ORDER OF THE GOVERNMENT OF THE REPUBLIC OF TAJIKISTAN

of May 15 200Z years No. 223

About enhancement of the mechanism of production and realization of cotton

In pursuance of the Presidential decree of the Republic of Tajikistan of September 23, 2002 "About additional measures for ensuring effective activities of hlopkoseyushchy farms and investors in case of production, conversion and realization of cotton", for the purpose of ensuring protection of interests of hlopkoproizvoditel and investors, growths in volumes of production of cotton, improvement of its quality and creation of the simplified cotton realization mechanism the Government of the Republic of Tajikistan decides No. 899:

1. Approve the enclosed Regulations on the organization of works on production, conversion and realization of cotton.

2. To provide to the Ministry of Agriculture and Environment of the Republic of Tajikistan observance of requirements of the Provision by the companies and organizations.

3. To the Ministry of economic development and trade of the Republic of Tajikistan, Ministry of Agriculture and Environment of the Republic of Tajikistan:

- determine average norms of exits of cotton fiber, lint, ulyuk, cyclonic down, seeds of cotton, waste of the main production and transitions of seed cotton to industrial grades of cotton fiber;

- develop recommendations about marginal costs (services) of hlopkozavod connected with procurement, storage, conversion, transportation and development of cotton fiber and other cotton products;

- determine the extreme sizes of the transport and realizable costs connected with realization of cotton fiber and other cotton products for intra republican consumers and for export.

4. Assign to the Tajik universal commodity and raw exchange registration of agreements (contracts) signed between hlopkoproizvoditel and investors according to requirements of the Civil code of the Republic of Tajikistan.

5. Recognize invalid:

the order of the Government of the Republic of Tajikistan of January 28, 1998 No. 10 "About measures for ensuring further development of cotton growing in the Republic of Tajikistan";

the order of the Government of the Republic of Tajikistan of May 25, 1998 No. 187 "About the organization of works on investment of production of seed cotton in the Republic of Tajikistan";

the order of the Government of the Republic of Tajikistan of September 1, 1998 No. 324 "About entering of amendments and changes into some orders of the Government of the Republic of Tajikistan concerning obligatory payments in the budget";

the order of the Government of the Republic of Tajikistan of September 12, 1998 No. 369 "About enhancement of accounting, determination of production volumes of seed cotton, cotton fiber and other cotton products and procedure for their realization";

the order of the Government of the Republic of Tajikistan of September 12, 1998 No. 370 "About the organization of works on investment of production of seed cotton of harvest of 1998 in farms of Moskovsky district of Khatlon Region";

the order of the Government of the Republic of Tajikistan of December 30, 1998 No. 518 "About approval of the Standard agreement and Regulations on coproduction of seed cotton and realization of cotton products in the Republic of Tajikistan";

the paragraph of the fifth and sixth of Item 1 of the order of the Government of the Republic of Tajikistan of October 22, 1999 No. 421 "About measures for streamlining of collection of service fee of ginneries and enhancement of the mechanism of realization of cotton";

the second offer of Item 3 of the order of the Government of the Republic of Tajikistan of June 8, 2001 No. 237 "About measures for improvement of promotion of domestic goods in the foreign market".

Approved by the Order of the Government of the Republic of Tajikistan of May 15, 2003 No. 223

Regulations on the organization of works on production, conversion and realization of cotton

I. General provision

1. This Provision is developed for the purpose of further development of the cotton sector of national economy, improvement of the investment climate of the Republic of Tajikistan, enhancement of accounting, streamlining of the conclusion of agreements (contracts) for production and realization of cotton (seed cotton, cotton fiber and other cotton products lint, ulyuk, cyclonic down, cottonseeds), their reductions in compliance with requirements of market economy, protection of interests of hlopkoproizvoditel and investors.

The provision determines activities of state bodies and business entities for increase in profitability and growth in volumes of production of cotton, improvement of its quality, establishes the cotton realization mechanism.

II. The organization of works on the conclusion of agreements (contracts) in case of production and realization of cotton

2. Agreements (contracts) on production and realization of cotton can consist between subjects of managing of the Republic of Tajikistan, irrespective of patterns of ownership, residents and nonresidents by attraction for these purposes of necessary investments in compliance with regulations of the Civil Code of the Republic of Tajikistan.

3. It is recommended to make to the investors performing cotton production financing according to the signed agreements (contracts) preliminary advancing by money into special deposit accounts of hlopkoproizvoditel or to provide them with cash.

4. Accounting of the money provided to hlopkoproizvoditel in national currency and the material resources delivered from its consent are made in equivalent to US dollar on the official rate of National Bank of Tajikistan on date of transactions. In financial accounting and the reporting the hlopkoproizvoditel reflects the cost of accrued obligations (the received money and financially technical resources) in national currency with revaluation of cost of obligations at the rate of National Bank of Tajikistan to US dollar for date of calculations or date of creation of accounting records.

For accounting of cash flow and material resources to hlopkoproizvoditel in the servicing bank the special deposit account is opened.

5. Hlopkoproizvoditel shall use advanced money and material resources delivered according to the signed agreement (contract) only for cotton production.

The prices of the material resources delivered according to agreements (contracts) shall be not above the average prices which developed at the exchanges of the Republic of Tajikistan and the world prices. Receipt of the money and material resources which arrived from investors is without fail made for date of their actual obtaining.

6. Amounts of cotton, delivered to the investor according to the signed agreement (contract), shall be equivalent to the amount of use of means taking into account really developed prices and the added percent.

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