New requirements for manufacturers of alcoholic beverages set

Tashkent, Uzbekistan (UzDaily.com) -- The Alcohol and Tobacco Market Regulation Inspectorate under the Ministry of Finance of the Republic of Uzbekistan will issue licenses for production of food and technical ethyl alcohol, alcohol and tobacco products, as well as wholesale trade in alcohol products.

President of Uzbekistan Shavkat Mirziyoyev signed a decree "On measures to improve state regulation of the production and circulation of alcohol and tobacco products, as well as the development of viticulture and winemaking."

Producers of alcohol products sell goods only to wholesale organizations, with the exception of brewing products, sparkling and natural wines, the decree says.

All legal entities have the right to engage in wholesale trade in alcohol products in the manner prescribed by law.

The decree emphasizes that the implementation of domestic production of brewing products, sparkling and natural wines can be carried out by all trade enterprises, organizations providing hotel services, as well as catering services without a permit for the sale of alcoholic beverages.

Laboratories to determine the quality of ethyl alcohol of the Inspectorate are located at the enterprises producing food ethyl alcohol, which provide the necessary technical conditions for their proper operation, the document says.

The sale of food ethyl alcohol by manufacturers is carried out on the conditions of 100% prepayment. Producers of alcoholic products have the right to sell it without prior payment.

Alcohol producers carry out the purchase of food ethyl alcohol in excess of the volumes distributed by the Inspectorate by notifying the Inspectorate in the prescribed manner.

Manufacturers, taking into account market conditions, carry out the planning of the production of alcohol and tobacco products.

From 1 January 2020, additional licensing requirements are introduced for producers of vodka and (or) alcoholic beverages to carry out activities for the production of alcoholic beverages.

In particular, for three years, producers must create their own plantations of technical grape varieties with the subsequent organization of the production of wine materials and (or) wine. At the same time, the area of plantations of technical grape varieties should, after three years of sowing, ensure the harvest required for the production of wine materials and (or) wine, commensurate with 75 percent of the annual production of vodka and (or) alcoholic beverages.

Enterprises must ensure the use of the available annual production capacity for the production of vodka, as well as vodka and alcoholic beverages from food ethyl alcohol for at least 60 percent of the installed capacity. At the same time, the volume of production must be at least 100,000 decalitres per year in terms of absolute alcohol.

Among the new requirements is ensuring the use of the available annual production capacity for the production of alcoholic beverages from food ethyl alcohol at enterprises that do not produce vodka, at least 50 percent of the installed capacity.

At the same time, alcohol products from grapes, fruits and berries are not subject to licensing requirements for the minimum production volume.

Licenses to carry out activities for the production of alcoholic beverages, previously issued by the Commission of the Cabinet of Ministers of the Republic of Uzbekistan on licensing activities for the production of ethyl alcohol, alcoholic beverages and the production of tobacco products, are valid until 1 July 2019, regardless of their duration, and are subject to renewal license requirements.