On ratification of the Free Trade Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan

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Law of the Republic of Kazakhstan dated May 8, 1998 No. 224

Approve the agreement on free trade between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan, signed in Almaty on June 2, 1997.

President Of The Republic Of Kazakhstan

Free Trade Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan

(Bulletin of international treaties of the Republic of Kazakhstan, 1999, No. 4, Article 69) (entered into force on May 16, 1998 - "Bulletin of diplomacy", Special Issue No. 2, September 2000, page 72)

The Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan, hereinafter referred to as the parties, seeking to develop trade and economic cooperation between the Republic of Kazakhstan and the Republic of Uzbekistan on the basis of equality and mutual benefit, guided by the provisions of the Treaty on the creation of a single economic space, taking into account the existing integration economic ties of the Republic of Kazakhstan and the Republic of Uzbekistan and the mutual replenishment of the economies of the two states, recognizing that the free movement of goods and services requires the implementation of mutually agreed measures, the Republic of Kazakhstan and the Republic of Uzbekistan, confirming their adherence to the principles of the General Agreement on tariffs and trade (TSBK) and the World Trade Organization (WTO:

Article 1

The parties, guided by the principles of equality, mutual benefit and interest, will develop and expand trade and economic relations between subjects of economic activity on the basis of direct economic relations, regardless of their types of ownership, in compliance with the actual legislative acts in the states of the parties.  Each of the parties renounces actions that harm the other party.

Article 2

1.the parties offer each other a free trade order. The parties shall not apply any applicable customs duties, taxes and fees, except for fees for customs clearance of export and/or import of goods originating from the customs territory of one party state and intended for the customs territory of the other party state, as well as quantitative restrictions. Exclusions from the specified trade procedure for the agreed nomenclature of goods are drawn up by the Protocol, which is an integral part of this Agreement. 2. The parties shall annually develop and agree on a general list of exclusions from the free trade order in accordance with paragraph 1 of this article, as well as methods of applying such exclusions. 3.Goods leaving the customs territory of the states of the parties for the purposes of this Agreement and during its validity shall be understood as goods established by the rules defining the country of origin of goods dated September 24, 1993, approved by the decision of the Council of Heads of Government of the Commonwealth of Independent States.

Article 3

Each party shall: not impose, directly or indirectly, internal taxes or fees on goods of the other party subject to the scope of this agreement, exceeding the relevant taxes or fees on similar goods of domestic production or goods originating from third countries; shall not impose any special restrictions or requirements relating to the import or export of goods subject to the scope of this Agreement, which in similar cases do not apply to similar goods of domestic production or goods originating from third countries; the state of the other party shall not apply any other provisions in respect of collection, transshipment, storage, transportation of goods departing from the territory of the other party, as well as in respect of payments and transfer of payments, than the provisions applicable in respect of its own goods or goods departing from third countries in such cases.

Article 4

The parties shall refrain from applying discriminatory measures or measures to them in relation to the other party in mutual trade, which impose quantitative restrictions on the export and/or import of goods under this Agreement. The parties may unilaterally impose quantitative or other special restrictions, but only at a reasonable level and strictly for a certain period. These restrictions must be of a very separate nature and may only apply in cases stipulated by agreements within the framework of the CTBC/WTO. The party applying the restrictions in accordance with this article must, as far as possible, provide the other party with detailed information about the main reasons, forms and estimated deadlines for introducing the application of these restrictions, after which consultations are appointed. Decisions taken during consultations are drawn up by the relevant documents.

Article 5

This Agreement provides for measures of state regulation generally accepted in international practice in the field of foreign economic relations, which any of the parties considers necessary to protect their own vital interests, or which it considers unconditionally necessary for the implementation of international treaties to which it is a party or intends to become a party, if these measures: protect the life and health of people, the environment, the preservation of animals and plants; protect public morality and public order, ensure national security; trade in weapons, ammunition and military equipment; supply of decomposing materials and sources of radioactive substances, neutralization of radioactive waste; trade in gold, silver or other precious metals and precious stones; preservation of irreplaceable natural resources; violation of the balance of payments; restriction of exports of products whose domestic prices are lower than the world level as a result of the implementation of state support programs; protection of industrial and intellectual property; protection of national values; measures to be taken in times of war or in other emergency situations in international relations; actions to perform tasks based on the UN Charter to maintain international peace and security; and the right to apply unilaterally if applicable to other circumstances provided for in Article XX of the TSBK. In addition to cases of an emergency nature, the party intending to introduce measures in accordance with this article must provide the other party with detailed information about the main reasons, forms and estimated deadlines for introducing preliminary restrictions before the start of applying such measures, after which consultations are appointed.

Article 6

All settlements and payments on trade and economic cooperation between economic entities of the states of the parties will be carried out on the basis of relevant interbank agreements.

Article 7

The parties will exchange information on internal legal regulation of foreign economic relations, including customs statistics regarding stable - based parties, including trade, investment, taxation, banking and insurance activities, and other transport and customs activities the parties will inform each other in a timely manner about changes in national laws that may contribute to the implementation of this Agreement. The authorized bodies of the Contracting Parties agree on the procedure for such information exchange. The provisions of this article shall: establish that the competent authorities of any party are obliged to provide information that cannot be obtained by law or during the usual administrative practice of one of the parties; do not transmit any trade, business, industrial, commercial or professional secret or information that discloses the trade process or other information whose disclosure is contrary to the state interests of the parties.

Article 8

The parties recognize that business practices do not meet the objectives of this Agreement and are subject to the following methods: agreements between enterprises that have set the goals of hindering or restricting competition in the territory of the states of the parties or violating the conditions created for IT, decisions made by the Association of enterprises and general methods of business practice; it undertakes to prevent and eliminate the actions of one or more enterprises, taking advantage of their dominant position, limiting competition in the entire territory or in a significant part of the states of the parties.

Article 9

When implementing tariff and non-tariff regulation measures of bilateral economic relations for the exchange of statistical information, customs procedures, the parties will use the unified nine-digit commodity nomenclature of foreign economic activity (FEA TN), based on a harmonized system of description and coding of goods and the Quranic tariff and statistical nomenclature of the European Economic Union. At the same time, the parties, if necessary, for their own needs, develop a product nomenclature beyond nine characters. The introduction of the Reference version of the commodity nomenclature is carried out on a mutually agreed basis through representative offices in the relevant international organizations.

Article 10

The parties agree that compliance with the principles of transit is the most important condition for achieving the goals of this Agreement and a significant link in the process of their inclusion in the international system of Labor sharing and integration. In this regard, each of the parties shall ensure the unhindered transit through its territory of goods originating from the customs territory of the state of the other party and/or a third country and intended for the customs territory of the state of the other party or any third country, and shall provide exporters, importers or carriers to its exporters, importers or carriers, it will provide all available tools and services necessary to provide them on conditions that are not inferior to the same tools and services provided to importers or carriers. The procedure and conditions for the passage of goods across the territories of the states of the parties are regulated in accordance with the international rules of Transportation.

Article 11

Each party shall not allow the re-export of unauthorized goods with respect to the export of the other party in which these goods leave its territory, shall apply tariff and/or non-tariff measures of regulation and/or provide foreign economic benefits when exporting them from its customs territory. The parties establish a list of goods prohibited for unauthorized re-export, as well as exchange lists of goods subject to state regulatory measures. Re-export of these goods to a third country may be carried out with written consent and conditions determined by the authorized body of the country-state from which these goods originate. In case of non-compliance with these rules, the interested party has the right, after prior consultation with the other party, to unilaterally introduce measures to regulate the export of such goods to the customs territory of the state of the other party, which has allowed re-export without agreement. Re-export is understood as the export of goods leaving the customs territory of the state of one party outside the customs territory of its state by the other party for the purpose of export to a third country.

Article 12

In order to implement a coordinated Export Control Policy in relation to a third country, the parties will regularly hold consultations and take mutually agreed measures to create an effective export control system.

Article 13

The provisions of this Agreement shall replace the provisions of previously concluded agreements between the parties to the extent that the latter either do not correspond to the former or are similar to it.

Article 14

In this Agreement, nothing prevents any of the parties to which this party is a party from establishing relations with third countries, fulfilling its obligations under any international agreements, if these relations and obligations do not contradict the purposes and provisions of this Agreement.

Article 15

Each party, in accordance with its laws and international obligations, grants equal legal rights, including judicial protection of rights and protection of legitimate interests of subjects of economic activity of the other party.

Article 16

Disputes between the parties regarding the interpretation or application of the provisions of this agreement will be resolved by negotiation or other means acceptable to the parties.  The parties will strive not to create tense situations in mutual trade.

Article 17

If necessary, by agreement of the parties, amendments and additions may be made to this Agreement.

Article 18

This Agreement shall enter into force after the date of the last declaration of the parties on the implementation of the internal state procedures necessary for this and shall remain in force until six months have elapsed since the date of sending a written statement of intent by one of the parties to the other party wishing to terminate its validity.

After the termination of this agreement, its provisions shall apply to contracts concluded but not executed between economic entities of the states of the parties during the period of its validity for a period not exceeding five years.

Created in Almaty on June 2, 1997 in two copies, each in Kazakh, Uzbek and Russian, and all texts are equally valid.

In order to clarify the provisions of this Agreement, the text in Russian has priority power.

For the Government of the Republic of Kazakhstan for the Government of the Republic of Uzbekistan

Protocol to the Free Trade Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan dated June 2, 1997 on exclusions from the Free Trade Order

Plenipotentiaries of the Republic of Kazakhstan and the Republic of Uzbekistan have drawn up this protocol on the following:

Article 1

The exceptions provided for in Article 2 of the Free Trade Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan dated June 2, 1997 are: for goods imported from the Republic of Uzbekistan to the Republic of Kazakhstan in accordance with Annex N 1; for goods exported from the Republic of Uzbekistan to the Republic of Kazakhstan in accordance with Annex n 2.

Article 2

1.in accordance with Article 1 of this protocol, exclusions from the Free Trade Order shall create the most favorable conditions for each other in relation to the goods to which they are distributed. These include: taxes and fees levied on import (with respect to the goods specified in Annex N 1) and export (with respect to the goods specified in Annex N 2), including the method of collecting such taxes and fees; rules relating to customs clearance of transit, transportation, collection, transshipment and the provision of such services; methods of payment and transfer of payments; import licenses; related to the rules related to the sale, purchase, transportation, distribution and use of goods on the domestic market.  2. the provisions of Paragraph 1 of this article shall include: priorities transferred by either party to third countries for the purpose of establishing a customs union or free trade zone, or as a result of the establishment of such a union or zone; priorities transferred to developing countries in accordance with the laws of the parties; priorities transferred to neighboring countries for the purpose of facilitating trade along the border; it does not apply to the priorities that the parties provide to each other in accordance with special agreements.

Article 3

The parties comply with the application of non-tariff regulatory measures in mutual trade in accordance with their laws on licensing and quotas for the export and import of goods (types of work and activities) in force during customs clearance of goods during Export/Import to the customs territories of the states of the parties. At the time of signing this protocol: in the Republic of Kazakhstan - by resolution of the Government of the Republic of Kazakhstan dated March 12, 1996 No. 298; In the Republic of Uzbekistan-resolution of the Cabinet of Ministers of the Republic of Uzbekistan dated July 25, 1995 N 287 3, 4, 5, 6, 8, 9-restrictions in the field of non-tariff regulation of the export and import of goods (types of work and services) established by annexes and Annex 2 to resolution N 219 of June 18, 1996 remain in force.

Article 4

1.this protocol is an integral part of the Free Trade Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan dated June 1997 and enters into force simultaneously with this Agreement. 2.this Protocol shall be in force until the period of conclusion of the new protocol provided for by Article 2 of the Free Trade Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan in June 1997.

Created in Almaty on June 2, 1997 in two original copies, each in Kazakh, Uzbek and Russian, and all texts are equally valid. For the purposes of explaining this protocol, the text in Russian is used.

For the Government of the Republic of Kazakhstan for the Government of the Republic of Uzbekistan

Appendix N 1 to the protocol of the Free Trade Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan dated June"___", 1997 on exclusions from the Free Trade Order

List of goods subject to exclusion from the free trade order when importing from the Republic of Uzbekistan to the Republic of Kazakhstan

Product name FEA code of the Customs Code Rice 1006 alcoholic and non-alcoholic beverages group 22 (except 2201, 2202 and 2209) Tobacco and industrial substitutes group 24

Appendix N 2 to the protocol of the Free Trade Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan dated June"___", 1997 on exclusions from the Free Trade Order

List of goods subject to exclusion from the free trade order when exporting to the Republic of Kazakhstan from the Republic of Uzbekistan

Product name FEA code natural honey 0409 potatoes 0701 cotton seeds (for sowing), 120720100 other seeds 1207209100 cotton lint 140420000 vegetable oil 1507, 1512, 1516 sugar 1701, 1702 feed from oilseeds, flour and 2304, 2306, 230990 feed and other residues of vegetable oil precipitate (including cotton seeds) sulfuric acid 2807 medicinal cotton, gauze, bandages and 3005 similar (medical) products mineral or chemical, nitrogen 3102, 3103 or phosphorus additives varnishes, cheeses and pigments 3203-3210 skin, raw materials for non-tanned skin 4101-4103, 4104 4106,4108, 4109 products made of natural and artificial skin 4301, 4302 paper and cardboard, paper 4801, 4803, 4806 mass and cardboard 4809, 4812, 4813 4816, 4818, 4820 cotton fiber and cotton 5201, 5202, 5203 waste medicinal cotton, bottom and textiles 560121, 560130 pollen, nodules precious and semi-precious stones, 7103, 7104, 7106 precious metals 7107, 7108, 7109 7110, 7111, 7112 copper products, copper 7405,7409, 7413-7419, waste and scrap 7404 aluminum re-alloy 760120900 aluminum products, 7603-7614,7615 kitchen products, kitchen and other 7616, 7602 products (except for anti-burn coated dishes), aluminum waste and scrap other non-precious metals 8104, 8105, 8108, (magnesium, cobalt, titanium, 8109, 8111, 8112 zirconium, manganese, beryllium, (Chromium, germanium, vanadium from 811291100-811299900) other) non-ferrous scrap and 810191900, 810291900, waste 810310900, 810420000, 810510900, 810600100, 810700100, 810810900, 810910900, 811000190, 811000190, 811211000, 811220390, 811230100, 811240190, 811291390, 811300100 coated conductors 8544 works of Art, 9701, 9702, 9703 collection items and 9704, 9705, 9706 antiques

President

Republic of Kazakhstan

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