On State Regulation of Manufacturing and Turnover of Biofuel

The Law of the Republic of Kazakhstan dated 15 November 2010 No. 351-IV

Unofficial translation

      Note of the Republican Centre of Legal Information!
      The order of enforcement of this Law of the Republic of Kazakhstan see Article 24

      This Law regulates social relations arising in the sphere of manufacturing and turnover of biofuel.

Chapter 1. GENERAL PROVISIONS

      Article 1.The basic definitions used in this Law

      The following basic definitions shall be used in this Law:
      1) biologically sourced raw materials - the biologically sourced products, including those, that break into biochemical elements and used for biofuel manufacturing;
      2) biofuel - fuel produced from the biologically sourced raw materials;
      3) turnover of biofuel - processes (stages) of selling (trading or delivery) biofuel, including coming-in (import) or coming-out (export) of biofuel, as well asrelatedprocesses of spreading, marking, storage and transportation;
      4) theauthorised bodyin the field of turnover of biofuel -a state body that carries out administrationin the field of state regulation of turnover of biofuel;
      5) recycling of biofuel - processing treatment of biofuelthat is worthless for intended use and of by-products of biofuel manufacturing into biofuel of program quality or other products;
      6) abiofuel manufacturing plant -a specialised building intended for processing of raw materials into biofuel;
      7) manufacturing ofbiofuel -a set of operations on processing of raw materials that ensure the biofuel production;
      8) abiofuel manufacturer -a legal entity that carries out manufacturingand turnover of biofuel in accordance with the legislation of the Republic of Kazakhstan;
      9) theauthorised bodyin the field of biofuel manufacturing -astatebody that carries out administrationin the field of state regulation of biofuel manufacturing;
      10) bioethanol - dehydrated ethyl alcohol produced from the biologically sourced raw materials and intended for mandatory mixing with oil products or use for the purpose of manufacturing of other type of biofuel;
      11) dehydrated ethyl alcohol - ethyl alcohol that was subject to dehydration process, water share of which is no more than one percent;
      12) denaturated bioethanol - dehydrated ethyl alcohol that was subject toprocess of mixing with chemical substances in order togive the properties prohibiting the use as food product or additives to food product;
      13) amanufacture passport -a document on the duly form that reflects capacity indicators of a biofuel manufacturing plant, its basic characteristics, and that regulates the use of available equipment for compliance with the technological process of biofuel manufacturing;
      14) food raw materials-a type of biologically sourced raw materialssuitable for manufacturing of food products and biofuel;
      15) anaccompanying invoice-a unified document that intended for carrying out control over the movement of biofuel on the whole route from a sender to recipient, required for execution of operations on dispatch and receive of a biofuel.

      Article 2. Legislation of the Republic of Kazakhstan on state regulation of manufacturing and turnover of biofuel

      1. The legislation of the Republic of Kazakhstan on state regulation of manufacturing and turnover of biofuel 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.
      2. If international treaty ratified by the Republic of Kazakhstan establishes the rules other than thoseprovided by this Law, then the rules of international treaties shall be applied.

Chapter 2. STATE REGULATION AND SUPPORT OF MANUFACTURING AND TURNOVER OF BIOFUEL

      Article 3. State regulation of manufacturing and turnover of biofuel

      1. State regulation of manufacturing and turnover of biofuel shall be carried out by the Government of the Republic of Kazakhstan and authorised bodiesin the field of manufacturing and in the field of turnover of biofuel.
      Other state bodies have the right to regulate certain questions of manufacturing and (or) turnover of biofuel provided by this Law within the competenceestablished by other Laws, acts of the President of the Republic of Kazakhstan and Government of the Republic of Kazakhstan.
      2. Main objectives of state regulation of manufacturing and turnover of biofuel shall be:
      1) reduction of pollution emissions into atmosphere;
      2) development of manufacturing and turnover of biofuel;
      3) enforcement of legislation of the Republic of Kazakhstan on state regulation of manufacturing and turnover of biofuel.
      3. State regulation of manufacturing and turnover of biofuel shall include:
      1) defining the limiting volumes of manufacturing capacities on biofuel manufacturing;
      2) state control in the field of manufacturing and turnover of biofuel;
      3) fixingup quotas on food raw materials used for the further processing into biofuelin case of food safety hazard.

      Article 4.State support of manufacturing and turnover of biofuel

      The state provides support to manufacturing and turnover of biofuel by financing researches on priority directions of development of the biofuel market in order to ensure development ofthe biofuel market.

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

      The Government of the Republic of Kazakhstan shall:
      1) develop principal directions of a state policy in the field of state regulation and support of manufacturing and turnover of biofuel;
      2) 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) define the limiting volumes of manufacturing capacities on biofuel manufacturing;
      4) approvethe forms and procedure for submission of reports that arerequired for monitoring of biofuel manufacturing by biofuel manufacturers to the authorised bodyin the field of biofuel manufacturing;
      5) approvethe form, procedure and deadlinesfor submission of declarations on a turnover of biofuel;
      6) approvetheprocedure of execution of accompanying invoices;
      7) fix up the quotas on food raw materials used for the further processing into biofuel, and approve the procedure of their fixing up, in case of food safety hazard,;
      8) approve the technical regulations in the field of manufacturing and turnover of biofuel;
      9) carry out the other powers provided by the Constitution, Laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.
      Footnote. Article 5 as amended 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).

      Article 6.Competence of the authorised bodyin the field of biofuel manufacturing

      The authorised bodyin the field of biofuel manufacturing shall:
      1) implementa state policy in the field of state regulation of biofuel manufacturing within its competence;
      2) develop and approvewithin its competence the regulatory legal acts in the field of state regulation of biofuel manufacturing;
      3) carry out a state control in the field of biofuel manufacturing;
      4) develop and approvethe list of required information for approval of a manufacture passport;
      5) submit proposals on development of high technologyin the field of biofuel manufacturing;
      6) develop technical regulations;
      7) 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);
      8) carry out a sectorial examination of technical and economic justificationfor construction of biofuel manufacturing plant;
      9) introduce proposals to the Government of the Republic of Kazakhstan on definingthe limiting volumes of manufacturing capacities on biofuel manufacturing;
      10) conduct monitoring of biofuel manufacturing;
      11) develop and approve the rules onapplication of control metering instruments that provideautomated information transmission aboutthe volumes of biofuel manufacturing;
      12) developthe procedure of fixing-up quotas on food raw materials that are used for the further processing into biofuel, in case of food safety hazard;
      13) develop and approve the forms of mandatory in-house reports, prompt sheets, risk assessment criteria, semi-annual plans of audits in accordance with the Law of the Republic of Kazakhstan On State Control and Supervision in the Republic of Kazakhstan;
      14) carry out the other powers provided by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and Government of the Republic of Kazakhstan.
      Footnote. Article 6 as amended by the Laws 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); dated 10.07.2012 No. 36-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 7.Competence of the authorised bodyin the field of turnover of biofuel

      The authorised bodyin the field of turnover of biofuel shall:
      1) implementa state policy in the field of state regulation of turnover of biofuel within its competence;
      2) develop and approvewithin its competence the regulatory legal acts in the field of state regulation of turnover of biofuel;
      3) carry out an in-house audit of turnover of biofuel;
      4) develop the form, procedure and deadlinesfor submission of declarations on turnover of biofuel;
      5) develop and approvethe form of notifications;
      6) carry out a state control in the field of turnover of biofuel;
      7) develop theprocedure of execution of accompanying invoices;
      8) in accordance with the Law of the Republic of Kazakhstan On State Control and Supervision in the Republic of Kazakhstan develop and approve theforms of prompt sheets, risk assessment criteria, semi-annual plan of audits, with the exception of cases, provided by the Code of the Republic of Kazakhstan On Taxes and Other Obligatory Payments into theBudget (Tax Code);
      9) carry out the other powers provided by this Law, other Laws of the Republic of Kazakhstan, acts of the President of the Republic of Kazakhstan and Government of the Republic of Kazakhstan.
      Footnote. Article 7 as amended by the Laws 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); dated 10.07.2012 No. 36-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 26.12.2012 No. 61-V (shall be enforced from 01.01.2013).

      Article 8. Organisation of biofuel manufacturing

      Footnote. 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).

      Article 9. Conditions of manufacturing and turnover of biofuel

      1. Biofuel manufacturing shall be carried out:
      1) in existence of a manufacture passport and control metering instruments thatprovide automated information transmission about volumes of biofuel manufacturing to theauthorised bodyin the field of biofuel manufacturing;
      2) inthe biofuel manufacturing plant thatis owned by biofuel manufacturer as property or having other property rights.
      2. Biofuel selling shall be carried out with execution of accompanying invoices:
      1) to persons that engaged in biofuel manufacturing and (or) having a licence on compounding of oil products;
      2) for export subject to existence of relevant documents.
      3. Transport of biofuel shall be allowed subject to existence of accompanying invoices on the whole route.
      4. Storage of biofuel shall be carried out in the premises that are owned by biofuel manufacturers and manufacturers of oil product withbiofuel content or belong to them according to other property rights.

      Article 10.Rights and obligations of a biofuel manufacturer andmanufacturer of oil products withbiofuel content

      1. A biofuel manufacturer andmanufacturer of oil productswithbiofuel content shall have the right to:
      1) sell the manufactured products in his discretion, including for export;
      2) receive a state support aimed at development of the biofuel market;
      3) have the other rights in accordance with the Laws of the Republic of Kazakhstan.
      2. A biofuel manufacturer shall:
      1) submit reports required for monitoring of biofuel manufacturing to the authorised bodyin the field of biofuel manufacturing;
      2) ensure confirmation of conformity of each batch of manufactured biofuel to requirementsestablishedby technical regulations;
      3) recycle (dispose) biofuel in case of its inconsistence with the content establishedby technical regulations;
      4) submit declarations on turnover of biofuel to the authorised body in the field of turnover of biofuel in accordance with a form, procedure and deadlinesestablishedby the authorised bodyin the field of turnover of biofuel;
      5) execute and submit accompanying invoicesduring transport of biofuel to the authorised bodyin the field of turnover of biofuel according to the procedure provided for by the legislation of the Republic of Kazakhstan;
      6) comply with general safety requirements related to biofuel and processes of its life cycle, establishedby Chapter 3 of this Law;
      7) develop and approvea manufacture passport according to the procedure provided for by the authorised bodyin the field of biofuel manufacturing;
      8) conduct repair and reclamation work in accordance with the deadlinesspecified in a manufacture passport;
      9) establish control metering instruments that provide automated information transmission about the volumes of biofuel manufacturing to the authorised bodyin the field of biofuel manufacturing.
      3. According to the procedure, on form and within deadlinesestablishedby theauthorised bodyin the field of turnover of biofuel, a manufacturer of oil product with biofuel content shall:
      1) submit declarations on turnover of biofuel;
      2) execute and submit accompanying invoicesduring transport of biofuel.

      Article 11. Restrictions in the field of manufacturing and turnover of biofuel

      1. During manufacturing and turnover of biofuel it shall be prohibited:
      1) to use food raw materials for the further processing into biofuel in the volume that exceedsthe quotaestablished by the Government of the Republic of Kazakhstan;
      2) to use a grain of the 1 and 2 class as food raw materials;
      3) to carry out sale of biofuel, the content of which does not complywith the contentestablished by technical regulations;
      4) to conduct turnover of non-denaturated bioethanol, with the exception of cases of its delivery to biofuel manufacturing plant or oil refinery plant for processing into other types of biofuel;
      5) to conduct and carry out turnover of alcoholic products;
      6) to receive for processing raw materials that are the genetically modified source (object) or contain genetically modified sources (objects) without scientifically grounded confirmation of their safety and their state registration;
      7) to carry out biofuel manufacturing by two or more biofuel manufacturers at the same biofuel manufacturing plant;
      8) to carry out biofuel manufacturing without manufacture passport, control metering instruments of the volumes of biofuel manufacturing or during their malfunctions;
      9) to sell biofuel to personsthat are not engaged in biofuel manufacturing and (or) do not have a licence for compounding of oil products, with the exception of export of biofuel subject to existence of relevant documents;
      10) todispatch manufactured biofuel for its storage to personsthat are not members of the biofuel market, with the exception of export of biofuel subject to existence of relevant documents;
      11) to sell biofuel without execution of accompanying invoices.
      2. Storage of biofuel by personsthat are not engaged in biofuel manufacturing and (or) that do not have a licence for compounding of oil products, shall be prohibited, with the exception of export of biofuel subject to existence of relevant documents.

Chapter 3. GENERAL SAFETY REQUIREMENTS TO BIOFUEL AND PROCESSES OF ITS LIFE CYCLE

      Article 12.The subject matter of technical regulation

      Biofuel and processes of its life cycle shall be subject matter of technical regulation.

      Article 13. Confirmation of biofuel conformity

      Confirmation of conformity of biofuel to requirements determined by technical regulations shall be carried out according to the procedure provided for by the legislation of the Republic of Kazakhstan.

      Article 14.Requirements to information on a safety andquality of biofuel

      Biofuel manufacturers shall according to the procedure provided for by the legislation of the Republic of Kazakhstan provide full and accurate information on indicators of safety and quality of biofuel to customers and consumers, in order to prevent the actionsthatmisleadconsumers in respect of safety and quality of biofuel.

      Article 15.Safety requirements to biofuel and processes of its life cycle

      Biofuel and processes of its life cycle shall be harmless for life and health of a human and environmental protection in compliance with requirements of technical regulations.

      Article 16.Safety requirements during storage of biofuel

      1. Storage of biofuel shall be carried out in specially intended storage facilities that meet the safety requirements in accordance with the legislation of the Republic of Kazakhstan.
      2. Safety requirements during storage of biofuel shall be established by technical regulations depending on the risks.

      Article 17.Safety requirements during transport of biofuel

      1. Transport of biofuel shall be allowed by specially equipped transport, eligible for transportation according to requirementsapplicable to transportation of hazardous materials, and rules for technical maintenance.
      2. Documentsrelated to transport of biofuel shall comply with requirements, established by the legislation of the Republic of Kazakhstan for transportation of hazardous materials, for each type oftransport.
      3. Transport of biofuel shall provide safety, quality and security of biofuel.

      Article 18.Safety requirements duringrecycling and destruction of biofuel

      Biofuel recognised unsuitable for intended use, according to results of laboratory researches, shall be subject to examination in relation to its further use or destruction (recycling) according to the procedure provided for by technical regulations.

Chapter 4. STATE CONTROL IN THE FIELD OF MANUFACTURING AND TURNOVER OF BIOFUEL

      Article 19.State control in the field of manufacturing and turnover of biofuel

      1. State control in the field of manufacturing and turnover of biofuel shall be carried out throughaudits and by other means.
      Audits 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 means of state control shall be carried out in accordance with this Law.
      2. In-house audit shall be also carried out in the field of manufacturing and turnover of biofuel.
      Footnote. Article 19 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 20.In-house audit in the field of biofuel manufacturing

      In-house auditin the field of biofuel manufacturing shall be carried out by theauthorised bodyin the field of biofuel manufacturing on the basis of review and analysis of in-housereports, prompt sheets, risk assessment criteria, indications of control instruments provided by biofuel manufacturers.

      Article 21.In-house audit in the field of turnover of biofuel

      In-house auditin the field of turnover of biofuel shall be carried out by the authorised bodyin the field of turnover of biofuel on the basis ofreview and analysis of declarations on turnover of biofuel, accompanying notes provided by members of the biofuel market.

      Article 22. The procedure for conducting in-house audit in the field of manufacturing and turnover of biofuel

      1. In case of discovery of breaches (failure to provide the documents specified in Articles 20 and 21 of this Law by members of the biofuel market, or discovery of breachesduring their review and analysis), the authorised bodyin the field of turnover of biofuel shall serve upon a notice to a member of the biofuel market within five business days from the moment of discovery of such breach.
      Notice shall include full name of a member of the biofuel market, taxpayer registration number, date of service ofa notice, requirement on fulfillment of obligation, grounds for forwardinga notice, the procedure of appeal.
      2. A notice forwardedby post by registered letter with notification or in electronic form via electronic communication channel, providing guaranteed delivery of communications, shall be recognised as delivered from the date of receipt of reply by post or other communication organisations or upon expiry of five business days from the date of forwarding a notice in electronic form.
      Fulfillment of a notice on remedy of defaults that were discovered according to results of in-house audit, shall be carried out within thirty calendar days from the date of its delivery (receipt).

Chapter 5. FINAL PROVISIONS

      Article 23.Liability for violation of the legislation of the Republic of Kazakhstan on state regulation of manufacturing and turnover of biofuel

      The violation of legislation of the Republic of Kazakhstan on state regulation of manufacturing and turnover of biofuel shall entail a liabilityestablished by the Laws of the Republic of Kazakhstan.

      Article 24.The order of the entry into force of this Law

      This Law shall enter into force upon expiry of ten calendar days from the date of its first official publication.

      The President
      of the Republic of Kazakhstan              N. Nazarbayev