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ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of October 1, 2019 No. 728

About approval of Rules (technique) of pricing on holodnokatany, hot-rolled and galvanized steel by the Commodity Nomenclatures of Foreign Economic Activity codes 7208, 7209, 7210, 7225

According to the subitem 3) of Item 10 of article 10 of the Law of the Republic of Kazakhstan of July 5, 2008 "About transfer pricing" the Government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules (technique) of pricing on holodnokatany, hot-rolled and galvanized steel by the Commodity Nomenclatures of Foreign Economic Activity codes 7208, of 7209, of 7210, 7225.

2. To impose control of execution of this resolution on the Ministry of the industry and infrastructure development of the Republic of Kazakhstan.

3. This resolution becomes effective since January 1, 2009 and is subject to official publication.

Prime Minister of the Republic of Kazakhstan

A. Mamin

Approved by the Order of the Government of the Republic of Kazakhstan of October 1, 2019 No. 728

Governed (technique) of pricing on holodnokatany, hot-rolled and galvanized steel by the Commodity Nomenclatures of Foreign Economic Activity codes 7208, of 7209, of 7210, 7225

General provisions

1. These rules (technique) of pricing on holodnokatany, hot-rolled and galvanized steel by the Commodity Nomenclatures of Foreign Economic Activity codes 7208, of 7209, of 7210, 7225 (further - Rules) establish procedure for determination (calculation) for transaction price (realization) when making export transactions on purchase and sale of holodnokatany, hot-rolled and galvanized steel by the Commodity Nomenclatures of Foreign Economic Activity codes 7208, of 7209, of 7210, 7225.

2. Action of these rules extends to supply of holodnokatany, hot-rolled and galvanized steel on the conditions specified in these rules.

The terms and determinations used in these rules

3. In these rules the following terms and determinations are used:

1) price range - number of values of market prices limited minimum and maximum to values of the market prices determined as a result of application of one of methods of determination of market prices or sources of information according to the procedure, established by the Law of the Republic of Kazakhstan of July 5, 2008 "About transfer pricing" (further - the Law);

2) differential - the amount of adjustment applied to reduction in comparable economic conditions of transaction price or the price from information source according to the Law and these rules;

3) bases of delivery - the conditions of the foreign trade transaction providing distribution between the seller and the buyer of obligations on promotion of goods, execution of the relevant documents and payment of transportation expenses, determination of the moment of transition from the seller to the buyer of the property right to goods, risk of accidental damage or loss of goods, and also the delivery date;

4) the galvanized steel (covered with branded zinc) - the flat-rolled products from iron or steel plated with electroplated or other coating;

5) holodnokatany steel - flat-rolled products from iron or steel, holodnokatany (pressed out in cold condition), not plated, without electroplated or other coating;

6) the Commodity Nomenclature of Foreign Economic Activity code 7208 - flat-rolled products from iron or not alloyed steel 600 mm wide or more, hot-rolled, not plated without electroplated or other coating;

7) the Commodity Nomenclature of Foreign Economic Activity code 7209 - flat-rolled products from iron or not alloyed steel 600 mm wide or more, holodnokatany (pressed out in cold condition not plated without electroplated or other coating;

8) the Commodity Nomenclature of Foreign Economic Activity code 7210 - flat-rolled products from iron or not alloyed steel 600 mm wide or more, plated, with electroplated or other coating;

9) the Commodity Nomenclature of Foreign Economic Activity code 7225 - flat-rolled products from other types alloyed staly 600 mm wide or more;

10) the technical specification - additional appendix to the contract in which the main delivery conditions are approved (goods, amount, term, cost, goods quality);

11) the corresponding market - the market of appointment (delivery) of holodnokatany, hot-rolled and galvanized steel in which market price, or the market based on which in the market of appointment (delivery) of holodnokatany, hot-rolled and galvanized steel market price is objectively created and determined is created;

12) hot-rolled steel - flat-rolled products from iron or steel, hot-rolled, not plated, without electroplated or other coating;

13) CIS FOB Black Sea - the prices published by information source the Metal Bulletin magazine which reflect the prices of holodnokatany, hot-rolled and galvanized steel, implemented on the terms of FOB primary ports of the Black Sea;

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