Support for jewelry makers in Uzbekistan

Tashkent, Uzbekistan (UzDaily.com) -- President Shavkat Mirziyoyev signed a decree “On measures to accelerate the development of the jewelry industry in the Republic of Uzbekistan”. This document is aimed at restoring and developing the domestic jewelry industry, as well as at expanding the production of high-quality and competitive jewelry products.

According to the Decree, from July 1, 2019, an order is introduced in accordance with which:

- domestic manufacturers licensed to manufacture jewelery are entitled to independently test and affix an imprint of the sample mark to the jewelry produced by them;

- individual entrepreneurs licensed to manufacture jewelry, have the right to independently sell their products, and also to buy scrap of precious metals, precious stones and products from them from the population;

- legal entities that do not have a state share in the statutory fund or with a state share of less than 50%, as well as individual entrepreneurs, independently determine the procedure for spending, accounting and storage in the production of precious metals and precious stones;

- physical persons are allowed to export ready-made jewelry, the value of which exceeds 5,000 US dollars, with the completion of a customs declaration;

- retail trade in jewelry is not subject to collection for the right of retail trade in certain types of goods;

-subjects of entrepreneurship within the framework of the prospecting activity can extract precious and semi-precious stones to provide jewelry manufacturers;

-with the participation of entrepreneurs licensed to manufacture jewelry, the Association "Uzbekzargarsanoati" through the association on a voluntary basis, will receive privileges and preferences of members of the association.

Commercial banks and jewelry manufacturers are entitled by decree to:

- buy precious metals in the form of measuring plates and pellets weighing 5 grams and above from Navoi MMC and Almalyk MMC based on the morning fixing price of the London Precious Metals Exchange;

- sell purchased precious metals to other jewelry manufacturers.

In addition, this resolution provides for release until July 1, 2022:

- from value added tax and excise tax on the production and sale of precious metals and domestic jewelery;

- from customs payments (with the exception of customs duties) imported into the Republic of Uzbekistan precious and semi-precious stones according to the lists formed in the prescribed manner.

From July 1, 2019, a fee for gold jewelry sold in retail is set in the amount of 1,000 (one thousand) soums per gram with annual indexation of its size when forming the parameters of the State Budget of the Republic of Uzbekistan for the next year.

From June 1, 2019, a mechanism to support manufacturers of jewelry products is being introduced through the provision of compensation by the State Fund for the support of business development to cover interest expenses on loans from commercial banks issued for the purchase of precious metals.