contract data, and sign the copies the Import Transaction Passport.

One copy of the Import Transaction Passport shall be sent to the importer’s bank.

The bank is required, in a three-day period, to verify that the importer maintains an account with the bank and to authenticate the signatures in the Import Transaction Passport.

Customs will withhold release of the goods until such verification from the bank is received.

Because of potential delays, it is recommended to file currency control documents prior to customs clearance.

If notified by the bank that the importer does not maintain an account with the bank, the customs body shall take measures in accordance with legislation of the Republic of Kazakhstan.

At the time payment for the goods is made, the importer is required to submit the Import Transaction Passport and a copy of its contract to the bank.

The State Committee of the Republic of Kazakhstan on Standardization, Metrology & Certification (GosStandard) is the government body responsible for standards and certification. The Committee shall approve the list of goods subject to mandatory certification for a certain period of time.

The sale of the goods listed in Appendix 9 within Kazakhstan (regardless whether such goods are imported or domestically produced) is prohibited without a certificate of conformity. These categories of goods may not clear customs without one of the following documents:

Certificate of Conformity issued by an accredited Kazakhstani certification body, which include 13 of the 19 regional bodies of GosStandard as well as 175 testing laboratories (for a list of accredited Kazakhstani certification bodies, please consult GosStandard at the address listed below);

Certificate of Conformity provided by any of the state certification bodies of CIS-country if the goods are manufactured in those countries;

Certificate of Conformity provided by foreign certification bodies accredited by GosStandard. Currently, the following five foreign companies are accredited by GosStandard to issue certificate of conformity: Gas de France, France; MertControl, Hungary; Societe Generale de Surveillance (SGS), Switzerland; Turkish Institute of Standards, Turkey; Tuf Reinland Holding (Germany), or

Application-Declaration Form (ADF) which may be filed by the importer of goods from CIS countries if the importer does not have a certificate of conformity for imported goods. By filing an ADF, the importer may obtain release of the imported goods from Customs, but must initiate the certification process within ten days and is prohibited from selling the goods until the certificate of conformity is granted.

If the importer does not have a certifiate of conformity (and opts not to file an ADF, if from a CIS country), the imported goods must be kept in customs storage warehouses at a fee until the importer obtain a certificate of conformity, but not more than two months. The importer may apply to any of the GosStandard-accredited foreign or domestic certification bodies to obtain a certificate of conformity. Samples may be withdrawn for testing in order to obtain a certificate of conformity.

If imported goods are tested, proven not to correspond to standards, and are considered to be a potential danger, then a special commission is established to decide whether the product should be 1) reprocessed, 2) destroyed, or 3) shipped back to the country of origin. Decisions made by the commission may be appealed by the importer. During such period, the goods must remain under customs supervision and the importer must pay the required storage fee.

However, a decision to destroy the goods may be taken if (i) their storage is proven to be dangerous because of sanitary reasons, (ii) there are not adequate storage facilities, or (iii) the goods cannot be held in storage without further damage.

It is recommended that the importer obtain the certificate of conformity prior to shipping goods to Kazakhstan by providing samples to any of the GosStandard-accredited foreign or domestic certification bodies.

Sanitary conclusion is one of the requisites for obtaining the certificate of conformity for products requiring sanitary certification.

GosStandard maintains a list of all accredited testing and certification bodies in Kazakhstan, all foreign accredited certification companies, and all accredited regional bodies of GosStandard. Importers may contact GosStandard to obtain such list and other information on standards and certification. Fees for obtaining certificate of conformity vary from one certification body to another depending upon the cost of testing required.

The address and phone numbers for the Kazakhstan Committee on Standardization, Metrology & Certification (GosStandard) are as follows:

Altynsaryn street, Almaty 480035
Phone: (7/8) 3272 21 08 08 (7 from outside CIS and 8 from inside CIS)
Fax: (7/8) 3272 28 68 22 (7 from outside CIS and 8 from inside CIS)

Customs Payments
The importer may make customs payments by transfer of funds to the account of a customs body. If the importer transfers funds, the importer must provide to the Customs Department of Payment a receipt verifying that the transfer was received by Customs.

Payments may be made in tenge or any other currency for which the National Bank of Kazakhstan provides an exchange rate. Upon payment, Customs stamps the Declaration form confirming payment.

Customs may permit an importer to defer payment of customs duties or pay duties owed in iinstallments for up to a three-month period from date of acceptance of the Declaration form. Interest shall be levied in accordance with official interest rate prescribed by National Bank.

Customs Duties
Goods are classified according to the Goods Nomenclature for Foreign Economic Activity of the Commonwealth of Independent States (CIS), which is based upon the nomenclature of the Harmonized System (1996) developed by the World Customs Organization.

In addition to goods from its customs-union partners, Kazakhstan permits the importation of goods from certain developing or least-developed countries free of duty or at a reduced rate within the framework of the Generalized System of Preferences. With certain exceptions (Appendix 16), goods that originate in and are directly imported from developing countries are subject to duty at a rate that is 75% of the MFN rate, while goods that originate in and are imported directly from least-developed countries are free of duty. A list of the developing and least-developed countries, and the goods excepted from the tariff preference, is provided in Appendices 15 and 17.

The following goods, regardless of their country of origin, also are free of customs duties:

vehicles engaged in international trade and goods that are required for use of transport vehicles used in international carriage and/or purchased abroad for urgent repair (Customs Code Article 149)

national and foreign currency (other than numismatic) and securities (Customs Code Article 149)

goods so damaged prior to their Customs clearance as to be unsuitable for use (Customs Code Article 149)

goods imported as humanitarian aid (Customs Code Article 149)

goods imported as gratuitous assistance and/or charity under the auspices of states, governments, international organizations, including goods for technical assistance (Customs Code Article 149)

equipment and spare parts imported as a contribution to the charter fund of an enterprise with foreign participation (Customs Code Article 149)

confiscated and abandoned goods and goods inherited by the state (Customs Code Article 148)

goods imported by the National Bank as well as currency (other than numismatic) and securities (Customs Code Article 149)

goods which are transferred through the customs border of the Republic of Kazakstan under customs regimes which provide exemptions from customs payments (Customs Code Article 149):

goods temporarily imported or exported according to Government Resolution No. 342, Concerning Application of Customs Regime of Temporary Import (Export) of Goods, Mar. 25, 1996 (Appendix 32)

goods declared at importation to be for re-exportation

goods re-imported within three years of their exportation

goods in transit (note, however, if goods are subject to excise tax, and are entered for transit by road, it is necessary to provide a security consisting of a deposit or bank guarantee in the amount of customs duties and taxes that would be owed if the goods were declared for free circulation)

products of processing when returned according to regime of processing outside the customs territory

goods imported by natural persons under a free rate of duty as stipulated by the Government (Customs Code Article 149)

goods purchased for budget resources and imported by organizations supported by the state budget and goods purchased under foreign credit lines guaranteed by the state (Customs Code Article 149)

technological equipment and production equipment that is not manufactured in Kazahkstan and necessary for fulfillment of the importer’s own program for creating new and modernized production (Customs Code Article 149)

goods for official and private use of foreign government representatives (Customs Code Chapters 32-33)

Fees for Customs Processing and Other Customs Services
In addition to customs duty, an importer must pay a customs processing fee which currently amounts to 0.2% of the total customs value of the goods. Other fees connected with services rendered by the Customs are described in Appendix 21.

Value Added Tax (VAT)
Most goods imported into Kazakhstan are subject to a Value Added Tax in the amount of 20%. The VAT is computed as follows:

goods subject to customs duties and excise taxes: T = (V+L+D+E) x 20%

goods subject to customs duties but not excise taxes: T = (V+L+D) x 20%

goods subject to neither customs duties nor excise taxes: T= (V+L) x 20%.

(where T=VAT; V=Customs Value; L=Customs Levies; D=Customs Duties; and E=Excise Taxes)

The following imported goods are exempt from VAT:

national and foreign currency (other than numismatic) and securities (Decree Concerning Taxes and Other Mandatory Payments to the Budget of April 24, 1995, No. 2235) ("Tax Code") Article 61-(12))

goods necessary for the operation of vehicles used in international transportation and/or acquired abroad in connection with emergency repairs (Tax Code Articles 61-(13), 86-(2.1))

goods damaged beyond use prior to their importation (Tax Code Articles 61-(13), 86-(2.2))

goods imported as humanitarian aid (Tax Code Articles 61-(13), 86-(2.3))

goods imported for charitable purposes, including the provision of technical assistance from state governments and international agencies (Tax Code Articles 61-(13), 86-(2.4))

confiscated, ownerless and escheated items (Tax Code Articles 61-(13), 86-(2.5))

goods imported for official and personal use by foreign diplomatic and similar representative offices if such exemptions are provided under international agreements of the Republic of Kazakstan (Tax Code Articles 61-(13), 86-(2.6))

goods transferred through the customs border of the Republic of Kazakstan that are exempt under certain customs regimes (Tax Code Articles 61-(13), 86-(2.7)):

goods imported or exported on a temporary basis according to Government Resolution No. 342 of 25 March 1996 Concerning Application of Customs Regime of Temporary Import (Export) of Goods (Appendix 32);

goods declared at importation to be for re-exportation;

goods re-imported within three years after their exportation;

goods in transit (note, however, if goods are subject to excise tax, and are entered for transit by road, it is necessary to provide a security consisting of a deposit or bank guarantee in the amount of customs duties and taxes that would be owed if the goods were declared for free circulation);

goods imported by natural persons under a free rate of duty under conditions stipulated by the Government (Tax Code Article 61-(14))

goods purchased at budget expense and imported by organizations supported at the expense of the state budget, as well as goods imported under foreign credit lines that are guaranteed by the state (Tax Code Article 61-(15))

goods purchased by the National Bank or its subdivisions (Tax Code Article 61-(16))

school manuals and pedagogical materials in accordance with the list approved by the State Customs Committee (Letter of Tax Committee of Ministry of Finance of the Republic of Kazakstan of April 8, 1997, No. 8-2-01-5/2156 and State Customs Committee of April 7, 1997, No. 034-2/2234 Concerning Approximate List of School Manuals and Pedagogical Materials Exempt from VAT at Customs Clearance that are Entered from Outside of CIS Countries) (Tax Code Article 61-(17))

goods originating in and imported from a CIS country if VAT was paid at a rate of 20% upon export of such goods from the CIS country; if VAT was paid at a lower rate upon export, the difference must be paid to Kazakstan upon importation (Customs Committee Instruction No. 131-P, On Order of Application of VAT and Excise Related to Goods Imported to the Territory of the Republic of Kazakhstan (29 September 1995), Regulation of Government of Republic of Kazakhstan No. 979 Concerning of Collection of VAT of Difference in Rates of Customs Clearance of Goods that Enter from CIS Countries (August 7 1996))

Tax legislation also provides for a delay in payment of VAT for a specified list of imported goods. Under this procedure, delay in VAT payment may be permitted where the goods are imported by a person registered for VAT purposes who submits to Customs during clearance a confirmation that he is registered with tax authorities and a written acknowledgement of the obligation to pay with his tax declaration (Tax Code Article 70-(4))

In addition, tax authorities may permit a delay in payment of tax of up to three months with respect to goods that are imported for industrial processing in the territory of Kazakhstan. (Tax Code Article 70-(3)).

Excise Taxes
Several categories of goods are subject to excise taxes. Appendices 2, 11, and 12 list the goods subject to excise taxes as well as the applicable excise rates. Exempt from excise taxes are the following:

excise goods imported by natural persons under a limits stipulated by the Government Attachment 2 to Regulation of Government of Republic of Kazakhstan Concerning Excise Rates for Imported Goods and Limits on Excise Goods that May Be Entered by Physical Person Without Payment of Excise Tax -our Appendix 12) (Tax Code Article 86-(1))

goods necessary for the operation of vehicles used in international transportation and/or acquired abroad in connection with emergency repairs (Tax Code Article 86-(2.1))

goods damaged prior to importation to the extent that they cannot be used (Tax Code Article 86-(2.2))

goods imported as humanitarian aid (Tax Code Article 86-(2.3))

goods imported for charitable purposes including technical assistance from states, governments, and international organizations (Tax Code Article 86-(2.4))

confiscated and abandoned goods and goods inherited by the state (Tax Code Article 86-(2.5))

goods imported for official and personal use by foreign diplomats and similar representative entities (Tax Code Article 86-(2.6))

goods transferred through the customs border and exempt from VAT under certain regimes of the Customs Code (Tax Code Article 86-(2.7))

Goods originated in and imported from CIS countries except beer, wine and vodka products, alcohol, and tobacco products. Instruction of Customs Committee No. 131-P of September 29, 1995, Concerning Procedure for Collection of VAT and Excise on Goods Imported to the Territory of Kazakstan and Excise Rates for Goods Imported to Kazakstan; Government Resolution No. 907 of May 30, 1997, On Rates of Excise Tax for Imported Excise Goods and Limits of Entering by Physical Persons through Customs Border of Republic of Kazakstan of Goods that are Not Subject to Excise. (Appendices 11 and 12)

Other Duties
Kazakhstan legislation permits the assessment of anti-dumping, countervailing and special duties in specified circumstances. At present Kazakhstan does not apply any of these duties.

Drawback
A drawback of import duties and taxes may be claimed where the imported goods are processed in the Republic of Kazakhstan and exported within two years after importation. The processing operations that will qualify for drawback include manufacturing and assembly operations and repairs. Imported goods such as catalysts or lubricants, which are used in production or manufacture of other exported goods, even if themselves consumed, are eligible for drawback. A permit from the customs body through which the goods were cleared and customs payments made is required in order to claim drawback.

Accelerated Entry Procedures

Pre-Arrival Declaration
Under a regulation of the State Customs Committee, importers may file declarations up to 10 days prior to the arrival of the goods to the customs territory. (State Customs Committee Regulation No. 161-P, Customs Processing of Imported Goods under Pre-Arrival Declaration (June 23, 1997) (Appendix 23)). This procedure allows Customs to complete the import processing -including verification of documents, tariff classification and valuation of the goods, and collection of duty and taxes- prior to arrival of the goods. Once the goods arrive, Customs may immediately authorize the release of the goods upon submission of the transportation documents, subject to any required physical inspection.

Periodic Declaration
Pursuant to a regulation of the State Customs Committee, entities that import identical goods (goods with the same nine-digit tariff classification code) on a regular basis (two or more times a month) may be permitted by Customs to file a single declaration covering all goods imported in a single month. State Customs Committee Regulation No. 161-P, Customs Processing of Imported Goods under Periodic Declaration (June 23, 1997).

An importer who intends to use this periodic declaration procedure shall submit a written request for authorization to the customs body that will perform the import processing, which must include required information concerning the goods and a guarantee of pre-payment of customs payments.

The customs body shall issue a preliminary decision on classification and, if the goods are claimed to be eligable for tariff preferences becouse of their origin, a decision on the country of origin of the goods. Authorization to use the procedure shall take effect upon the importer’s deposit of an agreed pre-paid amount to the account of the customs body.

Customs authorization is effective for a period of one year. If the importer wishes to extend this period, the importer must submit an application not later than one month prior to the expiration of the original term.

Under the periodic declaration procedure cargo and transport documents shall be submitted to the Customs upon arrival of each shipment of goods. Customs shall provide their verification and conformity to the results of examination. If no discrepancy is revealed then cargo and transport documents shall be imprinted with a note "Release is authorized. Periodic declaration" certified by a signature of a person performing the examination and verification. From this moment the goods are considered as released for free circulation.

Not later than 3 days after the close of a calendar month during which shipments were made under the periodic declaration procedure, a declarant shall present a declaration to the Customs filed in accordance with rules provided for the customs regime of "release of goods for free circulation".

Customs Warehouses
One of the customs regimes is the regime of the customs warehouse. Goods may be declared for transfer to a customs warehouse where they may be held without payment of duty or taxes for a period of three years. Goods in warehouse may be manipulated to the extent necessary to ensure their safety or their preparation for sale or transportation (for example, breaking into batches, grouping of packages, sorting, packaging or repackaging, marking, and loading or unloading). At the end of the three-year term, the goods must be declared for free circulation, exportation, or other customs regime.

Appeals
The procedures for appeal against administrative penalties imposed by customs bodies or their officials, or against other actions or inaction of such bodies or officials, is described in Articles 49, 55, and 56 of the Customs Code.

The time period for filing an appeal is as follows:

months - for appeals against other actions or inaction of customs bodies or their officials.

Appeals can be directed either to the superior customs body or directly to the court. An appeal to the superior customs body shall not deprive the appellant of his right to appeal to the court.

Customs is required to send the appellant a written decision on the appeal, with explanation of the basis for the decision, not later than three days after the decision is taken.

The filing of an appeal against Customs decision to impose penalties shall suspend the execution of that decision; however, other actions or inaction of the customs bodies shall not be terminated by the filing of an appeal.

The Kazakhstan Administrative Code prohibits the same government body that was the source of the complaint from deciding the appeal.

II. CUSTOMS EXPORT REQUIREMENTS

General
Any legal entity or natural person may engage in export activities. Export of certain products requires an export license. (Appendices 4 and 6).

There are no export quotas in effect in Kazakhstan, with the exception of those applicable to certain textiles and steel products exported to the European Union. (Appendix 8)

VAT and excise taxes must be paid with respect to exports to CIS countries only. No VAT or excise tax is paid with respect to exports to other countries. The documentary basis for exemption from payment of VAT and excise on exports to non-CIS countries is the Cargo Declaration processed by Customs.

Summary of Required Documents
The following documents are required to be submitted to the customs authorities of the Republic of Kazakhstan in order to export non-personal goods from Kazakhstan:

Customs Cargo Declaration Form ("Declaration Form") (1);

Export Transaction Passport (1);

Commercial Invoice (1);

Shipping Documents (2)(e.g. bill of lading, airway bill); and,

Export contract.

In addition, one or more of the following documents may be required depending on the circumstances of the exportation (see following pages for description of each):

Certificate of origin (1)

Export License (1)

Transaction passport

Power of Attorney (1)

Specifications or Packing List (1)

Export Contract (1)

Statistic Card (1)

Customs valuation declaration form (1)

Insurance documents (1)

Certificate of registration of export transaction at commodity exchange (government enterprises only) (1)

The number in parentheses following the name of the document refers to the number of copies of such documents that must be submitted.

Documents are required to be submitted in original. However, according to an instruction of the State Customs Committee, where an original of any document required for clearance of goods, other than a certificate of origin, is not available, the declarant may submit a duplicate or fax copy provided that such copy is submitted to Customs with a cover letter confirming the authenticity of the copy. According to the State Customs Committee instruction, the letter must contain the name and address of the company that created the document, the date the document was created, the company’s code, and the name of the person responsible for accuracy of the document. Both the cover letter and the duplicate or fax copy must be imprinted with the seal of the declarant-company. (Letter of the State Customs Committee No. 100-13/885 (Feb. 8, 1996)).(Appendix 13)

The Declaration Form must be submitted in either Kazakh or Russian language. Other documents (e.g. certificate of origin, commercial invoice, etc.) may be submitted in foreign languages. Customs, however, does have the authority to request a notary-certified translation of the documents.

Customs processing of goods may be performed by the declarant if he is a Kazakhstani entity, as defined in Article 18 part 3 of the Customs Code, or by his agent.

Description of the Export Clearance Process
Customs export processing is required to be completed within 10 days from moment of Customs’ acceptance of the exporter’s declaration. Customs Code Article 216.

If customs processing of exports is sought in a zone other than the zone of activity of the customs department of the oblast where the exporter’s business is located, then the exporter is required to obtain a letter from the latter customs department which has jurisdiction over the exporter. This letter shall confirm the fact that the exporter has no outstanding customs debts (Instruction of State Customs No. 011-16/6628 (Sept. 2, 1996)).

Stage 1: Submission of Documents

Responsible Customs Department:

Department of Control of Export-Import Operations

The exporter (or agent) must complete and sign the Cargo Declaration indicating an export consignment and present the commercial invoice of the cargo owner, shipping documents and export contract.

The exporter shall present the documents to the customs officer in the Customs Division of Cargo Transportation at the port, and, depending upon the circumstances, any other required documents.

The customs officer who certifies that all the documents are submitted in full, will make a list of the submitted documents, assign a number to Declaration (this number is the registration number for the export entry, and is marked in box 7 of the Declaration form) and transfers all documents to the next stage.

Stage 2: Verification of Submitted Documents

A customs officer will review the documents. If the documents are complete and accurate, the officer will transmit the documents to the Division of Customs Payments.

Stage 3: Customs Valuation and Calculation of Customs Payments. Currency Control

Responsible Customs Department: Division of Customs Payments

A customs officer reviews the accuracy of the declared value of the goods and duty rates against the submitted documents.

At present there are no export duties .

A processing fee of 0.2% of customs value is additionally charged. After payments are calculated, exporter pays all duties and taxes

Pursuant to Article 122 of the Customs Code, customs value of goods exported from Kazakhstan shall be determined on the basis of the price which is indicated in the exporter’s invoice, plus the following expenditures, if they are not included in the invoice price and are actually incurred:

expenditures relating to the delivery of goods to the airport, port or any other place of export:

Transportation

costs associated with loading, unloading, reloading and temporary storage

Insurance

other expenses incurred by seller:

commission and brokerage fees

cost of containers

cost of packing

Stage 4: Payment

Responsible Customs Department: Customs Department of Payment

The exporter may pay either in cash or by transfer of funds from his bank to a Customs account.

If the exporter transfers funds into the bank account of Customs, a receipt verifying this transfer must be presented.

Payments may be made in tenge or any other currency for which the National Bank of Kazakhstan provides an exchange rate.

Upon payment in cash or by bank-to-bank transfer, Customs stamps the Declaration confirming payment. The exporter then proceeds to the Customs Department of Control of Exports-Import Operations for the final stage.

Stage 5: Inspection of Goods

Responsible Body: Customs Department of Control of Exports-Import Operations

The goods to be exported are kept by the exporter until all the papers have been filed and presented to Customs and Customs is ready to inspect the goods. Placement of the goods in a temporary storage warehouse is therefore not required. When all the documents are arranged in order, the goods shall be sent to the Customs for inspection and issuing the permit for export. Physical inspection and release of the goods is the last step in the exit procedure. The Declaration form shall be imprinted with a stamp "Release authorized" and attested by a personal stamp of customs officer.

Description of Required Documents

Export Transaction Passport
Customs processing of exportation of goods shall be performed after currency control measures are applied. The main document that the exporter must present to the customs bodies for this purpose is the Export Transaction Passport. (State Customs Committee of June 20 1997 N 159-p /National Bank Regulation No. 229 (May 23, 1997)).

The Export Transaction Passport must be submitted first either to the exporter’s bank or to the customs body where the customs processing will be performed, depending upon whether the exporter’s contract for sale of the goods requires payment to be made before or after completion of customs export processing.

A sample Export Transaction Passport and instructions for its completion are set out in Appendix 20.

Payments Received After Exportation

If the exporter’s contract provides for payment for exported goods after the customs processing is completed in the territory of Kazakhstan, the exporter is required to complete and sign an Export Transaction Passport on the basis of his export contract, and present the Passport to the customs body. The Export Transaction Passport must be submitted in three copies.

A Customs officer shall verify that the data included in the submitted Export Transaction Passport conforms to the export contract. If the Passport complies with the requirements provided in this section and with other requirements of the customs legislation of the Republic of Kazakhstan, a customs officer processing the goods shall sign and stamp three copies of the Export Transaction Passport with his personal identification stamp. One copy of the Export Transaction Passport and the copy of the contract shall be kept in the export dossier at Customs.

The second copy of the Export Transaction Passport signed and stamped by the customs officer shall be returned to the exporter.

Customs shall provide a third copy of the Export Transaction Passport directly to the bank to which the export proceeds will be received according to the exporter’s transaction Passport.

Upon receipt of the Export Transaction Passport the bank, within a three-day period, shall determine whether the exporter has an account with the bank, and shall authenticate the signature in the Export Transaction Passport. If the Transaction Passport conforms to the requirements, the responsible bank officer shall open an export file where the export transaction Passport is to be kept, and notify the customs body.

Upon receipt of the bank’s confirmation that the exporter maintains an account with the bank, the customs body shall perform the customs processing of goods.

Pre-Paid Exports

If the exporter’s contract provides for receipt of payment prior to export of the goods, the exporter shall complete and sign an Export Transaction Passport, and present three copies of the Passport and a copy of the contract to the bank that will receive the proceeds.

The bank will provide a copy of the Export Transaction Passport, with the signature of the responsible bank officer and the bank seal, to the customs body.

If the bank fails to receive the export proceeds in full within the time period indicated in the Export Transaction Passport, the exporter shall take measures to receive the proceeds in full. The importer is further required to produce information to explain the discrepancy.

In the case where full export proceeds are not received, or are not received within the period specified in the Export Transaction Passport, Customs is authorized to apply sanctions to the exporter as provided by the customs legislation, and to notify tax and investigation bodies.

Customs Cargo Declaration Form ("Declaration Form")
The Customs Cargo Declaration Form is based on the Single Administrative Document (SAD) developed and used by the European Union.

A replica of the form is set out in Appendix 27.

The TD-1 form is available from customs brokers and freight forwarders and at customs bodies that perform customs processing of goods.

Where a shipment consists of goods classified under more than one tariff category of the goods nomenclature, the declarant may include the information concerning the additional goods on a continuation sheet ("TD-2") attached to the Cargo Declaration form, rather than completing a separate Cargo Declaration form for each product.

Export Licenses
Most products may be exported from the Republic of Kazakhstan without a license. Export licenses, however, are required for certain categories of products (see our Appendix 6, Government Resolution No. 1037, On Licencing of Export and Import of Goods (Work, Services) in the Republic of Kazakhstan, (Appdx. 4) (June 30, 1997)).

A license is required for export of such goods regardless of their country of origin or destination. The system is thus applied to goods exported to countries with free trade agreements with Kazakhstan and CIS countries.

The procedure for obtaining the export license is same as the procedure for import license (see "Customs Import Requirements" above). Applications for import licenses are required to be submitted to the Department of Industry, Division of Licensing, Ministry of Economy and Trade.

Certificate of Origin
To obtain a certificate of origin in Almaty, the exporter must apply to the branch office of Chamber of Commerce and Industry. In the oblasts, the exporter may apply to the representative offices of the Chamber of Commerce and Industry, which are located in each oblast. These bodies charge a fee of 0.2 % of the export transaction value (plus VAT) to issue and witness the certificate of origin.

Power of Attorney
A Power of Attorney is required for all transactions wherein the exporter is not the owner of the goods.

Insurance Documents
Customs may also require proof of insurance in order to calculate duties.

Report of Results of Inspection
According to Government Resolution No. 654, On Selective Pre-Shipment Inspection of Export Contracts (May 28, 1996), participants of foreign economy activity, irrespective of their legal form, are required to present exported goods to Customs for pre-shipment inspection and obtain reports on results of the inspection performed under established procedure.

Periodic Export Declaration
Exporters are permitted, under certain conditions, to file a single declaration for all export shipments made during a period of one month. (Customs Committee Regulation No. 222, Customs Processing of Goods with Incomplete Periodic Declaration, (10/31/96) (Appendix 3)).

Customs processing under this periodic export declaration procedure may be applied to goods that are regularly exported by major industrial enterprises that have a continuous operating cycle and twenty-four hour shipment schedule, the operation of which has been determined to be of particular importance to the economy of Kazakhstan.

To use this procedure, exporters must obtain the prior written authorization from the head of the customs body in the region in which the enterprise is located. The application must be submitted by the enterprise, and must be accompanied by the petition of local government authorities.

Pipeline Transport and Electric Transmission Lines
The Instruction on Customs Processing of Goods Transferred through the Customs Border by Pipelines and Transmission Lines (approved by State Customs Committee Order No. 114-P, May 28, 1996) sets the procedure for customs processing of goods transferred through the customs border of Kazakhstan by main oil pipeline, oil product pipelines and gas pipelines, and by electric transmission lines.

The Instruction also applies to combined transportation of goods by different types of transport, one of which is pipeline transport.

Customs processing of such goods is performed in places designated by the customs house that has jurisdiction of the region in which the company that signed the supply agreement with the foreign entity is located.

Transfer of Goods by Natural Persons
The simplified procedure for entry of goods by natural persons is prescribed by Government Resolution No. 1712 (Dec. 31, 1996), On Procedure for Transfer of Goods (Including Transport Vehicles) by Natural Persons through the Customs Border, an excerpt of which may be found at Appendix 14.

Appeals
The procedures for appeal against administrative penalties imposed by customs bodies or their officials, or against other actions or inaction of such bodies or officials, is described in Articles 49, 55, and 56 of the Customs Code.

The time period for filing an appeal is as follows:

months - for appeals against other actions or inaction of customs bodies or their officials.

Appeals can be directed either to the superior customs body or directly to the court. An appeal to the superior customs body shall not deprive the appellant of his right to appeal to the court.

Customs is required to send the appellant a written decision on the appeal, with explanation of the basis for the decision, not later than three days after the decision is taken.

The filing of an appeal against Customs decision to impose penalties shall suspend the execution of that decision; however, other actions or inaction of the customs bodies shall not be terminated by the filing of an appeal.

The Kazakhstan Administrative Code prohibits the same government body that was the source of the complaint from deciding the appeal.

III. APPENDICES

Appendix 1 "Instruction on Customs Processing of Goods Transferred through the Customs Border by Pipeline or Power Transmission Lines," approved by Order of Customs Committee of the Republic of Kazakstan No. 114-P (May 28, 1996)(Excerpt)