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PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of November 16, 2021 No. UP-14

About measures for regulation of activities of cotton and textile clusters

For the purpose of further enhancement of activities of cotton and textile clusters, increase in their role and responsibility in effective use of farmlands, widespread introduction of the market principles for ensuring interest of producers and processors of products:

1. Create the Republican commission on coordination of activities of cotton and textile clusters (further - the Republican commission) and to approve its structure according to appendix No. 1.

2. Determine the main objectives of the Republican commission:

consideration of the applications of applicants for creation of cotton and textile clusters;

carrying out the analysis of activities of cotton and textile clusters, including accomplishment of agreement obligations, concluded within cluster, timely return of the obtained bank loans;

introduction to the Government of offers on elimination of the system problems arising in activities of cotton and textile clusters;

issue of the recommendation about the termination of activities of the cotton and textile cluster which violated investment obligations.

3. Establish procedure according to which:

a) creation of cotton and textile cluster is performed by the resolution of the Cabinet of Ministers based on the conclusion of the Republican commission. At the same time providing cotton textile to cluster of the parcel of land on the basis of the right of lease is performed based on the statement of the applicant according to the procedure, established by acts of the legislation;

b) during creation of cotton and textile clusters preference is given to the applicant having capacity of own conversion (at least yarn) at least 50 percent of the made or purchased seed cotton, concerning others;

c) based on the resolution of the Cabinet of Ministers on creation of cotton and textile cluster between the Ministry of Agriculture, Association of cotton and textile clusters of Uzbekistan, Council of Ministers of the Republic of Karakalpakstan or khokimiyat of area respectively and the applicant for creation of cotton and textile cluster the quadrilateral agreement for a period of thirty years is signed. At the same time if the applicant is the company with participation of foreign investments or the foreign legal entity, then the quadrilateral agreement is signed for up to twenty five years;

d) all cotton and textile clusters in one region (in the Republic of Karakalpakstan or the respective area) are allowed to perform activities with farms on contractual basis and to farms - voluntarily to sign future agreements with these clusters on delivery of seed cotton;

e) cancellation of the quadrilateral agreement is performed exclusively judicially in cases:

disagreements at least one of the parties;

failures to carry out at the scheduled time of obligations of the parties provided in the agreement (except for the force majeur situations and (or) circumstances arising owing to circumstances);

availability of written addresses of two thirds of the producers of agricultural products proving incomplete accomplishment by cotton and textile clusters of the concluded mutual contractual relations within three years;

e) in case of cancellation of the lease agreement of the parcel of land of business entities - producers of seed cotton, since harvest of 2022 in case of the sublease of the released parcel of land the cotton and textile cluster performing activities in this area has the privilege with other things being equal.

4. To the Ministry of Agriculture together with Association of cotton and textile clusters of Uzbekistan, Council of Ministers of the Republic of Karakalpakstan and khokimiyats of areas:

in two-month time to take measures for the conclusion with all cotton and textile clusters of the quadrilateral agreement including conditions of introduction of investments for start of capacities on deep conversion of seed cotton, creation of workplaces and others operating in the republic;

since 2022 to provide in the quadrilateral agreement agreement performance, concluded annually with cotton and textile clusters, including investment obligations, implementation of audit of efficiency and financial audit of their activities. At the same time in cotton and textile clusters with annual amount of seed cotton over 30 thousand tons are attracted the international auditing organizations.

5. To the State Tax Committee together with the Ministry of Agriculture, Council of Ministers of the Republic of Karakalpakstan and khokimiyats of areas until the end of the current year to implement procedure for the conclusion cotton and textile clusters of contracts for production and realization of seed cotton in strict procedure with farms, the rights to which parcels of land underwent the state registration in the National geographical information system, and also carrying out obligatory data recording of agreements on information portal of electronic agreements of tax authorities.

6. In a month to provide to agency on management of the state assets together with Project office on liquidation of JSC Uzpakhtasanoat reduction in compliance with Item 2 of appendix No. 2 to this Decree of the current agreements signed on realization of complexes on production of textile and knitted products.

7. To the Cabinet of Ministers in two weeks to make the Government decision providing approval of the Regulations on procedure for the organization of activities of cotton and textile clusters.

To the Prosecutor General's Office to take the immediate measures established in the legislation on such elicited negative facts as illegal intervention of state bodies and organizations, and also their officials in activities of cotton and textile cluster, creation of different bureaucratic barriers.

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

9. Assign to the deputy prime minister of the Republic of Uzbekistan Sh. M. Ganiyev the personal responsibility for the effective organization of execution of this Decree.

To assign control of execution of this Decree, implementation of coordination of activities of the responsible ministries and departments to the Prime Minister of the Republic of Uzbekistan A. N. Aripov.

President of the Republic of Uzbekistan

Sh. Mirziyoev

 

Appendix No. 1

to the Presidential decree of the Republic of Uzbekistan of November 16, 2021 No. UP-14

Structure of the Republican commission on coordination of activities of cotton and textile clusters

1.

Sh. Ganiyev

-

deputy prime minister, chairman of the Republican commission

2.

Zh. Hodzhayev

-

Minister of Agriculture, vice-chairman of the Republican commission

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