Resolution cases

Resolved or partially resolved problematic issues of foreign investors


№1 (Visas and Labor Law )

Problem:
Difficulties in obtaining permission from the Ministry of Labour and Social Protection for foreign labor force in implementation of investment projects in Kazakhstan.

Executed work:
There were meetings and consultations held with representatives of the Ministry at the level of the chairman of responsible committee. As a result, the parties came to a consensus that within special conditions on local content in personnel, in case of projects implementation in territory of SEZ, the investor has the right to obtain a permit to hire foreign experts for its project without restrictions.



№2 (Land issues)

Problem:
Long bureaucratic procedures from SEZ and Land Resources Department of Regional Akimat concerning modification of lease contract for plant construction in the territory of SEZ.

Executed work:
Investor Support Сenter held meetings and consultations with representatives of investor and Regional Akimat with participation of representatives from the Ministry of Industry and New Technologies. As a result, the issue of modification of lease contract between investor and the SEZ managing company was resolved.



№3 (Land issues)

Problem:
Unreasonable refusal to foreign investor by Regional Akimat to allocate land for implementation of investment project.

Executed work:
The corresponding inquiries to Regional Akimat were prepared and sent by Investor Support Сenter on behalf of the Ministry of Industry and New Technologies. Then there were consultations held with Akimat, as a result there was a need of confirmation from JSC Samruk-Energo concerning absence of plans for use of these parcels of land. The corresponding letter was received from JSC Samruk-Energo. Subsequently the required parcels of land were allocated by Akimat to investor.



4 (Legislation)

Problem:
Assistance in obtaining permission for economic concentration.

Executed work:
Investor Support Сenter carried out analysis of investor’s issue, then there were consultations held with Antimonopoly Agency. As a result it was established that requirements of Antimonopoly Agency are legal. Investor received a letter from the Agency with recommendations to address previously identified observations and re-introducing the package of materials to the Agency. As a result of measures taken the issue was resolved. However, to improve conditions for investors, Investor Support Сenter developed proposals for further improvement of the current legislation governing economic concentration.


5 (Legislation)

Problem:
Issues regarding the current legislation governing the collection of medicinal plants in territory of Kazakhstan
- Absence of rules governing the collection of medicinal plants;
- Existence of facts of collection medicinal plants by individuals without permits.

Executed work:
Investor Support Сenter conducted an analysis of current legislation involving а law firm. As a result, absence of the regulatory legal acts regulating collection of medicinal plants was established. In this regard, a proposal on amendments to the Law of the Republic of Kazakhstan "About permissions and notifications" in terms of issuing permits for collection of medicinal plants was prepared. This addition is designed to ensure control over collection of medicinal plants and reduce illegal gathering.



6 (Customs issues)

Problem:
Illegal cancellation of a free warehouse mode for foreign investor.

Executed work:
Investor Support Сenter held a number of meetings and consultations with representatives of concerned parties, including Committee of Customs Control. The meeting was organized in the Ministry of Industry and New Technologies at the level of vice-minister and Committee of Customs Control. As a result of discussion and consultations, the parties agreed about investor’s compliance to conditions of provision of a free warehouse mode. The mode of a free warehouse for the investor was returned.



№7 (Construction and licenses)

Problem:
Difficulties in obtaining the license of first category.

Executed work:
Investor Support Сenter, with the assistance of a law firm, carried out an analysis of current legislation in the field of design and construction. At the same time, consultations were held with Akimat and Agency for Construction, Housing and Utilities with participation of investor, as a result of which there were some shortcomings in current legislation revealed that, do not allow to take into account the existing experience of a foreign company outside of Kazakhstan. As a result, there were proposals for changes to eligibility requirements for licensing the construction and design activities for the service of foreign engineering and construction companies operating in the oil sector of the country developed by Investor Support Сenter.



8 (Legislation)

Problem:
Discrimination against producers of pasta, due to the need of complete payment of the value added tax. Thus other processors of agricultural raw materials pay the VAT for reduced rates.

Executed work:
Investor Support Сenter carried out analysis of current legislation regulating of VAT liability of agricultural products processors. Offers to the current edition of tax legislation, which are sent to the Ministry of Finance for consideration, were as a result developed. In addition, recommendations were sent to investor on the next steps. At this stage investor is gathering necessary documents to be sent to the State Revenue Committee.



9 (Legislation)

Problem:
Issues regarding the current law governing renewable energy industry.

Executed work:
Investor Support Сenter collected necessary information that were presented to investor, where the procedure of procurement of electricity generated on renewable energy, issues of tariffs, etc. were described in detail.



№10 (Infrastructure)

Problem:
Issues on expanding the capacity of railway station.

Executed work:
Investor Support Сenter organized a series of meetings with concerned parties, including: JSC "KTZ", Transport Committee, Committee on Investment etc. There was a trip made to the region to discuss the issue with top management of the region. Following the meeting, led by Vice-Minister of investment and development there were a number of protocol instructions aimed at resolving problematic issues investor developed. Now, on the brought-up questions the agreement with JSC KTZh on solutions is reached. Complete removal of a question is expected until the end of 2015.



№11 (Infrastructure)

Problem:
Issue on unsatisfactory condition of infrastructure, problem with power supply in Industrial park.

Executed work:
Investor Support Сenter sent several requests to Regional Akimat. As a result, to date, according to the Regional Akimat all issues raised by investor were resolved.



№12 (Land issues)

Problem:
Issue on wrongful acts from Regional Akimat concerning the investor’s parcel of land.

Executed work:
In order to solve this problem there were a number of measures taken, including consultations with representatives of Akimat, Committee on Investments and investor. In addition, the issue was put to a meeting of Ombudsman under leadership of Deputy Prime Minister - Minister of Industry and New Technologies Mr. A. Issekeshev, following which the parties were given recommendations for resolving this situation. As a result of taken actions, the problem is solved. The parties came to a mutually beneficial agreement.



№13 (Legislation)

Problem:
Issues concerning the current legislation, governing the registration of trademarks and sales of products in the territory of the Republic of Kazakhstan:
- legitimacy of the registration of a trademark of products;
- legitimacy of sales of products without marking of goods in the territory of the Republic of Kazakhstan.

Executed work:
ISC (Investors Support Center) held meetings and consultations with the representatives of the investor and competent state agencies, with participation of the representatives of the Committee on Investments of the Ministry of Investments and Development of the Republic of Kazakhstan. The Center also initiated requests to the Committee of the Republic of Kazakhstan on Consumer Protection of the Ministry of National Economy of the Republic of Kazakhstan and the General Prosecutor’s Office of the Republic of Kazakhstan. Based on the executed work, the issues of the company were submitted to the meeting of Investment Ombudsman chaired by the Minister of Investments and Development, Mr. A. Issekeshev. After the meeting was held, the issue of the company was solved in favor of the investor.



№14 (Other)

Problem:
On receipt of a license for exploratory project activity and construction-installation works.

Executed work:

The Center held meetings and consultation with representatives of the Akimat (Governor’s Office) of Almaty city. As a result of the activities held, the parties reached a verdict that the investor has an unrestricted right to receive the license for exploratory project activity and construction-installation works.



№15 (Other)

Problem:
Unreasonable exclusion of the investor from the Register of Domestic Producers.

Executed work:
ISC, in the name of the Committee on Investments of the Ministry of Investments and Development of the Republic of Kazakhstan, prepared and submitted consistent requests to “Kazakhstan center for modernization and development of housing and communal services”. Consultations were held following which a working group for second examination of the enterprise was formed. , Based on field analysis of work, the colleagues took a decision on inclusion of the investor into the Register of Domestic Producers.



№16 (Tax legislation)

Problem:
Issue on inclusion into tax legislation of a provision concerning the assignment of the loss to deductions.

Executed work:
ISC held meetings and consultation with representatives of the investor and competent state agencies, with participation of representatives of the Committee on Investments of the Ministry of Investments and Development of the Republic of Kazakhstan, The Center initiated the requests to the Department of Regulation of Trade Activity of the Ministry of National Economy of the Republic of Kazakhstan. After these activities were held, the issue of the company was solved in favor of the investor.