#Esanova Z.N., Bozarov S.S. LEGAL BASES OF ACTIVITY OF SPECIAL INDUSTRIAL ZONE “ANGREN” OF THE REPUBLIC OF UZBEKISTAN

 

 

LEGAL BASES OF ACTIVITY OF SPECIAL INDUSTRIAL ZONE ANGREN” OF THE REPUBLIC OF UZBEKISTAN

 

Esanova Zamira Normuratovna, doctor of law,

Associate professor of Tashkent State University of Law

 

Bozarov Sardor Sohibjonivich, independent researcher of

Tashkent State University of Law

 

Annotation

In this article it is reviewed special industrial zones, analyzed the legal bases of activity of special industrial zone, various preferences and facilitations are granted for foreign and local investors in the territory of the special industrial zone.

Key words: Special industrial zone, legal regulation of activity of special industrial zone, investment activity, entrepreneurship, facilitation and preferences, special legal regime.

 

The growth of industrial potential, implementation of modern innovation and high effective technologies in Uzbekistan are also connected with development of activity of special industrial zones that are established in our country. Implementation of these new high-technological industries in these special areas serves as the considerable factor for the development of industry and effective using of raw material of the region.

Special industrial zone “Angren” (hereinafter “Angren” SIZ) is one of the significant contributing factor of integration of Uzbekistan to the world economy.

Angren SIZ has been established according to the Decree of the President of the Republic of Uzbekistan ¹ UP-4436 dated April 13, 2012[1].

The total area of Angren SIZ is 14,5 thousand ha, that includes the territories of Angren and Ahangaran cities of Tashkent region, and part of territory located between them[2].

Establishment of “Angren” SIZ is aimed to form favorable conditions for attracting foreign and local investments to create up-to-date high-tech industrial capacities, which promote manufacture of high value-added competitive products, complex and efficient use of productive and resource capacity of Tashkent region, creation on a new jobs and increase of people’s income[3].

The main task and direction of “Angren” SIZ are:

·     the formation of favoraable condition on attracting investments, above all the direct investment for creation and effective activity of modern high-tech industries to produce competitive goods with high value-added products in domestic and world markets;

·     provision of comprehensive and effective using of industrial and resource potential of the region that is included in the special industrial zone, establishment of new manufacture on more advanced processing of raw-mineral resources;

·     deepening the process of localization of industry of high-tech outputs on the basis of local raw materials on the foundation of establishing close cooperative relations and the development of industrial cooperation between enterprises of the special industrial zone and the whole country;

·     provision of advanced developing and effective using of transport, engineering-communications and social infrastructure, further development and wide using of potential of logistics center "Angren" that was created in the system of automobile and container transportation of goods[4].

It is obvious that the free zones are always created in geographically convenient and favorable regions of country that allow to investors and entrepreneurs  many privileges. And one of the significant advantages of "Angren" SIZ is a close location to the major cities of Uzbekistan. In other words from free zone to the capital of Republic – Tashkent city is 80 km, to the cities of the Fergana Valley - 240 km[5].

Choosing the territory of "Angren" SIZ was carried out on the basis of a careful analysis of the industrial and investment potential of the region and the convenient location for access to foreign markets. In addition, "Angren" SIZ has an international logistics center "Angren" with total area of 30 hectares and accommodating more than 300 freight vehicles. The power of the logistics center is 4 million tons cargo operations[6].

However, the establishment and successful operation of SIZ is also based on solid legal foundation that includes favorable legal regime for accomplishing business and investment activity.

Table 1

 

The list of legal acts are regulating the activity of “Angren” SIZ

 

¹

 

Name of legal acts and dates

 

Name of legal acts

1.                

 

Act of the Republic of Uzbekistan ¹ 220-I,

on April 25, 1996

“About free economic zones”

2.                

 

Decree of the President of the Republic of Uzbekistan

¹.UP-4436, on April 13, 2012

 

About the establishment of special industrial zone “Angren”

3.                

 

Resolution of the Cabinet of Ministers of the Republic of Uzbekistan ¹ 146, on May 29, 2012

 

Regulation about special industrial zone “Angren”

4.                

 

Resolution of the Cabinet of Ministers of the Republic of Uzbekistan ¹ 146, on May 29, 2012

 

Regulation about administrative council of special industrial zone “Angren”

5.                

Resolution of the Cabinet of Ministers of the Republic of Uzbekistan ¹ 282, on October 03, 2012

 

Regulation about the procedure of choosing investment projects and registration of participants of special industrial zone “Angren”

 

6.                

Resolution of the Cabinet of Ministers of the Republic of Uzbekistan ¹ 234, on August 26, 2013

 

Regulation on the procedure for granting land plots for the participants of special industrial zones “Angren”

 

 

According to the article 5 of Law “About free economic zones”, free economic zones are created in the form of:

free trade zones;

free industrial zones;

free scientific and technical and other zones.

Free trade zone – includes consignment warehouses, customs free zones as well as areas for processing, packaging, sorting and storage of goods. Free trade zones are created in the border areas, airports, railway stations and other places of the customs territory of the Republic of Uzbekistan.

Free industrial zone – the territory on which introduced a special regime of economic and financial activity in order to stimulate entrepreneurship, attract foreign investment in priority sectors of the economy, introduction of advanced technologies. Free industrial zones include the area of export-oriented production, agropolis, business, industrial-economic and other areas.

Free scientific and technical zones – isolated areas where focused research and production and training centers, which establishes a special legal regime aimed at the development of scientific and industrial potential. Free scientific and technical areas are organized in the form of the functional areas of high-tech industrial parks, regional innovation centers – techno polis[7].

We all know that solid legal regime is main clue for successfully accomplishing the business and investment activity in territory of free economic zones.

According to the article 11 of Law “About free economic zones” in the free economic zones can be established special customs, currency, tax regime, as well as the regime of entry, exit and residence of citizens, labor, financial, credit activities and other regime aimed at attracting investment, promoting business growth and socio-economic development of area[8].

The special customs regime may include:

cancellation or reduction of customs duties on the import and export of goods;

cancellation or mitigation of non-tariff restrictions on the import or export;

simplified procedure of moving goods through the customs border of free economic zone with their mandatory declaration in the prescribed manner.

Special currency regime – provides for free circulation and the conversion of national and foreign currencies. The procedure of functioning of special currency regime is established by the Central Bank of the Republic of Uzbekistan.

Participants of business activity (legal entities and individuals) in the territory of free economic zones enjoy the benefits of taxes and other obligatory payments established by the legislation, on the basis of equal terms for domestic and foreign investors[9].

In other words during the activity of “Angren” SIZ (30 years with possibility of further extension) special tax treatment and customs benefits are effective in its territory.

Table 2

 

Participants of special industrial zone “Angren” are exempted

 

¹

Special industrial zone “Angren” on the basis of the Decree of the President of the Republic of Uzbekistan ¹ UP-4436, on April 13, 2012

1.

Income tax

2.

Property tax for legal entities

3.

Social infrastructure development tax

4.

Unified tax for small businesses

5.

Compulsory contributions to the republican road fund

6.

Customs payments (except customs clearance duties) for the equipment, components and materials that are not produced in the country (in accordance with the list approved by the Cabinet of Ministers).

 

Table 3

The preferences are provided for certain term depending on the amount of contributed investments

 

Certain

term

The volume of investments

Àngren” SIZ

3 years

from 300 thousands to 3 million US dollars

5 years

more than 3 million to 10 million US dollars

7 years

more than 10 million US dollars

 

On the basis of legal acts in the territory of “Angren” SIZ it was created the favorable conditions for foreign and local investors as well as entities by providing with high infrastructure including transport, engineering communication, system of safety labor and convenient vital activity of staff.

For the short period in the territory of “Angren” SIZ it was set up the manufacture of high-technology outputs as energy-saving lamps, various diameter copper pumps, coal brick as well as factory of producing sugar and enterprises with key industry like electrical engineering, mechanical engineering, chemicals and petrochemicals, pharmaceuticals, food processing and deep processing of fruits and vegetables, production of modern construction materials, leather industry.

It should be noted that by now it has been created solid legal basis of establishment and successful regulation of free economic zones as well as special industrial zones in the Republic of Uzbekistan. In addition there have been adopted many legal acts on developing the business activity and comprehensively protection the rights and lawful interests of foreign investors in our country and in the territory of free zones.

In spite of considerable and effective achievements in this sphere, we are attempting further development of legal bases of entrepreneurial and investment activity in special industrial zones, providing the guarantee of protection the rights and lawful interests of investors and entrepreneurs in the territory of special industrial zones of Uzbekistan.

 



[1] Collection of legislation of the Republic of Uzbekistan, 2012, ¹ 16, art. 177

[2] http://www.mfer.uz/ru/investments/special-economic-zones/952/

[3] Collection of legislation of the Republic of Uzbekistan, 2012, ¹ 16, art. 177

[4] Collection of legislation of the Republic of Uzbekistan, 2012, ¹ 16, art. 177

[5] http://www.mfer.uz/ru/investments/special-economic-zones/952/

[6] http://www.mfer.uz/ru/investments/special-economic-zones/952/

[7] Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1996, ¹ 5-6, art. 58, 2003, ¹ 5, art. 67. Collection of legislation of the Republic of Uzbekistan, 2005, ¹ 49-50, art. 365; 2006, ¹ 41, art. 405, 2009, ¹ 39, art. 424, 2015,
¹ 33, art. 439

[8] Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1996, ¹ 5-6, art. 58, 2003, ¹ 5, art. 67; Collection of legislation of the Republic of Uzbekistan, 2005, ¹ 49-50, art. 365; 2006, ¹ 41, art. 405, 2009, ¹ 39, art. 424, 2015,
¹ 33, art. 439

[9] Bulletin of the Oliy Majlis of the Republic of Uzbekistan, 1996, ¹ 5-6, art. 58, 2003, ¹ 5, art. 67. Collection of legislation of the Republic of Uzbekistan, 2005, ¹ 49-50, art. 365; 2006, ¹ 41, art. 405, 2009, ¹ 39, art. 424, 2015,
¹
33, art. 439