PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of January 10, 2023 No. UP-2

About measures for support of activities of cotton and textile clusters, radical reforming of the textile and sewing and knitted industry, and also further increase in the export potential of the sphere

In recent years as a result of implementation of complex measures for development of the textile and sewing and knitted industry in the country, support of investing and export activities of the industry companies are processed made in the republic cotton fiber - completely, yarn - 45 percent, and the export potential of industry exceeded 3, 2 billion dollars.

At the same time strengthening of the competition in the world markets and reduction of expenses by foreign producers due to production of the mixed type require additional measures for development of this sphere.

For the purpose of ensuring increase in production volume of finished and textile goods with high value added in 2,1 of time and export indicator in time 2,6, and also raisings on new production phase of carpet products and products of house textiles in the next five years by deep conversion of cotton fiber:

1. Take into consideration information of the Ministry of investments, the industry and trade and Uztukimachiliksanoat Association on finishing the export potential of industry following the results of 2023 to 5 billion US dollars, to increase in level of use of production capacities of sewing and knitted products from 65 percent to 81 percent, to completion of 35 thousand free workplaces, including employment of the citizens included in social notebooks by large-scale state support of the textile and sewing and knitted industry.

2. Determine that for the purpose of mobilization of the available opportunities and new reserves of textile and sewing and knitted industries:

a) Fund of reconstruction and development:

for continuous providing with current assets the companies performing export of fabrics, knitted cloth and finished sewing and knitted goods including on the basis of revolving crediting, to joint-stock company "The company on trade development, based on its request, funds in the amount of 100 million US dollars, in 2024 - in the amount of 150 million US dollars with return condition till January 1, 2028 at the rate 4 annual interest rates are allocated in 2023;

in commercial banks, based on their requests, credit lines on projects of production of fabrics, carpet products, finished sewing and knitted goods, dyeing and finishing in the amount of 50 million US dollars for a period of 10 years, with three-year grace period, at the rate 4 annual interest rates, for other period - at the rate of 5 annual interest rates, by the following criteria open:

adoption of obligations on ensuring export in the amount of 50 percent from the total amount of products;

determination of participation of own means, including buildings and constructions, current assets of at least 30 percent;

lack of overdue debts according to credit obligations.

At the same time:

in case of failure to carry out of export obligations by the company recalculation of the loan interest rates added during grace period at the rate of 5 annual interest rates is made;

commercial banks as a part of the annual interest rate established on the credits allocated at the expense of resources of Fund of reconstruction and development, the margin of bank is established in the amount of, not exceeding 2 percent;

proceeding from results of development of allocated funds, based on the conclusion of Government commission concerning foreign trade, investments, development of the local industry and technical regulation by Fund of reconstruction and development in 2024 funds in the amount of 100 million US dollars are in addition allocated;

b) commercial banks on providing the textile and sewing and knitted companies with current assets by means of revolving crediting allocate the credits in the amount of 1 trillion sum for a period of 24 months, including six-months grace period, using the margin of bank which is not exceeding 2 percent;

c) the requirement of monthly advance payment for electric power consumption to the textile and sewing and knitted companies is cancelled;

d) To the textile and sewing and knitted companies 50 percent of expenses on implementation of maintaining the financial reporting on the basis of international standards, but in the amount of, not exceeding 25 thousand dollars become covered by the agency of promotion of export. At the same time these expenses are covered after attraction by the company of borrowed funds of the international financial institutions and foreign commercial banks in accordance with the established procedure;

e) at the expense of "The Company on Trade Development" joint-stock company for financing of preexport and export trading activities proceeding from the export volume performed within the last 12 months for up to 3 years financial resources in the following sizes are allocated:

to 1 million dollars - in case of export volume to 5 million dollars;

to 2 million dollars - in case of export volume from 5 million dollars to 10 million dollars;

to 3 million dollars - in case of export volume from 10 million dollars to 15 million dollars;

to 4 million dollars - in case of export volume from 15 million dollars to 20 million dollars;

to 5 million dollars - in case of export volume more than 20 million dollars;

e) rent expenses of the large trade warehouses intended for realization of textile and sewing and knitted products in the foreign markets become covered at the expense of means of the Agency of promotion of export.

Government commission concerning foreign trade, investments, development of the local industry and technical regulation to approve procedure for covering of rent expenses of large trade warehouses in a month.

At the same time in case of repayment at the scheduled time of the determined part of the credits issued for up to 3 years, to subjects of entrepreneurship additional loans, in proportion to the extinguished part of the credit are allocated.

3. To the Ministry of Economics and finance:

based on requests of the Agency of promotion of export to provide allocation from the republican budget in addition of 100 billion sum on covering of the expenses specified in subitems "g" and "e" of Item 2, and also in paragraphs four and the fifth Item 5 of this Decree when forming budget parameters the next years - to provide these expenses;

in a month together with the Ministry of Agriculture to make in the Cabinet of Ministers offers on non-use of penalty fee for untimely payment of the value added tax accrued to farms for harvest of 2022.

4. To the ministry of investments, industry and trade together with commercial banks to take measures for attraction till April 1, 2023 of means of the foreign financial organizations in the amount of 500 million US dollars for a period of 2 years for providing industry with current assets of the companies.

5. Approve offers of the Ministry of investments, the industry and trade, Uztukimachiliksanoat Association on:

to step-by-step attraction by cotton and textile clusters of alternative sources of financing and means of the foreign financial organizations in the amount of 700 million US dollars on the basis of providing cotton fiber;

to creation in the six-months time of representations at least three large foreign companies providing international certificates on products of domestic enterprises;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info