President signs decree on further trade liberalization in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) -- President of Uzbekistan Shavkat Mirziyoyev signed a decree on measures to further liberalize trade and promote competition in commodity markets.

With his decree, the head of Uzbekistan abolished the licensing of wholesale activities and the special taxation of trade enterprises, as well as a special procedure for recording revenue from the sale of certain types of excisable goods (cars, vegetable oil, etc.) and its use from 1 January 2019.

Starting from the new year, the requirements for obtaining a permit for exit trade and sanctions for overdue receivables arising in relations with counterparties from organizations with a state share in the authorized capital of less than 50 percent are also canceled.

Also, the requirement of a 15 percent prepayment on the domestic market for transactions of organizations with a state share of less than 50 percent, and restrictions on the export of certain types of goods are abolished as well.

The President also canceled the current procedure for agreeing with the State Committee of the Republic of Uzbekistan on promoting privatized enterprises and development of competition of schedules for placing products on exchange trades with introduction of a notification procedure for their approval.

The requirement to provide a financial consumer loan for purchase of only consumer goods (services) produced in Uzbekistan from a manufacturer or selling organization is canceled.

From 1 November 2018, the decree establishes, the procedure according to which:

• commodity exchanges are granted the right to create subsidiary companies in organization of storage and logistics of products sold on the exchange, as well as the development and implementation of information and communication technologies;
• highly liquid types of products, raw materials and materials, imported, can be sold without restrictions on the domestic market, including exchange trades, at the discretion of their owners;
• holiday sellers of highly liquid products, raw materials and materials purchased at exchange trading, is carried out strictly in a timely manner and in order determined by electronic systems of exchanges, depending on the timing of payment for products;

From 1 November 2018, entrepreneurs, who have an average daily cash proceeds of more than 20 times the minimum wage, have the opportunity to hand it on daily basis to the cash desks of banks through the collection service or independently.

Economic entities with an average daily cash proceeds of less than 20 times the minimum wage have the opportunity to hand it over to the cash offices of banks through the collection service during the periods they determine or independently.

Uzbek President canceled cash collection of cash proceeds exclusively through the collection services of the Central Bank, creating the possibility to organize alternative collection services in the manner prescribed by law.

Entrepreneurs also received the right to carry out non-cash payments between themselves and individual entrepreneurs using corporate bank cards without concluding sales contracts, with issuing an invoice.

The export of goods and services via the Internet with payment through international payment systems in the amount of up to US$5,000 on one invoice does not require the conclusion of a written contract with customers and is allowed to all legal and natural persons without exception without entering information into the Single Electronic Information System cargo customs declaration in accordance with the rules for the provision of postal services, with reporting in accordance with generally accepted international practice.

From 1 January 2019, the taxation conditions for legal entities engaged in brokerage activities in the securities market apply to incomes of members of commodity exchanges.

Individuals are allowed to export out of the Republic of Uzbekistan without submitting a customs declaration of goods with a total value of not more than US$5,000.