RESTRICTED WORLD TRADE
ORGANIZATIONWT/ACC/UZB/3/Add.3
19 January 2001
(01-0277)
Working Party on the
Accession of UzbekistanOriginal:  English
ACCESSION OF UZBEKISTAN
Questions and Replies
to the Memorandum on the Foreign Trade Regime
(Document WT/ACC/UZB/2)
Addendum
The Government of Uzbekistan has submitted the following additional replies to questions
raised by Members.
_______________WT/ACC/UZB/3/Add.3
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CONTENTS
Question
NumberPage
Number
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN
TRADE
2. Economic Policies 1-2 1
(b) Monetary and fiscal policies 31
(iii) Taxes 4-5 2
IV. POLICIES AFFECTING TRADE IN GOODS 6-9 3
(c) Tariff quotas, tariff exemptions 10-11 4
(d) Other duties and charges, specifying any charges for
services rendered12-13 4
(h) Customs valuation 14 5
(j) Pre-shipment inspection 15 5
(k) Application of internal taxes on imports 16 5
3. Internal policies affect ing foreign trade in goods 17-27 6
(l) Government procurement practices 28 9
4. Policies affecting foreign trade in agricultural products 29 10WT/ACC/UZB/3/Add.3
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II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
Question 1.  
Question 6 of WT/ACC/UZB/3/Add.2 refers.  Please clarify why natural persons resident in the
Republic of Uzbekistan are required to present a “passport, visa, air and/or railway tickets,business trip documents for acquisition of foreign currency”?
Answer:
The above mentioned is firstly connected with the deficit of foreign currency. Currently, the
Government of the Republic carries out complex of measures directed to further liberalization of the
foreign currency market. The measures include: achievement of free convertibility of national
currency into hard currency on current accounts; unification of exchange rates. These measures are
successfully implemented.
The mechanism of sale of foreign currency upon presenting passport, visa, air ticket and/or
railway tickets is aimed to ensure acquisition of foreign currency by natural persons travelling abroad
who are in urgent need.
Question 2.  
Question 7 of WT/ACC/UZB/3/Add.2 refers.  Please explain why 30% of export earnings must
be converted into Sum at the official exchange rate?
Answer:
According to Paragraph 10 of Annex 1 to Resolution of the Cabinet of Ministers of the
Republic of Uzbekistan №245 dated 29 June 2000, “On measures to further develop and strengthen
off-the-counter exchange market”, authorized ba nks convert 50% of export earnings in foreign
currency at the Central Bank of the Republic of Uzbekistan exchange rate. Authorized banks also buy
free currency sources from their clients on the basis of agreement at the free rate in accordance with
supply and demand of foreign currency.
The above mentioned is connected with need to  maintain appropriate reserves of foreign
currency for successful implementation of economic reforms and realization of programmes onliberalization of currency market.
(b) Monetary and Fiscal Policies
Question 3.  
Question 16 of WT/ACC/UZB/3/Add.2 refers.  The current response does not clarify the criteria
utilized to identify “low quality, over-priced or illegally imported” goods (MFTR, p. 20). Please
elaborate further on precisely how the Republic of Uzbekistan authorities are able to identify
such products.
Answer:
Detection of negative parameters of exported goods is carried out in following way:WT/ACC/UZB/3/Add.3
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- -excess of contract price relative to international market price for goods of similar
quality is detected on the base of analysis of international market conjecture, as well
as, supply and demand within national market;
- -purchase by state economic entities of outdated, economically non-effective
equipment and technologies is detected on the base of conclusions of the StateCommittee for Science and Technologies, State Standard Committee, and State
Committee for Nature Protection of the Republic of Uzbekistan;
- -import of environmentally harmful technologies (patents, licenses, know-how),
equipment and other goods is detected on the base  of conclusions of the State
Committee for Nature Protection, State Standard Committee and Ministry of Public
Health of the Republic of Uzbekistan.
(ii) Taxes
Question 4.  
Question 18 of WT/ACC/UZB/3/Add.2 refers.  Please clarify the response to the second part of
Question 18. More specifically, it is unclear whether imported goods are subjected to the same
treatment as locally produced goods in term s of taxation and transportation tariffs.
Answer:
Earlier in communication, the use of principle of unified land tax was mentioned which states,
that agricultural producers pay in return to comple x of all current state and local taxes and levies,
excluding excise tax for alcoholic products. The order of payment and rate of unified land tax are
established by the Cabinet of Ministers of the Republic of Uzbekistan.
Indeed, there is another approach to importing goods. It includes import customs levies,
which do not apply to local goods, as well as VAT and excise (to the excised goods). Also sellers not
producing agricultural products are imposed taxes as trade enterprises pay.
Question 5.  
Question 19 of WT/ACC/UZB/3/Add.2 refers.  The answer to this question is insufficient. Please
advise, with examples, the mode of calculation for excise taxes. Please confirm whichGovernment Agency in the Republic of Uzbeki stan is responsible for making excise duty
calculations? Which agency implements the customs duty calculations?
Answer:
In accordance with legislation of the Republic of Uzbekistan, taxes and duties in the territory
of Uzbekistan are set and abolished by Oliy Majlis (Parliament).
The rates of taxes are approved of by the Cabinet of Ministers of Uzbekistan in accordance
with proposals of the Ministry of Finance of the Republic of Uzbekistan.
Ministry of Finance with the State Tax Committee of the Republic of Uzbekistan are
responsible for drawing up methods of calculation of excise tax (duties) for goods produced in the
territory of the Republic.  Ministry of Finance with the State Customs Committee of the Republic of
Uzbekistan draw up methods of calculation of ex cise tax (duties) for exported and imported goods.WT/ACC/UZB/3/Add.3
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Tax rates are calculated by payees and controlled by tax authorities and authorities receiving
these payments.
IV. POLICIES AFFECTING TRADE IN GOODS
Question 6.  
Question 30 and Questions 43-44 of WT/ACC/UZB/3/Add.2 refers.  Please advise the average
length of time it takes for an exporter to complete the process of import contract registration?
Answer:
Import Contracts subject for registration at the Ministry of Foreign Economic Relations are
presented only by economic entities of the Republ ic of Uzbekistan, i. e. importers of goods.
Term of expertise and issuance of conclusion on contract is set within not more than ten
working days. In accordance with Government of the republic resolution, from 1 July 2000, the
deadline for expertise and registration of contract on import of consumer goods is limited to fiveworking days.
Also, it needs to be mentioned, that unreasonable refusal to register contract can be appealed
against to court.
Question 7.  
Please explain why local banks are involved in the registration of import contracts?
Answer:
In accordance with requirement of the legislation of the Republic, banks that service import of
goods (authorized banks) file import contracts of clients, but do not register.
Question 8.  
Please confirm that no costs are associated with registration procedure.
Answer:
We confirm, that there are no levies or duties associated with the registration procedure.
Question 9.  
The contract registration regime described in the responses to questions 30, 43 and 44 appear to
represent an import-licensing scheme. Please clarify the responses provided to date withappropriate reference to the Agreement on Import Licensing Procedures.
Answer:
The regime of registration of part of import contracts, claiming the convertibility of local
currency from the state reserves, is radically different from the regime of import licensing and pursues
different goals.WT/ACC/UZB/3/Add.3
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The registration of contracts is carried out through expertise of conformity of contract
conditions to requirements of international and national legislations, as well as, conformity of contract
prices to current conjecture on global markets.
Import licensing is normally practised with aim to incur quantitative restrictions on import of
goods.
(c) Tariff quotas, tariff exemptions
Question 10.  
Question 36 of WT/ACC/UZB/3/Add.2 refers.  We welcomed the commitment listed in
WT/ACC/UZB/3/Add.2 to further liberalize the Republic of Uzbekistan’s foreign trade regime
in 2000. Please update members on progress.
Answer:
The Republic of Uzbekistan’s foreign trade regime is constantly liberalizing.
The new aspects of liberalization include: abolishing the mechanism of registration of
economic entities-participants of foreign economic activity, abolishing import customs duties on
staple products and others. Also, the Government is considering other measures, adoption of which
should promote further liberalization of foreign trade regime.
Question 11.  
Questions 37 and 38 of WT/ACC/UZB/3/Add.2 refers.  The answers to these questions do not
appear to be complete. Please advise from which countries goods ‘supplied under
intergovernmental or credit agreements signed on  behalf of the Government or against its
guarantees’ are imported.
Answer:
Goods ”supplied under intergovernmental or credit agreements signed on behalf of the
Government or against its guarantees” may be imported from any country.
(d) Other Duties and Charges
Question 12.  
Question 41 of WT/ACC/UZB/3/Add.2 refers.  The response to question 41 does not address the
question of compatibility with Article VIII of GATT 1994. We would appreciate further
information on how the new customs fees stip ulated by the Resolution of the Cabinet of
Ministers of the Republic of Uzbekistan No 204 are limited to the costs of the services rendered.
Answer:
Duties for customs service formalization of goods (works, services) correspond to weighted
average fees for services and are acceptable in the Republic of Uzbekistan. At the same time,
Uzbekistan is undertaking some steps on the issue of collecting fees for customs services, consideringmore accurate resources spent.WT/ACC/UZB/3/Add.3
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Question 13.  
Question 47 of WT/ACC/UZB/3/Add.2 refers.  Please confirm whether the issuing of the
“passport of import operations” is automa tic on the presentation of the requisite
documentation.
Answer:
Passport of import operations is formalized and issued to importer by authorised bank upon
presentation of the requisite documents.
(h) Customs Valuation
Question 14.  
Question 49 of WT/ACC/UZB/3/Add.2 refers.  We continue to believe that Article 25 of
Uzbekistan’s Customs Tariff and the Law of the Republic of Uzbekistan “On Customs Tariff”
do not fully comply with the relevant sections  of the Agreement on the Implementation of
Article VII of the GATT 1994, specifically Articles 1-17, including in particular assessing
transactions values. It would be helpful if Uzbekistan could clarify how it perceives that its
legislation is fully in compliance.
Answer:
With the purpose to apply the provisions of the Law “On Customs Tariffs” on customs
valuation, the State Customs Committee developed the “Instruction on clarifying customs valuation of
goods imported to the territory of the Republic of Uzbekistan” registered at the Ministry of Justice on
13 January, 1998 №390. This Instruction contains all provisions provided for by the Agreement on
application of Article VII GATT 1994 particularly Articles 1-17 which include valuation of
transactions. In this sense the Legislation of the Republic of Uzbekistan is fully compliant with theagreements of GATT 1994.
(j) Pre-shipment inspection
Question 15.  
Question 50 of WT/ACC/UZB/3/Add.2 refers.  Could Uzbekistan provide the membership with
a proposed timetable for the planned implemen tation of a green channel customs system?
Answer:
The Republic of Uzbekistan, recognizing in general the need of implementing a green channel
customs system, currently is not ready to discuss a proposed timetable of its enforcing because of
reasons of objective character related to geographical nearness of unstable locations.
(k) Application of internal taxes on imports
Question 16.  
Question 51 of WT/ACC/UZB/3/Add.2 refers.  When will Uzbekistan bring its system of
internal taxation, including in particular VAT, on imported goods into conformity with Articles
I and III of GATT?WT/ACC/UZB/3/Add.3
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Answer:
The application and rate of VAT in import of goods completely comply with the national
regime functioning in the country.
3. Internal Policies Affecting the Foreign Trade in Goods
Question 17.  
Question 78 and 79 of WT/ACC/UZB/3/Add.2 refers.  Could Uzbekistan update the contact
details of all of the Agencies listed in Annex 5 of MFTR (As of 9 June 2000 many of the fax and
telephone numbers do not appear to be functioning).
Answer:
Contact coordinates of the Agencies listed in Annex 5 of MFTR
1. Uzbek State Center for Standardizati on, Metrology and Certification under the
Cabinet of Ministers of the Republic of Uzbekistan “Uzstatestandard”
Address: 333-a, Farobi str., 700049, Tashkent, Uzbekistan;
Telephone: (998 712) 46 17 10, 46 19 60, 49 35 29, 49 35 47;
Fax: (998 712) 49 35 47, 49 35 06.
2. State Committee of the Republic of Uzbekistan on Architecture and Building
Address: 6, Abai str., 7000 11, Tashkent, Uzbekistan;
Telephone: (998 71) 139 86 98, 144 07 00, 144 00 64;
Fax: (998 71) 144 02 61, (998 712) 41 38 03.
3. Ministry of Health of the Republic of Uzbekistan
Address: 12, Navoi str., 700000, Tashkent, Uzbekistan;
Telephone: (998 712) 41 18 13, 49 46 88, (998 71) 144 48 23;Fax: (998 71) 144 10 33.
4. State Committee of the Republic of Uzbekistan for Nature Protection
Address: 7, Abdulla Kodiriy st., 700128, Tashkent, Uzbekistan;
Telephone: (998 712) 41 04 42, (998 71) 144 63 01;
Fax: (998 712) 41 56 33, 41 39 90.
Question 18.  
Question 80 of WT/ACC/UZB/3/Add.2 refers.  Uzbekistan’s response about the consultative
process it engages in before it issues legislation relevant to the TBT and SPS Agreements
appears to have omitted the need to engage in  consultation with foreign partners as required
under Article 2 and Annex B (5) of the TBT and SPS respectively. Could Uzbekistan confirm
that it plans to ensure that it provides to other members “particular copies of any proposed
technical regulation and that it will, without discrimination, allow reasonable time for other
countries to make comments in writing, discu ss these comments upon request, and take the
results of these discussions into account” (TBT Article 2.9.4)?WT/ACC/UZB/3/Add.3
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Answer:
Uzbekistan confirms that it will fully apply the provisions of Article 2.9.4 of TBT within
Articles 11 (Technical Assistance to Other Members) and 12 (Special and Differential Treatment of
Developing Member Countries).
Question 19.  
Question 88 of WT/ACC/UZB/3/Add.2 refers.  Could Uzbekistan elaborate the reason for the
wholesale application of mandatory standards on imported goods?
Answer:
Application of mandatory standards is not bound up with wholesale or retail trade with
imported goods and produced on the territory of the Republic of Uzbekistan goods as well. Mandatory
standards are applied to the products subject to mandatory certification and which have established
safety indications related to the protection of human health and nature. In the line with this, the samerequirements are applied to imported goods as to goods produced on the territory of the Republic of
Uzbekistan.
Question 20.  
Question 94 of WT/ACC/UZB/3/Add.2 refers.  Uzbekistan notes that it is considering a move
from mandatory certification of all food products to a regime where only high-risk goods will besubject to mandatory certification. Could Uzbekistan provide a timetable for the
implementation of such a regime?
Answer:
The Republic of Uzbekistan is running the work on grouping products depending on different
risk categories. As foodstuff products are related to health protection and population safety, andnaturally, they are included into the group of high-risk, these products are under mandatory
certification in accordance with current legislation.
A timetable for introduction of such regime has not been yet developed.
Question 21.  
Question 104 and 133 of WT/ACC/UZB/3/Add.2 refers.  We are unclear what is meant by a
system of closed tenders managed by the Republic Commission on Coordination of Tenders on
Government Procurement and the Republic Commission on Coordination of Tenders for the
Procurement of the Main Foodstuffs for State Needs. Could Uzbekistan please elaborate on
what basis and for which food products closed tenders are utilised?
Answer:
With the purpose to form the most favourable prices on products purchased for special
consumers, institutions under state supply and state reserve, these products are purchased throughimport on the basis of only closed tender bids declared by the Republic Commission on Coordination
of Tenders.
The key foodstuffs are meat and meat products, animal fat, tea, sugar, vegetable oil, flour,
cereals, dry milk, infant nutrition, potatoes.WT/ACC/UZB/3/Add.3
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The order of conducting of closed tender bids is similar with that of open tenders.
Additionally, the official proposal of the Commission on participation in tender is required.
Question 22.  
Question 105 of WT/ACC/UZB/3/Add.2 refers.  Our reading of the response to this question
suggests that the process by which the Republican Commission on Coordination of Tenders onGovernment Procurement is a significant barrier to trade. Can Uzbekistan explain why this
system is maintained, including in particular the reason for the ‘pre-qualification phase’?
Answer:
The process carried out by the Republic Comm ission on Coordination of Tenders is not a
barrier in trade. Conducting of pre-qualification is regulated by the Rule on conducting of tenders.
The reason for this procedure is to not allow the access to tenders for firms and companies which:
- are in the process of reorganization, liquidation or bankruptcy;
- did not present on time necessary documents for pre-qualification selection including
bank guaranties on fulfilment of financial obligations;
- do not meet the requirements of the Commission on financial, production or
commercial indications.
Question 23.  
Question 107 of WT/ACC/UZB/3/Add.2 refers.  The MFTR notes that information about
forthcoming tenders is supplied to the “mass media.” The reply to Question 107 listed the
‘mass-media outlets’ which received information about ‘open tenders.’ Please advise in which
publications ‘closed tenders’ are solicited.
Answer:
The information on closed tenders is not published in mass media outlets. The participation in
such tenders is carried out upon official proposals of the Commission.
Question 24.  
Question 109 of WT/ACC/UZB/3/Add.2 refers.  Please update the telephone and fax numbers
supplied in the response to this question. Neither number appears to function at present.
Answer:
Requisites of “Uzbektenderconsulting” Agency:
Address: 75, Buyuk Ipak Yuli st.
Tashkent
The Republic of Uzbekistan;
Phone: 998 (712) 68 26 28, 68 75 10, 68 27 41, 68 25 51;Fax: 998 (712) 68 75 96, 68 27 42.WT/ACC/UZB/3/Add.3
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Question 25.  
Question 113 of WT/ACC/UZB/3/Add.2 refers.  We would be grateful if Uzbekistan could
respond to this question in the specific context of the Understanding on the Interpretation of
Article XVII of GATT.
Answer:
The Republic of Uzbekistan undertakes by its accession to the WTO it will fully apply
provisions of Article XVII of GATT 1994.
Question 26.  
Question 114-115 of WT/ACC/UZB/3/Add.2 refers.  Our understanding of the conduct of
UzMyasoTorg in the butter market of Uzbekistan over the past three years is that it influencing
through its “purchases or sales the level of direction of imports...” This remains somewhat at
odds with the information supplied in Uzbekistan’s response to these questions. CouldUzbekistan provide more detailed information about the purchasing and distribution activities
of this organisation in 1998-9, with particul ar reference to the reasons for its activities
throughout 1999 which significantly depressed butter prices on the domestic market?
Answer:
There was some inaccuracy in the comments to the answers to these questions. Butter trade is
one of activities of the enterprise of “UzMyasoTorg” but not the main one. The enterprise does not
influence through its “purchases or sales the level or direction of imports or exports”.
Question 27.  
Question 116 of WT/ACC/UZB/3/Add.2 refers.  It is unclear from the response what constitutes
a period of “urgent need” and “strategic impo rtance.” Indeed, the response implies that the
‘urgent need’ referred to, inter alia, relates to  the need to support domestic production in
Uzbekistan. Please define these terms more clearly.
Answer:
The products of urgent need are main food products lack of which in trade or stoppage in
supply could negatively affect to daily ration of consumers. Primarily, they are as follows: meat andmeat products, animal fat, tea, sugar, vegetable oil, flour, cereals, dry milk, infant nutrition.
(l) Government Procurement Practices
Question 28.  
Question 120 of WT/ACC/UZB/3/Add.2 refers.  We remain unclear from the response as to
what the ‘self supporting’ role of the Division  of MFER called Uzbektenderconsulting means.
Does this mean that the Division funds itself from registration (et al) fees?
Answer:
“Uzbektenderconsulting” Agency is self supporting (structural) division of the Ministry of
Foreign Economic Relations of the Republic of Uzbekistan, executive body of the Republican
Committee on Coordination of Tenders, but the Agency is also legal entity which carries out itsWT/ACC/UZB/3/Add.3
Page 10
activity on the terms of full economic independence. The Division is not financed from the fees
incurred for the registration.
4. Policies Affecting Foreign Trade in Agricultural Products
Question 29.  
Question 137 of WT/ACC/UZB/3/Add.2 refers.  The response has not clarified when Uzbekistan
will be in a position to provide the information requested in WT/ACC/4.  We would be grateful
for such a clarification.
Answer:
Currently relevant ministries and departments of the Republic of Uzbekistan are preparing the
information on WT/ACC/4.
__________