Trade facilitation in the Kyrgyz Republic

Ministry of Economy of the Kyrgyz Republic

State authorities in the field of trade

Ministry of Economy is the main authorized state body for policy formulation:- In the sphere of foreign and domestic trade, including the sphere of the development of measures for trade facilitation;- In the sphere of technical regulation (certification, technical regulations);- In the sphere of business development;- In the sphere of fiscal and customs policy.

In these spheres Ministry of Economy cooperates with the profile ministries and agencies: Ministry of Agriculture, Ministry of Industry, Ministry of Transport, State Customs Service and others.

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Liberalization of trade regime

The Kyrgyz Republic applies the followingtrade regimes:

free trade regime (duty-free) with CIS countries

the most favoured nation regime (according to WTO obligations) with WTO countries

preferential regime (duty-free) with the least developed countries

free trade regime (duty-free) with EEU countries

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The Eurasian Economic Union12 August 2015 Kyrgyzstan became a full member of the CustomsUnion of the Eurasian economic Union.

The entry into the EAEU forKyrgyzstan:opens new perspectives;removed barriers in the freemovement of goods, services, capitalаnd workforce;opens new investment opportunitiesand prospects of implementation of largeinfrastructure projects, primarily in the areas of energy, transport andagriculture

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The National Council on Trade and Transport Facilitation of the Kyrgyz Republic

In order to facilitate trade and transport in 2008 theNational Council of the Kyrgyz Republic was established.

The NC is a collegial body that coordinates the activitiesof ministries, state committees, administrative departments andother executive bodies to simplify export and import proceduresand project implementation of the principle of "single window"in the foreign trade of the Kyrgyz Republic.

Chairman of the National Council is Minister of Economyof the Kyrgyz Republic.

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The main tasks of the National Council:

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NC• assistance in the development of a uniform state policy on the

regulation of procedures of trade (export, import) and transport in the Kyrgyz Republic

NC• coordination of the activities of state bodies on the issues

related to the procedures of trade (exports and imports), and transport;

NC• facilitating the implementation of the project of SW and

overall control of the implementation and execution of the project of SW

NC

• elaboration of recommendations on the introduction of the "single window" in the foreign trade, improvement of the activity of the SE "Center of SW" and further simplification of administrative procedures related to foreign trade operations, including reduction in the number of permissive documents

Structure of the National Council

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Minister of Economic Development and Trade – Chairman of the National Council Members of the National Council: Minister of Transport and Communications – Deputy Chairman of the NCChairman of the State Customs Committee – Deputy Chairman of the NCMinister of FinanceMinister of JusticeMinister of Healthcare Minister of Agriculture and Processing IndustryChairman of the Border Service State sector Director of the State Agency of Information Resources and Technologies Director of the National Institute of Standards and Metrology

President of the Chamber of Trade and Commerce Chairman of the Association of Transport Operators Chairman of the Association of Freight Forwarders Chairman of Board of the Association of Freight Forwarders Chairman of the International Road Transport Association Chairman of the Association of Customs Brokers Chairman of the Association of Markets, Trade and Service Enterprises President of the Union of Entrepreneurs Public President of the Union of Entrepreneurs President of the Association of Oil Traders Executive Director of the International Business Council

Representative of the Asian Development Bank in the KR Consultant of GIZ program International Manager of USAID in the KR

State

sector

Public

International Organiza

tions

The implementation of the provisions of the Bali Agreement on Trade Facilitation (WTO).

In 2013 in December, at the 9th Ministerial conference of theWorld Trade Organization, which was held on the island of Bali inIndonesia, the Agreement on simplification of procedures oftrade was accepted.

The Ministry of Economy of the KR together with the projectUSAID ATAR, and GIZ (German society for international cooperation)has carried out activities to introduce this Agreement to stateauthorities.

In July 2014 the USAID presented a Report on theassessment of the current state of compliance.

The purpose of the evaluation is to analyze the relevantprovisions of the Agreement according to the legislation norms of theKyrgyz Republic and the current practice.

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The implementation of the provisions of the Bali Agreement on Trade Facilitation WTO

According to the results of conformity Assessment of legislationand norms in the Kyrgyz Republic the following problems were revealed:

* only 11 of 41 rules of the WTO Agreement on trade facilitationcorrespond to the provisions of the Agreement.

*14 rules partially correspond to the provisions of theAgreement.

*11 rules do not correspond absolutely

Based on the findings of the analysis, the Ministry developednotification on the part of the agreement which has been alreadyimplemented in the KR and provisions of Category A has been sent tothe WTO 9

The implementation of the provisions of the Bali Agreement a Trade Facilitation (WTO).

In order to implement the Agreement on Trade FacilitationMinistry of Economy set up The interagency working group onTrade Facilitation, which began its work in 2015.

The interagency working group implements and promotereforms on the simplification of trade procedures.

Currently the interagency working group is workingon:development of the plan to determine conformity of the provisions ofthe Agreement the legislation of the Kyrgyz Republic;

formation of the responsibility on the specific measures for eachpublic authority and the necessary assistance in implementing therequirements of the agreement.

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The interagency working group on Trade Facilitation

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Deputy Minister - Chairman of the interagency working group Deputy chairman-Head of the Trade PolicyDeputy chairman- Head of the Department of the customs policy

Members of The interagency working group

Head of Department of tariff regulation and export controls of the ME of the KRHead of Customs Control and Clearance of the State Customs Service of the KRHead of Department for Trade Promotion and Development SE «Single window»The chief specialist of the Department on control of quarantine plants of the State inspection of sanitary and phytosanitary safety Head of Department of prevention of noninfectious diseases and state sanitary and epidemiological surveillance of the MH of the KRHead of sector of foreign trade of the ME of the KRHead of Department of coordination of technical regulations and standards of the ME of the KRHead of Department of international tax relations of the ME of the KRHead of sector of ensuring the uniformity of measurements of the ME of the KRHead of the sector on WTO issues of the ME of the KRDeputy head of Department of Customs Payments of the State Customs Service of the KR

Vice-President of The Chamber of CommerceThe Chairman of «The Association of customs brokers»Expert customs brokers AssociationHead of «The Secretariat of the National Alliance of Business Associations»The expert of «The National Alliance of Business Associations»The Expert of « The Analytical сenter Business Expert»Chief lawyer of «The Bishkek Business Сlub»Independent Expert

State sector

Public

Programs, projects in the field of trade facilitation"Single window" in foreign trade

The main reform to simplify tradefacilitation is the introduction ofsingle window (SW) in foreign trade.In 2009 State enterprise «Centre of singlewindow in foreign trade» under the Ministry ofEconomy of the Kyrgyz Republic was established.

The introduction of the principle of«Single window» in the Kyrgyz Republic iscarried out with support from ADB, GIZ, USAID.

11 state and private organizations involved in foreign trade regulationwere included in the project «single window».

So far, ISSW is implemented and carried out in 9 state agencies and 5private bodies.

In addition, with the aim of interaction to exchange informationbetween ISSW and the State customs service of the KR measures on ISSWintegration with unified automated information system (UAIS) are being carriedout . 12

Programs, projects in the field of trade facilitation

The Export Development Plan (EDP)In 2015 Plan of Government for export development for 2015-

2017 was adopted with technical support from ITC and GIZ .EDP is one of the priority objectives of the National sustainable

development strategy of the Kyrgyz Republic for the period of 2013-2017.In the plan for the development of exports, special attention is

paid to creation of conditions and support for small and mediumenterprises, development of the necessary capacity for the production ofexport products.In the EDP the following priority sectors with high export potential areidentified:1) tourism, 2) fruit and vegetable industry 3) textile-apparel sector, 4) bottled water 5) meat industry, 6) milk and dairy products; cross-cutting areas: 1) commercial finance, 2) trade facilitation, 3) quality management 4) trade information and promotion

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Programs, projects in the field of trade facilitation

With the support of GIZ the experts wereinvolved for:- status analysis of e-Commerce,- Development of necessary regulatory legal actsfor its development.

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E-CommerceIn accordance with the Plan of legislative work of the

Government of the Kyrgyz Republic in 2015, it was planned to developregulations on electronic Commerce.Currently work on the creation of the Interagency working group hasbegun .

Programs, projects in the field of trade facilitationGSP +

The Ministry of Economy of the KR initiated a draft decision of theGovernment on accession of the Kyrgyz Republic to the generalizedsystem of preferences (GSP+) with European Union (approved by theGovernment in 2015 No. 105-p)

The corresponding statement on the country's participation in the(GSP+) the EU has been directed to the EU .

In case of agreement of the EU the Kyrgyz Republic will beentitled to carry out duty-free importation of 7000 types of goods to theEU countries and Turkey. Basically it will be applied to agricultural goods.

Currently exporters pay customs duty at the rate of 14.6% on certaintypes of fruit and vegetables and up to 5 to 9% on items of clothing.

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Thank you for your attention!Aida Atageldieva

Specialist of Foreign Trade SectorTrade policy department

Ministry of Economy of the Kyrgyz Republic+996 312 62 05 35 (172)

+996 550 50 11 85

a.atageldieva@trade.kga.atageldieva@gmail.com