Progress Limited

"UzMedExpo"

2019-08-19

September 26-28, Tashkent will host the 11th international medical exhibition "UzMedExpo"

The exhibition "UzMedExpo" is demonstration of achievements of domestic and foreign manufacturers. Manufacturers and distributors of medical and dental equipment, equipment, pharmaceutical products, clinics will present their products and services to thousands of professional visitors from different regions.

Venue:

The Republic of Uzbekistan, Tashkent, Amir Temur street, 107

National exhibition Complex "UzExpoCentre", Pavilion № 3

The exhibition:

From 10.00 to 17.00. The entrance of visitors is stopped 30 minutes before the closing of exhibitions.

On the first and second day, the entrance to the exhibition – for industry professionals.

Students are invited to the third day of exhibitions.

Entrance to conferences and seminars is free of charge upon prior request.

Details from the organizers:

Tel: (+998-71) 238-94-68

Mob.: (+998-93) 501-02-78

E-mail: sales@ieguzexpo.com, med@ieg.uz

site: www.ieg.uz

Free economic zone "Andijon-Pharm" is being created in Uzbekistan» It is established that during the period of functioning on the territory of FEZ "Andijon-Pharm" there are special tax and customs regimes.

2019-01-17

President Shavkat Mirziyoyev signed a Decree " on the creation of a free economic zone "Andijon-Pharm".

The main tasks and activities of FEZ "Andijon-Pharm" are defined:

- attracting investments and advanced technologies of leading companies from the Republic of India to create modern production facilities for the production of pharmaceutical products and medicines with high added value, including in the form of " in-bulk»;

- creation of new modern production facilities and facilities for the processing of medicinal plant raw materials and the production of finished medicines, medical products, auxiliary and packaging materials;

- ensuring the integrated and effective use of the production and resource potential of the Andijan region in the cultivation of medicinal plant raw materials in natural conditions for its subsequent processing;

- deepening the processes of localization of production of pharmaceutical products on the basis of local medicinal plant raw materials by establishing close cooperation ties and the development of industrial cooperation between the organizations of the free pharmaceutical zone and the country as a whole;

– rapid development of utilities, transport and social infrastructure of SEZ "Andijon-farm" and the establishment of the modern infrastructure, quality of logistics services;

- participation in the training of highly qualified specialists on the basis of current and future needs of FEZ "Andijon-Pharm" in specialized personnel, including through their practical training at the enterprises located in the territory of FEZ "Andijon-Pharm".

It is established that during the period of functioning on the territory of FEZ "Andijon-Pharm" there are special tax and customs regimes.

https://uzreport.news/economy/v-uzbekistane-sozdaetsya-svobodnaya-ekonomicheskaya-zona-andijon-farm?utm_source=yxnews&utm_medium=desktop

The EBRD in Uzbekistan

2019-01-12

https://www.ebrd.com/uzbekistan.html

The EBRD in Uzbekistan

Uzbekistan and the EBRD

A new approach by the Uzbekistan authorities has allowed the EBRD to re-engage in the country, open a new Resident Office in Tashkent and prepare a new Country Strategy adopted by the Board of Directors in September 2018.

Law of The Republic of Uzbekistan on Guarantees and Measures of Protection of Foreign Investors' Rights

2019-01-12

Law of The Republic of Uzbekistan on Guarantees and Measures of Protection of Foreign Investors' Rights

Law No. N 611-I

The present document was amended in accordance with:

the Law RUz dtd 12.12.2003, N 568-II,

the Law RUz dtd 16.09.2005, N ZRU-6,

the Law RUz dtd 31.12.2008, N ZRU-197.

Article 1. Purpose and tasks of the Law

The present law determines guarantees and measures of protection of rights of foreign investors executed investment activity on the territory of the Republic of Uzbekistan.

The basic tasks of the present law are the following:

formation of a complex of measures on guarantees and protection of foreign investors' rights;
determination of conditions of granting of additional guarantees and measures of protection for particular categories of foreign investors and foreign investments.

Article 2. Legislation on guarantees and measures of protection of foreign investors' rights

Relations associated with granting and implementation of guarantees and measures of protection of foreign investors' rights are regulated by the present Law, the law of the Republic of Uzbekistan "On foreign investments" and other legislative acts.

If an international agreement concluded by the Republic of Uzbekistan established other rules than those provided by the legislation on guarantees and measures of protection of foreign investors' rights than rules of international agreement are applied.

Article 3. Guarantees of foreign investors' rights

The state guarantees and protects the rights of foreign investors who execute investment activity on the territory of the Republic of Uzbekistan.

Discrimination is not admitted to foreign investors in connection with their nationality, place of residence, denomination, a place of execution of economic activity, as well as depending on the country of origin of investors or investments with taking into account guarantee of realization of international agreements of the Republic of Uzbekistan.

Legislative acts including departmental normative ones have not retroactive effect if their execution causes damage to foreign investor or foreign investments.

If the subsequent legislation of the Republic of Uzbekistan makes worse investment conditions, than legislation current on the date of investment is applied to foreign investments within ten years of the date of investment. The foreign investor has the right at his own discretion to apply those provisions of a new legislation which make better conditions of his investment. (Part in edition of the Law of RUz dtd 16.09. 2005 No. N ZRU-6)

Worsening conditions of investments refer to changes and amendments to the legislation as well as adoption of the new legal acts, providing:

increase of profits tax amount (rate) on incomes received as dividends paid to the foreign investor; (Paragraph in edition of the Law of RUz dtd December 31.12. 2008 No. ZRU-197)
introduction of additional requirements that complicate procedure of repatriation or reduce the size of foreign investor's income (profit), being transferred outside the Republic of Uzbekistan, except for the cases, when the authorized state body stops repatriation of cash of foreign investor on conditions of non-discriminative implementation of legislation acts in case of insolvency and bankruptcy of the enterprise with foreign investments or protection of the rights of creditors, criminal acts or the administrative offences accomplished by the foreign investor - the physical person, or other cases demanding necessity of stoppage of such repatriation according to judicial or the arbitral decision;
introduction of quantitative restrictions to volumes of investments and other additional requirements to the size of investments, including in form of increase in the minimal volume of foreign investments in the enterprises with foreign investments;
introduction of restrictions on share of the foreign investor in authorized capitals of the enterprises;
introduction of additional procedures of registration and prolongation of visas of foreign investors - the physical persons, as well as other additional requirements on making foreign investments. (Part is introduced according to Law of RUz dtd 16.09. 2005 N ZRU-6)

Order of implementation of the parts four and five of the present article is determined by the Cabinet of Ministers of the Republic of Uzbekistan. (Part is introduced according to Law of RUz dtd 16.09. 2005 N ZRU-6)

Parts five-eight should be regarded seven-ten according to the Law of RUz 16.09. 2005 N ZRU-6

All agreements on foreign investments, first of all private ones, in the part of security of unconditional guarantees of their fulfillment, are under control of relevant bodies authorized by the government of the Republic of Uzbekistan.

State administration bodies and local authorities has no right to interfere in economic activity of foreign investors executed in accordance with the legislation of the Republic of Uzbekistan.

If, the state administration bodies and local authorities under their own legal power, reveal violation of the law by the foreign investor, they can assume only those measures which they are authorized for and which are associated directly with elimination of relevant violation. The state administration bodies and local authorities can not use the fact of violation as a ground for interference or limitation of other legal activity of the foreign investor.

The given article is not applied to approval, amendment or abrogation of legislative acts which are connected directly with assurance of protection of interests of national security of the Republic of Uzbekistan, specified under common principles of an international law.

Article 4. Additional guarantees and measures of protection granted to foreign investors

Together with common guarantees and measures of protection of foreign investors, additional guarantees and measures of protection including ones providing absolute fulfillment by the partners of their obligations to foreign investors, can be granted by the legislation.

Additional guarantees and measures of protection can be granted to foreign investors in every particular case under investment to the following:

to priority branches providing stable economic growth and progressive structural changes of country's economy;
to priority projects providing consolidation and expansion of export potential of the republic, its integration into global economic cooperation;
to the projects of small business which realization is directed to processing of raw materials, primary goods, production of consumer goods and services, assurance of employment of population. (Paragraph in edition of the Law of RUz dtd 12.12. 2003 N 568-II)

Additional guarantees and measures of protection to foreign investors can include granting of the government's guarantee of the Republic of Uzbekistan, rendering of assistance in financing of investment projects, establishment of a special tax and payment regime, the state monitoring of realization of projects and other measures in accordance with the legislation.

Additional guarantees and measures of protection are granted to foreign investors by the special Government's decisions in which in particular, conditions and order of investment, use and security of recoupment of foreign investments are provided.

Article 5. Guarantees against nationalization. Conditions of execution of requisition

Foreign investments and other assets of foreign investors of the Republic of Uzbekistan are not subject to nationalization.

Foreign investments and other assets of foreign investors are not subject to requisition except for cases of natural calamities, accidents, epidemics, epizootics.

The decision on requisition is taken by the Cabinet of Ministers of the Republic of Uzbekistan under observation of requirements on which requisition:

is limited by minimal amount of investments or other assets required to solve tasks following from indicated cases;
is executed on non discriminatory basis and in accordance with the order established by the legislation;
is accompanied by payment of compensation adequate to inflicted loss. A state is a guarantor of timely fulfillment of indicated compensation payments.

A foreign investor has the right to contend in legal form and by arbitration the following:

legality of the purpose used for execution of requisition;
an amount of requisitions;
valuation of requisited investments and other assets;
correspondence of payment of compensation subject to payment;
procedure which was observed by state administration bodies and local authorities under execution of requisition.

Article 6. Guarantees of funds use

Foreign investor's profits received in the Republic of Uzbekistan can be re-invested on the territory of the Republic of Uzbekistan or used by all means at the foreign investor's discretion.

According to the legislation, the enterprises with foreign investments have the right for the following:

to open, use and dispose accounts in any currency and any bank on the territory of the Republic of Uzbekistan as well as outside it;
to receive and return loans in foreign currency.
Limitation of use or compulsory withdrawal of resources from the accounts of an enterprise with foreign investments can be effected by the state administration bodies and local authorities exclusively in accordance with the procedure established by the legislation.

Article 7. Guarantees of funds transfer

Foreign investors are guaranteed a free transfer of funds in foreign currency to and from the Republic of Uzbekistan without any limitations provided payment of taxes and other obligatory payments by them in accordance with the procedure established by the legislation of the Republic of Uzbekistan. Such transfers include the following:

initial and additional sums designed either to support or to increase foreign investments;
income received from investment execution;
funds received as compensation for inflicted losses in accordance with the present Law;
payments executed in order of agreements execution;
proceeds of sales of all or part of foreign investments;
payments arised on account of dispute settlement including any judicial or arbitral decision;
salary and other payments to workers;
funds from other sources received in accordance with the legislation.

In accordance with the rules of international law, the state can stop repatriation of foreign investor's funds on terms of non discriminatory application of legislative acts in cases of insolvency and bankruptcy of an enterprise with foreign investments or protection of creditors' rights, criminal acts or administrative infringement of a law effected by a foreign investor - natural entity, or other necessity to stop such repatriation according to arbitration or court decision.

Article 8. Guarantees of refund of foreign investments in connection with cessation of investment activity

The foreign investor has the right to stop investment activity in the Republic of Uzbekistan in accordance with the order established by the legislation.

After cessation of investment activity, the foreign investor has the right for free repatriation expressed either in money or natural form of his assets got as a result of cessation of investment activity without loss for fulfillment of foreign partner's obligations with regard to the Republic of Uzbekistan or other creditors.

Article 9. Free access to open information

Legislative acts including departmental normative ones as well as judicial decisions effecting the foreign investors' interest anywise, should be available to them; and in cases directly provided by the legislation - they should be published.

State administration bodies and local authorities are to provide information interested for foreign investor, at their request in accordance with the procedure stipulated by the legislation.

Article 10. Settlement of disputes

Dispute associated with foreign investments (investment dispute) directly or indirectly, can be settled on agreement of the parties by consultation between them. If the parties will not be able to achieve agreed settlement, than such dispute should be settled either by an economic court of the Republic of Uzbekistan or by arbitration in accordance with the rules and procedures of international agreements (conventions) on settlement of investment disputes, to which the Republic of Uzbekistan has been joined.

The parties involved in investment dispute can, on mutual agreement, determine the authority settling such dispute, as well as a county which can execute arbitration legal procedure of investment dispute.

Foreign investors' disputes, not associated with their investment activity on the territory of the Republic of Uzbekistan, shall be settled in accordance with the legislation of the Republic of Uzbekistan except for cases when other procedure for dispute settlement is provided by an agreement in keeping with the rules of international law.

Article 11. Amenability for violation of the legislation on guarantees and measures of protection of foreign investors' rights

If violation of legislation on guarantees and measures of protection of foreign investments' rights takes place, an investor has the right to get adequate compensation for inflicted losses in due course of law.

In case of adoption by the state administration bodies or local authorities of normative acts limiting foreign investors' rights as well as in cases of their unlawful interference into economic activity of foreign investors, than inflicted losses shall be compensated by such authorities in due course of law.

Officials of the state administration bodies or local authorities who violated a law on guarantees and protection of foreign investors' rights, are responsible according to the established order.

Article 12. Conflict provisions

In case of some non-conformity between provisions of the present law and other legislative acts or international agreements of the Republic of Uzbekistan, the provisions, more favorable for foreign investments have an advantage.

Article 13. Application of law to investments executed earlier

The present law is applied to foreign investments executed in the Republic of Uzbekistan prior to coming of the present law into force, only in part of its more preference to foreign investor.

https://investmentpolicyhub.unctad.org/InvestmentLaws/laws/29

Foreign direct investment (FDI) in Uzbekistan

2019-01-12

Foreign direct investment (FDI) in Uzbekistan

FDI in Figures

Uzbekistan ranks as the 74th in the 2018 Doing Business report by the World Bank, including a ranking as the 11th easiest country to start a business in. The country also ranks 157th out of 180 countries in Transparency International's 2017 Corruption Perceptions Index. According to the 2018 World Investment Report by the UNCTAD, FDI inflows slightly decreased drastically in 2017, to USD 96 million (-72%). The total stock of FDI stood at USD 9.2 billion (13.5% of GDP).

Seven special economic zones that offer tax breaks for investors have been created. The World Bank also claims investment growth moderated from 9.5% in 2016 to 7.1% in 2017; it is one of the main engines of growth. Uzbekistan plans to sell up to USD 300 million in Eurobonds during 2018 to be used production and infrastructure projects (Bloomberg).

Cooperation with China gained new momentum in 2011 with the launch of a construction project to build a pipeline extension linking the country to the Central Asia-China gas pipeline that has since been completed. China also pledged to invest USD 5 billion in infrastructure and in the mining sector. South Korea has also been an important partner investing over USD 2.6 billion in constructing a chemical plant. Japan has also expressed interest in Uzbek economy as the two countries signed an agreement to explore new hydrocarbon deposits; Japan contributed USD 5 billion to the project via the Japanese company JOGMEC. Russia has approached Saudi Arabia and Uzbekistan to construct a nuclear plant in these countries through Rosatom, Russia's nuclear corporation (TASS). Finally, USD 2.7 billion in money transfers from Russia to Uzbekistan was reported by the Russian central bank in 2017) (Reuters).

Restructuring of large state enterprises and joining the World Trade Organisation would bolster Uzbekistan's plea for FDI, but the country has been slow to advance on said fronts (Reuters).

Country Comparison For the Protection of Investors

	Uzbekistan	Eastern Europe & Central Asia	United States	Germany
Index of Transaction Transparency*	8.0	7.0	7.0	5.0
Index of Manager’s Responsibility**	3.0	5.0	9.0	5.0
Index of Shareholders’ Power***	6.0	6.0	4.0	8.0
Index of Investor Protection****	5.7	6.4	6.5	6.0

Source: Doing Business, 2018

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2015	2016	2017
FDI Inward Flow (million USD)	66	133	96
FDI Stock (million USD)	9,023	9,156	9,252
Number of Greenfield Investments***	18	23	10
FDI Inwards (in % of GFCF****)	0.3	0.3	n/a
FDI Stock (in % of GDP)	13.6	13.5	n/a

Source: UNCTAD, 2018

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

What to consider if you invest in Uzbekistan

Strong Points

Uzbekistan's key assets attracting FDI include:

- abundant and diversified natural resources (gas, gold, cotton, hydropower potential);
- low level of debt and comfortable foreign exchange reserves;
- ambitious public investment program;
- important size of the domestic market (population of 32 million)
- strategic position between China and Europe ("New Silk Road").

Weak Points

The major obstacles to FDI in Uzbekistan are :

- low economic diversification and dependence on commodity prices;
- low competitiveness;
- underdeveloped banking sector;
- state interventionism and difficult general business climate;
- autocratic regime.

Government Measures to Motivate or Restrict FDI

To improve the business environment, the Governement of Uzbekistan introduced in 2017 a number of legislative changes, including the cancellation of unscheduled, and seemingly arbitrary or punitive, inspections of businesses as of January 1, 2017; elimination of the requirement to convert certain percentages of hard currency export earnings at the official (artificially low) exchange rate; simplification of business registration procedures; creation of a Business Ombudsman office; and a Law on Countering Corruption that attempts to increase transparency in Government of Uzbekistan functions.

By law, foreign investors are welcome in all sectors of the Uzbek economy and the government cannot discriminate against foreign investors based on nationality, place of residence, or country of origin. However, government control of key industries has discriminatory effects on foreign investors. For example, the Governement of Uzbekistan retains strong control over all economic processes and maintains controlling shares of key industries, including energy, telecommunications, airlines, and mining. The government still regulates investment and capital flows in the raw cotton market and controls all silk sold in the country, dampening foreign investment in the textile and rug-weaving industries. Partial state ownership and government influence are common in many key sectors of the economy.

The state still reserves the right to export some commodities, such as nonferrous metals and minerals. In theory, private enterprises may freely establish, acquire, and dispose of equity interests in private businesses, but in practice, this is difficult to do because Uzbekistan’s securities markets are still underdeveloped.

Investment programmes were launched in order to encourage big investments in the priority sectors. Programmes include 86 foreign direct investment projects totaling 1.8 billion dollars, of which more than half is for the energy sector.

To encourage foreign investment, the Government provides tax incentives to joint stock companies for which foreign investment participation accounts for at least 15% of the authorised capital.

Bilateral investment conventions signed by Uzbekistan

The bilateral treaties on investment signed by Uzbekistan may be found on the Investment policy hub website.

Find out more about Investment Service Providers in Uzbekistan on GlobalTrade.net, the Directory for International Trade Service Providers.

https://www.nordeatrade.com/en/explore-new-market/uzbekistan/investment

The procedure of simplified import of imported medicines has been approved

2018-12-26

The procedure of simplified import of imported medicines has been approved

Earlier it was reported that a list of countries and international organizations was approved, the results of registration of medicines of which will be recognized in the Republic of Uzbekistan from November 1, 2018. On October 24, the Cabinet of Ministers approved the procedure according to which this norm will be implemented.

Recall, according to the Decree of the President of the Republic of Uzbekistan "on additional measures to improve the order of state registration and turnover of medicines" in the list of countries and international organizations, the results of registration of medicines which from November 1, 2018 will be recognized in the Republic of Uzbekistan:

1. commonwealth

2. Kingdom of Belgium

3. United Kingdom of great Britain and Northern Ireland

4. Germany

5. Kingdom of Denmark

6. state of Israel

7. Republic of Ireland

8. Kingdom of Spain

9. Italian Republic

10. Canada

11. republic of korea

12. Kingdom of Netherlands

13. Kingdom of Norway

14. Republic of Slovenia

15. United States of America

16. finnish republic

17. republic of france

18. Swiss Confederation

19. Kingdom of Sweden

20. Japan

21. European medicines Agency (EMA)

In accordance with the resolution of the Cabinet of Ministers "on approval of the regulations on the procedure for recognition of the results of registration of medicines carried out outside the Republic of Uzbekistan" recognition is carried out by The state center for examination and standardization of medicines, medical products and medical equipment Of the Agency for the development of the pharmaceutical industry under the Ministry of health of the Republic of Uzbekistan by studying the documents provided and inclusion of the record of recognition in the State register of medicines, medical devices and medical equipment authorized for use in medical practice.

Recognition provides for the inclusion of the results of state registration and record of recognition in The state register and the issuance of an extract from the register to the applicants at their request.

The results of recognition are included in the form of an entry in The state register for a period of five years. After the expiration of the first recognition at the request of the applicant, the results of recognition can be included in the state register without limitation of their validity.

Subject to recognition:

medicines;

new combinations of medicines registered in the Republic of Uzbekistan;

medicines previously registered (recognized) in the Republic of Uzbekistan, but produced in other dosage forms or by other manufacturer;

medicines previously registered (recognized) in the Republic of Uzbekistan in other packaging and/or with other markings.

The record of recognition in the state register confirms the fact of state registration and permission of the Ministry of health of the Republic of Uzbekistan to use the drug in medical practice.

It is not allowed to recognize medicines with different medicinal substances under the same trade name, as well as one manufacturer having the same composition of medicinal substances – under different trade names.

Termination of recognition and exclusion of this record from The state register shall be made by The state center in the following cases:

the establishment of a ban on the use of the drug in the Republic of Uzbekistan and the countries listed in the List;

detection in the application of the drug serious side effects not specified in the instructions for medical use;

identification of serious consequences for the health of citizens when using the drug;

at the initiative of the applicant.

Annulment of recognition and exclusion of this record from the State register shall be carried out in the court in case of establishing the fact of recognition and making a record of it in the state register with the use of false documents.

For recognition of medicines the applicant provides to The state center the statement of the established form with Appendix:

a) instructions for medical use, authorized translation of instructions into the state language and Russian;

b) documentation of the medicinal product, which contains:

dosage form;

dosage;

date before the expiry of which the medicine is authorized for use in medical practice in the country specified in the List, or the quality, safety and effectiveness of which is confirmed by the international organization specified in the List;

a unique number (authorization) admission of a medicinal product on the market;

C) the original of the marking sample in paper or electronic form;

d) reference standard of medicinal substances, foreign impurities with the application of documents confirming their quality;

e) a sample of the medicinal product-sufficient for carrying out three-time tests in accordance with the requirements of the regulatory document of the manufacturer with the application of the certificate of analysis of the medicinal product;

f) a certificate of a pharmaceutical product (SRR) issued by a foreign authorized body regulating foreign or interstate pharmaceutical products, or a copy certified in accordance with the established procedure. At the same time, a document equivalent to the certificate of a pharmaceutical product (SR) or a copy thereof certified in accordance with the established procedure may be submitted;

g) draft regulatory document of the medicinal product.

If the document provided in one of subparagraphs of this point includes also other information specified in other subparagraph of this point, its representation in the form of the separate document is not required.

For the recognition of medicinal substances (substances) registered outside the Republic of Uzbekistan, and the inclusion of an entry about it in the state register, the applicant shall submit to The state center an application in the prescribed form with the application:

(a) copies of the certificate of good manufacturing practice (GMR);

b) draft regulatory document of the medicinal substance (substance);

C) color layout marking;

d) reference standard of medicinal substances (substances), foreign impurities with the application of documents confirming their quality;

e) a sample of a medicinal substance (substance) - in an amount sufficient to conduct three-time tests in accordance with the requirements of the regulatory document of the pharmaceutical manufacturer with the application of the certificate of analysis of the medicinal substance (substance).

The application with the necessary documents shall be submitted to The state center directly, through the means of postal communication or in electronic form with notification of its receipt. The application submitted in electronic form is confirmed by the electronic digital signature of the applicant.

Samples of medicines shall be submitted directly or through postal communication.

Oleg Gaevoy

https://apteka.uz/novosti_mediciny_i_farmacevtiki/utverjden_poryadok_uproshchennogo_vvoza_lekarstv_importnogo_proizvodstva