Management of the FEZ territories to be revised and improved

Tashkent, Uzbekistan (UzDaily.com) -- Presidential Decree on measures to further improve the system of coordination and management of free economic zones was adopted on 21 December.

In accordance with the new document, the decision on the provision of land for implementation of investment projects in the territories of the FEZ is drawn up by a protocol of administrative councils without a separate decision of the khokim of the district (city) on the provision of land.

At the same time, the condition for placing projects on the territory of the FEZ is to achieve an export volume of at least 25 percent of the output produced in the second financial year from the beginning of the enterprise’s activity over two years, and at least 50 percent in the following years.

If these conditions are not observed, the business entity loses the status of a free economic zone participant with the cancellation of previously granted benefits.

The decree defines the terms of consideration and issuance of opinions on business plans or feasibility studies of ongoing projects, based on the results of a comprehensive examination of the lists of goods imported by the participants of the FEZ with the use of customs payment preferences, consideration of investment applications for the location of industries in the FEZ.

In addition, the master plans of free economic zones are approved by the administrative councils in coordination with the Ministry of Construction and the State Investment Committee of the Republic of Uzbekistan.

Until 1 March 2019, the State Committee on Investment jointly by the Ministry of Economy and the Ministry of Justice plans to develop a draft Law of the Republic of Uzbekistan “On Special Economic Zones”, and by 1 April 2019, the State Investment Committee will develop and submit a draft Concepts of development of free economic zones.

According to the Decree, the State Investment Committee of the Republic of Uzbekistan, together with the Ministry for the Development of Information Technologies and Communications of the Republic of Uzbekistan, plans to develop and implement an electronic system for considering investment applications for projects in the FEZ using an electronic digital signature.

It is planned to introduce an automated system for monitoring investment projects, which allows for the operational control of the timely commissioning of production facilities, the export of products, the creation of new jobs, and the fulfillment by the participants of free economic zones of investment obligations.