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«On additional measures to ensure the accelerated development of entrepreneurial activity, comprehensive protection of private property and substantial improvement of business climate»

Shavkat Mirziyoyev visits Samarkand region

Under the leadership of the First President of the Republic of Uzbekistan Islam Karimov as in all over the country wide-scale creative works have been carried out in Samarkand region, which are continuing in all spheres.

Interim President of the Republic of Uzbekistan, country’s Prime Minister Shavkat Mirziyoyev visited Samarkand region on 5 October 2016 to evaluate the process of social-economic reforms. Carried out works in industry, agriculture and social sphere.

Shavkat Mirziyoyev visited the burial place of First President of the Republic of Uzbekistan Islam Karimov.

After that, he traveled to Akdarya district, where he familiarized with the course of agricultural works, discussed with farmers the issues of improving the efficiency of agriculture, transition from the cultivation of agricultural products to further improving their processing.

The Interim President got acquainted with the projects of construction of modern multi-storey residential buildings in Samarkand, construction of which will solve the housing problems of many citizens. The new residential complexes will have all necessary social infrastructure for comfortable living of people.

Shavkat Mirziyoyev , getting acquainted with the road infrastructure of Samarkand, stressed the necessity of the construction of modern tram lines. Noting the presence of all possibilities and conditions in this direction, the benefits of the tram as an environmentally friendly vehicle that has a minimal impact on the environment, he drew attention to the qualitative implementation of this project and its completion by the Navruz holiday in 2017.

Another issue considered was the implementation of the project for the construction of a unique facility for the generation of electricity from alternative sources on the basis of modern technologies conducted jointly with Chinese specialists. The commissioning of this solar station will improve the reliability of power supply of existing and newly introduced consumers in Samarkand region and the south-western part of our nation's power grid in general. The annual power generation of the solar photovoltaic plant will constitute 158,3 million kW/h. Within the construction of such complexes, a task was given for greater use of domestic products, to build similar stations in other regions of our country.

On the same day, Shavkat Mirziyoyev visited the industrial zone created in Urgut district. 40 industrial enterprises, including 19 joint ventures operate to date across almost 42 hectares of territory. Some 1,200 people are employed in these enterprises. Last year alone these ventures produced more than two dozen types of industrial products worth 157.5 billion soums, with the exports exceeding $10 million. They produce carpets and carpet products, synthetic fiber, gas ovens, disposable plastic kitchenware, polymer clay and other products from domestic raw materials.

Another 78 projects are scheduled for implementation in 2017, due to which some 3 thousand 400 jobs will be created.

For effective use of the resource base of Urgut district, further development of its industrial and export potential, attraction of investments and advanced technology, the Interim President emphasized the creation of the new Urgut free industrial zone.

At the Urgut district administration, Shavkat Mirziyoyev held a meeting with representatives of the Samarkand region. In the example of Urgut district, he presented a comprehensive program for the future socio-economic development of Samarkand region.

Particular attention at the event was devoted to the issues of further improvement of people's living conditions through building new housing in cities and district centers of the region, development of engineering communications and social infrastructure, in particular, reconstruction of roads for internal use, the improved provision of drinking water.

Shavkat Mirziyoyev gave examples of appeals submitted to the virtual reception of the Prime Minister on the government portal, and gave concrete instructions to heads of the region to address these issues in a timely manner and to take appropriate actions. It was emphasized that each such appeal is under the control of the Prime Minister.

(Source: UzA)

10th International Industrial Fair and Cooperation Exchange

10th International Industrial Fair and Cooperation Exchange to take place on October 24-31

From 24 to 31 October Tashkent will host the 10th International Industrial Fair and Cooperation Exchange. The stands of participants of the fair will present all industries, the wide range of products manufactured by domestic enterprises, as well as promising high-tech products, the release of which is scheduled for 2017. Last year more than 2 thousand domestic enterprises participated in the event. For the first 9 years of the International Industrial Fair and Cooperation Exchange the number of participants has increased by 9 times. A briefing with the participation of the diplomatic corps accredited in our country, and representatives of international organizations took place in the capital.

Territorial and sectoral industrial fairs, which are the first stage of the 10th International Industrial Fair and Cooperation Exchange were underway from March to June this year. Over 90 thousand people, including 375 representatives of foreign companies participated in the Territorial Fair.

The entire infrastructure of the exhibition complex Uzexpocentre comprises 4 Pavilions, 2 atriums, 2 conference rooms, 3 open  exhibition halls. Given the interest in the event from small business entities, two closed exhibition constructions with the capacity of more than 2 thousand sq. meters are additionally provided. Currently, preparations for the coming Exchange are in full swing.

At that, a constant work is carried out on updating the common information base on the country’s production.

The briefing participants also told about the prospects of the production localization and measures of state support for production localization of goods and services in Uzbekistan.

Last year more than 1,200 representatives of foreign firms and companies from 55 countries of the world participated in the International Industrial Fair and Cooperation Exchange. In its frameworks contracts for the purchase of products for industrial cooperation in the amount of more than 11 trillion soums (currency rates of CB RU from 07.10.2016, 1$= 3028.47 soums) were signed, including export contracts exceeding 8.3 billion dollars.

(Source: UzReport.uz)

TECHNOLOGIES

Uzbekistan has launched a unique application Uzbekneftegaz360 in the framework of the project on ‘Power of Construction: Contemporary History of the Oil and Gas Industry in Uzbekistan’

The application provides access to more than 100 panoramic videos and photos from all over the country. Along with views from production and oil extraction sites, the users can also see social infrastructure, urban panoramas, social, cultural and sports facilities that have been built in 25 years of independence. It would be right say that the developers have assembled an unusual puzzle of contemporary Uzbekistan.

The photos for the application were taken not by traditional cameras, but by the latest photo and video cameras for 360 degree panoramic filming. That has strengthened the ‘presence effect’ and updated the concept of panoramic photography.

The media can be viewed in common mode on smartphones and tablets, as well as in ‘immersion’ mode with virtual reality glasses. The cross-platform application is already available for download in the AppStore, PlayMarket, as well as through a special QR-code and on the official website of Uzbekneftegaz.

The application is innovative both for Uzbekistan and for the entire region, and it is the world’s pioneer in terms of presentation of the country in virtual reality. Previously, VR-applications were developed exclusively for advertising and commercial purposes, for example, by order of global automakers such as BMW, Mercedes-Benz and multinational companies. By creating Uzbekneftegaz360, the developers have once again demonstrated the engineering and innovative capacity of Uzbekistan in this area.

”Being the country’s largest holding company, Uzbekneftegaz incorporates six joint stock companies and more than 200 enterprises that enploy more than 128,000 people. Uzbekistan ranks among ten world’s largest gas-producing countries with the concentration of a third of all Central Asian hydrocarbon stocks.

(Source: «Uzbekistan Today» newspaper)

BUSINESS CLIMATE

«On additional measures to ensure the accelerated development of entrepreneurial activity, comprehensive protection of private property and substantial improvement of business climate»

Decree of the President of Uzbekistan 

In order to ensure the accelerated development of small business and private entrepreneurship, further strengthen the legal mechanisms for protection and guarantees of the inviolability of private property, elimination of bureaucratic obstacles to business development, improvement of investment climate and business environment in the country: 

1. Identify provision of greater freedom for small business and private entrepreneurship, radical reduction of government intervention in their activities, provision of early warning, efficient prevention of violations as a top priority of the state policy and the primary task of public authorities, involved in the sphere of further development of entrepreneurship. 

Public authorities, especially law enforcement and regulatory agencies must: 

ensure unconditional implementation of the above requirements, as well as the principle of priority of the rights and lawful interests of business entities in their work; 

within two months submit substantiated proposals based on critical analysis of their functions and authorities, aimed at improving and enhancing the effectiveness of measures on prevention of violations; 

ensure strict compliance with the requirements of the legislation on liability of officials for unlawful interference and obstruction in conducting a business, the unjustified suspension of the activity, as well as compensation of damages to businesses by responsible officials who caused such damages. 

2. Approve the Program of measures to ensure the rapid development of entrepreneurship, comprehensive protection of private property and substantial improvement of the business climate in the Republic of Uzbekistan according to the annex (hereinafter – Program). 

Impose on the heads of ministries and public authorities, local governments a personal responsibility for timely and proper execution of activities in the Program. 

3. Starting January 1, 2017: 

to abolish all kinds of unscheduled inspections of business entities, other than inspections related to liquidation of the legal entity, as well as short-term inspections, carried out on the basis of appeals of individuals and legal entities on the facts of violations of the law, exclusively by decision of the National Council on Coordination of Supervisory Authorities. 

to abolish all kinds of counter inspections of business entities, including inspections conducted as part of investigation under criminal cases; 

to exempt business entities and their staff, first-time offenders of legislation when conducting financial and economic activities, from civil and criminal liability, fines and financial sanctions (other than penalty) in case of voluntary elimination of the violations and compensation of damage to property within the established timeframes, except for cases of harm to human life and health; 

to exempt persons who committed an offense related to the implementation of illegal business activities, from civil and criminal liability, in case of voluntary compensation of the damage, registering as business entities and obtaining necessary permits within one month from the date of detection of the offense; 

to criminal penalty in the form of deprivation of the right to carry out business activities is not applied to businesses; 

to newly established manufacturing enterprises with foreign investments, have the right to pay taxes and other obligatory payments (except for the resource and customs duties) at the rates that were established on the date of their state registration, within the first five years of their operations; 

to exempt business entities from paying the state fee when they apply for issuing a writ of execution to enforce the arbitral court decisions; 

to abolish the requirement for registration of export contracts of business entities in the state customs service bodies, except for contracts for the export of goods specified in the appendices 1, 2 and 4 of the Decree of the President of the Republic of Uzbekistan dated October 10, 1997 № UP-1871 "On additional measures to stimulate the export of goods (works, services)", maintaining control and monitoring of the foreign trade contracts by currency control authorities through the Unified electronic information system of foreign trade operations; 

Certificate of origin of the exported goods from the Republic of Uzbekistan are issued within one day to exporters, who had previously received a similar certificate for identical goods. 

4. Recommend the Chambers of the Oliy Majlis of the Republic of Uzbekistan to consider establishment of the Ombudsman institution to protect the rights and lawful interests of business entities under the Oliy Majlis of the Republic of Uzbekistan with the following key authorities: 

participation in the formation and implementation of state policy in the field of business development, protection of the rights and lawful interests of business entities; 

provision of legal support to businesses going through the inspections of their activities; 

monitoring of the practical implementation of the norms and requirements of the legislation on guarantees of freedom of entrepreneurship; 

assessment of the impact of the adopted legislation on implementation of business activity; 

monitoring compliance of public, regulatory and law enforcement authorities, local governments with regulations protecting rights and lawful interests of entrepreneurs; 

5. The Ministry of Finance, Central Bank, State Tax Committee of the Republic of Uzbekistan, jointly with the relevant ministries and public authorities, submit within three months to the Cabinet of Ministers substantiated proposals aimed at: 

further improving the quality and efficiency of tax administration, ensuring minimization of costs for collection of taxes and other mandatory payments, the widespread introduction of remote monitoring and improving the legal literacy of taxpayers; 

the introduction of advanced market-based mechanisms of currency regulation and exchange rate policy to stimulate the growth of the export potential of the republic, attraction of foreign direct investments and improvement of competitiveness of domestic producers on foreign markets; 

further improvement of the legislation, providing comprehensive legal grounds and criteria for the appointment and conduct of the short-term inspections of business entities; 

reduction of the number and timeframes of conducting inspections by improving the efficiency of off-site control of activities of entrepreneurs and business entities; 

enhancing the legal framework on provision by audit firms and tax consultants of their services, to strengthen their accountability for the quality of services and the reliability of their reports as one of the main mechanisms for the prevention of offenses and guarantying uninterrupted operation of law-abiding businesses; 

introduction of modern principles and mechanisms of regulating the banking sector, the eradication and prevention of administrative interference into the activities of commercial banks by the public authorities, primarily the credit policy; 

abolition of barriers to implementation of effective banking operations, as well as ensuring the rights of banks’ clients on the free disposal of their own cash. 

6. The State Committee for Architecture and Construction, the State Committee for Nature Protection, the Ministry of Health, Ministry of Internal Affairs of the Republic of Uzbekistan, the Agency "Uzstandard" jointly with relevant ministries and public authorities, within three months: 

conduct and audit of all the technical requirements (sanitary, environmental, urban planning and construction regulations, fire safety regulations, normative documents on standardization and technical regulations), and based on the best international practice, develop and adopt appropriate regulations, aimed at eliminating inefficient, outdated rules and practices contradicting with market mechanisms; 

ensure posting and regular updating of existing regulations in the field of technical regulation on their official websites in order to provide unhindered and free access to them. 

7. The Supreme Court, Supreme Economic Court, the General Prosecutor's Office, the Ministry of Finance and the Ministry of Justice of the Republic of Uzbekistan jointly with relevant ministries and public authorities within three months: 

submit proposals for the phased transfer to the jurisdiction of courts of functions and powers of supervisory bodies on imposing administrative penalties on businesses and their staff; 

develop common grounds and substantiated criteria for determining the damages, caused as a result of economic crime and illegal interference into the activities of business entities. 

8. The General Prosecutor's Office in cooperation with the Supreme Court, the Ministry of Justice, Ministry of Internal Affairs, National Security Service of the Republic of Uzbekistan and other relevant ministries and public authorities within two months submit in the established manner: 

draft Law of the Republic of Uzbekistan "On Countering Corruption", aimed primarily at further strengthening the trust of citizens and businesses towards public authorities, to improve investment attractiveness of the country, as well as prevention of corruption offenses; 

proposals for further liberalization of criminal legislation related to business activities; 

proposals for amending legislation, providing for the establishment of a clear procedural regulation of initiating, conducting and extension of inspections of financial and economic activities within investigation of criminal cases, aimed primarily at ensuring the inviolability of private property, the prevention of undue interference into the activities of entrepreneurs and suspension of their operation. 

9. The Supreme Economic Court of the Republic of Uzbekistan within three months ensure development of the program, providing for a phased introduction of mechanisms of audio and video recording of hearings, publication on the web-sites of courts of the court decisions, in order to ensure transparency and objectivity, reliable legal protection of entrepreneurs' rights. 

10. The Ministry of Development of Information Technology and Communications jointly with the Ministry of Justice, Ministry of Economy, Ministry of Finance, Central Bank, the Chamber of Commerce of the Republic of Uzbekistan and other relevant ministries and public authorities, within one month submit to the Cabinet of Ministers proposals on extension of the list of public services, provided exclusively through “single window” centers for provision of public services to businesses. 

11. The Ministry of Justice, Ministry of Economy, the Ministry for the development of information technologies and telecommunications, the Chamber of Commerce of the Republic of Uzbekistan jointly with other relevant ministries and public authorities, within the three-month period conduct a critical review of regulations for compliance with the legislation on permit procedures, licensing and guarantees of the freedom of entrepreneurship and submit to the Cabinet of Ministers proposals on eliminating obsolete permit procedures and reduction of time related to licensing procedures. 

12. Assign a control over execution of this Decree to the first deputy Prime minister of Uzbekistan, Minister of Finance of the Republic of Uzbekistan R. Azimov and the Prosecutor General of the Republic of Uzbekistan I. Abdullaev. 

Acting President  of the Republic of Uzbekistan   Sh. Mirziyoyev 

October 5, 2016 

Tashkent City

* * *

Commentary to the Decree of the President of Uzbekistan

«On additional measures to ensure the accelerated development of entrepreneurial activity, comprehensive protection of private property and substantial improvement of business climate»

This approved decree is aimed primarily at further strengthening the legal protection of private property, creation of favorable conditions and comprehensive support for small business and private entrepreneurship, increasing the investment attractiveness of the Republic and is a clear evidence of the transition of state policy in this sphere to a qualitatively new level. 

In particular, the decree establishes "providing greater freedom to small business and private entrepreneurship, a radical reduction of interference in their activities with a focus on early warning, improving the efficiency of prevention of violations" as a critical priority and of paramount tasks of the state authorities. For these purposes, the state bodies, especially law enforcement and regulatory agencies are instructed to: 

- provide the unconditional implementation of the established requirements and the principle of priority of the rights and legitimate interests of business entities, and in connection with the above, to critically review own functions and powers; 

- ensure strict compliance with the requirements of the legislation on the responsibility of officials for illegal interference and obstruction of business activities, its unjustified suspension and compensation of the damage caused to business entities directly from the guilty. 

This provision obliges the public authorities to apply not only the most stringent disciplinary, administrative or criminal liability, but also to ensure the recovery of the damage caused to business entities directly from the perpetrators. 

The implementation of these measures is aimed at preventing the initiation and conduct of illegal inspections, particularly cases of unjustified suspension of the activity of businesses and causing losses due to illegal actions by workers of state organs. 

The decree establishes a number of fundamentally new mechanisms of state control, aimed at providing reliable legal guarantees against unjustified interference in the activities of business entities. 

In particular, starting from 1 January 2017, following unprecedented measures are to be applied, including the abolition of all kinds of: 

– unscheduled inspections over activities of business entities, excluding the inspections in connection with the liquidation of a legal entity, as well as conducted exceptionally by the decision of Republican Council on the coordination of regulatory authorities of short-term inspections based on appeals of individuals and legal entities about the facts of violations of the law; 

– counter checks of activities of business entities, including in criminal cases. 

Thus, from now on, regulatory authorities may not initiate unscheduled inspections. In order to ensure legal mechanisms for the protection of the rights and interests of citizens, short-term inspections remain limited only on the basis of appeals of individuals and legal entities on violations of the law. Such inspections can be carried out exclusively by the decision of the national Council, and its duration is limited to one working day. 

Along with this, continuing the policy towards liberalizing administrative and criminal law, the decree provides for such drastic new measures as the exemption of businesses and their employees, who made financial and economic violations for the first time from all kind of liabilities. Entities carrying out an entrepreneurial activity without state registration are also exempt from liability, in the case of compensation for their damages and of the voluntary elimination of the consequences of violations within the established deadlines. 

In addition, a criminal penalty of deprivation of the right to engage in entrepreneurial activities in respect of businesses is prohibited from now on. 

These standards not only preclude double punishment of businesses, but also provide an opportunity for citizens, first-time offenders, who compensated their guilt, to continue their business activities without negative consequences, which also intends to stimulate their business activity.

In this regard, appropriate amendments will be made to the Penal code, the Code of Uzbekistan on administrative responsibility, the Tax code and other laws. 

To improve the investment attractiveness of the Republic, the newly established industrial enterprises with foreign investments can enjoy tax rates and other mandatory payments in effect on the date of their registration during 5 years of their subsequent activity. 

This exemption applies to all enterprises with foreign investment irrespective of the amount invested. 

The implementation of the Decree will allow providing continuity and sequence of the course defined by the First President of the Republic of Uzbekistan on the drastic elimination of administrative barriers and artificial obstacles to the development of entrepreneurship as a key factor of sustainable development of the economy.

(Source: UzA)

International cooperation

Meeting of the delegation of Uzbekistan in Brussels

On October 5, 2016, the delegation of Uzbekistan headed by Minister of Foreign Affairs Abdulaziz Kamilov, which participated in the International Conference on Afghanistan, held a bilateral meetings with Minister of Foreign Affairs and Trade of Hungary Peter Szijjarto and State Secretary of the Ministry of Foreign Affairs of the French Republic Andre Vallini in Brussels.

During the meetings it was discussed the practical issues of development of bilateral relations at various fields, including a schedule of upcoming contacts at various levels.

(Source: Press Service of the MFA of the Republic of Uzbekistan)

sport

A Victory of Olympic Scale

Three gold, two silver and two bronze medals, and first team place… Such is the result of Team Uzbekistan’s performance in the Rio Olympics. It seems that we know everything about the athletes who have emerged triumphant. But when it comes to the head coach and his contributions to the training of athletes, we know next to nothing. Below, an Uzbekistan Today correspondent speaks to the boxing team’s head coach, Marat Kurbanov, about how Olympic gains were achieved.

Mr. Kurbanov, is the first team place in the Rio Olympics a pure chance or a well planned achievement of a goal?

“We all wanted to win and set ourselves a goal of securing a victory. I should say that throughout preparations for the Games, the Boxing Federation changed and improved its performance based on the real needs of the national team. The well coordinated work of the federation of specialists contributed to the fact that athletes achieve results that the whole team targets. Success in Rio de Janeiro is the result of the participation in numerous competitions, various tournaments in Uzbekistan and in foreign trips. The Federation supported all the initiatives of the coaching staff necessary for the training of athletes.

I especially want to emphasize that we held training camps with the strongest teams of the world. We, as one of the strongest teams, for example, were invited to Cuba. It was after the World Cup, where our guys won six medals. The Cuban team is one of the world’s boxing leaders. The training sessions proved very productive.”

You played a decisive role in the training of athletes: you determined the training strategy and all the sections of the Federation heeded your recommendations. However, you have never talked about the process itself…

 “Our victory is the result of coordinated work of many services of the federation, whose structure underwent many changes, including in the training of athletes. Facilities for the team were brought to the proper level; we did not face any denials. Each team member has a personal tablet, which we used to film the performance of potential rivals at various competitions so that our athletes could analyze them and develop fighting tactics.

I have been working with all members of the team except for Elshod Rasulov – he is older than the other guys – since an early age. In the capacity of children’s first head coach of the national team, then the youth, and then, and adult - together we went through all the stages of growing up, of becoming, of training. We became so close. I know all about them that a coach needs to know in order to achieve desired results.

Our victory is a result of training on new techniques, eliminating the standard approach. We have an individual approach to each athlete. Everything depends on the level of an athlete’s fatigue, mood, and state of health. On this basis, we determine the training process. That is, we began to pay more attention to personal qualities and boxer’s condition.

And I want to say that in the federation, the coaching staff has developed a creative friendly team where everyone understands each other perfectly. Special thanks to the guys’ personal trainers for mutual understanding.”

I have heard that the Uzbek boxing team took ten sparring partners to Rio…

 “Sixteen, not ten. Firstly, we had training sessions in Brazil prior to the Olympics, and secondly, we needed assistants for the team’s training.”

How many coaches did you take to Rio?

 “All the personal coaches of athletes who were to participate in the Olympic Games joined the big trip. They were a big help. I wouldn’t have been able to handle the eleven athletes on my own, especially when there were days when two or more athletes participated. We had to not only see them in the ring but also continue working with those who were resting on the day.”

After the Olympics, winners are much talked about while those who did not win medals are not.

 “They did a good job too. Yodgoroy Mirzayeva, for example, was the first female boxer who represented our country at the Olympics. She had just started who medal path to the prestigious competitions, while her rivals already hold titles and are more experienced athletes.

Khurshid Tajibayev performing in the -60 kg weight category did an equal fight with the Brazilian. In such cases, they say that native walls helped – the victory was given to Conceicao.

Elshod Rasulov (81 kg) was let down by his neck injury while Bahodir Jalalov (+91 kg) is still quite young, he’s only 21 years old. This is a special weight category where athletes reach their peak at age 25-27. So this was a good school for him.”

According to the results of licensing competitions in the -60 kg weight class, Elnur could have performed. Why was the bet made on Tajibayev?

“Because Hurhsid is already 26 and he is more experienced, while Elnur is younger and he will have all that in the future.  We decided to give Tajibayev a chance.”

You mentioned traumas. In this connection, I am curious to know your opinion of the importance of sports medicine.

“Six months before the Olympics the team started experiencing tough luck: the boys - one by one – suffered injuries. Eight of the 11 had injuries of varying degrees of complexity. Many thanks to doctors, who quickly put the athletes back on their feet. I would especially like to emphasize that this was done by Uzbek specialists, who have always been close to the team.

  Our successes were harassing ill-wishers. It was possible even to hear statements that the Uzbek national team needed to be tested for doping. We went through it. Samples were taken from the guys and at the training camp and in training, and after the performances. And we never knew to whom boxer once again suitable doping officer. I'm sure of my trainees: an analysis confirmed that our athletes conscientiously comply with all the recommendations.

  I did not start talking about doping accidentally. Today, standards are such that athletes need neither injections nor pills – an athlete can eat a new food and ... test positively. We are thankful to our doctors, who strictly controlled and monitored the diet of athletes, there were no incidents. A well-chosen diet, vitamin makeup of the athletes’ body also played a huge role in the preparation for a competition. Doctors have worked very hard and efficiently.”

The Olympics finished. What are your plans to work with the team in the near future?

 “Right now the athletes are resting. On the first of October at our base in Yangiabad we will have the first two weeks of training. The first important starting point for us in the next four years will be the Asian championships that will be held next year.”


(Source: «Uzbekistan Today» newspaper)

 
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