ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of August 9, 2012 No. 1038

About approval of Rules of conducting examination according to local content

According to the subitem 7) of article 4 of the Law of the Republic of Kazakhstan of January 9, 2012 "About the state support of industrial and innovative activities" the Government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed Rules of conducting examination according to local content.

2. This resolution becomes effective after ten calendar days after the first official publication.

Approved by the Order of the Government of the Republic of Kazakhstan of August 9, 2012 No. 1038

Rules of conducting examination according to local content

1. General provisions

1. These rules of conducting examination according to local content (further - Rules) are developed according to the subitem 7) of article 4 of the Law of the Republic of Kazakhstan of January 9, 2012 "About the state support of industrial and innovative activities" and determine procedure for conducting examination by local content of industrial and innovative projects.

2. The basic concepts used in these rules:

1) examination according to local content - assessment of local content in the industrial and innovative project of the subject of industrial and innovative activities applying for inclusion in the republican card of industrialization;

2) local content - percentage of cost of compensation of the citizens of the Republic of Kazakhstan involved in the industrial and innovative project of the subject of industrial and innovative activities from the general fund of compensation on this project and (or) cost of the shares of local origin established in goods, works and services from total cost of the goods, works and services used in case of implementation of the industrial and innovative project of the subject of industrial and innovative activities;

3) the industrial and innovative project - complex of the actions directed to transfer of technologies, creation new or enhancement of the productions, technologies, goods, works and services realized during certain term of time;

4) authorized body in the field of the state support of industrial and innovative activities (further - authorized body) - the central executive body performing management in the field of the industry and industrial and innovative development and also cross-industry coordination and participation in realization of the state support of industrial and innovative activities in limits, stipulated by the legislation;

5) the card of industrialization - the instrument of monitoring (realization) of industrial and innovative system representing set of the industrial and innovative projects included in republican and regional cards of industrialization with certain financing sources, schedules and actions plans on their realization;

6) the database of goods, works and services and their suppliers (further - the database) - the list of domestic goods, works and services and their suppliers.

2. Procedure for conducting examination according to local content

3. Expertize according to local content is carried out by national institute of development in the field of development of local content.

4. Materials for conducting examination according to local content (further - materials) go authorized body in forms, according to appendices 1 and 2 to these rules, according to the procedure, established by rules of inclusion of projects in republican and regional cards of industrialization, approved by the Government of the Republic of Kazakhstan.

5. Expertize according to local content of the industrial and innovative project is carried out within fifteen working days from the date of obtaining from authorized body of materials and consists in determination of local content in the industrial and innovative project.

6. For conducting examination according to local content the national institute of development in the field of development of local content compares materials with information on goods, works and services which is available in the database for the purpose of search of identical goods, works and services.

Following the results of carrying out search of identical goods, works and services the national institute of development in the field of development of local content makes calculation of percentage of cost of share of local origin:

1) the goods established in goods (MST) from total cost planned to use in case of implementation of the industrial and innovative project on formula:

where:

n - total quantity of the goods provided by materials;

i - the sequence number of goods provided by materials;

STI - cost, - oho goods, provided by materials;

Ki - the share of local content in identical goods specified in the database, Ki = 0, in case of lack of goods in the Database;

S - the total cost of goods provided by materials;

2) established in works and services (MSR / at), from total cost of the works and services planned to use in case of implementation of the industrial and innovative project on formula:

where:

n - total quantity of the goods necessary for performance of work or the services specified in materials;

 i - the sequence number of necessary goods specified in materials;

CTi - cost, - oho the goods provided by materials;

Ki - the share of local content in identical goods specified in the database, Ki = 0, in case of lack of goods in the database;

m - total quantity of the works or services necessary for the performance of work or service specified in materials;

j - the sequence number of work or service specified in materials;

SDJ - the cost j-oh works or services specified in materials;

STJ - the total cost of the goods necessary for performance of work or the services provided in materials;

Rj - share of the salary fund of local personnel in the general fund of compensation of workers of the supplier performing works or services, specified in the database;

S - the total cost of work or service specified in materials.

In case of availability in the database of several identical goods, the average share of local content of goods calculated by formula is established:

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