A free economic zone will soon be created at Khorgos on Kazakhstan-China border

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ALMATY (TCA) — A special economic zone with tax privileges will soon be created in the Kazakh part of the Khorgos International Centre of Boundary Cooperation (ICBC) located on the Kazakh-Chinese border in the Almaty province, ICBC Khorgos President Kaharman Jazin said at the Forum of Entrepreneurs held at Khorgos last week, the Atameken National Chamber of Entrepreneurs of Kazakhstan reported.

“The Concept envisages amendments to the Tax and Customs Codes, the Code of Health, as well as to the laws on the state border, employment of the population, special economic zones, currency regulation and currency control, mail, veterinary, plant quarantine and road transport,” Jazin said.

He said that adoption of these amendments will provide an opportunity for free movement of goods between the Kazakh and Chinese parts of ICBC Khorgos, the sale and consumption of goods and services within the territory of ICBC Khorgos. It will also solve the problems with the elimination of the quota of labor, the implementation of mutual settlements in both national and foreign currency, and the implementation of all types of state control at the checkpoint.

“For future participants of the FEZ ICBC Khorgos we provide a certain package of benefits, including exemption from land tax, land use tax, property tax, CIT by types of FEZ activity, VAT at zero rate for goods sold on the territory of FEZ. We expect that the Presidential Decree on the creation of the FEZ ICBC Khorgos and the Law ‘On the introduction of changes and additions to some legislative acts on the activities of ICBC Khorgos’ will be adopted before the parliamentary deputies leave for vacations,” said Jazin.

According to the General Construction Plan, trade facilities, cultural exchange sites (ethno-villages, a city of artisans), recreational facilities with recreational and sports infrastructure (amusement park, recreation complex, race track, multifunctional entertainment center), international business cooperation venues (Congress hall, business centers) will be constructed.

Today all conditions have been created for bilateral trade: visa-free stay on the territory of China (citizens of Kazakhstan and other countries can freely be in China without a visa for 30 days without an identity card and passport), the construction of infrastructure at the expense of public funds (road, engineering, communication networks are built at the expense of the state budget), and free movement on the territory of ICBC Khorgos.

Sergey Kwan

TCA