Agreement between the Government of the Republic of Kazakhstan and Government of Ukraine on free trade

of September 17, 1994

Became effective on October 19, 1998.

The government of the Republic of Kazakhstan and the Government of Ukraine the hereinafter referred to as Parties, being guided by provisions of the Treaty of friendship and cooperation between the Republic of Kazakhstan and Ukraine of January 20, 1994,

aiming at development of trade and economic cooperation between the Republic of Kazakhstan and Ukraine on the basis of equality and mutual advantage,

being guided by the Agreement of Council of heads of states of the CIS of April 15, 1994 about creation of the free trade area,

expressing determination to develop the bilateral relations in the field of trade and economic relations taking into account the principles of the General Agreement on Tariffs and Trade (GATT),

agreed as follows:

Article 1

1. The parties do not apply the customs duties, taxes and fees having equivalent actions for export or commodity import, one of the Parties coming from customs area and intended for customs area of other Party. Exceptions of this trade regime according to the approved nomenclature of goods can be drawn up by the separate Protocol if the Parties consider it necessary.

2. For the purposes of this agreement and for its action the goods coming from customs areas of the Parties are understood as goods:

a) completely made in the territory of the Parties or;

b) undergone to processing in the territory of the Parties with use of raw materials, materials and components origin from the third countries, and changed with respect thereto accessory on classification of the Harmonized commodity description and coding system at least on one of the four first signs;

c) made with use specified in the subitem "b" of raw materials, materials and components.

Detailed rules of goods origin will be approved by the Parties in the separate document which will be integral part of this agreement.

Article 2

The parties will not be:

- directly or indirectly to assess the goods falling under action of this agreement, the internal taxes or charges exceeding the corresponding taxes and fees which assess the similar goods of internal production or goods coming from the third countries;

- enter concerning the import or commodity export falling under action of this agreement, any special restrictions and requirements which in similar situation are not applied to similar goods of internal production or goods, origin from the third countries;

- apply to warehousing, overload, storage, transportation of goods by origin from other Party, and also payments and payment transfer of the rule others, than those which are applied in similar cases to own goods or goods by origin from the third countries.

Article 3

1. This agreement does not interfere with the right of any of Contracting Parties to take the commonly accepted measures of state regulation in the international practice in the field of foreign economic relations which she considers necessary for accomplishment of international treaties which participant she is or intends to become if these measures concern:

protection of public morals and public order;

protection of life and human health;

animal protection and plants;

environment protection;

protection of the art, archaeological and historical values making national property;

protection of industrial and intellectual property;

trade in gold, silver or other precious metals and stones;

preserving irreplaceable natural resources;

restrictions of export of products when internal price on these products is lower than support, world as a result of implementation of state programs;

violations of paying balance.

2. Nothing in this agreement interferes with the right of any of Contracting Parties to apply any measures of state regulation which it considers necessary if these measures concern:

ensuring national security, including prevention of leakage of the confidential information relating to the state secret;

arms trade, military equipment, ammunition, rendering services of military nature, technology transfer and rendering services for the arms production and military equipment and in other military purposes;

supply of the split materials and sources of radioactive materials, utilizations of radioactive waste;

the measures applied in wartime or in other force majeure in the international relations;

actions in execution of obligations by it based on the Charter of the UN for preserving international peace and safety.

Article 4

According to the mutual arrangement of the Parties re-export of separate goods, on the amounts and the nomenclature which are annually determined in Agreements on trade and economic cooperation can be limited.

Re-export of such goods to the third countries can be performed only from written consent and on the conditions determined by authorized institution of country of source of these goods. In case of non-compliance with this provision the concerned party having the right after preliminary consultations with other Party, unilaterally to enter measures for regulation of export of such goods on the territory of other Party which allowed uncoordinated re-export.

Re-export is understood as commodity exportation, coming from customs area of one Party, other Party out of limits of its customs area, for the purpose of export to the third country.

Article 5

The parties will communicate on regular basis on customs questions, including the available customs statistics relating to subject of this agreement, in full. The relevant authorized bodies of the Parties will approve procedure for exchange of such information.

Article 6

1. The parties will communicate about Agreements of the Parties "About free trade" with the third countries.

2. The parties will inform each other on all changes in the customs tariffs operating in their states.

Article 7

The parties, according to legislations of the Parties, recognize incompatibility with this agreement purposes not the fair business practice which is expressed, in particular, in the following:

- in the conclusion of the contract between the companies, their associations, the competition or to violate the conditions for it in the territories of the Parties aiming to prevent or limit;

- in making of actions by means of which one or several companies use the dominant position, limiting the competition on all or in considerable part of the territories of the Parties.

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