Why is it worth importing to Kazakhstan in 2019?
The Republic of Kazakhstan is the largest economy in Central Asia generally based on mining and agriculture. The average annual GDP growth of 10-12% is determined by the increasing mining volume and cost of minerals such as uranium, oil, and gas.
The country foreign trade is really fast growing with the turnover increase about 20% annually. Thus, the import to Kazakhstan is becoming more and more important for its trade partners.
Whom does Kazakhstan trade with?
Kazakhstan is a participant of the Customs Union – the agreement which was concluded by the members of the Eurasian Economic Union in 2014 and abolished the customs duties. Among the other members of the Union are Armenia, Kyrgyzstan, Belarus and Russia. Thus, the trade relationship between Kazakhstan and these countries becomes closer every year.
Kazakhstan also trades actively with the CIS countries, the EU, India, Turkey, the UAE, Malaysia, China, Indonesia, Vietnam, Qatar, Egypt, Israel, Singapore, Japan, South Korea and etc. But the most important strategic trade partners for the country are Russia, China and Germany.
In contrast to the other countries of Central Asia, despite the mining basis of the economy, Kazakhstan has a positive balance of payments: the country export exceeds imports by approximately 40%.
What is imported?
The products in high demand are the following:
- 22% – engineering (transport, machinery and other equipment such as nuclear reactors, boilers, electrical equipment, cars)
- 16% – mineral products (fuel)
- 15% – metals and metal products
- 12% – food
- 5% – wood and paper products
- 3% – light industry (clothes, shoes)
- 2% – chemical industry
Let’s look through the key aspects of import to Kazakhstan.
Among the states, participating in the Eurasian Economic Union, the uniform requirements for the import documents have been established. The following documents will be required:
- The contract on the basis of which the import of goods to Kazakhstan is carried out.
- Application for export of goods and payment of VAT for import by the buyer.
- Transport documentation.
- Other documentation required by law.
The rules are practically the same from import from any country. It is necessary to prepare documentation carefully while importing goods to Kazakhstan. A contract concluded with a foreign supplier is required. Imported products are controlled quite seriously, so all the necessary certificates are required. You also need the correct transport documents. Depending on the country of origin, it is necessary to take into account the issues of taxation.
What is prohibited for import?
In some cases, it should be clarified whether there is a ban on the import of a product to Kazakhstan. For example, there can be some temporary restrictions due to the detection of unsafe products, or the embargo because of the political debates with some countries.
According to the customs legislation, it is prohibited to import the following goods into the territory of the Republic of Kazakhstan:
- gold, precious stones, rare minerals
- weapons and ammunition
- printed, audio and video products that contradict religious norms and are aimed at undermining the state foundations and discrediting the authorities, propaganda of war and violence
- soil and plants with soil
- products under quarantine
- rare animals and game birds
It is not allowed to carry products without factory packaging. With a special permit, certain weapons or other items from this list may be carried if it is related to the activities of research, military and state institutions.
Sometimes there may be temporary restrictions related to the sanctions policy, the insecurity of some goods, the spread of infections. Items prohibited by law must be seized at customs, the offender must undergo a long procedure of explanation with law enforcement services. Administrative or criminal liability is provided for the transportation of prohibited goods.