The Resolution of the President of the country of March 26 \"On additional measures to strengthen the incentives for exporting enterprises and expanding exports of competitive products\", provided new opportunities for Uzbek producers.

Enterprises that manufacture goods (works, services) got the right to participate in international tenders by projects implemented on the territory of the republic by means of international financial institutions, donor countries, foreign governments, on equal terms with foreign participants, including the subsequent contracting in foreign currency for the supply of manufactured goods.

They also can sign contracts with non-residents in foreign currency on terms of direct supply contracts provided for use of goods (works, services) of own production in the country. Such contracts are treated as export agreements. They are registered only in an authorized bank with provision of tax incentives for exporters.

On April 1, 2012 part of earnings in foreign currency directed to exporters on current account on repayment of principal debt on foreign currency loans for new construction, modernization and technological upgrading of existing facilities shall be exempt from compulsory sale to authorized banks for the period until full repayment of the principal debt, the document prescribes.

The most important task of enterprises is extensive introduction of modern quality management systems and certification of products for compliance with international standards.

The existing order to reduce the tax base for single tax payment provided for the purchase of new equipment apply to micro firms and small enterprises. It decreases the amount of funds allocated for implementation of quality management systems, certification of products for compliance with international standards, as well as acquisition of facilities for laboratory tests and trials.

Commercial banks have been recommended to expand the volume of factoring services for export transactions with an increase in the time limit from 60 to 90 days.

Certain categories of company-producers and foreign trade companies of the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan are allowed to export products at actual world market prices, including lower the actual cost.

The country has established a comprehensive system of benefits and incentives to increase production of export products and support exporters amid the global financial crisis. In particular, export sales of excisable goods (except for certain species) are not subject to excise tax. The turnover on the sale of goods (excluding precious metals) on the export of foreign currency is subject to VAT at zero rate.

For exporting enterprises (except for selling the commodity) rates of income tax and property tax decrease, depending on the share of exports of goods (works, services) of own manufacture for hard currency in the total sales volume:

- 30 percent: when the share of exports is 15%-30%;

- 2 times: when the share of exports is 30% or more.

For micro firms and small enterprise single tax rate is reduced:

- by 30% when the share of exports is 15%-30% of total sales;

- 2 times when the share of exports is 30% or more.

Textile industry enterprises of the country, realizing 80 percent or more of its products, including semi-finished products (yarn, fabrics, knitted fabrics and cotton waste), for hard currency are exempt from property tax up to January 1, 2016.

Export customs duties on all types of goods (works, services) and licensing of export, except specific ones are canceled.

The new rates for customs clearance fees approved in August 2011 that are paid for exported goods decrease on average by at least 2 times.

Micro firms and small enterprises are exempt from the mandatory sale of 50% of foreign exchange earnings coming from exports of goods (works, services) of own production.

The country has gradually introduced a mechanism of customs clearance of export transactions by the principle of \"one window\" that provides simultaneous implementation of customs clearance, declaration, certification, sanitary and epidemiological surveillance, and other customs procedures.

Earlier it was reported that, in March 2012, Uzbekistan adopted a program to reduce costs in the industry by an average of 11.2%. It involves the rationalization of production processes and consumption rates of raw materials and energy, increased capacity utilization and labor productivity, reduce operating and overhead, optimize staffing levels, etc.

Cost reduction will increase the competitiveness of domestic goods in domestic and foreign markets, experts of the Ministry of Economy say.

The need for formulation of this problem, in their opinion, is driven by increasing competition every year in the world markets of raw materials and finished products in particular.

Last year, according to official figures, the manufacturing sector of Uzbekistan exported products, goods and services by $15 billion. Increase in export operations was 15.4% compared with 2010.

The largest share of exports in 2011, according to official statistics, belongs to energy and oil products (18.5%).

13.2% of supplies from Uzbekistan were food with an increase of 57.9% compared to 2010.

The top three exports of services were (mainly in the field of aviation, road and rail) with a share of 11.8%.

The share of cotton exports nationwide dropped to 9% last year. Statistics recorded a consistently high proportion of exports of ferrous and nonferrous metals - 7.4%, as well as machinery and equipment - 6.7%.(Source: UzReport.com)