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Free Economic Zones in Uzbekistan

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Free Economic Zones in Uzbekistan Free economic zones in Uzbekistan +998(71)202-02-10 invest.gov.uz [email protected] 2021 1 fez List of contents Free economic zones in Uzbekistan 2 General requirements for projects of special economic zones 2 Special requirements for investment projects proposed for implementation on the territory of FEZ 2 Preferences and benefits operating in FEZ 3 Procedure for obtaining residency in FEZ 4 Procedure for obtaining land plots in the territories of free economic zones 4 FEZ industrial sector 7 FEZ "Navoi" 7 FEZ "Angren" 8 FEZ "Jizzakh" 9 FEZ "Urgut" 10 FEZ "Gijduvan" 10 FEZ "Kokand" 10 FEZ "Khazarasp" 11 FEZ "Nukus" 11 FEZ "Syrdarya" 13 FEZ "Chirokchi" 14 FEZ "Namangan" 15 FEZ “Termez” 16 FEZ of the pharmaceutical industry 16 FEZ “Zomin-Pharm” 16 FEZ “Boysun-Pharm” 17 FEZ “Sirdaryo -pharm " 17 FEZ" Kosonsoy-farm " 17 FEZ" Bustonlik-farm " 18 FEZ" Parkent-farm " 18 FEZ" Andijan-farm " 18 FEZ of agricultural sector 21 FEZ" Bukhoro-agro " 21 FEZ" Karakalpok -agro " 22 FEZ tourist industry 23 STZ "Charvak" 23 fez 2 Free economic zones in Uzbekistan The establishment of free economic zones is currently contributing to the modernization and diversification of the national economy, increase investment and increase export opportunities, increase the country's economic competitiveness in the international market and develop infrastructure at the regional level. Today there are 22 free economic zones in Uzbekistan. The FEZ has implemented 453 projects totaling $ 2.6 billion and created about 36 thousand jobs. The activities of special economic zones are regulated by the Law of the Republic of Uzbekistan No. LRU-604 dated February 17, 2020 "On special economic zones", as well as by decisions of the President and the Government of the Republic of Uzbekistan. Special economic zones can be created in the form of: • free economic zones (FEZ); • special scientific and technological zones; • tourist and recreational zones; • free trade zones; • special industrial zones. General requirements for projects of special economic zones: Compliance of the functional and industry specialization of the SEZ, as well as the parameters of technological equipment with modern energy efficiency requirements. availability of funding Special requirements for investment projects proposed for implementation on the territory of the FEZ Production of goods that mee the needs of the domestic market Production of a new type of product for the Uzbekistan market 3 fez Production of products for which there is a competitive environment, a saturated domestic market of domestic producers of similar products is not permitted* roduction of products for which there is a competitive environment, a saturated domestic market or domestic procers of similar products is not permitted* Processing of raw materials with a subsequent change in the commodity position of the final product according to the HS code of the Republic of Uzbekistan at the level of one of the first four digits Special requirements for investment projects proposed for implementation on the territory of the FEZ *Does not apply to fully export-oriented investment projects The conclusions of the competent authorities on the absence, insufficient production volumes and the level of the competitive environment of similar products are requested by the FEZ Directorate independently for subsequent submission to the Administrative Council of the Free Economic Zone Benefits and preferences valid on the territory of the FEZ Special preferential treatment for members of special economic zones on individual certain types of taxes as well as customs payments in accordance prescribed with the procedure established by the Tax Code of the Republic of Uzbekistan and the Law «On Special Economic Zones». In accordance with the Presidential Decree No. DP-4853 of October 26, 2016 "On additional measures to activate and expand the activities of free economic zones", participants in special economic zones are exempt. Customs incentives Tax incentives (excluding VAT and customs clearance fees) tax on profit of legal entities • construction materials not produced in the tax on property of legal entities republic and imported in accordance with land tax of legal entities the established procedure for the tax on the use of water resources implementation of the investment project STP for microfirms and small enterpriseÇ • technological equipment, according to the remittances Road transport charges approved list The above benefits are provided for a period of 3 to 10 years, depending on the volume of investments made and in the following equivalent: from 10 mln and up — for 10 year. from $5 mln to $10 mln– for 7 year; fez 4 from $3 mln to $5 mln – for 5 year; from $300 000 to $3 mln –for З years; WHen importing gooDs, FEZ members Have tHe rigHt to receive a Delay for VAT payment for up to 120 Days. THe amount of VAT resulting from tHe excess of tHe amount of VAT over tHe amount of accrueD tax is refunDeD to a member of tHe special economic zone accorDing to a simplifieD proceDure witHin 7Days. The procedure for obtaining the residency of the FEZ THe investor submits to tHe Directorate a completeD Typical investment application for tHe placement of an investment project on tHe territory of tHe FEZ witH tHe attacHment to it: a) information on tHe state registration of a legal entity (investor); b) a business plan of an investment project ( tHe requireD information is spelleD out in No.PKM-29 DateD January 16, 2018, AppenDix No. 2, clause 7); c) information confirming tHe investor's experience in tHe relevant fielD. In tHe absence of experience in tHe implementation of similar projects - information on tHe involveD tecHnology partners; D) information on tHe financial anD economic activities of tHe investor over tHe past tHree years. If, at tHe time of filing an investment application, tHe investor: • Has been carrying out economic activities for 1 to 3 years, tHe investor submits information to tHe Directorate for tHe actual time of its activities; • DiD not carry out financial anD economic activities or carrieD out it for less year, tHe investor submits information on tHe financial anD economic activities of at least one founDer of tHe investor. All Documents are submitteD witH tHe attacHment of a Duly certifieD translation into tHe state or Russian language. THe Directorate witHin 2 working Days consiDers tHe submitteD investment application anD tHe Documents attacHeD to it for compliance witH tHe requirements. The procedure for obtaining land plots in the territories of free economic zones Special economic zones are createD on tHe basis of empty anD inactive objects of state property, territories of aDministrative-territorial entities, as well as on non-agricultural lanD. By tHe Resolution of tHe Cabinet of Ministers of tHe Republic of Uzbekistan No.29 from 16tH January 2018 (AppenDix 1) a scHeme for tHe provision of lanD plots to tHe participants of tHe FEZ Has been DetermineD. 5 fez Subjects Mechanism Date Investor 1. Submits an application for the Within 1 working day provision of a land plot to the Center from the date of for Public Services in the appropriate registration of an form, either in person or by mail, or economic entity as a through the Unified Portal of member in the FEZ Interactive Public Services of the Republic of Uzbekistan. 2. Makes an advance payment in the On the day of amount of one minimum wage application Center for Public Submits an application to the khokimiyat On the day of receipt Services of the district (city) at the location of the of the application land plot. Khokimiyats of 1. Submit an application to the From the moment of districts department for architecture and receiving the (cities) construction of the city (district) for application the preparation of materials for the selection of land plots. 2. Submit an application to the state enterprise for land management and real estate cadastre of the district (city) Goskomzemgeokadastra for the preparation of materials for the selection of land plots for the construction of facilities located on the territory of two or more districts and regions, land plots for the construction of irrigation facilities, as well as engineering and road transport communications. State enterprises Prepare materials for the selection of land Within 5 days from of land plots and send them for approval to the date of receipt of management and authorized organizations. the application from real estate the khokimiyat of the cadastre of district (city) districts (cities) (state enterprises) Authorized The materials for the choice of the land Within 4 days organizations plot are being coordinated. State-owned 1. Prepare materials on the allotment of a Within 3 days enterprises land plot and a draft decision of the khokim of the district (city) on the allotment of a land plot. 2. Submit materials on the selection and allotment of a land plot to the khokim of the district (city) for registration of the decision on the allotment of a land plot. fez 6 Khokim of the 1. Makes a decision on the allotment of a Within 2 days district land plot and submits it to the state (cities) enterprise for the formation of a case on the allotment of a land plot and the removal of its boundaries in kind. 2. Submits it with the attachment of copies of materials on the allotment of a land plot for the formation of a case for the allotment of a land plot and the removal of its boundaries in kind to a state enterprise. Public Services Notifies the investor, by the means Within 1 working hour Center specified in the application, of the decision from the receipt of of the khokim of the region (city) on the documents allocation of the land parcel, as well as the need for the applicant to pay for the preparation of materials on the selection and allocation of the land plot, as well as taking to nature the boundaries of the land plot.
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