ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of October 17, 2019 No. 772

About approval of Rules of pricing on goods military (products), goods (products) of dual purpose (application), military work and military service within the state defense order

According to the subitem 7) of article 5 of the Law of the Republic of Kazakhstan of March 18, 2019 "About defense industry and the state defense order" the Government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules of pricing on goods military (products), goods (products) of dual purpose (application), military work and military service within the state defense order.

2. This resolution becomes effective after twenty one calendar days after day of its first official publication.

Approved by the Order of the Government of the Republic of Kazakhstan of October 17, 2019 No. 772

Rules of pricing on goods military (products), goods (products) of dual purpose (application), military work and military service within the state defense order

Chapter 1. General provisions

1. These rules of pricing on goods military (products), goods (products) of dual purpose (application), military work, military service within the state defense order (further – Rules) determine procedure for pricing on goods (products) of military and dual purpose (application), military work and military service within the state defense order (further – products of the defense order).

2. Rules are applied by contractors of the state defense order (further - the contractor) to calculation of prices for products of the defense order.

3. In these rules the following concepts and determinations are applied:

1) special expenses - the expenses including production, acquisition and repair of special tools and devices of purpose, special testing, examinations, researches and experiences in case of production, and also development of new type of products of the defense order;

2) the price - monetary value of cost of goods (costs of goods are the cornerstone production costs and sales of products taking into account the net income necessary for effective organization activity, and also payments in the budget);

3) allocation base - the indicator (statistical, financial, quantitative) used for distribution of indirect expenses;

4) assembly - the part of production process consisting in connection of details;

5) research work - the work connected with scientific search, carrying out researches, experiments for the purpose of expansion available and receipts of new knowledge, checks of scientific hypotheses, establishments of patterns of development of the nature and society, scientific generalization, scientific reasons for projects;

6) scientific and technical products - the result of research, project, design, technological works finished according to requirements of the contract (agreement), accepted by the customer realized at the contract (contractual) prices;

7) total and administrative expenses - the expenses connected with general running costs of administrative assignment;

8) indirect expenses - expenses which cannot be directly carried on the cost of products made by the organizations (rendering services provisions of works), (treat indirect expenses: overheads, selling expenses, total and administrative expenses, financial expenses);

9) planned calculation - the economic (accounting) calculation of expenses in terms of money determining the cost of unit of production of the defense order for planning period taking into account admissible profit level and the value added tax (further - the VAT);

9-1) commission fee – set of the costs considered by antimonopoly authority in the price of implementable commodity import of military (products), goods (products) of dual purpose (application), military works and military services (further – import of products of the defense order) which are distributed by authorized organization in percentage terms for covering of expenses;

10) transport and procurement expenses - the expenses of the organization which are directly connected with process of preparation and delivery of materials, spare parts, components, semifinished products, the main and auxiliary materials, raw materials in the organization;

11) irretrievable waste - waste which cannot be used in case of this condition of the equipment and belong on technological losses, including waste, drying, utryaska;

12) returnable waste - the remaining balance of raw materials, materials or semifinished products formed in the course of conversion of initial material in finished goods, which lost fully or partially consumer qualities of initial material (chemical or physical properties, including full-regularity, configuration) which according to the established technology are used as full-measuring material for production of other details or products of the main production;

13) financial expenses - expenses on interest payment on the loans attracted for the purpose of implementation of investment projects, the upgrades of production aimed at the development, development and production of defense industry complex;

13-1) authorized body in the field of defense industry and the state defense order (further – authorized body) – the state body performing management and cross-industry coordination in the field of defense industry and the state defense order;

14) material costs - expenses of the organization for acquisition of raw materials, materials, spare parts, components and semifinished products for production of finished goods;

15) production cost - set of the costs connected with production of the defense order which consist of straight lines and overheads;

16) selling expenses - the expenses connected with implementation process, transportations, packagings and the product deliveries of the defense order including handling works;

17) admissible profit level - the profit which is part of price for products of the defense order which the contractor will receive for development of production, effective functioning and improvement of quality of the sold products of the defense order;

18) developmental works - complex of the works performed during creation or upgrade of products, development of design and technological documentation on prototypes, production and testing of prototypes and useful models;

19) all-in cost - the total amount of expenses including the production cost, total and administrative expenses and selling expenses, financial expenses;

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