Exports to Kazakhstan

Поставки в Казахстан

In the context of globalization of the modern economy, an important factor in the development of Russia is the foreign economic activity of the regions. Effective organization of foreign economic activity of enterprises is impossible without taking into account special conditions.

Despite the fact that Kazakhstan is a strategic partner of Russia, it is, nevertheless, a different state, which means that the supply of goods to this country will cause difficulties for managers. In the larger case, this applies to cases where suppliers or manufacturers do not know how to conduct foreign trade operations.

Our company has rich experience in foreign economic activity, therefore we are well aware of all the nuances associated with the export and import of goods.

Using the example of export of goods to the Republic of Kazakhstan, the regulatory and institutional conditions for organizing export activities were identified and investigated. The analysis of the legislation of the Republic of Kazakhstan regulating the supply of goods to the territory of this country using the delivery conditions of Incoterms 2010 is carried out. A comparative analysis of the transportation of goods on the basis of Incoterms 2010 is made. The goals of technical regulation in the Republic of Kazakhstan are given. Responsibility for violation of this legislation is considered. State bodies in the field of compulsory certification on the territory of the Republic of Kazakhstan have been allocated. The result of the study was the identification of a system of documents necessary for organizing the export of goods from Russia to the Republic of Kazakhstan. And the features of their practical application during the organization of export of goods to the Republic of Kazakhstan.

The Treaty on the Eurasian Economic Union (hereinafter referred to as the EAEU Treaty) signed by the Presidents of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation on May 29, 2014 in Astana united the Republic of Belarus, the Republic of Kazakhstan, and the Russian Federation. In addition to these three states, the Union also included the Republic of Armenia, which signed the Treaty of Accession to the Union on October 10, 2014, and the Kyrgyz Republic, which signed the same Treaty on December 23, 2014. Within the framework of these agreements on the EAEU, the Customs Union (hereinafter – the CU) exists. In this regard, customs operations related to the release of goods in accordance with the customs procedure of export to the territory of the EAEU countries have been simplified. Nevertheless, each country has its own requirements and characteristics of the sale of products on the territory of the country. To start exporting goods to the Republic of Kazakhstan, it is necessary to study the legislation of this country.

The Decree of the Government of the Republic of Kazakhstan dated April 20, 2005 No. 367 “On Mandatory Confirmation of Conformity of Products in the Republic of Kazakhstan” approved the list of goods and services subject to mandatory certification. The state bodies authorized in the field of product quality and carrying out mandatory certification in the Republic of Kazakhstan are:

Ministry of Investment and Development – Committee for Technical Regulation and Metrology;
Ministry of National Economy – Consumer Protection Committee.
After studying the legislation and preparing the necessary documents, we select the delivery condition depending on the type of product. The choice of delivery conditions depends on transport, risks, costs and geographical location. These conditions are agreed in advance in the contract concluded between the seller and the buyer. As an example, consider the terms of delivery for Incoterms 2010 EXW and FCA.

EXW – translates as the specified location, means the delivery of goods on a pick-up basis. The seller is deemed to have fulfilled his delivery obligations when he delivers the goods to the buyer at his enterprise.

The seller is not responsible for loading onto vehicles, handling customs formalities for transportation of goods. The buyer, when purchasing the goods, takes full responsibility for the organization of its delivery – takes the goods, packs, insures, transports it by his own or hired transport to the right place, pays export and import duties. Any kind of transport is used.

Thus, the supplier is not involved in the process of delivery of goods. The seller has minimal responsibilities – transfers the goods in his own warehouse. The buyer independently picks it up from the seller’s warehouse for further transportation to the destination.

FCA – is translated as a free carrier and means that all duties are transferred from the seller to the buyer after the seller transfers the goods to the carriers selected by the buyer. He can choose any logistics organization as a carrier. A carrier is a person who under the contract assumes all responsibility for the delivery and transportation of goods.

An important point of FCA during export is the exact indication by the recipient of the place and time of loading the goods, if it does not occur in the territory of the seller. In the event that the buyer does not comply with this clause, or does not designate the carrier, or the latter cannot accept the goods from the seller at the indicated place and in due time, the buyer will be forced to incur expenses in connection with the failure to fulfill part of his obligations.

The main differences between EXW and FCA are:

Transfer of risks, namely with FCA, if delivery is carried out at the seller’s premises, the seller is responsible for shipment, with EXW the seller is not responsible for loading the goods.
When using FCA, customs procedures are carried out by the seller, with EXW – the buyer.
Subject to the above provisions, the seller shall submit as supporting documents:

Transport documents: international consignment note (CMR), which indicates the place of loading – the territory of Russia, and the place of unloading should be indicated on the territory of the Republic of Kazakhstan and the corresponding mark of the carrier.
Shipping documents: consignment note (TORG-12), shipping specification, quality certificate, quarantine and veterinary certificates.
Settlement (payment orders).

Tax (invoices, invoices, applications for the import of goods and payment of indirect taxes and excise taxes).

Since the state control during the movement of goods between the EAEU states has significant features, and at the same time each state has its own peculiarities, each time when concluding an agreement for the supply of goods from Russia to the Republic of Kazakhstan, the Republic of Belarus, the Republic of Armenia and the Republic of Kyrgyzstan, the current list must be specified with necessary documents, and to distribute between the supplier and the buyer the responsibilities for their execution. For example, if a Russian seller delivers to a buyer’s warehouse in Kazakhstan, the execution of transport and shipping documents is the concern of the Russian seller. If the pickup of goods by a Kazakhstan buyer from the seller’s warehouse in Russia, the buyer draws up transport documents.

Also worth mentioning is that Incoterms regulates the relations of the parties exclusively within the scope of the supply contract. Summing up the above, it can be emphasized that, before you start exporting goods to third countries, you need to know the legislation of this country and your country – this is necessary in order to avoid risks when concluding a contract.

It is also necessary to draw up all the necessary certificates and permits for the goods in advance. When choosing a particular delivery condition, it is necessary to adhere to the terminology of Incoterms. When applying the terms of delivery, it is recommended to indicate a specific geographical location, and sometimes the exact location, as, for example, if EXW is delivered. The Incoterms rules only indicate which of the parties to the delivery must carry out the necessary actions for transportation and insurance when the seller transfers the goods to the buyer, and what expenses are borne by each of the parties. Incoterms rules do not indicate the price to be paid or the method of payment.