Uzbekistan to create four special economic zones

cabminThe Government of Uzbekistan is planning to create four new free economic zones (FEZ) in the country. A draft presidential decree “On creation of free economic zones “Urgut”, “Gijduvan”, “Qoqand” and “Hazarasp” was published at the Single interactive state services portal for discussion.

According to the draft decree, Uzbekistan plans to create free economic zone “Urgut” (Samarkand region), free economic zone “Gijduvan” (Bukhara region), free economic zone “Qoqand” (Ferghana region) and free economic zone “Hazarasp” (Khorezm region).

State Committee of Uzbekistan on land resources, geodesy, cartography and state cadastre in cooperation with the Ministry of Economy and regional administrations will determine concrete borders of the new zones.

The main tasks and directions of the activities of the new zones will be attraction of foreign direct investments of foreign and local investors to create modern capacities on production of demanded goods in foreign markets and import-replacing products with high added value.

New zones also ensure complex and efficient use of production and resource potentials of Samarkand, Bukhara, Ferghana and Khorezm regions.

The zones will also create modern production capacities in the sphere of deep processing, storage and packaging of fruits, vegetables and agriculture goods, textile, carpet, footwear and leather products, ecologic secure chemical, pharmaceutical, foods, electrotechnical industry, machinery and automobile, construction materials, and other directions.

Among the tasks of the zone is also deepening processing of localized production of high technological goods on the base of local raw materials and products via establishing close cooperation relations and development of industrial cooperation.

The document said that new SEZs will function during 30 years with opportunity to prolong. The special tax and custom preferences will be in force during this time.

Presidential decree from 26 October 2016 set single legal regime for existing special economic zones and unified tax and customs preferences.

The same preferences will be offered to members of the SEZ Urgut, Gijduvan, Qoqand and Hazarasp.

The directorate of the zones will be exempted from payment of taxes and other mandatory payments to the state funds during the functioning of the zones.

Currently, three special economic zones are operating in Uzbekistan – free economic zone “Navoi” in Navoi region, free economic zone “Angren” in Tashkent region and free economic zone “Jizzakh” in Jizzakh region with the branch in Syrdarya region.