Simplified rules on reimbursement of expenses to Kazakhstan's exporters will come into force on October 3

Simplified rules on reimbursement of expenses to Kazakhstan's exporters will come into force on October 3

In order to expand and increase the share of non-primary exports of the country, the Ministry of trade and integration of the Republic of Kazakhstan has made a number of amendments to the current rules on reimbursement of expenses of subjects of industrial and innovative activities for the promotion of domestic processed goods.

According to the press service of the Ministry of trade, the rules were actively discussed and worked out together with business throughout this year. And it is taking into account the proposals of entrepreneurs that the procedure for providing support has been significantly improved.

The new rules have optimized the package of documents, introduced new types of costs, updated the list of reimbursable goods, provided for gradation of compensation limits depending on the level of product conversion, as well as counter-obligations of enterprises when receiving reimbursement for costs.

For example, there is no need to provide a waybill, various references, photos, and other documents.

Traders and distributors, as well as agricultural production cooperatives that export processed goods, will now be able to recover some of the costs.

Expenses incurred to pay for the rental of retail shelves in foreign markets are also subject to compensation.

In addition, part of the costs incurred for participation in foreign forums, competitions and congresses, transportation of goods by own vehicles, and delivery of test samples of products for certification are also subject to reimbursement. Part of the costs associated with the procedures for obtaining permission to use objects of exclusive rights (franchising) abroad, with passing foreign certification, accreditation, and inspection will be reimbursed.

The list of documents provided for reimbursement of part of the costs includes a document confirming the status of a domestic manufacturer. Such documents can be: industrial certificate, Declaration of conformity, certificate of origin, veterinary certificate, etc.

For standardization, the limit for reimbursement of part of the cost of delivery of goods has been changed to 75,000 MCI instead of the previously specified 1/50 of the amount of allocated funds for the current financial year. Thus, the amount of guaranteed compensation will no longer depend on budgeting.

The new rules also regulate issues related to counter-obligations of enterprises.

In addition, applications from businesses will now be accepted only in electronic form, which will save time and eliminate additional postage costs for applicants.

 

"The main task of the tool is to support and encourage export - oriented producers. This gives them the opportunity to increase the volume and range of the export basket, and expand the geography of countries. Enter both the EAEU market and the markets of third countries, establish the production of new types of goods. Today, we work closely with several hundred exporters. However, we should not forget that these are budgetary funds and the state is responsible for their effective use together with business," the press service of the Ministry of trade also noted.

"Companies that have received approval for cost recovery mainly export to neighboring countries: Russia, Uzbekistan, Kyrgyzstan, Tajikistan, and China. As well as to Switzerland, Bangladesh, Ireland, and Bahrain. In addition, it will be much easier to enter new markets in Africa, the Middle East, Southeast Asia, the United States, and others by reimbursing costs.

All these measures of state support allow enterprises to be more efficient and competitive in trade, as well as increase domestic production and export revenue. And thus, by increasing tax deductions, give a positive impetus to the development of the national economy, the growth of the welfare of Kazakhstanis, and the implementation of social programs," said Aidar Kakimzhanov, Deputy Chairman of the Board of JSC "Kazakhstan center for industry and export "QazIndustry".

 

The new rules come into effect on October 3, 2020.

 

Applications are accepted by the operator of the Ministry of trade and integration of the Republic of Kazakhstan - JSC "Kazakhstan center for industry and export "QazIndustry" online, via the web portal: www.export.gov.kz.

 

Phone numbers for inquiries: 8(7172) 79-33-97 (internal: 444).