On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia on Trade and Economic Cooperation in the field of petroleum products supplies to the Republic of Armenia

The Law of the Republic of Kazakhstan dated June 11, 2022 No. 127-VII SAM.

      To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia on trade and economic cooperation in the supply of petroleum products to the Republic of Armenia, signed in Nur-Sultan on July 16, 2020.  

     President of the Republic of Kazakhstan

K. TOKAEV

Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia on Trade and economic cooperation in the field of petroleum products supplies to the Republic of Armenia    

     (Entered into force on July 23, 2022, Bulletin of International Treaties of the Republic of Kazakhstan 2022, No. 3, Article 14)

      The Government of the Republic of Kazakhstan and the Government of the Republic of Armenia, hereinafter referred to as the Parties,  

      guided by the Treaty on the Eurasian Economic Union of May 29, 2014,  

     based on the interest in deepening mutually beneficial cooperation in the field of petroleum products supplies and advancing along the path of Eurasian economic integration,

     have agreed on the following:

Article 1  

     This Agreement defines the terms of trade and economic cooperation between the Government of the Republic of Kazakhstan and the Government of the Republic of Armenia for the supply of goods classified in Group 27 of the Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union, with the exception of oil, electricity, natural gas and coal (hereinafter referred to as goods classified in Group 27 of the EAEU Customs Code) to the Republic of Armenia.

     Cooperation between the Parties in the supply of goods classified in Group 27 of the EAEU Customs Code of Foreign Economic Activity is based on the protection of mutual interests and should not prejudice the interests of each of the Parties' states.

      Goods classified in Group 27 of the EAEU Customs Code are subject to customs declaration by the Parties in accordance with Chapter 43 of the Customs Code of the Eurasian Economic Union.

Article 2  

     1. The Parties shall appoint competent authorities to coordinate activities and monitor the implementation of this Agreement.:

     from the Kazakh side - the competent authority in the field of hydrocarbons and the production of goods classified in Group 27 of the Customs Code of the EAEU;

     from the Armenian side - the Ministry of Territorial Administration and Infrastructures of the Republic of Armenia.

     2. Authorized organizations that ensure the planning and organization of transportation of goods classified in the EAEU Group 27 of the Customs Code of Foreign Economic Activity under this Agreement are:

     Joint Stock Company "National Company Kazakhstan Temir Zholy" (hereinafter - JSC NC KTZ);

     KTZ-Freight Transportation Joint Stock Company (hereinafter referred to as the national cargo carrier);

     Joint Stock Company "National Company Aktau International Commercial Sea Port" (hereinafter - Aktau Port);

     Limited Liability Partnership "Port Kuryk" (hereinafter - Port Kuryk).

     3. In the event of a change in the competent authorities, authorized organizations or their names, the Parties notify each other through diplomatic channels.

Article 3

     1. The competent authorities of the Parties annually, by December 1 (first) of the current calendar year, draw up a balance of production, domestic consumption, supply, import and export of goods classified in the group 27 of the Customs Code of the EAEU in the territory of the Republic of Armenia, including the volume of supplies of goods classified in the group 27 of the Customs Code of the EAEU from the Republic of Kazakhstan and the Russian Federation. From the Russian Federation to the Republic of Armenia (hereinafter referred to as indicative balances).

     2. The competent authorities of the Parties shall approve the List of Goods classified in Group 27 of the Customs Code of the EAEU by concluding an interdepartmental Protocol, which shall enter into force from the date of its signing, is not subject to ratification for the Republic of Kazakhstan and does not require the implementation of domestic procedures for entry into force, in accordance with the legislation of the States of the Parties.

Article 4

     1. The Parties, in accordance with this Agreement, create the necessary conditions for economic entities (residents) of the states of the Parties to supply, according to the List of goods classified in Group 27 of the Customs Code of the EAEU, from the territory of the Republic of Kazakhstan to the Republic of Armenia with the involvement of authorized organizations.

     2. With respect to goods classified in the EAEU Group 27 of the Customs Code of Foreign Economic Activity, approved by the List, supplied from the Republic of Kazakhstan to the Republic of Armenia for domestic consumption in the amounts provided for in the indicative balance sheets, the Kazakh side does not levy export customs duties in accordance with Article 28 of the EAEU Treaty.

     3. The supply of goods classified in the EAEU Group 27 of the Customs Code of Foreign Economic Activity, approved by the List, from the Republic of Kazakhstan to the Republic of Armenia in excess of the volumes provided for in the indicative balances for the current calendar year is prohibited.

     The supply of goods classified in the EAEU group 27 of the Customs Code of Foreign Economic Activity that are not approved by the List from the Republic of Kazakhstan to the Republic of Armenia, as well as those not provided for in indicative balances, is prohibited.

      4. In cases of force majeure (shutdown, malfunction, accidents at oil refineries of the Republic of Kazakhstan and/or pipeline transport of the Republic of Kazakhstan) in order to ensure national security and protect the domestic market in accordance with Article 29 of the EAEU Treaty, the competent authority of the Kazakh side, in accordance with the procedure established by the legislation of the Republic of Kazakhstan, has the right to establish temporary restrictions on the export of goods, classified in Group 27 of the EAEU Customs Code of Foreign Economic Activity, from the territory of the Republic of Kazakhstan to the Republic of Armenia.

     The competent authority of the Kazakh side sends a notification through diplomatic channels 20 (twenty) calendar days before the introduction of a temporary restriction on the export of goods classified in Group 27 of the Customs Code of the EAEU from the territory of the Republic of Kazakhstan to the Republic of Armenia, and also informs the competent authority of the Armenian side about this measure.

Article 5

     The competent authority of the Kazakh side monthly, until the 25th (twenty-fifth) day of the month preceding the planned month, based on requests from oil suppliers and the internal balance of production and consumption of petroleum products, approves a plan for the supply of petroleum products from refineries of the Republic of Kazakhstan to the Republic of Armenia in volumes not exceeding the indicative balances.

     If the ratio of the volumes declared by suppliers to the volumes approved in the indicative balance sheets of the Parties is exceeded, the supply plan is distributed in direct proportion to the requests within the limits of the refining volumes of oil suppliers at the refineries of the Republic of Kazakhstan.

Article 6

     1. The shipment of goods classified in the EAEU Group 27 of the Customs Code of Foreign Economic Activity, approved by the List, is carried out through railway stations / ports from oil refineries of the Republic of Kazakhstan, indicating in the delivery plan the name of the departure station (refineries of the Republic of Kazakhstan) and destination, the name of the shipper, cargo and volume of loading.

     2. Transportation of goods classified in Group 27 of the EAEU Customs Code of Foreign Economic Activity, approved by the List, is carried out:

     - through railway checkpoints located on the Kazakh-Russian section of the state border, according to the Train Formation Plan approved annually by the Central Council of Railway Transport of the CIS member States for the current calendar year;

     - through the ports of Aktau/ Kuryk located on the territory of the Republic of Kazakhstan.

     3. Transportation from the Republic of Kazakhstan to the Republic of Armenia of goods classified in Group 27 of the EAEU Customs Code of Foreign Economic Activity, approved by the List, is carried out by rail, sea and road modes of transport.

     4. Applications from business entities of the Parties for transportation are accepted by authorized organizations represented by the national cargo carrier of the Kazakh side, as well as the ports of Aktau and/or Kuryk on the basis of a supply plan for goods classified in Group 27 of the EAEU Customs Code.

     If business entities submit applications for the transportation of goods classified in the EAEU Group 27 of the Customs Code of Foreign Economic Activity that are missing from the supply plan and/or not approved by the List, authorized organizations do not accept applications from business entities for the transportation of goods classified in the EAEU group 27 of the Customs Code of Foreign Economic Activity to the Republic of Armenia.

      5. The competent authority of the Kazakh side, after approving the supply plan for goods classified in Group 27 of the EAEU Customs Code of Foreign Economic Activity, approved by the List, within one working day sends to the authorized organizations of the Kazakh side the monthly supply plan specified in Article 5 of this Agreement.

     6. Authorized organizations of the Kazakh side, based on a monthly supply plan, form a transportation plan for goods classified in the EAEU Group 27 of the Customs Code of Foreign Economic Activity, approved by the List, in accordance with the Rules for the Carriage of Goods by Rail, approved by the authorized body in the field of railway transport of the Republic of Kazakhstan, as well as the current legislation of the Republic of Kazakhstan in the field of merchant shipping.

     7. The state-owned enterprise South Caucasus Railway, upon receipt in the information system of a request from JSC NC KTZ for approval of applications received by them, coordinates the shipment plan of goods classified in Group 27 of the EAEU Customs Code of Foreign Economic Activity, approved by the List, no later than 5 (five) calendar days. After the shipment of the cargo, the national cargo carrier accepts goods classified in Group 27 of the EAEU Customs Code of Foreign Economic Activity, approved by the List, at interstate connecting points and delivers them to their destination stations.

8. Shippers and consignees of the Parties are prohibited from applying for a change in the contract of carriage en route and from changing the declared destination/station (forwarding).

     The recipient has the right to apply for a change in the contract of carriage, destination/station (forwarding) after the arrival of the cargo at the destination station and only on the territory of the destination country.

     9. Shippers and consignees of the Parties confirm the transportation/movement of cargo by means of invoices, in accordance with the tax legislation of the states of the Parties, as well as shipping and other documents, in accordance with Annex 18 of the EAEU Treaty.

     10. By the 15th (fifteenth) day of the month following the reporting month, authorized organizations of the Kazakh side, using information systems, submit a report to the competent authority of the Kazakh side on the volume of shipments according to the delivery plan for the nomenclature of goods of the Unified Tariff and Statistical Nomenclature of Goods.

Article 7

     1. Goods classified in the EAEU HS Group 27 approved by the List, supplied from the Republic of Kazakhstan to the Republic of Armenia, in accordance with this Agreement, without levying export customs duties, are not subject to export to third countries and EAEU countries from the territory of the Republic of Armenia.

      2. If the Kazakh side reveals facts of violation by the Republic of Armenia of the obligations stipulated in paragraph 1 of this Article, the Parties shall conduct negotiations and consultations in accordance with Article 9 of this Agreement.

     If, as a result of negotiations and consultations between the Parties, mutually acceptable agreements are not reached within two (2) calendar months from the date of the Kazakh side sending a written notification to the Armenian side through diplomatic channels about the discovery of the violation, the Kazakh side reserves the right to prohibit and/or suspend and/or reduce duty-free shipments of goods classified in group 27. Customs Code of the EAEU, approved by the List, to the Republic of Armenia, provided for by this Agreement, It also reserves the right to apply measures in accordance with this article.

     Upon the revealed facts of violations provided for in paragraph 1 of this Article, the Armenian side shall pay compensation amounts to the Kazakh side, calculated in US dollars, equivalent to the amount of export customs duties in force in the Republic of Kazakhstan on the date of detection of the violation, in respect of exported and re-exported goods.

     3. The amount of compensation specified in paragraph 2 of this Article shall be paid by the Armenian side in favor of the Kazakh side in monetary form no later than 30 (thirty) calendar days from the date of receipt by the competent authority of the Armenian side through diplomatic channels of a written notification of the discovery of the fact of export and re-export and the demand for payment to the Kazakh side of compensation amounts for exported goods. and re-exported goods.

     4. In case of non-payment by the Armenian side of the amount stipulated in paragraph 2 of this Article, the specified amount is recognized as the state debt of the Republic of Armenia to the Republic of Kazakhstan.

     Interest is accrued on the specified amount of the government debt on a daily basis at the refinancing rate set by the National Bank of the Republic of Kazakhstan 2 (two) business days before the start date of the relevant interest accrual period, and is paid by the Armenian side quarterly. The last interest payment is made simultaneously with the last payment to repay the principal amount of the national debt. The percentages are calculated based on the actual number of days elapsed in a 360-day year (base 365/360).

Article 8

     1. By November 1 (first) of the current calendar year, the Armenian side shall submit to the Kazakh side, in accordance with the established procedure, information on the implementation of indicative balances for 9 (nine) months and on their expected implementation for the current calendar year, as well as proposals for the formation of indicative balances and a protocol for the next calendar year.

     2. The competent authorities of the Parties until 31 (thirty-first) On January 1 of the current calendar year, the statistics of mutual trade of the Republic of Armenia with the Republic of Kazakhstan and third countries are compared with respect to statistics on exports and imports of goods classified in the EAEU Group 27 of the Customs Code of Foreign Economic Activity, approved by the List.

Article 9

     Disputes and disagreements related to the application or interpretation of the provisions of this Agreement, the occurrence of circumstances that create obstacles to the fulfillment by one of the Parties of obligations under this Agreement, are resolved through negotiations and consultations between the Parties.

Article 10

     This Agreement may be amended and supplemented by mutual agreement of the Parties, which are an integral part of it and are formalized by separate protocols that enter into force in accordance with the procedure provided for the entry into force of this Agreement.

Article 11

     1. This Agreement shall enter into force upon the expiration of 30 (thirty) calendar days from the date of receipt by one Party through diplomatic channels of the last written notification by the other Party on the completion of the internal procedures necessary for its entry into force.

     2. This Agreement is valid until December 31 (thirty-first), 2024, at the end of this period, it is automatically extended for 5 (five) years, unless either Party notifies the other Party in writing at least 6 (six) months before the expiration of the original term of this Agreement of its intention to terminate it. action.

     Done in the city of Nur-Sultan on July 16, 2020, in two original copies, each in the Kazakh, Armenian and Russian languages, all texts being equally authentic.

     In case of discrepancy between the texts of this Agreement, the Parties refer to the text in Russian.

For the Government    

Republic of Kazakhstan

For the Government    

Republic of Armenia

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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