Explanation of changes in the rules for reimbursing costs to exporters

The cost recovery tool for exporters in the non-resource sector was first applied at the end of the 2nd quarter of 2019 under the Ministry of industry and infrastructure development. However, these rules had limitations in the coverage of business entities, as well as difficulties in processing documents.
During 2019-2020, the Ministry of trade and integration amended the rules for subsidizing exporters on October 16, 2019 (the 2nd set of cost recovery Rules was adopted).
This package includes the following changes:
- in terms of reimbursement of air and sea transport costs (previously, this type of cost was not included in the Rules);
- in terms of optimizing the list of requirements for documents linked to each type of reimbursable costs;
- in terms of increasing the amount of compensation for costs associated with the delivery of goods to 50% for all subjects, reimbursement of part of the costs associated with delivery to the final destination, expanding the list of domestic processed goods (defense industrial complex), optimizing documents confirming the origin of goods (certificates of the form ST-KZ, ST-1 and others with certificates of expertise).
Reference.
1st Package reimbursement of expenses of exporters - the "Rules of reimbursement of expenses for subjects of industrial-innovative activities for promotion of domestic processed goods, list of domestic processed goods, which are partially reimbursed the cost of their promotion" was adopted by order of the Minister of investments and development of Republic of Kazakhstan dated 30 November 2015 No. 1128. Registered with the Ministry of justice of the Republic of Kazakhstan on December 31, 2015 No. 12730.
2nd package of the Rules of reimbursement of expenses to exporters Ministry of Commerce subject to the requirements of relevant state bodies, as well as NCE "Atameken" as easy as possible reimbursement, as well as requirements of documents submitted for reimbursement.
Simplification of the Rules allowed to expand the coverage of subjects – from 50 subjects in the initial planning by the end of 2019, 139 subjects were covered, which reduced their transport costs by about 4 billion tenge. Thus, state support measures cover a third of existing exporters, which was the maximum need for the first year.
As a result, the geography of exports and the range of export products has been significantly expanded. For the first time, Kazakhstan's batteries were exported to Italy, and military products were exported to Bangladesh. This was made possible by reducing the cost of supplied products by 5-10%.
Regarding the undevelopment of 2 billion tenge by the end of 2019, provided for the payment of compensation for part of the costs of subjects of industrial and innovative activities for the promotion of domestic processed goods.
In 2019, 577 applications were received from 339 companies for the total estimated amount to be reimbursed in the amount of 9.7 billion tenge. At the same time, 73% of applications (421 units) were received in November-December after making changes to the Rules.
At the same time, non-development is caused by the following:
1) exporters are not manufacturers of goods (they are official / unofficial suppliers/ distributors of products of a particular manufacturer's company;
2) voluntary refusal of exporters to apply for these measures of state support;
3) restriction of export of certain socially significant food products. A separate part of the exporters ' requests was not supported (about 2.1 billion tenge) - for goods of low processing or having a raw material character (for example, grain, potatoes, onions).
To compensate exporters ' expenses in 2020.
As of June 9, 2020, the total number of applications received was 493 (from 244 entities) for the total amount expected to be reimbursed, 5,556. 4 million tenge.:
- 404 requests for costs related to the delivery of goods (5,305. 65 million tenge);
- 62 applications for product promotion (250.77 million tenge).
As a result of 5 meetings of the Ministry of internal Affairs, 81 applications from 45 companies were approved for a total amount of 859,372,796,02 tenge. Including:
- 74 requests for costs related to the delivery of goods (808 656 505.04 tenge);
- 9 requests for product promotion (50,716,290. 98 tenge).