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“The experience of the Republic of Kazakhstan with promotion of export of agricultural products” Astana, 2016 For preliminary discussion

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Page 1: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

“The experience of the Republic of Kazakhstan with promotion of export

of agricultural products”

Astana, 2016

For preliminary discussion

Page 2: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Plan of the presentation TALAP center of appliedresearch

центр прикладных исследований

Exports of agricultural products of the Republic of Kazakhstan in the dynamics for the period of 2010-2015. The export potential of the Republic of Kazakhstan Exports of agricultural products of Kazakhstan - Russia case (including

the problematic issues)

Exports of agricultural products of Kazakhstan - China case (including

investment projects)

The main organizations of Kazakhstan on export promotion:

JSC "NC “Prodcorporatsia”

JSC “KazExportGarant”

JSC National Agency for Export and Investments « KAZNEX INVEST »

   

Page 3: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Export capacity of agricultural products - Analytics TALAP center of appliedresearch

центр прикладных исследований

3Sources: Statistical Committee of the MNE RK

Export of agricultural products of Kazakhstan, mln.$

• During 2010-2015, exports of agricultural products practically did not change

• The physical volume of agricultural exports decreased by about 14%

• Devaluation of the tenge in 2014 and 2015 did not help export of agricultural products.

Structure of agricultural products export in 2015• In 2015, wheat comprised 61% of

exports of agricultural products. • Linen comprised 10% of exports of

agricultural products, barley - 9%• Plants/crops production comprise

the basis of agricultural export• Exports of beef amounted to only 6

million. $, Or 1.8 tons

Page 4: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Republic Kazakhstan – Export capacityI. TALAP center of applied

researchцентр прикладных

исследований

The peak of development of the industry was in 2010, and about 980 mills operated at that time. The total processing capacity reached 11-12 million tons of grain per year. Since then, the number of operating mills was reduced to 350, but the total capacity has not changed.In connection with the reduction of exports of flour, grain purchase decreased to 4.8 mln. tons per year.This volume corresponds to the volume that is exported annually.

In 2007, Kazakhstan took the first place in the world for flour exports with the volume of 1 million. 454 thousand tons, ahead of Turkey and the European Union.Volumes continued to grow, reaching a peak of 2 million 296.7 thousand tons in 2010... But then it began to decline, and by the end of 2015 flour exports totaled just over 1.8 mln. tons.

The decline in exports was due to the fact that the country began to use state support measures focused on the internal processing. 1. Uzbekistan introduced excise duty on imported flour at a rate of 15%. A few years later, in 2014, the fee was

reduced to 11%. But then it increased the import duty on pasta products from 15 to 30%. 2. This creates the conditions for the export of Kazakh grain, not flour. 2. In Tajikistan: the importer pays VAT on

flour after entry at a rate of 18%, and grain - 10%. It creates conditions for export of the Kazakhstan grain, as opposed to flour. 

3. Kyrgyzstan abolished the VAT on imported wheat, which creates conditions for the development of its own milling activities.

Page 5: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Republic Kazakhstan – Export capacity TALAP center of appliedresearch

центр прикладных исследований

In 2007 Kazakhstan exported to Uzbekistan 157 thousand tons of grain and 732 thousand tons of flour.

In2015 1 million 405 thousand tons of grain and 818 thousand tons of flour were exported.

At the end of the first half of 2016 Kazakhstan has exported about 1 million tons of flour. The main recipients were Uzbekistan, Tajikistan, Afghanistan, Kyrgyzstan, Turkmenistan.

Small amounts occasionally are shipped to China. If this this rate is observed, the annual export volume may reach 2 million tons.The volume of exports of agricultural products from Kazakhstan to the EU amounted to 219.8 million US dollars.

Uzbekistan was the main buyer of the Kazakh flour, comprising 75% of the export market: in  2011 three of four export wagons were having the destination to this country. After Uzbekistan started actively developing its own milling sector, export of grain from Kazakhstan increased, while export of flour dropped.

Page 6: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Exports of agricultural products of Kazakhstan - Russia case TALAP center of appliedresearch

центр прикладных исследований

Currently, within the framework of Cattle meat export capacity development Program, high quality marbled beef is produced for export. Russian is considered to be the nearest market

Indicators: exports to Russia of 60 tons of beef in 2016 and 108 tons in 2020.

На сегодняшний день количество скотомест составляет 180 тыс. голов. To date 2200 farms with 270 thousand heads of cattle have been established

More than 200 reproduction facilities were available due to importation of 35 thousand heads of highly productive breeding livestock of meat breeds (Angus, Hereford) from the leading countries of beef cattle husbandry (Australia, Canada, USA).

Today the number of cattle stalled in stalls is 180 thousand heads.

Page 7: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Астана 2013 г.

Name Total 2011 2012 2013 2014 2015

Establishing reproduction facilities with import of cattle, thousand heads

70,0 10,0 12,0 14,0 16,0 18,0

Crediting farms, thousand heads 224,0 40,0 42,0 42,0 50,0 50,0

Establishing feedlots, thousand fattening stalls/boxes 137,9 17,5 20,0 30,4 35,0 35,0

ESTABLISHING REPRODUCTION BREEDING

FACILITIESDEVELOPMENT OF

COMMODITY FARMS ESTABLISHING FEEDLOTS

Page 8: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Russia case: problematic issues, part 1 TALAP center of appliedresearch

центр прикладных исследований

For example, Rosselkhoznadzor imposes restrictions in the event of an outbreak of disease, and the restrictions are imposed fully on the entire territory of Kazakhstan without taking regionalization into account.

In such cases, the Ministry of Agriculture, in an expeditious manner conducts talks with their Russian counterparts to lift the restrictions.

At the same time, according to the recommendations of the OIE Terrestrial Animal Health Code for each type of the disease it is necessary to apply adequate veterinary measures to prevent the spread of the disease in accordance with the risk assessment.

This issue was discussed at a meeting of Prime Ministers of Kazakhstan and Russia in Sochi in August of this year that the veterinary services need to sign a cooperation agreement, where all these issues about the introduction / removal of restrictions will be reflected.

Kazakhstan's business ran into problems, such as the restriction of importation / exportation because of an epizootic, and differences in the requirements of technical regulations and standards.

Page 9: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Russia case: problematic issues, part 2 TALAP center of appliedresearch

центр прикладных исследований

Kazakhstan has a Unified automated control system in the AIC (EASU), in which there are several modules, including on veterinary medicine (identification, authorization, issuance of permits, acts, veterinary certificates and

certificates).

VETIS system operates in Russia (with a variety of modules such as Argus and Mercury). Currently, a long-term project for the integration of our two systems.

To date, the export of Kazakhstan production is realized through the use of modules EASU / ARGUS for the issuance of veterinary accompanying documents (abstracts and certificates), both on paper and in electronic form. In this case the veterinary accompanying document which had been issued on paper is not valid in the absence of an electronic document.

Thus the Russian services have access to the module EASU / ARGUS and can quickly check information about the controlled products in the 36 checkpoints for products subject to veterinary control.

The situation for the implementation of a traceability system. Kazakhstan joined the WTO, but there are different veterinary certificates for 13 types of controlled products, as well as low-risk products (gelatin, ready dairy products).

Page 10: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Exports of agricultural products of Kazakhstan - Russia case TALAP center of appliedresearch

центр прикладных исследований

Map of location of points for preliminary notification about products subject to veterinary control and surveilance

WKR

● Aktau

● NKR●

Kokshetau

Astana

Karaganda

● Kyzylorda

● Taraz● Almaty

EKR

● Pavlodar

● Taldykorgan

● Kostanai

Atyrau

Ilek

Orda

Volgogradskaya

Mashtakovo

SarachinOrsk

Aktobe

ZverinogolovskayaVoskresenovskaya

Nokolaevka

Bugristoye

Orenburgskaya

Mariinsky

JanaJol

Yeltsovo

Russko-PolianskyKarasuksky

Rubtsovsky

Кулундин-ский

Cherlaksky

Altaisky

11

Sekseuldy

Saryshagan

Aiak

Karagaily

Акку

Alakay

Page 11: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Russia case: problematic issues, part 3 TALAP center of appliedresearch

центр прикладных исследований

Also, there are serious difficulties in the usual (regular) administration.For example, to obtain TS veterinary certificate at least a month (and a listing, etc.) is required, in practice - 1.5 months. During this period, agricultural products deteriorate. All this leads to the fact that people try to export products without documents. In case of detection of such products, the Russians seize and / or destroy the product.In comparison, only one week is required to export agricultural products to other countries.

About the course of development and coordination of Procedure (methodology) of transfer pricing for cotton fiber.

Because of wrong choice of pricing information source and imperfections of calculation method (regarding supply of

cotton to the CIS countries, South-East Asia prices were used), tax inspectors (CGD RK) were charging multimillion-dollar fines on non-existent profits. This situation continued for three years against the companies involved in

cotton exports to Russia. This led to the bankruptcy of entrepreneurs and worsened the investment climate in the cotton industry. In addition, the development of the Procedure was delayed by tax authorities, and as a result Procedure was amended only in accordance with the requirements of CGD MF RK.It is worth noting that due to unreasonable additional charges as a result of tax audits, there was an outflow of investments from the cotton industry and cotton production declined by 30%. As a result, the Rules (methods ) of cotton fiber pricing was approved by the Resolution of the Government of the Republic of Kazakhstan as of April 29, 2016 № 255.

Page 12: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

Export of agricultural products of Kazakhstan – China case TALAP center of appliedresearch

центр прикладных исследований

Between the Republic of Kazakhstan and China an agreement on long-term deliveries of Kazakh agricultural products to the Chinese market was signed. Kazakhstan will supply wheat, confectionery and animal products to China. In total, more than 50 agreements were signed between Kazakhstan and China.

Currently, Kazakhstan is implementing, together with China, 19 projects in the field of agriculture in the amount of 1 billion 735 million USD. Of these, 12 - are located in the East Kazakhstan and Almaty regions, which is convenient in terms of logistics, having the mutual Kazakh-Chinese border.

There is an initial agreement for 500 thousand tons, and in the near future the volume will be increased to 1 mln. tons of wheat.

In addition, Kazakhstan is allowed to combine the two stages - assessment of the system for monitoring food safety and inspection of specific companies, on the basis of inspection results, a part of the domestic enterprises will be allowed to supply products to China.

Page 13: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

China case: investment projects TALAP center of appliedresearch

центр прикладных исследований

Rifa Holding Group plans to invest in the construction of the slaughterhouse in the East Kazakhstan region with an annual capacity of 17 thousand tons of mutton and beef, and in construction of feedlots for 50 thousand heads for simultaneous fattening of small ruminants (sheep) and 1000 heads of cattle. 80% of the company's products will be focused on exports to China. The total project cost is estimated at 7.9 billion tenge (about $ 20 million). Share of the company Rifa Holding Group in the project will amount to 49%.

Chinese industrial group AIJIU jointly with Total Impex LLP in North Kazakhstan region implement the investment project on deep processing of oilseeds and grains, with the project cost of $ 58 million. Plant design capacity per year is 80 th. tons of vegetable oil, 200 thousand tons of flour, 200 thousand tons of feed.

COFCO State Corporation intends to work "Eurasia Agroholding" to invest in projects to create a cluster of tomatoes growing and tomato paste production in Kyzylorda, East Kazakhstan and West Kazakhstan regions – the cost of projects amounts to over than $ 80 million with the area under cultivation of tomatoes and production of tomato product. Through the joint implementation of projects it is planned to increase tomato production by 120 thousand tons.

The Hong Kong Financial Group Oriental Patron, together with a partner CPM intends to invest in the development of the Kazakh company “KazExportAtstyk (KEA)" to work together for the development of Kazakhstan deep processing of agricultural products for their further forwarding to the Chinese market. The total investment will be about $ 500 million.

Page 14: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

The main organizations of Kazakhstan on export promotion. TALAP center of appliedresearch

центр прикладных исследований

Page 15: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC «NC «Prodcorporatsia» - Mission and activities TALAP center of appliedresearch

центр прикладных исследований

1.     Procurement of grain through the spring-summer financing JSC "NC Food Corporation" (Corp.) carries out procurement of grain through the spring-summer financing of agricultural producers (SSFAP), including: resources through the spring and summer financing under the guarantees of the second tier banks of Kazakhstan

(STB procurement of grain for state); forward procurement of wheat and barley through the spring and summer financing under the guarantees of STB or

socio-entrepreneurial corporations (SEC)..

2.   Direct purchase of grain in the postpaid deliveryThe Corporation carries out direct purchase of grain in the postpaid delivery from agribusiness entities, including: the direct purchase of grain for the state resources annually to refresh the state reserve of food grains; закуп зерна в коммерческие ресурсы по мере необходимости. procurement of grain into commercial resources as needed.

Mission of the CorporationThe State Operator in the grain market.

Strategic component 1Participation in ensuring food security in the country.

Strategic component 2Development of export of Kazakhstan’s grain.

Strategic component 3Improvement of corporate governance and raising the efficiency

of assets management of the Corporation.

Page 16: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC «NC «Prodcorporatsia» - Activities TALAP center of appliedresearch

центр прикладных исследований

1. Sales of grain in the domestic marketSales of grain in the domestic market by the JSC NC Prodcorporatsia (the Corporation) I implemented exclusively through anonymous bids at the commodity stock trading.Since 2013, the Corporation has been actively promoting the sale of grain by means of the use of the most advanced exchange trading tools such as Dual counter anonymous auction.The shipment of grain is carried out under the terms of EXW (ex-elevator) with HSP, authorized by the Corporation to the storage of grain of public resources and commercial resources of the Corporation.  2. Sales of grain for exportCorporation implements sales of grain for export, including:   Shipments of grain from commercial resources in the course of commercial activities;   Humanitarian shipments of grain from the state realizable resources under intergovernmental agreements in the

execution of an agent function for the management of public resources of grain.

Page 17: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC «NC «Prodcorporatsia» - International cooperation TALAP center of appliedresearch

центр прикладных исследований

The Corporation promotes the development of export capacity of Kazakhstan grain and is involved in the following: expansion of infrastructure for storage and grain exports. development of new markets, including to China, South-East Asia and the Persian Gulf. work of the bilateral intergovernmental commissions on cooperation with foreign countries. there are two foreign offices of the Corporation which are functioning in the Russian Federation (Moscow) and the

People's Republic of China (Beijing), and also jointly controlled entities in Iran and Azerbaijan. stays in  contact with government agencies under the Governments of the major countries- importers of Kazakhstan

grain, such as: Agency for State Material Reserves of the Republic of Tajikistan, the Fund of State Material Reserves of the Kyrgyz Republic, the Government Trading Corporation of Iran (the GTC), the Chinese National Company "Corporation KOFKO" (KOFKO), United grain company of the Russian Federation (UGC) and others.

Page 18: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC «NC «Prodcorporatsia» - Grain shiftment TALAP center of appliedresearch

центр прикладных исследований

Representative of cargo owner

(code)

Agreed for shiftment (transshipment) of

grain, including

Grain quantity

Available volumes of

grain at terminal as

at the current date

(tons)

At the terminal

On the way to the terminal

Shipped from elevators

wagons tons wagons tons wagons tons wagons tons

LTD «Caspian Logistic Solutions LTD» (131)

795 47700 0 0 13 829 61 3871 17800

LTD «МТО «Caspian Cargo Services» (126)

591 35452 0 0 0 0 0 0 0

TOTAL: 1386 83152 0 0 13 829 61 3871 17800

Information on grain shiftment as at 13.10.2016

Page 19: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC «NC «Prodcorporatsia» - «Success stories» TALAP center of appliedresearch

центр прикладных исследований

In the period 2006-2010, JSC NC Food Corporation has implemented a number of investment projects aimed at development of the Kazakhstan grain export transport infrastructure, including:

- Construction and equipping of a grain terminal in the port of Baku (Azerbaijan).In 2006, at the seaport of Baku together with the Azerbaijani partner –the company «Planet-L» the project was implemented for the construction of a grain terminal with a transshipment capacity of up to 350 thousand tons of grain per year, and capacity for simultaneous storage of 15 thousand tons of grain.

- Construction of the mill complex in the port of Baku (Azerbaijan).In 2009, a mill complex with production capacity of 150 tons of flour per day was built and put into operation..

- "Increasing the capacity of the grain terminal in the Aktau port."As a result of the reconstruction of the grain terminal throughput capacity was increased to 600 thousand tons of grain per year, and one-time storage capacity increased to 22.5 thousand tons of grain.

- "Construction and equipping of a grain terminal in the port of Amirabad (Iran)."

In 2008, a project to build a grain terminal with capacity of shiftment 700 tons of grain per year, and capacity for simultaneous storage of 53 thousand tons of grain was implemented at the seaport Amirabad (Iran) in collaboration with the Iranian partner - "Behdis Tedzherat Alborz".

Page 20: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC «KazExportGarant» – Mission and activities TALAP center of appliedresearch

центр прикладных исследований

JSC "Export Credit Insurance Corporation" KazExportGarant "(hereinafter - KazExportGarant) - is

the only specialized insurance organization which is a development institution of the Republic of

Kazakhstan, which implements functions of the export credit agency.

KazExportGarant as part of its core business provides enterprises-exporters in the processing sector and

the banks of the second level its insurance protection against non-payment risk in trade transactions, and guarantees security of export

transactions.

For exportersInsurance of exporter’s loan

Support within the state program for accelerated industrial-innovative development of Kazakhstan (SPAIID): export and trade finance

For investorsInsurance of Kazakhstani investments abroad

For BanksTrade financing

Documentary Credit InsuranceInsurance of bank payment guaranteesInsurance of bank counter guarantee

ReinsuranceReinsurance in the sector “general insurance”

Reinsurance industry "general insurance"

Financial stability of KazExportGarant was confirmed by the international rating agency «Moody's Investors Service», which

assigned to KazExportGarant international rating of "Baa3" financial stability, which corresponds to the sovereign rating of the

Republic of Kazakhstan.

Page 21: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC «KazExportGarant»– «Success stories» TALAP center of appliedresearch

центр прикладных исследований

During the period of 2004 KazExportGarant supported more than 400 Kazakhstani export oriented enterprises, where insurance coverage was

provided for exports to the CIS countries such as Russia, Tajikistan, Kyrgyzstan, Uzbekistan, Turkmenistan.

Also it insured export of Kazakhstani goods to such countries as Italy, Germany, Lithuania, Latvia, China, the USA, Switzerland, Poland, the United Arab Emirates, India, Ukraine, Belarus, Turkey, Afghanistan

and Mongolia. The insured investments were directed to Turkey, Iran and Turkmenistan.

In addition, for the period of implementation of the state program "Export trade finance" from 2010 KazExportGarant supported 183 export shipments

worth more than 8.2 bln. tenge of such non-oil sectors of the domestic economy as mechanical engineering, food and chemical industry, building

materials.In addition, KazExportGarant is actively developing international cooperation

in connection with which cooperation agreements with the largest foreign export credit agencies were signed.

Page 22: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC The National Agency on export and investments «KAZNEX INVEST» - Mission and activities TALAP center of applied

researchцентр прикладных

исследований

MissionActive assistance to the effective functioning of the national system of development and promotion of domestic

non-oil exports and attraction of foreign direct investments in priority sectors of the economy.

Areas of activities: Export; Investments; FEZs

Page 23: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC "National Agency for Export and Investments« KAZNEX INVEST »- Services TALAP center of applied

researchцентр прикладных

исследований

Export development Publication of a directory "Export products of Kazakhstan"

  Publication of a directory "Export Guide"   Publication of a guidance materials "To help the exporter"

  Training on entrepreneurial export activities Organization of study tours for the Kazakhstan enterprises-producers abroad

Reimbursement of costs of industrial-innovative activities Formation of the ideology of "export orientation"

  Development of packaging for the Kazakh goods for export 

Export promotion Organization of trade missions to foreign countries

 Organization of participation of Kazakh enterprises in foreign specialized exhibitions  Promotion of trademarks in foreign markets

 Presentation of the export potential of Kazakhstan producers  Promotion of Kazakh products to the market of humanitarian procurements  The national online information resource for exporters and foreign buyers

 Defining sales markets (brief analysis)  Country reviews

 Analysis of trends in world trade and foreign trade of the Republic of Kazakhstan Analysis of trends in the world trade and external trade of the Republic Kazakhstan

Page 24: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC "National Agency for Export and Investments« KAZNEX INVEST » - Activities TALAP center of applied

researchцентр прикладных

исследований

the costs of 29 applications of subjects of industrial and innovative activities were reimbursed in the amount of 180 mln. tenge. 33 subjects of industrial and innovative activity were denied costs reimbursement in the amount of 69.6 million tenge due to the lack of additional funding.

7 trade missions to the Republic of Armenia, the Republic of Tajikistan, Kyrgyz Republic, Republic of Belarus, the Republic of Uzbekistan, the Russian Federation, the Republic of Azerbaijan were performed.

client base includes 1,792 companies, including 490 "active exporters." 41 newsletters addressed to Kazakh companies were e-mailed/sent. 55 requests from foreign buyers were processed three study tours to Turkey were  organized and conducted. 507 materials published/broadcasted in Kazakhstan print media, television, news agencies and online

publications. participation of 37 Kazakh companies in 22 international specialized exhibitions was organized. 5 national stands of RK were organized;  13 advertising and promotional activities on presentation of 78 trademarks of 65 domestic enterprises were

organized and carried out for potential buyers.

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JSC "National Agency for Export and Investments« KAZNEX INVEST » - Activities TALAP center of applied

researchцентр прикладных

исследований

At the moment, there is poor interaction with the main channels of attraction of investments: embassies, trade missions, as well as national companies (quasi-public sector), etc. Thus, the system of work with investors is decentralized and KAZNEX INVEST does not perform the function of "one" window.

In 2015 it was planned to open 8 foreign representations. For this purpose budgetary funds (about 1 bln.) were allocated, But to date, these offices have not been established. Several representatives work in the PRC, Novosibirsk, their effectiveness could not be assessed because there is no necessary information.

On 11-13 April 2016 the official opening of the representative office of JSC «Kaznex Invest» was opened in Novosibirsk within the framework of the trade mission. So far there is no information about the ongoing work.

 At present, even in Astana there is no front office, which could be visited by foreign investors and buyers. For comparison, the Russian export center has a representative office in Astana (14 Beybitshilik str., Business

Centre «Marden») and is actively working with the Kazakh business.

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JSC "National Agency for Export and Investments« KAZNEX INVEST » - Costs reimbursement TALAP center of applied

researchцентр прикладных

исследований

Support is provided by way of reimbursement of 50% of costs to subjects of industrial-innovative activities. Costs are reimbursed without VAT.  

Types of costs subject to reimbursement: costs associated with advertising domestic products abroad

costs of direct participation in international exhibitions, fairs, festivals development and publication of the catalog

running costs of the representation office, point of sale, and a warehouse abroad  the costs of the procedures associated with registration of trademarks and products abroad

  the costs of the procedures associated with certification of products abroad

Page 27: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC "National Agency for Export and Investments« KAZNEX INVEST » - scheme of costs reimbursement TALAP center of applied

researchцентр прикладных

исследований

The National Institute during ten working days in case of absence comments shall

prepare the executive summary of the application for reimbursement of a part of the

costs and forwards the application to the Working Group.

In case of failure to present documents, appropriate notification shall be sent within

fifteen working days. If before the completion of the deadline for receiving applications the comments are not eliminated, the subject is

notified of the rejection of the application

A working group consisting of the representatives of the authorized body and the National Institute shall be established for

check up of the submitted applications.

Applications are accepted by:1. The National Institute of Development and Export

Promotion2. Business Service CentreЗаявки принимают

Applications of subjects of allowed industrial innovation activities are accepted for consideration

50% are refundable without VAT

On the basis of the application and the executive summary the Working Group within ten

working days reviews the documents attached to the application and makes a decision

Requirements to applicants and the list of required documents were specified by the Order of the Minister for Investment and Development of the

Republic of Kazakhstan dated November 30, 2015 №1128.  

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JSC "National Agency for Export and Investments« KAZNEX INVEST » - Scheme for costs reimbursement (continuation) TALAP center of applied

researchцентр прикладных

исследований

The authorized body within ten working days from the date of the decision concludes an agreement with

the subject for the transfer of funds, drawn up in accordance with the model agreement on the

reimbursement of a part of the costs.

In the case if it is established that the amount of the envisaged reimbursement exceeds the size of the sums, budgeted for these purposes in the republican

budget for the current financial year, the applications which had been received the first shall be treated

as the priority.

The Commission considers the summary of the application and conclusion of the working group. The Commission shall meet at least once in a quarter

since the beginning of receiving the applications.

The Commission makes recommendations for reimbursement of the costs and within seven working days after the issuance of recommendations forwards

them to the authorized body for decision-making

Page 29: Oshakbaev - The experience of the Republic of Kazakhstan in promotion of export of agricultural products (en)

JSC "National Agency for Export and Investments« KAZNEX INVEST » - Scheme for costs reimbursement (continuation) TALAP center of applied

researchцентр прикладных

исследований

For consideration are allowed applications of the subjects of industrial and innovative activities

producing domestic processed goods:1) Products on the level of 6 and over digits of ЕТТ

TNVED EAEC, included in the list;2)costs of promotion own product, which incurred not earlier than two years prior to the publication of

the announcement of acceptance of the applications.

An application shall be filled out based on the form and all documents affixed with a seal shall be attached to it as follows:

1) Copy of the certificate or an abstract of state registration/re-registration;

2) a copy of the contract for performing works / services, costs of payment for which are included in the application for their

reimbursement;3) copies of invoices, certificates of the executed works / services,

payment orders confirming the fact of payment made by the subject of the works / services,

4) copies of documents confirming the origin of goods.

The following documents will also be submitted in addition: 1) original catalogs, newspapers, magazines and the like with domestic products with advertising, video-

versions and audio versions of TV commercials and video broadcasts; 2) photo reports on participation in international exhibitions, fairs, festivals, original copies of handouts, the original certificate and a copy of the supporting travel and accommodation documents, confirming the flight and accommodation of employees participating in these exhibitions; 3) the original catalogue, the original certificate signed by the first head; 4) copies of documents confirming funding of representation, as well as pictures of trade outlet, with indication of the place and date of the recording;5) copies of registration documents;6) copies of documents confirming the passage of certification.

Requirements to the documents of the applicant, applying for reimbursement of costs.