On establishment of the special economic zone "Pavlodar" Decree of the President of the Republic of Kazakhstan dated November 29, 2011 No. 186 Subject to be published in Collected Acts of the President and the Government of the Republic of Kazakhstan 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 develop chemical and petrochemical industries, I issue this Decree: 1. To establish the special economic zone "Pavlodar" (hereinafter - SEZ) until December 1, 2036. 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 APPROVED BY the Decree of the President of the Republic of Kazakhstan dated November 29, 2011 No. 186 REGULATION on special economic zone "Pavlodar" 1. General provisions 1. Special economic zone "Pavlodar" (hereinafter - SEZ) is located on the territory of North industrial region of Pavlodar according to the attached plan. The territory of SEZ is 3300 hectares and is an integral part of the territory of the Republic of Kazakhstan. 2. SEZ is created for: 1) development of chemical and petrochemical industries, in particular, production of export products with high added value, by using high-tech modern environmentally safe technologies; 2) development and implementation of breakthrough investment projects, research and scientific and technical investment projects to create and develop chemical, petrochemical industries on deep processing of hydrocarbon raw materials and production of a wide range of competitive products with high added value; 3) integration of the Kazakh products in the world system of production and distribution, creation of an innovative, competitive domestically produced products in accordance with international standards; 4) creation of highly efficient and innovative productions of chemical and petrochemical industry, including high-tech and competitive industries, development of new products; 5) creation of a favourable investment climate and attracting of local and foreign investments to implement investment projects and integrated development of chemical and petrochemical industries on the basis of mechanisms of partnerships between state and private business; 6) accelerated development of the region to promote the economy of the country entering the global economic relation system; 7) introduction of modern administration and economic management methods; 8) finding solution of social problems, increasing the employment rate. 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 petrochemical products, including relevant and related plants and technologies. 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 is applied on the whole territory of SEZ. 9. 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. 10. The territory of SEZ is a customs control zone. The SEZ boundaries are built up along the perimeter of its territory with special fences to perform the customs control. 11. 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. 12. 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. 13. 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. 14. 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 15. 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. Final Provisions 16. The conditions provided by this Regulation may be changed by the Decree of the President of the Republic of Kazakhstan. 17. 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". 18. 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 to the Regulation on special economic zone "Pavlodar" PLAN of the territory of the special economic zone "Pavlodar" Area of SEZ "Pavlodar" S = 3300 ha. APPROVED BY the Decree of the President of the Republic of Kazakhstan dated November 29, 2011 No. 186 Target performance indicators of the special economic zone "Pavlodar" and critical non-achievement level of target indicators Item No. Goals, objectives and performance (names) Unit Base period (2012) 1 1 2 Total volume of investments, including: 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 3 billion tenge billion tenge billion tenge billion tenge 4 - 1.1 1.2. 2 3 4 5 6 7 8 Table continued Achievement by 2015, including target critical indicator level 5 6 67.4 6 Achievement by 2020, including target critical indicator level 7 8 257.3 25 - 12.5 1.3 49.5 5 - 54.9 5 207.8 20.2 - 5 1 413.2 41 % - 5 3 7 5 Unit - 5 3 8 5 jobs - 500 200 1000 450 % - 50 30 65 50 % - 10 5 20 10 many times - 1.5 1.2 1.7 1.5 Achievement by 2025, including target indicator critical level 9 257,3 49,5 207,8 1042,4 7 8 1500 70 30 1,9 10 25 5 20,2 104 5 5 750 60 20 1,7 Achievement by 2030, including target indicator critical level 11 257,3 49,5 207,8 1071,2 10 8 1885 75 40 2 12 25 5 20,2 130 7 5 1000 65 30 1,9 Achievement by 2037, including target critical level indicator 13 14 257,3 25 49,5 5 207,8 20,2 2551,8 130 10 7 8 5 1885 1250 80 65 50 40 2,5 2 Note Indicators performance is shown on a cumulative total; during calculation the following exchange rate is used: 1 USD - 147 tenge. © 2012. RSE on PVC Republican Center of Legal Information of the Ministry of Justice of the Republic of Kazakhstan