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RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of October 11, 2023 No. PP-331

About measures for further acceleration of reforms and increase in the export potential of tanning and shoe and fur industries

For the purpose of further development of tanning and shoe and fur industries, production incentive of import-substituting and export-oriented products with high value added, and also ensuring execution of the priority tasks determined within open dialogue of the President of the Republic of Uzbekistan with entrepreneurs spent on August 18 the current year:

1. Establish procedure according to which for the purpose of the most complete collection and the direction of raw materials for conversion in regions the system of cooperation between the companies for conversion of skin takes root and:

the livestock clusters and the companies which are engaged in slaughter of the cattle;

the subjects of entrepreneurship collecting rawhide at the population and self-employed physical persons.

To provide to Council of Ministers of the Republic of Karakalpakstan, khokimiyats of areas, Committee of veterinary science and development of livestock production and Uzcharmsanoat Association implementation of the specified system of cooperation first of all in areas according to appendix No. 1.

Uzcharmsanoat associations together with the Ministry of Justice in week time to develop and post on the official website the standard agreement signed between the organizations which are engaged in conversion and delivery of skin.

2. Government commission concerning investment attraction, development of the industry and regulation of trade (Zh. A. Hodzhayev) to approve the program of investment projects of production of export-oriented finished goods with high value added on the basis of deep conversion of rawhide in 2023 - 2025 with fixing of responsible persons from Uzcharmsanoat Association, Council of Ministers of the Republic of Karakalpakstan, khokimiyats of areas and the city of Tashkent, and also the Ministry of investments, the industry and trade in a month.

Determine that these investment projects are financed by the following sources:

100 million US dollars attracted with Committee of veterinary science and development of livestock production from international financial institutions within the projects "Financing of Sustainable Development of the Sphere of Livestock Production" with participation of the French agency of development and "Development of the sector of livestock production (the 2nd stage)" with participation of the World Bank;

200 million US dollars of long-term preferential credit lines of the European Bank for Reconstruction and Development, other international financial institutions and foreign banks attracted by the Ministry of investments, the industry and trade, Uzcharmsanoat Association by means of commercial banks;

40 million US dollars of unused part of the credit lines opened in commercial banks based on item 4 of the resolution of the President of the Republic of Uzbekistan of February 26, 2022 No. PP-143 "About additional measures for support of production of finished goods in tanning and shoe and fur industries" with preserving procedure and financing terms.

3. For the purpose of simplification of system of allocation of land under investment projects and enhancement of activities of small industrial zones in tanning and shoe and fur industries:

a) compensation payments on compensation of the losses of agricultural and forestry and landscape production connected with allocation of land for creation of the companies of the tanning and shoe and fur industries and the companies specialized on slaughter are paid according to the procedure of exception by the companies monthly equal shares within one year;

b) for the investment projects placed in the created 16 specialized tanning and shoe small industrial zones:

the starting price of the parcels of land exposed on electronic online biddings is calculated proceeding from 25-year term;

the parcels of land are exposed on electronic online biddings in the amount of 10 percent from determined starting price;

means are paid by winners of electronic online biddings within three years in equal shares for the parcels of land;

c) for construction of centralized water treatment construction in the tanning and shoe small industrial zone created in Akhangaransky district of the Tashkent region from the republican budget the loan to 50 billion sum for the term of 10 years based on the resolution of the President of the Republic of Uzbekistan of September 4, 2023 is selected to No. PP-292 "About measures for realization of the tasks determined in open dialogue of 2023 of the President of the Republic of Uzbekistan with entrepreneurs".

At the same time the companies for conversion of skin for construction and management of centralized water treatment construction establish the single company in equal shares which since second year annually in equal shares returns the specified loan in the republican budget.

To the Ministry of Economics and finance to provide in budget parameters for 2024 allocation to the single company of the means necessary for the specified purposes.

To provide to khokimiyat of the Tashkent region and Uzcharmsanoat Association commissioning of centralized water treatment construction until the end of 2024.

4. For the purpose of further support of the export companies in tanning and shoe and fur industries:

a) collection when exporting tanning semifinished product of small cattle is not collected for a period of up to January 1, 2025 (the Commodity Nomenclatures of Foreign Economic Activity codes 4105, 4106 21 000 0) through customs border of the Republic of Uzbekistan;

b) within the available resources of Fund for export support:

proceeding from the export volume performed by them within the last 12 months for financing of preexport and export trading activities, for a period of up to two years financial resources are allocated in the amount of:

to 1 million US dollars - in case of export volume from 1 million US dollars to 2 million US dollars;

to 2 million US dollars - in case of export volume from 2 million US dollars to 4 million US dollars;

to 3 million US dollars - in case of export volume over 4 million US dollars. At the same time financial resources are provided at the rate which is not exceeding 4 annual interest rates (from them 2 percent – margin of bank);

c) for creation by the companies of tanning and shoe and fur industries of trading houses and shops it is abroad allowed to transfer abroad funds to 50 thousand US dollars a year without adoption of separate decisions.

5. For the purpose of further enhancement of mechanisms of training in tanning and shoe and fur industries to establish procedure according to which:

by training highly skilled seamstresses, cutters and shoemakers by the pupil attached to experienced employees of the companies on the basis of tradition "the master - the pupil", within the first three months is allocated subsidy in 4-fold size of basic settlement size by fund of attraction of the population to entrepreneurship;

part to 50 percent of the above-stated subsidy is paid to the master as surcharge to the salary, the rest - is spent purposefully for acquisition of necessary raw materials;

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