PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of November 12, 2007 No. UP-3937

About measures on further strengthenings of intra-branch and cross-industry industrial cooperation

Note that the deep purposeful structural transformations which are carried out in economy of Uzbekistan provided in recent years high rates of economic growth and the advancing growth of the industry which share in gross domestic product of the country grew from 11% in the early nineties to 24% in 2007.

For years of independence tens of new large industrial enterprises in oil and gas, mechanical, electrotechnical, chemical, metallurgical industry are constructed. The new industry of economy - automotive industry with the developed infrastructure in which the level of localization of production reaches more than 60% today is created.

The domestic industry masters production such new high-technology types of products as production of automobile, cargo vehicles and passenger buses, the polyethylene compressed and the liquefied gas, the calcinated soda, electrotechnical and cable and conduction products, elastic railway cross ties, spare parts and component parts for mechanical engineering and other industrial industries.

At the same time, the created industrial potential is used still insufficiently effectively and not fully. With production facilities, highly skilled labor power, favorable climatic conditions many types of finished industrial output, raw materials and materials which could be successfully made on domestic enterprises quite often due to the lack of due interest are delivered from abroad with additional transportation and currency costs.

Possibilities of intra-branch and cross-industry industrial cooperation, especially in agricultural mechanical engineering, non-ferrous metallurgy, the cotton-processing and textile industry are insufficiently used. In production of localizable products small businesses poorly are attracted.

For the purpose of rendering assistance to business entities in production optimization, strengthening and development of intra-branch and cross-industry cooperation, creation of additional terms for expansion of processes of localization, use of the available reserves of increase in production efficiency, growth of employment of the population and amounts of industrial output:

1. Consider the most important priority task of further development of the industry for long-term outlook full support of the national productions performing release of components, spare parts, consumable materials and the processed raw material resources necessary for quickly developing industries of the republic promoting expansion of the export potential, optimization of trading and paying balance, the first-priority direction of currency funds for import of advanced technologies and the equipment.

Determine the main directions of further development of intra-branch and cross-industry industrial cooperation:

creation of the necessary legislation and market infrastructure for forming and expansion of long-term economic communications within intra-branch and cross-industry cooperation of industrial enterprises;

providing open entry of the companies performing localization of equipment manufacturing, component parts, raw materials and materials to necessary raw material and credit resources;

increase in role and value in development of industrial cooperation of annually adopted Programs of localization of production of finished goods, components and materials based on local raw materials, and also strengthening of responsibility of contractors for timely accomplishment of the projects of localization included in them;

creation of venture funds for support and implementation of innovative projects, and also the infrastructure facilities promoting development and deployment of new technologies in large and small enterprises;

provision to the companies providing equipment manufacturing, component parts, the processed raw materials and materials for needs of domestic enterprises, and also for their delivery to export, tax and customs privileges and preferences within programs of localization.

2. Accept the offer of the Ministry of Economics, Ministry of Foreign Economic Relations, Investments and Trades, Chamber of Commerce and Industry of the Republic of Uzbekistan on the organization of carrying out on regular basis of the International industrial fair and the Cooperation exchange.

Determine the main objective of industrial fair and the Cooperation exchange development of intra-branch and cross-industry cooperation, broad informing on products made in the republic, rendering assistance in search of partners and the conclusion of economic agreements between domestic manufacturers on delivery of self-produced products and also the conclusion of agreements for delivery of products to export.

3. Approve structure of permanent organizing committee of the International industrial fair and the Cooperation exchange according to appendix.

4. Determine that purchase within the Cooperation exchange of the equipment, components, the processed raw materials and materials made by domestic enterprises is performed for all domestic consumers on the basis of direct agreements without carrying out additional tenders.

5. To the Ministry of Economics, the Ministry of Finance of the Republic of Uzbekistan to make in the Cabinet of Ministers offers on provision, starting with the Program of localization for 2008, additional tax benefits and preferences for the companies included in the Program of localization of production of finished goods, components and materials based on local raw materials in a month.

6. To the Ministry of Economics together with the Ministry of Foreign Economic Relations, Investments and Trades of the Republic of Uzbekistan, other interested departments quarterly and following the results of year to submit for consideration of cabinet meetings results of accomplishment of adopted agenda of localization of production of finished goods, components and materials based on local raw materials.

7. To provide to the Uzbek agency of standardization, metrology and certification during the first half of the year 2008 creation of network of specialized structures of the Agency with branches on places on rendering services to business entities regarding implementation of technical audit and broad application of quality management system of the products which are turned out and mastered within cooperation communications.

8. To the Ministry of Foreign Economic Relations, Investments and Trades together with the State Customs Committee and the Ministry of Economics of the Republic of Uzbekistan to perform permanent monitoring and the analysis of import of the equipment, components, raw materials and materials with the subsequent development of measures for support of the domestic manufacturers providing production of similar goods competitive at the price and quality.

9. To impose control of execution of this Decree on the Prime Minister of the Republic of Uzbekistan Mirziyoyev Sh. M.

Appendix

to the Presidential decree of the Republic of Uzbekistan of November 12, 2007 No. UP-3937

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