UZBEKISTAN LEGAL NEWSLETTER: MARCH 2025

The President has signed a Decree on the further development of special economic zones (SEZ) and industrial zones[1]. The Decree, among other things, envisages the following:

• in 2025, SEZs are expected to attract USD 2.3 billion in investments, increase exports to USD 1 billion, and achieve a production output of USD 4.3 billion, while industrial zones are projected to attract USD 800 million in investments, increase exports to USD 512 million, and reach a production output of USD 1.8 billion;
  
  
• new special zones will be established exclusively as SEZs or industrial zones, and only on those non-agricultural lands that either have adequate infrastructure or where the development of infrastructure is deemed justified. The establishment of these zones must be coordinated with the Governmental Commission on Investment Attraction, Industry Development, and Trade Regulation (the “Commission”);
  
  
• investors operating within SEZs and industrial zones will lease land plots for up to 49 years. Relevant amendments will be introduced to the Land Code to reflect this rule;
  
  
• the Ministry of Investments, Industry, and Trade is designated as the special authority responsible for managing SEZs, excluding touristic, privately operated, and other special zones specified in legislation;
  
  
• special rules for SEZs include the following: (i) they are created to implement export-oriented and high-tech projects; (ii) they may be created as special export zones for implementing exclusively export-oriented projects; (iii) land plots within SEZs are leased directly[2] to investors based on resolutions of the Cabinet of Ministers, through a selection process conducted by the Commission; (iv) the rent for land plots is determined using coefficients in relation to the market value, as assessed by an appraisal organization; (v) the establishment of service enterprises for residents of SEZs is permitted through the sale of land plots at online auctions; however, such enterprises will not be eligible for tax benefits.; (vi) the time limits on the operation of SEZs are abolished;
  
  
• special rules for industrial zones include the following: (i) they are created for the establishment of industrial and manufacturing enterprises based on a master plan in accordance with decisions made by the Councils of People's Deputies of the regions; (ii) the sale of land plots, buildings, and structures at online auctions is carried out by the industrial zone administration, who also determine relevant investment commitments; (iii) only legal entities are permitted to participate in online auctions; (iv) land plots are offered at online auctions with a lease term of no less than 10 years, with the option for privatization or extension of the lease term after fulfilling the investment obligations; (v) the starting rent for land plots is determined in accordance with the established procedure by regional municipalities, and must be no less than the land tax rate;
  
  
• the Ministry of Investments, Industry, and Trade in coordination with the Commission may transfer the operation of SEZs and industrial zones to private investors based on investment agreements, following proposals from local municipalities, ministries, and agencies. Private investors shall build the necessary infrastructure and assume investment commitments. They may divide and sublease land plots within the zones they operate;
  
  
• a new special export zone “Namangan” will be established. Materials and equipment imported into this zone from abroad will be placed under the “free customs zone” regime and considered as located outside the customs territory of Uzbekistan. Materials, equipment, and services supplied by local companies to participants of the zone will be classified as exports, while goods supplied from the zone into Uzbekistan will be treated as imports;
  
  
• starting from 1 June 2025, participants of SEZs will be allowed to place imported goods used in the production of export goods under the customs regime of “processing on the customs territory”, without paying customs duties and taxes (except for customs clearance fees);
  
  
• by 1 August 2025, a draft resolution on the establishment of a SEZ with at least 500 hectares of land in the Tashkent region will be submitted to the Administration of the President;
  
  
• by 1 September 2025, draft laws “On Special Economic Zones” (new edition) and “On Industrial Zones” will be submitted to the Cabinet of Ministers;
  
  
• a Roadmap for Improving the Institutional Framework of SEZs and Industrial Zones is provided in Annex 1 to the Decree.

[1] It is worth noting that the terminology used in the Decree is somewhat misleading - by referring to “special economic zones,” it appears to imply the free economic zones defined under the Law “On Special Economic Zones,” rather than the broader concept of SEZs, which includes all types of special zones, including industrial zones.

[2] Except for zones specializing in tourism or under private management, as well as special zones specified in legislation.

Presidential Decree No. UP-41 of 4 March 2025

 2.  ALIGNING FOREIGN TRADE LEGISLATION WITH WTO RULES

The President has signed a Decree on harmonising export regulations with WTO standards. The following changes will be effective from 1 July 2025:

• export duties at specified rates will be imposed on certain raw materials and socially significant products, as listed in Annex 1 to the Decree;
  
  
• the current practice of authorizing the export of certain products (such as meat and meat products, grain, flour, sugar, etc.) exclusively through decisions of the President or the Cabinet of Ministers will be abolished;
  
  
• export fees for silk waste (including silk floss), raw silk, semi-finished leather products, cotton yarn, and knitted fabric will be eliminated;
  
  
• the Interdepartmental Commission on Cooperation with the WTO has been tasked with providing quarterly briefings to the Administration of the President and the Cabinet of Ministers on the effectiveness of the implemented export duties and submitting proposals for their modification, if necessary.

Presidential Decree No. UP-47 of 14 March 2025