The agreement between the Government of the Kyrgyz Republic and the Government of the Republic of Uzbekistan on the principles of collection of indirect taxes during the exporting and commodity import (works, services)

of September 20, 1997

The government of the Kyrgyz Republic and the Government of the Republic of Uzbekistan, the hereinafter referred to as Contracting Parties,

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

being guided by the commonly accepted regulations and rules of international trade,

agreed as follows:

Article 1 General determinations

For the purpose of this agreement:

a) the term "indirect taxes" - means the value added tax and the excise tax;

b) the term "zero rate" - means taxation on value added at the rate zero percent, according to the tax legislation of Contracting Parties;

c) the term "competent authority" - means the Ministries of Finance of Contracting Parties.

The article 2 Principle of Collection when exporting

1. One Contracting Party will not assess with indirect taxes the goods (works, services) exported to other Contracting Party.

2. The rule of Item 1 of this Article, concerning the value added tax, means application of zero rate.

The article 3 Principle of Collection when importing

1. The goods (works, service) imported on the territory of one Contracting Party which are exported from the territory of other Contracting Party are assessed with indirect taxes in the country of the importer according to its legislation. Taxation by indirect taxes is performed by customs authorities in case of commodity import on customs area of the Contracting Party - the importer.

2. In case of commodity import taxation (works, services) exported from the territory of other Contracting Party, Contracting Parties will apply the rates of taxes established by the legislation of Contracting Parties.

3. The value added tax on imported goods is levied from customs value of goods, without deduction of the excise tax and customs duties.

Article 4 Solution of Matters of Argument

1. Disagreements between Contracting Parties concerning interpretation in case of application of provisions of this agreement will be solved by consultations and negotiations of Contracting Parties by competent authorities.

2. Contracting parties within the legislation will take the coordinated actions directed to creation of identical system of indirect taxation in case of trade with the third countries. Competent authorities will develop specific mode of operation of this Item, taking into account provisions of earlier reached agreements in the field of cooperation and mutual aid concerning observance of the tax legislation.

Article 5 Entry into force

1. This agreement becomes effective from the date of exchange of diplomatic notes about accomplishment by Contracting Parties of all interstate procedures necessary according to their national legal system for entry into force of this agreement and will remain in force before the expiration of twelve months from date when one of contracting parties directs the written notice of intention to stop its action.

2. This agreement will be applied only to goods (works, services) delivered after its entry into force.

It is made in the city of Bishkek on September 20, 1997 in duplicate, everyone in the Kyrgyz, Uzbek and Russian languages, and all texts are equally authoritative. For the purposes of interpretation of provisions of this agreement the text in Russian is used.

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