Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.

As part of its WTO accession in 2015, Kazakhstan agreed to lower 3,512 tariff rates gradually, to an average of 6.1 percent by 2020.  Tariffs on agricultural products will see the largest reduction, from 16.7 percent to an average of 7.6%.  In January 2016, Kazakhstan began applying lower tariff rates to certain food products, automobiles, airplanes, railway wagons, lumber, alcoholic beverages, pharmaceuticals, freezers, and jewelry.  Kazakhstan lowered additional tariff rates in 2017 and 2018, and a total of 2,900 tariff rates were below its 2015 tariffs as of December 1, 2018.

In 2018, Kazakhstan’s Most Favored Nation (MFN) applied tariff rate averaged 7.1 percent. Kazakhstan applies a zero percent rate on approximately 1,900 tariff lines, including livestock, pork, fish products, chemical and pharmaceutical products, cotton, textiles, machinery and equipment, medical vehicles, and some types of airplanes.  Kazakhstan’s simple average WTO bound tariff rate is 10.6 percent for agricultural products and 6.4 percent for non-agricultural products. Kazakhstan’s maximum WTO bound tariff rate for industrial products is 19 percent, but not less than 0.68 Euros per cubic centimeter (approximately USD0.77 per cubic centimeter), while its maximum WTO bound tariff rate for agricultural products is 50 percent, but not less than 0.75 Euros per kilo (approximately USD0.85 per kilo).

In 2010, Kazakhstan established tariff-rate quotas (TRQs) on imports of poultry and beef to meet its obligations under the Russia-Kazakhstan-Belarus Customs Union (CU), which have continued under the Eurasian Economic Union (EAEU). In 2012, U.S. exporters raised concerns about the trade-limiting effects of these TRQs and the manner in which they were calculated and allocated.  In October 2017, Kazakhstan developed new rules for TRQ allocation that establish clear deadlines and delineate authorities among government agencies. The volume of TRQs is expected to remain unchanged, however.  Pork is not subject to a TRQ, and the tariff rate on pork is expected to be lowered from the current 30 percent to 25 percent in 2020.
 

Taxes

In 2016, Kazakhstan introduced a system of electronic invoicing for all payers of the value added tax (VAT) on imports.  Since January 1, 2017, all importers and customs clearance brokers have to use the electronic invoicing system.

Kazakhstan charges a 12% value-added tax (VAT) which is paid on top of all customs duties and excise taxes at the time of customs clearance.  Importers are expected to declare and pay this tax within a month after shipment.  According to the EAEU and Kazakhstan’s new Customs Codes, effective January 1, 2018, some importers may obtain deferrals of up to one month for payment of the VAT.  Taxpayers need to have a VAT registration in Kazakhstan if their turnover during the calendar year exceeds USD 200,000.  Penalties for non-payment on VAT are up to 50% of turnover.  The country also provides a refund of import duties and taxes when the imported goods are processed in Kazakhstan and exported within two years after importation.  The processing operations that qualify for drawback include manufacturing and assembly operations and repairs.

Under the tax code that came into force in January 2018, local producers that operate under a special investment contract signed with the Government of Kazakhstan receive VAT exemptions on the import of raw materials and the sale of finished products.  Also, under the tax code, importers of alcohol products are required to pay an excise tax and post a security deposit prior to shipment. This requirement came into force in March 2018 and applies to imports from the EAEU and third countries. The measure unnecessarily ties capital in burdensome administrative procedures.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.