TRADE AND MARKETS

The legislation on the regulation of trading activity is based on the Constitution and consists of the Law on the Regulation of Trading Activity and other regulatory legal acts; where a ratified international treaty sets different rules, the treaty prevails. The procedure and terms for concluding a contract of sale, and the rights and obligations of sellers and buyers, are governed by the Civil Code and other legislative acts, subject to the specifics of that Law. Relations with an individual buyer are additionally governed by the Law on Consumer Rights Protection, requirements for retail outlets by the Rules of Internal Trade, tax obligations by the Tax Code, and requirements for products and their labelling by the technical regulations of the Eurasian Economic Union and national technical regulations.

Legal basisArt. 2 and para. 1 of Art. 14 of the Law of the RK on the Regulation of Trading Activity

A trading entity sets the maximum trade mark-up on a socially significant food product at no more than fifteen per cent of the manufacturer's release price or the wholesale supplier's purchase price stated in the supply contract for that product. Where the product comes from several manufacturers or wholesalers, the mark-up is calculated from the lowest of the prices stated in those contracts. In supply contracts for socially significant food products the maximum mark-up must be fixed, and a transaction concluded in breach of that requirement is invalid.

Legal basisPara. 1 of Art. 9 of the Law of the RK on the Regulation of Trading Activity

Retail trade is carried out through stationary and non-stationary retail outlets and through trading markets. Retail trade outside the locations established by the local executive bodies is prohibited. Retail trade away from trading premises — through network marketing, public distributors, by post and by other means — is regulated in the manner determined by the authorised body. In retail sale each item of goods must be packaged and pre-packed, unless legislation or the contract provides otherwise or this does not follow from the nature of the goods.

Legal basisParas. 1, 2, 4 and 5 of Art. 12 of the Law of the RK on the Regulation of Trading Activity

Yes. Displaying goods, demonstrating samples or presenting information about the goods for sale — descriptions, catalogues, photographs and the like — at the place of sale is recognised as a public offer, regardless of whether prices and other essential terms are stated. The exception is where the seller has clearly indicated that the goods are not intended for sale.

Legal basisPara. 3 of Art. 12 of the Law of the RK on the Regulation of Trading Activity

It is prohibited to sell tobacco products, heated tobacco products, hookah tobacco, hookah mixtures and heating systems to persons under twenty-one, or by persons under eighteen; from open packs or by the stick; through vending machines or other devices without a seller present; in the buildings and grounds of healthcare and educational organisations, sports facilities and stadiums; without identification means on the pack; where the pack holds fewer than twenty cigarettes; without a health warning and the notice banning sale to persons under twenty-one; with misleading descriptors such as "low tar", "light", "mild", "extra" or "ultra"; in sets with other goods; from self-service shelves; in shops selling children's goods; and at railway stations, bus stations, airports, ports and in hotels. Display and open demonstration are prohibited: the information is conveyed by a list of products in black letters of equal size on a white background no larger than 40 by 30 centimetres, in alphabetical order, with prices and without images. Where the buyer's age is in doubt the seller must ask for identification and refuse the sale if it is not produced. Notices banning sale to those under twenty-one and warning of the harm of smoking must be displayed at the point of sale.

Legal basisParas. 2, 3 and 4 of Art. 110 of the Code of the RK on Public Health and the Healthcare System

The seller must ensure clearly drawn-up price tags stating the name of the goods, their grade and the price per unit of weight or per item in accordance with the National Catalogue of Goods. A price tag states one price for one item, except for promotional and discounted goods and goods bought by instalments. Signs, notices, plates, price tags, menus and other visual information are displayed in Kazakh and, where necessary, also in Russian and other languages, unless legislative acts provide otherwise.

Legal basisParas. 8 and 16 of the Rules of Internal Trade

The places where goods of Kazakhstan origin are displayed are marked with a special sign or the words "Made in Kazakhstan", which may cover several such goods placed together. The law also requires trading entities to place goods of Kazakhstan origin in visually and physically accessible locations.

Legal basisRules of Internal Trade; sub-para. 1-1) of para. 1 of Art. 31 of the Law of the RK on the Regulation of Trading Activity

No. The import, production, storage, dispatch, transport for sale or distribution, sale and distribution of smokeless tobacco products, electronic consumption systems (vapes) and the flavourings and liquids for them are prohibited. The Code defines vapes as electronic nicotine delivery systems and systems delivering non-nicotine products — devices, including electronic cigarettes, that heat a liquid with or without nicotine to produce an inhaled aerosol. The production, sale and distribution of goods imitating tobacco products are separately prohibited.

Legal basisParas. 9 and 10 of Art. 110 and sub-para. 294-1) of Art. 1 of the Code of the RK on Public Health and the Healthcare System

Advertising, whatever its form or medium of distribution, including in electronic commerce, must be accurate and recognisable as advertising at the moment it is presented. It is distributed in Kazakh and, at the advertiser's discretion, also in Russian and other languages; a translation must not distort its essential meaning. Advertising of goods prohibited from production and sale is not permitted. Where the advertiser's activity is licensed, the licence number and the name of the issuing authority must be stated when advertising the goods and the advertiser itself, except in radio advertising. Prices in advertising of goods sold in Kazakhstan are stated in tenge.

Legal basisParas. 1, 2, 4 and 4-1 of Art. 6 of the Law of the RK on Advertising

The seller must allow exchange or return of a non-food product of proper quality where it has not been used and its appearance, consumer properties, seals, tags and proof of purchase are intact, within fourteen calendar days of purchase, unless the contract sets a longer period. The exceptions are medicines and medical devices, underwear, hosiery, animals and plants, goods sold by length — fabrics, knitted and curtain cloth, artificial fur, carpets, non-woven materials, ribbons, lace, braid, wires, cords, cables, linoleum, beading, film and oilcloth — and verified mobile subscriber devices.

Legal basisPara. 1 of Art. 30 of the Law of the RK on Consumer Rights Protection

If the document confirming the purchase has been lost or was for some reason not issued, the exchange or return must still be carried out provided the consumer proves the fact of purchase from that seller or manufacturer.

Legal basisPara. 1 of Art. 30 of the Law of the RK on Consumer Rights Protection

Advertising is unfair where it compares the goods with those of other persons or contains statements damaging their business reputation; misleads consumers by copying a business name, trade mark, packaging or the external appearance of goods; contains statements capable of misleading as to the nature, method of manufacture, properties, fitness for use or quantity of the goods; discredits persons who do not use the advertised goods; or advertises goods banned from advertising under the guise of other goods bearing a confusingly similar mark. Advertising is inaccurate where it contains untrue information about the nature, composition, method and date of manufacture, purpose, consumer properties, existence of a certificate of conformity, quantity and origin of the product, its availability on the market and where it can be bought, and its price.

Legal basisParas. 1 and 2 of Art. 7 of the Law of the RK on Advertising

Where the defects were not disclosed by the seller, the consumer may at their choice demand a proportionate reduction of the purchase price, free rectification of the defects, reimbursement of their own costs of rectification, replacement with goods of the same brand, replacement with the same goods of a different brand with a price adjustment, or cancellation of the contract and a refund. The right to compensation for losses remains whichever demand is chosen. Where the seller is not the manufacturer, the demands for free rectification, for replacement with the same brand and for replacement with a different brand may be brought at the buyer's option against either the seller or the manufacturer.

Legal basisPara. 1 of Art. 15 of the Law of the RK on Consumer Rights Protection

Where defects are found and replacement is demanded, the seller must replace the goods immediately or, where an additional quality inspection is needed, within thirty calendar days of the demand. If no suitable item is available at the time, replacement must be made within ten calendar days. Defective goods are replaced with new goods of the same kind that have not been used. The cost of the inspection is borne by the seller or manufacturer; if it establishes that there are no defects or that they arose after delivery through the consumer's breach of the rules of use or storage, the acts of third parties or force majeure, the consumer reimburses the cost of the inspection and the related transport costs.

Legal basisPara. 2 of Art. 30 of the Law of the RK on Consumer Rights Protection

Where an expiry date is set, demands may be made if the defects are found within that period. Where a warranty period is set, demands may be made within it, and the warranty period runs from delivery of the goods to the buyer unless the contract provides otherwise. Where neither is set, demands may be made provided the defects are found within two years of delivery, unless longer periods are set by legislation or contract.

Legal basisParas. 1 and 2 of Art. 17 of the Law of the RK on Consumer Rights Protection

For delay in meeting a consumer's demands on the exchange and return of goods of proper quality, and demands where defective goods were sold, the seller or manufacturer pays a penalty of not less than one per cent of the value of the goods for each day of delay, from the day the claim is made until the day the demands are met, unless the contract or the laws provide otherwise. Demands for the penalty are to be met voluntarily; on refusal the matter may be referred, with the parties' consent, to the bodies for pre-court settlement of consumer disputes, and where settlement proves impossible the penalty is recovered by the court.

Legal basisPara. 6 of Art. 30 of the Law of the RK on Consumer Rights Protection

The seller, manufacturer or provider must consider the claim and, where it disagrees, provide within ten calendar days of receipt a reasoned written reply supported by documents, with copies attached. A consumer whose rights have been infringed may apply to the seller, to the state bodies exercising consumer protection functions, to a body for pre-court settlement of consumer disputes, and to the court.

Legal basisPara. 2 of Art. 42-4 and Art. 42-2 of the Law of the RK on Consumer Rights Protection

Taxpayers whose turnover exceeds the turnover threshold during a calendar year are subject to mandatory registration. The threshold equals 10,000 times the monthly calculation index in force on 1 January of the relevant financial year. The application is filed no later than five working days after the threshold is exceeded, or, where a single transaction exceeds it, before that transaction takes place. Turnover made before registration is treated as taxable for the period of non-registration. The rate of value added tax is 16 per cent and applies to taxable turnover and taxable imports.

Legal basisParas. 1, 3, 4 and 6 of Art. 101 and para. 1 of Art. 503 of the Tax Code of the RK

Cash settlements must use a cash register with a data recording and transmission function whose model is on the register of cash machines. Exempt are individuals; private court enforcement officers, advocates and professional mediators; persons providing public urban transport with the issue of tickets; the National Bank; second-tier banks; religious associations; the National Postal Operator, except in places without a public telecommunications network; and persons settling through a special mobile application. The machine is registered with the tax authority before the activity begins, a receipt is issued for the amount paid, and access is given to officials of the tax authorities. Vending machines and payment terminals taking cash must be fitted with a cash register.

Legal basisParas. 1, 2 and 4 of Art. 110 and para. 1 of Art. 111 of the Tax Code of the RK

The label of pre-packed food must state the name of the product; its composition, save in the cases provided for by the regulation; the quantity; the date of manufacture; the expiry date; the storage conditions set by the manufacturer or prescribed by technical regulations and, for food whose quality and safety change once the pack is opened, the storage conditions after opening; the name and location of the manufacturer and, in the established cases, of the person authorised by the manufacturer and of the importer; recommendations and restrictions on use, including preparation, where use without them is difficult or may cause harm; nutritional values; information on the presence of components produced using genetically modified organisms; and the single mark of product circulation on the market of the Customs Union member states.

Legal basisPara. 1 of Part 4.1 of Art. 4 of TR CU 022/2011 on food product labelling

Labelling of pre-packed food applied as text must be in Russian and in the state language of the Customs Union member state where its legislation so requires, save in the cases expressly set out in the regulation. In Kazakhstan the national technical regulation additionally requires that consumer information and the text of the labelling be given in the state language and in Russian, placed on each unit of product in a position convenient for reading, and presented in a clear and easily legible form.

Legal basisPara. 2 of Part 4.1 of Art. 4 of TR CU 022/2011; paras. 8, 9 and 10 of the technical regulation "Requirements for product labelling"

Components whose consumption may cause allergic reactions or which are contraindicated in certain conditions, and which are expressly listed in the regulation, must be stated in the composition of the food product regardless of their quantity. This applies to food additives, flavourings and biologically active additives as well.

Legal basisPart 4.4 of Art. 4 of TR CU 022/2011 on food product labelling

If the manufacturer did not use genetically modified organisms in producing the food, a GMO content of 0.9 per cent or less counts as an accidental or technically unavoidable admixture, and the product is not treated as containing GMOs; in that case the label need not state the presence of GMOs. Otherwise, information on components produced using GMOs forms part of the mandatory labelling.

Legal basisPart 4.11 and para. 1 of Part 4.1 of Art. 4 of TR CU 022/2011 on food product labelling

The format depends on the length of the period: for a shelf life of up to 72 hours the label states "best before" with the hour, day and month; for a shelf life from 72 hours to three months, "best before" with the day, month and year. The expiry date is one of the mandatory items of labelling, alongside the date of manufacture and the storage conditions.

Legal basisPart 4.7 and para. 1 of Part 4.1 of Art. 4 of TR CU 022/2011 on food product labelling

The label must state the name and title of the product; the title given by the manufacturer may not be identical or confusingly similar to the trade name of a registered medicinal product or the name of a medical device. It must also state the purpose of the product where this does not follow from its name, and the name and location of the manufacturer. Cosmetics intended for children must carry corresponding information in the product name, the series name or the statement of purpose; children's cosmetics must state the age of the children for whom they are intended, and family cosmetics the minimum age of users.

Legal basisPara. 9.2 of TR CU 009/2011 on the safety of perfumery and cosmetic products

The regulation provides two forms: confirmation of conformity by declaration of conformity, and state registration. Circulation of the product within the customs territory of the Union during the validity of the declaration of conformity or the certificate of state registration is permitted until the end of the shelf life set by the manufacturer.

Legal basisTR CU 009/2011 on the safety of perfumery and cosmetic products (conformity assessment provisions)

The list covers products for artificial tanning; for whitening and lightening the skin; cosmetics for tattooing; intimate cosmetics; products for individual protection of the skin against harmful occupational factors; children's cosmetics; products for chemical colouring, lightening and highlighting of hair, including eyebrows and eyelashes; products for chemical perming and straightening of hair, including eyebrows and eyelashes; products manufactured using nanomaterials; depilatory products; and the other items expressly named in the annex to the regulation.

Legal basisAnnex 12 to TR CU 009/2011 on the safety of perfumery and cosmetic products

Special stamps preventing forgery and reuse are applied to the pack. Consumer information is placed on the consumer packaging or insert leaflet and must state the type and name of the tobacco product; details of the legal entity authorised by the manufacturer to receive consumer complaints and its location; the name and location of the manufacturer, authorised person or importer; whether the product has a filter, for filter smoking products; the number of items or net weight; a warning about the harm of consuming tobacco products; the single mark of product circulation on the market of the Customs Union member states; and the maximum retail price with the month and year of manufacture, over which no packaging elements may be applied and no stamps affixed.

Legal basisParas. 18 and 19 of Section VII of TR CU 035/2014 on tobacco products

Prohibited are words and phrases creating the impression that the product is less harmful than other tobacco products — including "low tar", "light", "very light", "mild", "extra" and "ultra" — as well as words, signs and symbols that associate the tobacco product with a food product or food additive, or that directly or indirectly create the false impression that it has the flavour of a food product. The ban extends to words of the same root, their equivalents in foreign languages and transliterated equivalents.

Legal basisSection VII of TR CU 035/2014 on tobacco products

Products that have passed conformity assessment against the requirements of the technical regulation and the other applicable regulations of the Customs Union are marked with the single mark of product circulation on the market of the member states. The marking is applied before the product is released into circulation and is placed on the consumer packaging or insert leaflet by any method giving a clear and legible image. The presence of the mark evidences the product's conformity with the applicable technical regulations.

Legal basisParas. 44–47 of Section XI of TR CU 035/2014; para. 1 of Part 4.1 of Art. 4 of TR CU 022/2011