List of specific service obligations
20.03.2023
As amended on: 06/23/2015
Report, June 23, 2015
Report of the working group on the accession of the Republic of Kazakhstan
List of specific service obligations
List of exemptions from MFN in accordance with Article II
Application
As indicated in paragraph 1176 of the Report of the Working Group on the Accession of the Republic of Kazakhstan (WT/ACC/KAZ/93), the list of specific obligations on services as a result of negotiations between the Republic of Kazakhstan and WTO members is attached to the Protocol on the Accession of the Republic of Kazakhstan and is presented below.
Delivery method(s): (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of individuals
Sector or subsector
Restrictions on market access
Restrictions on the national regime
Additional obligations
In this List of Specific Obligations (hereinafter referred to as the "List"):
-the asterisk (*) means "part";
-CPC codes shown in parentheses for sectors/subsectors of services are references to the Preliminary Classifier of the Main UN Product (Statistical Papers Series M No. 77, Provisional Central Product Classification, Department of International Economics and Social Affairs, Statistical Office of the United Nations, New York, 1991). (**) – indicates that a particular service is only part of the total range of activities covered by the relevant CPC code (as specified in MTN.GNS/W/120).
I. HORIZONTAL COMMITMENTS
All sectors/subsectors included in this List
Subsidies
(1), (2), (3), (4) Obligations do not apply to:
- Special rights and privileges of groups of individuals and regions that are socially and economically disadvantaged;
- Government support related to research and development;
- State support aimed at the development of national culture and history.
Access to subsidies and other forms of state support can be provided only to legal entities of the Republic of Kazakhstan or citizens of the Republic of Kazakhstan[1].
The provision of services or their subsidization within the public sector is not a violation of this obligation.
Services purchased by subsurface users under investment contracts
(1), (2), (3), (4)
When carrying out subsurface use operations:
- Kazakhstan may require investors to purchase up to 50% of such services from legal entities of the Republic of Kazakhstan when purchasing services.
- Within 6 years, when engaging a subcontractor through a tender procedure, the investor must provide for the provision of a 20% conditional discount for a legal entity of the Republic of Kazakhstan, in which at least 75% of qualified employees[2] subcontractors are citizens of the Republic of Kazakhstan, provided that the legal entity of the Republic of Kazakhstan meets the standards and quality characteristics set out in the tender documentation.
- After 6 years, the investor must provide for a 20% conditional discount for any legal entity of the Republic of Kazakhstan in which at least 50% of the subcontractor's qualified employees are citizens of the Republic of Kazakhstan, provided that the legal entity of the Republic of Kazakhstan meets the standards and quality characteristics set out in the tender documentation.
Land operations
(3), (4) The following types of land plots may not be privately owned:
1) main lines, railway lines and public roads;
2) territories of common use in cities, villages, etc., with the exception of land plots occupied by buildings and structures that are privately owned and necessary structures for their maintenance.
The right of permanent land use is granted to state land users.
(3), (4) There are no restrictions on private ownership of land used for construction sites, or already located under industrial or other buildings, including residential buildings (structures), or complexes, including land intended for building maintenance (municipal structures).
Obligations are not assumed with respect to private ownership of land used for farming/agricultural production and afforestation purposes. Foreigners may be granted the right to temporary land use for the purposes of farming/agricultural production for a period of no more than 10 years.
Commercial presence
(3) Commercial presence is permitted in the form of a legal entity of the Republic of Kazakhstan, branches or representative offices established in the Republic of Kazakhstan by a legal entity of another Member.
However, representative offices of a legal entity of another Member and non-governmental
organizations are not allowed to provide services on a commercial basis in the territory of the Republic of Kazakhstan.
(3) There are no restrictions, except for the Specific Sectoral Obligations specified in Part II below.
Entry and temporary stay of individuals
(4) No obligations are accepted, except for entry and temporary stay measures:
1. Intra-corporate transfers of the following individuals:
a) managers;
b) managers;
c) specialists.
2. Business visitors.
1. Intra-Corporate Transfers (IOC) - managers, managers and specialists, as defined below, temporarily transferred to provide services by a Member's legal entity established in Kazakhstan, carrying out this intra-corporate transfer. Hiring VKP as managers and specialists must meet the requirements of the economic feasibility test[3].
At the end of the five-year period after Kazakhstan's accession to the WTO, the economic feasibility test (CHP) will not be applied[4].
(a) Managers are persons holding senior positions within a legal entity who:
- directly manage the organization;
- define the goals and policies of the organization;
- have broad decision-making powers;
- receive only general guidance or instructions from the Board of Directors or shareholders of the organization.
The managers themselves do not directly perform tasks related to the actual provision of the service or the organization's services.
(b) Managers are persons holding senior positions within a legal entity who have high professional qualifications and experience working as a manager in the relevant industry; and:
- manage the organization, department, or management of the organization;
- manage and control the work of other senior professional or managerial employees;
- have the right to hire and dismiss, recommend the hiring, dismissal or other actions of staff;
- receive only general guidance or instructions from higher-level managers, the Board of Directors or shareholders of the organization.
They do not include employees who directly perform the functions necessary for the provision of services.
The total number of foreign managers should not exceed 50% within each service provider, which has at least 3 people.
c) Specialists – persons employed by a legal entity of another Member who possess a high level of special and (or) unique knowledge and skills, significant professional experience in a particular industry or science, essential for the provision of services in the field of this organization, the effective use of research equipment, advanced techniques or methods of their management. When evaluating such knowledge, not only organization-specific knowledge is taken into account, but also the availability of a high level of qualifications necessary to carry out work or trade requiring specific technical knowledge, including membership in licensed or accredited/professional associations.
The total number of foreign specialists should not exceed 50% within each service provider, which has at least 3 people.
As part of the intra-corporate transfer, entry and temporary stay of individual members will be allowed for a period of three years[5], based on permits issued annually by the authorized body, provided that the company fulfills one of the following requirements:
i) offer training, retraining or advanced training courses for its Kazakhstani employees on the qualifications necessary for the subsequent replacement of foreign labor; or
ii) to create additional jobs for Kazakhstani workers.
The above categories of persons must have at least one year of work experience in a company that represents a legal entity of another Member and within which a transfer to Kazakhstan is carried out.
2. Business visitors.
Persons who do not reside in the territory of the Republic of Kazakhstan and are representatives of a Member's service provider, who enter the territory of Kazakhstan in order to:
- negotiate the sale of the services of this provider, enter into a service sale agreement, or participate in business meetings; or
- establish a commercial presence of the service provider; however, these representatives should not be involved in the direct supply of services to the public or supply these services themselves, nor should they receive any remuneration from a source located within Kazakhstan.
The time period for the temporary stay of the specified category of persons should not exceed 90 days.
(4) No obligations are accepted, except for measures in relation to the categories of individuals indicated in the column on market access.
II. SPECIFIC SECTORAL COMMITMENTS
1. BUSINESS SERVICES
A. Professional services
(a) Legal services (consultations, representation, and participation in arbitration and conciliation proceedings) under the laws of the jurisdiction where the service provider is qualified as a lawyer and under international law, with the exception of:
- notary services
- Criminal legislation of the Republic of Kazakhstan (part of CPC 861*)
(1) There are no restrictions.
(2) There are no restrictions.
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