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Business Connections #11/2008
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What is New in Legislation of Uzbekistan?

Laws of the Republic of Uzbekistan

By Decree of the President (March 5, 2008, # UP-3972), the minimum wages of the employees of the government-financed offices and organizations, as well as scholarships, pensions and social allowances have increased at the average of 1.12 times. The Decree became effective on April 1, 2008. From that date, the minimum sizes of the below should be established in the territory of the Republic: 
Wage  20 865 soums;
Retirement pension  41 330 soums; 
Initial (zero) rating according to the unitary tariff  20 865 soums;
Allowances for the handicapped persons from birth  41 330 soums;
Allowances for the aged and disabled persons, not having the required record of service- 25 030 soums per month.

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Resolutions of the President

Resolution of the President “On Implementation of the Project “Development of Regional Motor Roads” with Participation of the Asian Development Bank” was issued on February 28, 2008 (# PP-804).  
On December 19, 2007, the Asian Development Bank allotted a loan (USD 75, 3 mln USD) to the Republic of Uzbekistan. The loan is aimed at implementation of the project on “Development of Regional Motor Roads”. The maturity period of the loan is 24 years, including a 4-year grace period. The project duration covers the years 2008-2011. For implementation of the project, the State Joint-Stock Company “Uzavtoyo'l” will establish the “Transyo'lqurilish” company that will be involved in the road construction and repair. The mentioned company will be established based on the manufacturing facilities of the “Uzyo'lmashservis” enterprise. The “Transyo'lqurilish” company will pay off the loan, and it will include technical equipment and machinery into its balance sheet (the mentioned equipment and machinery will be procured under the ADB loan). Besides this, the company will be responsible for the   targeted and efficient operation of the equipment and machinery. In strict compliance with the concluded contracts, it will be obliged to implement all the mechanized road construction works with due quality and in a timely manner. 
The company will enjoy a 4-year exemption from all the taxes and compulsory payments (except for the unitary tax and customs formalities fee), including the customs duties applicable for the goods as per the lists approved by the Cabinet of Ministers. The released funds will be directed to pay off a portion of the re-credited ADB loan and to develop and enhance the material and technical basis of the company.
The Resolution approves the project feasibility study, i.e. the ADB loan allocation scheme, repayment schedule for the principal amount and interest, and Provisions on the “Transyo'lqurilish” company establishment and activity.  

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Resolution of the President (#PP-805, February 29, 2008) approves the National Program “The Year of Youth”. The main trends of the program will be: improvement and enhancement of the legal basis by making such amendments  and modifications to the current legislation that will better provide and protect the rights of the youth; that will develop the educational process in the part of its continuity and consistency; that will improve the quality of construction and reconstruction of the educational institutions, and provide their modernization; that will ensure pivotal improvement of the educational system and personnel training; that will provide  employment  of the higher educational establishment graduates, and of those having  completed their military service, particularly in small towns, and rural areas; that will facilitate to prevention of AIDS, drug-addiction, smoking and other bad habits, and  help the young people to enjoy a healthy life.
Allocations planned for the program implementation exceed 1 502 bln soums, including the hard currency funds (over USD 54.7 thousand). 
The Republic Commission is entitled to arrange and monitor implementation of the National Program, and the regional commissions are personally responsible for implementation of the Program steps. 

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Resolution of the President “On Measures for Further Amplification of Activity and Enhancement of Resource Capacity of Reconstruction and Development Fund of the Republic of Uzbekistan” (March 5, 2008, # PP-811) resolves to increase the charter capital of the Fund up to USD 5 bln in 2008-2010. In addition to the main trends of its activity, the financial resources of the Fund may be used for provision of the lax credits to finance the projects aimed at development and reconstruction of the industrial infrastructure; to accomplish technical and technological re-equipment of certain economy sectors; to grant the lax credits for procurement of  modern foreign equipment; to invest in the charter capital of the newly-established financial institutions and strategically important enterprises that involve foreign investments; to repay, in the advanced manner, the external loans-related liabilities to the international financial institutions and foreign creditors. 

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Resolution of the Cabinet of Ministers

Resolution of the Cabinet of Ministers of the Republic of Uzbekistan (March 14, 2008; # 43) establishes the retail prices for the petrol brands as follows: A-76 (715 soums per liter), Ai-80 (735 soums per liter), Ai-91, A-92, and Ai-93 (825 soums per liter), Ai-95 (925 soums per liter) and diesel fuel  735 soums per liter. The amount of a monthly compensation of the fuel expenses is 14700 soums. The law envisages such compensation for a certain category of persons. (The price does not include the fuel consumption tax imposable on natural persons. In compliance with Article 304 of the Tax Code, the tax is shown as a separate line in the buyer's check and is to be taken at the moment when the fuel is bought).  
 
Resolution of the Cabinet of Ministers of the Republic of Uzbekistan (January 24, 2008, # 13) specifies amendments and modifications to the Resolution of the Cabinet of Ministers “On Rates of State Dues, Charges and Other Non-tax Hard Currency Payments” (August 1993, # 423).
The amendments and modifications mostly relate to Supplements 2 and 3, Section IX of the 1993 Resolution. In particular, the new edition of Supplements 2 and 3 stipulates the rates of the visa charges as below: 

For the Ministry of Interior Affairs
1.Issuance and extension of the entry-exit visas for foreign citizens and persons without citizenship:
Up to seven days                                      USD 40
Up to fifteen days                                    USD 50
Up to thirty days                                      USD 60
Up to three months                                 USD 80
Up to six months                                      USD 120
Up to one year                                           USD 160

Note. In the case of multiple visas, the rate for multiplicity increases at USD 10. 

Issuance of multiple entry-exit visas for foreign citizens and persons without citizenship:
Up to six months                                         USD 150
Up to one year                                              USD 250

2.Temporary residence permits for foreign citizens and persons without citizenship (covering the visa validity time) and temporary residence permit extensions (covering the visa extension period):
Up to one month                                         USD 20
Up to two months                                       USD 40
Up to three months                                    USD 60
Up to six months                                         USD 100
Up to one year                                              USD 200

3.Temporary residence permits for the CIS citizens and persons arriving from the CIS countries and having the old Soviet passports (without their citizenship record):
From three days up to six months         USD 5
Over six months                                             USD 10 

4.Legalization of permanent residence of a foreign citizen (a CIS citizen or person without citizenship) in the Republic of Uzbekistan                          USD 50

5.Issuance of certificates in the case a person without citizenship has lost his passport or a passport-substituting document                                 USD 10

To comply with the parity principle, the Ministry of Interior Affairs of the Republic of Uzbekistan is allowed to increase the state due rates applicable to foreign citizens and equalize them with the rates applicable to the citizens of the Republic of Uzbekistan in their countries.
               
For the Ministry for Foreign Affairs
To comply with the parity principle, the Ministry for Foreign Affairs of the Republic of Uzbekistan is allowed to increase the consular fee rates applicable to foreign citizens and equalize them with the rates of fees and dues applicable to the citizens of the Republic of Uzbekistan in their countries.

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(Material from published articles compiled by Uzbek A. Rustamov, General Representative, Interconcepts Inc. Translation to English: Lyubov Belokon)

 

Business Connections #11/2008

Business Connections #11

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