RESOLUTION OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

of December 26, 2016 No. PP-2698

About measures for further implementation of perspective projects of localization of production of ready types of products, components and materials for 2017 - 2019

Note that within the Program of localization of production of ready types of products, components and materials in the republic since 2000 5, 5 billion US dollars are implemented more 2, by one thousand projects of localization by cost from above, production more 4,8 of one thousand new types of products which are earlier delivered on import is mastered. As a result the share of localizable products in total amount of the industrial output made in the country constitutes more than 20 percent.

At the same time, there are considerable reserves of reducing import of industrial goods, consumer goods and medicines due to localization of their production on domestic enterprises with wide use of local source of raw materials.

For the purpose of further deepening of processes of localization of production, expansion of cross-industry industrial cooperation, including between large enterprises of the republic and subjects of small business and private entrepreneurship, creation based on local raw material resources of the productions providing import substitution and saturation of the domestic market with necessary consumer goods, medicines, industrial goods, components and materials:

1. Approve developed by the Ministry of Foreign Economic Relations, Investments and Trades, the Ministry of Economics, the State committee of the Republic of Uzbekistan on privatization, demonopolization and development of the competition, the State Customs Committee of the Republic of Uzbekistan together with Council of Ministers of the Republic of Karakalpakstan, khokimiyats of areas and Tashkent, other interested bodies of the public and economic board the Program of localization of production of ready types of products, components and materials for 2017 - 2019 (further - the Program of localization) including:

the list of the projects of localization of production providing the organization of release of competitive, import-substituting and export-oriented products according to appendix No. 1;

the list of ready types of products, the components and materials recommended for development by domestic manufacturers in 2017 - 2019 according to appendix No. 2.

2. To heads of complexes of the Cabinet of Ministers of the Republic of Uzbekistan together with the interested ministries, departments, economic associations, other organizations - the initiators of projects of localization specified in appendix No. 1:

in a month to approve network schedules of production organization and accomplishment of the forecast production volumes of localizable products approved by this resolution in 2017;

provide in accordance with the established procedure preparation and submission to the Special interdepartmental commission on providing program implementation of localization of production of finished goods, components and materials on the basis of industrial cooperation formed by the resolution of the President of the Republic of Uzbekistan of December 1, 2009 No. PP-1236 (further - the Special interdepartmental commission), passports of the projects of localization of production included in the Program of localization.

3. To provide to the Ministry of Economics of the Republic of Uzbekistan together with the interested ministries, departments, economic associations, other organizations, Chamber of Commerce and Industry, Council of Ministers of the Republic of Karakalpakstan, khokimiyats of areas and Tashkent:

in a month bringing to subjects of entrepreneurship and other organizations of recommendations about development of ready types of products, the components and materials specified in appendix No. 2;

development of specific proposals on localization of their production on domestic enterprises with development of passports of projects of localization and their entering in accordance with the established procedure into the Special interdepartmental commission.

4. Establish since January 1, 2017 procedure according to which introduction of offers on inclusion of projects of localization, and also adjustment of the Program of localization are performed also electronically through the Program complex "The Automated System of Development and Consideration of Passports of Localization" created based on the official site of the Ministry of Economics of the Republic of Uzbekistan.

5. Determine that the projects on production localization which are in addition included in localizations in the Program, and also projects on which terms of stay in the Program of localization are prolonged shall correspond to the following criteria from now on:

achievement of level of localization at least 36 percent on products in the first year, at least 45 percent in the second year and at least 50 percent in the third year from the moment of inclusion in the Program of localization at the same time, for products of mechanical engineering and metal working of 36 percent, 40 percent and 45 percent respectively;

the share of export of the localized products in net revenue from its realization shall constitute at least 20 percent in the second year and at least 30 percent in the third year from the moment of inclusion in the Program of localization.

The criteria specified in this Item do not extend to the projects realized in subventsionny areas and the cities of the republic, providing localization level at least 36 percent.

To the Ministry of Economics together with the Ministry of Foreign Economic Relations, Investments and Trades of the Republic of Uzbekistan to make in the Cabinet of Ministers offers on changes and amendments in relevant provision about procedure for forming of the Program of localization in a month, having provided accurate determination of conditions and the mechanism of use of the criteria entered by this Item.

6. Recommend to commercial banks to allocate to the organizations included in the Program of localization, the credits including in foreign currency, for projects implementation of localization, acquisition of the equipment, raw materials, components and materials for production of localizable products.

7. Exempt the organizations included in appendix No. 1 to this resolution till April 1, 2018 according to decisions of the Special interdepartmental commission, after examination of projects of localization in accordance with the established procedure, from payment:

customs payments (except for charges for customs clearance) for the imported processing equipment and spare parts to it, and also the components which are not made in the republic, used in engineering procedure in case of production of localizable products;

the income tax of legal entities, single tax payment (for the subjects applying simplified taxation system) regarding products made on projects of localization;

the property tax regarding the fixed business assets used for production of localizable products.

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