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PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of June 3, 2024 No. UP-84

About strengthening of measures for regulation of the market of alcoholic and tobacco products and to the prevention of its illicit trafficking

For the purpose of implementation of the effective control system in the field of production and realization of alcoholic and tobacco products, suppression of its illicit trafficking, development of the atmosphere of healthy competition for business, and also consumer protection:

1. Abolish the Commission on licensing of activities for production of food and technical ethyl alcohol, alcoholic and tobacco products, authorized to make decisions on issue, suspension or cancellation, and also cancellation and renewal of licenses for the right of implementation of activities for production of food and technical ethyl alcohol, alcoholic and tobacco products.

2. Form Inspectorate for regulation of the alcoholic and tobacco market under Department on fight against economic crimes under the Prosecutor General's Office with the status of the legal entity (further - Inspection).

At the same time the extreme number of managerial personnel of Inspection is established in number of 30 people, these established posts are created due to reducing the established posts containing at the expense of means of off-budget funds of the Ministry of Agriculture.

3. Determine the main objectives of Inspection:

participation in carrying out single state policy on production and realization of food and technical ethyl alcohol, alcoholic and tobacco products, and also ensuring control of these processes;

implementation of the comprehensive programs aimed at the development of the sphere of production and realization of food and technical ethyl alcohol, alcoholic and tobacco products;

licensing of activities for production of food and technical ethyl alcohol, alcoholic and tobacco products, and also wholesale trade by alcoholic products;

the organization together with the relevant competent authorities of works on control of observance of technical and technology regulations in production of food and technical ethyl alcohol, alcoholic and tobacco products with strict observance of requirements of state standards and legal acts;

implementation of check and monitoring of observance of licensed and allowing procedures in the field of production and wholesale trade by food and technical ethyl alcohol, alcoholic and tobacco products;

implementation and development of modern information systems in monitoring and control of production volumes and turnover of food and technical ethyl alcohol, alcoholic and tobacco products;

interaction with competent authorities in the direction of the prevention, identification and suppression of illegal production and turnover of alcoholic and tobacco products, elimination of the reasons and conditions promoting them;

participation in development of new samples of excise stamps for alcoholic and tobacco products, and also conducting the scheduled and explanatory maintenance directed to non-admission of illegal production and realization of these products.

Take into consideration that based on the resolution of the President of the Republic of Uzbekistan of August 3, 2023 No. PP-260 in agricultural industry under the Ministry of Agriculture are assigned tasks of conducting state policy in the field of wine growing and winemaking to Agency on rendering services, development and implementation of target development programs of this sphere.

4. Determine that since October 1, 2024:

a) the following additional licensed requirements to production of food and technical ethyl alcohol, alcoholic products take root:

observance of the requirements for svovremenny payment of annual license fees, taxes and other obligatory payments determined by the legislation;

observance of quality requirements in case of production and trade in alcoholic products, and also procedures of use of excise stamps, obligatory digital marking by identification;

installation of the means of video surveillance giving opportunity of conducting monitoring and control of production processes of alcoholic products.

Violation of requirements, the specified in paragraphs three and the fourth this subitem, is regarded as gross violation of licensed requirements and conditions;

b) in case of identification of cases of shadow production, production without excise stamp, without digital marking or low-quality alcoholic products the production equipment addresses in the income of the state;

c) the alcoholic and tobacco products with counterfeit excise stamp, without excise stamp, unmarked means of digital identification, marked by counterfeit codes of marking are withdrawn by monitoring bodies from circulation and the license (documents of allowing nature) for the right of trade in these products is cancelled in accordance with the established procedure;

d) agreements of wholesale trade by food and technical ethyl alcohol, alcoholic and tobacco products are subject to obligatory registration in tax authorities;

e) in cases when the indicator of involvement of the available production capacities in case of vodka production, and also vodka and alcoholic beverage products from food ethyl alcohol constitutes less than 60 percent, on outstanding part from the established 60 percent financial sanctions in the amount of 50 percent of the amount of the excise tax following the results of every half-year are charged.

At the same time in cases when the indicator of involvement of the available production capacities constitutes more than 60 percent and the excise tax is paid in full, the collected amounts of financial sanctions are subject to return to the company.

To department on fight against economic crimes under the Prosecutor General's Office together with the Ministry of Economics and finance, the Tax Committee and the Uzbek technical regulation agency in three-months time to develop and introduce to the Cabinet of Ministers the draft of the resolution providing determination of the semi-annual production schedule (taking into account seasonality) the manufacturing companies of alcoholic products, the extreme amount of losses of products in production process, and also procedure for use of the efficient mechanism to producers in case the indicator of involvement of production capacities constitutes less than 60 percent.

5. Establish procedure according to which:

till January 1, 2025 the staff of Department on fight against economic crimes under the Prosecutor General's Office for the purpose of effective and target use of production capacities and the made products, and also control of remaining balance of food ethyl alcohol and alcoholic products is attached to each manufacturing company of food ethyl alcohol and alcoholic products (except for natural and sparkling wines, beer and beer drinks);

within ten working days from the date of the notification of the producer on suspension or cancellation of the license by means of the information system "License" the Inspectorate together with the Tax Committee carries out inventory count of payment in complete amount of taxes and fees, and also remaining balance of food ethyl alcohol and alcoholic products.

At the same time by results of inventory count permission to realization of remaining balance of products in accordance with the established procedure is provided, the production equipment is sealed.

6. Determine that:

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