Opportunities and prospects of establishment of SEZ in Uzbekistan

1
Opportunities and prospects of establishment of
SEZ in Uzbekistan

• Hurshid Rustamov,
• November 20, 2007
• Tashkent city

2
Why to create SEZ in Uzbekistan?

• SEZ as a tool for addressing the following tasks
• Development of new sectors of the industry
• Development of regions
• Creation of new working places
• Implementing scientific and technical innovations
  to the production process

3
How SEZ can help in addressing these tasks?

• Through
• Creation of infrastructure (banking, transport,
  marketing, etc)
• Creation of favorable business climate (easier
  procedures)
• Investment promotion
• Introduction of new technologies
• Processing of local raw materials and production
  of goods with high value added
• Integration of Uzbekistan to the global
  production chains of TNCs.

4

• Major problems
• Shortage of working capital (32)
• Procedures with currency conversion (16)
• Shortage of raw materials (10).

5
Current incentives and necessity of establishment
of SEZ

• SEZ
• Incentives in comprehensive package
• Ensuring effective implementation of the
  incentives
• Developed infrastructure
• Simplified administrative procedures

• Current incentives
• For development of sectors of economy
• For promotion of foreign investment and export
• For production goods under localization program

6
Proposed types of SEZexport-processing zones
and technoparks

• Tax regime
• No changes, except for expansion of incentives to
  all enterprises

• Customs regime in SEZ
• Customs regime of free customs zone

Proposed currency regime abolition of the
obligation to sell foreign currency proceeds (or
decreasing the level of obligatory surrender)
7
Types of SEZ

• Export processing zones production of machinery
  components, electro-technical sectors, automobile
  construction, agricultural machinery production
  and other sectors
• Technoparks
• scientific and technical developments in
• ICT, electro-technical, machinery industries,
  bio-technologies, etc.

8
Simplification of administrative procedures
Procedures within one roof (one stop shop)
Customs registration using single window system
9
Regulation of SEZ

• Authorized agency
• republican agency for implementation of
  Government policy on SEZ
• Administration of SEZ
• local administrative body governance over
  functioning and development of SEZ
• Supervisory board
• oversight body, consists of representatives of
  stakeholders represented in SEZ

10
Possible risks

• Smuggling goods from the territory of SEZ to
  other regions of Uzbekistan
• Unfair pricing
• Corruption