Issaeva Ainur Tursinaliyevna

candidate of economic sciences., associate professor of university at Abai KNPU, city Аlmaty, Kazakhstan

Zhuzbaeva Aigul Tursinaliyevna

candidate of economic sciences., associate professor of university Almaty Technical Univercity, city Аlmaty, Kazakhstan

CUSTOMS SYSTEM OF THE REPUBLIC OF KAZAKHSTAN AND ITS INTEGRATION WITH OTHER STATES

Annotation: main purpose of this article is to provide analysis of the best customs law practices developed by the WTO, Eurasian Economic Union and other Customs Unions in order to give recommendations to the discussions of customs law initiative in the Republic of Kazakhstan. By raising and analyzing the object historically and theoretically to explore inefficient areas, doctrinal aspects of the issue. The author used comparative analysis methodology. As objects of analysis were selected customs regulations of these states: The Eurasian Economic Union and the Republic of Kazakhstan. The findings showed that customs laws in the Republic of Kazakhstan strongly regulate some areas than international laws do.

Keywords: WTO, Customs Union, Eurasian Economic Commission, Central Asia regional economic Cooperation, Customs Control Committee, International integration

It is well known fact that in democratic developed countries government cannot exist isolated from international organizations and other institutions of society. The depth and quality of these interactions influence the dynamic development of society as a whole. If we consider geographical location of Central Asian countries, most of them do not have any access to the Ocean. So lack of or poor access to world’s trade, global logistic network is the main problem that need to be tackled. Kazakhstan as the world’s largest landlocked country in Central Asia also seeks alternative trade routes to be integrated to the international trade framework.[1]

Another problem may be lays on that after they had been under the leadership of Soviet Union for a long time and hardly gained their independency some Central Asian states look on any integration process with suspicion. Even so that there are ethno-linguistic, religious similarity, cultural identity and Central Asian regional economic Cooperation among them, their economic cooperation is not so close compared with others. May be that will be considered as a matter of security, but we think that the problem not only rests on that. The harsh weather condition linked with bad roads, poor transportation infrastructure, not optimized transit system, inefficient logistics, differences between their national law and last but not least lack of the strong sense of national identity, all that lead to the weak cooperation of Central Asian countries.

However from other hand the issue of national security, including economic safety, protection of home industry and consumers interests burdens on a particular state itself. As a main actor of this field customs office not only deals with this issue, it also has its own right impact on a solution of foreign economic relations and macro-economic situation as well. And recent days, we are witnessing that choice-of-law rules frequently allow for the application of national and international law to the merits of investment disputes between foreign investors and host states. We have also observed that the doctrine of party autonomy may serve to limit the application of national or international law, depending on whether the parties have reached an agreement on the sole application of international or national law, respectively. Therefore in order to be secure and smoothly pass all that integration and globalization process every country’s national legislation needs to be harmonized and conformed to international rules.[2]

The customs system of the Republic of Kazakhstan begins promptly upon proclamation of our country's sovereignty in 1990, after the Decree of the President of the Republic of Kazakhstan № 539 “On the formation of the Customs Committee of the Republic of Kazakhstan” regarding the subordination of customs establishments located on the territory of the Republic of Kazakhstan came into force on December 12, 1991. This normative act provided that all the customs structures on the territory of the country, consisting at that time from the customs houses Zharkent, Almaty and others, were transferred under the administration of the Government of the Republic of Kazakhstan. The customs system was created in an emergency regime, in a very short time the customs control posts being equipped and staffed with customs inspectors who had a vague idea about the specifics of this activity. But main problem were a length of the customs border and shortage in number of customs officers, which didn’t exceed 150. Of course this staff couldn’t supply with an efficient service to this enormous territory. However, as years passed, they succeeded to acquire the respective job skills and became the supporting foundation of the customs control bodies verticality. In 12.11.1992 by the Decree of the President of the Republic of Kazakhstan № 963 “On the reorganization of the financial, tax and customs services of the Republic of Kazakhstan” Customs Committee subordinated to the Ministry of Finance. So it built main legislative framework to the formation of the General Customs Directorate of the Ministry of Finance of RK.

During 1995-2010 five years negotiations when the Customs Union formed between Russia, Belorussia and Kazakhstan some of the customs houses were reorganized, additional customs houses being created at the border. In the same years, the basis for the activity of customs control points (frontiers) at the border with other countries of these countries was laid. The initial reason was to develop the trade of each country. As a time went by that initial economic issue by imposition mutual external tariff, to shorten and reduce the expenses in trade between them and to overcome difficulties in technical regulations like sanitary barriers, by organizing single economic zone, of common standards and rules, an agreement on migration of employees seems to attain political patterns. The activity of these crossing points was legalized when the Agreement between them "Common customs territory" was signed in 2011. In the same year, all the legislations of Customs Union were conformed to the regulations of WTO. In 2012 after the accession of Russian Federation to the WTO Common Customs Tariff (ETT) was renewed by taking into account juridical responsibilities of the Russia before that organization.[2]

The first Customs Code - the fundamental legal act which regulates the organizational and activity principles of the customs system, adopted on 30.06.2010. The amended versions of the Customs Code were adopted in 2013, 2014 and 2015.

In 1996, the Republic of Kazakhstan had started round of negotiations with WTO and became member of this organization with complete rights on 15th of December in 2015. Throughout the last years of activity, the customs bodies recorded a continuous and stable development, improving its forms of activity, acquiring modern technologies which are used internationally. New customs house premises were built at the border crossing points, with a contemporary infrastructure and optimal conditions, which allow the work of the customs employees to be carried out at a high qualitative level. The material basis of the customs system improved, the regional subdivisions being equipped with special equipment and technical devices.

Theoretical literature on the subject of related issues is rich and varied: encyclopedias, articles, reports, legislation. As so the object as a field of study and research is new and some researchers put great emphasis on the topic. However, the existing literature is mainly based on gravity models and only look at the aggregated effects of Kazakhstani customs procedures without distinguishing the compositional effects or providing more detailed information. Relatively little research has been conducted to explore the underlying mechanisms, the economic linkages between countries, or sources of causation in this area. This paper provides new empirical enhancements. Specifically, an author focuses on time delays’ quality effect and price effect among Customs Union and other countries – how time delays impact quality and price of traded products, which in turn affect the trade flow and social welfare. In order to answer the basic research questions mentioned above a survey based upon questionnaire method is decided to be carried out. The survey will be mixed survey meaning that both qualitative and quantitative research techniques will be used. The quantitative techniques to be used are mainly statistical analyses. The cross tabulations to be drawn for various variables will be subject to analysis in order to understand the existence of relations between the variables measured. Consequently, the existence of relations between the variables will be accepted if it results with meaningful outcomes.

Our ancestors had a keen knowledge of leading trade alongside the Silk Way. So we have to apply their tremendous experience in leading trade and become more competitive in today’s international trade. It is clear fact that perishable products are likely to be more sensitive to inefficient customs procedures. Therefore we must leave no place to any time delay which have significant quality effect and price effect of the product.

The purpose of this paper will be optimization of all the failures which have been mentioned above, promote the trade and increase the total social welfare of Turkish countries. Therefore, trade policy reform efforts need to focus not just on traditional measures such as tariffs, but also on non-tariff barriers such as time delays at the border. Furthermore, we suppose that our results will suggest alternative ways of dealing with those issues. Our findings will suggest that accelerating custom clearance procedures may enable countries to change the structure of trade by promoting the trade of time-sensitive products and stimulate the volume of international transactions[1]. Finally we strongly believe that successfully implemented trade facilitation programs may reduce direct and indirect trade cost, increase product quality and exporters’ profit, as well as importing countries social welfare.

Literature

1.POLITICS. ECONOMY; Russia, Belarus, Kazakhstan have unsettled issues in building Customs Union – Putin.

2.Anonymous. Interfax : Russia & CIS Business & Investment Weeklyhttp://search.proquest.com/business/indexingvolumeissuelinkhandler/55280/Interfax+:+Russia+$26+CIS+Business+$26+Investment+Weekly/02010Y05Y28$23May+28,+2010/$N/$N?accountid=34571 (May 28, 2010)(Copyright (c) 2010 by Interfax Information Services B.V