KAZAKHSTAN
Since November 2015, last amended in December 2023
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Local content requirements (LCRs) on ICT goods for the commercial market
Law No. 418-V ZRK of the Republic of Kazakhstan on Informatization (Қазақстан Республикасының Ақпараттандыру туралы Заңы 2015 жылғы 24 қарашадағы No. 418-V ҚРЗ)
According to Art. 7.6 of the Informatization Law, the central executive body carrying out state regulation in the field of electronic industry is tasked with establishing a unified register of trusted software and electronic products. According to Art. 54.3.1, for the purposes of state security, only approved software may be used for public procurement and for critical information and communication infrastructure, whether state-owned or private, including telecommunication infrastructure. In addition, it is reported that the local content for this software must not be less than 70%.
Coverage Horizontal
KAZAKHSTAN
Since July 2004, last amended in September 2022
Pillar Cross-border data policies |
Indicator Infrastructure requirement
Law of the Republic of Kazakhstan of July 5, 2004 No. 567-II "On Communications" (Қазақстан Республикасының 2004 жылғы 5 шілдедегі N 567 Заңы Байланыс туралы)
Art. 21 of the Law of the Republic of Kazakhstan on Communications stipulates that operators of communication networks of all categories included in the unified telecommunications network of the Republic of Kazakhstan shall be obliged to create at their own expense a system of centralised management of their networks, which must be located on the territory of the Republic of Kazakhstan.
Coverage Telecommunications sector
KAZAKHSTAN
Since May 2013, as amended in December 2017, entry into force in January 2018, last amended in 2022
Pillar Cross-border data policies |
Indicator Conditional flow regime
Law of the Republic of Kazakhstan of 21 May 2013 No. 94-V on Personal Data and Its Protection (Қазақстан Республикасының 2013 жылғы 21 мамырдағы № 94-V Заңы Дербес деректер және оларды қорғау туралы)
In addition to the legal requirement of local processing of personal data in Kazakhstan introduced in 2015 in the Personal Data Law (Art. 12.2), pursuant to Art. 16.2 of the Law, a copy of personal data may only be transferred from Kazakhstan to a foreign country (including for purposes of processing) without prior permission from the personal data subject only if the recipient of the personal data is located in a country that protects personal data (at either the national level (by adopting national laws and regulations) or the international level (through international treaties). Pursuant to Art. 16.3 of the Personal Data Law, if no such protection is available, cross-border transfers of personal data are only possible if:
- The subject gives specific consent;
- In cases specified by international treaties ratified by Kazakhstan;
- In cases stipulated in the laws of Kazakhstan in order to protect the constitutional order, public order, rights and freedoms of an individual and a citizen, and public health and morality; and
- In the case of the protection of the constitutional rights of an individual and citizen, where getting the consent of the subject or their legal representative is impossible.
It is reported that national legislation does not specify a list of countries to which the transfer of data is prohibited, nor are there any criteria listed for determining the countries that provide a proper level of protection of personal data.
- The subject gives specific consent;
- In cases specified by international treaties ratified by Kazakhstan;
- In cases stipulated in the laws of Kazakhstan in order to protect the constitutional order, public order, rights and freedoms of an individual and a citizen, and public health and morality; and
- In the case of the protection of the constitutional rights of an individual and citizen, where getting the consent of the subject or their legal representative is impossible.
It is reported that national legislation does not specify a list of countries to which the transfer of data is prohibited, nor are there any criteria listed for determining the countries that provide a proper level of protection of personal data.
Coverage Horizontal
KAZAKHSTAN
N/A
Pillar Cross-border data policies |
Indicator Participation in trade agreements committing to open cross-border data flows
Lack of participation in agreements with binding commitments on data flows
Kazakhstan has not joined any agreement with binding commitments to open transfers of data across borders.
Coverage Horizontal
KAZAKHSTAN
Since November 2015, last amended in December 2023
Since March 2018
Since March 2018
Pillar Intellectual Property Rights (IPRs) |
Indicator Mandatory disclosure of business trade secrets such as algorithms or source code
Law No. 418-V ZRK of the Republic of Kazakhstan on Informatization (Қазақстан Республикасының Ақпараттандыру туралы Заңы 2015 жылғы 24 қарашадағы № 418-V ҚРЗ)
Order No. 53/НК of the Minister of Defence and Aerospace Industry of the Republic of Kazakhstan on the Approval of the Rules for the Formation and Maintenance of a Register of Trusted Software and Electronics Industry Products, as well as Criteria for Including Software and Electronics Industry Products in the Register of Trusted Software and Electronics Industry Products (Приказ Министра оборонной и аэрокосмической промышленности Республики Казахстан от 28 марта 2018 года № 53/НҚ Об утверждении Правил формирования и ведения реестра доверенного программного обеспечения и продукции электронной промышленности, а также критериев по включению программного обеспечения и продукции электронной промышленности в реестр доверенного программного обеспечения и продукции электронной промышленности)
Order No. 53/НК of the Minister of Defence and Aerospace Industry of the Republic of Kazakhstan on the Approval of the Rules for the Formation and Maintenance of a Register of Trusted Software and Electronics Industry Products, as well as Criteria for Including Software and Electronics Industry Products in the Register of Trusted Software and Electronics Industry Products (Приказ Министра оборонной и аэрокосмической промышленности Республики Казахстан от 28 марта 2018 года № 53/НҚ Об утверждении Правил формирования и ведения реестра доверенного программного обеспечения и продукции электронной промышленности, а также критериев по включению программного обеспечения и продукции электронной промышленности в реестр доверенного программного обеспечения и продукции электронной промышленности)
According to Art. 7.6 of the Informatization Law, the central executive body carrying out state regulation in the field of electronic industry is tasked with establishing a unified register of trusted software and electronic products. According to Art. 54.3.1, for the purposes of state security, only approved software may be used for public procurement and for critical information and communication infrastructure, whether state-owned or private, including telecommunication infrastructure. To become part of the register, the software applicant must transfer (i) source program codes for accounting and storage; (ii) source program codes (if any) and; (iii) a set of configurations for the licensed software of "e-government" information technology objects, as stated paragraphs 10, 11, 12 and 13 of the Order of the Minister of defence and Aerospace Industry of the Republic of Kazakhstan No. 53/НК (Rules for the formation and maintenance of a register of trusted products of the electronics and software industry, as well as the criteria for including products of the electronics industry and trusted software in the register of trusted products of the electronics and software industry). In addition, it is reported that the local content for this software must not be less than 70%.
Coverage Software
Sources
KAZAKHSTAN
Since December 1994, entry into force in March 1995, last amended in January 2016
Since October 2015, entry into force in January 2016
Since October 2015, entry into force in January 2016
Pillar Intellectual Property Rights (IPRs) |
Indicator Effective protection covering trade secrets
Civil Code of the Republic of Kazakhstan (Қазақстан Республикасының Азаматтық Кодексi)
Enterprise Code of the Republic of Kazakhstan (Қазақстан Республикасының Кәсіпкерлік Кодексі)
Enterprise Code of the Republic of Kazakhstan (Қазақстан Республикасының Кәсіпкерлік Кодексі)
The Civil Code of the Republic of Kazakhstan and the Enterprise Code of the Republic of Kazakhstan provide a framework for the effective protection of trade secrets. According to Art. 126.1 and 1017.1 of the Civil Code of the Republic of Kazakhstan, a trade secret comprises valuable information, including secrets of production (know-how), production technology, management model, as well as ways and methods of increasing profits. In addition, according to Art. 28 of the Enterprise Code of the Republic of Kazakhstan, among other provisions, the protection of trade secrets consists of prohibiting the unlawful receipt, distribution or use of information constituting a trade secret in accordance with this Code and the legislation of the Republic of Kazakhstan. This regulatory framework includes remedies and penalties for the disclosure of trade secrets.
Coverage Horizontal
KAZAKHSTAN
N/A
Pillar Telecom infrastructure & competition |
Indicator Passive infrastructure sharing obligation
Lack of obligation to share passive infrastructure
It is reported that Kazakhstan has no obligation for passive infrastructure sharing in the country to deliver telecom services to end users, and it is not practised in the mobile sector and in the fixed sector based on commercial agreements.
Coverage Telecommunications sector
KAZAKHSTAN
Reported in 2019, last reported in 2024
Pillar Telecom infrastructure & competition |
Indicator Maximum foreign equity share for investment in the telecommunication sector
Restriction on foreign ownership of state-controlled enterprise
In 2016, the country formally removed a 49% limit on foreign ownership of telecom companies, except for KazakhTeleCom. As of April 2024, the state-owned 71.3% of Kazakhtelecom through Samruk-Kazyna, its sovereign wealth fund.
Coverage KazakhTeleCom
Sources
- https://web.archive.org/web/20231216205632/https://www.state.gov/reports/2023-investment-climate-statements/Kazakhstan/
- https://web.archive.org/web/20231208130900/https://www.state.gov/reports/2019-investment-climate-statements/kazakhstan/
- https://web.archive.org/web/20220928025237/https://kase.kz/en/issuers/KZTK/
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KAZAKHSTAN
Reported in 2022, last reported in 2024
Pillar Telecom infrastructure & competition |
Indicator Presence of shares owned by the government in telecom companies
Presence of state-owned telecommunications operator
As of April 2024, the state held a 71.3% stake in the country’s principal telecommunications operator, Kazakhtelecom, through its sovereign wealth fund, Samruk-Kazyna.
Coverage KazakhTeleCom
Sources
- https://web.archive.org/web/20220928025237/https://kase.kz/en/issuers/KZTK/
- https://web.archive.org/web/20230328101640/https://telecom.kz/en/pages/11893/172452
- https://web.archive.org/web/20231216205632/https://www.state.gov/reports/2023-investment-climate-statements/Kazakhstan/
- https://web.archive.org/web/20240604082426/https://www.state.gov/reports/2022-investment-climate-statements/kazakhstan/
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KAZAKHSTAN
N/A
Pillar Telecom infrastructure & competition |
Indicator Functional/accounting separation for operators with significant market power
Lack of mandatory accounting separation for dominant network operators
It is reported that Kazakhstan does not mandate accounting separation for operators with significant market power (SMP) in the telecom market. However, functional separation has been an obligation since 2013.
Coverage Telecommunications sector
KAZAKHSTAN
Reported in 2020, last reported in 2023
Pillar Telecom infrastructure & competition |
Indicator Licensing restrictions to operate in the telecom market
Complaints on telecom licensing requirements
It is reported that the telecommunication companies are required to purchase and install equipment related to the state’s System for Operational Investigative Measures (SORM) and to cover costs related to the database of International Mobile Equipment Identity (IMEI) codes and to pay regular fees to the State Radio Frequency Service, which is the IMEI database operator. These obligations may deter new players from entering the market.
Coverage Telecommunications sector
KAZAKHSTAN
Since January 2007
Since May 2014
Since May 2014
Pillar Telecom infrastructure & competition |
Indicator Licensing restrictions to operate in the telecom market
Law of the Republic of Kazakhstan "On Licensing" (Қазақстан Республикасының Заңы "Лицензиялау туралы")
Law No. 202 on Permissions and Notifications (Қазақстан Республикасының Заңы № 202-V ҚРЗ. Рұқсаттар және хабарламалар туралы)
Law No. 202 on Permissions and Notifications (Қазақстан Республикасының Заңы № 202-V ҚРЗ. Рұқсаттар және хабарламалар туралы)
Pursuant to the Law of the Republic of Kazakhstan "On Licensing" and the Law on Permissions and Notifications, the companies providing telecommunications services require an operating license from the Ministry of Digital Development, Innovation, and Aerospace. It is reported that all telecommunications operators are legally obliged, as part of the licensing requirement, to connect their channels to a public network controlled by KazakhTelecom.
Coverage Telecommunications sector
Sources
- https://web.archive.org/web/20230127153838/https://adilet.zan.kz/eng/docs/Z070000214_
- https://web.archive.org/web/20231202011124/http://adilet.zan.kz/eng/docs/Z1400000202
- https://web.archive.org/web/20181123132018/http://www.gratanet.com/up_files/Kazakhstan_GRATA_Law_firm_(The_Technology,_Media_and_Telecommunications_Review_edition_5).pdf
- https://web.archive.org/web/20230605163604/https://adilet.zan.kz/eng/docs/Z1200000527
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KAZAKHSTAN
Since January 2012
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Screening of investment and acquisitions
Law No. 527-IV on National Security of the Republic of Kazakhstan (Қазақстан Республикасының 2012 жылғы 6 қаңтардағы № 527-IV Заңы Қазақстан Республикасының ұлттық қауіпсіздігі туралы)
According to Art. 23.6.7 of the Law on National Security, it shall be prohibited that foreigners, stateless persons, and foreign legal entities to directly and (or) indirectly own, use, dispose of and (or) manage cumulatively in excess of 49% of the voting shares, as well as stakes, units of a legal entity engaged in telecommunications as a long-distance and (or) international telecommunications operator, possessing land (cable, including fibre optic, radio relay) communication lines with no positive decision of the Government of Kazakhstan based on the opinion of the authorised body regulating the field of communications, agreed with the national security agencies. It is reported that, in practice, foreign investors must obtain a government waiver for the acquisition of more than 49% of shares in a company providing telecommunication services.
Coverage Telecommunications sector
KAZAKHSTAN
Since February 2016
Pillar Telecom infrastructure & competition |
Indicator Signature of the WTO Telecom Reference Paper
WTO Telecom Reference Paper
Kazakhstan has appended the World Trade Organization (WTO) Telecom Reference Paper to its schedule of commitments.
Coverage Telecommunications sector
Sources
- https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009-DP.aspx?language=E&CatalogueIdList=226876&CurrentCatalogueIdIndex=0&FullTextHash=&HasEnglishRecord=True&HasFrenchRecord=True&HasSpanishRecord=True
- https://web.archive.org/web/20220119043046/https://www.wto.org/english/tratop_e/serv_e/telecom_e/telecom_highlights_commit_exempt_e.htm#country
KAZAKHSTAN
Since April 2004, last amended in December 2022
Since March 2015, as amended in July 2019, last amended September 2022
Since January 2015, last amended in October 2022
Since March 2015, as amended in July 2019, last amended September 2022
Since January 2015, last amended in October 2022
Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade |
Indicator Commercial presence requirement for digital services providers
Law No. 544 on the Regulation of Trading Activities (Қазақстан Республикасының 2004 жылғы 12 сәуірдегі N 544 Заңы Сауда қызметін реттеу туралы)
Order No. 264 on the Approval of the Rules of Domestic Trade (№ 264 бұйрығы Ішкі сауда қағидаларын бекіту туралы)
Order No. 4 on the Approval of the Forms of Messages and the Principles of Receiving Messages by State Bodies, as well as on Determining the State Bodies That Carry Out the Reception of Messages ( бұйрығы № 4 Хабарламалар нысандарын және Мемлекеттік органдардың хабарламаларды қабылдау қағидаларын бекіту туралы, сондай-ақ хабарламаларды қабылдауды жүзеге асыратын мемлекеттік органдарды айқындау туралы)
Order No. 264 on the Approval of the Rules of Domestic Trade (№ 264 бұйрығы Ішкі сауда қағидаларын бекіту туралы)
Order No. 4 on the Approval of the Forms of Messages and the Principles of Receiving Messages by State Bodies, as well as on Determining the State Bodies That Carry Out the Reception of Messages ( бұйрығы № 4 Хабарламалар нысандарын және Мемлекеттік органдардың хабарламаларды қабылдау қағидаларын бекіту туралы, сондай-ақ хабарламаларды қабылдауды жүзеге асыратын мемлекеттік органдарды айқындау туралы)
In accordance with subparagraph 4-1 of Art. 7 of Law No. 544, the Minister of National Economy of Kazakhstan ordered the approval of the Rules of Domestic Trade (Order No. 264). Arts. 105-1 and 106-1 of the Rules mandate e-commerce sellers to indicate their BIN (business identification number), address of business operations on the territory of Kazakhstan and mobile telephone number registered in Kazakhstan in order to operate in the country. Additional information on this requirement is found in Annex 3-10 of Order No. 4.
Coverage E-commerce sellers
Sources
- https://web.archive.org/web/20230306172845/https://adilet.zan.kz/rus/docs/Z040000544_
- https://web.archive.org/web/20231209042313/https://adilet.zan.kz/rus/docs/V1500011148
- https://web.archive.org/web/20221202014757/https://adilet.zan.kz/rus/docs/V1500010194
- https://web.archive.org/web/20241211140854/https://sim.oecd.org/Simulator.ashx?lang=En&ds=DGSTRI&d1c=apf&d2c=kaz
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