On regulation of trading activities

Law of the Republic of Kazakhstan dated 12 April, 2004 No. 544

Unofficial translation

TABLE OF CONTENTS

      Footnote. Text for the words “of the local executive bodies”, “The local executive bodies”, “by the local executive body”, “by the local executive bodies” is supplemented with the words “of the city of republican status, capital and regions (the cities of the oblast status)” by the Law of the Republic of Kazakhstan, No. 116 dated 10 January, 2006 (shall be enforced from Article 2 of the Law No.116)

      This Law shall regulate social relations in the sphere of trade activities, and determine the principles and organizational basis of the state regulation of trading activities.

Chapter 1. General provisions

      Article 1. Basic terms used in this Law

      The following basic terms are used in this Law:
      1) “quantitative restrictions on export and (or) import” mean the measures on the quantitative restriction of foreign trade in goods, which may be introduced by quota;
      2) “threshold value of retail prices for staple foods” means the permissible level of retail prices, established in order to avoid unjustified price increases, keep the inflation within the accepted limits and preserve the macroeconomic stability of the country, up to which the subject of trading activities shall be entitled to determine the retail prices for staple foods;
      3) “maximum permissible retail prices for staple foods” mean the level of retail prices to be determined by the Government of the Republic of Kazakhstan in the case of exceeding the threshold values of retail prices for staple foods;
      4) “retail trade” means the business activities for the sale to the buyer of goods for personal, family, household or other uses not related with a business;
      5) “above-quota rate of customs duties” means the amount (volume) of import customs duties to be imposed on goods imported in excess of the established tariff quota;
      6)“in-quota rate of customs duties” means the amount (volume) of import customs duties to be imposed on goods imported within the established tariff quota;
      7) “wholesale trade” means the business activities for the realization of goods intended for further sale or other purposes not related to personal, family, household and other similar use;
      8) “public catering” means the business activities related to production, processing, sale and organization of foods consumption;
      9) “permit” means the authorization document to be granted to the participant of foreign trade on the basis of foreign trade agreement in accordance with the present Law;
      10) “trading area” means the area of trading facilities furnished with special equipment and designed for the presentation and display of goods, customer service and carrying out of monetary settlements with the buyers when selling the goods as well as for the passage of the buyers;
      11) “trade network” means a set of two or more trading facilities with a total trading area of not less than two thousand square meters, which are under common management and (or) used under single business name or other means of individualization.
      12) “trading activities” means the business activities of natural persons and legal entities aimed at carrying out of sale of goods;
      13) “the authorized body in the sphere of regulation of trading activities (hereinafter referred to as “the authorized body”)” means the central executive body managing and carrying out of inter-sectorial coordination in the sphere of trading activities;
      14) “subject of trading activities” means a natural person or legal entity, who carries out, in a manner prescribed by the legislation of the Republic of Kazakhstan, the trading activities;
      15) “trading facilities” include a building or a part of the building, structure or a part of the structure, construction or a part of the construction, automated machine or a transport vehicle, specifically furnished with equipment intended for the presentation and display of goods, customer service and carrying out of monetary settlements with the buyers when selling the goods;
      16) “trade policy” means a set of organizational, legal, economic, control and other measures to be carried out by the state authorities in order to implement the purposes and principles set forth by the present Law;
      17) “foreign trade” (hereinafter referred to as “the foreign trade activities”) means the trading activities related to the export out of the Republic of Kazakhstan and (or) import into the Republic of Kazakhstan of goods;
      18) “tariff quota” means a measure regulating the import into the territory of the Republic of Kazakhstan of certain types of goods originating from third countries, and stipulating for the use, for a certain period, of lower import customs duty rate when importing the certain amount of goods (in non-monetary and monetary terms) in comparison with the import customs duty rate in effect;
      19) “goods” include any product of labour, that has not been withdrawn from the market and intended for the sale or exchange;
      20) “the monitoring of export and (or) import of the certain types of goods” means the provisional measure to be established in order to monitor the dynamics of export and (or import) of the certain types of goods;
      21) “the exclusive right to export and import certain types of goods” means the right to conduct foreign trade activities with respect to the certain types of goods to be provided on the basis of the license which is granted by the authorized body;
      22) “large trading facilities” includes the trading facilities with a trading area of not less than two thousand square meters;
      23) “domestic trade” means the trading activity carried out in the territory of the Republic of Kazakhstan.
      Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan, No. 535-IV dated 09.01.2012 (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 2. Legislation of the Republic of Kazakhstan on the regulation of trading activities

      1. The legislation of the Republic of Kazakhstan on the regulation of trading activities shall be based on the Constitution of the Republic of Kazakhstan and comprised of the present Law and of other legal normative acts of the Republic of Kazakhstan.
      2. If an international treaty ratified by the Republic of Kazakhstan establishes rules other than those which are contained in the present Law, the rules of the international treaty shall be applied.

      Article 3. Purposes and principles of the regulation of trading activities

      1. The regulation of trading activities shall be aimed at:
      1) satisfying the needs of population in goods and developing the trade infrastructure;
      2) organizing services in trade and public catering;
      3) promoting the development and improvement of trading activities in the Republic of Kazakhstan;
      4) providing conditions for Kazakhstan to integrate in the world trade system;
      5) increasing the competitiveness of the domestic goods in foreign market.
      2. The following principles shall be followed when regulating the trading activities:
      1) the equality of rights of subjects of trading activities;
      2) non-interference of the state authorities in trading activities unless stipulated by the legislation of the Republic of Kazakhstan;
      3) support for free and fair business;
      4) protection of the domestic producers;
      5) secure of good services in trade;
      6) freedom to choose the type of trading activities and the possibility of the subjects of trading activities to be engaged in such activities;
      7) unity of trade policy as an integral part of the state economic policy of the Republic of Kazakhstan;
      8) ensuring on equal footing of the protection of the rights and legitimate interests of the customers, subjects of trading activities and of the state.
      Footnote. Article 3 as amended by the Law of the Republic of Kazakhstan, No. 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication).

      Article 4. Scope of application of the present Law

      1. The present Law shall be effective in the territory of the Republic of Kazakhstan and shall extend to all subjects of trading activities.
      2. The present Law shall not apply to the relations of sales of certain types of goods which are regulated by other legislative acts of the Republic of Kazakhstan.
      Trading in such goods in parts not regulated by these legislative acts of the Republic of Kazakhstan shall be regulated by the provisions of this Law.
      Footnote. Article 4 as amended by the Law of the Republic of Kazakhstan No. 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication).

Chapter 2. State regulation of trading activities

      Footnote. Chapter 2 as amended by the Law of the Republic of Kazakhstan 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication).

      Article 5. Forms and methods of state regulation of trading activities

      1.The following shall be the forms of the state regulation of trading activities:
      1) determination the procedure of carrying out of trading activities;
      2) determination of conditions of movement of goods through the customs border of the customs union, which matches with the state border of the Republic of Kazakhstan;
      3) fostering of the development of trading activities;
      4) state control and supervision in the field of trading activities;
      5) certification.
      2. The following shall be the methods of the state regulation of trading activities:
      1) customs and tariff regulation of foreign trade;
      2) non-tariff regulation of foreign trade;
      3) suspension of trade and (or) prohibition of sale of goods in accordance with the legislation of the Republic of Kazakhstan;
      4) the use of special protective, antidumping and countervailing measures;
      5) participation in the international economic sanctions;

      Article 6. Competence of the Government of the Republic of Kazakhstan

      The Government of the Republic of Kazakhstan shall:
      1) organize the implementation of trade policy;
      2) elaborate the state-run program in the sphere of trading activities;
      3) approve the sectorial programs in the sphere of trading activities;
      4) take measures to protect the domestic market of the Republic of Kazakhstan;
      5) adopt measures of customs and tariff regulation of foreign trade;
      6) adopt measures of non-tariff regulation of foreign trade;
      7) approve the rules of domestic trade;
      8) approve the minimal standards of making available of trading areas to the public;
      9) perform cooperation and interaction with foreign states, international organizations in the sphere of trading activities and provide the opening abroad of the trade missions of the Republic of Kazakhstan;
      10) take decisions on negotiating and signing of intergovernmental agreements in the sphere of trading activities;
      11) establish the authorized body;
      12) approve the procedure for identifying the threshold value of retail prices and the amount of maximum permissible retail prices for staple foods;
      13) approve the threshold value of retail prices for staple foods;
      14) approve the amount of maximum permissible retail prices for staple foods;
      15) perform other functions assigned upon him by the Constitution of the Republic of Kazakhstan, present Law, other laws of the Republic of Kazakhstan and by the acts of the President of the Republic of Kazakhstan.
      Footnote. Article 6 as amended by the Law of the Republic of Kazakhstan No. 535-IV dated 09.01.2012 (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 7. Competence of the authorized body

      The authorized body shall:
      1) elaborate the proposals for improvement of legislation of the Republic of Kazakhstan on the regulation of trading activities;
      2) elaborate the proposals and prepare statements on the use of measures of customs and tariff regulations of foreign trade;
      3) elaborate the proposals for the development of trading activities as well as for the promoting the production and trade of goods;
      4) elaborate the normative legal acts of the Republic of Kazakhstan in the sphere of regulation of trading activities;
      5) coordinate the activities of the central executive bodies and local executive bodies of the oblasts, city of republican status, capital, raions, cities of the oblasts status in the field of trading activities;
      6) monitor the trading activities as provided in the legislation of the Republic of Kazakhstan;
      7) elaborate the minimal standards of making available of trading areas to the public;
      8) in order to improve trade relation analyze and study the proposals of individuals and legal entities;
      9) initiate, participate and organize the hosting of the republican and international exhibitions and fairs;
      10) represent the Government of the Republic of Kazakhstan in negotiations with international trade organizations;
      11) carry out the licensing of export and import of certain goods in manner prescribed by the legislation of the Republic of Kazakhstan;
      12) carry out the monitoring by virtue of the analysis of information provided on a quarterly basis by the territorial chambers of commerce on the granted certificates of origin, as well as the monitoring of grant of certificates of origin for domestic circulation and for the determination by the authorized body of the status of goods as under customs union and (or) as foreign goods;
      13) conduct the macroeconomic analysis in order to identify thethreshold value of retail prices and the amount of maximum permissible retail prices for staple foods;
      14) elaborate the proposals on identifying the amount of maximum permissible retail prices for staple foods and on determination on an annual basis of the threshold value of retail prices for such products;
      15) elaborate the procedure of identifying the threshold value of retail prices and the amount of maximum permissible retail prices for staple foods;
      16) elaborate and approve the forms of departmental reports and checklists as provided under the Law of the Republic of Kazakhstan “On state control and supervision in the Republic of Kazakhstan”;
      17) exercise other powers provided for in the present Law, other laws of the republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and of the Government of the republic of Kazakhstan.

      Article 7-1. Competence of the authorized body in the sphere of regulation of industrial policy

      Footnote. Article 7-1 as amended by the Law of the Republic of Kazakhstan No. 535-IV dated 09.01.2012 (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 8. Competence of the local executive bodies of oblasts, city of republican status, capital, district and the city of the oblasts status

      The local executive bodies of oblasts, city of republican status, capital, district and of the city of the oblasts status shall:
      1) ensure the implementation of trade policy;
      2) carry out, within its competence, the regulation of the activities of the subjects of trading;
      3) elaborate the measures for the promotion of trade in the corresponding administrative and territorial units;
      4) elaborate the proposals on the minimal standards of making available of trading areas to the public;
      5) elaborate and implement the measures to achieve a minimal standards of making available of trading areas to the public;
      6) carry out the organization of hosting the exhibitions and fairs;
      7) exercise the state control over the compliance with the amount of maximum permissible retail prices for staple foods;
      8) exercise, on behalf of the local bodies, other powers assigned upon the local executive bodies by the legislation of the Republic of Kazakhstan.
      Footnote. Article as amended by the Law of the Republic of Kazakhstan No. 535-IV dated 09.01.2012 (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 9. Pricing in the sphere of trading

      1. The prices of goods shall be fixed by the subjects of trading activities by themselves, except for the case provided for in paragraph 2 of this article, and where upon request of the supplier the agreement for the supply of food products is concluded in which the parties shall, under mutual agreement, fix the maximum permissible markup.
      The amount of the maximum permissible markup shall be mandatory established while concluding the agreement for the supply of staple foods. Any transaction made in violation of this requirement shall be deemed void.
      2. Where the threshold value of retail prices for staple foods have been exceeded within the oblast, city of republican status and in the capital the Government of the Republic of Kazakhstan shall be entitled to fix the maximum permissible retail price for such products within the oblast, city of republican status and in the capital for a period not exceeding ninety calendar days.
      The subject of trading activities shall be liable in accordance with the laws of the republic of Kazakhstan where he exceeds the amount of the maximum permissible retail prices for staple foods fixed under part one of this paragraph.

Chapter 3. Domestic trade

      Article 10. Trading facilities and types of domestic trade

      1. The domestic trade shall comprise the trading facilities and the public catering facilities.
      2. The following shall fall into the trading facilities:
      1) a slot machine – an automatic device intended for the sale of goods;
      2) an external shop counter – an easily erected movable or portable trade place located in a specifically determined place;
      3) a shop on wheels – a specialized vehicle fitted with the trade equipment;
      4) a tent – an easily erected construction made of prefabricated structures and located in a specifically determined place;
      5) a kiosk – a non-permanent portable construction fitted with the trade equipment, that has no trading floor and is located in a designated place;
      6) shop – a permanent stationary construction or a part thereof, furnished with the shopping, back store, administrative and service premises as well as with facilities for receiving, storage and preparation of goods for sale;
      7) shopping center – a permanent stationary construction, which contain a set of trading and public catering facilities to be managed as a single unit, intended for carrying out trading activities and furnished with shopping, administrative and service and storage premises and with the parking area within its territory;
      8) trade market – a separate property complex with the centralization of functions in upkeep of the site, management operations and protection, which functions on a permanent basis and is isolated from the surrounding area, intended for trading activities and furnished with a parking area within its territory.
      The rules for organizing the activities of trade markets as well as the types and categories, requirements thereof shall be approved by the Government of the Republic of Kazakhstan.
      3. Public catering facilities shall be divided into the following categories:
      1) restaurant – a public catering and leisure facilities, serving a range of courses to be cooked sophisticatedly, including the customized and branded ones, as well as the alcoholic beverages, where the service of the waiters are mandatory provided to customers;
      2) a cafй – a public catering and leisure facilities, serving a range of courses of uncomplicated cooking, as well as the alcoholic beverages,where the service of the waiters are mandatory provided to customers;
      3) a bar - a public catering and leisure facilities, serving to customers the snacks, desserts and pastries, as well as the alcoholic beverages;
      4) a canteen – a public catering facilities with self-service of customers.
      4. The specialization of the trading facilities shall be determined by the authorized body in the sphere of sanitary and epidemiological welfare of population in accordance with the legislation of the Republic of Kazakhstan.
      5. The types of the domestic trade shall comprise the wholesale and retail trade, public catering and other types of trade established under the present Law.
      6. The procedure and requirements for carrying out the wholesale, retail trade and public catering, as well as for the facilities of the domestic trade shall be established by the legislation of the Republic of Kazakhstan.
      Footnote. Article 10 as amended by the Law of the Republic of Kazakhstan No. 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication).

      Article 11. Wholesale trade

      1. The wholesale trade shall be carried out in specialized or mixed shops, shopping centers and in trade markets in the presence of designated places, separated from the seats of retail trade.
      2. While carrying out the wholesale trade the owners of trading facilities shall be required to ensure the compliance with the normative legal acts of the Republic of Kazakhstan and statutory acts, as well as with the conditions for the transportation, storage and sale of goods.

      Article 12. Retail trade

      1. Retail trade shall be carried out in shops, shopping centers, trade markets and in slot machines, kiosks, the sops on wheels, tents and external shop counters.
      2. The carrying out of retail trade shall comprise that each item be packed and packaged unless otherwise provided by the legislation of the Republic of Kazakhstan or by the contract or unless otherwise implied from the nature of the product.
      3. Except for the cases where the seller has explicitly determined that the goods is not intended for sale, any display of goods for exhibition, demonstration of the sample of the said goods or any furnishing of the details (descriptions, catalogs, photographs, etc.) of goods at the places of sale shall be deemed a public offer irrespective of whether the prices or other essential terms of the purchase and sale agreement have been indicated.
      4. Retail trade carried out of the trading facilities, through the network marketing, social marketing, sales by mail and other methods shall be regulated in a manner prescribed by the Government of the Republic of Kazakhstan.

      Article 13. Public catering

      1. The public catering facilities shall comprise the production, processing, distribution and organization of consumption of their own products as well as of other food products.
      2. The provision to visitors of a menu in public catering facilities shall be deemed an offer (public offer) for the conclusion of the agreement for retail purchase and sale of catering foods specified in the menu.
      3. The general requirements for conducting public catering activities for the categories set forth in paragraph 3 of article 10 of the present Law shall be determined by the Government of the Republic of Kazakhstan.
      Footnote. Article 13 as amended by the Law of the Republic of Kazakhstan No. 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication).

      Article 14. Purchase and sale agreement in trading activities

      1. The terms and procedures for concluding the purchase and sale agreement, as well as the rights and obligations of the seller and buyer shall be determined, taking into peculiarities stipulated in this Law, in accordance with Civil code and other legislative acts of the Republic of Kazakhstan.
      2. Where the legislative acts of the Republic of Kazakhstan establishes restriction on the age of consumer while the sale of goods, the seller shall be required to refuse the sale of such product if the consumer failed to provide the document identifying his age.
      3. The agreement for wholesale purchase and sale of goods is a form of supply agreement under which the subjects of trading activities sell the goods from trading facilities.

Chapter 3-1. Promotion of the development of domestic trade

      Footnote. The Law is supplemented by Chapter 3-1 by the Law of the Republic of Kazakhstan No. 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication).

      Article 14-1. Support of trading activities by the local executive bodies of oblast, city of republican status, capital, raion, city of oblast status

      1. The local executive bodies of the oblast, city of republican status, capital, raion, and of the city of the oblast status shall carry out support of trading activities by virtue of the following measures:
      1) the elaboration and implementation of investment projects aimed at the development of trade infrastructure;
      2) the development and improvement of the system of training, retraining and advanced training of commercial workers, and the formation of labour market on a professional basis;
      3) the use of economic measures incentivizing the subjects of trading activities, including a trading of the food products of domestic manufacture;
      4) the development of e-commerce;
      5) the development of cross-border trade;
      6) the development of domestic trade networks.
      2. The measures aimed at the development of the domestic trade shall be elaborated with due regard to the minimal standards of making available of trading areas to the public, approved by the Government of the Republic of Kazakhstan.

      Article 14-2. Standardizing the availability of trading areas to the public

      1. The minimal standards of making available of trading are as to the public approved by the Government of the Republic of Kazakhstan shall be taken into account while the elaboration of the integrated schemes of urban planning of regions (the project of raion planning), and site plans of the settlements.
      2. The authorized body shall elaborate the minimal standards of making available of trading are as to the public giving due regard to the proposals of the local executive bodies of the oblast, city of republican status, capital, raion, and of the city of the oblast status.
      3. The categories of the settlements, structure and density of population in the settlements shall be taken into consideration when elaborating the minimal standards of making available of trading are as to the public.

Chapter 4. Foreign trade

      Footnote. Chapter 4 as amended by the Law of the Republic of Kazakhstan No. 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication).

      Article 15. State measures on the development of foreign trade

      Footnote. Article 15 as amended by the Law of the Republic of Kazakhstan No. 535-IV dated 09.01.2012 (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 15-1. Purposes and objective of the National organization on the development and promotion of export

      Footnote. Article 15-1 as amended by the Law of the Republic of Kazakhstan No. 535-IVdated 09.01.2012 (shall be enforced upon expiry of ten calendar days after its first official publication)

      Article 16. Customs and tariff regulation of foreign trade

      1. The customs and tariff regulation of foreign trade shall comprise the use of the following measures:
      1) the customs duties;
      2) the tariff concessions;
      3) the tariff preferences;
      4) the tariff quota.
      2. The customs and tariff regulation of foreign trade shall pursue the following purposes:
      1) rationalization of the goods structure of importing the goods into the territory of the Republic of Kazakhstan;
      2) maintaining the efficient ratio of export and import of goods into the territory of the Republic of Kazakhstan;
      3) contributing for the progressive change in the industrial structure and consumption of good in the Republic of Kazakhstan;
      4) the protection of the economy of the Republic of Kazakhstan against the adverse effects of the imported goods;
      5) providing the conditions for Kazakhstan to effectively integrated into the world economy;
      6) ensuring the country’s food security.

      Article 16-1. Tariff quotas

      1. The tariff quotas for the import of certain goods shall be established by the Government of the Republic of Kazakhstan in order to encourage agricultural production, ensure the required volume of agricultural goods in the territory of the Republic of Kazakhstan, as well as to promote the development of international trade.
      The Government of the Republic of Kazakhstan shall determine the volume, method, procedure for allocation and shall allocate tariff quota among the participants of foreign trade.
      The duration of the tariff quota shall be determined by the Government of the Republic of Kazakhstan.
      2. In-quota rates of customs duties and above-quota rates of customs duties on agricultural products, with respect to which the import the tariff quota has been applied, shall be set as provided in the international treaties ratified by the republic of Kazakhstan
      3. The importation under the tariff quotas of goods into the territory of the Republic of Kazakhstan for the domestic use shall be performed on the basis of the license, granted by the authorized body.
      The authorized body shall grant the license upon receipt of the request by the participants of foreign trade to which the tariff quota has been allocated.
      The procedure and time limits of granting the license shall be determined by the legislation of the Republic of Kazakhstan on licensing.

      Article 17. Non-tariff regulation of foreign trade

      1. The following are the measures of non-tariff regulation of foreign trade:
      1) the prohibition of export and (or) import of certain goods;
      2) the quantitative restrictions on export and (or) import of certain goods;
      3) granting the exclusive right to export and (or) import certain goods;
      4) licensing in the sphere of foreign trade;
      5) monitoring the export and (or) import of certain goods;
      6) the participation in the implementation of the international economic sanctions;
      7) the technical, pharmaceutical, sanitary, veterinary, phytosanitary, environmental standards, regulations and requirements, quality control of imported goods.
      2. In the event that the foreign country adopt the measures infringing the interests of the Republic of Kazakhstan and where it fails to fulfill its obligations in relation to the Republic of Kazakhstan under the international treaty the Government of the Republic of Kazakhstan shall have the right to, after the consultations and procedures set forth by the international treaty ratified by the Republic of Kazakhstan and to the extent required to effectively protect the interests of the Republic of Kazakhstan, adopt the measures of non-tariff regulation of foreign trade as a retaliatory measure.

      Article 18. Prohibition and quantitative restrictions on export and (or) import of certain goods

      1. The prohibitions on export and (or) import of certain goods shall be introduced by the Government of the Republic of Kazakhstan based on the need to:
      1) comply with the legal order;
      2) protect the human life and health, and the environment;
      3) preserve the cultural heritage of the people of the Republic of Kazakhstan;
      4) protect the cultural property and the national cultural heritage sites from the illegal export and (or) import;
      5) prevent the depletion of non-renewable natural resources with the simultaneous limiting of the domestic production and consumption of such goods;
      6) ensure national security;
      7) fulfill the international obligations;
      8) ensure food security of the country;
      2. The quantitative restrictions on export and (or) import of certain goods shall be introduced by the Government of the Republic of Kazakhstan based on the need to:
      1) ensure national security;
      2) fulfill the international obligations;
      3) protect the domestic market;
      4) introduce the retaliatory measures to the discriminatory restrictions taken by other countries in respect of the domestic products.
      3. The quantitative restrictions on export and (or) import of certain goods shall be introduced as prescribed by the legislation of the Republic of Kazakhstan and shall be carried out by virtue of licensing.
      4. The prohibition and quantitative restrictions on export and (or) import of certain goods shall be introduced by the Government of the Republic of Kazakhstan in order to prevent or reduce the critical shortage in the domestic market of food or other products that are essential for the domestic market.
      The authorized body shall render a decision on the need to apply the prohibition and quantitative restrictions on export of certain goods which shall include:
      the name and code of the product as in accordance with the Harmonized Commodity Description and Coding System;
      information demonstrating the need to introduce the prohibition and quantitative restrictions on export of the particular good based on the analysis of the leftovers in regions, government reserves if any, and of the volume of production, imports, exports and consumption;
      information about the suppliers of goods, identification attributes of the goods, the known modes of transportation, and other information that allows to identify the goods in respect of which the use of prohibition and quantitative restrictions on export is suggested;
      the amount of quota in order introduce the quantitative restrictions on export of certain goods.
      5. The Government of the Republic of Kazakhstan shall carry out the allocation of quantitative restrictions on export and (or) import of certain goods.

      Article 18-1. Terms and procedure of granting permits

      1. Permits are to be granted to all applicants without restriction.
      2. To obtain a permit the applicant shall submit with the authorized body the draft permit of a standard form in one hard copy and an electronic copy.
      3. A permit shall be granted within three days from the date of submitting the draft permit.
      4. The duration of the permit shall expire at the end of the calendar year when the permit has been granted.
      5. No changes shall be made to the granted permit.
      6. The granted permit shall not be subject to conversion on other applicants.
      7. Where the applicant loses the permit the authorized body shall, upon written request of the applicant, grant him the duplicate of the permit within five business days.

      Article 19. Participation of the Republic of Kazakhstan in the international economic sanctions

      The participation of the Republic of Kazakhstan in the international economic sanctions against one or several states and the procedure of enforcing such sanctions shall be determined by the legislation of the Republic of Kazakhstan.

      Article 20. Exclusive right to export and (or) import certain types of goods

      1. The exclusive right to export and (or) import certain types of goods shall be carried out on the basis of licensing.
      2. The list of certain types of goods for which the exclusive right to export and (or) import is to be granted shall be approved by the Government of the Republic of Kazakhstan.
      3. Licenses for export and (or) import of certain types of goods, in respect of which the exclusive right to export and (or) import of certain types of goods shall be introduced and shall be granted to the subjects of trading activities established by the Government of the Republic of Kazakhstan, which shall be obliged to follow the principles of non-discrimination and fair business practice while performing such export and (or) import of certain types of goods.

      Article 21. Monitoring of export and import of certain types of goods

      The monitoring of export and (or) import of certain types of goods shall be carried out by virtue of granting the permits.

      Article 22. Use of protective, antidumping and countervailing measures while importing the goods

      The terms and procedure of the use of protective, antidumping and countervailing measures shall be determined by the legislation of the Republic of Kazakhstan.

Chapter 5. Other types of trade

      Article 23. Auction trade

      1. An auction trade for the sale of goods shall be carried out through a public bidding.
      The seller shall determine a starting price based on the market value of the goods at the time of bidding, and the final price shall be determined by the buyer resulting from the auction held.
      2. The procedure for the carrying out of the auction trade shall be regulated by civil legislation of the Republic of Kazakhstan.

      Article 24. Trade on commission

      A trade on commission shall be carried out in accordance with Civil legislation of the Republic of Kazakhstan.

      Article 25. Trade by orders

      1. A trade by order shall be carried out by providing the seller of information on the basis of advertisement or other means of disseminating information about the goods.
      Sale of goods by orders may also be carried out through the type setting (standard) parcels. Type setting (standard) parcels may comprise the sets of goods of various purposes.
      2. The trade by order shall be carried out through transmit and receive by the subjects of trading activities of orders directly from the buyers, in the places of itinerant trade, by telephone or mail order.
      3. The service fee for receiving and executing the order, payment procedure, and the date of delivery shall be determined in the contract.
      4. Delivery of goods within one locality shall be made hand by hand, and the delivery of goods from other places may also be made by concluding the agreement with the transport or postal organization.
      Where the goods are delivered from other localities the agent of the seller shall receive the payment for goods, and shall make a payment of service fee to the transport or postal organization.
      5. In the event of the failure to accept the order made without breaching the terms of the contract, the customer shall reimburse the seller the service cost resulted from transporting the goods to the customer and back.

      Article 26. Cross-border trade

      1. A cross-border trade shall be carried out by individuals and legal entities in the frontier area of the Republic of Kazakhstan and in the border territory of a contagious state.
      2. The procedure of carrying out the cross-border trade shall be determined in accordance with the rules approved by the Government of the Republic of Kazakhstan as well as with the conditions stipulated by the international treaties concluded with the contagious states and ratified by the Republic of Kazakhstan.

      Article 27. Itinerant trade

      1. The itinerant trade shall be carried out in order to satisfy the customers’ demands in goods missing in the relevant territory, or in the case of the absence of the trading facilities in the mentioned area.
      2. The subjects of trading activities shall carry out the itinerant trade in specifically designated places determined by the local executive body of the city of republican status, capital, raion, and of the city of the oblast status.
      3. The itinerant trade shall be conducted in the shops on wheels and (or) in tents.
      Footnote. Article 27 as amended by the Law of the Republic of Kazakhstan No. 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication).

      Article 28. Exhibitions and fair activities

      1. The exhibitions and fair activities shall be performed by means of organizing the exhibitions and fairs for the purposes of market research, assisting in the organization of sale of goods, conclusion of agreements and in order to establish new trade links. The exhibitions and fair activities are connected with the demonstration of product sample.
      2. Where the local executive bodies, individuals and legal entities wish to hold exhibitions and fairs of international and republican status they may do so by having obtained the prior approval of the authorized body of the concept on the exhibition and fair. The concept on the exhibition and fair shall contain information about the alleged organizational and financial resources as well as the information about the potential participants.
      Footnote. Article 28 as amended by the Law of the Republic of Kazakhstan No. 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication).

      Article 29. E-commerce

      1. E-commerce shall be carried out through concluding commercial transactions on the basis of an agreement (contract) between the parties to the electronic trade for the sale of goods using electronic means of communication.
      2. The rights and legitimate interests of the participants of e-commerce shall be protected in a manner stipulated for the subjects of trading activities.
      3. The procedure for carrying out e-commerce shall be determined by rules approved by the Government of the Republic of Kazakhstan.

      Article 30. Exchange trade in goods

      The exchange trade in goods shall be carried out in accordance with the legislation of the Republic of Kazakhstan on goods exchange.

Chapter 6. Requirements to subjects of trading activities

      Footnote. Chapter 6 as amended by the Law of the Republic of Kazakhstan No. 400-IVdated 26.01.2011 (shall be enforced upon of thirty calendar days after its first official publication).

      Article 31. Requirement to subjects of trading activities

      1. The subjects of trading activities while exercising such activities shall be required to:
      1) sell the goods of satisfactory quality, meeting safety requirements;
      2) sell the goods according to the parameters respectively specified in the terms of the public offer, agreements or any other transactions;
      3) provide the buyer with the necessary and accurate information about the quality and the origin of the goods, customer characteristics, guarantee bonds and about the claim procedure, methods and rules of use of the product, its storage, as well as information on the whereabouts and other details of the seller or of the manufacturer (executor) where the claim and attached documents are furnished with the court.
      4) place the control and measuring devices, verified in accordance with the requirements of the State System for Ensuring Uniform Measurement, on the public places of trading activities;
      5) give to the buyer the opportunity to check on his own the characteristics by control and measuring devices where this buyer doubts on the weight and length of the product;
      6) upon request of the buyer present to him a certificate of conformity (copy on the standard forms) or declaration of conformity when selling the goods that are subject to obligatory conformity assurance as prescribed by the legislation of the Republic of Kazakhstan on technical regulation;
      6-1) upon request of the buyer present to him a declaration of conformity or certificate of conformity or the copy thereof indicating the date of issuance of the said copy, which is certified with seal and signed by the head of the legal entity or a person authorized to sign the documents, or by the individual entrepreneur, who are the suppliers of the goods, when selling the goods that are subject to obligatory conformity assurance as prescribed by the legislation of the Republic of Kazakhstan on technical regulation;
      7) use cash registers with fiscal memory in a manner and in the cases provided for by the tax legislation of the Republic of Kazakhstan;
      8) withdraw from circulation the goods that do not meet the safety requirements and standards set forth in article 32 of the present Law, as well as accept from the buyer the sold goods compensating its cost in accordance with the legislation of the Republic of Kazakhstan;
      9) comply with the instructions of the state authorities which have been brought in in a prescribed manner;
      10) comply with other requirements set forth by the legislation of the Republic of Kazakhstan.
      2. The subjects of trading activities involved in the sale of goods by virtue of organization of trade networks and large trading facilities shall be prohibited from restricting the access of goods to the trade networks and large trading facilities, expressed in an unjustified refusal to conclude the supply agreement or in the conclusion of the agreement that is of discriminatory characteristics and containing the following conditions:
      1) prohibiting to conclude the supply agreements with other subject of trading activities engaged in the similar activities, as well as with other subjects of trading activities on the same or other conditions;
      2) requiring that the subject of trading activities engaged in the supply of goods provided information on the agreements concluded with other subjects of trading activities engaged in the similar activities.
      3. The subjects of trading activities shall be prohibited from violating the maximum permissible retail prices, set forth by the normative legal acts, for staple foods to be established in accordance with paragraph 2 of article 9 of the present Law.
      4. The subjects of trading activities shall bear responsibility under the laws of the Republic of Kazakhstan in the case of violation of paragraphs 2 and 3 of this article.
      5. Where the subject of trading activities involved in the sale of goodsby virtue of organization of trade networks and large trading facilities and the supplier conclude the supply agreement under condition that the payment for the goods be made after certain period of time once the goods transmitted to the subject of trading activities involved in the sale of goodsby virtue of organization of trade networks and large trading facilities, the payment due date of such goods to be stipulated in the said agreement shall be determined according to the following rules:
      1) food products with durability of less than ten calendar days, shall be subject to payment no later than ten working days from the date of transmitting such goods by the subject of trading activities involved in the sale of goods by virtue of organization of trade networks and large trading facilities;
      2) food products with durability of ten calendar days or more produced in the Republic of Kazakhstan, shall be subject to payment no later than thirty calendar days from the date of transmitting such goods by the subject of trading activities involved in the sale of goods by virtue of organization of trade networks and large trading facilities.
      6. Payment for goods within the terms specified in paragraph 5 of this article shall be made upon fulfillment by the subject of trading activities supplying the goods of his obligation to transfer all documentation regarding the goods in accordance with the laws, normative legal acts of the Republic of Kazakhstan or with the agreement.
      Footnote. Article 31 as amended by the Law of the Republic of Kazakhstan No. 36-Vdated 10.07.2012 (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 31-1. Requirements to taxpayers – individual entrepreneurs and legal entities offering for rent (use) the trading facilities, spaces intrading facilities including in trade markets

      When offering for rent (use) for a period of more than three calendar days within one calendar month the trading facilities, spaces in trading facilities including in trade markets an individual entrepreneur and legal entity shall be obliged to conclude the written lease (use) agreement, which shall include:
      1) the last name, first name and middle name (if available) or full name of the tenant;
      2) the number and date of the document proving the identity of a natural person – tenant;
      3) Is excluded by the Law of the Republic of Kazakhstan, No. 538-IVdated 12.01.2012 (shall be enforced from 01.01.2013);
      3-1) identification number of the tenant;
      4) the number (if available) and date of the lease (use) agreement;
      5) assignment of trading space, its location in the trading facilities including in the trade market;
      6) the rental (use) term;
      7) the rental amount and (or) the amount of recoverable expenses;
      8) the signature and seal (if any) of the land lord and tenant.
      Footnote. Chapter 6 is supplemented by Article 31-1 in accordance with the Law of the Republic of Kazakhstan No. 297-IVdated 30.06.2010 (shall be enforced from 01.01.2012); as amended by the Law of the Republic of Kazakhstan No.538-IV dated 12.01.2012 (the order of enforcement, see Art. 2).

      Article 32. Requirements to goods

      1. On the domestic market of the Republic of Kazakhstan may be traded the goods of satisfactory quality that meet safety requirements, complies with the normative documents and technical specifications approved in a prescribed manner.
      2. Quality of goods shall be supported by the following information:
      1) the trademark of the manufacturer;
      2) the country of origin;
      3) the composition of the product;
      4) nutritional value as to food products;
      5) the date of manufacture;
      6) durability;
      7) an indication of the normative document on standardization;
      8) other information as provided in the normative documents on standardization.
      Information on the abovementioned requirements to the quality of goods shall be contained on the tags, labels, inserts in the Kazakh and Russian languages.
      The goods shall be stored and transported in conditions ensuring its quality integrity and compliance with the safety requirements for the consumption, including the compliance with the prescribed conditions of storage in specially equipped premises and of transportation in vehicles specially designed for such purposes, and where provided for the compliance with such requirements shall be confirmed by recording in the relevant documents.
      3. It shall be prohibited to sell:
      1) the goods that have been seized from circulation;
      2) the goods without special permission that are restrictedly tradable;
      3) the excisable goods that are to be marked in a prescribed manner, but having no excise stamp or accounting and control marks;
      4) the goods that does not conform with the requirements provided for by paragraph 1 of this article;
      5) other goods prohibited for sale under legislation of the Republic of Kazakhstan.

      Article 32-1. Rights of the subjects of trading activities

      1. The subjects of trading activities shall have the right to carry out trading activities in accordance with this Law and legislation of the Republic of Kazakhstan.
      2. The subject of trading activities shall, on his own discretion, determine:
      1) the specialization of trade (universal and (or) specialized trade);
      2) range of goods for sale;
      3) work pattern;
      4) prices of traded goods, except for the cases stipulated by article 9 of this Law.
      3. The subject of trading activities may submit with the state authorities the proposals on the improvement of normative legal acts concerning the interests of the subjects of trading activities.

Chapter 7. Final provisions

      Article 33. Control over trading activities

      Footnote. Article 33 as amended by the Law of the Republic of Kazakhstan No. 188-IV dated 17.17.2009 (the order of enforcement, See art. 2).

      Article 33-1. Control over the restricting of access of the goods to trade networks and large trading facilities

      The competition authority of the Republic of Kazakhstan shall carry out control over the restriction of access of goods to trade markets and large trading facilities in a manner set forth in the Law of the Republic of Kazakhstan “On Competition”.
      Footnote. Law is supplemented by Article 33-1 in accordance with the Law of the Republic of Kazakhstan; No. 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication).

      Article 33-2. State control over conformity to the amount of maximum permissible retail prices for staple foods

      1. State control over conformity to the amount of maximum permissible retail prices for staple foods shall be carried out in the form of inspection and other forms.
      2. Inspection shall be 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 shall be carried out in accordance with the present Law.
      3. Other forms of control are aimed at monitoring the conformity of prices to the amount of maximum permissible retail prices for staple foods and shall be carried by visiting the trading facilities.
      4. Other forms of control shall be carried out upon request of the natural and legal persons or by the instructions of akims of the oblast, city of republican status, and of the capital.
      5. Where upon the results of other forms of control the amount of maximum permissible retail prices for staple foods is revealed to be in excess an order to immediately eliminate the revealed violation shall be issued in the form set by the authorized body.
      6. Control over the execution of the order on the immediate elimination of the violations which have been revealed upon the results of other forms of control shall be carried out through unscheduled audits to be conducted in accordance with the Law of the Republic of Kazakhstan “On state control and supervision in the Republic of Kazakhstan”.
      Footnote. Law is supplemented by Article 33-2 in accordance with the Law of the Republic of Kazakhstan, No. 400-IVdated 26.01.2011 (shall be enforced upon expiry of thirty calendar days after its first official publication); as amended by the Law of the Republic of Kazakhstan, No. 452-IV dated 05.07.2011 (shall be enforced from 13.10.2011).

      Article 34. Settlement of disputes

      Any dispute arising in the course of the state regulation of trading activities shall be settled in accordance with the legislation of the Republic of Kazakhstan.

      Article 35. Responsibility for violating legislation of the Republic of Kazakhstan on trading activities

      Any person guilty of violating the legislation of the Republic of Kazakhstan on trading activities shall bear liability under the laws of the Republic of Kazakhstan.

      Article 36. The order of enforcement of this Law

      This Law shall be enforced from the date of its official publication.

      The President
      of the Republic of Kazakhstan