November 11, 2013

Politics and Foreign Policy:
Uzbekistan creates inspection on architecture affairs
President approves treaty on avoiding double taxation with Slovenia
Economics:
Legal foundations of exports and certification of farm produce
A Large Exhibition of a Big Country
Society:
European Education Days Commence in Uzbekistan
Best Samples of Intellectual Property

POLICY and FOREIGN POLICY

UZBEKISTAN CREATES INSPECTION ON ARCHITECTURE AFFAIRS

The Government of Uzbekistan adopted a decision on creation of an inspection on architecture affairs and control over quality of construction works on 5 November 2013.

New inspection is created in line with the resolution of the Cabinet of Ministers “On creation of inspection on architecture affairs and control over quality of construction works of the Cabinet of Ministers of Uzbekistan.

The document was adopted to ensure implementation of single architectural and town building policy and execution of their tasks by the public authorities and the state bodies in places in the field of urban development, improvement of level and quality of decision-making process on project on comprehensive development of settlements, as well establishment of appropriate control over quality of construction.

The inspection will be created in structure of Information-analytical department on communal, transport, capital construction and construction industry.

The inspection will control over adherence of the construction legislation and rules by the state bodies, implementation of investment programmes on construction, expertise of town-building documentation, prepare proposals on improving town-building activities, etc.

The inspection will adopt measures on avoid construction and reconstruction works and development of construction documentation simultaneously, study implementation of technical requirements, prevent illegal construction and untargeted use of lands, as well as use of modern construction technologies in Uzbekistan.

(Source:UzDaily.com)

PRESIDENT APPROVES TREATY ON AVOIDING DOUBLE TAXATION WITH SLOVENIA

President of Uzbekistan Islam Karimov approved an agreement between the Government of Uzbekistan and the Government of Slovenia on avoiding double taxation and preventing evasion from payment of income and capital taxes.

The agreement was approved with the resolution of the President of Uzbekistan Islam Karimov from 1 November 2013.

It is worth to mention that the agreement was signed in Ljubljana (Slovenia) on 11 February 2013.

The chairperson of the State Tax Committee of Uzbekistan Botir Parpiev and State Secretary of Ministry of Finance of Slovenia Marko Pogacnik inked the document.

Uzbek leader entrusted the Ministry of Foreign Affairs of Uzbekistan to notify the Slovenian side that Uzbekistan carried out all necessary inter-governmental procedures, which are necessary for entering of the agreement into force.

(Source:UzDaily.com)


ECONOMY

LEGAL FOUNDATIONS OF EXPORTS AND CERTIFICATION OF FARM PRODUCE

Thanks to the long-term purposeful backing of entrepreneurship, considered agrarian policy, the passage of a number of Presidential decrees and the formation of a corresponding legislative framework in the Republic of Uzbekistan, a firm institutional foundation has been created over the years of reforms for national agriculture, including the determination of basic forms of property and the achievement of the country’s self-sufficiency in foodstuffs. Nowadays, the development of the agrarian sector in the Republic is entering a new stage, which is characterized by a further improvement of quality and competitiveness of output, as well as by the switching of the sector to the innovative path of growth.

These days the perfection of national legislation that stipulates aspects such as modernization, technical and technological re-equipment of agriculture in today’s process of accelerated renovation of the national economy’s leading industries, as well as the improvement of legal foundations for the exportation by small-scale enterprises and farms of locally-grown produce constitute a key factor in raising the efficiency of the Uzbek economy still further.

The Concept of Further Intensification of Democratic Reform and Development of Civil Society worked out by the President of the Republic of Uzbekistan is designed to increase the public’s influence and participation in both the elaboration of major decisions in state and public life ad their subsequent materialization.

International experience testifies to the fact that small business is the main engine that fuels the development of any economy. Being the most flexible agent in the latter’s structure, it is capable of responding quickly and effectively to any fluctuations in consumer demand, both in the home and foreign markets. Farms are not only the producers of agricultural output, but also a means of introducing modern technologies in the countryside. What’s more, they contribute appreciably to the development of domestic processing facilities for farm produce, thus ensuring the consolidation of Uzbek brands in the international marketplace.

Owing to the creation of an auspicious working environment and all conceivable assistance that indigenous farmers derive from the state, production of agricultural output in Uzbekistan tends to increase from year to year. In 2011, for instance, the volume of farm produce grown by Uzbek farmers came to 816.4 thou tons of fruit, 2215.0 thou tons of vegetables, 556.6 thou tons of grapes, 595.8 thou tons of melons, water-melons and gourds, 336.3 thou tons of potatoes, 37.8 thou tons of meat, 205 thou tons of milk, 228.1 million eggs, 1715 tons of wool, 44078 items of astrakhan fur, over 3400,0 thou tons of raw cotton (with the proportion of overall cotton production amounting to 99.1 per cent), 5813 thou tons of cereal crops (with the proportion of overall cereals production reaching 88.3 per cent). At the same time, the following amounts of farm produce were exported: 173,000 tons of fruit (or 24 per cent of the total production volume), of which dried fruits accounted for 24.1 thou tons, vegetables – 293,000 tons (13 per cent), grapes -96.1 thou tons (20 per cent), with the share of raisins coming to 29.8 thou tons, 65.9 thou tons of melons, water-melons and gourds (11 per cent), and 33 tons of dairy produce.

A variety of analyses show that for some time past domestic farmers have significantly enlarged the range of farm produce that they process themselves and export. The same is true of the volumes of such exports.

Today, the Law of the Republic of Uzbekistan, “On foreign economic activity” passed in 1991 forms the legal basis on which to export agricultural produce from the country. In keeping with this document, each entrepreneur has the right to sell his produce abroad. Other legislative documents worked out on its basis, including Laws of the Republic of Uzbekistan “On the dekhkan farm” (1998), “On the farm” (2005), “On the private enterprise” (2004) etc. specify corresponding legal norms that are designed to seal a given underlying provision.

As for the Laws of the Republic of Uzbekistan “On standardization and certification”, “On metrology”, “On technical regulation”, “On the quality and safety of foodstuffs” and other regulatory-legal documents, they specify a range of legal requirements to the quality and safety of foodstuffs produced and sold in the Republic.

The 24 August 2006 Presidential Resolution, “On measures to stage the International Specialized Exhibition-Sale of Mini-technologies and Compact Equipment for Agriculture” has stimulated efforts to raise both the level of competitiveness of produce grown by domestic farmers and the export potential of farms at large.

Thanks to such exhibition-sales, the number of Uzbek farms involved in the processing of agricultural output has skyrocketed. At the present time, it exceeds 800, most of which successfully operate in foreign markets, demonstrating the nation’s exports potential at many prestigious international exhibitions. This, in turn, ignites foreigners’ interest for the amazing variety of high-quality farm produce cultivated in Uzbekistan.

Another important document that has incentivized the development of exports activity in the country is the August 8, 2013 Presidential Resolution on the creation at the National Bank for Foreign Economic Activity of a foundation designed to support the exports activity carried out by small businesses and private entrepreneurs. The organization of its territorial branches across the regions of Uzbekistan is also stipulated in the document.

A given Resolution provides for a further expansion of the export potential in the field of small business and private entrepreneurship; provision of all necessary legal, financial and organizational assistance, with a view to contributing to the production of modern competitive goods and their promotion to overseas markets; as well as the provision of reliable protection to national exporters from the risks and changes in the demand and supply situation in foreign markets.

One of the priorities these days is the need to intensify the activity of Farmers’ Kengashes and the Chamber of Commerce and Industry of the Republic of Uzbekistan in the following fields:

Creation and development of infrastructure that is expected to further the sale in foreign markets of goods produced by local farms and small businesses;

Provision with export-related information of farmers and entrepreneurs operating in remote regions;

Realization of concrete measures to organize their training in developed countries, by attracting grants from foreign donor organizations, in order to raise their awareness of the situation in foreign markets;

Provision of direct assistance to farmers and entrepreneurs specializing in exports activity in their search for reliable overseas partners;

Creation, with the help of the Internet, of a network of trading sites for the promotion to the international marketplace of exports-oriented produce processed by Uzbek farmers;

Contribution to measures to increase their exports potential by setting up trade houses abroad;

Provision of access to information on mini-technologies and compact equipment manufactured in the Republic and foreign countries alike.

Of no less importance is the simplification of a mechanism for issuing certificates and permits required to export goods from the Republic of Uzbekistan. What is also important is the introduction of a mechanism for conducting regular practical seminars intended to instruct small businesses and farms in the regions on how to bring the quality of their output to world standards, in a move to substantially enhance the nation’s exports potential.

(Source: “Business partner.uz” newspaper)

A LARGE EXHIBITION OF A BIG COUNTRY

Uzbekistan sums up its international industrial fair and cooperation exchange 2013

The modern industry in the last 20 years not just has to change, but do it in an accelerated mode by moving the vector of development with traditional solutions to innovative technologies. For quite a lot along the way were the European countries, USA, Japan, South Korea and China. What is the position of Uzbekistan in the industrial map of the world and how far away is the domestic industry from the leading players in the market correspondents of Uzbekistan Today have figured at the International Industrial Fair and Cooperation Exchange (IIFCE), which ended this week in the capital.

Competitive advantages

For the past seven years in Uzbekistan the middle of autumn is marked by the domestic industry. In the pavilions of Uzexpocenter, during the International Industrial Fair and Cooperation Exchange (IIFCE) full range of achievements of national economy are showed. This year, our products have presented more than 1.300 enterprises and companies.

The fair for a long time and deservedly won the unofficial name as a main exhibition event in the country. Each year, the domestic enterprises, representing all sectors of the economy of Uzbekistan exhibit their products here, looking for new partners for business development, implementation of new projects. The huge interest in the event show foreign companies. For them, it is not only easy to assess the extent of the investment climate in the country, but also to meet, negotiate directly with all the leading domestic enterprises, especially since the participants of the event have the right to purchase goods on the basis of direct contracts with no additional tenders. In general, according to the organizers, this year’s IIFCE was attended by more than 87,000 visitors, of which about 1,100 are representatives of foreign companies from 55 countries.

The modern dynamic world constantly poses new challenges for the manufacturing industry. If yesterday there was one sought-after product, today technologies, and demand for them march on, forcing enterprises to reorient production, upgrade them to develop new kinds of products. And we must understand that it is an ongoing process of constant striving to keep abreast of the market. Otherwise, manufacturers quickly lose competitive advantage, niche market, consumers and ultimately in the best case to be content with a limited number of customers. In this respect, any industrial production like the fashion industry need to constantly monitor developments and achievements of their competitors, not to “go out of fashion”, to develop links with research centers, to conduct their own research and development work. So events like the IIFCE is very important, because they help businesses establish cooperation ties acquainted with modern equipment and new technologies.

Industrial production, largely conservative, today forced to give up many well-established trends, moving to the new ones. Especially in the countries of the former Soviet Union, which relied on huge industrial giants, forming enterprises turned out to be ineffective in a modern market economy. Moreover, this inefficiency was formed from several factors: the huge energy costs, unproductive production, inability to shift quickly to the needs of the market, production of non-competitive products. So now the businesses, to be less dependent on fluctuations in the market, have to be flexible and diversify their production, opening up new niches, what is impossible without modernization. It should be noted that any technological re-equipment of two causes. First, it is planned replacement when obsolete equipment out of operation, and instead set the current. But a more common occurrence today - the impact of external factors, which seemed to spur development of the industrial base. For example, in terms of volatility is very difficult to predict the prices of products, raw materials, energy, demand, and other factors. This leads companies to the only possible solution - reducing costs and optimizing production through the introduction of the same energy-efficient technologies and innovative equipment.

Convenient format

A mechanism of the fair conduct has been specifically optimized for the wider implementation of the modernization process in domestic enterprises, especially in the regions. By tradition, the event is held in two stages. The first in March and June 2013 was held in the regions of the country and was just sent to the representatives of the regional businesses. It was attended by over three thousand enterprises, of which more than 1,800 producing consumer goods. On display at the stands there are about 16,000 items. In the first phase contracts were signed for the supply of industrial cooperation for a total of UZS446.4b, 22% of which were consumer goods. Amount of export contracts was US$224.9m.

The second stage combined in pavilions of Uzexpocenter the best of what today is produced in the country. Enterprises have demonstrated more than 13,000 types of products, of which about 2,000 new samples utilized in 2012-2013. The success of the fair showed one more thing - there was so much to visit it, the organizers took the unprecedented decision - to extend for a further two days of work exposures. Speaking the language of numbers, we note that if in 2012 there were agreements concluded for purchase of products on UZS5 trillion, this year the figure rose 1.24 times. Amount of export contracts in the last year was about US$5.2b, and by the end of the current fair increase 22%.

Another, seemingly not very significant, factor in the success of IIFCE is the level of development in the country of import and localization - the two processes on the formation of which is largely focused and fair. In this direction, in Uzbekistan made significant strides. Just 20 years ago, it was hard to imagine that the country will be producing modern cars, a wide range of home appliances, machine tools, mining machinery, medical supplies and more. It is these two processes, to organize several tech industries new for country and master the production of advanced products satisfy the domestic market with high quality products which are much cheaper than imported counterparts. In addition, it provided an opportunity to create jobs and stimulate domestic demand. During the years of independence Uzbekistan has built dozens of new large industrial enterprises in the oil and gas, engineering, electrical, metallurgical industry. In the first 9 months of 2013 alone, about 2.2 thousand industrial facilities have been put into operation in Uzbekistan. Large enterprises were replaced 3,631 units unfit, morally and physically obsolete equipment amounting to the equivalent of US$201.1m, resulting from the introduction of energy saving technologies, streamlining processes and norms of consumption of raw materials, eliminating waste and overhead of large industrial enterprises was achieved cost savings the products by an average of 11%.

In January-September of this year 1,089 localization projects were produced products worth about UZS8.7 trillion, or 1.4 times more than in the same period of 2012. As a result, the calculated effect of import increased by almost a factor of 2 and more than US$4b has been disbursed production of 76 new types of localized products. Such success has been achieved through a proper approach to encourage enterprises that implement localization. In particular, the country annually adopts a program for localization of products and businesses that fall into the plan get a number of significant benefits and preferences. The funds are freed up due to these benefits should be directed to the creation of new, expansion, renovation, modernization, technical and technological re-equipment of existing facilities, the implementation of quality management systems, promotion of engineering and technical personnel of enterprises, the financing of scientific research and experimental development as well as to reduce the cost of production.

The effectiveness of this policy can be seen in high-tech industries. A couple of years ago, the shelves of local stores were filled with cell phones, tablets, modems, telecommunications equipment produced abroad. Today, the country appeared immediately two manufacturers of mobile phones - UzTE and Artel, which not only actively explore the domestic market, but also seek to enter the markets of neighboring countries. In the Navoi FIEZ dynamically developing domestic production of the first tablet, modem for broadband Internet and other equipment, which enabled the country to be among the few states that produce high-tech products. Do not forget that the Uzbekistanis have long been accustomed to high-quality, low-cost household appliances labeled “Made in Uzbekistan”. Enterprises of the republic produce refrigerators, washing machines, gas cookers, microwave ovens, televisions and vacuum cleaners - all the range of machinery required for the home.

(Source: “Uzbekistan Today” newspaper)


SOCIETY

EUROPEAN EDUCATION DAYS COMMENCE IN UZBEKISTAN

The Days of European Education are organized in our country by the Delegation of the European Union in Uzbekistan and the Ministry of Higher and Secondary Special Education of the Republic of Uzbekistan.

The Head of the EU Delegation in Uzbekistan – Ambassador Yuri Sterk, Deputy Minister of Higher and Secondary Special Education of the Republic of Uzbekistan B.Usmonov, Rector of Tashkent Architectural Construction Institute T.Nizomov and other speakers at the occasion noted that the wide-ranging efforts in reforming the education system undertaken in Uzbekistan under the leadership of President Islam Karimov has been yielding considerable effects. Initiated by the head of our state, the Law of the Republic of Uzbekistan “On Education” adopted 29 August 1997 and the National Program of Specialist Training have been serving as an important guide for action in nurturing a comprehensively advanced, independently thinking individuals and training highly qualified specialists.

The extensive establishment of effective international cooperation on this front is another confirmation of the fact that the national model of education is oriented towards fostering highly qualified cadres. The Uzbek youths have opportunity to enhance their knowledge base not only in our education institutions, but also abroad, intensively learn cutting-edge information technologies and attain education at the international standards.

The Days of European Education in Uzbekistan started on November 11 and are proceed through November 15. The education exposition “Education in the European Union” has opened at the Tashkent Architectural Construction Institute.

(Source: UzA National News Agency)


BEST SAMPLES OF INTELLECTUAL PROPERTY

The ceremony of awarding the winners of the traditional contest for the best sample of intellectual property “Yangi Intellekt-2013” (The New Intellect) has taken place in Tashkent.

It was held by Uzbekistan’s Agency for Intellectual Property in cooperation with the Committee for Coordinated Development of Science and Technologies under the Cabinet of Ministers, the State Committee for Communications, Information and Telecommunication Technologies, the Academy of Sciences, and the Ministry of Higher and Secondary Special Education of the Republic of Uzbekistan.

The first deputy director general of the Agency for Intellectual Property of the Republic of Uzbekistan S.Nasretdinov, the deputy chairman of the State Committee for Communications, Information and Telecommunication Technologies Sh.Shermatov and others noted that wide-scale works are in progress in our country under the leadership of President Islam Karimov to stimulate scientific-technical innovation, promote innovation activities and the legal protection of intellectual property.

A remarkable role in these efforts are played by the Agency for Intellectual Property of the Republic of Uzbekistan, who provides for legal protection of intellectual property, encourages inventors and promotes innovation activities. Thus, for the last three years alone, more than 6.3 thousand patents for inventions, useful models and industrial samples have been issued to corporate entities and individuals.

The contest for the best sample of intellectual property “Yangi Intellekt-2013” (The New Intellect) – held from May 27 to October 25 of the current year – has helped identify the best of them. It facilitated extensive demonstration of achievements made by our country on this front, the engagement of talented youth in academic activities, the further intensification in the development of new technologies, goods and competitive products, the attraction of investments into the sphere and introduction of promising projects into the production process.

Applications for the competition were received from individuals and corporate entities who have been awarded patents for the last three years for their inventions, practical models, industrial samples, as well as producers of national software. This year, 141 applications were received and examined by the contest commission. As a result, 10 applications were selected per each nomination and were announced for online voting at the Agency’s website. The vote produced three winners in each nomination such as “The Best Invention”, “The Best Useful Model”, “The Best Industrial Sample”, and “The Best Software”.

The new method of melting sulfide copper concentrates in the reverberating furnace was announced the best innovation of the year 2013. The product was developed and applied to the production process jointly by the state unitary enterprise “Fan va Tarakkiyot”, Almalyk Mining Complex and the Scientific-Technical Center “Kompozit”. The innovation by the scholars of Abu Rayhon Beruni Tashkent State Technical University – the disk tribometer used for the identification of metal friction degree – has become the best useful model. Invented at the Sovplastital open stock company, the industrial sample of set for table appointments was identified as the finest in the relevant nomination.

Worthy of special attention is the nomination “The Best Software” that epitomizes the current aspects in the evolution of information and communication technologies in our country. To this end, it was stressed at the event that our state has been providing comprehensive support for the producers of software in order to encourage their activities. An important factor in this is the resolution of the head of our state “On Measures to Boost the Stimulation of Domestic Producers of Software” signed 20 September 2013.

The software elaborated by the Tashkent-based scientific-production firm Tetrasoft, namely, the automated information system for the registration and preservation of information on the violations in national customs legislation, was announced second to none in the nomination “The Best Software”.

“Our software has already been introduced in all structural divisions of the State Customs Committee of the Republic of Uzbekistan,” says Muhammadkasim Mamasaidov, director general of the Tetrasoft Ltd. “It is rather convenient to use and is built on the system of electronic circulation of documents and electronic key. This system is a peculiar base that accumulates all the information on violation of the customs legislation, on the violators, court verdicts on their cases and so forth. In addition, the software is convenient in that it allows conducting statistics of breaches and identifying what articles of customs legislation are violated most frequently and why.”

The contest winners were awarded diplomas and money prizes.

(Source: UzA National News Agency)