NEWS AND EVENTS
February 12, 2013
Localization of Dream
Domestic manufacturing industry commands internal reserves
832 localization projects will be implemented this year in Uzbekistan.
Today, localization and imports appear, perhaps, one of the most important mechanisms for the development of any national industry.
Creation of production and development of new products can saturate the domestic market with high quality products, which are much cheaper than imported counterparts. In addition, it provides an opportunity to create jobs, stimulate domestic demand. On the other hand, it is a very effective way to initiate the modernization processes.
In Uzbekistan, localization is one of the main landmarks in the development of the industry. This affects not only the programs adopted each year, but also a considerable list of benefits and privileges granted to enterprises implementing these projects. For example, they are exempt from customs duties for imported technological equipment and spare parts to it, as well as components that are not produced in the country, used in a process for the production of localized products. In addition, they are exempt from income tax, single tax and property tax.
The funds of the enterprises which are released by these exemptions should be directed to the creation of new, expansion, renovation, modernization, technical and technological re-equipment of existing facilities, the introduction of quality management systems, the promotion of technical workers of enterprises, financing of research and development developments as well as reducing the production cost.
At the beginning of this year the Government of Uzbekistan has approved a list of existing projects of localization of finished goods, components, parts and components for 2013. This time it included 832 items of localized products. By tradition, the automotive and electrical industries were among the leaders.
In particular, Uzavtosanoat will implement 27 diverse projects. In 2013, the level of localization of Lacetti sedan production will reach 50.1%, of Damas microbuses at 55%, Matiz and Spark cars at 56% and Nexia sedans at 58%. In addition, much work will be done to deepen the level of localization of auto parts.
The electrical industry is going along the car manufacturing, where 28 projects will be implemented. For example, the famous Samarqand SINO company plans to issue 30,000 refrigerators and freezers with localization in 43%, and of the OSC Photon – 10,000 TVs with 45%.(Source: Uzbekistan Today newspaper)