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Agreement between the Government of the Russian Federation and Government of the Republic of Kazakhstan on single procedure for regulation of foreign economic activity

of January 20, 1995

The government of the Russian Federation and the Government of the Republic of Kazakhstan which are hereinafter referred to as with the Parties for the purpose of implementation of the Agreement on creation of Economic union of September 24, 1993, forming of the Common Economic Space, the controling mechanism external commercial relations, on the basis of the identical legislation and the solution of the questions providing functioning of system of regulation of foreign economic activity

aiming at creation of equal conditions of implementation of external economic

activities for business entities of both states,

setting the task formations of single customs area,

being guided by the universally recognized norms of international law,

agreed as follows:

Article 1

In case of consolidation of customs areas of the Russian Federation and the Republic of Kazakhstan the single procedure for regulation of foreign economic activity and decision making in the following areas is established:

establishment of trade regime in the relations with the third countries;

tariff regulation in the field of foreign economic activity;

non-tariff regulation in the field of foreign economic activity;

currency control and currency exchange control of the external economic transactions;

procedure for application of temporary restrictions in mutual trade and in trade with the third countries.

Article 2

1. Concerning the countries with which at the Republic of Kazakhstan the trade regime is not set or those countries where such mode differs from the trade regime provided to these countries by the Russian Federation, the Parties agreed to apply single trade regime, including privileges and preferences for developing and the least developed countries.

In trade with the countries with which the Russian Federation and the Republic of Kazakhstan have agreements on free trade regime single withdrawals from this mode concerning these countries will be established.

2. Change of trade regime concerning the third countries, and also introduction and cancellation of temporary restrictions in trade with them will be made by both Parties at the same time.

For this purpose the Parties will communicate and hold beforehand consultations.

Article 3

1. The Russian Federation and the Republic of Kazakhstan assume liabilities on introduction at the time of consolidation of the customs areas of common customs tariffs, and also the taxes and fees having equivalent action concerning import and commodity exportation as in trade, and uncommercial turnover.

2. The customs duties, taxes and fees having equivalent action, levied by customs authorities in case of commodity exportation come to the budget of the state of that Party in the territory of which these goods were completely made.

3. If the goods which are exported from the territory of the state of one of the Parties are made of the raw materials and/or materials occurring about the territories of the state of other Party collected by customs authorities the customs duties, taxes and fees having equivalent action are distributed between the states of the Parties in the approved proportions.

The parties will approve the separate document the list of such goods and procedure for distribution and transfer in national budgets of customs duties, the taxes and fees specified in this Item.

4. The customs duties, taxes and fees having equivalent action, levied by customs authorities in case of commodity importation completely come to the budget of the state of that Party where there is receiver of these goods.

5. Change of rates of import and export customs duties, the taxes and fees applied in both countries is made by the Government of the Russian Federation taking into account interests of the Republic of Kazakhstan and after consultations with her plenipotentiaries.

Article 4

1. The Russian Federation and the Republic of Kazakhstan enter the single procedure for non-tariff regulation of foreign trade based on the unified legislation of the Parties.

2. Single lists of the licensed and quoted goods, the sizes of export quotas on the goods quoted by the Russian Federation and the Republic of Kazakhstan, and also procedure for realization when exporting to the third countries are established for both states by the joint decision of the Government of the Russian Federation and the Republic of Kazakhstan.

Changes in the specified lists and the sizes of export quotas are made for both states by relevant organs of the Russian Federation taking into account interests of the Republic of Kazakhstan after consultations with her plenipotentiaries.

Bringing quotas to the companies is performed according to the procedure established by each of the Parties.

3. The parties provide control of import (export) of the quota and licensed goods, maintaining the database of the granted licenses and quarterly provision each other to information on the actual amounts of their export (import).

4. For ensuring control of import (export) of the licensed and quoted goods of the Party form authorized bodies of the Ministry of external commercial ties of the Russian Federation in the Republic of Kazakhstan and the Industry ministry and trade of the Republic of Kazakhstan in the Russian Federation by the time of consolidation of customs areas of both states. The status of authorized bodies will be determined by the separate document.

Issue of licenses for import (export) of goods performed according to Item 2 of this Article is made by the Ministry of external commercial relations of the Russian Federation and the Industry ministry and trade of the Republic of Kazakhstan.

5. Export from the territory of the Russian Federation and the Republic of Kazakhstan of strategically important primary goods specified in the single list can be performed by business entities only on condition of their joint registration in the Ministry of external commercial relations of the Russian Federation and in the Industry ministry and trade of the Republic of Kazakhstan in accordance with the established procedure.

Article 5

The parties will enter the single procedure for currency control and currency exchange control of the external economic transactions based on the unified legislation of both states. Changes in system of currency control and currency exchange control of the external economic transactions will be made by the Parties at the same time.

Article 6

All changes in regulation of foreign economic activity in the areas listed in Articles 1-5 of this agreement will be carried out at the same time.

For avoidance of emergence of the conditions giving the grounds for introduction of tariff and non-tariff restrictions in mutual trade, the Parties take measures for standardization of legislations of both states on permanent basis.

For this purpose the Parties will communicate and hold beforehand consultations.

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