Country Commercial Guide For Turkmenistan


August 1997

Chapter VI: Trade Regulations and Standards

Turkmenistan is not a member of any free trade arrangements and is not a member of the CIS Customs Union. It has signed trilateral trade agreements with Iran and the Ukraine, Iran and Armenia, Iran and Bangladesh, Iran and the Philippines, and Iran and India and is interested in concluding more such trilateral agreements. In 1993, Turkmenistan signed and ratified a Most Favored Nation Trade Agreement with the United States. GOTX officials informally have expressed an interest in joining the World Trade Organization.

Trade Barriers, Including Tariffs, Non-Tariff Barriers and Import Taxes
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Excise Taxes
Excise taxes constitute the most significant trade barriers in Turkmenistan. In 1997, the number of goods imported into Turkmenistan and subject to excise taxes was expanded from 11 to 54 to, finally, 104. Excise taxes on these items are calculated in manats at the current Central Bank exchange rate on the basis of weight, volume, or trade contract cost. Some of the items subject to excise taxes are shown below:

1.  Beer                                               USD 0.50
per liter
2.  Natural grape wines including  strong wines        USD 1.00
per liter
3.  Vermouth, other grape wines                        USD 1.50
per liter
4.  Alcohol, liquors, other drinks                     USD 1.50
per liter
5.  Coarse-ground salt                                 30% of
contract price
6.  Mineral water except medical mineral water         20%
7.  Beverages:
from September 1 through March 3 30% from April 1 through August 31 10% 8. Baby food made of milk 30% 9. Tomato paste 30% 10. Pickled, preserved tomatoes 50% 11. Tomato juice 50% 12. Pickled, sour cabbage 50% 13. Cherry-plum, plum, apple compotes 30% 14. Apple, plum, cherry-plum jam 30% 15. Apple, carrot, pumpkin, melon jam 50% 16. Pickled eggplants 30% 17. Pickled beet 30% 18. Water-melons, melons, gourd 100% 19. Grapes 100% 20. Fresh vegetables including tomatoes, peppers, eggplants, cabbage, cucumbers, onion, garlic 100% 21. Lemons 50% 22. Cigars including cigars with cut ends, 30% of contract cigarillos and its substitutes except price, but not cigarettes without filters less than USD 0.10 per pack 23. Tobacco and its substitutes per pack USD 0.25 24. Jewelry made of precious and semi- 10% precious stones and metals, or of natural and cultivated pearls or precious and semi-precious stones 25. Automobiles: - with engine capacity of up to 2,000 10% cubic centimeters - with engine capacity of more than 15% 2,000 cubic meters 26. Cotton fabric (coarse calico) 50% 27. Denim fabric 50% 28. Cotton yarn 20% 29. Knitted cotton fabric 20% 30. Knitted cotton garment 30% 31. Cotton robes 30% 32. Denim trousers 20% 33. Mattresses, blankets, cotton pillows 30% 34. Cotton mittens (special work cloth) 30% 35. Cotton wool 30% 36. Cotton sheet wadding 30% 36. Quilted cotton wool for furniture 30% 37. Cotton rugs 30% 38. Hand-made Turkmen carpets 100% 39. Machine-made wool carpets 50% 40. Machine-made semi-wool carpets 50% 41. Machine-made synthetic carpets 50% 42. Hand-made camel wool carpets called "Koshma" 100% 43. Yurtas 100% 44. Astrakhan fur coats 50% 45. Lamb skin (astrakhan skin) 50% 46. Sheep wool except sardjinskaya, merenosnaya and angora wool 50% 47. Raw silk 50% 48. Silkworm cocoon 50% 49. Lamp-holders, sockets, switch outlets 30% 50. Window glass with 3-4 millimeter thickness USD 1 per square meter 51. Cauldrons with 3,5,9,15,25,50 and 100 liter capacity 50% 52. Enameled bowls with a capacity of up to 2 liters 30% 53. Enameled mugs with a capacity of 0.4 to 1 liter 30% 54. Plastic buckets with a capacity of 5 to 10 liters 30% 55. Plastic basins with a capacity of 5.8 to 18 liters 30% 56. Plastic jerrycans with a capacity of 10 liters 30% 57. Plastic lids for cans 30% 58. Gas stoves 20% 59. Saws of PMP00183 type 100% 60. Saws of 4AP05002 type 100% 61. Cream mixing machine of MV-60 and MV-35 types 20% 62. Pouring equipment (USN-175 type) 10% 63. Drilling equipment (BPR-70) 10% 64. Dough, pastry mixing equipment 20% 65. Carbon dioxide 20% 66. Technical sulfur acid 20% 67. Aluminum sulfate 20% 68. Oxygen 20% 69. Ferro bromide 20% 70. Ozocerite 20% 71. Technical carbon K-354 30% 72. Sodium sulfate (A and B type) 30% 73. Technical magnesium chloride (bishofit) 30% 74. Natural magnesium sulfate (epsomit) 30% 75. Glauber's salt 50% 76. Potassium iodide 30% 77. Technical iodine (A type) 30% 78. Bleach "Belizna" 30% 79. Sea salt 50% 80. Gypseous and anhydride stone 30% 81. Oil coke 30% 82. Bitumen 30% 83. Sulfur 30% 84. Technical salt 30% 85. Fans (VG-70, VG-50, ZVG-25 types) 30% 86. Equipment (USN-175 type) 30% 87. Rotor (V16VG-70 type) 30% 88. Conductor 30% 89. Cord 30% 90. Cable 15% 91. Cement (M-300 and M-400 types) USD 5 per ton 92. Slate USD 20 per one thousand of conditional slab

Those goods imported into Turkmenistan in accordance with intergovernmental agreements, government decrees and with the purpose to implement projects and/or contracts with foreign investment participation and state loan involvement are exempt from excise payments. Also no excises are charged for goods that transit through Turkmenistan and are imported into Turkmenistan for humanitarian and/or technical assistance from international and charitable organizations.

The Government levies excise taxes on a limited number of exported goods. The list includes:

1.  Mineral water                            
    - from September through February          no excises
    - from March through August                USD 0.20 per liter
2.  Pure wool yarn and semiwool yarn           USD 200 per ton
3.  Cattle leather:
    - leather made of cows, camels, bulls
    etc.                                       USD 100 per ton
    - leather made of sheep and goats          USD 0.50 per piece
    - non-standard leather                     USD 50 per ton
4.  Ammonia saltpeter                          USD 100 per ton

Customs Procedures

To pass through customs, an importer of goods must submit the following documents:

- A trade contract registered with the SCRME. The contract should contain information about quantities and costs in hard currency that will be the basis for the customs valuation;

- A bill of lading with similar information on qualities and costs;

- A customs declaration form that can be obtained in the Ashgabat-Expertisa firm of the Chamber of Commerce of Turkmenistan at the following address:

Mr. Rafael Salimov, Director
"Ashgabat-Expertisa" Firm
17 Baymukhamed Batyrov Street
Ashgabat, Turkmenistan 744000
Tel: (993)(12) 25-13-52
35-41-74
25-53-26

A declaration form for one category of goods costs 10,800 manats (June 1997 foreign exchange rate is 5,200 manats per one U.S. dollar). An additional form for three categories of goods costs 7,200 manats;

- A conformance certificate confirming the quality of delivered goods. The certificate can be obtained from the State Standards Inspectorate at the address below:

Mr. Bayram Khasanov, Head
State Chief Standards Inspectorate
14 Seidi Street
Ashgabat, Turkmenistan 744000
Tel: (993)(12) 51-14-94, 51-14-32
Fax: (993)(12) 51-04-98

The Cotton Inspectorate under the State Cotton Association issues a separate conformance certificate for cotton exported from Turkmenistan;

- A Central Bank document confirming a money transfer for purchasing goods or an irrevocable Letter of Credit.

While there are no "tariffs", Customs charges a service fee of 0.2 percent of the contract cost and 20 percent of the value added tax counted from the fee sum.

Import/Export Licenses
----------------------
Issued in November 1994, a Presidential Decree outlines two separate sets of goods where import or export must be licensed by the President and the Cabinet of Ministers. The following is the list of goods where import or export is controlled by the President:

1. Arms and military equipment and special items used for military production and services;
2. Gunpowder, explosive substances, explosive and pyrotechnic devices;
3. Radioactive materials, technology, equipment and installations, special non-nuclear materials and radioactive wastes;
4. Precious metals and alloys, ores, scrap material and wastes;
5. Precious natural stones and items including wastes, powder, recuperation of precious natural stones, pearls and amber;
6. Narcotics;
7. Special kinds of raw materials, equipment, technology and scientific information used for arms and military equipment production;
8. Materials, equipment and technology ostensibly produced for peaceful purposes but which may be used for production of nuclear, chemical and other kinds of weapons of mass destruction;
9. Investment abroad;
10. Export of scientific and research works, expertise and innovations; and
11. Poisons (except those that are included in the list below).

The Cabinet of Ministers licenses export or import of the following goods:

1. Chemicals;
2. Poisons;
3. Industrial wastes;
4. Turkmen national jewelry;
5. Cultural valuables;
6. Ancient printed products and manuscripts;
7. Archaeological findings;
8. Numismatics;
9. Art products;
10. Collections of materials on mineralogy and biology;
11. Middle Asian sheep-dog;
12. Ahalteke horses;
13. Pedigree cattle;
14. Wild animals;
15. Wild plants, bones of fossil animals, ivory, horns, hoofs, corals and other such materials; and
16. Information about soils, energy resources and minerals assimilated by the districts located throughout the territory of Turkmenistan and within the continental shelf and offshore zone.

The Ministry of Trade and Resources issues licenses for the import of alcohol.

The Precious Stone and Metal Fund under the Central Bank of Turkmenistan provides licenses for export or import of precious stones and metals.

Import/Export Documentation
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The SCRME is authorized to issue import/export licenses for all commercial transactions.

To register direct trade contracts that are not involved in auctioning at the SCRME, three original copies of the contract along with a product quality certificate and a document confirming product availability must be submitted to the SCRME.

Those goods that are auctioned at the SCRME can be exported from or imported into Turkmenistan without licensing.

To register a contract for selling or purchasing goods at the SCRME, an application should be submitted at least five days prior to the sale or purchase. The application must contain information about the goods: quantity, prices, place of origin and current location, terms of delivery and payment and the seller's contact information. In addition, the following documents must also be submitted: a product quality certificate issued by the producer of goods offered for sale; a written confirmation of product availability issued by the seller; and a guarantee document containing the date and terms for delivery of goods in Turkmenistan. A buyer must present a bank confirmation of sufficient funds to cover the cost of the goods.

Contracts and treaties concluded on the basis of clearing agreements, trade credits and investment barters (as well as those entailing the import of a part of joint venture capital goods, and charitable donations) must also be registered with the SCRME.

Standards, Labeling and Marking Requirements
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With the exception of cotton, all goods imported into and exported from Turkmenistan must be certified as adhering to quality standards determined by the State Chief Standards Inspectorate. Raw and ginned cotton to be exported from Turkmenistan is certified by the Cotton Inspectorate under the State Cotton Association.

Turkmenistan has developed "national standards" for locally produced goods. Since Turkmenistan is a member of the International Standards Organization (ISO), most Turkmen national standards meet international standards requirements. So far, Turkmenistan has not introduced any restrictive packaging or labeling standards rules.

As part of the CIS, Turkmenistan has accepted General Interstate Standards (GOST) and Technical Standards (TS), developed in accordance with an agreement reached between 12 CIS countries. Most of the GOST standards incorporate former Soviet Union standards.

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)