February2, 2015

economy.. 2

In the Depth of Uzbek Soils. 2

BUSINESS CLIMATE.. 2

Privileges and preferences granted to entrepreneurs exporting their own produce. 2

Exhibiton.. 5

Uzbekistan to participate in Expo Milano 2015. 5

 

economy

In the Depth of Uzbek Soils

Uzbekistan ranks among the region’s mining leaders. However, the domestic companies do not stop at what they have achieved, and keep exploring new frontiers. The long-term plans envisage implementation of investment projects on expansion and diversification of products.

Uzbekistan is often called the natural larder of Central Asia. The republic is the concentration of almost entire periodic table, it has significant reserves of copper, gold, silver, the feedstock for chemical and metallurgical industries. New mines are launched every year. The projects on extraction and processing of hydrocarbons are nearing completion. It is important to not just extract minerals from the subsoils, but process them well, thus providing domestic and foreign enterprises with both raw materials and finished products. One of the leaders in this direction – Almalyk Mining and Smelting Plant has been the field leader.

The company ranks among the world’s leading manufacturers and is based on the fields in Tashkent, Jizzakh and Namangan regions. The cutting edge industrial complex includes three outdoor and four underground mines, five enrichment plants, two metallurgical plants, sulfuric acid productions, mechanical repair and lime plants, and other structural units.

Several recent successful projects have allowed optimizing and reducing costs of finished products, introducing energy saving technologies and equipment, increasing productivity. Last year, AMSP experts completed installation of equipment at the sulfuric acid shop of the copper-smelting plant, established the production of equipment for mining works, and launched a cement plant in Jizzakh region.

Not less work is scheduled for this year. It is scheduled to start the construction of the copper smelting furnace, which would allow increasing production and annual savings of about 43 million cubic meters of gas, as well as improving the state of environment. It will be launched in 2016. Another interesting project of 2015 envisages the involvement of Kalmakyr deposits in refining off-balance dump ores. It will allow additional processing of four million tons of ore per year. The construction of the underground mine at the Samarchuk site of Qizil Olma field will begin in Angren. A bit later it is projected to build a mine at the “Mezhdurechiye” site of the same field. The reconstruction of a cement plant and increasing its capacity up to one million tons is scheduled for 201 5 as well.

(Source: «Uzbekistan Today» newspaper)

BUSINESS CLIMATE

Privileges and preferences granted to entrepreneurs exporting their own produce

Over the years of independence Uzbekistan has been making persistent efforts to create a favourable business climate. The Republic has signed many fundamental conventions and other international agreements, undertaking serious obligations specified there. In addition, the country worked out and approved a number of legislative documents intended to reinforce the national foreign economic policy.

Pursuant to Part 2, Article 3 of the Law of the Republic of Uzbekistan, “On foreign economic activity” (an improved wording), legal entities registered in the Republic of Uzbekistan and physical persons residing on its territory on a permanent basis and registered as individual entrepreneurs are entitled to conduct foreign economic activity.

As well as that, several normative-legal documents have been passed in Uzbekistan, with a view to boosting the production of competitive goods, further diversifying the structure of exports and augmenting the positive balance of the nation’s foreign trade turnover.

In particular, according to Article 230 of the Tax Code of the Republic of Uzbekistan, it is established that export sales of excise-liable goods by their own producers are exempt from the excise tax. Several categories of excise-liable commodities, whose list is determined by the Cabinet of Ministers of the Republic of Uzbekistan, are excluded from a given provision.

At the same time, export sales turnover (outside of precious metals) for foreign currency is subject to the imposition of value-added tax at the zero rate.

For enterprises-exporters (save for those exporting raw materials), the rates of profit tax and property tax are reduced depending on the share in the total sales volume of exported goods (works, services) of their own production sold for freely convertible currency:

• The share of exports ranging between 15 per cent and 30 per cent – by 30 per cent;
• The share of exports amounting to and exceeding 30 per cent – 2-fold.
• What’s more, the rate of uniform tax payment for micro-firms and small enterprises is reduced:
• By 30 per cent – when the exports share in the total sales volume ranges between 15 per cent and 30 per cent;
• Twice as much – when the exports share exceeds 30 per cent.

The Republic’s textile enterprises may enjoy exemption, till 1^st January 2016, from property tax, if they sell 80 per cent and over of their output (including semi-finished products such as yarn, fabrics, stockinet and cotton-spinning waste) for freely convertible currency.

Export customs duties on all categories of goods (works, services) are abolished. The exportation of goods, with   the exception of specific ones, doesn’t require licensing.

New rates of fees are approved for customs registration, due to be paid when exporting goods. They are halved at an average, compared with the existing exports rates.

Micro-firms and small enterprises are exempt from the obligation to sell 50 per cent of revenues they receive from the exportation of their own goods (works, services).

At the same time, the output of one’s own production is determined on the basis of the Rules on the determination of goods (works, services) of own production. This is needed to find out whether or not certain privileges and preferences may be applicable to exports for freely convertible currency (registered with the Ministry of Justice, No 2195 as of 16^th February 2011).

The Resolution of the President of the Republic of Uzbekistan No ПП-1604, “On measures to eliminate bureaucratic barriers on the way to further expand the freedom of entrepreneurial activity” dated 25^th August 2011 introduces the following provisions, with effect from 1^st October 2011:

• The term of consideration and coordination with authorized bodies of applications requesting the allotment of land plots needed to build small-scale industrial facilities should not exceed one month;
• Local state authorities, in conjunction with the State Committee on Competition of the Republic of Uzbekistan, are obliged to consider, within 7 days, the applications from small businesses and private entrepreneurs for the renting of temporary empty and unused state-owned premises, in order to install their production facilities there;
• The permitting documents stipulated in Uzbek law, including those required to build and reconstruct production facilities, are issued to small businesses and private entrepreneurs on a “one-counter” basis. At the same time, the obligation to coordinate such documents is imposed on authorized state bodies;
• The term fixed for the issuance of permitting documents should not exceed 30 working days since the submission of a corresponding application by an entrepreneur, with the only exception covering separate specific lines of activity, determined by the Cabinet of Ministers of the Republic of Uzbekistan.

In addition, a given Presidential Resolution stipulates that starting 1^st October 2011, contracts to export goods (works, services) signed by micro-firms and small enterprises are registered with state customs authorities at customs posts directly in the course of customs registration procedures. This provision, however, doesn’t apply to the exports of raw materials, whose list has been approved by the October 10^th, 1997 Presidential Decree No УП-1871.

In 2011, a special foreign trade company has been set up following a proposal put forward by the Ministry of Foreign Economic Relations, Investment and Trade of the Republic of Uzbekistan. Called Uztadbirkorexport, the company is designed to export goods made by small businesses and private entrepreneurs. Today its branches operate all over the country.

The company’s major tasks encompass:

• Rendering assistance to small businesses and private entrepreneurs in exporting their goods (works, services) under direct export contracts, as well as via its foreign firms;
• Organizing the pre-export funding on the security of effective contracts for the exportation of produce made by small businesses and private entrepreneurs;
• Supplying technological equipment, spare parts, components, raw stuff and materials (not produced domestically) under the orders placed by small enterprises and private entrepreneurs;
• Assisting small businesses in the certification of their exportable goods; organizing all sorts of advertising events and participation of small businesses and private entrepreneurs in international fairs and exhibitions; providing interested small businesses and private entrepreneurs with information and expert advice.

In keeping with the Resolution of the President of the Republic of Uzbekistan No ПП-2022, “On additional measures to back the exports activity carried out by small businesses and private entrepreneurs” as of August 8^th, 2013, a special organization was set up – the Foundation for Support of Exports by Small Businesses and Private Entrepreneurs, with a network of territorial branches.

The main tasks and directions of the Foundation’s performance are as follows:

• To conduct careful marketing studies of foreign markets, in a move to explore the current and perspective market conditions, to identify the prospects of exporting goods (works, services) produced by indigenous small businesses and private entrepreneurs;
• To systematically analyze the range of commodities turned out by small enterprises and private entrepreneurs; to assess the level of their competitiveness in foreign markets; to create corresponding databases and elaborate, on their basis, proposals for ensuring the conformity of home-made exportables with the world and regional demand;
• To provide legal, financial and organizational services aimed at promoting the output of small businesses and private entrepreneurs to foreign markets, looking for potential buyers, preparing and signing contracts, accompanying export transactions, protecting Uzbek exporters from potential risks, obtaining and paying for necessary licences, certificates and other permits and duties, as required by legislation of foreign countries;
• To render assistance in expanding the participation of small businesses and private entrepreneurs in foreign tenders, as well as in organizing contacts between local manufacturers and foreign buyers through fairs, exhibitions, round-table discussion etc.

Moreover, the government of the Republic of Uzbekistan, together with interested ministries and departments, is busy creating more propitious conditions for enterprises-exporters.

(Source: «Business partner.uz» newspaper)

Exhibiton

Uzbekistan to participate in Expo Milano 2015

Uzbekistan will participate in the exhibition Expo Milano 2015, which will be held in Italian city of Milan from 1 May to 31 October 2015.

Uzbekistan will participate in the exhibition with single pavilion in line with the presidential resolution from 29 December 2014. The pavilion will be divided into four sections – Economy, Agriculture, Food Industry, Culture and National Cuisine.

The delegation of Uzbekistan will include companies and organizations, which represent various industries of economy.

It is expected that over 1000 companies from 150 countries will participate in the exhibition, which is conducted under motto “Feeding planet, energy for life”. It is expected that over 30 million people will visit the event.

(Source: UzDaily.com)

 

 

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