On State Regulation of Production and Turnover of Tobacco Products

The Law of the Republic of Kazakhstan dated 12 June 2003 No. 439

      This Law regulates public relations arising in the process of production and turnover of tobacco products.

Article 1. Basic definitions used in this Law

      In this Law the following basic definitions are used:
      1) excise mark – mark having the security features made for a product unit in accordance with the legislation of the Republic of Kazakhstan;
      1-1) accounting-control mark – special single label with necessary levels of protection designed for identifying tobacco products for the purpose of accounting and carrying out of the control of their turnover;
      1-2) identification – procedure ensuring unmistakable recognition of particular products among the similar on distinguishing marks in the scope of production, circulation (turnover), use;
      1-3) marking – text, identification mark and drawings carrying information for consumption and drawn on packs and wrappings;
      1-4) pack – unit of consumption tare manufactured from the carton or paper or another material containing particular quantity of tobacco products;
      1-5) wrapping – unit of group consumption tare containing particular quantity of packs;
      2) turnover of tobacco products – export, import, storage, wholesale and retail sale of tobacco products;
      3) wholesale sale of tobacco products – sale (shipping) of tobacco products for the following resale;
      4) production passport – document reflecting the indices of production facilities of a producer of tobacco products, its main characteristics regulating use of available equipment for compliance with technological process of production;
      5) producer of tobacco products – an individual or legal entity that produces tobacco products for sale;
      6) production of tobacco products – a set of technological processes ensuring production of tobacco products conforming to regulatory documents on standardization;
      7) tobacco products – any products containing tobacco packed in consumption package and designated for final consumption with the exception of consumption of pharmaceutical production containing nicotine;
      7-1) filter cigarettes – type of smoking tobacco products formed from cut tobacco wrapped by cigarette paper with applying the filter;
      7-2) non-filter cigarettes – type of smoking tobacco products formed from cut tobacco wrapped by cigarette paper without applying the filter;
      8) authorized body – state body carrying out the control and regulation of production and turnover of tobacco products.
      Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated 11 December 2006 No. 201 (shall be enforced from 1 January 2007).

Article 2. Legislation of the Republic of Kazakhstan on state
regulation of production and turnover of tobacco products

      1. Legislation of the Republic of Kazakhstan on state regulation of production and turnover of tobacco products is based on the Constitution of the Republic of Kazakhstan and consists of this Law and other regulatory legal acts of the Republic of Kazakhstan regulating relations linked with production and turnover of tobacco products.
      2. If international treaty ratified by the Republic of Kazakhstan establishes other rules than those contained in this Law, the rules of international treaty shall be applied.

Article 3. State regulation of production and turnover
of tobacco products

      1. State regulation of production and turnover of tobacco products shall be carried out by the President of the Republic of Kazakhstan, the Government of the Republic of Kazakhstan, authorized body, as well as other state bodies within the competence established by the legislation of the Republic of Kazakhstan.
      2. State regulation of production and turnover of tobacco products shall include:
      1) licensing of activity on production of tobacco products;
      2) regulation of import of tobacco products;
      3) control of production and turnover of tobacco products by carrying out the monitoring and establishment of procedure for declaring;
      4) establishment of minimum retail prices for filter cigarettes.
      Footnote. Article 3 as amended by the Laws of the Republic of Kazakhstan dated 11.12.2006 No. 201 (shall be enforced from 01.01.2007); dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011).

Article 4. Competence of the Government of
the Republic of Kazakhstan

      The Government of the Republic of Kazakhstan shall:
      1) develop principal directions of state policy in the field of state regulation of production and turnover of tobacco products;
      2) issue regulatory legal acts of the Republic of Kazakhstan within the competence in the field of state regulation of production and turnover of tobacco products;
      3) establish restrictions and prohibitions for import of tobacco products to the Republic of Kazakhstan in accordance with the Laws of the Republic of Kazakhstan;
      4) is excluded by the Law of the Republic of Kazakhstan dated 29.12.2014 No. 269-V (shall be enforced from 01.01.2015);
      4-1) 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 the date of its first official publication);
      4-2) establish minimum retail prices for filter cigarettes;
      5) (is excluded);
      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 the date of its first official publication);
      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 the date of its first official publication);
      8) perform other functions imposed on it by the Constitution, Laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.
      Footnote. Footnote 4 as amended by the Laws of the Republic of Kazakhstan dated 20.12.2004 No. 13 (shall be enforced from 01.01.2015); dated 11.12.2006 No. 201 (shall be enforced from 01.01.2007); dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after the date of its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after the date of its first official publication); dated 29.12.2014 No. 269-V (shall be enforced from 01.01.2015).

Article 5. Competence of the authorized body

      Authorized body shall:
      1) issue regulatory legal acts of the Republic of Kazakhstan within the competence in the field of state regulation of production and turnover of tobacco products;
      2) keep control, record and analysis of the balances of the volumes of production and turnover of tobacco products;
      3) issue licenses for production of tobacco products in accordance with the legislation of the Republic of Kazakhstan on permissions and notifications;
      4) interact with state bodies on carrying out the control of production and turnover of tobacco products;
      5) 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 the date of its first official publication);
      5-1) determine the form, procedure and terms of presenting the details required for carrying out of monitoring;
      5-2) determine the form, procedure and terms of presenting declarations on residues and (or) turnover of tobacco products;
      5-3) establish the procedure for marking of tobacco products by excise marks or accounting control marks;
      6) carry out other powers provided 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 5 is in the wording of the Law of the Republic of Kazakhstan dated 05.07.2011 No. 452-IV (shall be enforced from 13.10.2011); as amended by the Laws of the Republic of Kazakhstan dated 13.01.2014 No. 159-V (shall be enforced upon expiry of ten calendar days after the date of its first official publication); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after the date of its first official publication); dated 29.09.2014 No. 239-V (shall be enforced upon expiry of ten calendar days after the date of its first official publication).

Article 6. Special aspects of conditions of production
of tobacco products

      Production of tobacco products shall be carried out:
      1) at address mentioned in the license;
      2) on equipment conforming to requirements established by the regulatory documents on standardization and ensuring the unity of measuring devices;
      3) in existence of the passport of production;
      4) in existence of buildings and premises belonging to producer of tobacco products on the basis of the right of property or other rights required for production of tobacco products;
      5) in existence of laboratories on technological control of production of tobacco products.

Article 7. Details included to the production passport

      1. Production passport shall be developed and filled by the producer of tobacco products and directed to the authorized body.
      2. Production passport shall contain the following main details:
      1) technological scheme of production of tobacco products specifying the main characteristics of technological equipment;
      2) organization of the quality control;
      3) storage capacity of the finished products;
      5) standards of consuming tobacco and non-tobacco products, loss rates.
      3. In case of changing the details contained in the production passport, the producer of tobacco products shall be obliged to inform documentarily the authorized body in mentioned changes within one month.

Article 8. Monitoring and declaring of production and
turnover of tobacco products

      1. Persons carrying out the production of tobacco products shall be obliged to provide the details to the authorized body required for carrying out the monitoring in the manner established by the legislation of the Republic of Kazakhstan.
      2. Persons carrying out import and wholesale sale of tobacco products shall be obliged to provide declarations on residues and (or) turnover of tobacco products to the authorized body.

Article 9. Licensing of the activity on production
of tobacco products

      Activity on production of tobacco products shall be subject to licensing in accordance with the legislation of the Republic of Kazakhstan on permissions and notifications.
      Footnote. Article 9 is in the wording of the Law of the Republic of Kazakhstan dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after the date of its first official publication).

Article 10. Suspension of validity and deprivation of license

      1. License validity for production of tobacco products may be suspended by the licenser in accordance with the Laws of the Republic of Kazakhstan for the term up to six months in cases of:
      1) violations of rules established by Articles 6, 7 and 8 of this Law and the legislation of the Republic of Kazakhstan on permissions and notifications;
      2) violations of qualification requirements by the licensee;
      3) non-carrying out of licensable activity within a year from the date of issuance of the license;
      4) refusal from provision of details to the licenser in accordance with his (her) competence or provision of untrustworthy information;
      5) violation of the rules of marking of tobacco products by excise marks or accounting control marks.
      2. Deprivation of license for production of tobacco products shall be carried out in a judicial proceeding in accordance with the legislation of the Republic of Kazakhstan on administrative infractions.
      Footnote. Article 10 as amended by the Laws of the Republic of Kazakhstan dated 11.12.2006 No. 201 (shall be enforced from 1 January 2007); dated 12.01.2007 No. 222 (shall be enforced upon expiry of 6 months from the date of its official publication); dated 15.07.2011 No. 461-IV (shall be enforced from 30.01.2012); dated 16.05.2014 No. 203-V (shall be enforced upon expiry of six months after the date of its first official publication).

Article 11. Sale of tobacco products

      In the territory of the Republic of Kazakhstan, sale of tobacco products shall be carried out in accordance with the legislation of the Republic of Kazakhstan.

Article 12. Regulation of import of tobacco products

      Regulation of import of tobacco products shall be carried out by approval (change) of the rates of excises, customs, protection, anti-dumping and compensation duties, quotas for import of tobacco products.

Article 13. Responsibility for the breach of the legislation of
the Republic of Kazakhstan on state regulation of production
and turnover of tobacco products

      1. Individuals and legal entities carrying out the activity with the breach of the legislation of the Republic of Kazakhstan on state regulation of production and turnover of tobacco products shall bear responsibility in accordance with the Laws of the Republic of Kazakhstan.
      2. Tobacco products of non-established origin not conforming to requirements of the legislation of the Republic of Kazakhstan and sanitary epidemiological rules and standards and hygienic standards, as well as sold without excise marks or accounting control marks shall be subject to withdrawal and destruction in the manner established by the legislation of the Republic of Kazakhstan.
      Footnote. Article 13 as amended by the Law of the Republic of Kazakhstan dated 11 December 2006 No. 201 (shall be enforced from 1 January 2007).

Article 14. Order of enforcement of this Law

      This Law enters into force from 1 January 2004.

      The President
      of the Republic of Kazakhstan