Baku, Azerbaijan, July 25
By Fikret Dolukhanov – Trend:
The export volume of participants of the Nukus-Pharm Free Economic Zone (FEZ) in Uzbekistan will have to be at least 20 percent in the second year of operation and at least 30 percent in the third, the Directorate of the FEZ told Trend on July 25, listing criteria for selection of participants.
In addition, the staff of the organizations established in the territory of the Nukus-Pharm FEZ should consist of citizens of Uzbekistan by 95 percent.
The Directorate of the FEZ also informed that participants of the free economic zone are not allowed to establish their branches in Uzbekistan outside the FEZ, i.e. the production should concentrate in Nukus-Pharm.
The Nukus-Pharm FEZ was established in accordance with the presidential decree on May 3, 2017. The total area of the FEZ is 24 hectares. Its distance from the nearest motorway and railway station is only 200 meters. The Nukus International Airport is located 8 kilometers away from the FEZ.
The Nukus-Pharm FEZ was established to develop the pharmaceutical industry in Uzbekistan, support manufacturers, including foreign ones, produce medicines and medical products and saturate the market with high-quality locally produced medicines.
The period of operation of the Nukus-Pharm FEZ is 30 years with a possibility of further extension. Special tax, customs and currency regimes will be active in the territory of the FEZ. If the FEZ participants make appropriate investments, they are granted exemption from payment of land tax, profit tax, property tax for legal entities, tax for improvement and development of social infrastructure, etc.
The FEZ participants also have the right to use convenient forms of payment and settlements for exported and imported goods.
Banks were recommended to allocate loans from their own resources and attract foreign credit lines to co-finance investment projects there. Appropriate loans will also be allocated to business entities and farms to create plantations for cultivation of medicinal plants.
At the same time, if the initiators of investment projects fail to make payments in time, commercial banks will ensure delivery of technological equipment on leasing.
---
Follow the author on Twitter: @FDolukhanov