Close X
For entrepreneurs

Government support for export activity, privileges and advantages.

The legislation of the Republic of Uzbekistan includes following preferences for exporters:

· for value added tax (VAT)

· for excise tax

· for income tax

· for property tax

Preferences for value added tax (VAT)

According to Tax Code of the Republic of Uzbekistan (article 212), export of goods for free convertible currency is liable to nil rates of duty, which means exemption from VAT for material resources, used for production of exported goods. There is an exception for intermediary organizations and enterprises, which make export of raw materials such as precious metals.

Preferences for excise tax

An exemption from payment of excise tax for exporting excised goods is allowed to products, which were defined by the Cabinet of Ministers of the Republic of Uzbekistan (Tax Code of the Republic of Uzbekistan, article 230).

Excise tax is not charged for:

- realization of excised goods to export by their producers, except certain types of excised goods, which were defined by Cabinet of Ministers of the Republic of Uzbekistan.

- transfer of excised goods – recycling goods which were produced from goods that are under customs regime “recycling in customs territory”, only if they are exported from customs territory of the Republic of Uzbekistan afterward.

Preferences for income tax

According to the Decree of the President of the Republic of Uzbekistan on June 5, 2000 “On additional measures for stimulation of export-oriented goods’ producers” (№ УП-2613 on 05.06.2000), enterprises-exporters with all forms of ownership (except trade-intermediary and enterprises which export raw materials) exempt from income tax, gained from export of self-produced goods for free convertible currency. This measure is applied to small enterprises, which are taxpayers of single tax.

There is determined an order of tax payments for enterprises-exporters depending on a share of self-produced exported goods for free convertible currency out of total amount of realization:

- with the share of exports from 15 to 30% - determined rate of income tax decreases by 30%;

- with the share of exports over 30% - determined rate of income tax decreases two times.

This preference does not apply to commercial-intermediary enterprises, and to manufacturing plants, which export goods that are in the List approved by the Decree of the President of the Republic of Uzbekistan № УП-1871 on 10.10.1997.

Preferences for property tax

According to the Decree of the President of the Republic of Uzbekistan on June 5, 2000 “On additional measures for stimulation of export-oriented goods’ producers” (№ УП-2613 on 05.06.2000), there was determined an order of property tax payments, where its size depends on a share of self-produced exported goods from total amount of realization.

This preference is applied to enterprises with all forms of ownership, which produce export-oriented goods and sell it themselves or through specialized foreign trade unions or firms.

This preference does not apply to commercial-intermediary enterprises, and to manufacturing plants, which export goods such as cotton fiber, cotton yarn, petroleum, petroleum products, gas condensate, natural gas, electricity, precious, ferrous and non-ferrous metals for free convertible currency.

According to the Resolution of the President of the Republic of Uzbekistan №ПП-1512 on 28.03.2011 “On additional measures to stimulate the rapid development of the textile industry”, enterprises of the textile industry are exempt from property tax until January 1, 2016 which sell 80% and over of their production, including semi-finished products (yarn, fabric, knitted fabric and cotton waste) for free convertible currency.

Micro-and small firms are exempt from the mandatory sale of 50% of foreign exchange earnings, which came from export of goods produced with an exception of enterprises specified in the export and transit of gas (ПКМ РУз № 245 on 29.06.2000).

Industrial enterprises of all forms of ownership, exporting their own products are allowed to open trading houses and offices abroad for marketing research of foreign markets and advertising of products with the supply of goods to them on consignment (ПКМ РУз № 189 on 09.08.2005).

Exporters that supply their products to the trading houses abroad are exempt from the provision of a bank guarantee or insurance policy of export contracts from political and commercial risks, if they export goods of own production and exporter’s share of own produced goods should not be less than 51 percent in capital share (ПКМ РУз № 189 on 09.08.2005).

Within 180 days from the date of customs clearance, exporter must provide earnings of the foreign currency which received from exporting goods on the basis of agreements (contracts) to the company abroad, either return the goods to the territory of the Republic of Uzbekistan.

In accordance with PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

from April 7, 2014 of No. UP-4609 "About additional measures for further enhancement of the investment climate and the business environment in the Republic of Uzbekistan" the subjects of small business are defined as follows:

- individual entrepreneurs;
- microfirms with an average annual number of the workers occupied in production branches — no more than twenty people, in a services sector and other non-productive branches — no more than ten people, in wholesale, retail trade and public catering — no more than five people;
- small enterprises with an average annual number of the workers occupied in branches:
- the light, food industry and the industry of construction materials — no more than two hundred people;
- metal working and instrument making, the woodprocessing, furniture industry — no more than hundred people;
- mechanical engineering, metallurgy, fuel and energy and chemical industry, production and processing of agricultural production, construction and the other industrial and production sphere — no more than fifty people;
- sciences, scientific service, transport, communication, a services sector (except insurance companies), trade and public catering and other non-productive sphere — no more than twenty five people.

• It is authorized to the manufacturing enterprises of all forms of ownership exporting production of own production to opened abroad trading houses and representative offices for market researches of foreign markets and advertizing of the produced production with delivery of goods for them on a consignment basis. (No. 189 PKM RU from 09.08.2005g.) 
• The goods on a consignment basis, without providing the bank guarantee or the policy of assurance of export contracts of political and commercial risks, can be delivered by the exporter to the enterprise abroad on condition of export:
    products of own production by the exporter — the member of Chamber of commerce and industry;
    products of own production by exporters to the enterprise abroad in which authorized capital of its shares makes not less than 51 percent;
    the enterprises which are the structural divisions of the ministries, associations and the companies to the relevant enterprise abroad in which authorized capital of shares of the   ministry, association or the companies, and also of their specialized foreign trade companies make respectively not less 51 percent;

Support and assistance of the JSC "Uzsanoateksport" for enterpreneurs.

The JS "Uzsanoateksport" company is some kind of a bridge between the domestic enterprises and foreign buyers, connecting them together by trading relations, by organizing of meetings, organizing of participation at the international exhibitions both within the country, and abroad. Our company has long experience in the export activity of the Uzbek production. Moreover the company is a part of the Ministry of Foreign Economic Relations  Investments and Trade, that fact confirms the high status of competence of the company.

Export supporting program of our company:

  • Market research before starting exporting.
  • Search for the potential customer.
  • Accompaniment of the export.
  • Requirement features of different countries for the import of commodities.

Market research before starting exporting.

External market research is a very important step - success of the export activity depends on the realization of this step.

It can include both primary analytics before promoting of the new product and analysis of the market potential at the already exported commodities. Our specialists will take into account the entire specific issues of your business, will collect and analyze all necessary information regarding such matters as:

  • Capacity and existing market segments.
  • Designation of consumers and features of their behavior.
  • Competition, pricing, advertisement and promotion of your product.
  • Forecasting of progressing trends, possibility of channels expansion of sale for the enterprise.
  • Dynamics forecast of the sales volume and standards of pricing.

Search for the potential customer.

Searching for partners is an important and responsible constituent of the export activity, regardless of whether you are searching for the first customer or extending an existent client base. However, knowledge of the foreign languages, having access to the online-resources of foreign customers, experience at the market does not give you the picture of the reliability of the potential customer. For this reason, we have included within the framework of this program such important steps that suggest:.

  • Compile a database of customers, showing their name, legal address, activities, and contacts.
  • Negotiations with a partner for his interest in your products.
  • Preparation of commercial proposals, letters and other necessary information about your product and mailing it to interested parties.
  • The possibility of pre export financing.

Accompaniment of the export.

Successful export activity is impossible without professional, legal and informative ground. However, not all of the exporters can afford the costs of having a marketing department, skilled lawyers, and services of the logistic planning or the foreign trading specialists. Our team effectively provides assistance to our domestic producers in solving of the following issues:

  • Drafting, registration and examination of export contracts.
  • Certification of products and organizing of the quality management system in the company.
  • Consulting on custom registration of your commodities.
  • Gathering all permissive documents (veterinary, quarantine and other certificates).

Requirement features of different countries for the import of commodities.

It is generally known that the calculation of charges for the export of goods must include such important charges as payments for the import procedures and collections in the country of importer. In addition to that, it is necessary to take into account meeting of the requirements for processing, certification, packing and many others. There is a considerable amount of different associations of countries where there are particular regimes for the import of goods. Additionally there is a considerable amount of intergovernmental agreements, regarding trading relationship between them.

Our company has full information about such requirements and assists to the export of products of the Uzbek enterprises and businessmen, taking into account all above-mentioned requirements.