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In Navoi free industrial economic zone (FIEZ) will be introduced a special currency regime.
The relevant Regulations have been approved by the Resolution of the Cabinet of Ministers of Uzbekistan on December 25, 2013.
The document defines the functioning of a special currency regime in Navoi FIEZ.
These regulations apply only to activities undertaken by business entities, registered by Navoi FIEZ Directorate solely in Navoi FIEZ.
According to the document, Parties in Navoi FIEZ (hereinafter- Parties) may choose authorized banks and are entitled to open foreign currency accounts in one or several authorized Uzbek banks.
Parties may also have accounts in foreign banks with the permission from the Central Bank of Uzbekistan in accordance with legislation.
Their funds in foreign currency should be in accounts in authorized banks and may be used by them independently.
Proceeds in foreign currency, including from exports of goods (works, services) shall be credited to their accounts within authorized banks.
Parties are permitted to carry out within Navoi FIEZ settlements and payments in foreign currency in accordance with agreements and contracts between them.
Parties have the right to pay in foreign currency for goods, works and services from other economic entities - residents of the Republic of Uzbekistan.
In addition, participants can use convenient terms and forms of payments for exported and imported goods.
Business entities - residents of the Republic of Uzbekistan, non Parties, have the right to sell goods, works and services to Parties for foreign currency.
On foreign currency accounts of Parties in authorized Uzbek banks can be credited funds in foreign currency:
- on foreign trade payments;
- on payments within contracts signed with Parties.
- purchased through authorized Uzbek banks
- cash in foreign currency received by Parties in cases prescribed by legislation ;
- added to charter fund (authorized capital) of Parties in manner prescribed by law;
- on loans and foreign investments in accordance with the legislation, and payments related to their implementation ;
- payments on debit and credit cards;
- non-trade payments in cases prescribed by law;
- received in the form of grants from abroad in accordance with legislation;
- transferred from other accounts of account holder;
- in other cases not prohibited by law.
Funds in foreign accounts of Parties in authorized Uzbek banks at account holder request may be:
- transferred for payments related to current international operations;
- transferred to accounts of Parties in accordance with agreements and contracts;
- transferred to accounts of other economic entities - residents of the Republic of Uzbekistan in return for supply of goods, works and services;
- used to pay commission on foreign currency transactions to authorized bank, for payment of expenses related to employees business trips outside Uzbekistan (including in cash) in prescribed manner;
- used for repayment of loans, interest;
- transferred on expenses for including in charter capital (authorized
capital) of legal entities in accordance with legislation;
- sold to servicing bank on the territory of Uzbekistan;
- used to pay salaries of Parties’ non-resident staff;
- transferred to Parties other accounts, opened in other authorized Uzbek banks;
- used for non-trade payments in cases prescribed by law;
- used in other cases established by legislation.
All movement of funds through Parties accounts, opened in banks abroad, should be carried out in accordance with Uzbek laws, on the basis of which has been granted permission to open foreign bank accounts.
Parties can buy and sell foreign currency in domestic market through authorized banks by submitting an application and related documents in manner established by law.
Regulations also prescribe procedure of accounting and export and import contracts fulfillment.
Control over the correctness of Parties’ currency transactions shall be carried out by state tax agencies of Uzbekistan in accordance with legislation.
Authorized banks shall submit to the Central Bank of Uzbekistan reports on foreign exchange operations on the territory of Navoi FIEZ in the form and terms established by the Central Bank of the Republic of Uzbekistan.
Parties who violate the requirements of the Regulations and the legislation on currency regulation, shall be held responsible in the manner prescribed by law.
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