Kyrgyzstan Market Entry

Kyrgyzstan Market Entry

Subchapters:

  • Market entry
  • Forms and conditions of operation on the market
  • Marketing and Communications
  • Issues of intellectual property protection
  • Public procurement market
  • Payment terms, payment ethics and resolution of commercial disputes
  • Visas, fees, specific conditions of travel to the territory
  • Employment of citizens from the Czech Republic
  • Fairs and events

Market entry

According to cheeroutdoor.com, customs rates result from KG’s membership in the Eurasian Economic Union. If the importer is from a country with which the Double Taxation Avoidance Agreement was signed, which has already entered into force, and if he has a confirmation that he has already paid VAT in the country of origin, then he is not required to pay VAT, or. only that part of the VAT by which the Kyrgyz VAT is higher than the VAT in the country of origin is required. Export control is enacted for some products. The range of these products corresponds to the standard common in European countries – alcohol, cigarettes, weapons and military equipment, poisons, radioactive substances, some medicines, etc. An appropriate license is required for the import and export of these goods.

Since 1993, the KG side used the “Generalized System of Preferences” – GSP when exporting to EU countries. In November 2015, the European Commission approved a proposal to grant Kyrgyzstan GSP+, which entered into force on January 27, 2016. GSP+ eliminates customs tariffs on more than 6,000 categories of goods. Kyrgyz exporters thus have the opportunity to export agricultural products to the EU at zero customs tariffs, including fruit, processed (canned) fruit, dried fruit, food products, tobacco, textile products, clothing, carpets, etc.

Forms and conditions of operation on the market

In Kyrgyzstan, there are similar types of business companies as in other countries. The most common are a limited liability company or a joint-stock company. Joint-stock companies exist in both open and closed form. In order to establish an office or a representative office or a joint venture, it is necessary to have a certified extract from the commercial register and a court-certified translation of the statute. The same applies to the establishment of a joint venture. Currently, a translation into Russian is sufficient.

Marketing and communication

There is minimal experience with advertising of Czech companies in KG, which is related to the limited export of consumer goods due to the very small local market for consumer products in our price levels. With regard to local specifics, it is necessary to recommend the local distributor/partner which marketing channels should be used. Some Czech traditional products, such as glass, Czech beer, Czech spas, etc., have a good reputation in Kyrgyzstan. When using marketing channels, it is necessary to observe the limits resulting from the predominant Muslim religion of the Kyrgyz people.

Issues of intellectual property protection

The protection of intellectual property in Kyrgyzstan is governed by a number of legal regulations governing patent protection, copyright protection, etc. Kyrgyzstan is also a contracting party to a number of inter-industry conventions in this area, for example The WIPO Copyright Treaty and The WIPO Performances and Phonograms Treaties.

Since 1998, Kyrgyzstan has been a member of the WTO.

Public procurement market

Public contracts are entered through the Internet address zakupki.gov.kg. Information about some more important tenders is distributed by the KG party through its embassies abroad.

Payment terms, payment ethics and resolution of commercial disputes

Practically, the only payment condition that is risk-free is payment 100% in advance, other payment conditions are risky, the acceptability of letters of credit must be consulted with banks in the Czech Republic.

Visas, fees, specific conditions for traveling to the territory

In order to enter and stay in the territory of a foreign country, citizens of the Czech Republic must meet the conditions set by its laws. The embassy of the given country is responsible for communicating the current conditions of entry and stay in the territory of a foreign country. The following information is intended for basic orientation. The Ministry of Foreign Affairs of the Czech Republic therefore recommends that Czech citizens check with the embassy of the country they are visiting before traveling whether the conditions for entry and stay have not changed.

On the basis of the Law of the Kyrgyz Republic No. 121 of 14/07/2012, the visa requirement for tourist trips or trips based on invitation not exceeding 60 days of stay was abolished. In addition to the visa obligation, the obligation to register was abolished. This measure applies to a total of 44 countries, including the Czech Republic. However, if the planned trip should exceed 60 days of stay, it is possible to apply for a visa at any embassy of Kyrgyzstan abroad. For trips over 60 days of stay, it is necessary to apply for a visa through the territorially competent Representative Office of Kyrgyzstan in Vienna. From January 15, 2015, citizens of Kyrgyzstan can submit applications for short-term Schengen visas to the Czech Republic at the Embassy of Switzerland in Bishkek (address: 21 Erkindik blvrd., Bishkek 720040, Kyrgyzstan).

As of May 1, 2022, the obligation to present a valid vaccination certificate (the certificate of the Czech Republic was recognized) or to submit a negative PCR test for COVID-19 when entering the territory of Kyrgyzstan was abolished.

In the country it is usual to use TAXI to move around, public transport is unreliable and far from reaching European parameters.

Employment of citizens from the Czech Republic

Only a work permit is sufficient to employ a foreigner. In the local sense, this is rather a work registration, not a permit. The disadvantage of local representatives of Czech companies is often the lack of loyalty to the represented company and the search for another company that would offer a higher salary. On the contrary, the advantage is that the wage is lower than that of a seconded representative of a Czech company. The advantage of a Czech representative is the connection with the Czech (broadcasting) company and a more objective assessment of the market. The best combination seems to be a situation where the head of the representation is a Czech citizen and the secretary or assistant is a local force.

Fairs and events

More than 20 smaller exhibitions are held in Kyrgyzstan each year, mostly in Bishkek.

Exhibitions in Kyrgyzstan are organized by the company ITECA 115 A, Ibraimov str., Bishkek, Kyrgyzstan, 720000 phone: +996 312 902 966 e-mail: [email protected] website: www.iteca.kg

Kyrgyzstan Market Entry