RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of March 2, 2021 No. PP-5011

About additional measures for further development of the electrotechnical industry and increase in competitiveness of domestic production

In the republic system measures for development and upgrade of the electrotechnical industry, creation of capacities for production of new types of modern electrotechnical and household products, increase in the investment and export potential of industry, and also full support of domestic manufacturers are performed.

For the purpose of further acceleration of work in this direction, increases in competitiveness of domestic electrotechnical and household production, development of the new markets of products, development of the scientific and technology, potential and export potential of the companies of industry:

1. Determine the following main target performance indicators of electrotechnical industry for 2021-2022:

finishing amount of deep conversion of copper raw materials in 2021 to 55 thousand tons, in 2022 - to 70 thousand tons;

increase in volume of production in 2021 to 15 trillion sum, in 2022 - to 19 trillion sum;

providing export volume of products in 2021 in the amount of 450 million US dollars, in 2022 - 600 million US dollars;

finishing quantity of workplaces in industry in 2021 to 27 thousand, in 2022 - to 34 thousand.

To the working group on assistance to development of the electrotechnical industry (D. Sh. Sultanov) to take address measures for ensuring accomplishment of the main target indicators determined in this Item and to their increase by 30 percent at least in 2023.

2. Approve the Program of creation of new production capacities and diversification of production in the electrotechnical industry in 2021-2022 according to appendices No. No. 1, 1a and 1b.

Provide to Government commission concerning development of export and investments (S. U. Umurzakov) the right to make, if necessary, changes and amendments to the program provided by this Item.

3. Establish procedure for provision by the State fund of support of business activity of compensation for a period of up to three years for covering of the part of the interest rate which is exceeding the main rate, but not exceeding 30 percent of the main rate, the credits and leasing allocated by commercial banks in national currency to the companies of electrotechnical industry for implementation of investment projects on production of electrotechnical and household products which total cost does not exceed 5 billion sum interest rate - does not exceed 1, the 5-fold size of the main rate of the Central bank.

4. Implement the following measures of support of the companies of electrotechnical industry by the Agency of promotion of export:

provision till January 1, 2024 of subsidies for covering of 50 percent of expenses on transportation by road, railway and air transport when exporting electrotechnical and household products to all countries, including to the adjacent states, but no more than 15 percent from the cost of export of products (without transportation expenses) road transport, 20 percent - by rail;

provision of guarantees as mortgage providing in case of receipt of guarantees of domestic commercial banks on implementation (return) of advance payments, accomplishment of conditions of agreements in foreign currency and to providing warranty periods on the delivered goods (works, services) within tenders (tenders), irrespective of financing sources, at the rate to 50 percent from the guarantee amount, but not exceeding 3 million US dollars.

Government commission concerning development of export and investments (S. U. Umurzakov) to approve procedure of the measures of support provided by this Item in a month.

5. Provide for the period from April 1, 2021 to January 1, 2024 tax benefits in the form of decrease in rates of the income tax and the property tax by 50 percent to the companies of electrotechnical industry which amount of receipts from realization of electrotechnical products following the results of the accounting period constitutes at least 80 percent from general receipts.

Determine that the means released in connection with provision of the tax benefits provided by this Item:

are not distributed by the companies in the form of dividends;

go for creation of new production capacities and upgrade of the available capacities.

6. Accept offers of the Ministry of Economic Development and reducing poverty, the Ministry of Finance and Uzeltekhsanoat Association:

about determination of starting copper price the cathode, made by JSC Almalyksky MMC, in case of its exposure to the exchange biddings at a discount since April 1, 2021 in the amount of 8 percent, in 2022 - 6 percent and in 2023 - 4 percent from the price established by the London metal exchange without inclusion of the value added tax, since January 1, 2024 - at the level of the price established by the London metal exchange (sales prices for export);

about implementation, since April 1, 2021, procedure the companies of industry which implemented high-technology production process when purchasing copper raw materials through the exchange biddings of 25 percent of payment in the form of advance payment and the remained 75 percent - monthly in equal shares within 90 working days after receipt of copper raw materials.

To the Ministry of Economic Development and reducings poverty (B. K. Abdinazarov) together with Uzeltekhsanoat Association (M. M. Yunusov) in two weeks to approve and introduce the list of the companies of industry which implemented high-technology production process in JSC Uzbek Republican Commodity and Raw Exchange and to update this list if necessary.

7. Establish procedure according to which:

the support measures provided in Items 3 and 4 of this resolution do not extend to production and export of copper of the cathode and copper rod iron;

on the basis of guarantee of Uzeltekhsanoat Association to the companies which implemented high-technology production process, the amount of the negative difference on the value added tax formed as a result of application of the zero tax rate in case of commodity export it is compensated within three days. At the same time cameral tax audit after compensation of tax amount is made in general procedure;

The agency of promotion of export to commercial banks provides financial resources for financing of revolving credits on replenishment of current assets of exporters - the companies of the electrotechnical industry when exporting of goods by them with payment deferral condition. At the same time the credits at the expense of these resources are allocated at the rate 4 annual interest rates (including margin of bank - 2 percent) for the term of payment deferral and in the amount of the cost of the exported products, in equivalent no more than 3 million US dollars.

8. To the ministry of investments and foreign trade (A. B. Voitov) together with the Uzstandart Agency (D. N. Sattarov) and Uzeltekhsanoat Association (M. M. Yunusov):

till October 1, 2021 to complete work on creation of modern test laboratory and the center of certification on assessment of conformity of electrotechnical and household products to technical regulations and the international requirements (indicators of safety and energy efficiency);

till March 1, 2022 to take measures for carrying out the international accreditation of test laboratory taking into account development of its activities on the basis of the international standards and increase in the export potential of industry.

Uzeltekhsanoat associations (M. M. Yunusov) together with the Ministry of Economic Development and reducings poverty (B. K. Abdinazarov), the Uzstandart Agency (D. N. Sattarov) in three-months time to organize forming of the list of the necessary equipment for test laboratory, development of the preproject documentation on their purchase and conducting its examination in accordance with the established procedure.

To the Cabinet of Ministers (D. A. Kuchkarov, S. U. Umurzakov) together with Uzeltekhsanoat Association (M. M. Yunusov) to provide allocation to the Uzstandart Agency from reserve fund of the Cabinet of Ministers of necessary means (to 35 billion sum) for creation of test laboratory, its placement in the building of Uzeltekhsanoat Association and provision of Uzeltekhsanoat Association of the equipment of test laboratory on the right of operational management.

9. Determine the additional directions financed by fund of development of the electrotechnical industry:

creation in regions of the industrial technoparks specializing in the electrotechnical industry for the purpose of involvement of potential investors for implementation of investment projects on production of electrotechnical and household products;

covering to 50 percent of expenses of the companies of industry connected with carrying out marketing researches on increase in attractiveness of own products in the foreign markets, development of the preproject documentation (business plans, feasibility statements and others) industry projects, and also connection to the international databases (information resources) for studying of the world market and carrying out marketing analyses;

partial or complete financing of the expenses connected with involvement of foreign specialists and experts in executive office of Uzeltekhsanoat Association.

(T. A. Ishmetov) to provide to the Ministry of Finance allocation in Fund of development of the electrotechnical industry of means in the amount of 75 billion sum in equal shares in the first, second and third quarters 2021 at the expense of additional sources of the republican budget and to provide in the years ahead in parameters of the budget of funds for these purposes.

10. Approve the offer of Uzeltekhsanoat Association, Ministry of investments and foreign trade, the Ministry of Economic Development and reducing poverty on the organization since March, 2022 of annual International sales exhibition of electrical equipment and electronics ("Uzbek International Electrotechnics & Electronics Fair") with involvement of representatives of the domestic and foreign enterprises, potential investors, experts and other specialists, involved in industry.

To Uzeltekhsanoat association (M. M. Yunusov), the Ministry of investments and foreign trade (A. B. Voitov) to develop the program of measures for preparation and carrying out at the high level of the international sales exhibition of electrical equipment and electronics in a month and to begin its realization.

11. To the ministry of investments and foreign trade (Sh. A. Vafayev) till December 1, 2021 to take measures for attraction of financial resources of the international financial institutions and foreign government financial institutions for development of the electrotechnical industry and implementation of investment projects in industry.

12. To the Ministry of Finance (T. A. Ishmetov) together with the interested ministries and departments in two-month time to bring in the Cabinet of Ministers:

offers on implementation of the "national content" system providing acquisition of domestic production when carrying out tenders (tenders) for the projects realized at the expense of means of the international financial institutions and foreign government financial institutions and also on the terms of public-private partnership within state programs;

the bill providing procedure for deduction of expenses on scientific research and developmental developments from taxable basis on the income tax using double coefficient.

13. To the Ministry of Economic Development and reducings poverty (B. K. Abdinazarov), Uzeltekhsanoat Associations (M. M. Yunusov) to make offers in the Cabinet of Ministers:

together with khokimiyats of the Samarkand, Tashkent and Fergana regions in three-months time - about creation in these regions of the industrial technoparks specializing in the electrotechnical industry;

together with the interested ministries and departments in two-month time - about the changes and amendments in the legislation following from this resolution.

14. Make additions and changes to some resolutions of the President of the Republic of Uzbekistan according to appendix No. 2.

15. Recognize since April 1, 2021 invalid some resolutions of the President of the Republic of Uzbekistan according to appendix No. 3.

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