Your Kazakh Supplier Took a Prepayment and Did Not Ship: How to Get Your Money Back

This is the most common situation for foreign buyers: money has been sent to a Kazakh supplier, but the goods were never shipped or only partly shipped. The good news: a prepayment is one of the easiest debts to prove.

What you are entitled to

If the seller received a prepayment and did not deliver the goods on time, the buyer may demand either delivery of the paid goods or a refund of the prepayment. In addition, you can claim:

• a penalty, if the contract sets one;
• if there is no penalty, interest for the use of another’s money under Article 353 of the Civil Code of Kazakhstan at the National Bank base rate;
• damages, for example if you had to buy the goods at a higher price from another supplier.

What evidence you need

• the contract or invoice confirming the delivery terms;
• the payment order or SWIFT confirmation;
• correspondence in which the supplier confirms receiving the money, promises shipment or asks for more time;
• for partial delivery, delivery notes for what was actually shipped.

Step by step

• A demand letter requiring a refund by a specific date. Some suppliers pay back at this stage.
• A check of the supplier: is the company active, does it have accounts and assets, is it in bankruptcy.
• A claim in a Kazakh court together with a request to freeze the seller’s accounts. The freeze prevents your own money from being moved while the dispute is pending.
• Enforcement of the judgment through a private bailiff until the money actually reaches your account.

If the seller cites force majeure

Force majeure does not release the seller from refunding a prepayment: even if delivery became impossible, money for goods not delivered must be returned.

Time limits

The general limitation period in Kazakhstan is three years. Do not delay: the sooner the claim is filed and the accounts are frozen, the better the chance that the money is still there.

How much it costs

Document review and opinion: 500 USD. Handling the case: 3 to 10 percent of the debt. State court fee: 3 percent of the debt. You do not need to come to Kazakhstan: all work is done remotely.