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RESOLUTION OF THE CABINET OF MINISTERS OF THE REPUBLIC OF UZBEKISTAN

of January 16, 2018 No. 29

About measures for implementation of the Resolution of the President of the Republic of Uzbekistan of October 25, 2017 No. PP-3356 "About additional measures for increase in efficiency of activities of free economic zones and small industrial zones"

(as amended on 29-12-2021)

In pursuance of the resolution of the President of the Republic of Uzbekistan of October 25, 2017 "About additional measures for increase in efficiency of activities of free economic zones and small industrial zones" the Cabinet of Ministers decides No. PP-3356:

1. Approve:

Regulations on free economic zones according to appendix No. 1;

Regulations on procedure for carrying out selection of investment projects for placement in the territory of free economic zones and registration of members of free economic zones according to appendix No. 2;

Regulations on procedure for provision of the parcels of land to members of free economic zones according to appendix No. 3.

2. Approve the offer of khokimiyats of the Jizzakh, Namangan, Syr Darya, Surkhandarya and Tashkent regions, the Ministries of Economics of the Republic of Uzbekistan, the State committee of the Republic of Uzbekistan on land resources, geodesy, cartography and state inventory, the State committee of the Republic of Uzbekistan on architecture and construction, the State committee of the Republic of Uzbekistan on investments and the State committee of the Republic of Uzbekistan on assistance to the privatized companies and development of the competition about delimitation of the territories entering free economic zones Zomin-pharm, Kosonsoy-pharm, Sirdaryo-pharm, Boysun-pharm, Bustonlik-pharm and Parkent-pharm according to appendix No. 4.

3. Make changes and additions to some decisions of the Government of the Republic of Uzbekistan according to appendix No. 5.

4. Recognize invalid some decisions of the Government of the Republic of Uzbekistan according to appendix No. 6.

5. To impose control of execution of this resolution on the deputy prime minister of the Republic of Uzbekistan S. R. Holmuradov.

Prime Minister of the Republic of Uzbekistan
Abdullah Aripov

Appendix № 1

to the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan of January 16, 2018 No. 29

Regulations on free economic zones

Chapter 1. General provisions

1. This Provision determines procedure for creation, functioning and termination of the status of free economic zones.

2. In this Provision the following concepts are used:

the free economic zone (further - SEZ) - specially allocated territory with accurately certain administrative borders and particular legal regime created for the purpose of attraction of the domestic and foreign capital, modern technologies and managerial experience for the accelerated social and economic development of zone;

Republican council on coordination of activities of administrative boards of free economic zones and small industrial zones (further - Republican council) - the collegiate organ formed by the decision of the President of the Republic of Uzbekistan from among representatives of state bodies and other organizations;

administrative boards of free economic zones and small industrial zones in the Republic of Karakalpakstan, areas and Tashkent (further - administrative boards) - the collegiate organs formed by the decision of the President or the Government of the Republic of Uzbekistan from among representatives of public authorities on places and other organizations;

directorate of the free economic zone (further - Directorate) - the legal entity in the form of the state unitary enterprise created for operational management by activities of SEZ;

the investor of SEZ - the subject of investing activities which underwent in accordance with the established procedure selection and performing investment in the territory of SEZ;

investments in the territory of SEZ - the material and non-material benefits and the rights to them, and also the reinvestments put by members of SEZ in the objects of business activity determined by administrative board;

the investment agreement in the territory of SEZ (further - the investment agreement) - the agreement signed between Directorate and the investor (investors), determining the rights, obligations and responsibility of the parties;

the participant of economic activity of SEZ (further - the member of SEZ) - the business entity registered in the territory of SEZ in accordance with the established procedure and included by Directorate in the register of members of SEZ.

3. Activities of state bodies and application of the legislation of the Republic of Uzbekistan are performed in the territory of SEZ taking into account the features provided by the Law of the Republic of Uzbekistan "About free economic zones", decisions of the President of the Republic of Uzbekistan on creation of free economic zones and regulatory legal acts adopted for the purpose of ensuring their execution, international treaties and investment agreements, and also this Provision.

4. Town-planning activities in the territory of SEZ are performed according to master plans SEZ.

5. The parcels of land in the territory of SEZ are under direct authority of administrative boards of the respective areas and are provided to members of SEZ in accordance with the established procedure.

Directorates according to decisions of administrative boards and developed master plans SEZ perform placement of the approved investment projects, first of all, based on the idle, empty buildings, constructions and incomplete construction of facilities and in the territories having the brought engineering infrastructure.

6. The main objectives and activities of free economic zones are determined by decisions of the President of the Republic of Uzbekistan.

7. Regulation of activities of members of SEZ in other spheres is performed in accordance with the established procedure.

Chapter 2. Management structure and budget of SEZ

8. Functions on state regulation and coordination of activities of SEZ are performed by administrative boards.

The main objectives and activities of administrative boards are:

control of respect for particular legal and economic regime in the territories of SEZ;

organization of effective functioning of SEZ, forming of directorates and control of their activities;

carrying out selection and decision making on placement of investment projects for realization in the territory of SEZ;

decision making about provision of the parcels of land to members of SEZ for implementation of investment projects;

decision making about realization on "zero" redemption value, with adoption of the investment obligations, non-producing plants and property which are in state-owned property, to members of SEZ;

development of development programs SEZ, consideration of master plans of development of SEZ, ensuring timely projects implementation on construction of engineering and communication and transport infrastructure in SEZ;

monitoring of the course of implementation of investment projects, and also accomplishment of the obligations included in the investment agreement including parameters of business plans of the companies of members of SEZ;

rendering assistance to members of SEZ in the solution of complex of the questions arising in implementation process of investment projects and functioning of the companies;

introduction of offers on refining of borders of the territory of SEZ;

introduction of offers on increase in efficiency of activities of SEZ, including on changes, amendments in the regulatory legal acts regulating their activities.

Administrative boards can perform also other tasks according to the legislation.

Administrative boards within the competence make decisions independently.

9. Activities of administrative boards are coordinated by Republican council.

The main objectives and activities of Republican council are:

determination of the development strategy SEZ for the medium and long-term outlook;

implementation of management, coordination and monitoring of activities of administrative boards and directorates;

ensuring accurate coordination of activities of the ministries, departments, commercial banks, public authorities on places on rendering practical assistance in the solution of the organizational technical issues connected with functioning and development of SEZ, implementation of investment projects in the territory of SEZ, operational taking measures to non-admission from their party of the facts of bureaucracy and red tape, introduction of offers on acceptance to guilty officials of measures of strict liability by them;

operational consideration and acceptance of agreed decisions according to all organizational matters of activities of SEZ, perspective offers arriving from foreign investors, and also the specific project proposals recommended for realization in the territory of SEZ made in Republican council;

introduction in accordance with the established procedure offers on further enhancement of the legislation and the regulatory legal acts directed to creation of even more favorable conditions for the investors realizing projects in the territory of SEZ, increases in efficiency of activities of the managing participating subjects of SEZ, increase in deliveries of products made by them for export;

the high-quality organization, coordination and monitoring throughout all implementation cycle of projects, including preproject preparation and projects implementation, commissioning of objects and ensuring achievement of ultimate goals;

carrying out permanent monitoring of implementation of investment projects in the territory of SEZ with identification of the reasons interfering their input at the scheduled time, and also behind efficiency of financial and economic activities of the managing participating subjects of SEZ with taking measures to rendering the practical help in the solution of the arising questions and problems to them;

establishment of efficient control of activities of directorates, regular hearing of reports of heads of directorates on the course of implementation of the approved investment projects, introduction of offers on taking measures of responsibility to heads of the ministries, departments, economic associations and directorates which did not provide accomplishment of the tasks and functions assigned to them;

suspension or deprivation of participant status of SEZ according to reasonable offers of administrative boards or authorized bodies;

approval of questions of creation new and changes of borders of the operating SEZ;

approval of decisions of administrative boards on implementation of investment projects in the territory of SEZ cost in equivalent from above 5, 0 million US dollars.

Republican council can have also other tasks according to the legislation.

10. Operational management activities of SEZ is exercised of Directorate.

Directorate:

performs registration of members of SEZ according to the made decisions of administrative board, and also keeps their register;

concludes with investors of SEZ of the investment agreement, agreements with members of SEZ on realization of state-owned property on "zero" redemption value according to decisions of administrative boards;

performs study and search of foreign and domestic investors for implementation of investment projects in the territory of SEZ;

performs placement of the approved investment projects according to decisions of administrative board and the developed master plan SEZ;

will organize issue by the principle "one window" of all necessary permissions to connection to networks of engineering and communication infrastructure;

exercises system control of proper accomplishment by the investors of SEZ of the assumed liabilities selected in accordance with the established procedure, with the subsequent representation of results to administrative board;

manages the real estate objects which are in state-owned property located in the territory of SEZ within the powers conferred to it;

renders assistance to members of SEZ in the solution of the questions connected with timely commissioning of projects and ensuring smooth functioning of the companies in the territory of SEZ;

provides program implementation of development of SEZ;

provides control of improvement of ecological situation, and also bears responsibility for safety of the historical and cultural values which are in the territory of SEZ;

performs other functions on operational management by activities of SEZ.

11. The directorate in coordination with the Ministry of Finance of the Republic of Uzbekistan annually develops the draft of the independent budget SEZ for the corresponding financial year and submits for approval in administrative board.

The independent budget SEZ is created for the account:

parts of receipts from leasing of the parcels of land, buildings and constructions which are in their use and management;

income from rendering services;

expels of members of SEZ and payment for registration as members of SEZ in the sizes determined by Republican council;

the target budgetary appropriations provided by the Investing program of the Republic of Uzbekistan for the corresponding year;

others, the sources which are not prohibited by the legislation.

12. Budget funds of SEZ are used on:

creation of Fund of development of SEZ which means are aimed at the development of infrastructure and increase in efficiency of functioning of SEZ;

content of Directorate in accordance with the established procedure;

financing of realization of other tasks directed to execution of the relevant decision of the President of the Republic of Uzbekistan about creation of SEZ.

The regulations on Fonda of development of SEZ affirm Republican council.

13. The staff list and expense budget of Directorate affirm Republican council.

Chapter 3. Implementation of economic activity in the territory of SEZ

14. Procedure for carrying out selection of investment projects for placement in the territory of SEZ and registration of members of SEZ are regulated by the separate provision approved by the Cabinet of Ministers.

15. The certificate of the member of SEZ granted to the member of SEZ is confirmation of its rights to application of particular legal regime, including tax and customs privileges concerning its activities in the territory of SEZ.

16. The obligations enshrined in the corresponding investment agreement in the part concerning activities in the territory of SEZ are in accordance with the established procedure assigned to the member of SEZ after its registration.

The member of SEZ has no right to transfer the rights and obligations according to the investment agreement to other person.

17. The business entities who are not members of SEZ having the right to perform activities in the territory of SEZ according to the legislation.

18. Education by members of SEZ of the branches in the Republic of Uzbekistan outside the territory of SEZ is not allowed.

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