INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 140

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July 14, 2014

INFORMATION DIGEST OF PRESS OF UZBEKISTAN # 140

July 14, 2014

Investments. 2

The procedure for issuing resolutions on the inclusion of imported technological equipment and spare parts thereto as well as components, raw stuff and materials into the category of things used in the technological process when manufacturing localized produce. 2

special industrial zone Angren.. 4

Production of technical silicon to start in SIZ «Angren». 4

Society.. 5

First “smart” class opens in Uzbekistan. 5

 

 

Investments

The procedure for issuing resolutions on the inclusion of imported technological equipment and spare parts thereto as well as components, raw stuff and materials into the category of things used in the technological process when manufacturing localized produce

In order to stimulate the further intensification of localization processes, to augment the production of modern competitive export-oriented, import-substituting finished goods, components and materials on the basis of local raw materials, to expand inter-sector industrial cooperation, including cooperation between small businesses and big enterprises of Uzbekistan, to create new jobs and to ensure, on this basis, a rise in employment and material wellbeing of the population, the following important document has been elaborated in the Republic: the State Program for Localization of Production of Finished Goods, Components and Materials on the Basis of Industrial Cooperation.

A program for the production of localized types of finished goods, the Localization Program comprises target-oriented parameters of production volumes and localization levels, as well as a list of output categories that indigenous manufacturers are recommended to turn out. The Localization Program is approved by resolutions of the Uzbek President and the government of the Republic of Uzbekistan.

A working group set up in compliance with a Presidential decree has estimated a spectrum of additional potentialities for intensifying the localization of production of finished goods, materials and components on the basis of local raw stuff, as well as for optimizing the importation of industrial output. Joining hands with ministries, departments, economic associations, the Council of Ministers of the Republic of Karakalpakstan, khokimiyats of provinces and the City of Tashkent, the working group has developed an essential document – the Complex Program for Localization of Production of Finished Goods, Components and Materials on the Basis of Local Raw Materials in 2014-2016.

The Program for Localization of Production of Finished Goods, Components and Materials in 2014-2016 has been approved by the Resolutions of the President of the Republic of Uzbekistan: “On the Program for Localization of Production of Finished Goods, Components and Materials in 2014-2016” No ПП2120 as of February 4th, 2014 and “On additional measures to swell the production of indigenous consumer goods and to expand their assortment” No ПП- 1961 as of April 20th, 2013.

Enterprises covered by the Localization Program are exempt from:

Customs payments (with the exception of duties charged for registration with customs authorities) imposed on imported technological equipment and spare parts thereto, as well as on materials and components, which are not made in the Republic and which are used in the technological process of manufacturing localized output;

Income (profit) tax and unified tax (intended for enterprises that prefer the single system of taxation) levied on goods produced under localization projects;

Property tax levied on capital production assets used in the production of localized output.

In keeping with the Regulations, “On the procedure for issuing resolutions on the inclusion of imported technological equipment and spare parts thereto, as well as components, raw stuff and materials into the category of things used in the technological process of manufacturing localized produce”, approved by the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No 154 as of July 21st, 2010, the use of goods in the technological process of production of localized output is confirmed by an appropriate resolution on the inclusion of imported technological equipment and spare parts thereto, as well as components, raw stuff and materials into the category of things used in the technological process of manufacturing localized produce, issued the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan.

To receive such a resolution, the applicant (an enterprise included in the Localization Program) should present a written application to an authorized body, within whose jurisdiction the applicant manufactures its localized produce.

The following documents (signed by the applicant’s head or a person responsible for production and stamped with the applicant’s seal) are enclosed with the application:

A certificate substantiating the need to import goods, which contains the description and purposes of imported goods, as well as information on prognosticated production volumes of localized output for the current year;

Information on production that specifies such things as the available own or leased premises and equipment (with the indication of production capacity), and manpower used in the production of localized output;

Expenditure rates per unit of localized produce, as well as the calculation of demand for goods that are required to achieve prognosticated production volumes of localized output in the current year;

Description of the technological process of manufacturing localized output;

A copy of the import contract registered with an authorized bank in keeping with the established procedure;

A copy of a resolution on CN FEA codes for imported goods;

Information from the State Statistics Committee of the Republic of Uzbekistan that not a single domestic enterprise turns out goods similar to those imported by the applicant.

If there is an enterprise in the Republic, which manufactures goods similar to those imported by the applicant, the following documents should be presented:

A resolution of the State Committee on Competition and Expediency of Importation of Goods Similar to those Made in the Republic, taking into consideration the saturation level of the home market and the amount of goods, which is needed to fulfill the prognosticated parameters of the Localization Program for the current year;

And/or a resolution of the Uzstandart Agency on incompatibility of both the parameters and quality of home-made similar goods with the parameters of imported goods.

At the same time, information and/or a resolution of the indicated authorities are valid and accepted for consideration by an authorized body within 6 months.

An application requesting the issuance of a resolution is considered within 10 working days since the date of receipt of such an application, with all the necessary documents enclosed. Besides, the applicant is obliged to ensure access to production facilities for an expert, for the latter to examine them. Access should be provided within 5 working days after an application is submitted.

The expert examines the documents presented by the applicant and, if they contain sufficient information, carries out examination of the applicant’s production process at the site of production, with a view to revealing whether all the required conditions are available for the proper use of imported goods. In addition, the expert specifies, on the basis of the documents presented, an approximate term for the use of imported goods.

If the results of examination of the applicant’s production facilities correspond to the information indicated in its documents, the expert draws up an appropriate certification of examination.

The expert’s refusal to issue a resolution should be accompanied by the indication of the following reasons for refusal:

A project’s incompatibility with the requirements of a localization-project passport;

Non-availability of corresponding information in any of the documents required for the issuance of a resolution;

Exposure of distorted information in the documents presented by the applicant;

The expert is refused access to the applicant’s production site, in order to carry out examination;

Exposure in the presented documents of the fact that there are domestic facilities manufacturing goods similar to imported ones, which can fully meet the applicant’s requirements for quality, volume and technical parameters.

The expert’s refusal to issue a resolution for other reasons is not allowed.

It is on the basis of a statement of examination that the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan issues, within 2 days, a corresponding resolution (in three copies).

The resolution covers the volume (quantity) of imported goods specified in the contract (however it should not exceed the figure, which is required for the fulfillment of production volumes prognosticated for the current year and approved by the Localization Program. The resolution is valid up to end of the current year. The extension of its term of validity is not allowed.

The applicant, with the resolution on hand, should present a declaration of the use of imported goods to the customs authority, which has registered the applicant’s contract, and to the local tax inspection, within a month after the use of imported goods is finalized.

Procedures of carrying out examination, drawing up a statement of examination or an expert resolution, and issuing a MFERIT resolution are chargeable. The applicant pays to the authorized body a fee at the rate of one minimum wage established on the territory of the Republic of Uzbekistan on the date of application. The applicant may appeal against the authorized body’s expert resolution in accordance with the established procedure.

If it is revealed that imported goods are used for purposes other than those indicated in the application, the funds released thanks to tax and customs privileges are recovered from the applicant to the state budget in accordance with the established procedure.

(Source: “Business Partner.uz” newspaper)

special industrial zone Angren

Production of technical silicon to start in SIZ «Angren»

An enterprise on production of technical silicon soon will be launched in the territory of the special industrial zone Angren.

Governor of Angren city Ibragimjon Rakhmanov said that construction works are underway at the site. He said that furnaces should be installed at the plant and by the end of July 2014 the plant will be commissioned.

He added that there is a proposal from foreign investors to launch an enterprise on production of solar panels with use of silicon, produced at new plant.

Uz-Shindong Silicon is implementing a project on construction of the plant on production of technical silicon.

The founders of Uz-Shindong Silicon are the State Committee on geology and mineral resources of Uzbekistan and Uzmetkombinat open joint stock company, Shindong Enercom Inc and its subsidiary Solartech.

The project with the cost of US$10 million will be financed due to direct investments of the founders of the venture.

The raw materials will be supplied to the plant from quartz field in Jizzakh region.

Ibragimjon Rakhmanov said that some 16 projects were approved for implementation at the special industrial zone Angren. Implementation of three projects was completed. Other projects are constructed or at the stage of agreement.

Angren special industrial zone was created on 13 April 2012 in line with the presidential decree in Tashkent region. The zone will function for 30 years.

During operation of the special industrial zone, special tax regime and customs preferences will be applied in its territory. Administrative council of SIZ Angren will provide status of participant of the special industrial zone.

The main activities of the enterprises operating in the territory of the SIZ “Angren” shall be production of a wide range of high-tech products with high added value that are competitive in both domestic and world markets. This is expected to be achieved through efficient use of production and resource potential of the region comprising the special industrial zone.

(Source: UzDaily.com)

Society

First “smart” class opens in Uzbekistan

The first “smart” class opened in Uzbekistan, which was created within an educational programme Samsung Smart School.

The presentation of the “smart” class was held at the boarding school for orphans No. 34 in Angren city, where some 160 children are educated.

Opening of the first smart classroom launched an educational programme Samsung Smart School in Uzbekistan within a programme on social corporate responsibility of Samsung Electronics Central Eurasia.

Smart class is a separate room, which is fully equipped with modern equipment: computer, tablets (20 units), interactive board and printer, which are connected with each other with special software.

With help of Samsung Smart School, it is easy broadcast from display to personal devices of students, which will help teachers to control situation in the class. The students can exchange content and teaching process will be interesting thanks to interactive solution. Smart class will also help students to improve their knowledge and computer literacy of the students.

Innovative Smart class will be important addition to educational-material base of Children House No. 34.

Samsung Smart School programme is directed at ensuring equal access to quality education with help of introduction of information-communication technologies. It is expected that the school will be connected to educational network ZiyoNET.

Governor of Angren city Ibragimjon Rakhmanov and head of the Samsung Electronics Representative Office in Uzbekistan Geum Chan Lee participated in the presentation.

Ibragimjon Rakhmanov expressed gratitude to Samsung Electronics for such gift and expressed his assurance that new technologies will help to train skilled specialists. He also called the company to participate in projects on production of various devices in Angren city.

Head of the Samsung Electronics Representative Office in Uzbekistan Geum Chan Lee said that the Korean company plans to open several more such “smart classes” in Uzbekistan, which will help Uzbek youth to familiarize with advanced technologies and adapt to new realties. He said that there are also plans to open smart classes in Uzbek universities.

(Source: UzDaily.com)