Kazakhstan, the largest country in Central Asia and the ninth-largest in the world by land area, has a rapidly developing economy and a strategic position as a transit hub between Europe and Asia. Its customs tariff system is a critical component of its trade policy, which is influenced by its membership in the Eurasian Economic Union (EAEU), a regional economic bloc that includes Russia, Belarus, Armenia, and Kyrgyzstan. As a member of the EAEU, Kazakhstan follows the Common Customs Tariff (CCT), which standardizes tariff rates for all member states and facilitates trade within the union.
Kazakhstan’s tariff system is designed to protect domestic industries, encourage foreign investment, and promote economic diversification. The country’s customs duties apply to a wide range of products, from raw materials and agricultural goods to luxury items and consumer electronics.
Kazakhstan’s Customs Tariff System
Kazakhstan’s customs tariff system is based on the Common Customs Tariff (CCT) of the Eurasian Economic Union (EAEU). This system is designed to regulate trade between member states and external countries while promoting the free movement of goods within the EAEU. Customs duties are imposed as a percentage of the customs value, which includes the cost of goods, shipping, and insurance. Additionally, imported goods are subject to the Value Added Tax (VAT) and, in some cases, excise duties.
Customs Tariff Categories
Kazakhstan follows the Harmonized System (HS) for tariff classification, which categorizes goods based on their nature and use. These goods are divided into several categories, each with its own tariff structure. The key categories and the corresponding duties are outlined below:
Category 1: Agricultural Products
Agricultural products are subject to a range of tariffs in Kazakhstan. The country has a strong agricultural base but still relies on imports for many foodstuffs, particularly in the case of products that are not widely produced domestically.
- Wheat: Wheat, a key staple in Kazakhstan’s agriculture, typically attracts a tariff of 0%, reflecting the country’s ability to produce it in abundance. However, imported wheat may be subject to some safeguards if the domestic market is affected by an influx of low-priced imports.
- Rice: Imported rice, especially from Asia, is subject to a tariff of 10%. This reflects Kazakhstan’s domestic production of rice, though not in sufficient quantities to meet the full demand of the population.
- Vegetables and Fruits: Imported vegetables and fruits, such as tomatoes, cucumbers, and citrus fruits, typically face tariffs ranging from 5% to 15%, depending on the season and trade agreements with neighboring countries.
- Meat: Meat products, including beef and poultry, are subject to tariffs of 15% to 20%, with special provisions for halal meat and certain countries like Brazil and Argentina, which benefit from lower tariffs due to bilateral trade agreements.
Category 2: Industrial Goods
Kazakhstan’s industrial base includes a variety of sectors, from energy production and mining to manufacturing and construction. Industrial goods, particularly machinery, electronics, and chemicals, form a significant portion of the country’s imports.
- Machinery and Equipment: Machinery, industrial tools, and equipment used in mining, construction, and energy industries generally face tariffs ranging from 0% to 10%, depending on the type of machinery and the agreement with the supplier’s country.
- Electrical Equipment and Electronics: Imported consumer electronics such as mobile phones, laptops, and televisions typically face tariffs of 10%. However, many electronics are subject to exemptions or preferential treatment under EAEU agreements.
- Automobiles: Import duties on vehicles vary depending on the type of vehicle. Passenger cars face a tariff of 15%, while larger vehicles, including trucks and buses, may incur tariffs ranging from 10% to 20%. However, under the EAEU’s framework, certain automobile imports may benefit from reduced duties based on local assembly or manufacturing agreements.
- Chemical Products: Chemical products, including fertilizers, pesticides, and industrial chemicals, are typically subject to tariffs of 5% to 12%, depending on the product and its intended use in Kazakhstan’s industrial sectors.
Category 3: Textiles and Apparel
The textile and apparel industry is an important sector in Kazakhstan’s import economy, with many goods being imported from China, Turkey, and Europe. The country has a limited domestic textile industry, which necessitates significant imports of finished products.
- Clothing and Apparel: Imported garments, including clothing and footwear, typically face tariffs ranging from 10% to 20%. Higher tariffs are often applied to luxury or high-end designer items, while more basic clothing is subject to lower rates.
- Textile Fabrics: The import of textiles and fabrics is subject to tariffs ranging from 5% to 15%, depending on the fabric type and the agreement between Kazakhstan and the country of origin.
- Footwear: Shoes and other types of footwear imported into Kazakhstan are subject to tariffs ranging from 10% to 15%, depending on the material and manufacturing process.
Category 4: Luxury Goods and Non-Essential Products
Luxury goods and non-essential products, which have limited domestic production, face relatively higher tariff rates. These goods include items such as jewelry, fine art, and certain high-end consumer goods.
- Jewelry and Watches: Imported jewelry and watches, especially those made of precious metals or stones, typically face tariffs ranging from 10% to 20%. Some luxury items may also be subject to additional import taxes or fees.
- Cosmetics: Imported cosmetic products, including skincare and makeup, generally face tariffs of 10% to 15%, depending on the brand and product type.
- Alcoholic Beverages: Alcohol imports, particularly from European countries, face both excise taxes and import duties. The tariff rate for alcoholic beverages like wine and spirits ranges from 10% to 20%, depending on the alcohol content and country of origin.
Special Import Duties for Certain Countries
Kazakhstan’s participation in the Eurasian Economic Union (EAEU) means that it has established preferential tariff rates for goods originating within the union. The EAEU common tariff applies to trade between member states (Russia, Belarus, Armenia, Kyrgyzstan, and Kazakhstan), while goods imported from outside the EAEU may face varying tariffs based on their origin.
Free Trade Agreements (FTAs)
Kazakhstan has signed various free trade agreements that reduce or eliminate tariffs on certain products. For example, Kazakhstan has signed a free trade agreement with the Commonwealth of Independent States (CIS), which includes Armenia, Belarus, Kyrgyzstan, and Russia. Under this agreement, goods imported from these countries can enter Kazakhstan with reduced or zero tariffs, particularly in industries like food, machinery, and consumer goods.
- Kazakhstan-China Trade Relations: As part of the broader Belt and Road Initiative (BRI) promoted by China, Kazakhstan enjoys reduced tariffs on certain goods imported from China, particularly in the categories of consumer electronics, textiles, and machinery. The tariff reduction is part of the economic cooperation between the two countries under the framework of the Shanghai Cooperation Organization (SCO).
- EU-Kazakhstan Trade: While Kazakhstan is not an EU member state, it enjoys certain tariff benefits through its membership in the EAEU. The EAEU has agreements with the European Union that allow for preferential tariffs on certain goods, such as industrial products, chemicals, and agricultural products.
Anti-Dumping Measures
Kazakhstan, like other EAEU members, has the ability to impose anti-dumping duties on products that are being imported at unfairly low prices. These duties are designed to protect local industries from being undercut by foreign manufacturers.
- Steel: Kazakhstan has imposed anti-dumping measures on certain steel products from China and other countries where there is evidence of state subsidies leading to artificially low prices. Steel imports from non-EAEU countries can face additional duties if deemed to be sold below the fair market value.
- Agricultural Products: Kazakhstan has also used anti-dumping measures on agricultural imports, such as wheat and certain meat products, when it has been determined that foreign producers are pricing products below market value.
Excise Taxes and Other Fees
In addition to import duties, Kazakhstan imposes excise taxes on certain goods, particularly those considered to be luxury or non-essential items, as well as those with higher environmental or health impacts.
- Tobacco and Alcohol: Imported tobacco products and alcohol are subject to significant excise taxes in addition to customs duties. The excise tax rate varies based on the type of product and its alcohol or nicotine content. For example, cigarettes may face excise duties of up to 100% of the value of the goods, while alcoholic beverages can face excise duties based on volume and alcohol percentage.
- Fuel: Petroleum products and fuel imports are also subject to excise taxes, although these are typically higher for locally produced fuels than for imports.
Country Facts about Kazakhstan
- Official Name: Republic of Kazakhstan (Қазақстан Республикасы)
- Capital: Nur-Sultan (formerly Astana)
- Three Largest Cities:
- Almaty (largest city and financial center)
- Shymkent
- Karaganda
- Per Capita Income: Approximately $10,000 (2023 estimate)
- Population: Approximately 19 million (2023 estimate)
- Official Language: Kazakh (state language), Russian (official in business and government)
- Currency: Kazakhstani Tenge (KZT)
- Location: Kazakhstan is located in Central Asia, bordered by Russia to the north, China to the east, Kyrgyzstan, Uzbekistan, and Turkmenistan to the south, and the Caspian Sea to the west.
Geography of Kazakhstan
Kazakhstan is a landlocked country with vast steppes, deserts, and mountain ranges. Its topography is characterized by a mix of flat plains and high mountainous regions, including the Tian Shan mountain range in the southeast.
- Topography: Kazakhstan is the world’s largest landlocked country, with significant portions of its land made up of steppes and deserts. The highest point in Kazakhstan is Mount Khan Tengri (7,010 meters), located on the border with Kyrgyzstan.
- Climate: Kazakhstan experiences a continental climate, with hot summers and cold winters. The eastern regions experience extreme temperatures, while the western regions near the Caspian Sea are more temperate.
Economy of Kazakhstan
Kazakhstan has a resource-rich economy, heavily reliant on oil and gas exports, mining, and agriculture. The country is diversifying its economy to reduce reliance on natural resources and promote sectors such as manufacturing and services.
- Natural Resources: Kazakhstan is one of the world’s leading producers of uranium, and it also has significant deposits of oil, natural gas, coal, and metals.
- Agriculture: Agriculture is an important sector, with Kazakhstan being a major exporter of wheat, barley, and livestock.
- Manufacturing: Kazakhstan is investing in developing its manufacturing sector, with a focus on producing machinery, chemicals, and agricultural products for export.
Major Industries
- Oil and Gas: Oil and natural gas are Kazakhstan’s most important exports. The country is one of the largest oil producers in Central Asia, with significant reserves in the Tengiz and Kashagan oil fields.
- Mining: Kazakhstan has abundant mineral resources, including coal, copper, gold, and uranium, making mining a key part of its economy.
- Agriculture: Kazakhstan is a major agricultural producer, with a strong focus on wheat production. It also produces livestock, including cattle and sheep, as well as dairy products.
- Manufacturing: The government is working to expand the manufacturing sector, with growth in industries such as steel production, automotive, and electronics.
