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of May 1, 2024 No. UP-71

About measures for removal on new stage of development of the textile and sewing and knitted industry


For the purpose of further increase in investment appeal and competitiveness of the textile and sewing and knitted industry of the republic, expansion of the export potential of industry, and also creation of conditions for broader promotion of domestic textile production on the foreign markets:

1. Determine the main directions of removal of the textile and sewing and knitted industry on qualitatively new stage:

step-by-step bringing level of conversion of yarn to 100 percent until the end of 2027 by creation of infrastructure and financial conditions for increase in production volume and dyeing of fabrics and knitted cloth;

providing at the first stage complete infrastructure of the small industrial zones specialized on textiles, located in the Andijan and Namangan regions and the industrial technopark located in the Tashkent region (further - textile industrial zones), including completion until the end of 2024 of works on construction of water treatment constructions, and also creation in these zones of opportunity for construction of the buildings and constructions necessary for production and dyeing of fabrics, knitted cloth and finished goods, on the basis of requirements and projects of entrepreneurs and their provision in ready condition on payment terms by installments or on the basis of lease;

the address organization of works on transformation of the republic into "textile hub" and creation at least 10 domestic brands recognized at the international level and also acceptance of effective and address measures for rendering assistance to the companies in realization of own products in the internal and external markets.

2. Determine that for the purpose of creation of favorable financial conditions for deepening of conversion of textile products the following mechanisms of support take root:

a) the credit lines in the amount of 12 million US dollars opened in commercial banks and also the means provided to allocation in the amount of 100 million US dollars for the textile and sewing and knitted industry, according to the Presidential decree of the Republic of Uzbekistan No. UP-2 of January 10, 2023 "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", is distributed according to the decision of Government commission on investment attraction, industrial development and regulation of trade (Zh. Hodzhayev) in the following directions:

to directorates of textile industrial zones for the term of 10 years, including three-year grace period, at the rate 4 annual interest rates and for other period - at the rate of 5 annual interest rates - for construction of factory buildings and water treatment constructions on the basis of requirements of entrepreneurs;

To fund of development of the industry (further - Fund) - for entering of 15 percent of cost of the equipment into the authorized capital of the created companies as share of Fund of development and reconstruction for the purpose of projects implementation by cost at the rate to 10 million US dollars on production of fabrics, knitted cloth, tinctorial and finishing products, towels and curtains. At the same time the share created by fund shall not exceed 25 percent, from the initiator of the project introduction as share of buildings, constructions, necessary for production, and other assets is required;

b) the buildings and constructions built in textile industrial zones will be transferred to entrepreneurs directly for a period of up to 7 years on the basis of payment by installments or leases;

c) JSC The Company on Development of Entrepreneurship is compensated interest expenses the exceeding 6 percent points, but no more than 5 percent, on foreign currency loans, in the part which is not exceeding 7 million US dollars allocated for acquisition of the equipment for production and dyeing of fabrics, knitted cloth and sewing and knitted products.

To deputy prime ministers D. Kuchkarov and Zh. Hodzhayev in week time to determine funding mechanism and return of the means provided by the subitem "an" of this Item.

3. Exempt for a period of up to January 1, 2026 directorates of textile industrial zones and the companies created in them from the tax discharge on property, the land tax and tax for use of water resources.

To the Cabinet of Ministers in two weeks to introduce in Legislative house of Oliy Majlis of the Republic of Uzbekistan the bill on modification and the amendments in the Tax code of the Republic of Uzbekistan following from this Item.

4. Exempt for a period of up to January 1, 2027 from customs duty the imported raw materials and other materials, component parts and spare parts necessary for production of textile products and not made in the republic according to the list according to appendix No. 1.

At the same time Council for tariff and non-tariff regulation can quarterly make changes to this list based on offers of the Ministry of Economics and finance.

5. Government commission concerning investment attraction, development of the industry and regulation of trade (Zh. Hodzhayev) till May 15, 2024:

approve procedure for financial assistance on placement, advertizing and promotion of products of the textile and sewing and knitted industry on platforms of electronic commerce;

enhance procedure for compensation of part of transport costs of colored fabrics and sewing and knitted products;

approve the plan of measures for creation of the centers of designers, marketing specialists, designers and test laboratories in the field of the textile and sewing and knitted industry in the Andijan, Bukhara, Namangan regions and the city of Tashkent.

At the same time to provide preparation of offers on creation of national brands by studying of experience of foreign countries with the developed industry of fashion and design and attraction in the centers at least on 10 highly qualified foreign specialists.

6. To Chamber of Commerce and Industry together with khokimiyat of the city of Tashkent and Uztukimachiliksanoat association in the territory transferred from the Tashkent region to the city of Tashkent to create the wholesale market and the center of domestic production of light industry and necessary import raw materials on the parcel of land of 30 hectares convenient for construction of facilities of services industry.

7. And finance for financing of the actions provided by Items 5 and 6 of this Decree to allocate to the Ministry of Economics from the republican budget in Fund of assistance to trade 200 billion sum, on 50 billion sum within four months, since May, 2024 and to provide these expenses when forming parameters of the budget for the next years.


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