KAZAKHSTAN: EXBS ADVISOR'S REPORTING CABLE (OCTOBER

UNCLAS SECTION 01 OF 03 ASTANA 002003 SIPDIS DEPT FOR SCA/CEN DEPT ALSO FOR ISN/ECC JFRIEDMAN, ACHURCH, JHARTSHORN, SROBINSON DEPT ALSO FOR ISN/ECC-AMT LSPRINGER, DLYONS DEPT ALSO FOR EUR/ACE DFISCHER DEPT ALSO FOR SCA/RA JSPILSBURY CBP FORINA KCHAISSON AND BPICKETT ENERGY FOR NNSA CWALKER, TPERRY, EDESCHLER DOC FOR DCREED AMEMBASSY BERLIN FOR CUSTOMS ATTACHE AMEMBASSY TASHKENT, BISHKEK, BAKU, DUSHANBE AND ASHGABAT FOR EXBS ADVISORS E.O. 12958: N/A TAGS: PARM PREL ETTC MNUC KNNP KSTC KZ SUBJECT: KAZAKHSTAN: EXBS ADVISOR'S REPORTING CABLE (OCTOBER 2009) ASTANA 00002003 001.2 OF 003 ¶I. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS: NONE II. COMPLETED ACTIONS FOR THE REPORTING PERIOD: ¶A. SITE ASSESSMENTS AND MEETINGS CONDUCTED ¶1. October 8, EXBS Advisor had his initial meeting with Border Guard leadership. The Deputy Chairman was unavailable so the meeting was chaired by Admiral Kenzhebergen Abikeyev, Commander of the Kazakhstan Maritime Border Guards. Admiral Abikeyev welcomed the advisor and thanked him for all the support EXBS has given in the past and expressed his hopes for further support in the future. He then discussed some of the threats and challenges facing the border guards, elaborating on the diverse border conditions and threats ranging from narcotics to terrorism. He briefly discussed the border guards' three year plan for strengthening the Uzbek/Kazakh border, which involves portable shelters supplied by the EXBS program. Admiral Abikeyev then explained procedures for requesting meetings and visits, which requires Diplomatic Notes to the Ministry of Foreign Affairs, with the final decision being made by the National Security Chairman. (NOTE: The meeting was very short, 20 minutes, and no issues were covered in any depth. The message conveyed was one of "cautious cooperation" under the firm guidance of the KNB. END NOTE.) Advisor requested border visits to the sites on the Uzbek border where portable shelters will be deployed. ¶2. October 12-13, EXBS Advisor attended the First Preparatory Conference for the 18th OSCE Economic and Environmental Forum held in Astana. Although titled "Economic and Environmental," the two-day conference mainly dealt with transportation security and streamlining customs procedures. Delegates from over 30 OSCE countries attended the conference and discussed topics ranging from legal and regulatory procedures to infrastructure improvement. The first day focused on streamlining customs procedures, problems within the transportation infrastructure, and simplifying customs clearance procedures. Several concepts were introduced ranging from literally no control over goods to complex clearance procedures. The two main concepts were "one stop shop" where representatives of all required agencies are located at the port of entry and "single window" where documents are transmitted to a single database which is accessible by all agencies for clearance. Kazakhstan has recently introduced one stop shop as their clearance procedure and has noted considerable time savings at the ports of entry. Most agreed that customs clearance procedures need to be standardized and streamlined; however this process will require changes in legal and regulatory frameworks, which can only be achieved by government cooperation on the bilateral and multilateral level. The second day focused on trade facilitation, strengthening private-public partnerships, modernizing national transit systems, and security at border crossing points. Border security can be strengthened by utilizing an integrated border management concept, which requires high level government cooperation to ensure interagency cooperation as well as cross-border cooperation. The bottom line is that trust must exist between governments, agencies, and the private sector before real progress can be made in streamlining trade facilitation. ¶3. October 14, EXBS Advisor briefed a team from the Government Accounting Office (GAO) on the EXBS program. The team was in Astana to evaluate the 1206 program operated by the Office of Military ASTANA 00002003 002.2 OF 003 Cooperation. ¶4. October 21, EXBS Advisor attended the International Donor Coordination meeting hosted by EU BOMCA. Representatives from OSCE, UNHCR, UNODC, UNDP, BOMCA, and the Embassies of Lithuania, France, UK, Czech Republic, and Russian Federation gave updates on ongoing projects and briefed on plans for future engagement on border security projects. ¶5. October 22, Advisor briefed members of CAPSTONE on the EXBS program in Kazakhstan and answered questions on border security trends and capabilities. ¶6. October 26, Advisor met with Mr. Nurlan Zhussupbekov and Mr. Turmakhan Orazanbet, export control experts from the Export Control and Licensing Department of the Ministry of Industry and Trade. They gave advisor a brief overview on the export control and licensing systems in Kazakhstan. We discussed dual use and munitions/military use lists, procedures for license application, volume of licenses processed, and training provided. Mr. Zhussupbekov briefed advisor that a new procedure has been approved and will be adopted before the year's end. The new procedure will provide for a "single window" where all information will come to the licensing department for coordination between the required ministries. Currently, the system requires the exporter to coordinate letters between the required ministries and submit a completed package to the licensing department for licensing determination, a process which takes anywhere from 30 days to four months. The new procedure, by regulation, must be completed within 30 days. Mr. Zhussupbekov expressed concern that the 30-day time limit wasn't enough time to give the process due diligence and fears that it will weaken the licensing process. ¶B. TRAINING COURSES CONDUCTED DURING THE REPORTING PERIOD None ¶C. EQUIPMENT DELIVERED DURING THE REPORTING PERIOD None ¶D. IMMINENT TRAINING OR EQUIPMENT STATUS UPDATE TRAINING: International Rail Interdiction Training scheduled for November 16 - 20 in El Paso Texas has been cancelled due to border guard and customs inability to fill class slots. EQUIPMENT: ¶1. The Regional Procurement Support Office/Frankfurt (RPSO) executed a contract for the procurement of five (5) portable modular shelter complexes valued at $1,178,330. These shelters are part of the Kazakhstan Green Border Project and will be purchased using EXBS and NSOI provided funding. Delivery of the first shelter is scheduled for October 13. ¶2. The Regional Procurement Support Office/Frankfurt (RPSO) executed a contract for the procurement of five (5) X-ray baggage screening systems valued at $620,565 for the Kazakhstan Customs Control Committee. Delivery date pending. ¶E. SIGNIFICANT DEVELOPMENTS IN EXPORT CONTROLS, NONPROLIFERATION, OR ASTANA 00002003 003.2 OF 003 RELATED BORDER SECURITY None ¶F. CASPIAN SECURITY INFORMATION None III. RED FLAG ISSUES: None HOAGLAND