On Grain

The Law of the Republic of Kazakhstan dated 19 January, 2001 No. 143

Unofficial translation

      This Law regulates relations arising in the process of production, storage and marketing of grain in the Republic of Kazakhstan.

Chapter 1. General provisions

Article 1. Basic definitions, used in this Law

      The following basic definitions are used in this Law:
      1) agent –a legal entity, one hundred percent of stocks (shares) of which, belong to the national management holding in agro-industry or its subsidiary, as defined by the Government of the Republic of Kazakhstan and acting within its competence the authority to manage the state resources of grain;
      2) food grains – grains, used for food purposes;
      3) is excluded by the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2);
      3-1) money reserve - reserve of money, which is under the management of the agent and generated at the expense of net operating income from the sale of state resources of grain, and used for compensation of losses of the agent, encountered in the use of state resources of grain to control the domestic market at prices lower than the purchase price (including the costs of sale);
      4) grain –fruits of cereals, legumes and oilseeds used for food, seed, feed and industrial purposes;
      5) the owner of grain – an individual or a legal entity, transferred the grain for storage to the cereal receiving company;
      6) cereal receiving company - a legal entity, having the ownership rights in granary (elevator, grain receiving point), where the grain is stored;
      7) granary (elevator, grain receiving point) – a specialized technical facility for the storage of grain;
      7-1) activities in rendering services of warehouse operations with the issuance of grain receipts - the activities, carried out by cereal receiving companies for storage of grain;
      9) the system of guaranteeing the fulfillment of obligations under grain receipts - a complex of organizational and legal measures, aimed at protection of the rights and legitimate interests of holders of grain receipts from nonfulfillment of obligations by cereal receiving companies on their issued grain receipts;
      10) Fund of guaranteeing the fulfillment of obligations under grain receipts - a legal entity, created for the purpose of protecting the interests of holders of grain receipts from nonfulfillment of obligations by cereal receiving companies on their issued grain receipts;
      10-1) grain receipts - double warehouse certificate, issued by cereal receiving company in confirmation of the acceptance of grain from the owner of the grain for storage;
      11) the holder of grain receipts - the owner of grain, in cases of making endorsement in the grain receipt - the endorsee;
      12) grain production - a complex of agro-technological measures, aimed at growing crops;
      13) grain market participants - individuals and legal entities, involved in the production, storage, transportation, processing and sale of grain;
      13-1) monitoring of the grain market - a set of permanent arrangements for the collection, processing and analysis of data on transactions with grain, carried out by grain market participants, including its production, storage, processing and sale;
      13-2) grain quality passport - a document, certifying the actual indicators of the quality of grain and their compliance with the requirements of normative documents on standardization, and (or) the terms of the contract;
      13-3) grain exporter – an individual or a legal entity, carrying out activities for the sale of grain for export;
      13-4) the intended use of grain – the use of public resources of grain by the grain processing organizations, sold to them by the agent in order to regulate the domestic market for industrial processing for the production of bakery products, sold in the territory of the region, the city of republican significance, the capital;
      13-5) grain storage - technological complex of services, rendered to the granary (elevator, grain receiving points), including acceptance, weighing, drying, cleaning, storage and shipment of grain;
      14) the life cycle of the grain - the processes of production, storage, transportation, sale, destruction and recycling of grain;
      17) the grain quality – a set of consumer properties of grain, determining its compliance with the requirements of normative documents on standardization, sanitary, veterinary and phytosanitary rules and norms, and hygienic standards;
      18) examination of the grain quality - a set of measures, aimed at the establishment and confirmation of the actual indicators of grain quality, including the examination of the vehicle (the warehouse), the selection and testing of samples, drawing-up the passport of grain quality;
      20) feed grain- the grain, intended to feed animal and poultry;
      21) mobilization readiness - the ability of the state bodies to provide the grain resources for the population in different kinds of crisis situations;
      22) the holder of the pledge certificate - the person, who is the pledgeholder of grain by the obligation, certified in the pledge certificate;
      23) the holder of a warehouse receipt - the owner of the grain, that is charged, in cases of making endorsement in the warehouse receipt - the endorsee;
      24) refreshment of state reserve of food grains – sale the part of it and purchase of new harvest grain in order to maintain a fixed volume and the required quality of state reserve of food grains due to new crop;
      25) state grain resources - state reserves of grain, created in order to ensure food security and fulfillment of state obligations, as well as for the protection and regulation of the grain market;
      26) movement of state resources of grain - transportation of state resources of grain from one cereal receiving company to another;
      26-1) domestic grain producers - individual entrepreneurs and legal entities, that are residents of the Republic of Kazakhstan and engaged in the production of grain;
      27) the regulatory body - the state body, authorized under the legislation of the Republic of Kazakhstan to implement the state regulation of prices (tariffs);
      27-1) the purchase price - the price, set by the Government of the Republic of Kazakhstan, on the proposal of the authorized body on the basis of data, provided by a specialized organization in the field of agro-industry, performing analyzes of agribusiness markets, founded by the Government of the Republic of Kazakhstan and (or) the national managing holding, subject to the market grain prices, prevailing in the domestic market;
      28) seed grain (seeds) – grains, used for seeding purposes and shared by varietal and seed quality;
      29) authorized body - the central executive body, carried out within its competence the coordination and regulation of its members, as well as the management of state resources of grain.
      Footnote. Article 1 is in the wording of the Law of the Republic of Kazakhstan dated 29.12.2006 No. 209 (the order of enforcement see Article 2); as amended by the Laws of the Republic of Kazakhstan dated 26.07.2007 No. 313 (the order of enforcement see Article 2); dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012); dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 2. Legislation of the Republic of Kazakhstan on grain

      Footnote. Title is amended by the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2).

      1. Legislation of the Republic of Kazakhstan on grain is based on the Constitution of the Republic of Kazakhstan and consists of the norms of the Civil Code of the Republic of Kazakhstan, this Law and other regulatory legal acts of the Republic of Kazakhstan.
      2. If an international treaty, ratified by the Republic of Kazakhstan establishes rules other than those contained in this Law, the rules of the international treaty shall apply.
      Footnote. Article 2, as amended by the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2).

Chapter 2. State administration and regulation of the grain market

Article 3. The objectives of state administration of the grain market

      The objectives of state administration and regulation of the grain market are:
      1) food security, safety in the field of technical regulation (hereinafter - safety) and mobilization readiness of the Republic of Kazakhstan;
      2) prevent dumping in grain prices;
      3) expand markets for grain;
      4) the quality assurance of grain;
      5) maintaining a safe level of phytosanitary situation;
      6) optimization of the structure of grain production, taking into account climatic conditions and market conditions, improvement of production technology, storage and sale of grain;
      7) elimination of a possible deficit of feed for livestock and poultry, within the scope of state resources offeed grain;
      8) formation of investment, credit, tax and customs policy in grain production;
      9) prevention of actions that may mislead consumers about the safety and quality of grain.
      Footnote. Article 3, as amended – by the Law of the Republic of Kazakhstan dated 29 December, 2006 No. 209 (the order of enforcement see Article 2).

Article 4. Forms of state regulation of the grain market

      State regulation of the activity of the grain market participants shall be through:
      1) the licensing of the provision of warehouse activities with the issuance of grain receipts on the basis of the qualification requirements, approved by the Government of the Republic of Kazakhstan;
      1-1) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012);
      2) the technical regulation in accordance with the legislation of the Republic of Kazakhstan;
      2-1) controlling the activities of the accredited laboratories for testing the grain quality;
      3) the legal regulation of circulation of grain receipts;
      4) licensing control over the implementation of the activities for provision of service of warehouse activities with the issuance of grain receipts;
      4-1) monitor the compliance with the rules: on conducting quantitative and qualitative accounting of grain; grain storage; issuance, circulation and redemption of grain receipts;
      4-2) controlling the activities for the sale of grain for export;
      5) formation of the state grain resources and control over their quantitative and qualitative state;
      6) (is excluded).
      7) (is excluded).
      8) (is excluded).
      9) (is excluded – No. 488 dated 13.10.2003).
      10) other forms, stipulated by legislative acts.
      Footnote. Article 4, as amended by the Laws of the Republic of Kazakhstan dated 13 October, 2003 No. 488; dated 20 December, 2004 No. 13 (shall be enforced dated 1 January, 2005); dated 29 December, 2006 No. 209 (the order of enforcement see Article 2); dated 26 July, 2007 No. 313 (the order of enforcement see Article 2); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 5. Competence of the Government of the Republic of Kazakhstan

      The Government of the Republic of Kazakhstan shall:
      1) is excluded by the Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      1-1) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      2) create the favorable conditions for attracting the investments and take other measures to promote the grain market and maintain its stability;
      2-1) determines the agent;
      3) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);;
      4) enter into intergovernmental agreements, related to operations with grain;
      5) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      6) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      6-1) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012);
      7) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      7-1) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      8) (is excluded).
      9) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      10) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      11) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      12) establish the purchase price;
      13) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      14) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      15) perform other functions, assigned to it by the Constitution, the Laws of the Republic of Kazakhstan and the acts of the President of the Republic of Kazakhstan.
      Footnote. Article 5, as amended by the Laws of the Republic of Kazakhstan dated 13.10.2003 No. 488; dated 20.12.2004 No. 13 (shall be enforced from 01.01.2005); dated 29.12.2006 No. 209 (the order of enforcement see Article 2); dated 26.07.2007 No. 313 (the order of enforcement see Article 2); dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012); dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 6. The competence of the authorized body

      The competence of the authorized body shall include:
      1) the development of a policy of state support for grain production and organization of their implementation;
      1-1) the coordination and methodological guidance of the local executive bodies in the field of grain market;
      2) the development and approval of qualification requirements for provision of services in warehousing activities with the issuance of grain receipts;
      2-1) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012);
      2-2) monitoring the compliance of the grain exporters with the obligation to deliver the grain to the state grain resources;
      3) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      3-1) is excluded by the Law of the Republic of Kazakhstan dated 10.07.2012 No. 36-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      3-2) approving the form of regulations to eliminate violations of the legislation of the Republic of Kazakhstan on the grain, protocol on the administrative offence, ruling in a case, concerning an administrative offence;
      4) issuance of regulations on violation of the legislation of the Republic of Kazakhstan on grain, consideration of cases on administrative offences in accordance with the legislation of the Republic of Kazakhstan on administrative offences;
      5) monitor the grain market;
      6) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      7) control over the activities of accredited laboratories for testing the grain quality for compliance with the order of examination of the quality of grain and issuance of grain quality passport;
      8) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      9) is excluded by the Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      10) the development and approval of the requirements to the order of examination of the grain quality and issuance of grain quality passport;
      11) the development and approval of technical regulations to the grain and the processes of its life cycle;
      12) the development and approval of the rules on:
      conducting the quantitative and qualitative accounting of grain;
      grain storage;
      issuance, circulation and redemption of grain receipts;
      conducting the temporary management of cereal receiving company;
      use of the system of electronic grain receipts;
      13) is excluded – dated 26 July, 2007 No. 313;
      14) is excluded by the Law of the Republic of Kazakhstan dated 13.01.2014 No. 159-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      15) the development and approval of requirements for the form, on which a grain receipt is issued, the order of their issuance, acquisition, storage and disposal, as well as the requirements to sample grain receipts;
      16) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      17) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      18) control over the management of state resources of grain;
      19) control of shipping and transportation (moving) of state resources of grain;
      20) is excluded by the Law of the Republic of Kazakhstan dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012);
      20-1) the development and approval of forms of obligatory departmental reporting, checklists, risk assessment criteria, semi-annual audit plans in accordance with the Law of the Republic of Kazakhstan “On State Control and Supervision in the Republic of Kazakhstan”;
      21) the development and approval of forms for inspection reports of the cereal receiving company;
      22) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      23) the development and approval of grain procurement quotas in the context of regions to the state grain resources;
      24) proposing to establish the purchase price;
      25) decision-making on the use of state resources of grain in order to regulate the domestic market;
      26) the development and approval of the standard form of contract to supply grain to the state resources of grain between:
      agent and a domestic manufacturer of grain;
      agent and exporter of grain;
      27) the development and approval of the standard form of contract to supply grain from state realizable and state stabilization resources of grain in order to regulate the domestic market between the agent and grain processing organization;
      28) the development and approval of the standard form of contract for the sale of flour, produced from grain of state realizable and state stabilization resources of grain, between the grain processing and baking organizations;
      29) the development and approval of the form of confirmation for compliance by the grain exporter with the obligations to deliver grain to the state grain resources and its issuance to the exporter of grain;
      30) the development and approval the volume, structure of state resources of grain, rules of formation, storage, refreshment, transportation and use of state resources of grain;
      31) the development and approval of the standard form of public contracts between cereal receiving company and owner of grain;
      32) the development and approval of requirements for the creation, operation and liquidation of funds, guaranteeing the fulfillment of obligations under grain receipts, the conditions for participation of cereal receiving companies in the system of guaranteeing the fulfillment of obligations under grain receipts, the order for obtaining the guarantees of fund (s) guaranteeing the fulfillment of obligations under grain receipts, the order of repayment of grain receipts by fund (s) guaranteeing the fulfillment of obligations under grain receipts;
      32-1) the development and approval of rules and accounting standards for separate accounting of transactions with state resources of grain and private financial and economic activity of agent;
      32-2) determination of the amount of grain supplies by grain exporters in the state resources of grain, calculated in percentage of the exported volume;
      32-3) the development and approval of partial reimbursement of the cost of the purchased grain of the realizable state and state stabilization resources of grain to the grain processing organizations in order to regulate the domestic market
      32-4) monitoring the compliance of the local executive bodies with the legislation of the Republic of Kazakhstan in the field of regulation of the grain market and the activities of the audited entities, including unimpeded access to all objects of verification and issuance of binding orders to eliminate the identified violations of the legislation of the Republic of Kazakhstan in the field of regulation of the grain market;
      33) exercise other powers, stipulated by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.
      Footnote. Article 6 is in the wording of the Law of the Republic of Kazakhstan dated 10.01.2006 No. 116 (the order of enforcement see Article 2); as amended by the Laws of the Republic of Kazakhstan dated 29.12.2006 No. 209 (the order of enforcement see Article 2); dated 26.07.2007 No. 313 (the order of enforcement see Article 2); dated 17.07.2009 No. 188-IV (the order of enforcement see Article 2); dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); dated 19.03.2010 No. 258-IV; dated 06.01.2011 No. 378-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012); dated 10.07.2012 No. 36-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 13.06.2013 No.102-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 13.01.2014 No. 159-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 13.01.2014 No. 159-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 6-1. Competence of the local executive body of the region, the city of republican significance, capital

      1. The competence of the local executive body of the region shall include:
      1) is excluded by the Law of the Republic of Kazakhstan dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      1-1) the implementation of state policy in the field of ??the grain market;
      2) licensing of the activity for provision of service in warehousing activities with the issuance of grain receipts;
      3) is excluded by the Law of the Republic of Kazakhstan dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication).
      4) optimization of the structure of grain production, taking into account climatic conditions and market conditions, improvement and implementation of new advanced technologies of production, storage and sale of grain;
      5) is excluded by the Law of the Republic of Kazakhstan dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication).
      6) implementation of cheapening the cost of mineral fertilizers, seed dressers and herbicides for domestic agricultural producers in accordance with the budget programs;
      7) take the necessary measures to ensure the essential needs of the domestic market for petroleum products;
      8) the adoption of measures to create a competitive environment in the regions, to provide services for conformity assessment in the field of technical regulation;
      9) control over cereal receiving companies, including:
      annual inspection of cereal receiving companies on their readiness to accept new crop in accordance with the approved schedule;
      drawing up of acts of inspection of cereal receiving companies;
      10) suspension of license for the provision of services for warehousing activities with the issuance of grain receipts as a whole or in respect of certain transactions for up to six months in accordance with the legislation of the Republic of Kazakhstan on administrative offences;
      11) approval as a percentage of the gross collection of the size of supply of food grains in the state resources of grain by domestic producers of grain of the respective region, having sown area of grain crops of two hundred and fifty acres or more;
      12) monitor the implementation by domestic producers of grain, having sown area of grain crops of two hundred and fifty acres and more, the responsibilities for the formation of state resources of grain;
      13) submission of applications to the authorized body, that are not ensured by a competitive sector the demand for grain for the approval of the volume of formation of the state stabilization grain resources;
      14) determination on a tender basis:
      grain processing organizations to sale them grain of the state realizable and state stabilization resources of grain in order to regulate the domestic market;
      baking organizations to sale them flour, produced from the grain of the state realizable and state stabilization resources of grain;
      15) partial reimbursement of the cost of the purchased grain of the realizable state and state stabilization resources of grain to the grain processing organizations in order to regulate the domestic market;
      16) control over the targeted use of grain of the state realizable and state stabilization resources of grain by the grain processing organizations;
      17) definition of overall price level of flour and bakery products, made ??from the grain of the state realizable and state stabilization resources of grain, and overseeing its implementation by grain processing organizations, baking organizations and organizations of wholesale and retail trade;
      17-1) monitoring the compliance by grain-enterprises with the rules: conducting quantitative and qualitative account of the grain; grain storage; issuance, circulation and redemption of grain receipts in accordance with the Law of the Republic of Kazakhstan “On state control and supervision in the Republic of Kazakhstan”;
      17-2) issuing of infringement of the legislation of the Republic of Kazakhstan on the grain, the consideration of administrative cases in accordance with the legislation of the Republic of Kazakhstan on administrative offences;
      17-3) monitoring of the grain market within the administrative territorial unit;
      17-4) state control of safety and quality of grain;
      17-5) prohibition of the shipment of grain by any type of transport to grain-enterprise on the grounds provided for in paragraph 2 of Article 28 of this Law;
      17-6) inspection (check) of activities of grain-enterprises for compliance with the requirements for conducting quantitative and qualitative accounting and preservation of grain in accordance with the data in the register of grain receipts;
      17-7) apply to the court for the introduction and early termination of the temporary administration of grain-enterprise;
      17-8) approval of the semi-annual audit plans in accordance with the Law of the Republic of Kazakhstan “On state control and supervision in the Republic of Kazakhstan”;
      17-9) check actual availability and quality of grain in the participants of grain market and compliance with its accounting data;
      17-10) control of quantitative and qualitative state of grain, including grain of state resources;
      17-11) direction of the holders of grain receipts a notice on the nominations for inclusion in the commission of temporary administration of grain-enterprise;
      17-12) making proposals on volume, structure, rules of formation, storage, touch, movement and use of state resources of grain;
      17-13) making proposals to the local executive body of the region on suspension and (or) deprivation of a license for the provision of services for warehousing activities with the issuance of grain receipts;
      17-14) making proposals for the introduction of temporary administration of grain-enterprise;
      18) implementation in favor of the local government of other powers, delegated to the local executive bodies by the legislation of the Republic of Kazakhstan.
      2. The competence of the local executive body of the city of republican significance, capital shall include:
      1) submission of applications to the authorized body, that are not ensured by a competitive sector of the demand for grain for the approval of the volume of formation of the state stabilization resources of grain;
      2) determination on a tender basis:
      grain processing organizations to sale them grain of the state realizable and state stabilization resources of grain in order to regulate the domestic market;
      baking organizations to sale them flour, produced from the grain of the state realizable and state stabilization resources of grain;
      3) partial reimbursement of the cost of the purchased grain of the realizable state and state stabilization resources of grain to the grain processing organizations in order to regulate the domestic market;
      4) control over the targeted use of grain of the state realizable and state stabilization resources of grain by the grain processing organizations;
      5) definition of overall price level of flour and bakery products, made from the grain of the state realizable and state stabilization resources of grain, and overseeing its implementation by grain processing organizations, baking organizations and organizations of wholesale and retail trade;
      6) implementation in favor of the local government of other powers, delegated to the local executive bodies by the legislation of the Republic of Kazakhstan.
      Footnote. Chapter is supplemented by Article 6-1 in accordance with the Law of the Republic of Kazakhstan dated 10.01.2006 No. 116 (the order of enforcement see Article 2); is in the wording of the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); as amended by the Law of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012); dated 13.06.2013 No. 102-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 03.07.2013 No. 124-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 6-2. Agent functions

      Agent performs the following functions:
      1) formation, refreshment, transportation and use of state resources of grain;
      2) formation of a money reserve;
      3) providing on demand of the local executive body of the region a list of domestic grain producers, fulfilled the obligation to form the state resources of grain;
      4) selection in the established procedure the cereal receiving companies for storing the state resources of grain;
      5) issuance of seed and feed loans to domestic agricultural producers from the state resources of seeds and the state resources of feed grain.
      Footnote. Chapter is supplemented by Article 6-2 in accordance with the Law of the Republic of Kazakhstan dated 10.01.2006 No. 116 (the order of enforcement see Article 2); is in the wording of the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2).

Article 6-3. State control over the grain market

      1. State control over the grain market takes the form of checks and other forms.
      2. Check is carried out in accordance with the Law of the Republic of Kazakhstan “On State Control and Supervision in the Republic of Kazakhstan”. Other forms of state control are carried out in accordance with this Law.
      Footnote. Chapter 2 is supplemented by Article 6-3 in accordance with the Law of the Republic of Kazakhstan 17.07.2009 No. 188-IV (the order of enforcement see Article 2); as amended by the Law of the Republic of Kazakhstan dated 06.01.2011 No. 378 -IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 7. State control over the safety and quality of grain

      1. Grains and its life cycle processes on the territory of the Republic of Kazakhstan shall meet the requirements of this Law, the technical regulations, sanitary and phytosanitary rules and regulations and normative documents on standardization.
      2. State control over the safety and quality of grain is carried out by the structural division of the local executive body.
      3. State control over the grain quality shall include:
      1) control over the definition of quality indicators of grain during the acceptance on the cereal receiving company and shipment;
      2) control over the quantitative and qualitative state of the grain.
      Footnote. Article 7, as amended by the Laws of the Republic of Kazakhstan dated 11.07.2001 No. 231; dated 13.10.2003 No. 488; dated 10.01.2006 No. 116 (the order of enforcement see Article 2); dated 29.12.2006 No. 209 (the order of enforcement see Article 2); dated 17.07.2009 No. 188-IV (the order of enforcement see Article 2); dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); dated 10.07.2012 No. 36-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 7-1. Procedure for monitoring the implementation by domestic grain producers of the obligation for formation of the state reserves of grain

      The local executive body of the region in order to monitor the implementation by domestic grain producers of the obligation to form the state resources of grain, performs the following functions:
      1) requests from the agent a list of domestic grain producers, fulfilled the obligation to form the state resources of grain;
      2) sends notifications to domestic producers of grain, that have not fulfilled the obligation to form the state resources of grain, on the confirmation of execution of this duty;
      3) if the obligation to form the state resources of grain is not confirmed by a domestic producer of grain within one month, shall issue a directive to eliminate violations of the legislation of the Republic of Kazakhstan on grain;
      4) prepares the protocols on administrative offences and imposes administrative penalties in accordance with the legislation of the Republic of Kazakhstan on administrative offences.
      Footnote. The Law is supplemented by Article 7-1 in accordance with the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2).

Article 7-2. Procedure for monitoring the targeted use of grain of the state realizable and state stabilization resources of grain by grain processing organizations

      1. Grain of the state realizable and state stabilization resources of grain, sold by agent to the grain processing organizations in order to regulate the domestic market shall be subject to the targeted use.
      2. The mandatory condition for admission to tender to determine the grain processing organizations to sell the grain of the state realizable and state stabilization resources of grain in order to regulate the domestic market must be the adoption by grain processing organizations the commitments to the targeted use of the marketed grain.
      3. The local executive body of the region, the city of republican significance, capital in order to exercise control over the targeted use of grain of the state realizable and state stabilization resources of grain by grain processing organizations shall:
      1) request of the grain processing organizations the information about using grain of the state realizable and state stabilization resources of grain, sold them by the agent in order to regulate the domestic market, with supporting documents;
      2) in the case of non-provision by the grain processing organizations the information about using grain of the state realizable and state stabilization resources of grain for the intended purpose, issue within one month a directive to the grain processing organization to eliminate violations of the legislation of the Republic of Kazakhstan on grain;
      3) make protocols on administrative offences and impose administrative penalties in accordance with the legislation of the Republic of Kazakhstan on administrative offences.
      Footnote. The Law is supplemented by Article 7-2 in accordance with the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2).

Article 8. Examination of the quality of grain

      1. Examination of the quality of grain is carried out by the laboratories, accredited in accordance with the legislation of the Republic of Kazakhstan.
      2. Sell of grain for export and import without a passport of grain quality, as well as other documents, required under the legislation of the Republic of Kazakhstan is not allowed.
      Footnote. Article 8 – is in the wording of the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488. As amended – dated 29 December, 2006 No. 209 (the order of enforcement see Article 2).

Article 9. Transportation of grain

      1. Grain transportation on the territory of the Republic of Kazakhstan is carried out by railway, automobile, sea and inland waterway transport that are integral system of direct and mixed traffic.
      2. Authorized body monitors within its competence the shipment and transportation (carriage) of state resources of grain.
      In order to ensure the safety of the state resources of grain, the cereal receiving companies, storing the grain of state resources, and the transportation organizations that export grain from the said cereal receiving companies, must coordinate with the authorized body of any quantity of grain shipments in the order, determined by the Government of the Republic of Kazakhstan.
      3. The part of grain, to be transported by any mode of transport in accordance with the rules of cargo for this transport, is accompanied by documents, certifying their compliance with the technical regulations and normative documents on standardization.
      4. When using the state resources of grain to ensure the food security, humanitarian assistance, regulation of the domestic market, the shipping services, transportation, certification of grain shall be available at the priority (high priority) order, providing timely execution of obligations to deliver grain by agent.
      Footnote. Article 9, as amended by the Laws of the Republic of Kazakhstan dated 13.10.2003 No. 488; dated 29.12.2006 No. 209 (the order of enforcement see Article 2); dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 2-1. General safety requirements for grain and processes of its life cycle

      Footnote. Chapter 2-1 is supplemented – by the Law of the Republic of Kazakhstan dated 29 December 2006 No. 209 (the order of enforcement see Article 2).

Article 9-1. Objects of technical regulation

      Objects of technical regulation are grain and processes of its life cycle.

Article 9-2. Confirmation of compliance

      Confirmation of compliance of grain with the requirements, determined by technical regulations shall be in accordance with the legislation of the Republic of Kazakhstan.

Article 9-3. Requirements for information on safety and quality of grain

      In order to prevent acts, misleading consumers about the safety and quality of grain, the grain market participants are required to provide buyers and (or) consumers with the complete and accurate information about the safety and quality of grain.

Article 9-4. Safety requirements for grain

      1. Grains, depending on the intended use must comply with the complex requirements to ensure safety.
      2. Contents of potentially hazardous chemicals and biological objects, residual quantities of pesticides and agrochemicals, including fumigants, harmful substances and impurities in the grain, as well as moisture content must not exceed the maximum allowable level of values, ??established by technical regulations.

Article 9-5. Safety requirements for the production of grain

      Owners and users of land are obliged to implement the grain production by methods that ensure the reproduction of fertility of agricultural land, as well as exclude or limit the adverse effects of such activities on the environment.

Article 9-6. Safety requirements for the storage of grain

      1. Grain storage is performed in granaries that meet the environmental, construction, fire, sanitary-epidemiological and phytosanitary requirements, ensuring the safety of grain.
      2. Safety requirements for the storage of grain by types of risks are established by technical regulations.

Article 9-7. Safety requirements for the transportation of grain

      1. Transportation of grain shall be carried out under the conditions ensuring the safety and security of its quality indicators.
      2. Grain is transported in clean, dry, free of foreign smell, no pest infestation vehicles.

Article 9-8. Safety requirements for recycling and destruction of grain

      1. Grains, recognized by the results of laboratory research as unfit for its intended use shall be examined for its further use (recycling) or destruction in the manner, prescribed by technical regulations.
      2. Grains for the period necessary for examination and decision on the possibility of its use (recycling) or destruction shall be kept in the separate premises, indicating the volume of the party and shall be subject to the conditions, precluding access to the grain.
      3. Expenses, related to transportation, storage, examination, using (recycling) or destruction of grain, unfit for its intended use, shall be paid by the owner.

Chapter 3. State support for the production and sale of grain

Article 10. Forms of state support

      In order to ensure the stability of the grain market, the state carries out the following forms of support to the production and sale of grain:
      1) cheapening for domestic agricultural producers the cost of elite seeds in the order, determined by the authorized body;
      2) organization of leasing deliveries of machinery and equipment;
      3) (is excluded).
      4) purchase of grain to the state grain resources from the domestic producers of grain at market prices;
      4-1) sale of the state realizable and state stabilization resources of grain to the grain processing organizations;
      4-2) lending of grain processing organizations for the purchase of grain of the state realizable and state stabilization resources of grain in order to regulate the domestic market;
      4-3) reimbursement of costs of agent for the sale of grain of the state resources of grain for humanitarian assistance, regulation of the domestic market in the case of insufficient funds of money reserve;
      5) issuing seed loans to domestic agricultural producers from the state resources of seeds;
      6) (is excluded).
      7) funding of research programs for the conservation of soil fertility;
      8) assistance in the introduction of new advanced technologies of production and grain storage;
      9) allocation of feed loans to domestic agricultural producers from the state resources of feed grain;
      10) creating the conditions for effective circulation of grain receipts;
      10-1) cheapening to domestic agricultural producers the cost of fertilizers and fuels and lubricants in accordance with the budgetary programs;
      11) take the necessary measures to ensure the essential needs of the domestic market for petroleum products;
      12) (is excluded – by the Law of the Republic of Kazakhstan dated 10 January, 2006 No. 116 (the order of enforcement see Article 2 of the Law of the Republic of Kazakhstan № 116);
      13) training of personnel for agro-industrial complex in accordance with the state educational order;
      14) adoption of measures to create a competitive environment in the regions to provide services for conformity assessment in the field of technical regulation;
      15) development of anti-dumping measures to protect grain producers;
      16) adoption of measures to revive the domestic agricultural engineering.
      Footnote. Article 10, as amended by the Laws of the Republic of Kazakhstan dated 13.10.2003 No. 488; dated 20.12.2004 No. 13 (shall be enforced from 01.01.2005); dated 29.12.2006 No. 209 (the order of enforcement see Article 2); dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 4. State resources of grain

Article 11. State resources of grain

      1. State resources of grain consist of:
      1) the state reserve of food grains;
      2) state resources of feed grains;
      3) state resources of seeds;
      4) state realizable resources of grain;
      5) state stabilization resources of grain.
      2. State reserve of food grains is intended to provide:
      1) mobilization needs of the Republic of Kazakhstan;
      2) food security of the Republic of Kazakhstan.
      3. State resources of feed grain are intended to meet the needs of livestock and poultry feed.
      4. State resources of seed – state seed reserves, created and intended to assist domestic agricultural producers in cases of emergencies, ensuring the sustainable needs of the Republic of Kazakhstan on the seed, implementation of strain renovation, strain changing, enforcement of the international agreements.
      5. State realizable resources of grain - grain reserve, created and intended for refreshment of the state reserve of food grains, state resources of seeds, state resources of feed grains, humanitarian assistance, ensure the exports of grain, as well as domestic sales, including for its regulation.
      State realizable resources of grain may be used to regulate the domestic market to the formation of the state stabilization resources of grain and (or) in the case of their insufficiency in the manner, prescribed by the rules of formation, storage, refreshment, transportation and use of state resources of grain.
      6. State stabilization resources of grain - grain reserves, created and intended to ensure food safety and regulation of the domestic market of grain by ensuring the needs of the regions, the city of republican significance, capital of the grain to the extent not provided by the competitive sector.
      7. Expenses for storage and transportation of state resources of grain are funded by:
      1) the budget - for the state reserve of food grains, the state stabilization resources of grain;
      2) other sources, identified by the Government of the Republic of Kazakhstan - for the state resources of seeds, state resources of feed grains, state realizable resources of grain.
      8. When using the state realizable resources of grain for humanitarian assistance, the grain price and delivery charge of humanitarian aid shall be reimbursed from the budget funds.
      9. When using the state resources for grain, the regulation of the domestic market at prices lower than the purchase price (including selling expenses) the loss, calculated in accordance with the international financial reporting standards, shall be compensated at the expense of the money reserve.
      If funds of money reserve are insufficient, the losses of agent shall be compensated from the budget.
      10. For compensation of losses of the agent, occurred in the use of state resources of grain, the agent presents the documents, supporting the allocation of money (acts of works, consignment notes) to the authorized body.
      Footnote. Article 11 is in the wording of the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2).

Article 11-1. Formation of state resources of grain

      1. Formation of state resources of grain shall be in the order, established by the authorized body, through:
      1) repurchase of grain from domestic grain producers with the acreage of grain crops of two hundred and fifty acres or more, in accordance with Article 11-2 of this Law;
     2) participation of the agent in grain production by providing domestic grain producers of financial resources on the basis of the production sharing agreements;
      3) purchase of grain from domestic grain producers on the basis of their bids (offers);
      4) repurchase of grain from grain exporters in accordance with Article 12-3 of this Law.
      2. Payment for grain, delivered to the state grain resources, shall be at the purchase price.
      3. Grain shall be delivered to the state resources of grain through the endorsement on the grain receipts.
      4. Expenses for purchase of grain to the state grain resources shall be paid by:
      1) the budget funds - for the state reserve of food grains, the state realizable resources of grain, the state stabilization resources of grain;
      2) other sources, identified by the Government of the Republic of Kazakhstan - for the state resources of seeds, the state resources of feed grain.
      Formation of the state stabilization resources of grain shall also be at the expense of funds, received from the use of state stabilization resources of grain and transferred in trust to the agent.
      5. Agent provides the state reserves of grain during the calendar year.
      Footnote. The Law is supplemented by Article 11-1 in accordance with the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); as amended by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 11-2. Duty of the domestic grain producers to form state resources of grain

      1. Domestic producers of grains, having acreage of grain crops of two hundred and fifty acres or more are required to participate in the formation of the state resources of grain through the conclusion of a contract with an agent on grain deliveries to the state grain resources on a priority basis within a period not later than October 15 of this year.
      Domestic grain producers have the right not to participate in the formation of the state resources of grain in the following cases:
      1) the sown area of grain crops of the grain producer is less than two hundred fifty acres;
      2) the authorized body does not establish a quota for purchase of grain in the state grain resources within the relevant region.
      2. Size of grain supply of domestic grain producers, having the sown area of grain crops of two hundred and fifty acres or more, to the state resources of grain as a percentage of gross harvest of grain is annually approved by the decision of the local executive body of the region and communicated to the domestic producers of grain, except in cases, provided in subparagraph 2) of paragraph 1 of this Article.
      Size of grain supplies as a percentage of gross harvest shall be equal for all domestic grain producers of the relevant region with acreage of grain crops of two hundred and fifty acres or more.
      3. The local executive bodies of regions provide sales of grain by the domestic grain producers, having the sown area of grain crops of two hundred and fifty acres or more, to the agent within the approved size of supplies.
      4. Domestic producers of grain, having the sown area of grain crops of two hundred and fifty acres or more, shall be entitled to enter into contracts of grain sales with a third party after the fulfillment of the obligation to form the state resources of grain, established by paragraph 1 of this Article.
      In the case of non-compliance with the requirement under the first part of this paragraph, the contract of grain sales between the domestic grain producer and a third party may be invalidated in court at the suit of the authorized body, the local executive bodies of regions or an agent.
      5. Duty of domestic grain producers, specified in paragraph 1 of this Article shall be deemed as fulfilled:
      1) in case of failure of the agent to sign the contract for the supply of grain due to the completion of formation of state resources of grain in the prescribed amount, provided that the offer of the domestic grain producer, having the sown area of grain crops of two hundred and fifty acres or more, for the supply of grain was sent to the agent before 15 October of the current year;
      2) in the case, if a domestic grain producer enters into the production sharing agreement with the agent. In this case, the amount of supply to the state grain resources, provided in the agreement for the current year shall not be less than the amount, established in accordance with paragraph 2 of this Article.
      6. Information on domestic grain producers, fulfilled the obligation to supply grain to the state grain resources shall be posted on the Internet resources of the authorized body, an agent in the fourth quarter of this year.
      Footnote. The Law is supplemented by Article 11-2 in accordance with the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2).

Article 12. Management of state resources of grain

      1. Management of state resources of grain within the competence, defined by the authorized body, is carried out by the agent on the basis of the contract.
      Agent based on the results of activities, related to the management of state resources of grain presents statements to the authorized body and in accordance with the civil legislation of the Republic of Kazakhstan shall be responsible for the mismanagement of state resources of grain.
      2. Account of operations, related to the management of state resources of grain by the agent, is performed separately from accounting results of its own financial and economic activity.
      Footnote. Article 12 is in the wording of the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); as amended by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 4-1. State regulation of activities of grain exporters

Article 12-1. Reporting of grain exporters

      1. Exporters of grain are required to submit the primary statistical data in accordance with the legislation of the Republic of Kazakhstan in the field of statistics.
      2. Upon written request of the authorized body, the grain exporters are required to provide information, related to the activities for sale of grain to export.
      Footnote. Article 12-1, as amended by the Laws of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); dated 19.03.2010 No. 258-IV.

Article 12-2. Suspension and deprivation of license to carry out activities for the sales of grain for export

      Footnote. Article 12-2 is excluded by the Law of the Republic of Kazakhstan dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012).

Article 12-3. Duty of grain exporters to from state resources of grain

      1. In order to form state resources of grain for food security, the grain exporters are obliged to deliver grain to the state resources of grain in a certain amount, determined by the authorized body, that is calculated as a percentage of the exported volume.
      2. Decision on the formation of state resources of grain through the purchase of grain from grain exporters shall be made ??by the authorized body, if the state resources of grain cannot be formed in full by ways, provided in subparagraphs 1) - 3) of paragraph 1 of Article 11-1 of this Law.
      3. Exporters of grain are obliged to deliver grain to the state resources of grain before the end of the calendar year.
      4. Exporter of grain in grain transportation across the customs border of the Customs Union and (or) the State Border of the Republic of Kazakhstan shall submit to the customs authorities of the Republic of Kazakhstan a confirmation of the authorized body on fulfilment of obligation to deliver grain to the state resources of grain.
      5. Duty of grain exporter to form state resources of grain is considered to be executed when the agent refused to enter into a contract to deliver grain because the completion of formation of the state resources of grain in the prescribed amount, provided that the proposal of grain exporter for delivery of grain was sent to the agent before December 30 of the current year.
      Footnote. The Law is supplemented by Article 12-3 in accordance with the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Article 2); as amended by the Law of the Republic of Kazakhstan dated 30.06.2010 No. 297-IV (shall be enforced from 01.07.2010); dated 07.11.2014 No. 248-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 5.Cereal receiving companies, current enterprises and service- procurement centres

      Footnote. Title of Chapter 5 is in the wording of the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Art. 2).

      Note of the RCLI!
      Article 13 shall be changed by the Law of the Republic of Kazakhstan dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after its first official publication).

Article 13. Assignment of cereal receiving company

      1. Cereal receiving companies are recognized as a warehouse of general use. Contracts for grain storage (hereinafter – the contract), entered into by them shall be public contracts.
      2. Services of warehousing activities with the issuance of grain receipts shall be carried out by cereal receiving ??companies under the license.
      Legal entity is entitled to receive a license to perform service activities for warehouse activities with the issuance of grain receipts in one or more granaries (elevators, cereal receiving points) in accordance with the legislation of the Republic of Kazakhstan on permits and notifications.
      Cereal receiving companies are prohibited to dispose fixed assets, without which significantly worsens or becomes impossible to implement fully their service activities for warehouse activities with the issuance of grain receipts in accordance with the qualification requirements for this type of activity.
      3. Any person that does not have an appropriate license, is not entitled to:
      1) provide services for warehousing activities with the issuance of grain receipts as a main or additional activity, except for the activities, carried out on the current enterprises and (or) service- procurement centres;
      2) use in its name, documents, announcements and advertisements of the word “cereal receiving company”, “granary”, “cereal receiving point”, “elevator” or derivative words, suggesting that it operates to provide services for warehouse activities with the issuance of grain receipts.
      Footnote. Article 13, as amended by the Laws of the Republic of Kazakhstan dated 13.10.2003 No. 488; dated 10.01.2006 No. 116 (the order of enforcement see Art. 2); dated 12.01.2007 No. 222 (shall be enforced upon expiry of six months from the date of its official publication); dated 26.07.2007 No. 313 (the order of enforcement see Art. 2); dated 11.12.2009 No. 229-IV (the order of enforcement see Art. 2); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012); dated 16.05.2014 (shall be enforced upon expiry of six months from the date of its official publication).

Article 14. Duties of cereal receiving company

      Cereal receiving company shall:
      1) comply with the order of grain storage, as well as measures to ensure their qualitative and quantitative safety according to the regulatory legal act, approved in the established order;
      2) ensure where necessary in accordance with established procedure the sampling of grain to its owners;
      3) upon request of the holder of grain receipt, in exchange for grain receipts release in full grain, stored in accordance with the terms of the contract, except as provided for in Articles 31 and 40 of this Law, as well as the absence of debt for grain storage, secured by grain receipts;
      4) provide for a priority order the receipt, storage and shipment of grain of the state resources of grain.
      Footnote. Article 14, as amended by the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Art. 2).

Article 15. Reimbursement of expenses of cereal receiving company for grain storage

      1. Reimbursement of expenses of cereal receiving companyfor grain storage shall be in accordance with the contract.
      2. Cereal receiving company has the right to:
      1) cover the cost of storage by money or withholding of an appropriate amount of stored grain with the consent of the holder of grain receipts, followed by its free sale at the grain market;
      2) reimburse the expenses, stipulated in the contract or in the legislative acts on the other operations in the interests of the holder of grain receipts.

Article 16. The system and fund (s) guaranteeing the fulfillment of obligations on grain receipts

      1. Participants of the system guaranteeing the fulfilment of obligations under grain receipts can only be cereal receiving companies, on the basis of agreements with fund (s) to guarantee the fulfillment of obligations on grain receipts.
      Cereal receiving companies, not involved in the system of guaranteeing the fulfillment of obligations on grain receipts, take out insurance for their civil liability to the holders of grain receipts and its parts, that provides upon the occurrence of the fact of loss or deterioration of the quality of grain received for storage, the insurance payment to each holder of grain receipt in an amount not less than eighty percent of the market value of lost or degraded quality of grain, existing at the time of reimbursement, without conditions of franchise.
      2. When occurrence of the fact of loss or deterioration of the quality of grain, received for storage by cereal receiving company that is a participant of the system of guaranteeing the fulfillment of obligations on grain receipts, fund (s) to guarantee the fulfillment of obligations on grain receipts makes the repayment of obligations of this cereal receiving company to the holders of grain receipts in the amount of money not less than eighty percent of the market value of the lost or degraded quality of grain, existing at the time of reimbursement.
      The fact of loss or deterioration of the quality of grain is specified by the structural division of the local executive body.
      To the fund (s), guaranteeing the fulfillment of obligations on grain receipts that repaid the obligations of the cereal receiving company to the holder of grain receipts, the right to claim that the holder of grain receipt has to this cereal receiving company passes within the amount paid.
      Cereal receiving companies –participants of the system of guaranteeing the fulfillment of obligations under grain receipts shall submit to the fund (s), guaranteeing the fulfillment of obligations on grain receipts the register of grain receipts in order to ensure the fulfillment of the obligations on grain receipts.
      3. Cereal receiving companies –participants of the system of guaranteeing the fulfillment of obligations under grain receipts may insure (mutually insure) their property and other property interests in accordance with the legislation of the Republic of Kazakhstan.
      4. Satisfaction of claims of holders of grain receipts of cereal receiving company–participant of the system of guaranteeing the fulfillment of obligations under grain receipts, on which in accordance with this Law introduced the temporary administration, shall be made by the ??fund (s), guaranteeing the fulfillment of obligations on grain receipts on a priority basis in accordance with the legislation of the Republic of Kazakhstan.
      Footnote. Article 16 is in the wording of the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Art. 2); as amended by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 16-1. Current enterprises and service-procurement centres

      As a current enterprises is recognized the technical structure, owned by an individual or legal entity and intended for primary undermining of grain to form the consignments of grain and seeds and their storage.
      A current enterprise can be established in the form of a service-procurement centre.
      Activities, carried out on the current enterprise and (or) in a service- procuring centres shall not be subject to licensing. Persons, engaged in these activities are not allowed to give grain receipts.
      Footnote. The Law is supplemented by Article 16-1 in accordance with the Law of the Republic of Kazakhstan dated 13.10.2003 No. 488; is in the wording of the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Art. 2).

Chapter 6. Regulation of activities of cereal receiving companies

Article 17. Methods for regulation of activities of cereal receiving companies

      In order to ensure the compliance of the cereal receiving companies with the qualification requirements in the licensing to provide services of warehouse activities with the issuance of grain receipts, protect the interests of owners of grain, the regulation of cereal receiving companies shall be by:
      1) publication of binding to the cereal receiving companies regulatory legal acts in the prescribed manner;
      2) inspections (audits) of activities of cereal receiving companies for compliance with the qualification requirements for provision of services for warehousing activities with the issuance of grain receipts, as well as the requirements for conducting quantitative and qualitative accounting and preservation of grain according to the registry data of grain receipts;
      3) impose sanctions on cereal receiving companies, as well as their officials, in accordance with the legislation;
      4) (is excluded).
      Footnote. Article 17, as amended – by the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488; dated 20 December 20, 2004 № 13 (entered into force on 1 January 2005); January 10, 2006 № 116 ( the introduction order in action see item 2 of the Law № 116 ); RK Law of July 26, 2007 № 313 ( the introduction order in action see item 2 ); from 15.07.2011 № 461 -IV ( coming into force from 30.01.2012 ).

Article 18. State regulation of prices (tariffs) for services, provided by cereal receiving companies in a dominant position

      State regulation of prices (tariffs) for services of cereal receiving companies, occupying a dominant position in the market shall be carried out by the regulatory body in accordance with the legislation of the Republic of Kazakhstan.

Article 19. Limitation of activities of cereal receiving companies

      1. Cereal receiving companies may not engage in activities that are not related to the provision of warehouse activities with the issuance of grain receipts, including to issue guarantees and provide property as collateral for the obligations of third parties, except:
      1) production and sales of grain mill products, animal feed, bread and pasta;
      2) provision of services for the storage of fuel and lubricants, solid fuel;
      3) provision of non-productive areas of cereal receiving company to install telecommunications facilities;
      4) provision of services for the lease of the base of oil and storage tanks for fuels and lubricants.
      At the same time, facilities operated in connection with the above activities shall be technologically linked to the granary (elevator, cereal receiving points) and (or) to be on the same or adjacent areas. Cereal receiving companies are obliged to ensure the maintenance of separate accounting of operations of services activities for warehouse activities with the issuance of grain receipts and activities, not related to warehouse operations with the issuance of grain receipts.
      2. Cereal receiving companies with a dominant position in the market, shall be prohibited to:
      1) charge fees for services, exceeding the amount established by the regulatory body, in accordance with Article 18 of this Law;
      2) impose the conditions on access to the services or perform other actions leading to discrimination against consumers of services or generate income by charging fees to consumers, unrecorded in the established rates.
      Footnote. Article 19 is in the wording of the Law of the Republic of Kazakhstan dated 13.10.2003 No. 488; Article as amended by the Laws of the Republic of Kazakhstan dated 26.07.2007 No. 313 (the order of enforcement see Art. 2); dated 21.11.2008 No. 89-IV (the order of enforcement see Art. 2); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012); dated 10.07.2012 No. 33-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 20. Audit of cereal receiving company

      1. To check and confirm the reliability of the annual financial statements of cereal receiving company, as well as the current state of its affairs, the cereal receiving company conducts mandatory annual audits.
      2. If the administration body of company evades the audit of the annual financial statements of cereal receiving company, as well as the current state of its affairs, audit may be assigned to the court decision upon the application of any interested person.
      3. Implementation of inspection of the administration body of cereal receiving company by auditing commission (auditor) shall not exempt the cereal receiving company from the obligation to conduct audit.

Article 21. Accounting and reporting of cereal receiving companies

      1. Cereal receiving companies and other participants of the grain market shall present the primary statistical data in accordance with the legislation of the Republic of Kazakhstan in the field of state statistics.
      2. Cereal receiving companies must submit upon the written request of the authorized body and structural division of the local executive body the information, related to their core activities.
      Footnote. Article 21, as amended by the Laws of the Republic of Kazakhstan dated 13.10.2003 No. 488; dated 26.07.2007 No. 313 (the order of enforcement see Art. 2); dated 11.12.2009 No. 229-IV (the order of enforcement see Art. 2); dated 19.03.2010 No. 258-IV; dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 22. Publication of main performance indicators of cereal receiving company

      Cereal receiving companies publish in the media an annual balance sheet and profit and loss statement in the form, prescribed by the legislation of the Republic of Kazakhstan, within one calendar month after the deadline for their submission to the bodies of government revenue.
      Footnote. Article 22 is in the wording of the Law of the Republic of Kazakhstan dated 07.11.2014 No. 248-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 23. Accounting and storage of documents

      1. Cereal receiving companies are required to provide strict accounting and storage of documents, reflecting the transactions with grain, made ??by them.
      2. List of documents, to be stored and the storage periods shall be established by the legislation.

Article 24. Inspection (verification) of activities of cereal receiving companies

      Footnote. Article is excluded by the Law of the Republic of Kazakhstan dated 26 July, 2007 No. 313 (the order of enforcement see Art. 2).

Article 24-1. State Grain Inspector and his (her) powers

      Footnote. Article is excluded by the Law of the Republic of Kazakhstan dated 26 July, 2007 No. 313 (the order of enforcement see Art. 2).

Article 25. Responsibility of cereal receiving companies

      1. In case of violations of regulatory legal acts on issues of storage, quantitative and qualitative accounting of grain, as well as the issuance, circulation and repayment of grain receipts, identifying wrongful acts or omissions of officials of cereal receiving companies that may threaten the interests of holders of grain receipts, issued by the cereal receiving company, the structural division of the local executive body may apply to the cereal receiving company the one of the following responsibilities:
      1) imposition and collection of fines on the grounds, established by the laws of the Republic of Kazakhstan;
      2) (is excluded – by the Law of the Republic of Kazakhstan dated 10 January, 2006 No. 116 (the order of enforcement see Art. 2 of the Law of the Republic of Kazakhstan No. 116);
      3) introduction of a temporary administration of the cereal receiving company in the cases specified in Article 28 of this Law.
      2. In the case of provision of service for warehouse activities with the issuance of grain receipts without a license, income from these operations (activities) shall be taken to the appropriate budget in accordance with the legislation of the Republic of Kazakhstan.
      3. Imposition on cereal receiving companies, their officials, fines and their collection shall be made ??in the manner prescribed by the legislative acts of the Republic of Kazakhstan.
      Footnote. Article 25 as amended – by the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488; dated 10 January, 2006 No. 116 (the order of enforcement see Art. 2 of the Law of the Republic of Kazakhstan No. 116); dated 26 July, 2007 No. 313 (the order of enforcement see Art. 2); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 26. Suspension of activity, deprivation of license for provision of services in the warehouse activities with the issuance of grain receipts

      Footnote. Title, as amended by the Law of the Republic of Kazakhstan dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012).

      Suspension of activity, deprivation of license for provision of services in warehouse activities with the issuance of grain receipts, shall be carried out in accordance with the legislation of the Republic of Kazakhstan on Administrative Offences.
      Footnote. Article 26 as amended – by the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488; dated 29 December, 2006 No. 209 (the order of enforcement see Art. 2); Article is in the wording of the Law of the Republic of Kazakhstan dated 26 July, 2007 No. 313 (the order of enforcement see Art. 2); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012).

Article 27. Deprivation of license to carry out activities for grain storage

      Footnote. Article is excluded by the Law of the Republic of Kazakhstan dated 26 July, 2007 No. 313 (the order of enforcement see Art. 2).

Article 28. Temporary management of cereal receiving company

      1. Temporary management of cereal receiving company is compulsory conduct of complex administrative, legal, financial, organizational, technical and other measures and procedures in relation to cereal receiving companies to ensure their obligations on grain receipts.
      2. Temporary management on cereal receiving company is introduced by the court decision in the presence of one of the following facts:
      1) systematic improper fulfillment of contractual obligations on grain storage;
      2) excess of the amount of grain, provided by grain receipts over the actual amount of grain, stored at cereal receiving company.
      3. Temporary management of cereal receiving company shall be carried by commission for temporary management and temporary administration.
      4. Temporary management of cereal receiving company shall be carried at the expense of cereal receiving company.
      5. The commission members for temporary management, members of the temporary administration shall be liable under the laws of the Republic of Kazakhstan for damage, caused to cereal receiving company by unlawful actions during the temporary management.
      Footnote. Article 28 as amended – by the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488; by the Law of the Republic of Kazakhstan dated 26 July, 2007 No. 313 (the order of enforcement see Art. 2); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 29. Introduction of temporary management of cereal receiving company

      Footnote. Article 29 is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 30. Commission on temporary management

      1. Commission on temporary management is composed of representatives of the authorized body, the local executive body of the region, cereal receiving company, holders of grain receipts, issued by the cereal receiving company, the fund (s) to guarantee the fulfillment of obligations on grain receipts, with which the cereal receiving company entered into a contract of participation.
      2. Before making a decision on introduction of temporary management, the structural division of the local executive body directs cereal receiving company, fund (s) to guarantee the fulfillment of obligations on grain receipts, with which the cereal receiving company entered into a contract of participation and all holders of grain receipts, issued by the cereal receiving company, a proposal to present within three days the candidates for the Commission on temporary management.
      In case of failure or refusal to present the candidates, the structural division of the local executive body may independently form the commission for temporary management.
      3. The competence of the commission for temporary management includes:
      1) appointment (dismissal) of members of the temporary administration;
      2) approval of the report of the temporary administration on the results of activities;
      3) monitor the activities of the temporary administration.
      4. If the cereal receiving company is not a participant of the fund (s) to guarantee the fulfillment of obligations on grain receipts, the votes of representatives to the commission for temporary management shall be allocated in the decision-making in the percentage as follows:
      1) holders of grain receipts - fifty percent;
      2) cereal receiving company - twenty-five percent;
      3) the authorized body - twenty-five percent.
      5. In the case of participation of the cereal receiving company in the fund (s) to guarantee the fulfillment of obligations on grain receipts, the votes of representatives to the commission for temporary management shall be allocated in the decision-making in the percentage as follows:
      1) holders of grain receipts - twenty-five percent;
      2) cereal receiving company - twenty-five percent;
      3) the authorized body - twenty-five percent;
      4) the fund (s) to guarantee the fulfillment of obligations on grain receipts - twenty-five percent.
      6. Commission for temporary management has the right to make decisions in the participation of representatives with at least two thirds of the total votes.
      Decisions of the commission for temporary management shall be taken by majority vote.
      7. Other issues of formation of the commission for temporary management, organization of its activities shall be determined by the legislation of the Republic of Kazakhstan.
      Footnote. Article 30 is in the wording of the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Art. 2); as amended by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 31. Temporary administration

      1. Temporary administration shall be appointed by the commission for temporary management.
      2. During the period of temporary management of cereal receiving company:
      1) all powers to manage cereal receiving company shall be transferred to the temporary administration;
      2) the rights of the founders (shareholders) to manage cereal receiving company shall be suspended;
      3) the powers of the governing bodies of cereal receiving company and its executives shall be suspended;
      4) all transactions, made on behalf of and at the expense of cereal receiving company without the knowledge and written consent of the temporary administration shall be deemed invalid.
      3. Temporary administration shall be entitled to:
      1) make decisions on all matters of the cereal receiving company within its competence as defined by this Law;
      2) suspend for the period of temporary management the satisfaction of all claims, arising from the grain receipts, up to twenty percent of the amount of grain, specified therein;
      3) enter into contracts and sign documents, aimed at restoring the obligations of cereal receiving company, under the grain receipts issued by it;
      4) act on behalf of and in the interests of cereal receiving company, including in court;
      5) in the case of participation of cereal receiving company in the fund to guarantee the fulfilment of grain receipts, make claims to the fund for debt repayment under the obligations, arising from grain receipts, issued by the cereal receiving company on a priority basis;
      6) engage independent experts to assess the operational issues, associated with the storage of grain;
      7) issue for the period of temporary management of cereal receiving company the orders within the competence in accordance with the legislation of the Republic of Kazakhstan.
      4. (Is excluded from 15 May, 2007 No. 253).
      Footnote. Article 31, as amended by the Law of the Republic of Kazakhstan dated 15 May, 2007 No. 253.

Article 32. Control over the activities of the temporary administration

      Footnote. Article 32 is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 33. Termination of temporary management of cereal receiving company

      1. Temporary management of cereal receiving company shall be terminated on the following grounds:
      1) after the period of temporary management, set by the decision of the court;
      2) the courts decides the early termination of temporary management;
      2. One of the following grounds for early termination of temporary management shall be:
      1) reducing the ability of cereal receiving company to fulfill their obligations under grain receipts issued;
      2) satisfaction of all announced during the temporary management requirements of holders of grain receipts in full in the absence of circumstances affecting the proper fulfillment of the requirements of other holders of grain receipts.
      3. Termination of temporary management of cereal receiving company (including early termination) in connection with the elimination of the reasons that led to its introduction entails the abolition of all restrictions on the cereal receiving company, established by the court decision.
      4. If the temporary management of cereal receiving company does not lead to restoration of the ability to fulfill obligations under grain receipts, the temporary administration:
      1) makes proposals to the relevant local executive body of the region on the deprivation of cereal receiving company a license for the provision of services on warehouse activities with issuance of grain receipts;
      2) before the expiry of the temporary management filed a lawsuit in court on forced liquidation of cereal receiving company.
      In the termination of temporary management in the period of consideration of the lawsuit on forced liquidation of cereal receiving company all rights and obligations of the plaintiff shall be transferred to persons performing the functions of the temporary administration”;
      Footnote. Article 33 is in the wording of the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of six months from the date of its official publication).

Chapter 6-1. Checking of the activities of grain exporters and cereal receiving companies

Article 33-1. Checking of the activities of grain exporters and cereal receiving companies

      1. Checking of the activities ofgrain exporters and cereal receiving companies shall be made ??by the authorized body independently or with the assistance of other state bodies.
      2. Exporters of grain and cereal receiving companies are obliged to assist the authorized body to conduct check on matters, specified in the task to checking, and provide access to all sources of information, necessary for checking.
      3. Employees of the authorized body are prohibited from disclosing or transfer to third parties the information, obtained during the checks of grain exporter and cereal receiving company.
      4. Persons, conducting checks shall be liable in accordance with the laws of the Republic of Kazakhstan for the disclosure of information, obtained during the checks of the grain exporter and cereal receiving company, and the information, constituting a trade secret.

Article 33-2. State grain inspector and his (her) powers

      1. Head of the authorized body may assign the additional special names “Chief state inspector of grain of the Republic of Kazakhstan” and “state grain inspector” to the relevant positions of public servants.
      2. State grain inspector of the authorized body shall perform the following functions:
      1) control over:
      the activities of accredited laboratories for testing the grain quality;
      the activities of grain exporters to ensure the compliance of laws of the Republic of Kazakhstan, decrees of the President of the Republic of Kazakhstan and resolutions of the Government of the Republic of Kazakhstan;
      2) participation in the annual survey of cereal receiving companies for their compliance with the qualification requirements;
      3) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No.239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      4) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      5) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      6) in the case of violations of the legislation of the Republic of Kazakhstan on grain, the issue of instructions to grain exporters and cereal receiving companies;
      7) drawing up protocols on administrative violations and making suggestions about bringing to administrative responsibility in accordance with the legislation of the Republic of Kazakhstan on Administrative Offences;
      8) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).
      3. State grain inspector of the authorized body has the right to freely visit (upon presentation of a service certificate and inspection act with a registration mark in the body for legal statistics) in accordance with the legislation of the Republic of Kazakhstan, the place of production, storage and processing of grain and obtain information, necessary for the implementation of state control.
      Footnote. Chapter 4-1 is supplemented by Article 33-2 in accordance with the Law of the Republic of Kazakhstan dated 26.07.2007 No. 313 (the order of enforcement see Art. 2); as amended by the Law of the Republic of Kazakhstan dated 17.07.2009 No. 188-IV (the order of enforcement see Art. 2); dated 11.12.2009 No. 229-IV (the order of enforcement see Art. 2); dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012); dated 10.07.2012 No. 36-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 7. Liquidation of cereal receiving companies and the procedure for alienation of granaries (elevators, cereal receiving points)

      Footnote. Title is amended – by the Law of the republic of Kazakhstan dated 13 October, 2003 No. 488.

Article 34. Types and grounds for liquidation of cereal receiving companies

      1. Cereal receiving company may be liquidated:
      1) under the decision of its founders (shareholders) the voluntary liquidation, in the absence of accounts payable. In this case, a notification to the structural division of the local executive body shall be sent;
      2) by the court decision in the cases stipulated by the legislative acts of the Republic of Kazakhstan (compulsory liquidation).
      2. Termination of activity of the cereal receiving companies shall be in accordance with the legislative acts of the Republic of Kazakhstan with the requirements of the legislation of the Republic of Kazakhstan on Rehabilitation and Bankruptcy, and this Law.
      Footnote. Article 34, as amended by the Law of the Republic of Kazakhstan dated 07.03.2014 No. 177-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 35. Grounds for compulsory liquidation of cereal receiving companies

      Liquidation of cereal receiving companies shall be by the court in cases of:
      1) bankruptcy;
      2) carrying out activities without proper authorization (license) or any activity, prohibited by the legislative acts, or with the repeated or gross violation of the legislation;
      3) in other cases, stipulated by the legislative acts.

Article 36. Recognition of cereal receiving company as bankrupt

      1. Cereal receiving company can be recognized as bankrupt by the court decision only in the prescribed manner.
      2. The possibility of amicable agreement of the parties in the case of bankruptcy of cereal receiving company, is excluded.
      Footnote. Article 36, as amended by the Law of the Republic of Kazakhstan dated 05.07.2008 No.60-IV (the order of enforcement see Art. 2).

Article 37. Features of alienation of granary (elevator, cereal receiving point) of cereal receiving company

      1. Granary (elevator, cereal receiving point) of cereal receiving company is indivisible property and shall be alienated by a single complex with the term of its use by a purchaser (recipient) for the purpose of storage of grain.
      2. Not later than two months before the sale of granary (elevator, cereal receiving point), the cereal receiving company shall notify the known to it holders of grain receipts on the alienation of the property complex, as well as give this advertisement in national print publications in the state and Russian languages.
      3. Upon the alienation of the property complex by cereal receiving company, the holder of grain receipts retains the right to early terminate the contract on storage and get grain in the established order, or renew the contract of storage with the new owner of granary (elevator, cereal receiving point) on the same conditions, as with the previous owner.
      4. Transactions on the sale of granary (elevator, cereal receiving point) by cereal receiving company, committed in violation of paragraphs 1-3 of this Article, may be invalidated by the court at the suit of grain receipts holders and other interested parties.
      5. Person, that acquired the granary (elevator, cereal receiving point) or received it in execution of a court decision (arbitration court) shall be liable for the obligations, arising from the grain receipts issued by the same cereal receiving company in the amount, established by an inventory report on balances of grain, composed by the commission on acceptance-transfer of grain.
      If an inventory report on balances of grain has not been made, the new owner of granary (elevator, cereal receiving point) shall be responsible for all grain receipts, issued by prior cereal receiving company.
      Footnote. Article 37 – is in the wording of the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488; as amended by the Law of the Republic of Kazakhstan dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 38. Priority of creditors of cereal receiving company, liquidated compulsorily

      1. Claims of creditors of the compulsorily liquidated cereal receiving company, including in connection with its bankruptcy, shall be satisfied in the manner prescribed in this Article.
      2. Costs, associated with the liquidation production, including activities to ensure the liquidation committee of cereal receiving company, as well as costs, arising from the need to ensure the basic functions of the liquidated cereal receiving company, shall be paid out of turn and constantly.
      3. Claims of creditors, recognized in the prescribed manner, must be satisfied in the following order:
      1) firstly, the claims of citizens to whom the liquidated cereal company is responsible for damage to life or health;
      2) secondly, estimates of wages of persons, working under an employment contract shall be made;
      3) thirdly, the claims of holders of grain receipts, containing information about the pledge shall be satisfied;
      4) in the fourth stage, the claims of holders of grain receipts that do not contain information about the pledge shall be satisfied;
      5) in the fifth stage, the claims of creditors under the obligations, secured by a pledge of property of the liquidated cereal receiving company shall be satisfied;
      6) in the sixth stage, the liabilities on obligatory payments to the budget shall be paid;
      7) in the seventh stage, calculation of value with other creditors shall be paid in accordance with the legislative acts.

Chapter 8. Grain receipts

Article 39. Grain receipt

      1. Cereal receiving company issues a grain receipt in confirmation of the acceptance of grain on grain storage.
      2. Grain receipt consists of two parts - a warehouse certificate and a pledge certificate, those if necessary can be separated from one another. Grain receipt and each of its parts shall be a warrant equity securities trading.
      3. Each part of the grain receipts shall equally contain the following mandatory details:
      1) the code, assigned by the local executive body of the region;
      2) the series and number of the form of grain receipt;
      3) the name, location and business identification number of cereal receiving company, accepting grain for storage;
      4) the current number of grain receipt in the register of the cereal receiving company;
      5) the name, location, date of state registration (re-registration), taxpayer identification number of the legal entity or the surname, name, patronymic (if any), address, taxpayer identification number, the number of identity document of an individual who provided grain for storage;
      6) the type of grain, its quantitative and qualitative characteristics;
      7) the period for which the grain accepted for storage, if it is set;
      8) the mark on paying for storage;
      9) the date of issue of the certificate;
      10) the signature of the authorized body and the seal of cereal receiving company.
      4. The document that does not meet the requirements of this Article shall not be a grain receipt.
      5. Upon separation of pledge certificate from warehouse certificate, the mark containing the following information shall be made on the warehouse certificate:
      1) the surname, name and as an option patronymic and the place of residence of the endorsee - in respect of an individual, the name and location of the endorsee - in respect of a legal entity;
      2) the nature of an obligation, secured by the pledge, its size, the rate of interest on it, and the period of performance;
      3) the signature of the endorsee;
      4) the date of separation of pledge certificate.
      6. Upon separation of pledge certificate from warehouse certificate, the mark containing the following information shall be made on the pledge certificate:
      1) the surname, name and as an option patronymic and the place of residence of the endorsee - in respect of an individual, the name and location of the endorsee - in respect of a legal entity;
      2) the nature of an obligation, secured by the pledge, its size, the rate of interest on it, and the period of performance;
      3) the signature of the endorsee;
      4) the date of separation of pledge certificate.
      7. The requirements to form, on which a grain receipt is issued, the order of their registration, acquisition, storage and disposal, as well as the requirements to sample of grain receipts shall be approved by the authorized body.
      8. Cereal receiving company is required to submit to the local executive body of the region the card with the surnames, names and patronymics of the persons, authorized to sign the grain receipts, the samples of their signatures, as well as the seal imprint, made on the grain receipt.
      9. Inconsistency of signatures, seal imprint on the grain receipt to the samples of signature and seal imprint, specified in the card, submitting to the local executive body of the region, shall be the basis for the recognition of the grain receipt as invalid.
      Footnote. Article 39 is in the wording of the Law of the Republic of Kazakhstan dated 13.10.2003 No. 488; as amended by the Laws of the Republic of Kazakhstan dated 10.01.2006 No. 116 (the order of enforcement see Art. 2 of the Law of the Republic of Kazakhstan No. 116); dated 12.01.2007 No. 224 (shall be enforced from 01.01.2012); dated 05.07.2011 No.452-IV (shall be enforced from 13.10.2011); dated 12.01.2012 No. 538-IV (the order of enforcement see Art. 2); dated 24.12.2012 No. 60-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 39-1. The procedure for issuing grain receipts

      1. Grain receipt is issued for each batch of grain that uniform in quality. Number of issued grain receipts for the entire amount of provided grain shall be determined by the owner of grain on its application.
      2. Grain receipts are issued to the owner with the registration and under his (her) signature in the register of grain receipts that maintained by cereal receiving company in chronological order.
      3. New grain receipt may be issued by cereal receiving company in cases of:
      1) lack of free space on it to make an endorsement;
      2) physical deterioration;
      3) loss.
      Footnote. It is supplemented by Article 39-1 – by the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488.

Article 40. Rights of holders of grain receipts and its parts

      1. The holder of grain receipt shall have the right to dispose the grain, stored at grain receiving company to the extent, specified in grain receipt.
      2. The holder of warehouse certificate shall have the right to dispose the grain, stored at cereal receiving company, but may not require the delivery of grain from cereal receiving company before repayment of debt under the pledge certificate in accordance with the legislation of the Republic of Kazakhstan.
      3. The pledge certificate holder shall have the right to:
      1) require a person, separated the pledge certificate from the warehouse certificate, to perform an obligation, certified by pledge certificate, and payment of interest on it;
      2) transfer the pledge certificate and the right to it to third parties.
      Footnote. Article 40 - is in the wording of the Law of the republic of Kazakhstan dated 13 October, 2003 No. 488.

Article 40-1. Transfer of rights under grain receipts and its parts

      1. Rights on grain receipts and parts thereof shall be transferred by making the endorsements on them.
      Endorsement on grain receipts, if the pledge certificate is not separated, shall be made only on the warehouse certificate.
      2. Separation of the pledge certificate shall be in accordance with paragraphs 5 and 6 of Article 39 of this Law.
      Footnote. It is supplemented by Article 40-1 – by the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488.

Article 41. Delivery of grain on grain receipts

      1. The holder of grain receipt or the holder of warehouse certificate for grain demand shall come him(her)self or send an authorized representative in the location of the cereal receiving company.
      2. Delivery of grain at the request of the holder of grain receipt shall be in return for the originals of the warehouse and pledge certificates that shall be repayable.
      Footnote. Article 41 – is in the wording of the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488.

Article 41-1. The procedure for exercising rights under the pledge certificate

      1. Upon the redemption of the debt by the holder of warehouse certificate in the amount of the obligation to the creditor, prior to the maturity of the obligation of the warehouse certificate, the holder of pledge certificate shall make an endorsement on the pledge certificate and return it to the holder of warehouse certificate.
      2. In the case of non-performance or improper performance of the obligation, certified by the pledge certificate, the holder of the pledge certificate shall be entitled to levy execution upon the grain, specified in the pledge certificate.
      3. If at the time of levy execution, the grain is claimed from cereal receiving company by the holder of warehouse certificate, and the cereal receiving company is presented a document, certifying the performance of the secured obligation and the payment of interest on it, then the holder of pledge certificate shall return the pledge certificate for redemption.
      Footnote. It is supplemented by Article 41-1 – by the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488.

Article 41-2. Sale of the pledged grain

      1. The holder of pledge certificate has the right to sell in accordance with the legislation of the Republic of Kazakhstan, the pledged grain and cover his (her) claims to other creditors of the pledger, in the case of dissatisfaction of claim, secured by the pledge within its period.
      Satisfaction of claims of the pledge certificate holder from the value of the pledged property shall be made, unless otherwise provided by the contract, by selling the pledged grain in the forced extrajudicial procedure with the trades that the trustee of the holder of pledge certificate organizes and conducts.
      Trustee of the pledge certificate holder makes notice to the pledgor on the non-performance of the obligations, provided by the pledge agreement, and simultaneously publishes in the media notice for tenders, including information about the time and place of the trading, the subject of trading, the order of its holding, the registration of participation in the trades and the initial price of the pledged grain.
      Trades shall be conducted not earlier than fourteen days from the date of publication of the notice about them in the media.
      2. Money from the sale of grain in the trades shall be distributed in the following order:
      1) primarily covers the costs, related to the organization and conduct of trades;
      2) secondly, the cereal receiving company shall be paid a fee for storage services;
      3) thirdly, the claims of the pledge certificate holder shall be satisfied;
      4) fourthly, the remaining amount from the sale of grain shall be returned to the warehouse certificate holder in exchange for the original warehouse certificate.
      3. Claims of each queue shall be satisfied after full satisfaction of the previous turn.
      Footnote. It is supplemented by Article 41-2 – by the Law of the Republic of Kazakhstan dated 13 October, 2003 No. 488.

Article 41-3. Loss or damage to the grain receipt

      1. In case of loss of grain receipt, warehouse certificate or pledge certificate, the person who lost the corresponding certificate shall immediately notify in writing the cereal receiving company about it.
      2. Exercising the right on the lost grain receipts, warehouse certificate and (or) pledge certificate shall be in accordance with the judgment.
      Footnote. The Law is supplemented by Article 41-3 in accordance with the Law of the Republic of Kazakhstan dated 13.10.2003 No. 488.

Article 41-4. Responsibility for violation of the legislation of the Republic of Kazakhstan on grain

      Violation of the legislation of the Republic of Kazakhstan on grain shall be punishable under the laws of the Republic of Kazakhstan.
      Footnote. The Law is supplemented by Article 41-4 in accordance with the Law of the Republic of Kazakhstan dated 11.12.2009 No. 229-IV (the order of enforcement see Art. 2).

Chapter 9. Final Provisions

Article 42. Procedure for the enactment of this Law

      This Law shall enter into force from the date of official publication.

      The President
      of the Republic of Kazakhstan