On State Regulation of Manufacturing and Turnover of Specific Types of Oil Products

The Law of the Republic of Kazakhstan dated 20 July, 2011 No. 463-IV

Unofficial translation

      User’s attention!
      TABLE OF CONTENT is established for ease of use of the Republican Centre of Legal Information (hereinafter – RCLI).

      Note of RCLI!
      The order of enforcement of this Law of the Republic of Kazakhstan See Article 26.

      This Law regulates the social relations, arising during the manufacturing and turnover of specific types of oil products: petrol, aviation and diesel fuel, fuel oil.

      Article 1. Basic definitions, used in this Law

      The following basic definitions shall be used in this Law:
      1) arefuelling station – atechnological complex, equipped by facilities, securing storage and retail trade of oil products.
      Refuelling stations shall divide into the following types:
      stationary – intended for filling of a transport by oil products byfuel-dispensing units;
      containerized – with the ground arrangement of capacities for a storage of oil products, a technological system of which shall be characterized by arrangement of fuel-dispensing units in a storage container of oil products, made as a single factory product;
      movable – a portable technological system, established on automobile chassis, trailer, semi-trailer, made as a single factory product;
      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) a personal identification code-number – a permanent identification number, that shall be assigned by oil products manufacturers, wholesale suppliers of oil products, carrying out import of oil products, and every name of oil product, manufactured in the Republic of Kazakhstan or imported in the territory of the Republic of Kazakhstan, required for indicating a type, trade mark of oil products in accompanying note and declaration on turnover of oil products;
      4) control metering instruments –technical devices, metering the quantitative and qualitative characteristics of oil products for a maintaining of records for the purpose of following transfer to authorized body in the scopeof turnover of oil products via automated information system on the volumes of acquisition, storage, sales, shipment of oil products, established by oil products manufacturers, wholesale suppliers and retail sellers of oil products, with the exception of retail sellers of oil products, selling oil products from refuelling stations of movable type;
      5) an investment program – a program of investment and return of the funds, directed on establishment, modernization and reconstruction of existed manufacturing capacities of oil products manufacturers, for a definite period in order to receive the planned technical-and-economic effect, consisting of economic indices, including investment components, that have an effect on a price of oil products;
      6) compounding – a blending of two or more components, including introduction of additions, admixtures in order to receive the oil products of program quality;
      7) non-merchantable oil product –the oil product, that is not conform to requirements, established by the legislation of the Republic of Kazakhstan on technical regulation;
      8) a low power manufacturer of oil products – an oil products manufacturer, carrying out the oil products manufacturing on the process installations, designed capacity of which shall provide refining output of the crude oil and (or) gascondensate of less than eight thousand tons annually;
      9) an oil supplier – an individual or legal entity, supplying the crude oil and (or) gascondensate to oil products manufacturer, as well as to oil refinery plants, located beyond the boundaries of the Republic of Kazakhstan, produced and received by the Republic of Kazakhstan on an independent basis in the capacity of taxes, paid in kind, in accordance with the tax legislation of the Republic of Kazakhstan, imported or acquired directly from a subsoil user, on conditions, established by this Law;
      10) oil products –specific types of oil products: petrol, aviation and diesel fuel, fuel oil;
      11) delivery plan of oil products – a volume of monthly demands of oblasts, cities of republican significance and capital for oil products, manufactured in the Republic of Kazakhstan, on retail trade of which a state price regulation is established;
      12) retail trade of oil products – an entrepreneurial activity on oil products sales to individuals and legal entities for own requirements without intention of the following sales;
      13) a retail seller of oil products – an individual or legal entity, carrying out retail trade of oil products;
      14) a wholesale supplier of oil products – an individual or legal entity, carrying out wholesale trade of oil products;
      15) wholesale trade of oil products – an entrepreneurial activity on the oil products sales to retail sellers of oil products, as well as to wholesale suppliers of oil products in the oil products sales by oil products manufacturers, oil suppliers, individuals or legal entities, carrying out the oil products sales, imported by them, and (or) wholesale suppliers of oil products in the cases, provided by this Law;
      16) oil products manufacturing – a set of works on refining of the crude oil and (or) gascondensate, as well as on compounding, securing receipt of oil products in accordance with the legislation of the Republic of Kazakhstan on technical regulation;
      17) minimum manufacturing volume of oil products – a volume of oil products, not less of which, anoil products manufacturershall be obliged to manufacture every month within a calendar year;
      18) monitoring of oil products manufacturing and sales –analysis of requirements, processes of manufacturing, sales, transporting, as well as behavior of wholesale and retail prices for oil products;
      19) authorized body in the scope of oil products manufacturing – a central executive body, carrying out management in the scopeof state regulation of oil products manufacturing;
      20) an oil products manufacturer – an individual or legal entity, carrying out oil products manufacturing and having manufacture passport;
      21) turnover of oil products – an acquisition, storage, wholesale and retail trade, shipment, transporting, export and import of oil products;
      22) authorized body in the scope of turnover of oil products – a central executive body, carrying out management in the scopeof state regulation of turnover of oil products;
      23) oil product depot – a complex of buildings and constructions, including manufacturing equipment, tank battery, technical devices and utility lines, intended for receipt, storage, shipping and sales of oil products, conforming to requirements of the legislation of the Republic of Kazakhstan on technical regulation;
      24) common database on manufacturing and turnover of oil products –electronic database on manufacturing and turnover of oil products, forming on the basis of administrative data of government bodies, carrying out state regulation of manufacturing and turnover of oil products within their competence;
      25) manufacture passport – a standard document, reflecting capacity indicators of oil products manufacturer, his (her) principal characteristics, regulating use of available equipment for compliance with manufacturing processes;
      Note of RCLI!
      Subparagraph 26 is provided to be amended by paragraph 2, Article 26 of the Law (shall be valid till 01.01.2005).
      26) reservoir –capacity for receipt, storage, shipping and sales of oil products on the basis of oil products, belonged to wholesale supplier of oil products or retail seller of oil products as property or other legal basis, or on operation facilities of oil products manufacturer, equipped by the control metering instruments;
      27) a notification – a written report, directed by an authorized body in the scopeof turnover of oil products to producer, wholesale supplier or retail seller of oil products, on a remedy of failure to comply with requirements, established by the Laws of the Republic of Kazakhstan, decrees of the President of the Republic of Kazakhstan and regulations of the Government of the Republic of Kazakhstan in the scopeof state regulation and turnover of oil products;
      28) an accompanying note – a document, accompanying oil products on the whole route from a sender to recipient, intended to control the turnover of oil products, required for operational execution on dispatch and receive ofoil products, as well as operations on a transfer of oil products to oil suppliers.
      Footnote.Article 1 as amended by the Laws of the Republic of Kazakhstan dated 22.06.2012 No. 21-V (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 2. Legislation of the Republic of Kazakhstan on state regulation of manufacturing and turnover of oil products

      1. The legislation of the Republic of Kazakhstan on state regulation of manufacturing and turnover of oil products shall be 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 the international treaty ratified by the Republic of Kazakhstan establishes the other rules, than those provided by this Law, the rules of international treaty shall be applied.

      Article 3.Scope of application of this Law

      1. This Law shall have an effect on the territory of the Republic of Kazakhstan and extend to relations in the scopeof manufacturing and turnover of oil products.
      2. Validity of this Law shall not extend to relations:
      1) arising upon the oil products sales by individuals and (or) legal entities not for the purpose of entrepreneurial activity;
      2) on manufacturing and turnover of oil products, arising within the frame of mobilization preparation, mobilization and needs of defence.

      Article 4. State regulation of manufacturing and turnover of oil products

      The state regulation of manufacturing and turnover of oil products shall be carried out by:
      1) confirmation of delivery schedule of the crude oil and (or) gascondensate for subsoil users to oil products manufacturers for meeting requirements of the local market of the Republic of Kazakhstan;
      2) confirmation of the plans of oil refining and oil products delivery;
      3) 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);
      4) establishment of conditions and restrictions on carrying out a wholesale and retail trade of oil products;
      5) technical regulation in the scopeof manufacturing and turnover of oil products;
      6) carrying out of state control in the scopeof manufacturing and turnover of oil products;
      7) establishment of limit prices for retail trade of oil products, on which a state price regulation is established;
      8) carrying out of the monitoring of oil products manufacturing and sales;
      9) fulfillment of international obligations of the Republic of Kazakhstan in the part of regulation of manufacturing and turnover of oil products, carrying out of cooperation with bodies of foreign states and international organizations, authorized to regulate questions of manufacturing and turnover of oil products.
      Footnote.Article 4 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 5. Objectives and goals of state regulation of manufacturing and turnover of oil products

      1. Objectives of state regulation of manufacturing and turnover of oil products shall be provision of economic security of the Republic of Kazakhstan, satisfaction of customer demands in the qualitative and safety oil products for environment and public health.
      2. Goals of the state regulation of manufacturing and turnover of oil products shall be:
      1) protection of life and health of a human and environmental protection;
      2) protection of economic interests of the Republic of Kazakhstan, as well as arrangement of conditions, excluding illegal manufacturing and turnover of oil products;
      3) improvement of quality of oil products, manufactured in the Republic of Kazakhstan;
      4) arrangement of conditions, securing modernization of refining capacities of oil products manufacturers.

      Article 6.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 scopeof state regulation of manufacturing and turnover of oil products and organize their sales;
      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) confirm theprocedure for development, confirmation and coordination of investment programs, as well as presentation of accounts on their realization;
      4) confirm the list of officially recognized information sources about market prices for thecrude oil and (or) gas condensate, and oil products;
      5) confirm theprocedure for determination of the limit price for retail trade of oil products, on which a state price regulation is established;
      6) confirm the list of oil products, on which a state price regulation shall be established;
      7) confirm the rules of assignment of the personal identification code-numbers;
      8) confirm the forms, rules of presentation and composition of declarations on the turnover of oil products;
      9) confirm the rules of drawing up, receipt, issue, accounting, storage and presentation of accompanying notes;
      10) confirm theprocedure for carrying out monitoring of oil products manufacturing and sales;
      11) confirm the accession order of oil suppliers to refining of the crude oil and (or) gas condensate;
      12) confirm the form and rules of keeping the record book of oil products’ movements in agas-filling station;
      13) fulfill the other functions, assigned on it by the Constitution, this Law, other Laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.
      Footnote.Article 6 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 7.Competence of an authorized body in the scopeof oil products manufacturing

      An authorized body in the scopeof oil products manufacturing shall:
      1) realize a state policy in the scopeof state regulation of oil products within its competence;
      2) develop and confirm the form of manufacture passport, including information for its confirmation;
      3) confirm or reconfirm amanufacture passport to oil products manufacturers;
      4) annually confirm thepreventive maintenance schedules of processing installations of oil products manufacturers in recognition of spring farm and harvest works and heating season;
      5) develop theprocedure for monitoring of oil products manufacturing and sales;
      6) develop theprocedure for development, confirmation and coordination of investment programs, as well as presentation of accounts on their realization;
      7) carry out state control in the scopeof oil products manufacturing;
      8) confirm investment programs of the oil products manufacturers, with the exception of low power manufacturers of oil products;
      9) develop the list of oil products, on which a state price regulation shall be established;
      10) annually confirm oil refining plans;
      11) annually confirm delivery plans of oil products;
      12) confirmdelivery schedule of the crude oil and (or) gas condensate for subsoil users to oil products manufacturers, as well as to oil refinery plants, located beyond the boundaries of the Republic of Kazakhstan, for meeting requirements of the local market of the Republic of Kazakhstan;
      13) develop and present the proposals on taking the actions of customs tariff and non-tariff regulation in respect of export and (or) import of oil products;
      14) 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);
      15) coordinate the limit prices for retail trade of oil products, on which a state price regulation is established;
      16) 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);
      17) develop and confirm the forms of mandatory departmental reporting, prompt sheets, risk assessment criteria, semi-annual inspection plans in accordance with the Law of the Republic of Kazakhstan “On state control and supervision in the Republic of Kazakhstan”;
      18) develop the accession order of oil suppliers to refining of the crude oil and (or) gas condensate;
      19) conduct departmental statistical monitoringin the scopeof manufacturing and sales of oil products in accordance with a plan of statistical efforts;
      20) carry out administrative accountingin the scopeof manufacturing and sales of oil products on the forms, coordinated with an authorized body in the scopeof state statistics;
      21) determine the minimal manufacturing volumes of oil products;
      22) 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 22.06.2012 No. 21-V (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 8.Competence of authorized body in the scopeof turnover of oil products

      An authorized body in the scopeof turnover of oil products shall:
      1) realize a state policy in the scope of state regulation of turnover of oil products within its competence;
      2) carry out state control in the scopeof turnover of oil products;
      3) develop and confirm the procedure for formation and maintenance of common database on manufacturing and turnover of oil products;
      4) carry out the common database maintenance on manufacturing and turnover of oil products in the manner, prescribed by subparagraph 3) of this Article;
      5) carry out an in-house audit of turnover of oil products;
      6) develop the rules of drawing up, receipt, issue, accounting, storage and presentation of accompanying notes;
      7) develop the rules of assignment of the personal identification code-numbers;
      8) develop and confirm the form of notifications;
      9) develop the forms, rules of presentation and composition of declarations on turnover of oil products;
      10) confirm the list of the personal identification code-numbers;
      11) develop and confirm the forms of prompt sheets, risk assessment criteria, semiannual inspection plans, with the exception of cases, provided by the Code of the Republic of Kazakhstan “On taxes and other mandatory payments to budget” (Tax code) in accordance with the Law of the Republic of Kazakhstan “On state control and supervision in the Republic of Kazakhstan”;
      12) develop the form and rules of keeping the record book of oil products’ movements on agas-filling station;
      13) 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 8 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 9.Competence of other government bodies in the scope of state regulation of manufacturing and turnover of oil products

      1. An authorized body in the scopeof technical regulation and metrology shall:
      1) carry out state control of compliance with requirements of oil products, established by the technical regulations;
      2) carry out a state metrological control, in accordance with the legislation of the Republic of Kazakhstan on securing the uniformity of measurements;
      3) 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.
      2. An authorized body, carrying out management in the scopes of natural monopolies and on regulated markets shall:
      1) carry out the coordination of investment programs of oil products manufacturers, with the exception of low power manufacturers of oil products;
      2) develop the procedure for determination of a limit price for retail trade of oil products, on which a state price regulation is established;
      3) determine limit prices for retail trade of oil products, on which a state price regulation is established, as may be agreed with an authorized body in the scopeof oil products manufacturing, in accordance with the order, approved by the Government of the Republic of Kazakhstan;
      4) 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.
      3. An authorized body in the scopeof commercial security shall:
      1) carry out a state regulation and state control in the scopeof commercial security in the process of manufacturing, transporting, storage and sales of oil products;
      2) 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.
      4. An authorized body in the scopeof development of agroindustrial complex shall:
      1) determine the volumes of oil products, required for delivery to agricultural producers, jointly with the local executive bodies of oblasts;
      2) submit proposals to authorized body in the scopeof oil products manufacturing on the volumes of oil products delivery to agricultural producers;
      3) carry out the analysis of oil products security of agricultural producers and represent its results to authorized body in the scopeof oil products manufacturing;
      4) 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.

      Article 10.Competence of local executive bodies of oblasts, cities of republican significance and capital

      Local executive bodies of oblasts, cities of republican significance and capital shall:
      1) make a consumption forecast of oil products within the territory of oblasts, cities of republican significance and capital, on which a state price regulation is established for the calendar year ahead;
      2) make a consumption forecast of oil products within the territory of oblasts, cities of republican significance and capital for a heating season;
      3) carry out the other powers, assigned on local executive bodies by the legislation of the Republic of Kazakhstan in the interests of local state administration.

      Article 11. State control in the scopeof manufacturing and turnover of oil products

      1. A state control in the scopeof manufacturing and turnover of oil products shall be carried out in the form of verification and other forms.
      2. Verification 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 this Law.

      Article 12. Obligations of oil products manufacturers

      1. Oil products manufacturers shall:
      1) carry out the oil products sales under the terms of fairness and non-discrimination, unless otherwise provided by this Law;
      2) direct the application on assignment of the personal identification code-number before the carrying out of oil products manufacturing to the relevant territorial subdivision of authorized body in the scopeof turnover of oil products in accordance with the rules, approved by the Government of the Republic of Kazakhstan;
      3) produce and carry out a wholesale trade of oil products in recognition with requirements of this Law;
      4) open a current account in a resident bank of the Republic of Kazakhstan for financing the investment program and carry out intended use of financial means, directed on realization of investment programs;
      5) present reporting on realization of investment programs in accordance with the order, approved by the Government of the Republic of Kazakhstan;
      6) present the annual preventive maintenance schedules of processing installations to authorized body in the scopeof oil products manufacturing on confirmation and keep to this schedule;
      7) present the primary statistics or primary administrative data, required for departmental statistical monitoring or administrative accounting to authorized body in the scope of oil products manufacturing;
      8) provide equal access terms to refining of the crude oil and (or) gas condensate to oil suppliers;
      9) carry out established minimal volumes of oil products manufacturing.
      2. The obligations, provided in subparagraphs 4), 5), 6), 8) and 9) of paragraph 1 of this Article, shall not extend to low power oil products manufacturers.
      3. Oil products manufacturers shall be prohibited to:
      1) sell the crude oil and (or) gas condensate;
      2) carry out the manufacturing of petrol and diesel fuel with the use of metallic additions (iron, manganese, lead and others, except for antistatic additions for diesel fuel);
      3) use one and the same equipment for oil products manufacturing by two and more oil products manufacturers;
      4) acquire, as well as accept the crude oil and (or) gas condensate for refining from oil suppliers in the absence of documents, mentioned in subparagraphs 1) and 2) of paragraph 5 of Article 18 of this Law;
      5) abandon the work of processing installations, used for oil products manufacturing, without securing approval of authorized body in the scopeof oil products manufacturing, with the exception of immediate prevention of accidental situation where it’s necessary.
      4. Proscription, provided by subparagraph 5) of paragraph 3 of this Article, shall not extend to low power oil products manufacturers.

      Article 13.Requirements, ensuring security in the scopeof manufacturing and turnover of oil products

      1. Manufacturing and turnover of oil products shall ensure security for life and health of a human and environmental protection in accordance with the legislation of the Republic of Kazakhstan.
      2. Objects of technical regulation in the scopeof manufacturing and turnover of oil products shall be the oil products, as well as process of their manufacturing, storage, transporting, sales, destruction and utilization.
      3. Equipment and technical facilities, used during themanufacturing and turnover of oil products shall comply with requirements of the legislation of the Republic of Kazakhstan in the scopeof safety of machinery and equipment, as well as technical regulations.
      4. In design and construction of the objects on refining, transporting and flow of oil products, the requirements of environmental legislation of the Republic of Kazakhstan, as well as the legislation of the Republic of Kazakhstan on architectural, town-planning and building activity, on fire security shall be complied and the risks of emergency occurrence shall be considered.

      Article 14.State price regulation for the oil products

      1. A state price regulation for retail trade of oil products, having important social implication, as well as having significant effect on economy of the Republic of Kazakhstan may be established for the purpose of ensuring the economic security in the Republic of Kazakhstan, in the manner, prescribed by the Government of the Republic of Kazakhstan.
      2. An authorized body, carrying out management in the scopes of natural monopolies and on the regulated markets, in coordination with an authorized body in the scopeof manufacturing of oil products shall determine limit prices for retail trade of oil products, on which a state price regulation is established, in the manner prescribed by the Government of the Republic of Kazakhstan.
      3. Retail sellers of oil products during the oil products sales shall be obliged not to exceed established limit prices for retail trade of oil products, on which a state price regulation is established.
      4. In case of state price regulation for retail trade of oil products, the limit prices shall be established no more than once a month.

      Article 15.Current account for financing of investment program

      1. After coordination and confirmation of investment program, the oil products manufacturer shall open a current account, the funds of which shall be disbursed exceptionally for the purpose of financing of investment program.
      2. Volumes of investments to the basic assets (investment components) of oil products manufacturer, provided in investment programs shall be taken into consideration in a price estimation of regulated commodities for a current period and midterm.
      3. The force of this Article shall not extend to low power oil products manufacturers.

      Article 16.Avowal of turnover of oil products and results of in-house audit

      1. Persons, carrying out manufacturing and (or) oil products sales shall be obliged to present a declaration on turnover of oil products to authorized body in the scopeof turnover of oil products.
      2. An authorized body in the scope of turnover of oil products shall carry out in-house audit, on the basis of declarations on turnover of oil products, accompanying notes and data of the control metering instruments. In case of carrying out retail trade from refuelling stations of movable type, the in-house audit shall be carried out on the basis of declarations on turnover of oil products and accompanying notes.
      3. According to results of in-house audit, in case of detecting of failure to comply with requirements, established by the Laws of the Republic of Kazakhstan, decrees of the President of the Republic of Kazakhstan and regulations of the Government of the Republic of Kazakhstan in the scope of state regulation of manufacturing and turnover of oil products, an oil products manufacturer, wholesale supplier or retail seller of oil products shall be served by a notification within ten business days from the date of detecting of this violation.
      Note of RCLI!
      The words “identification number” shall be considered as the words “tax registration number” before January1, 2013 in the part two of paragraph 3.
      A notification shall include the last name, first name, patronymic (in existence of it) or full name of oil products manufacturer, wholesale supplier or retail seller of oil products, identification number, name of tax administration, date of notification, basis for filing the notification, order of appeal.
      4. A notification shall be served to oil products manufacturer, wholesale supplier or retail seller of oil products or their representatives in person, against signature or by other methods, confirming the fact of sending and receipt.
      A notification, directed by post as registered letter upon the notice or in electronic type via electronic communication channel, securing guaranteed delivery of messages, shall be considered as received from the date of obtaining an answer by post service or other communication organization or upon expiry of five business days from the date of filing notification in electronic type.
      Performance of notification shall be carried out by oil products manufacturer, wholesale supplier or retail seller of oil products within thirty calendar days from the day, following the day of service (receipt).
      Footnote.Article 16 as amended by the Law of the Republic of Kazakhstan dated 12.01.2012 No. 538-IV (shall be enforced from 01.01.2012).

      Article 17.Notification on commencement of activity, linked withwholesale supply of oil products

      1. Before commencement of activity, wholesale suppliers of oil products shall be obliged to inform an authorized body in the scopeof oil products manufacturing about this, in the manner, prescribed by the Law of the Republic of Kazakhstan “On administrative procedures”.
      2. Wholesale suppliers of oil products shall comply with the following requirements:
      1) possess the oil product depot or reservoir as property or other legal basis;
      2) have established control metering instruments.
      3. A notification shall be accompanied by the following documents:
      1) copy of state registration certificate of an applicant in the capacity of a private entrepreneur – for an individual;
      2) copy of decree and state registration (reregistration) certificate of legal entity – for alegal entity;
      3) copy of title certificate or other document, confirming existence of oil product depot or reservoir, belonged to applicant as property or other legal basis.
      Copies of documents on the choice of a wholesale supplier of oil products may be directed in the form of electronic copy of the document.
      4. An authorized body shall keep register of wholesale suppliers of oil products and make modifications and additions in it.
      5. Requirements of this Article shall not extend to:
      1) oil products manufacturers;
      2) wholesale suppliers of oil products, selling the oil products, manufactured in the result of refining of voluntarily produced and (or) imported crude oil and (or) gas condensate.
      6. Carrying out of activity, linked with wholesale supplies of oil products, without filing a notice about commencement of this activity shall entail liability, established by the Code of the Republic of Kazakhstan on administrative infractions.
      Footnote.Article 17 is in the wording of 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); as amended by the Law of the Republic of Kazakhstan dated 24.12.2012 No. 60-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 18.Specialties of state regulation of refining of the crude oil and (or) gas condensate and oil products supply

      1. Oil refining plan for the calendar year ahead, for oil products manufacturers, with the exception of low power oil products manufacturers, shall be confirmed by an authorized body in the scope of oil products manufacturing annually, on or prior to 15 December for the purpose of securing the maximum process utilizations of oil products manufacturers and meeting demands for the oil products of the local market of the Republic of Kazakhstan.
      2. Oil refining plan shall determine a volume of the crude oil and (or) gas condensate, which oil products manufacturers hall be obliged to refine on a monthly basis for manufacturing of the relevant types of oil products within a calendar year, in recognition of forecasting consumption of oil products on the local market of the Republic of Kazakhstan.
      3. Oil refining plan shall be formed in recognition of ensuring agricultural producers by the oil products in the periods of spring farm and harvest works, as well as heating supply companies for a heating season.
      4. On or prior to November 30, oil suppliers shall annually direct procurement requests of the crude oil and (or) gas condensate to authorized body in the scope of oil products manufacturing, indicating the planned volumes, delivery period of the crude oil and (or) gas condensate and delivery directions of produced oil products through the oblasts, cities of republican significance, capital for the calendar year ahead.
      5. An oil products manufacturer shall be obliged to secure equal access to oil suppliers upon condition of the following requirements:
      1) existence of the oil supplier’s document, confirming the origin of acquired (received) crude oil and (or) gas condensate;
      2) existence of the oil supplier’s document, confirming the quality of supplied crude oil and (or) gas condensate;
      3) existence of concluded oil products supply agreement with a wholesale supplier and (or) retail seller of oil products, providing the manufactured oil products supply on the territory of oblasts, cities of republican significance and capital in accordance with the oil products delivery plan, with the exception of an oil supplier, carrying out retail trade of oil products, received in a result of refining through the refuelling stations or reservoirs as property or other legal basis.
      6. In recognition of applications, mentioned in paragraph 4 of this Article, an authorized body in the scopeof oil products manufacturing shall confirm the delivery schedule of the crude oil and (or) gas condensate in which the volumes and periods of delivery of the crude oil and (or) gas condensate to oil products manufacturers shall be indicated, as well as to oil refinery plants, located beyond the territory of the Republic of Kazakhstan, for the purpose of securing the oil refining plan. Delivery schedule of the crude oil and (or) gas condensate for the calendar year ahead shall be confirmed by an authorized body in the scopeof oil products manufacturing, annually before December 15 and informed to oil suppliers and oil products manufacturers within ten calendar days from the date of its confirmation. Oil suppliers shall be obliged to carry out delivery of oil and (or) gas condensate in accordance with confirmed delivery schedule of the crude oil and (or) gas condensate.
      7. Annually, before December 15, an authorized body in the scopeof oil products manufacturing shall confirm delivery plan of oil products on the calendar year ahead, on the basis of delivery schedule of the crude oil and (or) gas condensate and consumption forecast of oil products on the territory of oblasts, cities of republican significance and capital, on retail trade of which, a state price regulation is established, presented by local executive bodies of oblasts, cities of republican significance and capital.
      8. Oil suppliers shall be obliged to carry out the oil products supply, on retail trade of which a state price regulation is established, manufactured from the volumes of the crude oil and (or) gas condensate, in accordance with confirmed delivery plan of oil products.
      9. The condition of conclusion of agreement for refining of the crude oil and (or) gas condensate by anoil products manufacturer with oil suppliers, shall be provision of the notarized copy of agreement, mentioned in subparagraph 3 of paragraph 5 of this Article.
      10. Oil suppliers shall present report on performance of delivery schedule of the crude oil and (or) gas condensate and delivery plan of oil products, manufactured in the Republic of Kazakhstan, on retail trade of which a state price regulation is established.
      11. Oil products manufacturers shall be obliged to present information in the form of administrative accounting, necessary for manufacturing monitoring and oil products sales to authorized body in the scopeof oil products manufacturing.
      Footnote.Article 18 as amended by the Law of the Republic of Kazakhstan dated 22.06.2012 No. 21-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 19. Conditions of oil products sales

      1. Import and sales of petrol and diesel fuel, containing metallic additions (iron, manganese, lead and others, except for antistatic additions for diesel fuel), and non-merchantable oil products, including their storage without following refining shall be prohibited on the territory of the Republic of Kazakhstan.
      2. Oil products sales shall be allowed in recognition of requirements of this Law only by:
      1) oil products manufacturers;
      2) oil suppliers;
      3) wholesale suppliers of oil products from the oil product depot;
      4) individuals and legal entities, carrying out retail trade of oil products.
      3. Sales and (or) shipment of oil products shall be carried out with mandatory movement of oil products through the metering instruments:
      Note of RCLI!
      Subparagraph 1) shall be carried out from 01.01.2015 (See Article 26).
      1) byoil products manufacturers, oil suppliers, wholesale suppliers of oil products or retail sellers of oil products from the oil product depot or from the reservoirs;
      Note of RCLI!
      Subparagraph 2) shall be enforced from 01.01.2017 (See Article 26).
      2) by retail sellers of oil products from refuelling stations, with the exception of retail trade of oil products from refuelling stations of movable type.
      4. In wholesale and retail trade of oil products, as well as in export of oil products, accompanying notes shall be formalized in accordance with rules, approved by the Government of the Republic of Kazakhstan.
      In retail trade of oil products from refuelling station, accompanying notes shall not be formalized.
      5. Use of reservoir for sales, as well as for storage for the purpose of following oil products sales by two and more individuals and (or) legal entities shall be prohibited.

      Article 20.Transport conditions of the crude oil, gas condensate and oil products by railway, highway, marine, inland water and air transport

      1. Transporting of the crude oil, gas condensate and oil products by railway, highway, marine, inland water and air transport shall be allowed via specially equipped and eligible transport for transportationin accordance with requirements, submitted by the legislation of the Republic of Kazakhstan to the transportation of dangerous goods.
      2. In the course of sales and (or) shipment, as well as in the carrying out of operations on transporting of oil products by railway, highway, marine, inland water and air transport, accompanying notes shall be mandatory formalized.
      Wholesale suppliers of oil products, retail sellers of oil products, persons, carrying out internal transportation of oil products shall be obliged to deliver accompanying notes to recipient through the transport, jointly with the oil products.
      For the purpose of this paragraph, the recipient shall be:
      1) a legal entity, that is a customer of oil products, the branch of this legal entity, mentioned by him (her) in the capacity of a recipient;
      2) alegal entity, his (her) branch, thatare recipients of oil products in internal transportation;
      3) alegal entity, that is a customer of oil products, as well as in internal transportation of oil products.
      Internal transportation shall be a movement, linked with transporting of oil products within one individual, carrying out entrepreneurial activity, or legal entity.
      An accompanying note shall be formalized in electronic form via web-site.
      In the carrying out of internal transportation on agricultural lands by an agricultural producer, the formalization of accompanying notes shall not be required.
      3. Documents, linked with transporting of the crude oil, gas condensate and oil products by railway, highway, marine, inland water and air transport shall conform to requirements, established for transportation of dangerous goods for each type of a transport.
      4. Structure and conditions of operation of the storage and transporting facilities of the crude oil, gas condensate and oil products by railway, highway, marine, inland water and air transport shall conform to requirements of technical regulations.

      Article 21.Wholesale trade of oil products

      1. Wholesale trade of oil products shall be carried out by suppliers only, recorded into register of wholesale suppliers of oil products. Force of this paragraph shall not extend to wholesale suppliers of oil products, mentioned in paragraph 5 of Article 17 of this Law.
      Wholesale suppliers of oil products have no right to carry out the oil products sales to other wholesale suppliers of oil products, with the exception of oil products sales by oil suppliers and oil products manufacturers, as well as wholesale suppliers of oil products in compliance with conditions of part three of this paragraph.
      Wholesale suppliers of oil products, acquiring the oil products from other wholesale suppliers of oil products have the right to carry out the oil products sales to oil products sellers only.
      2. Before carrying out of the oil products import, wholesale suppliers of oil products, carrying out import of oil products shall direct an application on assignment of the personal identification code-number to a relevant local subdivision of an authorized body in the scopeof turnover of oil products in accordance with the rules, approved by the Government of the Republic of Kazakhstan.
      3. Wholesale suppliers of oil products shall be obliged to carry out the storage of oil products only on the oil product depots and (or) in reservoirs.
      Footnote.Article 21 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 22.Retail trade of oil products

      1. Retail trade of oil products in recognition of requirements of paragraph 2 of this Article shall be allowed through the refuelling stations and (or) reservoirs, that shall be in possession of individuals and legal entities as property or other legal basis.
      2. Retail trade of oil products from the containerized refuelling stations shall be allowed in inhabited localities with a population of up to ten thousand people.
      Retail trade of oil products from refuelling stations of movable type shall be allowed on the agricultural lands in the staging areas of agricultural vehicles on the field works.
      3. Use of refueling stations for storage and retail trade of oil products by two and more retail sellers of oil products at the same time shall be prohibited.
      4. Market share of one retail seller of oil products or retail sellers of oil products considered as the group of persons on the territory of inhabited locality of more than ten thousand people or on the territory of administrative district, may not exceed thirty five percent of overall market volume, in accordance with the antitrust statutes of the Republic of Kazakhstan.

      Article 23.Monitoring of manufacturing and oil products sales

      1. An authorized body in the scopeof oil products manufacturing shall carry out the monitoring, which shall include:
      1) the monitoring of volumes of the oil products by their types, manufactured in the Republic of Kazakhstan;
      2) the monitoring of oil products sales in the Republic of Kazakhstan, including export and import of oil products;
      3) the monitoring of the wholesale and retail prices for oil products, manufactured in the Republic of Kazakhstan;
      4) the monitoring of the oil products demands of the oblasts, cities of republican significance and capital.
      2. Local executive bodies of the oblasts, cities of republican significance and capital shall annually present the consumption forecast of the oil products to authorized body in the scopeof oil products manufacturing:
      1) on retail trade of which, a state price determination is established;
      2) by heating supply companies for a heating season.
      3. Wholesale suppliers of oil products shall present information about oil products sales, including the oil products, imported in the territory of the Republic of Kazakhstan to authorized body in the scopeof oil products manufacturing.
      4. On the basis of monitoring data of manufacturing and oil products sales, an authorized body in the scope of oil products manufacturing shall:
      1) perform a forecast of the balance of consumption, manufacturing and sales of oil products on the territory of the Republic of Kazakhstan for the calendar year ahead;
      2) confirm the oil refining plans;
      3) confirm the delivery schedule of the crude oil and (or) gas condensate for subsoil users to the oil products manufacturing for meeting requirements of the local market of the Republic of Kazakhstan;
      4) confirm the delivery plans of oil products;
      5) direct relevant information to authorized body, carrying out management in the scopes of natural monopolies and on the regulated markets for determination of a limit price for retail trade of oil products, on which a state price determination is established;
      6) direct the fact of excess limit price for retail trade of oil products to authorized body, carrying out management in the scopes of natural monopolies and on the regulated markets, based on results of retail price monitoring for the oil products, for adoption of response measures.
      Footnote.Article 23 as amended by the Law of the Republic of Kazakhstan dated 06.03.2013 No. 81-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      Article 24.Specialties ofstate regulation of turnover of oil products, linked with supplying of agricultural producers by oil products in the periods of spring farm and harvest works and heating supply companies in a heating season

      1. Jointly with local executive bodies of oblasts, an authorized body in the scopeof agro-industrial complex development shall annually submit a proposal on the volume of delivery of the oil products for agricultural producers to authorized body in the scopeof oil products manufacturing for accounting of these volumes in oil refining plans, in recognition of expected scope of agricultural works.
      2. An authorized body in the scopeof oil products manufacturing shall consider the volumes of oil products, required for supplying of agricultural producers in the oil refining plans.
      3. An authorized body in the scopeof oil products manufacturing shall consider the volumes of oil products in oil refining plans, presented by local executive bodies of oblasts, cities of republican significance and capital, required for supplying of heating supply companies for a heating season in the year ahead.
      4. During the oil products sales, wholesale suppliers of oil products and retail sellers of oil products shall be obliged to place a priority on agricultural producers annually, during the period from March 1 to May 31 and from August 1 to October 31, and on heating supply companies, during the period from October 31 to March 1.

      Article 25.Liability for the breach of legislation of the Republic of Kazakhstan on state regulation of manufacturing and turnover of oil products

      The breach of the legislation of the Republic of Kazakhstan on state regulation of manufacturing and turnover of oil products shall entail the liability, established by the Laws of the Republic of Kazakhstan.

      Article 26. The order of enforcement of this Law

      1. This Law shall enter into force upon expiry of ten calendar days after its first official publication, with the exception of:
      1) paragraph 1, subparagraph 1) of paragraph 2, paragraphs 3, 4, 5, 6, 7, 8 and 9 of Article 17 and part one of paragraph 1 of Article 21, which shall enter into force upon expiry of six months after its first official publication;
      2) subparagraph 2) of paragraph 2 of Article 17 and subparagraph 1) of paragraph 3 of Article 19, which shall enter into force from January 1, 2015;
      3) subparagraph 2) of paragraph 3 of Article 19, which shall enter into force from January 1, 2017.
      2. The words “control metering instruments” shall be considered as the words “measuring instruments ensuring accounting of oil products” till January 1, 2015 in subparagraph 26) of Article 1 of this Law.
      3. The words “identification number” shall be considered as “tax registration number” till 1 January, 2013 in the part two of paragraph 3 of Article 16 of this Law.
      4. The Law of the Republic of Kazakhstan dated April 7, 2003 “On state regulation of manufacturing and turnover of oil products” (The Bulletin of the Parliament of the Republic of Kazakhstan, 2003, No. 6, Article 33; 2004, No. 23, Article 142; 2006, No. 15, Article 95; No. 24, Article 148; 2007, No. 19, Article 148; 2010, No. 20-21, Article 119; No. 22, Article 128) shall be declared to be no longer in force.
      Footnote.Article 26 as amended by the Law of the Republic of Kazakhstan dated 12.01.2012 No. 538-IV (shall be enforced from 01.01.2012).

      The President of
      the Republic of Kazakhstan                 N. Nazarbayev