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RESTRICTED WT/TPR/S/288 1 October 2013

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RESTRICTED WT/TPR/S/288 1 October 2013 RESTRICTED WT/TPR/S/288 1 October 2013 (13-5230) Page: 1/103 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT KYRGYZ REPUBLIC This report, prepared for the second Trade Policy Review of the Kyrgyz Republic, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from the Kyrgyz Republic on its trade policies and practices. Any technical questions arising from this report may be addressed to Ms. Denby Probst (022 739 5847) and Mr. Rosen Marinov (022 739 6391). Document WT/TPR/G/288 contains the policy statement submitted by the Kyrgyz Republic. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on the Kyrgyz Republic. This report was drafted in English. WT/TPR/S/288 • Kyrgyz Republic - 2 - CONTENTS SUMMARY ........................................................................................................................ 8 1 ECONOMIC ENVIRONMENT ......................................................................................... 10 1.1 Main Features ........................................................................................................... 10 1.2 Recent Economic Developments .................................................................................. 11 1.3 Trade and Investment Patterns.................................................................................... 13 1.4 Outlook .................................................................................................................... 17 2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES ........................................... 18 2.1 General Constitutional and Legal Framework ................................................................. 18 2.2 Development and Administration of Trade Policy ............................................................ 18 2.2.1 Main trade laws ...................................................................................................... 18 2.2.2 Ministry and private-sector involvement in trade policy ................................................ 19 2.2.2.1 Government trade policy framework ....................................................................... 19 2.2.2.1.1 WTO inter-departmental Commission ................................................................... 20 2.2.2.1.2 Ministry of Economy .......................................................................................... 20 2.2.2.2 Involvement of the private sector in trade policy ...................................................... 20 2.3 Trade Policy Objectives .............................................................................................. 21 2.3.1 General objectives .................................................................................................. 21 2.3.2 Sectoral objectives .................................................................................................. 21 2.4 Trade Agreements and Arrangements ........................................................................... 21 2.4.1 Participation in the WTO .......................................................................................... 21 2.4.2 Regional, bilateral, and preferential trade ................................................................... 22 2.4.2.1 Overview ............................................................................................................ 22 2.4.2.2 Free-trade agreements ......................................................................................... 23 2.4.2.3 Eurasian Economic Community .............................................................................. 24 2.4.2.4 Customs Union .................................................................................................... 24 2.4.3 Preferential regimes ................................................................................................ 25 2.5 Trade Disputes and Consultations ................................................................................ 26 2.5.1 Dispute settlement in the WTO ................................................................................. 26 2.5.2 Regional or bilateral dispute systems ......................................................................... 26 2.6 Foreign Investment Regime ........................................................................................ 26 2.6.1 Legal framework ..................................................................................................... 26 2.6.2 Public Investment Programme (PIP) .......................................................................... 27 2.6.3 Investment policy ................................................................................................... 27 2.6.4 Bilateral invest agreements (BIAs) and other initiatives ................................................ 28 3 TRADE POLICIES AND PRACTICES BY MEASURE ......................................................... 29 3.1 Measures Directly Affecting Imports ............................................................................. 29 3.1.1 Customs procedures ................................................................................................ 29 3.1.1.1 Customs legal framework and Customs Code ........................................................... 29 3.1.1.2 International, regional, and bilateral agreements and cooperation on customs .............. 30 WT/TPR/S/288 • Kyrgyz Republic - 3 - 3.1.1.3 Developments on trade facilitating measures ........................................................... 31 3.1.1.4 Simplified import procedures ................................................................................. 32 3.1.1.5 Free economic zones ............................................................................................ 32 3.1.1.6 Customs brokers .................................................................................................. 33 3.1.1.7 Pre-shipment inspection ........................................................................................ 33 3.1.1.8 Other customs matters ......................................................................................... 33 3.1.2 Customs valuation .................................................................................................. 33 3.1.2.1 Overview of basic rules ......................................................................................... 33 3.1.2.2 Price sensitive products ........................................................................................ 34 3.1.3 Rules of origin ........................................................................................................ 35 3.1.3.1 Non-preferential .................................................................................................. 35 3.1.3.2 Preferential ......................................................................................................... 35 3.1.3.3 Special rules of origin in free economic zones ........................................................... 36 3.1.3.4 Notifications ........................................................................................................ 36 3.1.4 Tariffs ................................................................................................................... 36 3.1.4.1 Nomenclature ...................................................................................................... 36 3.1.4.2 MFN applied tariffs ............................................................................................... 36 3.1.4.3 WTO bindings ...................................................................................................... 38 3.1.4.4 Applied rates exceeding bound rates ....................................................................... 38 3.1.4.5 Preferential and duty-free regimes .......................................................................... 39 3.1.4.6 Seasonal duties ................................................................................................... 39 3.1.5 Other charges affecting imports ................................................................................ 39 3.1.5.1 Charges and fees upon importation ......................................................................... 39 3.1.5.2 Value-added tax (VAT) .......................................................................................... 40 3.1.5.3 Excise taxes ........................................................................................................ 41 3.1.5.4 Sales tax ............................................................................................................ 42 3.1.5.5 Special tax exemptions ......................................................................................... 42 3.1.6 Import prohibitions, restrictions, and licensing ............................................................ 43 3.1.6.1 Import prohibitions .............................................................................................. 43 3.1.6.2 Quotas ............................................................................................................... 43 3.1.6.3 Licensing ...........................................................................................................
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