Agreement between the Government of the Republic of Uzbekistan and Government of Turkmenistan on production cooperation

of January 16, 1996

The government of the Republic of Uzbekistan and the Government of Turkmenistan which are hereinafter referred to as by the Parties

understanding that economic, industrial and the sci-tech cooperation is important and necessary element of development of the bilateral relations on stable and long-term basis,

considering the developed technological interrelations between potential and scientific and technical productions of their states,

recognizing crucial role of direct production interaction of business entities of the states of the Parties in creation of the Common Economic Space based on the market relations,

aiming to provide favorable conditions for maintenance and mutually beneficial development of production cooperation between the companies and industries,

relying on the reached level of economic interaction between both countries,

being guided by the purposes of ensuring steady economic growth, improvement of quality of life of their citizens, expansions of employment, effective use of material and human resources and environment protection,

agreed as follows:

Article 1

The parties will promote implementation and development of cooperation between the companies of all patterns of ownership, industry and cross-industry complexes on the basis of their direct production connections.

Article 2

The parties will take necessary measures for the purpose of development of the international specialization and cooperation of production, providing conditions for their implementation, determination of priorities in industries, assistance to development and realization of joint projects and programs.

Article 3

The parties agreed that:

- deliveries of goods in cooperation are understood as supply of raw materials, the materials, nodes, details, spare parts, procurements, semifinished products, component parts and other products of industry and cross-industry appointment which are technologically interconnected and necessary for joint production of end products,

- provision of services is understood as project, repair work, technical servicing and technological transactions,

- deliveries within customs regimes of conversion of goods are understood as deliveries of goods in accordance with the terms, established by the customs legislation of the states of the Parties.

Article 4

The parties consider the main form of production cooperation and direct connections agreements (contracts) which are signed by business entities based on the relevant industry and cross-industry agreements.

Article 5

The parties consider priority the conclusion of agreements on production cooperation in the following industries:

- fuel - energy complex;

- metallurgical, chemical, petrochemical industry;

- mechanical engineering industry;

- transport and communication;

- medical and pharmacological industry;

- agricultural industry and food industry;

- light industry;

- scientific and prospecting works;

- environmental management and environmental protection.

Article 6

In industry and cross-industry agreements on production cooperation lists of the companies and organizations which are taking part in cooperation and keeping production specialization (rendering services), and also the nomenclature and amounts of the cooperated deliveries of products (rendering services) will be determined.

Article 7

The basis for customs clearance and the omission of products through customs borders of the states of the Parties are agreements (contracts), stipulated in Article 4 this agreements.

Declaring and accounting of products (services) delivered within production cooperation is performed by customs authorities of the Parties according to their legislation.

Article 8

Delivery of products made in cooperation from raw materials supplied by the customer will be performed according to acting in the countries of the Parties with legislations on transactions with raw materials supplied by the customer.

Article 9

The raw materials, materials and components delivered within production cooperation are not subject to re-export to the third countries, without the corresponding prior written consent of authorized body of the Parties from which territory within production cooperation were delivered raw materials, materials and components.

Article 10

The parties agreed for the purpose of development of integration processes in the production sphere to carry out consecutive work on coordination and rapprochement of regulations of the national legal system of their countries concerning business entities regarding regulation of cooperation bonds of the companies and industries.

Article 11

The parties in necessary cases will approve conditions of loan granting and the investments stimulating development of cooperation in the knowledge-intensive production and export-oriented industries and also release of import-substituting products.

Article 12

The parties will organize joint study of problems, having charged their decision to the interested ministries and departments:

- carrying out marketing, leasing researches and organization of exhibitions, provision of services;

- development between their countries of the modern communications providing assistance in search of partners, preparation, the conclusion and agreement performance (contracts);

- implementation of joint actions for training of specialists.

Article 13

This agreement can be changed or added by mutual consent of the Parties.

Article 14

The disputes connected with interpretation and application of this agreement will be permitted before by consultation and negotiations between the Parties.

Article 15

This agreement becomes effective from the date of receipt of the written notice of accomplishment of each of the Parties of the interstate procedures necessary for its entry into force.

The agreement voids in 6 months from the date of receipt by the Party of the written notice of other Party of its intention to terminate this agreement.

It is made in the city of Charzhdev on January 16, 1996 in duplicate, everyone in the Uzbek, Turkmen and Russian languages, and all texts are equally authoritative. For the purposes of interpretation of provisions of this agreement the text in Russian is used.

 

For the Government of the Republic of Uzbekistan

For the Government of Turkmenistan

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