The representative of Kazakhstan stated that the establishment of Special Economic Zones
(SEZs) was aimed primarily at attracting foreign direct investments; accelerating development of
modern high technology industries, transport infrastructure, and tourism; increasing employment;
and other purposes as defined in the legal documents establishing individual SEZs. In Kazakhstan,
Law No. 469-IV "On Special Economic Zones in the Republic of Kazakhstan" of 21 July 2011
(hereinafter – 2011 Law on SEZs) had replaced Law No. 274 "On Special Economic Zones in the
Republic of Kazakhstan" of 6 July 2007. The 2011 Law on SEZs had invalidated the previous Law
and now was the basic Law on SEZs. Additional relevant provisions were contained in the Customs
Code of Kazakhstan and the Tax Code of Kazakhstan. The representative of Kazakhstan further
confirmed that, within the EAEU, SEZ were regulated by Article 27 "On Functioning of Free
(Special) Economic Zones and Free Warehouses" of the EAEU Treaty, which came into
effect on 1 January 2015, and the Agreement on Free (Special) Economic Zones on the
Customs Territory of the Customs Union and the Customs Procedures of the Free Customs Zones
of 18 June 2010 (hereafter the CU Agreement on SEZs) which remained in force, as well as by
the CU Customs Code and other legal instruments. She continued that from January 2015,
these provisions of the EAEU Treaty and CU Agreement on SEZs provided the general
framework within the EAEU for rules on establishment and operation of new SEZs, and application
of provisions of the Agreement to existing SEZs, including provisions on customs regime of the
free customs zone on the territory of SEZs.
679. Working Party Members requested further information on the current rules of
establishment and operation of the SEZs established and administered under Kazakhstan's new
Law on SEZs, as well as information to help them assess whether the zones met
WTO requirements. Members also sought information about the relationship between
Kazakhstan's 2011 Law on SEZs and the provisions of the CU Agreement on SEZs which entered
into force on 1 July 2010. Information was also requested on current status of the six SEZs.previously established under Law No. 274 "On Special Economic Zones in the Republic of
Kazakhstan" of 6 July 2007, and whether they were now operated in accordance with the current
legislation. Working Party Members also asked for details on how WTO obligations would be
enforced in all the SEZs operating on the territory of Kazakhstan after accession, in particular
whether Articles I and III of the GATT 1994 would be applied, and whether incentives granted to
firms established in the SEZs would be based on export performance or local content
requirements. Other issues raised by Members in this connection concerned the need to restore
any tariffs or taxes from goods or inputs imported from non-EAEU member States used in the
manufacturing process in the SEZs to goods eventually exported to the rest of Kazakhstan or the
territory of other EAEU member States, even if imported inputs had been transformed
sufficiently to meet the criteria as domestic goods. One Member stated that, in its view, there was
no level of transformation sufficient to eliminate the need to restore exempted duties and taxes on
inputs imported from non-EAEU member States into the SEZ duty- and tax-free, as rules of
origin operated between countries, not parts of countries. Other Members sought information on
what other benefits, if any, in terms of tax exemptions or otherwise, were available to firms that
located in the SEZs.
The representative of Kazakhstan stated that the establishment of Special Economic Zones
(SEZs) was aimed primarily at attracting foreign direct investments; accelerating development of
modern high technology industries, transport infrastructure, and tourism; increasing employment;
and other purposes as defined in the legal documents establishing individual SEZs. In Kazakhstan,
Law No. 469-IV "On Special Economic Zones in the Republic of Kazakhstan" of 21 July 2011
(hereinafter – 2011 Law on SEZs) had replaced Law No. 274 "On Special Economic Zones in the
Republic of Kazakhstan" of 6 July 2007. The 2011 Law on SEZs had invalidated the previous Law
and now was the basic Law on SEZs. Additional relevant provisions were contained in the Customs
Code of Kazakhstan and the Tax Code of Kazakhstan. The representative of Kazakhstan further
confirmed that, within the EAEU, SEZ were regulated by Article 27 "On Functioning of Free
(Special) Economic Zones and Free Warehouses" of the EAEU Treaty, which came into
effect on 1 January 2015, and the Agreement on Free (Special) Economic Zones on the
Customs Territory of the Customs Union and the Customs Procedures of the Free Customs Zones
of 18 June 2010 (hereafter the CU Agreement on SEZs) which remained in force, as well as by
the CU Customs Code and other legal instruments. She continued that from January 2015,
these provisions of the EAEU Treaty and CU Agreement on SEZs provided the general
framework within the EAEU for rules on establishment and operation of new SEZs, and application
of provisions of the Agreement to existing SEZs, including provisions on customs regime of the
free customs zone on the territory of SEZs.
679. Working Party Members requested further information on the current rules of
establishment and operation of the SEZs established and administered under Kazakhstan's new
Law on SEZs, as well as information to help them assess whether the zones met
WTO requirements. Members also sought information about the relationship between
Kazakhstan's 2011 Law on SEZs and the provisions of the CU Agreement on SEZs which entered
into force on 1 July 2010. Information was also requested on current status of the six SEZs.previously established under Law No. 274 "On Special Economic Zones in the Republic of
Kazakhstan" of 6 July 2007, and whether they were now operated in accordance with the current
legislation. Working Party Members also asked for details on how WTO obligations would be
enforced in all the SEZs operating on the territory of Kazakhstan after accession, in particular
whether Articles I and III of the GATT 1994 would be applied, and whether incentives granted to
firms established in the SEZs would be based on export performance or local content
requirements. Other issues raised by Members in this connection concerned the need to restore
any tariffs or taxes from goods or inputs imported from non-EAEU member States used in the
manufacturing process in the SEZs to goods eventually exported to the rest of Kazakhstan or the
territory of other EAEU member States, even if imported inputs had been transformed
sufficiently to meet the criteria as domestic goods. One Member stated that, in its view, there was
no level of transformation sufficient to eliminate the need to restore exempted duties and taxes on
inputs imported from non-EAEU member States into the SEZ duty- and tax-free, as rules of
origin operated between countries, not parts of countries. Other Members sought information on
what other benefits, if any, in terms of tax exemptions or otherwise, were available to firms that
located in the SEZs.
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