The President of Kazakhstan signed the law “On introducing amendments and addenda to some legislative acts of the Republic of Kazakhstan on the development of the business environment and regulation of trading activities”.

The document, aimed at improving the legislation in the field of business, introduces about 400 amendments to 56 legislative acts.

An objective assessment of work related to improving the business environment is the World Bank’s Ease of Doing Business Index.

The measures taken to reform the legislation and improve the business climate following the results of previous years showed good results in this ranking. According to the report of the World Bank "Doing Business 2019", Kazakhstan took the 28th place (previously - 36th place).

In this regard, the law provides for amendments to simplify procedures related to connecting to the power supply system, opening enterprises, protecting minority investors, getting loans, obtaining building permits and taxation, which ultimately will improve Kazakhstan’s position in Doing Business.

The changes will also concern the development of favorable conditions for business activities and attraction of investments in the sphere of trade, tax and customs administration. Particular attention was paid to improving tax and customs administration, electronic and exchange trade, as well as trade in the agro-industrial sector, further development of foreign trade with the member states of the Eurasian Economic Union, reduction of shadow turnover in the economy through the development of cashless payments and the introduction of a labeling and traceability of goods.

Part of the amendments to the bill in the trade industry was initiated by the National Chamber of Entrepreneurs. Kazakhstani businessmen took an active part in working groups under the Ministry of National Economy of the Republic of Kazakhstan and the Mazhilis of the Parliament of Kazakhstan.

 E-commerce

In terms of e-commerce, the procedure for declaring goods for export for businesses and individuals has been simplified, using postal documents as a declaration.

In addition, the conceptual unit “Fulfillment Center" is introduced, which provides a full range of logistics services (receiving and storing goods, processing orders, picking, packing, delivery, receiving payment, processing returns). Fulfillment Center is a logistic center that performs the full range of operations from the moment of placing an order for goods by the buyer and until the delivery of this order to the buyer, including performing such functions as: warehousing of goods, receiving and processing orders, picking and packing orders, receiving payment from buyers, delivery of orders, acceptance of returns of orders in the field of electronic commerce). At the same time, we note that the functionality of such centers will be defined by by-laws.

 Improving stock trading

As part of improving stock trading, the subject of activity of commodity exchanges and electronic trading platforms is delimited. The concept of a standardized product is introduced, that is, it is a stock exchange product that is homogeneous, quantitatively and qualitatively standardized, interchangeable and mass-based, which will make it possible to establish a real market price (the by-laws will approve the list of standardized products).

Two-sided deals are also excluded they do not ensure equal competition of all exchange participants (maximum transparent market pricing is possible only through anonymous participation in exchange trading, due to a double counter-anonymous auction).

* Reference. The law delimits the concept of exchange goods - standardized, which is subject to sale on commodity exchanges by the double counter auction method, and as for the non-standardized goods they will be sold at a standard auction (for subsoil users).

 Regulation of prices for social products

As part of price regulation for socially important food products, on May 24, 2018 as part of the sixth package of legislative amendments, the competence of the Ministry of National Economy to establish threshold values and price limits for socially important food products is transferred to local executive bodies.

The ministry adopted a corresponding order, which is a guide for local executive bodies. Now the establishment of marginal prices is possible only after consulting with the subjects of trading activity. The decision is made collectively in a period of not more than 5 working days, in 2 cases - the excess of threshold prices by 15%, or the general rise in prices per month by 30%. The Order of the Ministry was registered on September 3, 2018, and entered into force on September 28, 2018.

In order to improve the access of domestic producers to retail chains, as well as to increase Kazakhstan’s place in the Global competitiveness index rating, the law prohibits the establishment of retro-bonuses for selling  socially important food products. This amendment was initiated by domestic producers and supported by retail chains.

 Development of wholesale distribution centers

The century of active consumption requires the creation of a modern infrastructure for storing, sorting, selling and delivering goods. The creation of wholesale distribution centers will provide our entrepreneurs and agricultural producers with a high-tech infrastructure for wholesale and retail trade.

Corresponding additions have been made to the Rules of internal trade, approved by the order of the acting minister of National Economy of the Republic of Kazakhstan dated on March 27, 2015 No. 264.

Such centers will increase business revenues, and embedded elements of electronic commerce will reduce public spending via direct access to distribution channels.

In this regard, the law provides for the conceptual apparatus of such centers, and their functionality will be regulated by by-laws.

 Code of Administrative Offences and system issues

At the initiative of the Atameken NCE RK, it is planned to reduce the sanctions for exceeding the size of the maximum allowable retail prices for socially important food products from 200 MCI to 100 MCI to reduce the administrative impact of the bill on the business.

As for the system issues from the registry of problems, the draft law provided for the vesting of local executive agencies with competence to approve routes for the implementation of exit trade by business entities.

 The law also resolves problems related to the protection of consumer rights in terms of the seller’s (manufacturer’s) obligation when terminating the contract to make payments to the consumer based on the price of the goods at the time of purchase (the buyer purchases goods at a discount and returns it within 14 calendar days requiring a refund. The seller is obliged to return the money for the full cost of the product. This amendment is aimed at eliminating an unfair consumer behavior.