Tariffs and regulations
Tariffs and duty rates are constantly revised and are subject to change without notice.
Austrade strongly recommends you reconfirm these prior to selling to Kazakhstan.
For further information please see the Customs Control Committee of the Finance Ministry of Kazakhstan website.
Tariffs and non-tariff barriers
Kazakh customs legislation is quite developed and to a large extent based on the principles of World Customs Organisation. Since January 2010, Kazakhstan is a member of the Customs Union with Russia and Belarus; as a result, the country was required to harmonise its more liberal trade terms with Russia’s more restrictive rules. In some cases, tariffs were increased. A common customs code took effect on 6 July 2010. Border customs controls between the three countries are scheduled to be removed in mid-2011 and there are plans for the gradual elimination of other customs controls between the three markets. Clients are advised to seek advice from Austrade on the impact of the Customs Union.
Similar to tax compliance issues, customs issues often require advance planning and proper risk management in the Kazakhstan environment, particularly as rules and requirements can change on short notice.
Tariffs
Goods are classified based on the Customs Tariff of the Customs Union, which took effect on 1 January 2010 and is generally based on the Harmonised System. Customs tariffs for different types of goods are determined at the Customs Union level.
Under the common code of the Customs Union (in effect 1 July 2010), the Binding Tariff Information (BTI) will be established separately by each member of the Customs Union and will be binding only for the issuing country within the next three years, unless the tariff changes. The Council of the Customs Union may void a particular BTI. All issued BTIs should be publicly available.
The importation of goods to Kazakhstan under the “free circulation” customs regime generally attracts:
- import VAT at the current rate of 12 per cent
- import customs duties at rates ranging from 0 per cent to 25 per cent depending on the classification of a particular imported good (with higher rates for certain specified goods)
- excise duties in the case of importation of excisable goods such as alcohol
In addition to import VAT, customs duties, and excise taxes (if applicable), importers/exporters incur a minimum customs processing fee of 50 euros for the main page of a cargo customs declaration and 20 euros for each supplemental page of a cargo customs declaration. Import VAT, customs duties, excise taxes and processing fees are payable at customs upon importation of goods to Kazakhstan.
Kazakhstan has also signed a number of bilateral and multilateral free trade agreements within the Commonwealth of Independent States (CIS). Therefore, trade between the CIS member states is not generally subject to import customs duties in the country of destination, provided that all of the following conditions are met:
- Goods are exported on the basis of a contract between residents of the member states
- Goods are imported from the customs territory of a member state to the customs territory of the other member state
- Imported goods may not leave the customs territory of a member state
- Imported goods are confirmed with a certificate of origin from a member state (ie., ST-1)
Exports of goods are generally subject to zero-rated VAT and also exempt from customs duties and excise taxes, unless the customs legislation specifically provides otherwise.
According to PricewaterhouseCoopers Doing Business Guide, the Kazakhstan customs legislation along with international agreements envisage a number of customs regimes with tax and duty effects, which generally provide for a claw back or suspension of import/export customs duties, VAT and excise taxes including: processing within the customs territory; processing for free circulation processing outside the customs territory; free warehouse.
The 'temporary import' customs regime may provide for the full or partial exemption from import VAT and import customs duties. Generally, the term of the 'temporary import' customs regime may not exceed three years.
There are certain other customs exemptions from import VAT and/or customs duties envisioned by the Kazakhstan tax and customs legislation.
Non-tariff barriers
As part of the non-tariff regulations, the Kazakhstan customs legislation prescribes that certain types of imported goods must comply with local quality and technical standards and must have a certificate of conformity to such standards.
Specific restrictions (bans, quotas, licensing, registration, etc.) may apply to the import or export of certain goods, such as uranium, ozonous products, special-purpose hardware, oil products, weapons, etc.
Labelling and packaging
All products sold in Kazakhstan must include relevant information about the product in the Kazakh language. It is also recommended that bulk shipments also contain basic information written in Kazakh as the country’s official language. Russian may also be used as an additional language but Kazakh labels are mandatory.
Goods should be securely packed, having due regard to the nature of the goods, means of transport and likely climatic conditions. It is important to take into account the specifics of the Kazakh market, including its often extreme climatic conditions (both hot and cold) and rough handling on roads, railways and ports.
Outer containers should bear the consignee's mark and port mark and should be numbered (to accord with packing list), unless the contents can be otherwise readily identified. The contract number must be shown on the outside of containers.
Accurate documentation is vital in Kazakhstan. Failure to comply with the documentation specified by your importer/customer can lead to lengthy delays and additional expense.
Special certificates
A very wide range of goods require a certificate of conformity to allow customs clearance. Some of these requirements are mandatory while some are voluntary.
Austrade Moscow can provide detailed information on certification processes and introductions to service providers who can assist. Details should be clearly confirmed with your importer or customer.
The list of products requiring certification includes the following:
- agricultural and foods products
- toys and children’s clothing
- package materials
- prams
- electrical and telecommunications equipment
- transportation equipment and tools
- pharmaceuticals and healthcare products
- arms, perfumes and gold & silver jewellery
- construction materials and wood
In November 2010, the members of the Customs Union (Kazakhstan, Belarus and Russia) signed an agreement on common principles and rules for technical regulations. According to the laws of Kazakhstan, imported products of foreign manufacture must meet quality standards and therefore are subject to certification. This is a procedure by which authorities certify in writing the conformity of products and services to the requirements of national legislation.
The trilateral agreement between the members of the Customs Union is aimed at harmonising the laws of the states – Russia, Belarus and Kazakhstan – as well as removing technical barriers to trade. Currently the signatory countries are working to create a single form of certificates and declarations that will be valid for all three markets. As a result, in the near future exporters that obtain valid certification in either Kazakhstan, Russia or Belarus will be able to access the entire Customs Union market without duplicating certification procedures.
The list of goods subject to certification will be valid until January 2012, when the common technical regulations of the Customs Union are due to take effect.
Methods of quoting and payment
Quotes in US dollars (or sometimes euro) are used in all foreign trade operations while domestic payments are made in the local currency (Kazakh tenge or KZT).
All hard currency settlements with Kazakh companies and organisations should be made through authorised Kazakh commercial banks (to the exporter’s bank). Some exporters prefer the customer to make payment from hard currency accounts held offshore in countries such as the UK, US, Switzerland, Cyprus, Luxembourg, etc.
An increasing number of Kazakh buyers are demanding flexible payment options, mainly revolving credit lines (Kazakhs do not normally use letters of credit due to high local interest rates). Normal precautions should be exercised but trade finance arrangements in the Kazakh market increasingly reflect international norms. Please consult with EFIC if you require advice about trade finance terms in Kazakhstan.
Documentary requirements
Registration with the customs authorities is mandatory to carry out import and export operations in Kazakhstan.
According to PricewaterhouseCoopers Doing Business Guide, in practice, customs clearance can be completed only by Kazakhstan legal entities and registered non-resident legal entities (e.g. a Kazakhstan branch of a non-resident legal entity). While Kazakhstan legal entities can undertake their own customs clearance, registered non-resident legal entities must always use a customs broker for customs clearance purposes.
The customs value is to be estimated by the declarer. In order to confirm the declared information about customs value, the declarer should provide a package of supporting documents. The list of documents necessary to support the declared information is relatively standard and typically includes contracts, invoices, shipping documents, certificate of origin of goods, necessary licenses and permits, conformity certificates, any other documents depending on the specific facts and circumstances.
Kazakh customs authorities carry out strict control over the correctness and reasonableness of determining the customs value and method applied.
Weights and measures
The metric system is used throughout Kazakhstan.