Mirror statistics with Kyrgyzstan: 10 times difference

Over a year and a half (January 2019 – June 2020), 79,163 vehicles passed from Kyrgyzstan to Kazakhstan and Russia. (excluding transit under customs control).

According to the results of monitoring the process of moving goods across The state border, the state revenue Committee revealed the following:

For export control,

- 389 attempts to export goods included In the list of exemptions (administrative fines in the amount of 133 million tenge were imposed);

- 2,302 attempts to export goods subject to prohibitions and restrictions (petroleum products, medical masks, medical gloves, non-ferrous and ferrous metal scrap, timber, potatoes, flour, etc.);

- 181 facts of non-compliance with export control standards (chemicals, explosives, x-ray devices. There were also attempts to illegally export natural uranium - a criminal case was opened, ammunition for military-style weapons-without permission to transit products of the authorized body of the Republic of Kazakhstan in the field of export control);

For imported goods:

- 2,6 thousand facts of registration of shipping documents for fictitious recipients (not involved in the import and bankrupt);

- 6 thousand facts of false transit - this is 20% of the total flow of goods from the KYRGYZ Republic declared as transit. (the Russian Federation revealed 7.7 thousand facts).

Monitoring provided 2.6 thousand additional tax reports on VAT in the amount of 2.1 billion tenge.

Special attention is paid to the compliance of the goods with the information specified in the consignment notes. Of the 1,547 thematic tax inspections of vehicles coming from Kyrgyzstan, violations were detected in 1,505 cases (98%!!!).

The vast majority of violations are non-compliance of goods imported from Kyrgyzstan with the names specified in the consignment notes. In addition, the prices of goods produced in the People's Republic of China indicated by the consignment note are significantly lower than the prices of similar goods in our country. In some cases-up to 400 times. This leads to a shortage of value added tax (VAT)in the budget of the Republic of Kazakhstan and partner countries.

For example, Alex TRANS LLC declared transit to Russia in 2019. In the transport document for international transport, he indicated the cost of consumer goods in the amount of 19.8 tons per 2.2 million som. In comparison with the indicators of the customs value of Kazakhstan, prices for women's jeans are 400 times lower (0.04$ to 16$), for t-shirts 150 times (0.08$ to 12$), for sheepskin coats 400 times (0.1$ to 40$), for men's jeans 15 times (1.1$ to 17$), for women's and men's shoes 80 times (0.2$ to 16$).

Moreover, the same entrepreneur made a false transit 51 times. In other words, the goods remained on the territory of Kazakhstan, and taxes were not paid on them. The damage from this participant in foreign economic activity alone is estimated at 700 million tenge or 1.7 million us dollars.

As for the overall figures, the data on exports of the Kyrgyz REPUBLIC and imports of the Republic of Kazakhstan differ significantly: the figures of Kyrgyzstan are 10 times lower. According to their information, exports to Kazakhstan for 9 months of 2019 amounted to 18 billion tenge, and according to our data - 186 billion tenge. Given the facts of undervaluation and false transit, the discrepancies will be even greater.

Moreover, the volume of Chinese goods imported from Kyrgyzstan to Kazakhstan and Russia is 2 times higher than the volume of official imports to the Kyrgyz REPUBLIC from China. Last year, 75 thousand tons of goods were imported to Kyrgyzstan from China, and 149 thousand tons were exported (to the Republic of Kazakhstan and followed to the Russian Federation).

This situation in mutual trade damages the budget of the Republic of Kazakhstan and puts Kazakhstan's business in unequal competitive conditions.

While in accordance with Article 3 Of the Treaty on the eurasian economic union (EAEU), the main principles of the functioning of the EAEU are to ensure mutually beneficial cooperation, equality and consideration of the national interests of the parties, as well as compliance with the principles of market economy and fair competition.

During 2019-2020, there were repeated meetings at different levels, where the need for cooperation in reducing the shadow turnover of goods was discussed.

The interaction of competent authorities is important to prevent shadow import and false transit. Kazakhstan's fiscal authorities conduct online exchange of preliminary information from export declarations with the Republic of Uzbekistan. Since this year, also with the PRC. We are also working with other countries.

Proposals for cooperation were also sent to the Kyrgyz side. However, our requests to solve the problem remain unanswered.

In General, VAT receipts from the EEU countries increased by 1.2 times or by 122.0 billion tenge over the past year.