VZCZCXRO0555
PP RUEHAST
DE RUEHTA #1902 1931014
ZNR UUUUU ZZH
P 121014Z JUL 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC PRIORITY 0067
INFO RUEHAST/USOFFICE ALMATY
RUEHAK/AMEMBASSY ANKARA 2072
RUEHGV/USMISSION GENEVA 0958
RUEHCR/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS ASTANA 001902 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR SCA/CEN (O'MARA), EB (M SINGER, A WINTON, R SCHNELLER) 
DEPT PLEASE PASS TO USTR (B HAFNER, L O'CONNOR) 
DEPT PLEASE PASS TO USDA/FAS (K RAMOS, J FLEMINGS) 
 
E.O. 12958: N/A 
TAGS: EAGR ECON ETRD WTRO USTR KZ
SUBJECT: KAZAKHSTAN: INFORMATION ON POULTRY TARIFF LINES 
 
REF: A. STATE 88685, B. ASTANA 01448, C. STATE 67132 
 
¶1. (SBU) Post has reviewed evidence on Kazakhstan's 2006 tariff 
rates on poultry in response to Ref A request.  Government of 
Kazakhstan (GOK) decrees establishing poultry tariff rates, as well 
as import documents for frozen chicken halves or quarters, support 
the assertion that the poultry tariff rate for 2006 was 10%, rather 
than 20% and higher, as indicated in the GOK's July 2006 bilateral 
market access offer (Ref A). 
 
¶2. (SBU) A May 2005 GOK decree (number 430), which came into force 
the following month, changed the tariffs on frozen poultry meat 
(including on the line listed as 0207 14 20 0) from "20%, but no 
less than 0.15 euro per 1 kg" to "10%."  (Note: This lowering of 
tariffs appears to be part of populist economic measures passed in 
2005 in the run-up to the December 2005 presidential election.  End 
note.)  The next relevant decree was passed in August of 2006 
(number 765) and was to take effect in October of that year.  That 
decree, however, appears to have been primarily technical in nature, 
with the goal of making a transition to the 10-digit HS (Harmonized 
System) code.  Thus, it appears that the 10% tariff on poultry meat 
remained in force throughout 2006 and until May 2007, when another 
decree (number 287), passed in April 2007, resulted in broad tariff 
rate increases on poultry meat (Ref B and C).  In particular, the 
April 2007 decree raised the tariff rate for frozen chicken halves 
or quarters (02071420000) to "20%, but no less than 0.4 euros per 1 
kg." 
 
¶3. (SBU) Almaty FAS FSN was provided by a Kazakhstani company, on 
condition of anonymity, copies of two import documents for frozen 
chicken halves or quarters (HS Code 0207142000), dated July 14, 2006 
and November 29, 2006.  Both documents list 10% as the tariff rate 
applied to the imports. 
 
¶4. (SBU) As Ref A notes, one of the possible implications of 
Kazakhstan's July 2006 poultry meat tariff rates is whether or not 
the rate increase passed in April 2007 violates the standstill 
agreement (Note: The standstill agreement  dictates that, while 
negotiating WTO accession, applicant countries will not adopt laws 
or practices that are more restrictive End note).  It is notable 
that in recent discussions with Post, Kazakhstani officials appeared 
to accept the notion that the measure violated the standstill 
agreement.  Their retort, however, was that the standstill agreement 
represents an expectation rather than a formal obligation (Ref B). 
 
MILAS