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UZBEKISTAN FREE INDUSTRIAL AND ECONOMIC ZONES, SPECIAL INDUSTRIAL ZONE

Index cards realized by the University of Reims, France Conception: F. Bost Data collected by F. Bost and D. Messaoudi Map and layout: S. Piantoni WFZO Index cards - Uzbekistan

Oicial Terms for Free Zones Year of promulgation of the irst text of law concerning the Free Zones Free industrial and economic zones, Special industrial zone 1996

Possibility to be established as Exact number of Free Zones Free Points 3 No

TABLE OF CONTENTS

General information ...... 4 List of operating Free Zones ...... 6 Contacts ...... 8 Free Zones Web sites selection ...... 8

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Kyzylorda KAZAKHSTAN

Dzhambul

Nukus Shymkent KYRGYZSTAN Urgench UZBEKISTAN Tashkent 02 Namangan Andizhan Osh Fergana 03 01 Navoi Bukhara Dzhizak Leninobod

Samarkand CHINA TURKMENISTAN Karshi TAJIKISTAN Dushanbe

Ashgabat Mary Termez

Mazar-E Sharif Konduz IRAN Mashhad AFGHANISTAN Baghlan PAKISTAN

FREE ZONES IN UZBEKISTAN 100 km International borders Elevations (meters) Cities 0 200 500 1000 Free Zones

01 - Navoi Free Industrial Economic Zone 02 - "Angren" Special Industrial Zone 03 - "Jizzakh" Special Industrial Zone

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GENERAL INFORMATION

Number of free 3: zones • 1 Free Industrial and Economic Zone ("Navoi"); • 2 Special industrial zones ("Angren" and "Jizzakh ").

Main sectors of “The main activity of business entities in FIEZ is to develop a wide range of high-tech activity industries, competitive on world markets through the introduction of modern high-ei- ciency equipment and machinery, production lines and modules, and innovative technologies”. https://www.google.fr/?gws_rd=ssl#q=The+main+activity+of+business+entities+in+FIEZ+is+to+develop+a+wide+range+of+high-tech+industries,+competitive+on+world+markets&

N. of act. comp. No global information. in Free Zones FIEZ “Navoi”: 23 companies in 2014.

Total job num- 4,200 jobs in 2016. bers http://kun.uz/en/news/2016/06/18/about-54-projects-implemented-in-industrial-zones-of-uzbekistan

Distr. of invest. Korea, China, India, etc.

Exports and “Enterprises at industrial zones exported products for US$42 million in 2015, which rose sales 6.8 times year-on-year. Aggregate volume of production reached 1.1 trillion soums in 2015, which grew three times compared to 2014.” http://kun.uz/en/news/2016/06/18/about-54-projects-implemented-in-industrial-zones-of-uzbekistan

Free zones “As of 1 May 2016, some 54 projects with total cost of US$411.2 million were realized in contribution to three industrial zones of Uzbekistan: the nat. eco. • 24 projects with total cost of US$124 million were realized in special industrial and economic zone Navoi, of which US$34.4 million were foreign direct investments. • About 10 projects for US$181 million were implemented in special industrial zone Ang- ren, of which US$131.4 million were foreign direct invetsments. • About 20 projects were implemented at the special industrial zone Jizzakh. The cost of the projects is US$106.2 million, of which US$57.3 million were foreign direct investments.” Source: http://kun.uz/en/news/2016/06/18/about-54-projects-implemented-in-industrial-zones-of-uzbekistan

“The formation of free economic zones, including in 2009 - "Navoi" Free Industrial Econo- mic Zone , in 2012-2013 - "Angren" and "Namangan" special industrial zones have become one of the factors in increasing the involvement in the economy of republic of investments for modernization, technical and technological renovation of industrial.” http://news.uzreport.uz/news_4_e_126063.html

Corporate Tax Residents in FEZ "Navoi": and Incentives Companies registered in Navoi FEZ are exempted from all types of taxes including: • land tax; • property tax; • proit tax of legal entities; • social infrastructure development tax; • uniied tax payment for micro irms and small-scale enterprises; • compulsory contributions to the Republican Road Fund and of-budget Republican School Fund.

The privileges are available depending on the amount of foreign direct investments: • from 300 thous. to 3 million USD - for 3 years; • from 3 to 5 million USD - for 5 years; • from 5 to 10 million USD - for 7 years; • over 10 million USD - for 10 years. For the following 5 years rates of proit tax of legal entities and uniied tax payment for micro irms and small enterprises are ixed at the level of 50 percent of current rates.

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Companies registered in Navoi FEZ are exempted from customs duties (except for customs clearance) for imported equipment, and raw materials and components for the production of products for export for the entire period of operation of Navoi FEZ.

Special currency exchange regime allows companies registered in Navoi FEZ to: • exercise payments in foreign currency within FEZ in accordance with the agreements and contracts concluded between them; • pay in freely-convertible currency for the supply of goods, works and services perfor- med by the business entities - residents of the Republic of Uzbekistan; • use any convenient conditions and forms of payments for exported and imported goods.

Source: http://iez.uz/page/privileges-and-preferences

Angren SIZ participants exempted from: • income tax, property tax for legal entities, social infrastructure development tax, uniied tax for small businesses, as well as compulsory contributions to the republican road Fund; • customs payments (except customs clearance duties) for the equipment, components and materials that are not produced in the country (in accordance with the list approved by the Cabinet of Ministers).

Above mentioned preferences are provided certain term depending on the amount of contributed investments as follows: • from 300 thousand to 3 million US dollars – for 3 years; • from 3 to 10 million US dollars – for 5 years; • more than 10 million US dollars – for 7 years.

Also, Angren SIZ participants are provided guaranteed connection to utilities with sup- plying to the production site. The status of the Angren SIZ participant is granted by Admi- nistrative Council of Angren SIZ.

http://www.mfer.uz/en/investments/special-economic-zones/2390/

Free Zone law Law of the Republic of Uzbekistan "On free economic zones", adopted on 25 April 1996. Free Industrial Economic Zone (FIEZ) "Navoi" was organized by the decree of the President of the Republic of Uzbekistan № 4059 of 02.12.2008 year. The legal basis for the functioning of FIEZ "Navoi" governed by the "Regulations on the free industrial economic zone "Navoi"" (approved by the Cabinet of Ministers of Uzbekis- tan on 27.01.2009, № 21). Special industrial zone (SIZ) "Angren" and " Jizzakh " organized by the decree of the Pre- sident of the Republic of Uzbekistan № 4436 of 13.04.2012 in the city of Tashkent region and the presidential decree number 4516 of 18.03.2013, the Jizzakh in the ield, along with the branch of the district Syrdarya region, respectively. https://www.google.fr/?gws_rd=ssl#q=The+main+activity+of+business+entities+in+FIEZ+is+to+develop+a+wide+range+of+high-tech+industries,+competitive+on+world+markets&

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LIST OF OPERATING FREE ZONES 1 - Navoi Free Industrial Economic Zone Located in the district of Navoi region Karmana. Central part of Uzbekistan. Navoi FEZ is placed in immediate proximity to the international airport, E-40 highway Location and railway lines of international signiicance. Distance between Navoi and Tashkent: 490 km; Samarkand (153 km), Bukhara (110 km).

564 hectares Surface Area http://iez.uz/page/types-of-activities-in-iez-navoi http://www.chamber.uz/en/page/2416

Directorate of "Navoi" FIEZ 210100, 4, A. Temur str., Navoi city Tel.: (998-79) 220-00-77 - Fax: (998-79) 220-00-22 Contacts Mr. Azamat Fayziev Director Tel: +99879 2200020 / +99879 2200077 Email: [email protected]

23 companies in 2014. http://iez.uz/page/companies-in-navoi-fez

Priority directions of production activities in Navoi FEZ are manufacturing of wide range of high-tech and globally competetive products by introduction of modern high-pefor- mance equipment, technologies and innovations. Navoi FEZ territory is provided with all the necessary conditions to create industrial complexes with full production cycle from raw materials to ready products in difernt industries. Based on concept of creation of Navoi FEZ and identiied priorities, enterprises of the following sectors are located in Navoi FEZ: • electronics and electrotechnics; • telecommunication equipment; • precision machinery production, equipments and component parts; • pharmaceutical production and medical equipment; • foodstuf and agricultural products deep processing and packing; • production of modern and high technological construction materials; • plastic and polymere goods.

Source: http://iez.uz/page/types-of-activities-in-iez-navoi

“Navoi Free Industrial Economic Zone has been established according to the Decree of Observations the President of the Republic of Uzbekistan No.UP-4059 dated December 2, 2008. Navoi FIEZ ofers foreign investors a wide range of opportunities for doing business and initial- ly endows them with great competitive advantages.” http://www.mfer.uz/en/investments/special-economic-zones/

“The proximity of the Navoi Free Industrial Economic Zone (Navoi FIEZ) to the trans- continental intermodal hub at Navoi city airport is FIEZ’s most important success ele- ment. The hub began operations on January 1, 2009 and is managed by Korean Air, a world leader in air transportation and cargo. Located along the world’s most important crossroads of automobile, railway and aviation routes, the Navoi city airport connects Southeast Asia with Central and East Asia, the Middle East, and the European continent. Regular lights connect Navoi city to Asian and European metropolises such as Bangkok, Frankfurt, Milan, New Delhi and Singa- pore. Undoubtedly, the union between the Navoi FIEZ and the international logistics center at the airport enables income-generating manufacturing facilities to be established, and ready-made products delivered to world markets through a highly developed combina- tion of aviation, automobile, and railway transportation systems. I look forward to the continued collaboration of the government and the business community in the endeavor, and to the successful operation of the Navoi Free Industrial Economic Zone."

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According to the results of the international competition for the best SEZ organized by the fDi Magazine, Free Industrial Economic Zone "Navoi" has become the winner in the following categories: • First place in the nomination "The best free-economic zone, in Central Asia"; • Second place in the category "Best free-economic zone, in Asia"; • Second place in the category "Best free-economic zone, in Asia to attract small and medium-sized businesses". Free Industrial Economic Zone "Navoi" will receive the exclusive right to use the logo of “fDi Global Free Zones of the Year 2016 Awards” in their publications or marketing materials.

http://iez.uz/news/news/95-navoi-iez-is-the-best-free-industrial-economic-zone-in-central-asia http://iez.uz/news

2 - "Angren" Special Industrial Zone Location Tashkent region.

14,000 ha (include the territories of Angren and Ahangaran cities of Tashkent region, Surface Area and part of territory located between them).

Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan 100029, Tashkent str. Uzbekistan, 1 Tel.: (+998 71) 238-51-00 - Fax: (+998 71) 238-52-00 E-mail: [email protected] Contacts Chamber of Commerce and Industry of Uzbekistan Uzbekistan, Tashkent, 100047 Amir Temur Street 4, Block 6, Tel.: +998 71 150-60-00, 232-09-01 - Fax: +998 71 232-09-03 [email protected]

Angren Special Industrial Zone has been established according to the Decree of the President of the Republic of Uzbekistan No.4436 dated April 13, 2012. Observations http://www.mfer.uz/en/investments/special-economic-zones/ http://www.mfer.uz/en/investments/special-economic-zones/2390/

3 - "Jizzakh" Special Industrial Zone Jizzakh SIZ located in Jizzakh city of Jizzakh region and has the branch in Sirdarya dis- Location trict of Sirdarya region.

Surface Area 524 ha (2 sites: Jizzakh city: 416 ha ; Sirdaya region: 108 ha)

Chamber of Commerce and Industry of Uzbekistan Uzbekistan, Tashkent, 100047 Amir Temur Street 4, Block 6, Contacts Tel.: +998 71 150-60-00, 232-09-01 - Fax: +998 71 232-09-03 [email protected] http://www.chamber.uz/en/page/2418

Jizzakh Special Industrial Zone has been established according to the Decree of the President of the Republic of Uzbekistan No. 4516 dated March 18, 2013. http://www.mfer.uz/en/investments/special-economic-zones/ Observations The decree said that the special zone was created for 30 years with possibility of exten- sion. http://www.chamber.uz/en/page/2418

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CONTACTS Chamber of Commerce and Industry of Uzbekistan Uzbekistan, Tashkent, 100047 Amir Temur Street 4, Block 6, Tel.: +998 71 150-60-00, 232-09-01 - Fax: +998 71 232-09-03 [email protected]

Invest Uzbekistan 1 Taras Shevchenko st., Tashkent, Uzbekistan 100029 Tel: (99871) 2389300/9200 www.uzinfoinvest.uz

FREE ZONES WEB SITES SELECTION • http://www.lex.uz/ • https://www.gov.uz/uz • http://iez.uz/ • http://www.mfer.uz/en/investments/special-economic-zones/ • http://uzreport.uz/ • https://www.google.fr/?gws_rd=ssl#q=The+main+activity+of+business+entities+in+FIEZ+is+to+develop+a+wide+range+of+high-tech+industries,+competitive+on+world+markets&* • https://www2.deloitte.com/content/dam/Deloitte/kz/Documents/uzbekistan/UZ_tax_review_invest_EN.PDF