In order to expand and increase the share of non-resource exports of the country, the Ministry of Trade and Integration of the Republic of Kazakhstan has made a number of amendments to the existing rules for reimbursing the costs of subjects of industrial and innovative activities to promote domestic processed goods.

According to the press service of the Ministry of trade, the rules were actively discussed and worked out together with business throughout this year. And it is taking into account the proposals of entrepreneurs that the procedure for providing support has been significantly improved.

The new rules have optimized the package of documents, introduced new types of costs, updated the list of reimbursable goods, provided for gradation of compensation limits depending on the level of product conversion, as well as counter-obligations of enterprises when receiving reimbursement for costs.

For example, the need to provide a waybill, various certificates, photographs and other documents is excluded.

Now traders and distributors, as well as agricultural production cooperatives exporting processed goods, will be able to recover some of the costs.

Also subject to reimbursement are the costs incurred to pay for the rental of retail shelves in foreign markets.

In addition, part of the costs incurred for participation in foreign forums, competitions and congresses, the cost of transporting goods by own vehicles, for the delivery of test samples of products for passing the certification procedure is also subject to reimbursement. Part of the costs associated with the procedures for obtaining permission to use objects of exclusive rights (franchising) abroad, with the passage of foreign certification, accreditation, and inspection will be reimbursed.

The list of documents provided to reimburse part of the costs includes a document confirming the status of a domestic manufacturer. Such documents can be: industrial certificate, declaration of conformity, certificate of origin, veterinary certificate, etc.

For standardization, the limit of reimbursement of part of the costs for the delivery of goods was changed to 75,000 MCI instead of the previously indicated 1/50 of the amount of allocated funds for the current financial year. Thus, the amount of guaranteed compensation will cease to depend on budgeting.

The new rules also regulate issues of counter-obligations of enterprises.

In addition, applications from businesses will now only be accepted electronically, which will save time and eliminate additional postage for applicants.

“The main task of the tool is to support and stimulate export-oriented producers. This gives them the opportunity to increase the volumes, the range of the export basket, and expand the geography of countries. Enter both the EAEU market and the markets of third countries, establish the production of new types of goods. Today we work closely with several hundred exporters. However, one should not forget that these are budgetary funds and the state bears responsibility for their effective use together with business. ”- the press service of the Ministry of Trade also noted.

“Companies that have received approval for cost recovery mainly export to neighboring countries: Russia, Uzbekistan, Kyrgyzstan, Tajikistan, China. And also to Switzerland, Bangladesh, Ireland, Bahrain. In addition, by reimbursing costs, it will be much easier to enter new markets in Africa, the Middle East, Southeast Asia, the USA, etc.

All these measures of state support allow enterprises to be more efficient and competitive in trade, as well as to increase the volume of domestic production and export earnings. And thus, by increasing tax deductions, give a positive impetus to the development of the national economy, the growth of the welfare of Kazakhstanis, the implementation of social programs, ”said Aydar Kakimzhanov, deputy chairman of the board of“ Kazakhstan center of industry and export “QazIndustry” JSC.

The new rules come into effect on October 3, 2020.

Applications are accepted by the operator of the Ministry of Trade and Integration of the Republic of Kazakhstan - JSC "Kazakhstan Center for Industry and Export" QazIndustry "online, through the web portal: www.export.gov.kz.