PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of June 14, 2005 No. UP-3619

About measures for further enhancement of system of legal protection of subjects of entrepreneurship

For the purpose of realization of the major priorities on democratization and updating of society, reforming and upgrade of the country, further liberalization of judicial system of law, reducing intervention of monitoring bodies in activities of subjects of entrepreneurship, ensuring protection of their rights and legitimate interests, non-admissions of unreasonable restrictions of business activity, and also unconditional observance of requirements of article 53 of the Constitution of the Republic of Uzbekistan:

1. Enter since July 1, 2005 procedure according to which measures of legal impact, according to appendix, are applied to subjects of entrepreneurship only judicially.

2. Determine that:

checks of financial and economic activities of subjects of entrepreneurship (audit) are performed in accordance with the established procedure only by bodies of the State Tax Service, and in case of identification by them during checks of signs of tax and currency offenses by Department on fight against economic crimes under the Prosecutor General's Office of the Republic of Uzbekistan;

heads and officials of monitoring bodies bear the personal responsibility, up to criminal, for conducting any checks of subjects of entrepreneurship on the questions which are beyond their powers and the sphere of control.

3. Determine that:

the harm done to the subject of entrepreneurship as a result of illegal decisions of state bodies or illegal actions (failure to act) of their officials is subject to compensation in full based on the judgment by directly these state bodies, first of all, at the expense of means of their off-budget funds;

indemnification can be assigned by the judgment to officials of state bodies because of which losses, according to the procedure and the sizes established by the legislation are caused;

consideration of economic disputes between subjects of entrepreneurship is performed by economic or reference tribunal.

To the Cabinet of Ministers, the Ministry of Justice, the Supreme Economic Court and Chamber of Commerce and Industry of the Republic of Uzbekistan in a month in accordance with the established procedure to introduce in Legislative house of Oliy Majlis of the Republic of Uzbekistan the bill of the Republic of Uzbekistan "About reference tribunals", having provided in it formation of reference tribunals by subjects of entrepreneurship and their associations.

4. To the Prosecutor General's Office of the Republic of Uzbekistan to strengthen supervision of unconditional execution of the legislation on guarantees of freedom of business activity, having provided inevitability of punishment, up to criminal liability, officials of monitoring bodies for violations of the rights and legitimate interests of subjects of entrepreneurship.

5. To the Cabinet of Ministers of the Republic of Uzbekistan to prepare and introduce in accordance with the established procedure drafts of relevant decisions:

till July 1, 2005 - about enhancement of system of appointment and conducting checks of activities of subjects of entrepreneurship, meaning sharp reducing their quantity and strengthening of responsibility of officials of monitoring bodies, up to criminal, for unauthorized checks;

till August 1, 2005 - about reducing number and simplification of allowing procedures for occupation separate types of activity, including implementation of system of issue of licenses (permissions) to implementation of business activity without restriction of terms, having extended them, including, to current licenses (permissions).

6. To the Ministry of Justice, the Supreme Economic Court and the Supreme Court of the Republic of Uzbekistan together with the Prosecutor General's Office, the Ministry of Finance, the State Tax Committee of the Republic of Uzbekistan, other interested ministries and departments to introduce in the Cabinet of Ministers till July 1, 2005 offers:

on further enhancement and simplification of the procedure of consideration of category of cases, the stipulated in Item 1 this Decree;

on unification of rates of the state fees in foreign currency paid in case of presentation of claims to economic courts with effective rates of the state fees in national currency;

about strengthening of structure and material and technical resources of courts taking into account additional categories of legal cases and to organize work on retraining of judges concerning application to subjects of entrepreneurship of measures of legal impact;

about the changes and amendments in the legislation following from this Decree.

7. To impose control of execution of this Decree on the Prime Minister of the Republic of Uzbekistan Mirziyoev Sh. M. and the counselor of state of the President of the Republic of Uzbekistan Hudaybergenov T. A.

Appendix

to the Presidential decree of the Republic of Uzbekistan of June 14, 2005 No. UP-3619

The list of measures of legal impact which application to subjects of entrepreneurship is made only judicially

1. Activities termination.

2. Suspension of operations, except as specified suspensions for the term of no more than ten working days in connection with prevention of emergence of emergency situations, epidemics and other real threat of life and to health of the population.

3. Suspension of account transactions in the banks, except as specified, provided by the law.

4. Application of financial sanctions, except for charges of penalty fee for delay of tax payment and charges, and also cases of recognition by the subject of entrepreneurship of fault in committed offense and voluntary payment of financial sanctions.

5. Address to the income of the state of objects of offenses.

6. Suspension for the term of more than ten working days or cancellation and cancellation of licenses (permissions) to occupation separate types of business activity (except for the licenses granted by the commissions of the Cabinet of Ministers of the Republic of Uzbekistan and the Central bank of the Republic of Uzbekistan).

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