LAW OF THE REPUBLIC OF KAZAKHSTAN

of December 27, 2021 No. 86-VII ZRK

About industrial policy

This Law establishes the fundamental principles of industrial policy and governs the public relations arising during the forming and realization of industrial policy.

Chapter 1. General provisions

Article 1. The basic concepts used in this Law

In this Law the following basic concepts are used:

1) territorial cluster - geographically concentrated group of the interconnected and complementary organizations which includes producers, suppliers, the scientific and research organizations, the organizations of the higher and (or) postgraduate education, the organization of technical and professional education and other organizations having certain industry specialization;

2) intra country value - percentage of manufactured goods and the carried-out works and services in the domestic market in total amount of manufactured goods, the carried-out work or service;

3) the Industry 4.0 - the production organization providing integration of physical objects, processes and information and communication technologies in case of which monitoring of physical processes is in real time carried out operational decisions are made, and also interaction of technologies among themselves and people is performed;

4) innovation - the resulting effect of innovative activities put into practice which received realization in the form of any new or considerably the improved product (goods, work or service), technology or process, new method of marketing or new organizational method in business practice, the organization of workplaces or external relations, providing competitive advantage;

5) innovative activities - the activities (including intellectual, creative, scientific, scientific and technical, technological, industrial and innovative, infocommunication, organizational, financial and (or) business activity) directed to creation of innovations;

6) authorized body in the field of the state support of innovative activities - the central executive body performing management in the field of innovative and technology development and also in limits, stipulated by the legislation the Republic of Kazakhstan, cross-industry coordination and participation in realization of the state support of innovative activities;

6-1) certain subjects of the quasi-public sector - national managing holdings, national holdings, the national companies and the organizations, fifty and more percent of voting shares (shares in the authorized capital) which directly or indirectly belong to national managing holdings, national holdings, the national companies, and also social business corporations, except for legal entities, fifty and more percent of voting shares (shares in the authorized capital) which directly or indirectly belong to national managing holding, national holding, the national companies, delivered in trust management to physical persons or non-state legal entities with the right of the subsequent redemption;

7) goods of the Kazakhstan origin - the goods which are completely made in the Republic of Kazakhstan, or the processed goods corresponding to conditions of production in case of which production the minimum threshold of production and technological operations, data on which contain in the register of the Kazakhstan producers, is carried out;

7-1) Kazakhstan producer - the subject of entrepreneurship which is resident of the Republic of Kazakhstan, included in the register of the Kazakhstan producers;

7-2) counter obligations - the cross liabilities of the subject of industrial and innovative activities and the state accepted by provision of measures of the state stimulation of the industry according to this Law;

8) market capacity - the quantitative index determining the greatest possible amount of the domestic market, production, import and export of industrial output;

8-1) register of ofteyk-contracts - the electronic database containing the data on ofteyk-contracts, their contractors and the made goods of processing industry received from the state and non-state information systems;

9) the industry - the economy industry representing set of the types of economic activity relating to mining, the processing production, ensuring with electrical energy, gas and vapor, air conditioning, water supply, water disposal, the organization of collection and waste recycling, and also liquidation of pollution;

10) subjects of activities in the field of the industry - the physical and (or) legal entities performing activities in the field of the industry and also subjects of industrial and innovative activities;

11) the industrial and innovative project - complex of the actions realized during certain time directed to transfer of technologies, creation new (enhancement acting) productions and (or) implementation of innovative activities;

12) industrial and innovative system - set of the subjects of industrial and innovative system participating in the state stimulation of industrial and innovative activities, infrastructure and tools directed to stimulation of the industry and support of innovations in the Republic of Kazakhstan;

13) industrial and innovative activities - the activities connected with implementation of industrial and innovative projects taking into account providing ecological safety for the purpose of work performance improvement, promotion of goods, works and services of the Kazakhstan origin of processing industry on internal and (or) the foreign markets;

14) subjects of industrial and innovative activities - physical and (or) legal entities, the particular partnerships realizing the industrial and innovative projects or performing activities for promotion of goods, works and services of the Kazakhstan origin of processing industry on internal and (or) the foreign markets;

15) the subjects of industrial and innovative system participating in the state stimulation of industrial and innovative activities - the national managing holding created within measures for optimization of management system by institutes of development, the financial organizations and to development of national economy, the national institutes of development, and also fund of development of the industry authorized on implementation of measures of the state stimulation of the industry;

16) industrial output - the goods made as a result of implementation of activities in the field of the industry;

17) industrial policy - system of the economic, organizational and legal measures performed by the state and directed to stimulation and development of the industry;

18) the interdepartmental commission on industrial policy - the advisory advisory body under the Government of the Republic of Kazakhstan headed by the Deputy prime minister of the Republic of Kazakhstan, created for the purpose of implementation of interagency coordination concerning forming and realization of industrial policy;

19) authorized body in the field of the state stimulation of the industry - the central executive body performing management in the field of the industry and also in limits, stipulated by the legislation the Republic of Kazakhstan, cross-industry coordination and participation in realization of the state stimulation of the industry;

20) measures of the state stimulation of the industry - the stimulation measures applied by the state for the purpose of development of processing industry and industrial and innovative activities, performed according to this Law;

21) digital transformation of the industry - the implementation of digital technologies in business processes of the companies attracting considerable changes of business model of the company;

22) processing industry - set of industries which are connected with processing of raw materials, materials, substances, components for new product (goods, including food products);

23) transfer of technologies - process of implementation by subjects of industrial and innovative activities of new or advanced technologies, the property rights, ownerships and (or) uses of which are received by the methods which are not prohibited by the laws of the Republic of Kazakhstan;

23-1) digital verification - the automatic process of assessment of the applicant performed by means of object of information and communication infrastructure of "the electronic government";

24) non-oil export - commodity export of processing industry and services;

25) big customers are the subsoil users having rights to production of solid minerals, except for popular minerals; certain subjects of the quasi-public sector; subjects of natural monopolies, except for subjects of natural monopoly of low power; systemically important companies.

Article 2. Legislation of the Republic of Kazakhstan on industrial policy

1. The legislation of the Republic of Kazakhstan on industrial policy is based on the Constitution of the Republic of Kazakhstan, consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules, than those which are provided by this Law then are applied rules of the international treaty.

Article 3. Purpose and tasks of industrial policy

1. The purpose of industrial policy is ensuring sustainable development of processing industry by increase in production of competitive, high-technology, export-oriented products and withdrawal from raw model of development.

2. Tasks of industrial policy are:

1) country population growth in prosperity by goal achievement in the field of sustainable development of the industrial sector of economy;

2) creation and development of modern infrastructure for development of processing industry;

3) support of effective implementation of innovations and development of new high technology productions;

4) diversification of economy and increase in competitiveness of industrial production, including by deepening of conversion, modernization of the operating productions for the purpose of performance improvement of work and decrease in negative impact on the environment;

5) creation of favorable industrial climate in the country and increase in self-sufficiency of national economy;

6) enhancement of the investment climate and development of the export potential of goods and services of the Kazakhstan origin with high value added, and also entry into global chains of value added;

7) reducing importozavisimost by means of self-produced development.

Article 4. Principles of industrial policy

The industrial policy is based on the principles:

1) gain in productivity, increase in complexity and technological effectiveness of economy, including by providing orientation of measures of the state stimulation of the industry on creation of conditions for production of goods of high levels of repartitions, development of innovations and digital transformation of the industry;

2) acceptances by the state of economically reasoned decisions providing unity industrial innovative, investment, export, trade, scientific and technological, educational, tax, budget, monetary the politician and responsibility for them to society;

3) the leading role of private entrepreneurship in the conditions of fair competition by means of ensuring individual approach to content of industrial policy and the choice of tools of its realization in industries and regions which have different operating conditions, structure and potential of development;

4) publicity, targeting and transparency of measures of the state stimulation of the industry and equal access to them when providing the necessary and sufficient tools reflecting specifics of condition of separate industries, subjects;

5) the equitable distribution of the benefits and obligations in case of realization of industrial policy providing organizational unity of actions of different levels and controling mechanisms;

6) balance of strategic interests of the state, society, industrial enterprises connected with functioning and development of the industry of the country, economy in general, development of human capital;

7) systemacity and long term of planning of measures of the state stimulation of the industry for the purpose of anticipation of possible changes of internal and external environment of development of the industry, determination of its strategic line item and decrease in negative impact on the environment;

8) efficiency of industrial policy by means of forecasting, assessment of requirements, the analysis of market capacity, use of risk management systems, resource planning, time and development of effective measures of response to changes.

Article 5. Industrial development

1. Realization of industrial policy provides the industrial development of the country based on increase in competitiveness of processing industry, system stimulation of the subjects of industrial and innovative activities promoting upgrade of industrial enterprises.

2. For the purpose of informing on industry condition in the territory of the Republic of Kazakhstan and the taken measures by the Government of the Republic of Kazakhstan annually introduces to the President of the Republic of Kazakhstan the National report on condition of the industry of the Republic of Kazakhstan (further - the National report).

The national report is created by authorized body in the field of the state stimulation of the industry following the results of assessment of industrial development and efficiency evaluation of implementation of measures of the state stimulation of the industry.

The central state bodies and local executive bodies of areas, cities of republican value and the capital annually till March 1 of the year following reporting provide information in authorized body in the field of the state stimulation of the industry for inclusion in the National report.

The national report is the main instrument of forming of the industrial policy determined by documents of System of state planning in the Republic of Kazakhstan which development is performed by state bodies with the assistance of local executive bodies of areas, the cities of republican value and the capital, representatives of subjects of entrepreneurship and society.

Article 6. Instruments of forming and realization of industrial policy

1. Forming of industrial policy is performed on the basis of assessment of industrial development.

Assessment of industrial development provides the analysis of the legal, economic, financial and other factors influencing industry development and is carried out according to technique of assessment of industrial development.

2. Monitoring of realization of industrial policy is performed by means of the single card of industrialization.

The single card of industrialization represents set of the industrial and innovative projects realized by subjects of industrial and innovative activities.

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