For the first time in the years of independence Uzbekistan is set to establish manufacturing of innovation-based cosmetic products in line with international standards.
The Uzbek side will be partnered by one of the leaders of the cosmetic market in its segment – the South Korean company Daejin Chemical. It is planned to establish the new production on the territory of Navoi Free Economic Zone.
A delegation of the South Korean company visited Uzbekistan in March, studied the infrastructure of the free economic zone, logistics and opportunities for the distribution of manufactured products. During negotiations with the Uzbek side, the parties talked over the opportunities of project implementation and the launch of production of false eyelashes and fixing agents, as well as cleansing face masks, at the first stage.
Following the meeting, the parties signed a Memorandum of Cooperation on the implementation of the initiative. In the future, it is envisaged to create either a joint venture with the participation of the Korean side or a full-fledged foreign enterprise. Representatives of Daejin Chemical took a short pause to study all the parameters and specify business plans.
Participants of the Navoi FEZ are subject to unprecedented benefits and preferences. For example, they are exempt from land tax, profit tax, legal entity property tax, improvement and development of social infrastructure tax, single tax payment for microfirms and small businesses, mandatory contributions to state funds, and customs payments.
All the privileges are granted for a period from three to ten years, depending on the amount of investments. An investor gets three years of tax exemption by investing from $300,000 to $3 million, five years for investments from $3 to $5 million, seven years for $5-$10 million, and ten years for over $10 million, while single tax payment and income tax rates will be 50% below the current rates in the next five years.
