General legal newsletter for February 2022

Some notable legal changes in Uzbekistan in February 2022 included the strengthening of responsibility for violating the legislation on intellectual property, measures to develop animal husbandry, the creation of a chemical industrial park in the Tashkent region.

As sanctions have been imposed on Russia, one of Uzbekistan’s key economic partners, President Mirziyoyev has instructed the Cabinet of Ministers to develop an action plan for addressing possible negative consequences in each industry and region. Details of such measures are expected to follow.  

 1.  RESPONSIBILITY FOR INFRINGING IP LAW 

Responsibility for violating the intellectual property (IP) legislation has been strengthened. Hence, among others, a fine of 100-200 times the baseline calculation value (approx. USD 2,500-5,000) has been set for legal entities engaged in the following:

• unauthorized production, use, import, offering, sale, or storage of a product containing patented industrial property objects, or unauthorized use of a patented production method, or unauthorized introduction into circulation of a product manufactured with the use of a patented production method or storage for that purpose;
• illegal use of a trademark, an appellation of origin of goods, or relevant confusingly similar designations for homogeneous goods;
• illegal use of a company name.

Law No. ZRU-749 of 2 February 2022 

 2.  DEVELOPMENT OF ANIMAL HUSBANDRY 

The President has issued two Resolutions on developing the animal husbandry. The following is, among others, envisaged:

• from 1 January 2022 to 31 December 2023, state subsidies and compensations will be provided to livestock farms for, among others, purchasing agricultural equipment and modernization;
• USD 300 mln financing will be attracted from the World Bank for developing the sector;
• businesses in the sector will get access to 10-year loans of international financial institutions with a 3-year grace period;
• till 1 March 2025, imported agricultural machinery used for the harvesting and sowing of forage crops and the fodder production being not older than five years will be exempted from customs payments (except for VAT and customs clearance fees) and the recycling fee;
• Program for the Development of Animal Husbandry in 2022-2026 has been approved; it is, among others, planned that some international standard will be introduced in the sector (Global GAP, НACCP, etc.).

Presidential Resolution No. PP-120 of 8 February 2022
Presidential Resolution No. PP-121 of 8 February 2022

 3.  CHEMICAL INDUSTRIAL PARK IN CHIRCHIK 

Based on an agreement between the municipality of the Tashkent region, JSC “Uzkimyosanoat” (Uzbekistan), and JSC “Khimgrad” (Tatarstan, Russia), a chemical industrial park has been established in the city of Chirchik in Tashkent region. Some of the main directions of the park activity include attraction of foreign and local investments for the manufacturing of highly demanded, import-substituting chemical products and the creation of energy efficient, environment friendly chemical facilities in accordance with the best international standards. The park has been established for 30 years. Special tax and customs incentives apply within the park including, among others, the exemption from customs payments for importing particular materials and equipment, and the exemption from the land and property taxes for 10 years. Investors operating within the park may also get guarantees from the State Fund for Supporting Entrepreneurial Activities for attracting loans for implementing relevant projects and a compensation of relevant interest expenses (certain thresholds apply).

Presidential Resolution No. PP-116 of 3 February 2022 

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Have a good day!

Sincerely,
Kosta Legal Law Firm