EXPANDING EXPORT CAPACITY

The further expansion of exports of domestic products in international markets ranks among the main thrusts of the economic block of the Action Strategy. To this end, the establishment of a new specialized foreign trade organization Uztuqimachilikeksport is currently in progress in Uzbekistan.

According to the Director of Advertising and Marketing Department of Uzbekyengilsanoat joint-stock company Davron Akbarov, experts have already specified the key missions and thrusts of the new trade organization.

“This primarily comes to the provision of marketing, information and consulting services to small businesses and private entrepreneurs operating in the system, assistance in expansion of exports of light industry products through promotional rallies and broad coverage of export capacity at exhibitions and in print publications. Besides, Uztuqimachilikeksport will also contribute to the technical and technological upgrade of textile enterprises,” he underlined.

Manufacturers of cotton, mixed and silk fabrics, textile, knitwear products, hats, socks, textile haberdashery and accessories are exempt from income tax and property tax, small businesses and micro firms are released from single tax payment and mandatory contributions to the Republican Road Fund by January 1, 2020. Cancellation of compulsory sales of a part of foreign currency proceeds from exports to authorized banks as of January 1, 2017 is another important factor to scale up export capacity of light industry enterprises.

Exports of yarn, ready-made garments, knitted fabrics, tablecloths, fabrics, children’s clothes and other light industry products has been growing dynamically. The number of trading houses abroad has been expanding accordingly. More than forty trading houses have been operating in Russia, Kazakhstan, Kyrgyzstan, China, and Turkey. In the future, the specialized foreign trade organization Uztuqimachilikexport is expected to contribute to the establishment of ten more trading houses in Kazakhstan, Tajikistan, Ukraine, Belarus, and some European states.

“The key function of the new structure is to provide a system-based assistance to light industry enterprises in organizing exports of their products under direct contracts and through trading houses abroad. The organization is also entrusted with promoting the development of intra-industry cooperation through the supply of domestically produced technological equipment, spare parts and components, raw materials. That all should help us to increase the production of finished goods by 2-3 times,” said Davron Akbarov.

There is no doubt that Uztuqimachilikeksport will play an important role in expansion of the ranks large enterprises and further enhancement of their export capacity.

(As part of the social order of the Oliy Majlis Public Fund for the Support of NGOs and Other Civil Society Institutions)

Uzbekistan Today