Reformatics. New reforms on improvement of Kazakhstan s position in Doing Business rating of the World Bank
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1 New reforms on improvement of Kazakhstan s position in Doing Business rating of the World Bank 2-3 March 2015 Intercontinental Almaty (181 Zheltoksan Street, Almaty, , Kazakhstan)
2 Kazakhstan in DB 2015 report Total rating of Kazakhstan in DB report 77 th place Due to change of the methodology the 50 th place in DB rating of 2014 is equivalent to the 76 th place in DB of 2015 Kazakhstan lost its position as leader in the region and the third place among the countries of post-soviet region after Georgia and Armenia Kazakhstan had above average place in DB 2014 for the countries in Central Asia and Europe and was ahead of the members of the Customs Union (Russia 92th place, Belarus 63 rd place) Having the 77 th place in DB 2015, Kazakhstan holds position which is Lower than the average 68 th place for the Central Asian and European countries Lower than the members of the Customs Union: Belarus holds the 57 th place and Russia 62th place Kazakhstan still is the best performer among the Central Asian countries. 2
3 International Trade Reforms conducted by the Kazakhstan Government for improvement of Doing Business Rating Vakhtang Lezhayeva Tamara Kovziridze David Koberidze
4 International Trade In the whole world, Kazakhstan has 185 place in rating of 189 economies of international trade. In accordance with the data collected by Doing Business, 10 documents are required for export of standard container of goods in international trade, it takes 79 days and costs USD 5,285. For import of the same container 12 documents are required, which takes 67 days and costs USD 5,265. International Trade from 186 to 185 position DB 2015: Kazakhstan simplified international trade by opening of new boundary control station and railway connection, which helped to decrease the loading at the border with China. 4
5 Methodology of International Trade ASSUMPTIONS IN RELATION TO GOODS Goods are transported in 20 foot fully filled containers for transportation of dry cargo. Weight- 10 tones, appraised value- USD It is not hazardous and does not include goods of military use; It does not require cooling or other special conditions for transportation; No special conditions on phytosanitary control or special environmental safety requirements are applicable to products, save for generally accepted international standards; Is one of the leading export and import products of the country. ASSUMPTIONS IN RELATION TO THE COMPANY It operates in the city which is the largest business center of the country. It is a private company with limited liability; It does not conduct activity in special are for export processing or in the industrial zone with special export or import regimes; It regularly exports and imports but does not have special accreditation, such as, status of authorized economic operator; It is a local company which does not have foreign owners. 5
6 International Trade in Kazakhstan International Trade in DB 2015 Indicator Kazakhsta n Documents for export (quantity) 10 Time for export (in days) 79 Cost for export (US$ per container) 5,285 Documents of import (quantity) 12 Time for import (in days) 67 Cost of import (US$ per container) 5,265 Export procedures Time Costs (US$) (days) Preparation of documents Custom clearance and technical control Loading-unloading in ports and terminals Transportation and loading-unloading within the country 44 4,200 Total 79 5,285 Import procedures Time Costs (US$) (days) Preparation of documents Custom clearance and technical control Loading-unloading in ports and terminals Transportation and loading-unloading within the country 33 4,200 Total 67 5,265 6
7 International Trade in Kazakhstan International Trade DB 2015 Documents for export Waybill Compliance certificate Certificate of origin/ Application of producer Commercial invoice Customs declaration on export Document confirming payment of customs duties (payment order / cheque) Packing list Railway bill (transportation document) Receipt on acceptance to terminal Application / document on transit Documents for import Waybill Procedure/Cargo release order Compliance certificate Commercial invoice Customs declaration on import Document confirming payment of customs duties (payment order / cheque) Customs inspection act Packing list Railway bill (transportation document) Certificate on compliance with technical standards Receipt on acceptance to terminal Document on transit 7
8 Reforms on International Trade in Kazakhstan Documents for export and import Certificate of origin Reform Requirement of certificate of origin of goods for customs clearance was abolished. The Code of the Republic of Kazakhstan On customs issues in the Republic of Kazakhstan» dated 30 June 2010 No Article 94. Certificate of origin of goods Paragraph 3 was abolished: «3. Certificate on origin of goods is provided simultaneously with customs declaration and other documents, provided when putting of goods imported to the Republic of Kazakhstan under customs procedure. If certificate is lost, its duplicate issued in accordance with the procedure set by the legislation of the Republic of Kazakhstan is accepted.» Article 317. Conditions for putting of goods under customs export procedure Paragraph 3 was abolished: «3) provision of certificate of origin in relation to goods,...» 8
9 Reforms on International Trade in Kazakhstan Documents for import Acts of customs inspection Reform Requirement of act of customs inspection for customs clearance was abolished. The Code of the Republic of Kazakhstan On customs issues in the Republic of Kazakhstan» dated 30 June Article 205. Customs inspection 6... : «Second version of act is handed over (sent) to a person who has authorities in relation to goods or to its representative in case of breach identification or based on his/her request.» 9
10 Reforms on International Trade in Kazakhstan Reform Requirement of all documents was abolished except for invoice and transportation document. The Code of the Republic of Kazakhstan On customs issues in the Republic of Kazakhstan» dated 30 June Article 281. Provision of documents during customs declaration of goods 1. Submission of customs declaration should be accompanied with provision of documents to customs body on the basis of which customs declaration was completed if otherwise is not provided by this Code. These documents include: 1) Tax invoice (invoice), if not available, document confirming execution of foreign trade transaction; 2) Transportation (transit) document depending on type of used transport. 2. If necessary, the following documents should be enclosed to documents, indicated in paragraph 1 of this article: Abolished: 3) Documents confirming payment of customs duties and taxes in accordance with article 138 of this Code; Article 296. Grounds for issuance of goods and procedure for issuance of goods 3. Issuance of goods is made by officer of customs body in the procedure established by this Code, if other procedure is not established by the resolution of the Commission by inclusion (putting) relevant marks in (on) the customs declaration, tax invoice (invoice), and if not available, document confirming execution of foreign trade transaction, transport (transit) document depending on the type of used transport, as well as relevant information to information systems of customs body. 10
11 International Trade in Kazakhstan International Trade in DB 2016 Documents for export Waybill Commercial invoice Customs declaration on export Documents for import Waybill Commercial invoice Customs declaration on import Procedure / Cargo release order 11
12 Thank you for attention Discussion on topic, Q&A 12
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