CHANGES IN THE LEGISLATION OF THE REPUBLIC OF UZBEKISTAN EFFECTIVE AS OF 01.01.2022
Cash Register and Digital Labeling
The Resolution of the President of the Republic of Uzbekistan (hereinafter – “Uzbekistan”) “On Additional Measures to Improve the Use of Cash Register in the Field of Retail Trade and Provision of Services” No. RP-5252 dated 04.10.2021 provides for:
A) a prohibition for:
• issuance of checks online by cash registers (hereinafter – the “CR”) and virtual cash
registers (hereinafter – the “VCR”), which do not display the identification codes of the
Unified Electronic National Catalog of Products (goods and services);
• inclusion in the State Register and registration with the tax authorities of the cash
machines that do not have the following capabilities:
✓ accepting payments from bank cards;
✓ submission to the tax authorities of information about the location of the online CR
(with the exception of terminals for accepting bank cards used as online CR and
VCR);
✓ self-reading and identification of barcodes and digital labeling codes.
B) a requirement for business entities engaged in the retail sale of products with digital labeling
to use special devices (2D scanners, data collection terminals or other types of special
devices) connected to the online CR and VCR that ensure the correct reading and
identification of barcodes and digital labeling codes.
Antimonopoly compliance system
The Decree of the President of Uzbekistan “On Additional Measures for Further Development of the Competitive Environment and Reduction of State Participation in the Economy” No. PD-6019
dated 06.07.2020 (hereinafter – the “Decree of the President of Uzbekistan No. 6019”) provides
for the implementation of the antimonopoly compliance system:
• in public administration bodies;
• in local executive authorities;
• in the entities of natural monopoly;
• in economic entities that occupy a dominant position in the commodity or financial market;
• in (state) corporate customers1 with an average annual revenue from the sale of goods for
the last 3 (three) years more than 30 (thirty) billion soums.
Antimonopoly Compliance is a system of internal organizational measures and procedures to ensure compliance of activities with the requirements of competition law, as well as to identify and prevent risks of their violations.
It should be noted that since 01.01.2021, the Antimonopoly Compliance has been implemented as a pilot in public administration bodies, local executive authorities, as well as in some companies with state participation specified in the Appendix No. 5 to the Decree of the President of the Uzbekistan No. 6019.
Changes in the state audits
Changes in the state audits
The Decree of the President of Uzbekistan “On Measures to Further Reduce the Administrative and Tax Burden for Business Entities, Improve the System of Protection of Legitimate Business Interests” No. PD-6314 dated 09.15.2021 establishes the procedure according to which:
• regulatory authorities check the activities of business entities using questionnaires that will be approved in agreement with the Commissioner for the Protection of the Rights and Legitimate Interests of Business Entities (hereinafter – the “Business Ombudsman”) and posted on the official website of regulatory authorities, as well as in the information system “Unified State Control” (after the launch of this system);
• employees of the Chamber of Commerce and Industry (hereinafter – the “CCI”) may participate in the audit of the activities of a business entity that is a member of the CCI with the consent of this business entity;
• record of the Audits Registration Book is conducted electronically by the Business Ombudsman;
• state audits of the activities of business entities are allowed after the implementation of measures to prevent offenses. The exceptions are tax audits, inspections carried out within the frames of criminal cases and investigative activities, as well as on the basis of claims and notifications about violations of legislative acts.
In the sphere of public services
The Decree of the President of Uzbekistan “On Measures to Improve the Infrastructure of Public Services Provision and Expand Public Access to Public Services” No. PD-6269 dated 07.24.2021 (hereinafter – the “Decree of the President of Uzbekistan No. PD-6269”) provides for the:
1. Reduction of state duties:
According to the list defined in the Annex No. 1 to the Decree of the President of Uzbekistan No. PD-6269 the state duties, fees and other payments levied for the provision of certain public services are reduced, among which:
• for obtaining prior consent to transactions for the acquisition of shares in the authorized capital of business entities - the fee is reduced from 10 (ten) specified base values2 (hereinafter – “SBV”) to 7 (seven) SBV (1,350,000 (one million three hundred and fifty thousand) soums, i.e. approximately 125 (one hundred and twenty-five) US dollars);
• for obtaining prior consent to transactions on merger and accession of business entities - the fee is reduced from 10 (ten) SBV up to 7 (seven) SBV (1,350,000 (one million three hundred and fifty thousand) soums, i.e. approximately 125 (one hundred and twenty-five) US dollars);
• for issuing a certificate of state registration of a new sample to business entities – the fee is reduced from 1 (one) SBV up to 0.2 SBV (54,000 (fifty-four thousand) soums, i.e. approximately 5 (five) US dollars).
2. Reduction of the terms for the provision of certain types of public services
According to the Annex No. 4 to the Decree of the President of Uzbekistan No. UP-6269, the terms for the provision of certain types of public services are reduced, including for the:
• accreditation of representative offices of foreign commercial organizations - from 10 (ten) to 5 (five) calendar days;
• review of applications for the provision of electronic digital signature keys - from 3 (three) to 1 (one) business day;
• issuance of a license for the production of food and denatured ethyl alcohol, alcoholic beverages from 15 (fifteen) to 10 (ten) calendar days;
• issuance of a license for wholesale of alcoholic beverages - from 15 (fifteen) to 5 (five) calendar days;
• maintenance of the register of commercial organizations providing legal advisory services - from 3 (three) to 1 (one) calendar day.
3. Cancellation of the provision of certain information
State bodies, economic associations, local executive authorities and state organizations shall no longer require certain information from business entities, including on:
• state registration of a business entity;
• obtaining a license, permitting documents and notifications;
• payment of state duties, fees and other payments;
• possession of securities, conducting transactions with securities, receiving dividends.
In the customs sphere
1. Simplification of customs procedures
The Decree of the President of Uzbekistan “On Simplification of Customs Procedures and Further Improvement of the Organizational Structure of the State Customs Service Bodies" No. PD-6310 dated 10.09.2021 establishes the procedure according to which:
• overpaid or excessively collected customs duties are to be returned to foreign economic activity (hereinafter – the “FEA”) participants within 3 (three) business days after adoption of the customs authorities' decision to return them;
• the minimum term of deferral or installment payment of customs duties is 14 (fourteen) days. During this term, no interest is charged. If the minimum deferral or installment payment term is exceeded, interest is charged in full for the entire period;
• the amount of additional customs duties which are not subject to collection and refund is set to up to 20 (twenty) percent of the SBV (54,000 (fifty-four thousand) soums, i.e. approximately 5 (five) US dollars);
• the practice of conditional release of goods before the completion of the examination to determine the code of goods in accordance with the Nomenclature of the FEA, appointed by the customs authority, with the provision of prepayment of customs duties is introduced;
• to ensure the fulfillment of obligations to pay customs duties of the FEA participant for several customs operations, it is now possible to present a single fulfillment. Such fulfillment shall be sufficient for execution of all obligations on customs duties;
• based on the application of the FEA participant, customs authorities make a preliminary decision for determination of the amount of the customs duties to be paid for goods.
2. Completion of the terms of certain customs duties exemptions
A) The Decree of the President of Uzbekistan “On Further Measures to Accelerate the Development of the Pharmaceutical Industry of the Republic in 2019-2021” No. PD-5707 dated 10.04.2019 provides for the cancellation of privileges on customs duties (except for customs clearance fees) for the products specified in the list provided for in the Resolution of the Cabinet of Ministers of Uzbekistan “On Approval of the List of Technological and Laboratory Equipment, Components and Spare Parts for them, as well as Raw Materials and Materials Used for the Production of Medicines, Medical Products and Packaging Materials, Exempt from Customs Duties” No. 1008 dated 17.12.2019, including the following:
• technological and laboratory equipment, components and spare parts for them;
• “clean rooms”, sandwich-panels and ventilation systems for pharmaceutical production facilities;
• raw materials and materials not produced in Uzbekistan, used for the maintenance of laboratory animals, preclinical research, production of medicines (including in-pharmacy production);
• medical products and packaging materials imported by pharmaceutical manufacturers, specialized research institutes and higher educational institutions for their own needs, as well as by the companies engaged in wholesale and retail sale of pharmaceutical products for in-pharmacy production.
B) The Resolution of the President of Uzbekistan “On Measures to Radically Improve the System of Cargo and Passenger Transportation" No. RP-4230 dated 06.03.2019 cancelled customs duties in respect of:
• locomotives, railway wagons and components (HS codes 8601-8607), cargo containers of all types (HS codes 8609) and aircraft (HS codes 8802) (except that for customs clearance);
• vehicles for the transportation of goods (HS codes 8704 21 (refrigerators), 8704 23 (except dump trucks), service life of which does not exceed 4 (four) years, and aviation fuel (except for value added tax and customs duties for the clearance).
Income declaration
The Decree of the President of Uzbekistan “On Measures to Create an Environment of Intolerant Attitude to Corruption, Cardinal Reduction of Corruption Factors in State and Public Administration, as well as Broad Involvement of the Public in This Process” No. 6257 dated 06.07.2021 introduces a system of mandatory declaration of income and property by civil servants, heads and deputy heads of organizations with a state share of more than 50 (fifty) percent, state enterprises and institutions, their spouses and minor children.
The decree also prohibits civil servants (with the exception of civil servants working abroad and property acquired before entering the civil service) to open and own accounts, store cash, own real estate and other property outside of Uzbekistan.