Newsletter on Pharmaceutics for October 2019

This legal alert highlights the most important legal developments of September 2019 that affect the Uzbek pharmaceutical industry as a whole and activities of foreign pharmaceutical producers and their representative offices in Uzbekistan in particular.

1.    INCENTIVES TO STREAMLINE PROCUREMENT PROCEDURES 

• The President has signed the document that simplifies procedures for procuring medicines by strategic companies (e.g. JSC “Dori-Darmon”) and companies, whose shares are owned by a strategic company. As a result of the changes, such companies are no longer required to submit technical specifications for medicines being procured provided that relevant procurement contracts has been concluded with manufacturers of the medicines directly. Previously, a general rule applied, under which all strategic companies were obliged to submit their technical specifications for external expertise, if the amount of the relevant procurement procedure exceeded USD 50,000.
• It is to note that the obligation to register contracts on the purchase/import of medicines in excess of USD 50,000 has remained.

Presidential Decree No. PP – 4493 of October 22, 2019

2.    EXPORT-IMPORT OPERATIONS CONTROL

• Amendments have been introduced to the Regulation on the Foreign Currency Control over Export and Import Operations. Some rules for the imposition of fines on local businesses for delays in performing contractual obligations under export-import contracts have changed. Based on the new rules, entrepreneurs may get the opportunity to avoid payment of relevant fines or to get a refund of paid fines in case if contractual obligations have been performed (i) at the time of consideration of the imposition of a fine by the court or before the relevant court decision on the fine is executed – it may be possible to avoid payment of the fine, (ii) within 90 days after the fine has been paid – to get a refund of the paid amount.

Presidential Decree No. UP - 5856 of October 24, 2019