Source: IS Paragraph, 01.10.2014 15:38:47 DECREE OF THE PRESIDENT OF THE REPUBLIC OF KAZAKHSTAN On establishment of the special economic zone "Chemical Park "Taraz" In accordance with the Item 8 of article 7 of the Law of the Republic of Kazakhstan of July 21, 2011 "On special economic zones in the Republic of Kazakhstan" and to create new chemical products in the country, I issue this Decree: 1. To establish the special economic zone "Chemical Park "Taraz" (hereinafter - SEZ) until January 1, 2037. 2. To approve the following: 1) Regulation on SEZ; 2) Target performance indicators and critical non-achievement level of target indicators of SEZ. 3. Government of the Republic of Kazakhstan shall take measures to provide for activity of SEZ. 4. Administration of the President of the Republic of Kazakhstan shall be responsible for control of implementation of this Decree. 5. This Decree shall come into force from the date of its signature. President of the Republic of Kazakhstan N. NAZARBAEV Astana, Akorda, November 13,2012 No. 426 Approved by the Decree of the President of the Republic of Kazakhstan dated November 13, 2012 No. 426 Regulation on the special economic zone "Chemical Park "Taraz" 1. General provisions 1. Special economic zone "Chemical Park "Taraz" (hereinafter - SEZ) is located on the territory of Shu region of Zhamyl oblast at the boundaries according to the attached plan. The territory of SEZ is 505 hectares and is an integral part of the territory of the Republic of Kazakhstan. 2. SEZ is created to form new chemical products based on high performance technology in the Republic of Kazakhstan. 3. SEZ activities are regulated by the Constitution of the Republic of Kazakhstan, the Law of the Republic of Kazakhstan dated July 21, 2011 "On special economic zones in the Republic of Kazakhstan", this Regulation and other regulatory legal acts of the Republic of Kazakhstan. 4. Priority activities on the territory of SEZ are: 1) production of chemical products; 2) production of rubber and plastic products; 3) production of other non-metallic mineral products 4) production of machinery and equipment for chemical production; 5) construction in accordance with the design and estimate documentation and commissioning based on the acceptance certificate of the state acceptance commission of industrial facilities designed specifically for production of chemicals and chemical products, rubber and plastic products, and other non-metallic mineral products, machinery and equipment for chemical production. 2. SEZ management 5. SEZ management shall be conducted in accordance with the Law of the Republic of Kazakhstan of July 21, 2011 "On special economic zones in the Republic of Kazakhstan". 3. Taxation on the territory of SEZ 6. Taxation on the territory of SEZ is regulated by the tax legislation of the Republic of Kazakhstan. 4. Customs regulation 7. Customs regulation on the territory of SEZ is provided in accordance with the provisions of the customs legislation of the Customs Union and the Republic of Kazakhstan 8. The customs procedure of customs-free zone can be applied on the territory of SEZ or within other parts of its territory. The customs procedure of customs-free zone includes goods intended for distribution and (or) use on the territory of SEZ by persons carrying out priority activities on the territory of SEZ in accordance with the agreement on activities performed as a member of SEZ. 9. Territory of SEZ where the customs procedure of customs-free zone is applied is the customs control zone. The boundaries are built up along the perimeter of the territory of SEZ in accordance with the customs legislation of the Republic of Kazakhstan to perform the customs control. 10. Places for temporary storage of goods can be created on the territory of SEZ in accordance with the procedure as provided for by the customs legislation of the Customs Union and the Republic of Kazakhstan. 11. Goods included into the customs procedure of customs-free zone, and goods of the Customs Union, not included into the customs procedure of customs-free zone, and foreign goods included into other customs procedures can be distributed and used on the territory of SEZ. 12. Goods imported into the territory of SEZ and included into the customs procedure of customs-free zone shall be considered as goods which are outside the customs territory of the Customs Union to use customs duties and taxes, and non-tariff regulation measures. 13. Customs operations related to temporary storage, customs declaration, customs clearance and release of goods, and customs control on the territory of SEZ shall be carried out in accordance with the procedure as provided for by the customs legislation of the Customs Union and the Republic of Kazakhstan. 5. Environmental Protection 14. SEZ activities performed in terms of environmental management is carried out in accordance with environmental laws of the Republic of Kazakhstan and is based on the rational and efficient use of natural resources by creating conditions for transition to sustainable development and environmental protection on the basis of a balance of economic, social and environmental aspects to increase the quality of life. 6. Procedure and terms of SEZ abolition 15. SEZ shall be abolished after the expiry of the date when it was created by the Decree of the Republic of Kazakhstan identified by Government of the Republic of Kazakhstan. 7. Final Provisions 16. Pre-term abolition of SEZ shall be conducted in accordance with the Law of the Republic of Kazakhstan of July 21, 2011 "On special economic zones in the Republic of Kazakhstan". 17. SEZ activities not regulated by this Regulation shall be conducted in accordance with the current Law of the Republic of Kazakhstan and the Customs Union. Attachment tothe Regulation on the special economic zone "Chemical Park "Taraz Plan of the territory of the special economic zone "Chemical Park "Taraz" Area of SEZ "Chemical Park "Taraz" S = 505 ha APPROVED BY the Decree of the President of the Republic of Kazakhstan dated November 3, 2012 No. 426 TARGET PERFORMANCE INDICATORS of the special economic zone "Chemical Park "Taraz" and critical non-achievement level of target indicators of the special economic zone "Chemical Park "Taraz" No. 1 1 Goals, objectives and performance (names) 2 Total volume of investments, including: Unit 3 billion tenge Base period (2012) 4 Achievement by 2015 Target indicator 5 82,5 Critical level 6 15 Achievement by 2020 Target indicator 7 124,5 Critical level 8 50 1) 2) 2 3 4 5 6 7 8 Volume of foreign investment Volume of domestic investment Production of goods and services (works) on the territory of SEZ** Annual growth of investment in nonenergy sectors of economy of the region (manufacturing industry) Number of participants Number of jobs, created on the territory of SEZ Local content share in total production on the territory of SEZ Local content share in total production on the territory of SEZ Increase in labour productivity billion tenge billion tenge billion tenge 41,2 7,5 62,2 25,0 41,2 7,5 62,2 25,0 0,0 0,0 292,6 92.9 % 40 % 10 % 152 % 95 % Unit jobs 7 172 3 115 15 1190 12 819 % 0 0 50 30 % 0 0 16 8 many times 0 0 1,5 1,3 Table continued Achievements by 2025 Target Critical indicator level 9 10 403,5 200 201,7 100 201,7 100 1561 442,3 166 % 136 % 15 13 1430 1001 60 40 38 19 1,8 1,6 Achievement by 2030 Target Critical indicator level 11 12 403,5 200 201,7 100 201,7 100 2872 856,4 166 % 136 % 15 14 1430 1001 70 50 45 22 2,0 1,8 Achievement by 2037 Target indicator Critical level 13 14 403,5 200 201,7 100 201,7 100 4707 1436,3 166 % 136 % 15 15 1430 1001 80 60 47 24 2,2 2 Note: Indicators performance is shown on a cumulative total; the first production of goods on the territory of SEZ are expected in 2015, in the amount of 4 billion tenge - sodium cyanide; during calculation the following exchange rate is used: - 1 USD = 150 tenge; when calculating the annual growth of investment in non-energy sectors of economy of the region the investments on industry in fixed capital of Zhambyl oblast were taken into account according to statistics at the end of 2010, in the amount of 146.8 billion tenge.