On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Cabinet of Ministers of the Kyrgyz Republic on the establishment and regulation of the Industrial Trade and Logistics complex in the area of the Karasu and Ak-Tilek road checkpoints

The Law of the Republic of Kazakhstan dated September 18, 2024 No. 128-VIII SAM.

      To ratify the Agreement between the Government of the Republic of Kazakhstan and the Cabinet of Ministers of the Kyrgyz Republic on the establishment and regulation of the industrial trade and logistics complex in the area of the Karasu and Ak-Tilek highway checkpoints, signed in Astana on June 9, 2023.

     President

Republic of Kazakhstan  

K. TOKAEV

AGREEMENT between the Government of the Republic of Kazakhstan and the Cabinet of Ministers of the Kyrgyz Republic on the establishment and regulation of an industrial trade and logistics complex in the area of the Ak-Tilek and Karasu road checkpoints

     The Government of the Republic of Kazakhstan and the Cabinet of Ministers of the Kyrgyz Republic, hereinafter referred to as the Parties,

     in accordance with Decision No. 3 of the Fifth Meeting of the Supreme Interstate Council of the Republic of Kazakhstan and the Kyrgyz Republic dated November 27, 2019, paragraph 8 of the Joint Action Plan for the Creation and Operation of an industrial Trade and Logistics complex in the area of the Karasu and Ak-Tilek road checkpoints (hereinafter - ITLK), approved by the Minister of Trade and Integration of the Republic of Kazakhstan and the Minister of Economy and Commerce of the Kyrgyz Republic dated December 7, 2021,

     Noting the existence of significant potential for the development and enhancement of the effectiveness of bilateral cooperation in the field of trade, improvement of investment opportunities and provision of favorable conditions for the establishment and development of established commercial, industrial and logistics platforms,

     Considering the recommendations contained in the Concept for the Creation and Operation of Industrial Trade and Logistics Complexes, signed on August 20, 2021 between the Ministry of Trade and Integration of the Republic of Kazakhstan and the Ministry of Economy and Commerce of the Kyrgyz Republic,

     have agreed on the following:

Chapter 1. On the legal status and governing bodies

Article 1

     The Parties create ITLCS in order to expand cooperation in the field of support and development of production and entrepreneurship, and also contribute to attracting investments, including by concluding investment agreements with investors in accordance with the legislation of the States of the Parties.

     To this end, the Kazakh side will ensure the attraction of investments in the construction of the ITLC infrastructure.

     The parties undertake to attract those investors who have experience in the successful implementation of projects in a similar field of activity.

     ITLC is a complex (center) of trade, economic and investment cooperation, consisting of Kazakh and Kyrgyz parts located on the border adjacent territories of the states of the Parties.

     The main objectives of the creation and operation of the ITLC - ensuring industrial cooperation in the field of warehousing, storage, consolidation, processing, production of new goods and their further sale with effective integration into international commodity distribution systems, as well as the provision of short-term storage services, logistics, rental of retail outlets, pre-sale preparation (calibration, sorting, packaging and packaging, product certification), consolidation and redistribution of goods wholesale shipments, loading and unloading, documentation of export and import operations, legal and financial advice.

     ITLC is a platform for the development of interrelated and complementary industries, related activities aimed at achieving common goals and results.

Article 2

     The Kazakh part of ITLK is under the jurisdiction of the Republic of Kazakhstan.

     The Kyrgyz part of ITLK is under the jurisdiction of the Kyrgyz Republic.

Article 3

     The authorized body coordinating the activities of the Kazakh part of the ITLC is the Ministry of Trade and Integration of the Republic of Kazakhstan.

     The authorized body coordinating the activities of the Kyrgyz part of the ITLC is the Ministry of Economy and Commerce of the Kyrgyz Republic.

     In the event of a change in the official name or transformation of the authorized body of one of the Parties, such Party shall immediately notify the other Party through diplomatic channels and take measures to ensure appropriate succession.

     In order to create an ITLC and its further functioning, the Parties determine the management companies.

     Management companies are established and registered on the territory of the Republic of Kazakhstan and the Kyrgyz Republic, carry out their activities in accordance with the laws of their states, while the term of operation of management companies may not be less than the term of this Agreement.

     Management companies have the right to conclude contracts on their behalf, acquire property and non-property rights and bear obligations, be plaintiffs and defendants in court, arbitration and arbitration court in accordance with the laws of the States of the Parties. Management companies are financially responsible for their obligations within the limits of their property in accordance with the laws of the States of the Parties.

     The Parties are not responsible for the obligations of the management companies, the management companies are not responsible for the obligations of the Parties, except in cases provided for by the legislation of the States of the Parties.

     The functions of management companies include:

     - ensuring the functioning of the ITLC;

     - providing assistance to ITLC participants in obtaining public services based on the "one-stop shop" principle for issuing permits, licenses and certification, as well as in providing advice on the legislation of the States of the Parties;

     - assistance in providing a safe environment for activities on the territory of each part of the ITLC, including support and reduction of possible risks associated with business activities;

     - attracting ITLC participants and organizing their work, as well as attracting investments for the construction of infrastructure facilities, transport infrastructure, water supply, electricity, telecommunications, engineering protection and other utilities, as well as fencing on the territory of each part of ITLC, production facilities, warehouses, trade and exhibition facilities, various business premises, terminals and others buildings and structures (hereinafter referred to as - objects of entrepreneurial activity) on the territory of each part of the ITLC, carrying out activities on the territory of each part of the ITLC for the implementation of industrial, innovative and investment projects;

     - interaction with government agencies on the functioning of the ITLC;

     - carrying out activities for the development and promotion of ITLK;

     - performing other functions that do not contradict the laws of the States of the Parties;

     - assistance in monitoring compliance with the regime by persons and vehicles located on the territory of the ITLC.

     To improve the quality of service provision, the Parties place service centers for participants, including representatives of interested authorized government agencies, on the territory of each part of the ITLC, as well as introduce IT technologies.

Chapter 2. On the location, boundaries of the territory and the area of the ITLC

Article 4

     The ITLC is located on the border territories of the states of the Parties, on both sides of the state border line of the Republic of Kazakhstan and the Kyrgyz Republic, near the checkpoints "Karasu - avtodorozhny" (Republic of Kazakhstan) and "Ak-Tilek - Avtodorozhny" (Kyrgyz Republic), while the Kazakh and Kyrgyz parts of the ITLC are located outside the border strip.

     As the ITLC develops and a special crossing (bridge) is being built connecting the Kazakh and Kyrgyz parts, ITLC will additionally be equipped with multilateral international checkpoints with round-the-clock operation.

     The construction of a special crossing (bridge) connecting the Kazakh and Kyrgyz parts of the ITLK is carried out within three years after the official opening of the ITLK.

     Special crossing (bridge) It is equipped with fencing, security equipment and video surveillance, ensuring control of compliance with the regime of the state border on both Sides.

     When following persons and vehicles, moving goods and other property along a special crossing (bridge), it is not allowed to change the route and mix passenger and traffic flows.

     The construction of a special crossing (bridge) connecting the Kazakh and Kyrgyz parts of the ITLK is carried out at the expense of the Kazakh side, as part of the ITLK project.

     At the same time, the process of designing, building and improving security and video surveillance equipment for a special structure (bridge) is coordinated with the Border Services of the States of the Parties.

     The management of the ITLC and the activities of economic entities on its territory are carried out strictly within its borders, allocated to the territory of the ITLC and equipped with fences and special signs.

Article 5

     The total area of the ITLC is 7.6 square kilometers, of which the area of the Kazakh part is 3.6 square kilometers, and the area of the Kyrgyz part is 4 square kilometers.

     The boundaries and (or) the area of parts of the ITLC are changed by making amendments to this Agreement.

Article 6

     Communication between the Kazakh and Kyrgyz parts of the ITLC is carried out through the existing crossing before the bridge (special crossing) between the two parts of the ITLC is put into operation.

Chapter 3. About the functions and management mode of the ITLC

Article 7

On the territory of each part of the ITLC, the Parties support the development of effective forms of production, scientific and technical, investment, commercial, joint and other types of activities of economic entities registered in accordance with the laws of the States of the Parties that are not prohibited by the legislation of the States of the Parties.

     In case of disagreements on issues related to activities on the territory of each part of the ITLC, they are resolved through consultations and (or) negotiations between the Parties.

     ITLC participants are individual entrepreneurs, individuals and legal entities engaged in the placement and (or) operation of business facilities on the territory of each part of the ITLC, with whom the management company has concluded an agreement to operate as a participant in the ITLC, in accordance with the laws of the States of the Parties.

     The participants of the ITLC have the right to carry out, at their own expense, the construction of the necessary business facilities on the territory of each part of the ITLC of the land transferred to them in accordance with the legislation of the States of the Parties.

     The construction of such facilities on the territory of each part of the ITLC is carried out in accordance with the procedure provided for by the legislation of the States of the Parties and (or) international norms and (or) standards for design and construction.

     ITLC operates with a six-day working week (from 09:00 to 18:00), taking into account national and public holidays (notification of holidays is sent by one Party through official channels to the other Party no later than 72 hours before the date of the holiday).

Article 8

     In order to expand the business development of ITLC participants, the main characteristics of the type of economic activity are:

     1) industrial cooperation, creation of new industries and jobs;

     2) storage and processing of meat and agricultural products;

     3) improvement of logistics and business facilities;

     4) attracting new technologies;

     5) diversification of agricultural production;

     6) movement, storage and processing of agricultural products;

     7) production of consumer goods with a high competitive advantage, including food and agricultural products;

     8) production of new goods and their further sale with effective integration into international commodity distribution systems;

     9) other types of activities that correspond to the objectives of the establishment and operation of the ITLC, subject to compliance with the requirements established by the legislation of the States of the Parties.

     The Participants enjoy the rights and freedoms on the territory of each part of the ITLC, as well as bear the duties established for individuals and legal entities, unless otherwise provided for by the legislation of the States of the Parties and international treaties to which their States are parties.

     On the territory of each part of the ITLC, each Party undertakes to provide the other Party, its individuals and legal entities, as well as individual entrepreneurs, with no less favorable conditions in the field of investment, economic, trade and other relations, no less favorable than the regime provided under the same (similar) relations to its own individuals, legal entities and individual entrepreneurs. entrepreneurs, with the exception of cases stipulated by international treaties to which their States are parties, and the legislation of the States of the Parties.

     Business entities of the States of the Parties manufacturing products on the territory of each part of the ITLC undertake to ensure that these products comply with the requirements established by the legislation of the States of the Parties and international treaties to which their States are parties.

Article 9

     The establishment, reorganization and liquidation of enterprises and organizations of the Kyrgyz Republic located on the territory of the Kazakh part of the ITLC, as well as enterprises and organizations of the Republic of Kazakhstan located on the territory of the Kyrgyz part of the ITLC, are carried out in accordance with the legislation of the State of the Party in whose territory they are registered.

Article 10

     Financing of design, construction and repair works of transport infrastructure, water supply, electricity, telecommunications, engineering protection and other engineering communications, an existing crossing, a point (corridor), administrative management, fencing of the territory and other infrastructure facilities in each part of the ITLC is carried out at the expense of funds attracted by the Kazakh side as investments.

     In order to monitor the construction of the ITLC, the Parties establish a joint commission.

Chapter 4. On taxation and investment regime in the territory of the ITLC

Article 11

     Taxation on the territory of each part of the ITLC is carried out in accordance with the laws of the States of the Parties and international treaties to which their States are parties.

Article 12

     The Parties encourage the desire to develop economic cooperation by increasing the flow of investments, allowing the investor of one State to enter the territory of another State in accordance with the legislation of the latter.

     To this end, the Parties will provide a fair and equitable regime to stimulate the investment climate in each part of the ITLC.

     The investor is provided with:

     - full and unconditional protection of rights and interests;

     - the right to compensation for damage caused as a result of the issuance by state bodies of any act that does not comply with the legislation of the States of the Parties, as well as illegal actions (inaction) of officials of any such body, in accordance with the legislation of the States of the Parties;

     - guarantees of the stability of the terms of contracts concluded between investors and government agencies of the Parties for their entire term.

     As part of the implementation of investment projects in the territory of each part of the ITLC, investors may be provided with investment preferences provided for in accordance with the legislation of the States of the Parties.

     Investments of investors of the States of each of the Parties may not be nationalized, requisitioned or subjected to other measures having such consequences as nationalization or requisition on the territory of each part of the ITLC of the other Party, except in cases provided for by the legislation of the States of the Parties.

Chapter 5. On currency regulation, currency control, banking and insurance activities

Article 13

     Relations related to currency transactions are regulated in accordance with the laws of the States of the Parties.

     Banks or other organizations established in the territories of the Kazakh and Kyrgyz parts of the ITLC provide services in accordance with the legislation of the States of the Parties.

     The import/export of cash by individuals to/from the Kazakh part of the territory of the Republic of Kazakhstan is carried out in accordance with the requirements established by the legislation of the Republic of Kazakhstan for the import/export of cash by individuals to /from the territory of the Republic of Kazakhstan.

     The import/export of cash by individuals to/from the Kyrgyz part of the territory of the Kyrgyz Republic is carried out in accordance with the requirements established by the legislation of the Kyrgyz Republic for the import /export of cash by individuals to /from the territory of the Kyrgyz Republic.

Article 14

     The establishment of banks or their subdivisions, as well as their activities, are carried out, regulated and subject to control and supervision in accordance with the procedure established by the legislation of the States of the Parties.

Article 15

     At enterprises, institutions and organizations located on the territory of each part of the ITLC, insurance contracts are concluded in accordance with the procedure established by the legislation of the States of the Parties.

Chapter 6. Procedure for controlling the movement of persons, goods (cargoes) and vehicles

Article 16

     The passage of persons, vehicles, goods (cargoes) and other property to/from the ITLC is carried out in accordance with the legislation of the States of the Parties and the provisions of international treaties.

     Entry and exit to/from the territory of the ITLK of persons, goods (cargo), vehicles are carried out through existing checkpoints in accordance with the Agreement between the Government of the Republic of Kazakhstan and the Government of the Kyrgyz Republic on the regime of the Kazakh-Kyrgyz state border dated December 25, 2017.:

     There is a Karasu-Avtodorozhny checkpoint in the Republic of Kazakhstan;

     There is an Ak-Tilek-Avtodorozhny checkpoint in the Kyrgyz Republic.

Article 17

     Citizens of the Republic of Kazakhstan and the Kyrgyz Republic legally residing in the territories of the States of the Parties, third-country nationals and stateless persons enter and leave the Republic of Kazakhstan through checkpoints on the state border open to international traffic, using valid documents and documents replacing them on the basis of international treaties to which the States of the Parties are parties, and legislation the States of the Parties in the field of external migration.

     Persons, goods (cargoes) and vehicles move freely within the territory of the ITLC.

Article 18

     The Parties may suspend communication between parts of the ITLC in the event of natural disasters, epidemics and other emergency situations, about which the competent authorities of each of the States of the Parties inform each other in advance.

Article 19

In cases of loss or damage of an identity document, a person located on the territory of the ITLC must contact the competent authorities for ensuring security and protecting public order of the State of the Party entering the territory of the ITLC, who, if necessary, in cooperation with the competent authorities of the State of the other Party, promptly confirm his identity and the fact of his lawful presence on the territory ITLK.

Chapter 7. Ensuring security and legal order on the territory of the ITLC

Article 20

     The Parties may place competent security and public order authorities on the territory of their part of the ITLC, as well as, if necessary, organizations engaged in security activities on a contractual basis.

Article 21

     Offenses and crimes committed on the territory of each part of the ITLC are subject to the jurisdiction of the competent authorities for ensuring security and protecting public order in the territory of which they were committed, in accordance with the legislation of the States of the Parties.

     In accordance with the laws of the States of the Parties and international treaties to which their States are parties, upon their agreement, materials on offenses and crimes may be transferred under the jurisdiction of state bodies for ensuring security and protecting public order of the other Party.

Article 22

     The competent authorities for ensuring security and protecting public order of the Parties shall cooperate and exchange relevant information in accordance with the laws of the States of the Parties and international treaties to which their States are parties.

     When investigating offenses and crimes on the territory of each part of the ITLC, the competent authorities for ensuring security and protecting public order mutually provide the necessary and feasible assistance within their competence.

Article 23

     In order to conduct effective control, the Parties will take measures to establish and ensure fencing along the perimeter of the border, equipped with a monitoring system and lighting devices.

Chapter 8. On sanitary, veterinary and phytosanitary control in the territory of ITLK

Article 24

     The Parties in the territory of each part of the ITLC carry out sanitary, veterinary, and phytosanitary control in accordance with the laws of the States of the Parties and international treaties to which their States are parties.

Article 25

     The relevant authorities of the Parties shall implement and strengthen mutual cooperation in the field of control of infectious diseases, as well as during quarantine phytosanitary and veterinary control of transported and controlled agricultural products, inform each other about the epizootic and phytosanitary conditions, the epidemiological situation and timely measures taken to eliminate them.

Article 26

     Farms and enterprises, regardless of the form of ownership of each of the Parties, engaged in the harvesting, storage, processing and export-import of livestock and plant products on the territory of the ITLC, must comply with sanitary, veterinary and phytosanitary requirements and be under constant official control of authorized state bodies of their Parties in the field of sanitary, veterinary and phytosanitary measures in accordance with the laws of the States of the Parties and international treaties to which their States are parties.

Chapter 9. About the issues of labor activity on the territory of ITLK

Article 27

     Labor activity in the territory of each part of the ITLC is regulated by the legislation of the States of the Parties and international treaties to which their States are parties.

Chapter 10. On dispute resolution, entry into force, termination and amendment of the Agreement

Article 28

     Disputes concerning the interpretation and application of the provisions of this Agreement, as well as the settlement of the consequences of unforeseen and insurmountable circumstances (circumstances of force majeure), shall be resolved through consultations or negotiations between the Parties.

     By mutual agreement of the Parties, amendments and additions may be made to this Agreement, which are formalized in separate protocols that are an integral part of the Agreement.

Article 29

     This Agreement shall enter into force on the date of receipt, through diplomatic channels, of the last written notification that the Parties have completed the internal procedures necessary for its entry into force.

     The termination of this Agreement will not affect the activities and projects initiated within the framework of the implementation of this Agreement and not completed before its termination.

     Termination of this Agreement is not a legal basis for review by individuals, legal entities and individual entrepreneurs or their unilateral non-compliance with contractual obligations arising in connection with this Agreement.

     This Agreement is concluded for a period of 25 (twenty-five) years and is automatically extended for five-year periods, unless no later than 6 (six) months before the expiration of the initial or any subsequent period, neither Party notifies the other Party through diplomatic channels of its intention not to extend this Agreement.

     Done in Astana on June 9, 2023, in two copies, each in the Kazakh, Kyrgyz and Russian languages, all texts being equally authentic. In case of discrepancies in the interpretation and application of this Agreement, the Parties shall refer to the text in Russian.

For the Government

Republic of Kazakhstan

For the Cabinet of Ministers

Of the Kyrgyz Republic

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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