Approved by the Ministry of external commercial relations of the Republic of Uzbekistan on July 20, 1998 No. 02/20-25, the State Customs Committee of the Republic of Uzbekistan on July 28, 1998 No. BM-07/06-4438, the Ministry of Finance of the Republic of Uzbekistan on July 30, 1998 No. 39, the State Tax Committee of the Republic of Uzbekistan on July 30, 1998 No. 98-107

Regulations on export procedure of contract works and services

I. General provisions

This Provision determines procedure of the external economic transactions by export works agreements and the related services. The provision is developed taking into account national and foreign experience of legal regulation of the mutual relations between participants of contract works and services and according to the current legislation of the Republic of Uzbekistan.

The provision is not applied to traditional foreign trade transactions of purchase and sale of goods.

II. Basic concepts and terms

Contract works and services for the purposes of this provision include design and survey, research, design-technology and construction works, and also the transport services and other services connected with implementation of works.

Basic concepts and terms of the economic relations; the contract works and services arising when exporting:

a) customers, contractors, suppliers, the banks, the insurance companies, intermediaries, scientific and advisory firms, designers and other national and foreign organizations having the right by the legislation of the country to conducting business activity can be participants of transactions on contract works;

b) the goods made as a result of implementation of works and rendering services completely completed and prepared for operation and rendering services of the company, the building, construction and social facilities and infrastructures, and also products which are intermediate result of separate technological production phases of final goods work and service of different type and appointment (the FEAST - design and exploration work, SMR-installation and construction works, transportation, complete supply of equipment, picking of material resources, sending of personnel, etc.). The goods which are result of contract works and services are created according to in advance determined model (project) in the set place and are oriented to certain individual customer;

c) currency earnings during the contract works costs (price) of the contract in foreign currency, less the budgeted costs in foreign currency included in cost without the expense accounting and losses charged to profits and losses. Calculations for obligatory sale of part of currency earnings are regulated according to the procedure, established by the current legislation;

d) beginning of works:

Conditions of the beginning of works shall provide:

- opening of financing of works and services, availability of money (credit) on the settlement account of the customer for the first year (stage) of works;

- provision to the contractor of the building site and accomplishment of other obligations of the customer connected with it. For project rabotperedacha to the contractor of the specification and basic data;

- provision to the contractor of customs licenses and other import permits of the construction equipment, equipment, materials and sending of the specialists provided by the agreement (contract);

- in case of business necessity receipt of advance payment by the contractor in sizes from calculation from the amount annual (the 1st stage) amount of works.

e) "Complete object" - "goods" of the agreement (contract) podryadapromyshlenny or other company in general, the certain workshop, installation or the aggregate, or the engineering communications and separate work types representing the finished technological complex which construction assumes accomplishment of technical works. The equipment, consumable materials and other products used for construction of "complete object" is delivered to foreign division of the Contractor on the Permanent Import specifications which are Appendix (integral part of the contract agreement (contract). Such material values and products are not subject to purchase and sale or exchange and are not "goods" of the contract agreement (contract).

III. Regulation of export contract works and related services

1. Export contract works and the related services are performed based on the agreement signed according to the Civil code of the Republic of Uzbekistan, the Presidential decree of the Republic of Uzbekistan of October 10, 1997 No. UP-1871, Regulations on the organization of construction on contractual basis and Regulations on the organization of "turnkey" construction of facilities approved by the resolution of the Cabinet of Ministers of the Republic of Uzbekistan of September 3, 1998 No. 375, and regulations of the international trade law.

2. For implementation of settlement with the foreign customer the calculations and payments which are usually applied in case of contract works and services, in total or according to the procedure stipulated in the agreement (contract) shall be provided in the agreement (contract):

a) export of own products without advance payment, as for advance payment, and in cases when conditions of performance of works and services demand big costs obtaining from the customer of advance payment prior to works for replenishment of current assets of the contractor, in sizes depending on the amount of the annual amount of works approved by the parties in the agreement (contract);

b) intermediate step-by-step payments for the executed amounts of works (services) in the form of the open account caused by the right of stop and cessation of work in case of delay of calculations, establishment of penalties for delay of payments;

c) delivery of the installed processing equipment and materials connected with its installation and commisioning, or complete deliveries are performed in the presence of guarantee confirmed with the first-class bank, or the open letter of credit;

d) final settlement, taking into account warranty deduction, after commissioning of the object to the customer, the performed works and services.

3. The cost of the agreement (contract) for contract works and related services can be fixed in hard currency and/or in currency of the country of the customer. If the currency of the country of the customer is restrictedly convertible, the part of the amount of the agreement fixed in this currency shall not exceed the settlement expenses of the contractor in the country of the customer confirmed with the design estimates

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