THEY SET THE TONE

The country is getting prepared to establish a specialized foreign trade organization, Uztekstileksport.

As part of Uzbekyengilsanoat, the new structure will provide marketing, information and consulting services, promote light industry products for export through promotional campaigns, and broadly represent export potential in exhibitions and publications.

It also will focus on supporting Uzbek light industry enterprises in exporting their products under direct contracts and through trading houses abroad. In addition, it will also assist in supplying industrial enterprises of Uzbekistan with processing equipment, spare parts, components, raw materials, accessories and fittings that are not produced in the republic.

The textile industry enterprises will be also provided with significant benefits and preferences to intensify their development.

For example, the manufacturers of cotton, blended and silk fabrics, garments, knitwear and leather goods, hats, hosiery, textile haberdashery, fittings and accessories, are exempt from income and property taxes, single tax payment for micro and small enterprises, mandatory contributions to the Republican Road Fund by January 1, 2020.

Besides, they were released from customs duties for imported equipment, components and raw materials that are not produced in the country. To be subject to benefits, the share of the company’s revenue from the production of the abovementioned products should be at least 60% per year in the total sales volume.

The release from the mandatory sale of part of export proceeds in foreign currency to the banks as of a January 1, 2017, is perhaps the most important incentive for the industry. However, this right will granted solely to the manufacturers and exporters of cotton, blended and silk fabrics, garments and knitwear, hats, hosiery and textile haberdashery.

The document provides some customs preferences. In particular, the processing equipment, accessories and spare parts that are not produced in Uzbekistan and imported within the framework of investment projects in the light industry, are exempted from customs duties by January 1, 2020.

In addition, business entities are exempt from customs duties for imported spare parts and components for processing equipment for textile, garment and knitwear industry, however, their list should be yet approved by the Cabinet of Ministers.

Jahon Information Agency