Yes - to SEZ and free warehouses!

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In accordance with the rules of the EAEU on 1^st of January 2017, customs and some tax benefits will be canceled for the SEZ participants and owners of free warehouses

These commitments have been made by Kazakhstan upon accession to the World Trade Organization.

The above benefits in the current economic realities are of great importance for 43 SEZ participants and 66 owners of free warehouses (approximately registered before 2012 and have privileges at the moment). Most of these enterprises have invested heavily in the construction of factories, hoping solely on stable preferences. However, since 2017 these benefits will be lost, which will certainly have a negative impact on the activities of these enterprises. It should be noted that these businesses have created about 20 thousands of jobs. The lack of identified benefits will inevitably lead to the need for job cuts and loss of production.

Earlier this year, Timur Kulibayev said: "We consider it is necessary as an alternative support measures to introduce special investment contracts in Kazakhstan, in which participants will be able to obtain the SEZ investment preferences. Thus, it will be possible to save money that lose entrepreneurs. To do this you must make changes in business code, freeing SEZ participants from customs duties from 1^st of January 2017, but this requires conclusion of special investment contracts later this year".

NCE together with public authorities over the years worked to develop alternative support measures. We considered various options, including subsidies paid for losses from import duties and subsidies for energy costs and others.

In order to discuss such an important subject at the site of the National Chamber of Entrepreneurs "Atameken", we recently held a meeting with representatives of MID RK, MNE of RK, the Ministry of Agriculture, SRC of MF RK, representatives of associations and more than 40 companies, including the regions via the video conference mode.

Opening the meeting, Deputy Chairman of NCE RK "Atameken" Dana Zhunusova familiarized the participants with the agreements reached on the introduction of alternative measures to support the participants of SEZ and owners of free warehouses.

"Recognizing the high importance, NCE has repeatedly raised the issue in question at various venues - said Dana Zhunusova. - International experience was studied during formation of the proposals, including Russia. And now, as an understanding of all stakeholders, I consider it is necessary to accelerate the work on amendments to the legislation".

Managing Director of NCE Aselya Dangilova presented the tried and tested approaches and noted: "The participants of SEZ and owners of free warehouses are industry forming enterprises. They form the mechanical engineering, automotive, food industry, chemical and light industry. And when we say that the proposals for alternative support measures are an important condition for the existence of enterprises, we can say that we are talking about saving a number of industries".

Representatives of the MID RK and MNE supported the proposals of NCE and the proposed measures do not contradict to the agreements and commitments within the WTO and EAEU.

In general, all participants of the meeting approved the presented approach and agreed to accelerate the practical realization in legislation. It is necessary to study in detail the mechanism and procedure of the specified support measures.