Khorgos International Center changes its owner
The government of Kazakhstan has handed over shares of a company managing the special economic zone called the Khorgos International Center for Border Cooperation to the administration of the Jetisu region.
«In accordance with the legislation of the Republic of Kazakhstan, 100% of shares of the company managing the Khorgos for International Center for Border Cooperation controlled by the cabinet must be handed over to the administration of the Jetisu region,» the cabinet said in a statement.
Prime Minister Alikhan Smailov has ordered the Committee of State Property and Privatization under the Ministry of Finance to «take necessary actions to fulfill the cabinet’s decision.»
Khorgos is a big trading complex built at the border between Kazakhstan and China to promote mutual trade, flow of investments and tourism. Since October 2017 the center has been operating as a special economic zone.
According to an unconsolidated report by an auditor, in 2021, Khorgos had $57.8 million in its banking account. The company’s registered capital was about $104.2 million. At the time, the company reported $1.5 million in net losses, four times less than in January 2023 ($6.5 million).
Khorgos resumed its operation on April 24, although it was supposed to resume operation in January 2023. The center didn’t work for three years due to the COVID-19 pandemic. The Khorgos complex is open seven days a week from 7 a.m. to 7 p.m. However, trading malls on the Chinese part of the center, as well as baggage drop-offs, are closed after 5:30 p.m.
The trading complex applies a visa-free regime for citizens from all over the CIS countries. Citizens of Kazakhstan can visit the center with a local ID instead of a passport. The Jetisu region authorities said that carrying cargo through the Khorgos complex is prohibited, even though visitors can bring out some things they bought inside the center. For instance, one person can take with him either two smartphones or two tablets, or one computer/laptop, or one bicycle, or one fur good, or five pieces of jewelry with no customs fee.
«Under the new rules, one person can bring out goods up to 31 kilograms in weight or cost €1,000. If there is excess weight or cost of a good, the visitor is expected to pay a fee of 30% of that good’s value (not less than €4 per kilogram). Carry-on luggage mustn’t weigh more than five kilograms; otherwise, it must be registered as baggage,» the authorities said.
The toll for visiting Khorgos is $6.76. Those who come on their own by car also must pay for parking.
