On Measures for State Support of the Jewelry Industry

President of the Republic of Uzbekistan Resolution On Measures for State Support of the Jewelry Industry

In order to restore and develop local jewelry production based on century-old national traditions, create new jobs on this basis, meet the population's demand for high-quality jewelry products, ensure the production of high value-added products, and implement the State Program for the Implementation of the "Strategy of Actions on Five Priority Areas of Development of the Republic of Uzbekistan for 2017-2021" in the "Year of Human Interests and People's Dialogue":

1. The following are established as the main tasks and directions for the further development of the jewelry industry:

First, significantly increase the production of local jewelry products to meet the growing needs of the republic's population. Further formation and development of the jewelry industry through simplification of procedures for the use of precious metals and gemstones;

Second, ensure the production of competitive high-art jewelry products in foreign and domestic markets, including the creation of individual design solutions using traditional national crafts and patterns;

Third, expand the use of existing resources by attracting potential investors with practical experience in applying modern technological equipment and innovative developments in the subsequent processing of gemstones, including the casting of ingots of one weight from precious metals, and the preparation of jewelry and other products, as well as direct foreign investment;

Fourth, strengthen the personnel potential of the industry by training young specialists—technologists, designers, artists, and other required specialists—in institutions of secondary specialized and vocational education in jewelry production branches.

2. It is established that, starting from October 1, 2017, the activity of legal entities and individual entrepreneurs in the preparation of various items from jewelry and other precious metals (hereinafter referred to as jewelry items) shall be carried out on the basis of a license issued by the Precious Metals Agency under the Central Bank of the Republic of Uzbekistan, with the cancellation of the registered permit issued by the State Assay Chamber for this type of activity.

3. The mechanism for the sale of precious metals to jewelry item manufacturers is established as follows:

Jewelry item manufacturers send orders to authorized commercial banks in the form approved by the Central Bank of the Republic of Uzbekistan, indicating the volume of jewelry item production and taking into account the need for precious metals;

Authorized commercial banks send an order to the Central Bank of the Republic of Uzbekistan for the allocation of the necessary volume of precious metals, based on the needs of jewelry item manufacturers;

The Central Bank of the Republic of Uzbekistan allocates precious metals in the form of platinum, starting from 100 grams, in national currency, based on the orders of authorized commercial banks, upon full payment of the initial payment, based on the morning fixing price of the London Precious Metals Exchange (with the net weight of precious metals being recalculated);

Authorized commercial banks sell precious metals to jewelry item manufacturers without the right to subsequent resale, collecting a margin of no more than 1 percent.

4. The "Fonon" State Scientific and Production Enterprise (hereinafter referred to as "Fonon" SNPE) shall ensure the production of platinum of the appropriate weight on a processing basis from precious metals allocated by the Central Bank of the Republic of Uzbekistan, starting from October 1, 2017.

5. The Ministry of Economy of the Republic of Uzbekistan:

Together with the Central Bank of the Republic of Uzbekistan and the Ministry of Finance, ensure the sale of precious metals from the reserves of the Central Bank of the Republic of Uzbekistan to jewelry item manufacturers, taking into account the relevant balances, starting from October 1, 2017;

Together with the Central Bank of the Republic of Uzbekistan and the Association of Jewelers, submit the "Program of Measures for Further Development of the Jewelry Industry for 2017-2021" to the Cabinet of Ministers of the Republic of Uzbekistan by October 1, 2017.

6. The Central Bank of the Republic of Uzbekistan, together with the Ministry of Economy and the Ministry of Finance, within one month:

Develop and submit to the Cabinet of Ministers of the Republic of Uzbekistan the Regulation on Licensing the Activity of Manufacturing Jewelry Items from Precious Metals;

Develop and submit to the Cabinet of Ministers of the Republic of Uzbekistan the Regulation on the Procedure for the Sale and Settlement of Precious Metals for the Production of Jewelry Items.

7. The Central Bank of the Republic of Uzbekistan (M. Nurmuratov):

Ensure the organization of branches of the State Assay Chamber, which carry out the marking of assays and stamps on jewelry items in the regions of the republic, in the established order, by October 1, 2017;

Together with the Ministry of Finance of the Republic of Uzbekistan, submit proposals to the Cabinet of Ministers of the Republic of Uzbekistan on reviewing the established sizes of assay fees, taking into account the targeted use of funds for strengthening the material and technical base of the Chamber, with the provision that a portion of the funds is directed to the disposal of the Chamber.

8. It is established that items made from precious and semi-precious stones and pearls, ownerless jewelry items, finds, as well as jewelry items transferred to the state by their owners (excluding archaeological and museum items or museum collections, as well as items of cultural value) confiscated for the benefit of the state shall be sold to "Fonon" SNPE under the condition of full advance payment in national currency in the following order:

For precious metals - at the morning fixing price of the London Precious Metals Exchange and the Central Bank exchange rate on the date recorded in the payment account;

For semi-precious and precious stones and pearls - based on the appraisal conducted by appraisal organizations in the established order, covering the relevant expenses of "Fonon" SNPE.

The Ministry of Finance of the Republic of Uzbekistan, together with the Central Bank, shall submit to the Cabinet of Ministers of the Republic of Uzbekistan for approval the procedure for the sale of state-confiscated wealth in the form of precious metal fragments, semi-precious and precious stones, and pearls within one month.

9. (Paragraph 9 lost its force on the basis of the Decree of the President of the Republic of Uzbekistan dated May 18, 2019, No. PF-5721).

10. Starting from January 1, 2018:

The excise tax on jewelry items sold in retail trade networks;

The procedure for coordinating the technical and economic justification of refining processes for precious metals stored under the customs regime of "Processing in the Customs Territory of the Republic of Uzbekistan" by enterprises with a state share in the charter capital (authorized capital) is abolished.

11. (Paragraph 11 lost its force on the basis of the Decree of the President of the Republic of Uzbekistan dated May 18, 2019, No. PF-5721).

12. The proposal to transfer the property of the "1st Jewelry Enterprise" state enterprise complex, located at 46-B Zargarlik Street, Uchtepa District, Tashkent City, to Asaka Joint-Stock Commercial Bank for the implementation of an investment project for the organization of modern jewelry production, accepted by the Ministry of Economy of the Republic of Uzbekistan, the Ministry of Finance, the State Committee for Privatization and Competition Development of the Republic of Uzbekistan, and the Tashkent City Khakimiyat, is accepted.

The Cabinet of Ministers of the Republic of Uzbekistan shall adopt a decision within two months to organize the launch of the facility by the end of 2018, ensuring the production of competitive modern jewelry items based on this object.

13. The Central Bank of the Republic of Uzbekistan (M. Nurmuratov), together with the Ministry of Justice (M. Ikromov), other interested ministries and departments, within one month:

Submit to the Cabinet of Ministers of the Republic of Uzbekistan proposals on amendments and additions to legislative acts arising from this Resolution;

Ensure the coordination of their adopted normative legal acts in accordance with this Resolution.

14. Control over the implementation of this Resolution is entrusted to the Prime Minister of the Republic of Uzbekistan A.N. Aripov, Minister of Finance B.A. Khojaev, and Chairman of the Central Bank of the Republic of Uzbekistan M.B. Nurmuratov.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV Tashkent City, August 10, 2017, No. PQ-3199