Kazakhstan: Legislative News. May 2017

This Client Update covers the key amendments to the laws of the Republic of Kazakhstan ('RK') and various legal developments introduced in May 2017.

NOVELTIES IN LEGISLATION

The laws covered by the present Client Update are related to both public and private sectors. Some of them may be of interest to you, as they may affect your business in Kazakhstan.

We would like to draw your attention to the following legislative acts.

INTERNATIONAL TREATIES

HAGUE CONFERENCE ON PRIVATE INTERNATIONAL LAW

On 17 May 2017, the President of the RK signed the Law No. 66-VI 'On Ratification of the Charter of the Hague Conference on Private International Law'.

The Charter of the Hague Conference on Private International Law was adopted in the Hague on 31 October 1951. The Hague Conference signatories are 81 states and the European Union. The main goal of this international organization is to unify the rules of private international law, as well as to promote cooperation between the countries in this area.

The accession to the Hague Conference will allow Kazakhstan to participate in international rule-making in the area of private law, in order to ensure the effective protection of the rights of its citizens abroad.

LAWS

STATE PROCUREMENT

On 5 May 2017, the President of the RK signed the Law No. 60-VI 'On Amendments to Certain Legislative Acts on the Issues of Culture' ('the Law').

The Law provides for the certain changes to the state procurement laws (the Law of the RK 'On State Procurement' dated 4 December 2015). With the Law's enactment on 21 May 2017, the right of the service owners to amend the annual state procurement plan no more than once a month will not extend to the following cases=:

  • The state procurement by state-owned enterprises, companies, where more than fifty percent of the voting shares (participating interests in the charter capital) belong to the State, as well as their affiliates;
  • The execution of instructions, notifications of the elimination of violations detected as a result of control measures, including the results of statutory desk–top tax review;
  • The state procurement followed from clarification/adjustment of the respective budget in accordance with the Kazakhstan laws.

The Law came into force on 21 May 2017.

DEBT COLLECTION

On 6 May 2017, the President of the RK signed the Law No. 62-VI 'On Debt Collection' ('the Law').

The Law aims at creating a civilized market for debt collection services and protecting the rights of the borrowers. The Law provides for the following:

  • The procedure for registration of the company, which intends to carry out debt collection activities ('debt collection agency'). The debt collection agency must be set up in the form of business partnership;
  • The qualification requirements for the founders and heads of debt collection agencies;
  • The specific contractual requirements for the debt collection agent and the creditor;
  • The debt collection agents cannot assign debts to third parties;
  • The Law sets out the procedure and the timeframes for debt collection activities;
  • The Law sets out the responsibility of the debt collection agency's officials.

The Law came into force on 1 June 2017.

USE OF AIRSPACE AND AVIATION ACTIVITIES

On 6 May 2017, the President of the RK signed the Law No. 64- VI 'On Amendments to Certain Legislative Acts on the Use of Airspace and Aviation Activities' ('the Law').

The Law provides for numerous changes in the area of aviation aimed at bringing the national laws in compliance with the requirements and standards of the International Civil Aviation Organization (ICAO).

The Law, among others, provides for the following:

  • The procedure for the scheduled and random inspections by the authorized body in the area of civil aviation;
  • Competence of the authorized body in the field of civil aviation with respect to the matters of increasing flight safety and aviation regulation efficiency;
  • The classification criteria for substantial violation of the airspace legal requirements;
  • The certification requirements for the air navigation equipment suppliers;
  • The procedure for the registration of aircraft and any rights to them in the State Register of Civil Aircraft of the RK.

The Law came into force on 20 May 2017.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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