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PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of April 25, 2022 No. UP-115

About additional measures for simplification of application of customs regime "Conversion on customs area"

For the purpose of expansion of capacities on production of industrial output and ensuring complete use of the operating production capacities by subjects of entrepreneurship, creating favorable conditions for export support, and also simplification of procedures of goods placement under the "conversion on customs area" mode:

1. Take into consideration that according to the Customs code of the Republic of Uzbekistan transactions on conversion of goods on customs area are:

direct conversion or processing of the imported goods with change of its initial properties and individual indicators, but with preserving in product of conversion of such characteristics of goods which allow to identify it;

production of other goods, installation, assembly or dismantling, repair of goods, including its recovery and replacement of components, with use of the imported goods;

use as raw materials of other goods helping or facilitating production of products of conversion if these goods are fully or partially used in the course of conversion.

2. Implement since May 1, 2022 the simplified procedure for application of customs regime "conversion on customs area" according to which:

a) packing, packaging (including repacking), sorting, cleaning of goods, its adjustment to other goods and upgrade of the equipment are considered as transactions of conversion on customs area;

b) when placing goods under customs regime "conversion on customs area" obligatory confirmation of conformity of goods in the field of technical regulation and submission of the sanitary and epidemiologic conclusion it are not required to requirements of regulations;

c) regulations of exit of products of conversion if these regulations are not approved in accordance with the established procedure, affirm the subject of conversion and are represented to customs authority taking into account losses in technology of their conversion, production and (or) cargo operations.

The provided regulations of exit are fixed in permissions to conversion on customs area, and responsibility for their reliability is born by the subject of conversion;

d) for conversion of the same goods, irrespective of the number of contracts, the customs authority issues the global permit for the term which is not exceeding 2 years. At the same time for each transaction of conversion (contract) the exit regulation is represented;

e) to participants of special economic zones and Authorized Economic Operators the procedure for ensuring payment of customs payments is not applied;

e) in case of registration of the waste which is formed in the course of conversion in customs regime "release for free circulation" the customs duty is not collected;

g) the authorized persons which are engaged in conversion of goods quarterly submit reports on observance of customs regime "conversion on customs area" in the form corresponding published on the official website of the State Customs Committee by means of information system of the State Customs Committee.

3. Determine that:

rates of customs fees, privileges, preferences and other measures of support of export, including rates for rail haulings, the subsidies and compensations determined by the legislation of the Republic of Uzbekistan in case of commodity export are applied also to the conversion products which are exported in customs regime "re-export";

in cases when "conversion on customs area" is the purpose of application of customs regime repair of goods, permission to conversion of goods on customs area is not required;

permission to conversion of goods on customs area can be transferred further by the participant of foreign economic activity to other person (if this person assumes all obligations on this permission);

based on the statement of the participant of foreign economic activity the customs authority has the right to make the changes (amendments) which are not contradicting the legislation to regulations of exit of products of conversion, the conversion address, details of the parties, conversion term in permissions to conversion of goods on customs area.

4. For the purpose of coordination, providing the effective organization and promotion among subjects of entrepreneurship of the simplified procedure provided in this Decree to create in structure of central office of the State Customs Committee Management on enhancement of customs regime "conversion on/out of customs area" from eight established posts within the total extreme number of staff of customs authorities.

5. To the ministry of investments and foreign trade together with Council of Ministers of the Republic of Karakalpakstan, khokimiyats of areas and the city of Tashkent to take measures for placement of new projects of conversion on customs area in free economic zones with effective operation of the operating ready infrastructure in the territory of these zones.

At the same time to take into account placement of capacities of production of electrotechnical and food products in the free economic zone "Urgut", ready-to-wear clothes - in the free economic zone "Chust", household electrotechnical products - in free economic zones Navoiy and Kokand, pharmaceutical products - in the free economic zone of Bustonlyk, household and industrial chemical output - in free economic zones Angren and Chirchiq by conversion.

6. To the Ministry of Economic Development and reducings poverty together with the interested departments to introduce the drafts of resolutions providing to the Cabinet of Ministers:

a) in a month extension of the list approved by the resolution of the Cabinet of Ministers of June 4, 2021 No. 352 with forming of the list of the processing equipment necessary for conversion on customs area;

b) in two-month time:

the list of separate transactions which implementation is limited in case of conversion of certain types of goods on/out of customs area, and the circumstances which are not allowing conversion of certain types of goods on/out of customs area;

determination of standard regulations of exit of products of conversion of separate types of goods.

7. To the ministry of investments and foreign trade together with the State Customs Committee and Chamber of Commerce and Industry:

in a month for the purpose of implementation of purchasing system from the foreign states and direct implementation to the third countries without import of products to organize the presentation and training, directed to promoting of the external economic contracts "import" and "export" implemented in practice according to the resolution of the Cabinet of Ministers of July 8, 2021 No. 429 "About additional measures for further simplification of customs administration and procedures";

on permanent basis to take measures for rendering practical assistance to subjects of entrepreneurship when implementing procedures of customs clearance of goods in customs regimes "conversion on customs area", "customs warehouse", "free warehouse", "re-export";

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