On Measures for Further Ensuring the Country's Food Security

Decree of the President of the Republic of Uzbekistan

On Measures for Further Ensuring the Country's Food Security

Measures are being taken in the country to systematically organize and simplify export-import operations, remove barriers and restrictions on the import of in-demand food products, and strengthen guarantees for the protection of the rights of subjects of foreign economic activity.

At the same time, serious systemic problems persist that create conditions for unfair competition, monopolization of food product imports by certain economic entities, the creation of artificial shortages, and unjustified price inflation on certain goods, leading to the extraction of superprofits on this basis.

The dominant market position of certain importers is facilitated by the provision of individual benefits and preferences, and the creation of exclusive conditions for their business activities, which restricts market access for other subjects of entrepreneurship.

The situation that has developed in this area reduces business activity and investment attractiveness in Uzbekistan, and causes serious damage to the country's reputation on the international stage.

In order to further ensure the country's food security, saturate the market with high-quality, safe, and affordable food products, strengthen the purchasing power of the population, liberalize foreign economic activity, and develop a healthy competitive environment, as well as to eradicate existing systemic problems in this area:

1. Cancel, effective February 1, 2018, individual customs, tax, and other benefits, as well as other preferences, granted to specific economic entities for the import of food products into the Republic of Uzbekistan.

Prohibit the Cabinet of Ministers of the Republic of Uzbekistan from adopting decisions providing for the granting of individual customs, tax, and other benefits, as well as other preferences, to specific economic entities for the import of food products into the republic.

Note that in case of violation of the requirements of this paragraph, the guilty persons shall bear responsibility provided by legislation, up to criminal liability.

Commentary LexUz See: Article 182 of the Criminal Code of the Republic of Uzbekistan.

2. The Cabinet of Ministers, the Ministry of Foreign Trade, the State Committee for Investments, the Agency "Uzstandart", the State Customs Committee, the Ministry of Development of Information Technologies and Communications, the Council of Ministers of the Republic of Karakalpakstan, the hokimiyats of the regions and the city of Tashkent, jointly with the National Agency for Project Management under the President of the Republic of Uzbekistan, HK "Uzbekoziyokholting", the Uzbek Republican Commodity-Exchange, the Republican Universal Agro-Industrial Exchange, the Chamber of Commerce and Industry, and other organizations, shall ensure within one month:

• the development of a set of measures for 2018 for the search and attraction of food product suppliers, the creation of equal conditions for their entry into the market, assistance to them in concluding contracts, transportation, and storage of imported products, as well as other measures aimed at fully satisfying the population's demand for high-quality, affordable food products;

• the creation in all regions of the republic, on the basis of public-private partnership, specialized warehouse facilities, storage rooms, cold storage chambers, and modern high-tech, energy-efficient equipment for the processing and packaging of food products.

3. Establish that, effective February 1, 2018:

the ban on the sale (purchase) of consumer goods on the commodity exchanges of the republic is canceled;

(Note: The third paragraph of paragraph 3 was excluded by the Decree of the President of the Republic of Uzbekistan dated June 27, 2019 No. UP-5755 — Enters into force on October 1, 2019)

a license for wholesale trade is not required for the sale (purchase) of consumer goods in open electronic auctions of commodity exchanges;

(Note: The fourth paragraph of paragraph 3 was excluded by the Decree of the President of the Republic of Uzbekistan dated April 30, 2021 No. UP-6218 — National Legislative Database, April 30, 2021, No. 06/21/6218/0398)

(Note: The fifth paragraph of paragraph 3 was excluded by the Decree of the President of the Republic of Uzbekistan dated April 30, 2021 No. UP-6218 — National Legislative Database, April 30, 2021, No. 06/21/6218/0398)

detailed information on planned purchases of food products is published monthly on the Unified Portal of Interactive State Services of the Republic of Uzbekistan;

(Note: The fourth paragraph of paragraph 3 was amended by the Decree of the President of the Republic of Uzbekistan dated April 30, 2021 No. UP-6218 — National Legislative Database, April 30, 2021, No. 06/21/6218/0398)

exchange brokers have the right to submit applications to commercial banks for the purchase (sale) of foreign currency on behalf of a client — a non-resident, using funds received from the sale of products in open electronic auctions of commodity exchanges, and non-residents — legal entities — have the right to open accounts in commercial banks of the Republic of Uzbekistan and carry out the purchase (sale) of foreign currency using funds received from the sale of products in open electronic auctions of commodity exchanges.

4. The Ministry of Economy, the National Agency for Project Management under the President of the Republic of Uzbekistan, the State Committee for Assistance to Privatized Enterprises and Development of Competition, jointly with the Prosecutor General's Office, the Ministry of Justice of the Republic of Uzbekistan, and other interested agencies, shall ensure within three months the development and submission to the Cabinet of Ministers:

a draft government decision on determining the procedure for the purchase of socially significant types of food products using funds from the Fund, providing measures that exclude facts of speculation and other abuses;

a draft law "On Food Security," establishing, among other things, measures to saturate the market with high-quality, safe, and affordable food products, develop the agrarian complex, implement effective mechanisms of social and public-private partnership, timely eliminate threats to the stability of the food market, and provide flexible customs-tariff regulation of food product imports.

Commentary LexUz See: Law of the Republic of Uzbekistan "On Quality and Safety of Food Products."

5. The Ministry of Development of Information Technologies and Communications, the Single Integrator for the creation and support of state information systems, jointly with the National Agency for Project Management under the President of the Republic of Uzbekistan and other interested agencies, shall ensure by March 1, 2018, a radical improvement of the information systems and software products used by commodity exchanges, providing accessibility and openness of information, including the placement of data in foreign languages (Russian, English), transparency of conducted operations, and the exclusion of the possibility of interference in conducted electronic auctions and distortion of their results.

6. The Prosecutor General's Office of the Republic of Uzbekistan:

jointly with the National Agency for Project Management under the President of the Republic of Uzbekistan, the Ministry of Finance, the Ministry of Economy, and the Ministry of Foreign Trade, shall ensure within two months a critical study of customs payment rates on food products, customs procedures, and the system of transporting goods across the customs border of the republic, with the development of proposals for optimizing customs payment rates, eliminating unnecessary barriers and obstacles, maximizing the simplification of customs clearance procedures for goods, and reducing costs for carrying out export-import operations, including by transitioning to the "one window" principle for procedure clearance;

jointly with the Ministry of Justice and the State Tax Committee of the Republic of Uzbekistan, shall ensure within two months a critical analysis of legislation regulating retail trade and services, to eliminate unnecessary barriers and obstacles, unjustified state regulation measures, and to submit proposals for the radical improvement of this sphere based on the results;

organize on a regular basis a regular, open, and direct dialogue with subjects of entrepreneurship, including exporters and importers of significant types of consumer goods, foreign investors, and foreign partners, in order to reduce and stabilize prices on consumer goods, eliminate red tape and bureaucratism in carrying out business activities, and to submit justified proposals for improving the business environment in the republic.

7. The Ministry of Development of Information Technologies and Communications, jointly with the State Customs Committee, the State Tax Committee, and other interested agencies, shall ensure within two weeks remote access for the Department for Combating Tax, Currency Crimes, and Legalization of Criminal Proceeds under the Prosecutor General's Office to the information databases of the State Customs Committee, the State Tax Committee of the Republic of Uzbekistan, and other agencies.

8. Strictly warn the heads of the State Customs Committee of the Republic of Uzbekistan and its territorial subdivisions about personal responsibility for allowing facts of creating artificial barriers, red tape, and abuses in the conduct of customs procedures.

(Note: See previous edition.)

9. Approve the list of certain types of food products and raw materials exempt from the payment of customs duties, except for fees for customs clearance, for a period until January 1, 2020, according to the Appendix.

(Note: Paragraph 9 was amended by the Decree of the President of the Republic of Uzbekistan dated October 30, 2018 No. UP-5564 — National Legislative Database, October 31, 2018, No. 06/18/5564/2137)

(Note: Paragraph 10 lost force by the Decree of the President of the Republic of Uzbekistan dated April 27, 2022 No. UP-122 — National Legislative Database, April 27, 2022, No. 06/22/122/0396)

11. The State Committee for Assistance to Privatized Enterprises and Development of Competition, the Ministry of Justice, jointly with the Ministry of Economy, the Ministry of Finance, the State Customs Committee of the Republic of Uzbekistan, and other interested agencies, shall ensure within two months the submission of proposals for changes and additions to legislation arising from this Decree.

12. Control over the execution of this Decree shall be entrusted to the Prime Minister of the Republic of Uzbekistan A.N. Aripov and the Prosecutor General of the Republic of Uzbekistan I.B. Abdullaev.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV

Tashkent, January 16, 2018, No. UP-5303

APPENDIX to the Decree of the President of the Republic of Uzbekistan dated January 16, 2018 No. UP-5303

(Note: See previous edition.)

LIST

of certain types of food products and raw materials exempt from the payment of customs duties, except for fees for customs clearance, for a period until January 1, 2020

(Note: See previous edition.)

No.

Name of Goods

HS Code

Live cattle

0102

Live sheep and goats

0104

Meat of bovine animals, fresh or chilled

0201

Mutton or goat meat, fresh, chilled (except frozen)

0204

4 1 .

Potatoes, fresh or chilled

0701

4 2 .

Rice

1006

Soybeans, whether or not broken

1201

Sunflower seeds, whether or not broken

1206 00

Sesame seeds

1207 40

Raw sugar without flavouring or colouring additives

1701 12 — 1701 14

(Note: The appendix was amended by the Decree of the President of the Republic of Uzbekistan dated December 12, 2018 No. UP-5596 — National Legislative Database, December 12, 2018, No. 06/18/5596/2298)

(Note: See previous edition.)

Note: Customs duty benefits do not apply to the payment of value-added tax on the import of goods and raw materials specified in items 3 — 8.

(Note: The appendix was supplemented with a note by the Decree of the President of the Republic of Uzbekistan dated June 27, 2019 No. UP-5755 — Enters into force on October 1, 2019)

(National Legislative Database, January 17, 2018, No. 06/18/5303/0579; February 20, 2018, No. 06/18/5354/0791, October 31, 2018, No. 06/18/5564/2137, December 12, 2018, No. 06/18/5596/2298; December 14, 2019, No. 06/19/5894/4161; National Legislative Database, April 30, 2021, No. 06/21/6218/0398; April 27, 2022, No. 06/22/122/0396)