LAW No. 463-IV OF 20th JULY 2011 OF THE REPUBLIC OF KAZAKHSTAN

CONCERNING THE STATE REGULATION OF PRODUCTION AND TURNOVER OF CERTAIN KINDS OF PETROLEUM PRODUCTS 

AMENDMENTS AND ADDITIONS INTRODUCED BY:
1)  Law No. 538-IV of 12th January 2012 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Stock Market Development in the Republic of Kazakhstan. (Article: 16, 26). Effective January 1, 2012; 
2)  Law No. 21 of 22nd June 2012 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Main Pipelines and Taxation. (Articles: 1, 7 and 18). Effective date n/a; 
3)  Law No. 36 of 10th July 2012 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of the Reduction of Permissive Documents and Optimisation of Controlling and Supervisory Functions of the State Bodies. (Articles: 1, 4, 6, 7, 8, 17 replaced and 21). Effective date n/a; 
4)  Law No. 60 of 24th December 2012 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of State Registration of Legal Entities and Accounting Registration of Affiliates and Representations. (Article 17). Effective date n/a; 
5)  Law No. 81 of 6th March 2013 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Competition. (Article: 23). Effective date n/a; 
6)  Law No. 152 of 5th December 2013 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Taxation. (Article 18). Effective August 10, 2011; 
7)  Law No. 159 of 13th January  2014 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Assignment of Competences of  State Bodies at Legislative and (or) Sub legislative Levels. (Articles: 7 and 9). Effective date n/a;  
       8) Law No. 189 of 11th April 2014 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of Civil Protection. (Articles: 1, 3, 6, 7, 9, 13, 18). Effective date n/a; 
         9) Law No. 203 of 16th May 2014 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Issues of the Permissive System. (Articles: 17, 21). Effective date n/a; and
           10)  Law No. 233 of 4th July 2014 of the Republic of Kazakhstan Concerning the Introduction of Amendments and Additions to Certain Legislative acts of the Republic of Kazakhstan on Issues of the Improvement of Criminal Procedural Legislation. (Articles: 1, 6, 7, 18). Effective date n/a

This Law shall regulate social relations arising in the course of production and turnover of certain kinds of petroleum products: petrol, aviation and diesel fuel, and mazut. 

The following basic concepts shall be used in this Law: 

1)  Refueling station means a technological complex equipped with facilities, which provide for storage and retail realization of petroleum products.

Refueling stations shall be subdivided into the following types:

stationary – designed for refueling of transport vehicles with petroleum products through fuel distributing columns;

container – with a ground based location of tanks for storage of petroleum products, which technological system is characterized by the location of fuel distributing columns in a container for petroleum products storage, made as a single plant item;

mobile – a mobile technological system installed on automobile chassis, trailer, semitrailer, made as a single plant item;

3)  personal identification code number means a permanent identification number, which is assigned to producers of petroleum products, wholesale suppliers of petroleum products which import petroleum products, and to each name of petroleum product, produced in the Republic of Kazakhstan or imported to the territory of the Republic of Kazakhstan, and required for the indication of a kind, grade of petroleum products in an accompanying note and declaration for petroleum products turnover; 

4)  control measurement devices mean technical installations, which measure qualitative and quantitative characteristics of petroleum products for keeping recording with the purpose of subsequent transfer to the authorized body in the area of turnover of petroleum products by means of an automated system of information on the volumes of acquisition, storage, realization, shipment of petroleum products, installed at producers of petroleum products, wholesale suppliers and retailers of petroleum products, excepting retailers of petroleum products, which sell petroleum products from mobile refueling stations;

5)  investment program means a program for investing and repayment of funds, aimed at the creation, modernization and reconstruction of the existing production capacities of petroleum products producers for a certain period for the purpose of obtaining a planned technical-and-economic effect, which includes in itself the economic indicators, including investment components which affect the petroleum products price;

6)  compounding means mixing of two or several components, including insertion of additives, dopants for the purpose of producing of petroleum products of program quality; 

7)  nonmerchantable petroleum product means a petroleum product which does not meet the requirements as established by legislation of the Republic of Kazakhstan on technical regulation;

	8)  producer of petroleum products of small capacity means a producer of petroleum products which produces petroleum products on technological installations, which design capacity contemplates the volume of processing of crude oil and/or gas condensate less than eight hundred thousand tones per year;  

9) petroleum supplier * a natural person or legal entity which supplies to a manufacturer of petroleum products, and also to petroleum processing factories situated beyond the boundaries of the Republic of Kazakhstan, crude petroleum and (or) natural gas liquids independently produced, received by the Republic of Kazakhstan as taxes payable in kind in accordance with the tax legislation of the Republic of Kazakhstan, imported or purchased directly from a subsurface user, on conditions established by this Law; 

10)  petroleum products mean certain kinds of petroleum products: petrol, aviation and diesel fuel, mazut;

11)  plan of supplies of petroleum products means a volume of monthly demands of oblasts, cities of Republic’s significance and capital city in petroleum products, produced in the Republic of Kazakhstan, for which retail realization the state regulation of prices is established; 

11-1) single operator for oil product supply means the legal entity to be determined by the Government of the Republic of Kazakhstan, whose main type of activities is oil product supply to the Armed Forces of the Republic of Kazakhstan, the Frontier Service of the National Security Committee of the Republic of Kazakhstan, the Internal Troops of the Ministry of Internal Affairs of the Republic of Kazakhstan, 

the authorised body in the sphere of civil protection, as well as the provision of services thereto associated with storage and delivery of oil products; 

12)  retail realization of petroleum products means an entrepreneurial activity on the sale of petroleum products by a physical person or legal entity for own needs with no intent of further realization;

13)  retailer of petroleum products means a physical person or legal entity which carries out retail realization of petroleum products;

14)  wholesale supplier of petroleum products means a physical person or legal entity which carries out wholesale realization of petroleum products;

15)  wholesale realization of petroleum products means an entrepreneurial activity on the sale of petroleum products to retailers of petroleum products and also to wholesale suppliers of petroleum products in the realization of petroleum products by producers of petroleum products, oil suppliers, physical persons or legal entities which carry out the realization of petroleum products imported by them, and/or wholesale suppliers of petroleum products in cases, as provided for by this Law;

16)  production of petroleum products means a range of works on processing crude oil and/or gas condensate, and also on compounding, which provides for manufacturing of petroleum products in accordance with the legislation of the Republic of Kazakhstan on technical regulation;

17)  minimum volume of petroleum products production means an amount of petroleum products not less of which a producer of petroleum products must produce monthly during a calendar year; 

18)  monitoring of production and realization of petroleum products means an analysis of demands, processes of production, realization, transportation, as well as a dynamics of wholesale and retail prices on petroleum products; 

19)  authorized body in the area of petroleum products production means a central executive body which performs management in the area of state regulation of petroleum products production;

20)  petroleum products producer means a physical person or legal entity which produces petroleum products and has a production passport;

21)  turnover of petroleum products means acquisition, storage, wholesale and retail realization, shipment, transportation, export and import of petroleum products; 

22)  authorized body in the area of petroleum products turnover means a central executive body which performs management in the area of state regulation of petroleum products turnover;

	23)  base of petroleum products means a complex of buildings and installations, which include technological equipment, tank farm, technical facilities and communications designed for reception, storage, shipment and realization of petroleum products, which complies with the requirements of the legislation of the Republic of Kazakhstan on technical regulation;  

24)  common database on production and turnover of petroleum products means an electronic database on production and turnover of petroleum products, formed on the basis of administrative data of state bodies which conduct, within their competence, state regulation of production and turnover of petroleum products; 

25)  production passport means a document of the established form, which reflects the indicators of production capacities of a producer of petroleum products, its basic characteristics, which regulate the use of the available equipment for the observance of technological process of production; 

Prior to 1 January 2015, in subparagraph 26 the words «control measurement devices» shall be considered to be «means of measurement which provide for petroleum products recording»

	26)  tank means a capacity for the reception, storage, shipment and realization of petroleum products on the base of petroleum products, owned by a wholesale supplier of petroleum products or retailer of petroleum products under the right of ownership or other lawful grounds or on production facilities of petroleum products producer equipped with control measurement devices;  

	27)  notification means a written communication sent by the authorized body in the area of petroleum products turnover to a producer, wholesale supplier or retailer of petroleum products on the elimination of violation of requirements, as established by laws of the Republic of Kazakhstan, edicts of the President of the Republic of Kazakhstan, and decrees of the Government of the Republic of Kazakhstan in the area of state regulation of production and turnover of petroleum products;  

	28)  accompanying note means a document accompanying petroleum products on the entire route from the shipper to the recipient, intended for control over turnover of petroleum products and required for the execution of operations on delivery and intake of petroleum products, as well as operations on the transfer of petroleum products to oil suppliers.  

1.  Legislation of the Republic of Kazakhstan on state regulation of production and turnover of petroleum products shall be based on the Constitution of the Republic of Kazakhstan and shall consist of this Law and other regulatory legal acts of the Republic of Kazakhstan. 

2.  If an international treaty ratified by the Republic of Kazakhstan establishes other rules than those provided for in this Law, the rules of the international treaty shall apply.

1.  This Law shall be effective in the territory of the Republic of Kazakhstan and apply to the relations in the area of production and turnover of petroleum products. 

2.  The effect of this Law shall not apply to the relations:

1)  arising in the realization of petroleum products by physical persons and/or legal entities not for the purposes of entrepreneurial activity;

2) with regard to production of oil products, arising within the frameworks of mobilisation training, mobilisation. 

State regulation of production and turnover of petroleum products shall be carried out by way of:

1)  approval for subsoil users the schedules of delivery of crude oil and/or gas condensate to producers of petroleum products for providing for the demands of domestic market of the Republic of Kazakhstan;

	2)  approval of plans of processing of oil and supplies of petroleum products;