Customs duty exemption, i.e. duty-free import, is the sole instrument of state support of investment activity provided for three investment projects: investment project, investment priority and special investment project.
Legal entities that carry out the investment projects or investment priority projects shall be exempt from the customs duties in relation of import of production equipment along with its accessories and spare parts and raw and other materials within the investment contract under an investment contract pursuant to the laws of the Republic of Kazakhstan.
Leasing companies may also be granted with customs duty exemption for production equipment shipped pursuant to the financial leasing contract for the Kazakhstani legal entity that implements an investment contract.
The duty-free import of production equipment with its accessories and spare parts is valid within the investment contract, but maximum five years from the time of investment contract registration.
- The production equipment shall mean goods used in the production process of the investment contract.
- The accessories shall mean constituent parts that constitute together a structural integrity of the production equipment.
- The raw and other materials shall mean any mineral, constituent part, piece and other items for the production process of manufacturing the finished goods.
Customs duty exemption for import of production equipment with spare parts and accessories shall be applicable within the force period of an investment contract but five years maximum from the time of investment contract registration.
Customs duty exemption for import of spare parts of the production equipment shall be applicable within five years and granted to the legal entities of the Republic of Kazakhstan and available subject to the amount of investments into fixed assets and when the project matches against the list of priority activities established by the Kazakhstan Government.
Customs duty exemption for import of raw and other materials shall be applicable within 5 years from time of commissioning of fixed assets under the work programme.
The exemption applicability period shall be equal to the force period of the investment contract, maximum of 5 years from the date of commissioning of fixed assets under the work program.
The work programme is annexed to the investment contract and contains calendar schedule of the investment project development prior to commissioning and main production indicators of the project after putting the production into operation are specified.
When the working program sets out commissioning of two or more fixed assets, the customs duty period for import of spare parts of the production equipment, raw and (or) other materials shall start from the date of commissioning of the first fixed asset as per the work programme.
These provisions on force period do not apply for the special investment project.
SPECIAL INVESTMENT CONTRACT
A legal entity engaged in a special investment project under a special investment contract may be granted with the customs duty exemption, i.e. free import of production equipment with its accessories and spare parts, raw and other materials being a part of the finished goods, manufactured on the territory of the special economic zone or free warehouse stock, pursuant to the laws of the Republic of Kazakhstan.
The customs duty exemption under the special investment contract is available for the:
- Participants of special economic zones for the period of 15 years but no longer than the force period of the special economic zones;
- Owners of free customs zone stocks from special investment contract registration ;
- Legal entities that made an agreements with the State on industrial assembly of motor vehicles for the period of maximum of 15 years from special investment contract registration