- An important role in the activity of the FEZ is played by an established production, social, transport, as well as engineering and communication infrastructure. At 414 hectares, gas and water supply systems are laid, power transmission lines are built.
Such areas of production as storage and processing of fruits and vegetables, production of textiles, footwear and leather goods, pharmaceutical and electrical products, food products, modern building materials, production of automotive components and others will be developed here.
Initially, 35 projects were developed, which should be implemented in three phases. It is planned to create over 1,700 jobs. For this purpose, 87.5 million dollars have been allocated. Here the scientific-production center of the "Khorezmian Test and Certification Center" state enterprise is working, which will carry out standardization, certification and labeling activities at the international level.
Now the Fund for Reconstruction and Development of the Republic of Uzbekistan provides opening within the approved quota of credit lines to all commercial banks that finance projects in the territories of free economic and small industrial zones. The administrative council is also given the right to dispose of land plots throughout the territory of the free economic zone.
Certain opportunities are provided to the participants of FEZ, who have the right to purchase exchange commodities (raw materials, materials, semi-finished products and finished products) necessary for their own production needs on the basis of direct contracts with producers at market prices based on average quotes formed on free exchange trades. They are also provided with customs and tax incentives.
In particular, they are exempted from paying taxes and mandatory contributions to state trust funds. In addition, now the term of the income tax and single tax payment is calculated from the date of commissioning of the production facility on the territory of the free economic zone. In case of changes in tax legislation, FEZ participants have the right to apply the rules and regulations on the payment of taxes and other mandatory payments that were in force at the date of their registration, with the exception of the norms and provisions of acts regulating the taxation of excisable goods. The insurance premium will be collected no more than 0.5 percent when processing collateral insurance for loans granted to participants in free economic zones.
Since November 1, 2017, the requirement for the examination of import contracts in the State Committee of the Republic of Uzbekistan on investments, concluded by business entities - participants in free economic zones in whose authorized capitals there is no state share, financed by commercial banks in accordance with the established procedure at the expense of the credit line of the Reconstruction Fund and development of the Republic of Uzbekistan.
In addition, starting from March 1 of this year, investors can submit investment applications to the Directorate of FEZ in an interactive form using information systems.
The Administrative Council has already approved five projects for the production of electric scooters, cargo bikes, stretch film, building materials and medical products worth $ 3.2 million. It is planned to create about 100 jobs. Enterprises implementing three of the above five projects are located in privatized, previously unused state buildings.
Today, the Uzbek-Chinese joint venture operates here in the form of Pitnak Panel LLC, producing panels and spare parts for Damas cars. Having bought the building of Khazorasp Ruf LLC, which ceased its activity and is on the balance sheet of the regional branch of Uzpromstroybank for 2.6 billion soums, began work by investing $ 3.6 million.
In the free economic zone, the activities of the enterprise for the processing of agricultural products, its storage, the production of textile products, footwear, pharmaceuticals will begin. Also, the food and electrical industry, construction and other industries will develop. Among them is Umid Sanoat Service LLC, which produces shoes, New Best Style LLC - wallpaper, Khazorasp Shavkat Textile Ltd. - hosiery products, Uz Koram-Co Ltd - spare parts for Damas, Labo cars, “OzERAE Climate Control Ltd” JV - car heating and cooling systems, "Khazoraspmaishiytechsozsavdo" Ltd. - washing machines, "Nur Muhammad Islom Obod" LLC - medical gloves. About 300 jobs will be created.
Negotiations are under way with the Chinese company Bluestar (Beijing) Chemical Machinery Co. Ltd to implement $ 80 million caustic soda project. When the enterprise is launched by making foreign investments (60 million dollars), 50,000 tons of caustic soda will be produced here a year, 600 people will be employed.
The website of the free economic zone has been launched. With the help of the Ministry of Foreign Affairs of Uzbekistan, brochures and presentations of the "Khazarasp" FEZ were sent to Urgench Chamber of Commerce and Industry, international trade associations and business associations of 34 foreign countries