Uzbekistan creates Fund for support of exports of small businesses

President of Uzbekistan Islam Karimov signed a resolution “On additional measures on support of exports of small businesses and private entrepreneurship” on 8 August 2013.

The document was adopted for further expansion of export potential of small businesses and private entrepreneurship and to provide legal, financial and organizational assistance in increasing production of modern and competitive products and promote them to exports, reliable support to exporters from external market risks.

The resolution said that new fund was created under the National Bank of Uzbekistan for Foreign Economic Activity and it will have territorial branches.

The document said that the fund will carry out marketing research of external markets and determine potential opportunities for exports of goods, produced by local small and private businesses.

The fund will also analyse assortment and nomenclature of goods, produced by small and private businesses, competitiveness of products, and develop proposals on improving quality of produced products.

The Fund for support of exports of small businesses and private entrepreneurship will provide legal, financial and organization service on promotion of goods at external market, prepare export contracts, protect exporters from possible risks, etc.

The fund will also help small and private businesses to participate in foreign tenders, fairs, exhibitions and roundtables. It will also help Uzbek businesses to establish contacts with foreign counterparts.

The Fund for support of exports of small businesses and private entrepreneurship will be legal entity in form of the non-governmental establishment, the resolution said. The fund will render services only to small and private businesses.

The primary size of the fund is 5 billion soums, of which 2.5 billion soums will be lump sum payment from the State Budget. Other part will be resources of the founders of the fund like small and private businesses, National Bank of Uzbekistan for Foreign Economic Activity, Chamber of Commerce and Industry of Uzbekistan, and other commercial banks, as well as donors.

The fund will charge small and private businesses for its services. The fee will not exceed 3% from the contract cost. The fund can be financed due to other sources, which are not banned in line with the legislation.

Uzbek President Islam Karimov also approved proposal of the state bodies and the banks to allow the Fund to provide financial aid to businesses and farms to develop export-oriented brand, help to obtain licenses and certificates for goods in line with the legislation of Uzbekistan, participation of exhibitions and fairs, etc.

President freed the Fund and its territorial branches form payment of taxes, duties and mandatory payments to targeted funds, excluding single social payment, till 1 January 2019.

The resolution said that the small and private businesses have right to export their products and services without advance payments, letter of credit or guarantee with a term of 180 days if there is insurance policy of the export contract.