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13:12 / 17.01.2019 360

Uzbekistan for the first time plans to give control over supervisory board of a FEZ to a foreign company

A new free economic zone (FEZ) “Andijon-farm” will be created in the Andijan region of Uzbekistan, Kun.uz correspondent reports with reference to the presidential decree.

Pharmaceutical companies from India will be a strategic partner in its creation.

Among its main tasks are attracting investments and advanced technologies from leading Indian companies to create modern production facilities for the production of pharmaceutical products and medicines with high added value, including in the form of “in-bulk”.

The term of functioning of the FEZ “Andijon-farm” will be 30 years with the possibility of its subsequent extension. During this period, a special tax and customs regime will be in effect on the territory of the FEZ.

Depending on the amount of their investments, the participants of the zone will be exempt from land tax, profit tax, tax on property of legal entities, tax on the improvement and development of social infrastructure, single tax for micro firms and small enterprises, as well as mandatory contributions to some state funds for various periods.

If an entrepreneur invests from $300,000 to $3 million, he will receive benefits for three years, from $3 to $5 million for five years, from $5 to $10 million for seven years, from $10 million and above for ten years. In addition, investors will be exempted for the entire period of the activity of the FEZ from paying customs duties on imported raw materials, materials and components aimed at export.

Interestingly, for the first time in the country's history, the functions of the Directorate of the FEZ can be transferred to foreign companies, primarily Indian, with experience in the development and management of economic zones.

It should be recalled that in May 2017, seven free economic zones were created in Uzbekistan with a special decree, which specialize in the cultivation of medicinal plant materials in special natural conditions, as well as its processing. These are: “Nukus-farm”, “Zomin-farm”, “Kosonsoy-farm”, “Sirdaryo-farm”, “Boysun-farm”, “Bustonlik-farm” and “Parkent-farm”.