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

of June 22, 1995

agreed as follows:

Article 1

1. The parties do not apply the customs duties having equivalent actions for export and/or commodity import, one of the Parties coming from customs area and intended for customs area of other Party. Withdrawals from this trade regime according to the approved nomenclature of goods annually will be drawn up by the separate Protocol.

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

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 to its 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 of raw materials, materials and components.

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 into the relations of 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 by 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. The parties in mutual trade will abstain from application of discriminatory measures, introduction of quantitative restrictions or measures equivalent to them for export and/or commodity import within this agreement.

The parties can set quantitative restrictions unilaterally, but only reasonably and for strictly certain term.

These restrictions shall have exclusive nature and can be applied only in cases of acute shortage of these goods in the domestic market and acute shortage of paying balance.

The party applying quantitative restrictions according to the insisted Article shall provide whenever possible beforehand to other Party the complete information about basic reasons of introduction, forms and expected terms of application of the mentioned restrictions then consultations are appointed.

Introduction of quantitative restrictions according to this Article is drawn up by the separate protocol.

Article 4

All calculations and payments for trade and economic cooperation between business entities of the Parties will be made according to the agreement between authorized banks of the Parties.

Article 5

The parties agree that the questions connected with re-export of goods are regulated by the Agreement on re-export of goods and approval procedure on re-export of April 15, 1994.

In case of non-compliance with the above-named Agreement the concerned party has the right, after preliminary consultations with other Party, to unilaterally enter measures for regulation of export of such goods on the territory of other Party which allowed uncoordinated re-export.

Article 6

The parties will communicate on regular basis about the laws and other regulations connected with economic activity including concerning trade, investments, the taxation, banking and insurance activity and other financial services, on transport and customs questions, including customs statistics.

The parties will timely report each other about changes in the national legal system which can influence accomplishment of this agreement. Authorized bodies of the Parties will approve procedure for exchange of such information.

Article 7

The parties will aim to pull together levels of rates of the customs duties applied in trade with the third harvest seasons and for this purpose agreed about carrying out regular consultations.

The parties will inform each other on the operating customs tariffs and on all exceptions of them.

Article 8

The parties recognize incompatible with this agreement purposes unfair business practice and not allow and eliminate its methods following, in particular:

- agreements between the companies, the decisions made by their associations and the common methods of business practice aiming to prevent or limit the competition or to violate conditions for it in the territory of the Parties;

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

Article 9

When implementing measures of tariff and non-tariff regulation of the bilateral economic relations, for exchange of statistical information, carrying out customs procedures of the Party agreed to use the single nine-digit Commodity nomenclature of foreign economic activity (Commodity Nomenclature of Foreign Economic Activity) based on the Harmonized commodity description and coding system and the Combined tariff and statistical nomenclature of the European Economic Community. At the same time for own needs of the states of the Party if necessary perform development of the Commodity nomenclature outside nine signs.

Introduction of reference copy of the Commodity nomenclature is performed on mutually agreed basis through the available representation in relevant international organizations.

Article 10

The parties agree that observance of liberty principle of transit is the most important condition of goal achievement of this agreement and essential element of process of their connection to system of the international Section of work and cooperation.

In this regard each Party will provide free transit through its territory of the goods coming from customs area of other Party or the third countries and about intended for customs area of other Party or the third country, and will provide to the exporters performing such transit, importers or carriers means, available and necessary for ensuring transit, and service on conditions, including financial, not the worst, than on what the same means and services are provided to exporters, importers, national carriers of any third state.

The parties will not require fee on warehousing, overload, storage and transportation of goods in currency of any third state.

Article 11

This agreement does not interfere with the right of the either party to take the commonly accepted measures in the international practice which she considers necessary for accomplishment of international treaties which participant she is or intends to become if these measures concern:

information infringing on interests of national defense;

arms trade, ammunition and military equipment;

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