NEWSLETTER ON PHARMACEUTICS JANUARY 2019

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

NEW FREE ECONOMIC ZONE

• A new free economic zone (FEZ) has been created in the Andijan region to facilitate the production of pharmaceutical products, drugs, medical equipment, etc.
• The FEZ is created for 30 years with the possibility of further extension.
• It is planned to focus on attracting Indian pharmaceutical manufacturers and, possibly, to transfer management over FEZ to foreign experts.

* Presidential Decree of 14.01.2019

FINES FOR PRESCRIBING AND SELLING MEDICINES WITHOUT A RECIPE

• It is proposed to amend Article 178 of the Code on Administrative Responsibility by introducing such delinquencies as prescribing prescription medicines to a patient without providing a recipe – for healthcare professionals and selling prescription medicines without a recipe – for pharmacies.
• The following fines may be introduced for these delinquencies: 1-3 times the minimum monthly wage for individuals and 5-10 times the minimum monthly wage for officials.

* Draft Law on Amendments to the Code of Administrative Responsibility ID-2041

NEW TAX REPORTING FORMS

• The Ministry of Finance has approved new tax reporting forms that must be used in submitting tax reports in 2019, including tax reports on the value added tax.

* Resolution of the Ministry of Finance No. 3126 of 21.01.2019

IMPROVEMENT OF INVESTMENT ENVIRONMENT

• The Presidential Decree No. UP-5635 provides for developing a strategy for improving the investment environment in Uzbekistan in the medium term as well as a legal act furthering attraction of foreign direct investments.
• The state-owned Direct Investment Fund with the authorized capital of USD 1 bln has also been created by the Decree. It will focus on cooperating with local and foreign investors for implementing innovative and promising investment projects. The Fund is able to contribute up to 30% of the required investment amount for a particular project. Relevant decisions will be taken by a state-owned managing company.

* Presidential Decree UP-5635 of 17.01.2019