Kazakhstan - Pricing Kazakhstan - Pricing
Key pricing components that should be considered include transport costs, duties associated with import (customs duties and fees, certification payments, etc.), 12% VAT and high expectations of profits by importers/distributors (businesses in Kazakhstan tend to charge much higher margins than in other countries).
Another factor affecting price and competitiveness of imported products is that the value-added tax of 12% must be paid on top of all customs duties and excise taxes at the time of customs clearance. Considering all the difficulties associated with customs clearance procedures, importers are advised to use the services of customs brokers.
Conditions demand that U.S. companies take into account strong competition from Russian, Chinese, Southeast Asian, and European producers. Consumers in Kazakhstan are very sensitive to prices and quality of the goods supplied, though most consumers are willing to pay premiums for uniqueness or higher quality. Higher-than-average prices, however, have to be justified by a recognizable branding, marketing, warranties or other special features.