2Within the framework of implementation of the Action Strategy for five priority directions of development of the Republic of Uzbekistan in 2017-2021, significant work was done to stimulate and expand the export activities of business entities.

Over the past year alone, more than 360 enterprises have been involved in export activities, export of more than 120 new types of goods have been mastered, exports of finished textile products, mineral fertilizers, cars and other goods demanded on foreign markets have significantly increased.

The activity of specialized foreign trade company “Uzagroexport” established in 2016 to promote domestic fruit and vegetable products to foreign markets and to enter new markets for its sale has been significantly intensified, as a result of which over 230,000 tons of fruits and vegetables have been exported since the beginning of the year.

At the same time, the analysis of the activities in the field of export of fruit and vegetable products testifies to the continued untapped considerable potential and the presence of bureaucratic obstacles for large-scale participation of producers of fruit and vegetables in export activities.

In this regard, the Resolution of the President of the Republic of Uzbekistan “On measures to further support domestic exporting organizations and improve foreign trade activities” was adopted on June 21, which is primarily intended to motivate all producers of fresh fruit and vegetable products to participate independently in its supply to foreign markets with abolition of the monopoly of “Uzagroeksport” JSC in this area. To this end, all business entities are given the right to export fresh fruit and vegetable products, grapes and melons to export on the basis of direct contracts with 100 percent advance payment from July 1, 2017.

It is important to note that, along with the expansion of exports of fruit and vegetable products, this measure will also stimulate dekhkan and farming enterprises to expand the production of fruit and vegetable products demanded on foreign markets, increase crop yields through more efficient use of land resources, including through repeated crops. This, in turn, will increase the competitiveness of produced fruit and vegetable products in foreign markets in terms of price and quality. The main thing is that, as a full-fledged proprietor of fruit and vegetable products, dekhkan and farming enterprises can dispose it at their own discretion, sell it independently for export, increase their incomes, raise the material well-being of their families, and invest additional foreign exchange earnings in new projects to expand agricultural production and for its deep processing.

Together with this, it is also necessary to carry out systematic work to ensure compliance of products with the norms and standards adopted abroad for domestic products to enter foreign markets. To this end, the resolution of the President of the Republic of Uzbekistan instructed the Ministry of Agriculture and Water Resources to develop and approve concrete measures to introduce international quarantine regulations into national regulatory documents within a month.

An important norm of the adopted resolution is creation of equal conditions for export activities for bоth producers and foreign trade organizations that assist domestic producers in promoting their products in foreign markets. At the same time, the privileges and preferences provided for by the current legislation for exporting producers will henceforth be applied also to all business entities exporting the products of domestic producers. This fully corresponds to international practice, when export of product is handled by specialized companies with relevant experience and necessary resources which constantly monitor the international situation and have reliable counterparts in foreign markets.

Moreover, introduction of this rule promotes the maximum use of modern marketing methods as well as of opportunities and advantages of foreign trade companies, which will significantly enhance the export potential of the republic, expand geography and diversify the range of export supplies.

The adopted document is relevant when solving issues related to numerous appeals of business entities engaged in foreign economic activity to state bodies on existence of certain difficulties when passing licensing procedures, including delaying the timing of registration of certificates of goods conformity. The Resolution of the President of the Republic of Uzbekistan establishes that henceforth the certification bodies are obliged to issue certificates of conformity for manufactured and imported goods within a period not exceeding 3 working days.

Along with this, the resolution provides for a measure to reduce the tax burden for enterprises that are forced to export their own products at below-cost prices due to unfavorable conditions on foreign markets. Thus, the proceeds from the sale of goods (works, services) exported at prices below the cost based on conclusions of Special Expert Commission are determined for tax purposes on the basis of the actual price of their sale, which will allow producers to direct the funds released from taxation to implement measures to further reduce the cost of production.

In general, implementation of the norms and provisions of this decree is aimed at enhancing the export potential of the republic, expanding geography and diversifying export supplies, actively using modern marketing methods to promote domestic products to foreign markets, as well as increasing the number of enterprises exporting products and increasing their financial sustainability.

Source: Information Agency Jahon

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