RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/UZB/3
12 October 1999
(99-4274)
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)
In a communication, dated 8 December 1994 (P C/W/20), the Government of Uzbekistan
applied for accession under Article XII of the Marrakesh Agreement Establishing the World Trade
Organization (WTO).  Having regard to the Decision adopted by the General Council on
21 December 1994, the existing Working Party on the Accession of Uzbekistan to the GATT 1947
continued as a WTO Working Party with the following terms of reference:  "To examine the
application of the Government of Uzbekistan to accede to the WTO Agreement under Article XII, andto submit to the General Council recommendations which may include a draft Protocol of Accession."
The membership is open to all WTO Members indica ting their wish to serve on the Working Party.
In document WT/ACC/UZB/2, Members had been  invited to submit questions in writing
concerning the foreign trade regime of Uzbekistan.  The initial questions submitted by Members andthe replies thereto provided by the authorities of Uzbekistan are reproduced hereunder.  The
attachments mentioned in this document are li sted in document WT/ACC/UZB/3/Add.1 and are
available in the Secretariat (Accessions Division, Room 1126) for consultation.
Delegations wishing to raise additional questions concerning the foreign trade regime of
Uzbekistan might inform the authorities of Uzbekistan (wish a copy to the Secretariat) of such
questions in advance of the next meeting of the Working Party, so that considered replies can be madeavailable by Uzbekistan to Members at the time of the Working Party meeting.
_______________WT/ACC/UZB/3
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CONTENTS
Question
NumberPage
Number
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN
TRADE
2. Economic Policies
(a) Main directions of the ongoing economic policies, tactical
and strategic goals of economic policies, pricing policy,
economic development plans, privatization plans, sectoral
priorities, regional development plans, etc1-6 1
(ii) Pricing policy 7-8 2
(iii) The system of the state order 9-12 3
(v) Economic development plans/sectoral priorities 13-14 4
(b) Monetary and fiscal policies
(ii) Taxes 15-16 5
III. FRAMEWORK FOR MAKING AND ENFORCING
POLICIES AFFECTING FOREIGN TRADE IN
GOODS AND TRADE IN SERVICES
1. Powers of executive, legislat ive and judicial branches of
government17 5
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulations 18-21 6
(b) Characteristics of national tariffs(iii) Customs tariff nomenclature 22 7
(d) Other duties and charges, sp ecifying any charges for services
rendered
(i) Customs fees/charges 23 7
(e) Quantitative import restrictions, including prohibitions,
quotas and licensing systems
(ii) Import prohibitions 24 8
(h) Customs valuation 25 8
(j) Pre-shipment inspection 26-28 8
(k) Application of internal taxes on imports
(ii) Excise tax 29 9
(l) Rules of origin 30-31 10(m) Anti-dumping regime 32-33 10
(n) Countervailing duty regime 34-35 11
2. Export Regulation
(d) Export licensing procedures
(i) Prohibitions 36 11
(e) Other measures, e.g. mini mum export prices, voluntary
export restrictions, orderly marketing arrangements
(i) Minimum export prices 37 12
3. Internal policies affect ing foreign trade in goods
(c) Sanitary and phytosanitary measures, including measures
taken with respect to imports38-41 12
(e) State-trading practices (Annex 6 refers) 42-47 13
(j) Government-mandated counter-trade and barter 48 16WT/ACC/UZB/3
Page ii
Question
NumberPage
Number
(l) Government procurement practices, including general legal
régime and procedures for tendering, dealing with tendersand award of contracts49-53 17
4. Policies affecting foreign trade in agricultural products 54-58 18
5. Policies affecting foreign trade in other sectors 59 19
VI. TRADE-RELATED SERVICES REGIME
1. General 60-63 20WT/ACC/UZB/3
Page 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions
Question 1.  
Uzbekistan has undertaken measures to reduce the dependence on the importation of grain,
meat and milk products. The Memorandum notes that the Government has made some steps to
reduce the area under cotton and increase the production of grain, and that irrigated land
under cereal crops increased as did the annual production of grain.  Could Uzbekistan provide
information on the programmes the Government has put in place to encourage grain
production?
Answer:
According to the Decree of the President of the Republic of Uzbekistan 1ÓÏ-1978,
18 March 1998 the Programme of economic reforms in agriculture was adopted for the period from
1998 to 2000 and the Republican Commission for co-ordination of works was created by this
programme. This programme is directed to restructuring of Uzbekistan’s agriculture sector with
gradual reduction of the cotton monopoly and increase in grains production.
Question 2.  
Uzbekistan notes that in order to increase the production of milk, meat and poultry, the
Government introduced tax privileges and create d conditions for extending loans on a priority
basis.   Could Uzbekistan provide more information on the tax privileges and the priority loans
to milk, meat and poultry producers?
Answer:
For producers of milk, meat and poultry, lowering VAT to the level of 15  per cent from the
existing single rate of 20 per cent VAT.  In addition, these producers are exempt from property taxes.
Question 3.  
Uzbekistan says that the Government provided state support to enterprises of
"Uzmyasomolprom" (Uzbek Meat and Milk Prod uction) that provided more incentives.   Could
Uzbekistan provide information on the nature  of the state support to these enterprises,
particularly the incentives provided?
Answer:
A Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹290, was adopted with
the purpose of stimulation and efficacious function of "Uzmyasomolprom" enterprises on
19 August 1996, entitled "On measures for deepening of processes of privatisation, shearing and state
support for "Uzmyasomolprom" enterprises.
Question 4.  
Does Uzmyasomolprom export any products?WT/ACC/UZB/3
Page 2
Answer:
Yes, it does. The enterprises comprised in to "Uzmyasomolprom" Association determine by
themselves expediency and volume of export-import operations. For instance, within the period of
1999 they were expected to export products (juice, drink, cakes, canned meat) to a value of about
US$ one million.
Question 5.  
Does the Government accord any exclusive or special privileges to Uzmyasomolprom of a kind
referred to in Article XVII of GATT 1994?
Answer:
No, it does not.
Question 6.  
Uzbekistan's Memorandum indicates the government has introduced measures designed to
obtain self-sufficiency in oil production.   Could Uzbekistan provide details on the types
measures that have been employed to increa se oil production? Are subsides involved?
Answer:
In order to increase oil production, within the State Investment Programme in the Republic of
Uzbekistan realised a number of projects for modernisation of existing infrastructure, construction ofnew oil extracting and processing enterprises with attraction of foreign investments and loans. State
subsidies are not involved.
(ii) Pricing policy
Question 7.  
Uzbekistan states that there are only a few items still subject to direct price regulation.   Could
Uzbekistan indicate what these goods are and what  plans they have in place for the removal of
these controls?
Answer:
In accordance with the Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹165,
31 March 1997, prices and tariffs on goods (works and services) of enterprises related to naturalmonopolies are under the State regulation.
Question 8.  
Uzbekistan says that all direct and indirect subsides foodstuffs (except flour) and consumer
goods were eliminated.   Can Uzbekistan provide information on the direct and indirect subsides
for flour?
Answer:
Since 1997 in Uzbekistan, subsidies for all foodstuffs, including flour, are abolished.WT/ACC/UZB/3
Page 3
The Tax Code of the Republic of Uzbekistan provides a favourable rate of VAT in 15 per cent
level for foodstuffs of desperate extremity (flour, bread, meat, milk and milkstuffs) within the existing
single rate of VAT-20 per cent.
(iii) The system of the state order
Question 9.  
Uzbekistan refers to the system of state order for cotton and grain. We understand from
Annex 6 (state trading enterprises), that the pr ocurement of the state order share is handled by
the state joint-stock corporation for wheat pr oducts, "Uzdonmakhsulot", and for cotton, the
state joint-stock association on the processing and sale of cotton production
"Uzdavpakhtasanoatsotish".   Could Uzbekistan provide more information on the system of
state order?
Answer:
The system of state order in Uzbekistan is functioning with the purpose of state regulation for
production of desperate extreme foodstuffs which have the strategic importance for economy of the
Republic. This is a temporary measures during transition to civilised market relations, aimed at the
support of volumes output of national food-stuffs and ensuring of financial base for reforms held in
Uzbekistan by using of tariff regulation.
Question 10.  
Could Uzbekistan provide more information on the uses of products purchased for the state
order?
Answer:
In the first turn, products purchased for by state order are directed to satisfy domestic needs of
population and enterprises of the Republic. Some of these products from this group are of high
liquidity on the world market. At the expense of export of these products, the Republic provided the
inflow of free converting currency which is necessary for realisation of reforms.
Question 11.  
Are there are any other products subject to the system of state order?
Answer:
No, there are not.
Question 12.  
Does Uzbekistan intend to completely eliminate the system of state order? What is the time-
frame for such elimination?
Answer:
According to the Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹61, of
3 February 1997  the Control Council of the Cabinet of Ministers was created to co-ordinate
management and deepening of economic reforms in the system of grains-staff. This Decree, otherWT/ACC/UZB/3
Page 4
normative statements of Uzbekistan, programmes of economic reforms held in Uzbekistan aimed at
gradual elimination of the state order system.
The time-frame for realisations of these plans are fixed by successful results of economic
reforms.
(v) Economic development plans/sectoral priorities
Question 13.  
The Government of Uzbekistan has provided a useful summary of its economic development
plans by industrial and sectoral priorities.   Can Uzbekistan provide more detail on these
programmes, specifically any concessions, privileges, subsidies or other benefits that are to be
made available and the criteria for eligibility?
Answer:
With the purpose of efficacious realisations of economic reforms, the Government of
Uzbekistan passed decrees to develop following branches of national economy:
- The Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹171,
29 March 1994 "On State Programme for deepening of processes for state
liberalisation and privatisation in the Republic of Uzbekistan".
- The Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹344,
28 August 1995 "On State Programme for support of development of small and
private businesses in the Republic of Uzbekistan".
- The Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹344,
28 August 1995 "On National programme for reconstruction and development of
communication network in the Republic of Uzbekistan".
- The Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹110,
12 March 1998 "On State Programme for development of export potential of the
Republic of Uzbekistan".
Question 14.  
Uzbekistan notes under sectoral measures for the automobile industry, that priorities and plans
include the expansion of exports to markets of neighbouring countries.   How is Uzbekistan to
achieve this? Specifically, does Uzbekistan intend to use export subsidies for this purpose?
Answer:
With the purpose of development of the automobile industry, the Government of the Republic
of Uzbekistan passed a number of decrees to increase export realisation of products of the
"UzDaewooAuto" joint-ventur e at the expense of development of the distribution system, creating of
service centres, etc.:
- The Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹118,
26 March 1996;
- The Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹304,
3 September, 1996;
- The Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹302,
17 June 1997, etc.
In accordance with above mentioned decrees of the Government of the Republic of
Uzbekistan, using export subsidies for this purpose is not intended.WT/ACC/UZB/3
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(b) Monetary and fiscal policy
(ii) Taxes
Question 15.  
Could Uzbekistan explain the manner in which VAT is applied to imported products:   Are all
imported products subject to the same rate of VAT in accordance with Article I of GATT 1994?
Answer:
According to the Tax Code of the Republic of Uzbekistan the rate of VAT for all types of
product is 20 per cent. However, in accordance with the decree of the Government of the Republic of
Uzbekistan for some social important foodstuffs (meat, flour, grain, milk and milkstuffs) the rate of
VAT is 15 per cent.
Question 16.  
Are there any cases where imported products are subject to a rate of VAT that exceeds the rate
applied to domestic products?
Answer:
There are no cases where imported products are subject to a rate of VAT that exceeds the rate
applied to domestic products.
III. FRAMEWORKS FOR FORMULATIN G AND ENFORCING THE POLICIES
AFFECTING FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
1. Powers of legislative, executive and judicial branches of the government
Question 17.  
Uzbekistan states that the foreign and trade polic y is formulated and enforced by the Cabinet of
Ministers with the involvement of a number of Ministries, agencies and state bodies. Howeverlocal authorities in rayons and cities have resp onsibility for the imposition of local taxes and
fees.  Can Uzbekistan advise whether the central government has authority to implement in full
measures that will ensure conformity of laws  and practices with the WTO, or whether sub-
central authorities have jurisdiction  in any areas covered by the WTO?
Answer:
According to the Law of the Republic of Uzbekistan "On state power of local authorities"
(2 September 1993) the regional and city Council of People's Deputies have the following powers:
fixing of local taxes and dues, providing privileges for local taxes and duties entering local budget in
accordance with current legislation of the Republic of Uzbekistan.
Local taxes and duties are indicated as follows: taxes to advertisement, spare parts of cars,
duties for cleaning populated areas and others. All these taxes and duties function in local areas and
stipulated to settle local problems.
The rates of above mentioned taxes and duties are not very high, neither connected with
foreign economic activity of the country nor affect economic development of Uzbekistan.WT/ACC/UZB/3
Page 6
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulations
Question 18.  
We are concerned that the requirements for impo rt contract registration could operate as an
import restriction or non-tariff barrier.   Could Uzbekistan please explain the circumstances
under which contract registration might be refused?
Answer:
The main reasons under which contract registration might be refused are:
- discrepancy of contracts with generally accepted standards of world trade rules and
current legislation of the Republic of Uzbekistan;
- too high prices of the imported goods comparing with prices for the same goods on
the world market on the day of signing a contract. In this case the Ministry for foreigneconomic relations and consult companies assist importers to select suitable
suppliers;
- indebtedness of an importer to the budget;
- equipment’s and technologies imported by state representatives which are old-
fashioned, obsolete and economically inefficient (based on conclusions of Statecommittee of science and technology, Uzstate standard, State committee of nature of
the Republic of Uzbekistan);
- imported technologies (patent, licences, know-how), equipment’s and other products
which are ecology harmful (based on conclusions of State committee of nature,
Uzstate standard, the Ministry of public health of the Republic of Uzbekistan);
- negative conclusion for imported medicines of vegetable origin and products of
biology origin used by pharmaceutical industry (based on conclusions of the Ministry
of Public Health and "Uzpharmindustry" concern).
Groundless refusal of registration might be appealed by law.
It is important to point out that only import contracts which are not provided with own
currency are registered by the Ministry of Foreign Economic Relations. The others are not subject
registration in the Ministry of Foreign Economic Relations.
Question 19.  
In what way is the process used to "protect the interests of the state"?
Answer:
Protection of interests of the state is provid ed by analysis of prices including customs
evaluation of goods imported by state enterprises as well as of imported goods the payment for whichenvisages conversion of national currency from centralised state resources to freely convertible
currency.
Hereby three targets are attained:
- import of goods at adequate prices which enables economic establishments to use
funds effectively and to pay respective customs duties;
- prevention of currency outflow from the Republic;
- reduction of imported goods’ prices that positively effects prices at the consumers’
market.WT/ACC/UZB/3
Page 7
Question 20.  
How is the system used to protect consumers from "low quality goods"?
Answer:
Registration of contracts foresees preclusion of import into the Republic of Uzbekistan of
outdated machinery and equipment, goods of low quality and products with remaining service life lessthan 80 per cent.
Uzbek customs officials check the identity of imported goods to conditions and quality
requirements stipulated in the contract.
Question 21.  
Does Uzbekistan plan to retain this system once it has in place WTO consistent policies in
relation to standards, quarantine, etc?
Answer:
The Republic of Uzbekistan plans to bring its legislation and normative acts in line with WTO
requirements related to standards, guarantees, etc., gradually.
(b) Characteristics of national tariffs, customs tariff nomenclature (harmonised system),
types of duties, a general description of the customs tariff structure, weighted average
level of duties on main groups of customs tariffs, application of MFN tariff rates, tariffpreferences
(iii) Customs tariff nomenclature
Question 22.  
Is Uzbekistan using the 1996 or 1992 versions of the Harmonised System for its customs tariff
nomenclature?
Answer:
At present Uzbekistan is using the 1992 version of the Harmonised Commodity Description
and Coding System for its customs tariff nomenclature. On 17 November 1998 the Republic of
Uzbekistan joined the International Convention on the Harmonised Commodity Description and
Coding System, which will enter into force in Uzbekistan on January 2000. To this end it is plannedto switch over to the 1996 version of customs tariff nomenclature developed on the basis of the
Harmonised Commodity Description and Coding System in Uzbekistan from 1 January 2000.
(d) Other duties and charges, specifying any fees for services rendered
(i) Customs fees/charges
Question 23.  
The rates of fees for customs formalities applied by Uzbekistan applies are inconsistent with
Article VIII of GATT 1994 in that there is a requirement that these fees are limited to theapproximate cost of services rendered and this cannot be achieved by an ad valorem fee.   Does
Uzbekistan intend to change this pr ogramme before accession to the WTO?WT/ACC/UZB/3
Page 8
The rates of fees for the customs services specified in Tables IV-2 and IV-3 seem excessive.  Does
Uzbekistan propose to review the charges to en sure that the fees are commensurate with the
cost of providing the service, as  required by Article VIII of GATT 1994?
Answer:
Rates of fees for customs formalities related to goods (works, services) in Tables IV-2, IV-3
correspond to average weighted payments for services provided by different organisations and
enterprises and are considered acceptable under conditions of Uzbekistan. At the same time, as it is
shown in the above-mentioned tables, certain measures are taken in the sphere of customs fee
collection for customs services taking into account actual expenses.
(e) Quantitative restrictions of import, including prohibitions, quota and licensing systems
(ii) Import prohibitions
Question 24.  
We note that there is an import prohibition on ethyl alcohol.   Is there a similar ban in place in
Uzbekistan on the production and/or sale of domestically produced ethyl alcohol?
Answer:
In Uzbekistan there is an import and transit prohibition on ethyl alcohol according to the
Decision of the Government. But there is no prohibition on production and/or sale of domesticallyproduced ethyl alcohol.
(h) Customs valuation
Question 25.  
Can Uzbekistan advise whether there are further step s that it needs to take to bring its customs
valuation regime into full conformity with the WTO? What plans are in place to achieve this?
Answer:
In accordance with the Law of the Republic of Uzbekistan “On Customs Tariff” customs
valuation of imported goods has been introduced in the Republic of Uzbekistan since 1 January 1998.
Provisions of this Law are in full conformity with WTO requirements. In order to achieve full
implementation of customs valuation in practice, customs officials and officials in charge of filling indeclarations were trained. Within the framework of  TACIS programme EC experts taught specialists
to apply customs valuation. Workshops on customs evaluation procedure were held.
(j) Preshipment inspection
Question 26.  
There is insufficient information at section IV.1.(j) to assess the conformity of Uzbekistan's PSI
laws and practices with WTO requirements.   Could Uzbekistan provide a copy of their laws on
this matter?WT/ACC/UZB/3
Page 9
Answer:
Resolution No 534 “On Measures for Carrying out Independent Experts’ Examination of
Contracts and Preshipment Inspection of Imported Good s” issued by the Cabinet of Ministers of the
Republic of Uzbekistan on 3 December, 1997 refers (document WT/ACC/UZB/3/Add.1).
Question 27.  
Can more details be provided of the PSI system and its operation?
Answer:
In accordance with Resolution No 534 issued by the Cabinet of Ministers of the Republic of
Uzbekistan on 3 December 1997 expert independent examination of contracts and preshipment
inspection of imported goods is carried out. Regulations on  procedure of carrying out independent
examination of import contracts and preshipment inspection of goods imported into the Republic of
Uzbekistan (Annex 1 to the Resolution) was adopted, Co-ordinating Council was established with theparticipation of ministries, departments and consulting firms to take operative decisions on issues
emerging while carrying out contract examination and preshipment inspection. Preshipment
inspection is not binding.
Question 28.  
Does Uzbekistan have in place a programme to enhance its Customs administration and
processes in order to obviate resort to PSI? If  so, what is the timeframe for this process? If
Uzbekistan does not have such a plan in place, are there plans to develop one?
Answer:
In future the Republic of Uzbekistan will ta ke measures to enhance customs administration
and national organisations dealing with expert examination and certification of products as well as toengage specialised private companies in preshipment inspection, fulfilment of which is not obligatory.
(k) Application of domestic taxes to imports
(ii) Excise tax
Question 29.  
Annex 9 to the Memorandum (WT/ACC/UZB/2/Add.2) indicates that there of excise tax applied
to new cars that are made and delivered from th e Russian Federation and cars from elsewhere.
This is inconsistent with the WTO.   What plans does Uzbekistan have to rectify this?
Answer:
In accordance with the Agreement on Free Trade between the Republic of Uzbekistan and the
Russian Federation, Resolution No 188 issued by the Cabinet of Ministers of the Republic of
Uzbekistan on 14 April 1997, a rate of excise tax for new cars produced in the Russian Federation and
imported from the Russian Federation was set at the level of 5 per cent of the contract value. TheRussian Federation also fixed a 5 per cent rate of excise tax for new cars produced in the Republic of
Uzbekistan and imported from the Republic of Uzbekist an. This situation is not inconsistent with the
provisions of WTO Agreements concerning rela tions between states that are not WTO members.WT/ACC/UZB/3
Page 10
(l) Rules of origin
Question 30.  
Although there are a few general points at section IV.1.(() of the Memorandum on Uzbekistan's
law and requirements for certificates of origin and the statement that the law "On the Customs
Tariff" complies "...on the whole ..." with WTO requirements, the Memorandum does not
provide sufficient detail to provide a full assessment of this claim.   How Uzbekistan plan to
administer the obligations it will assume under the Agreement on Rules of Origin?  What is the
timeframe Uzbekistan envisages for development a nd implementation of standards in this area?
Answer:
At present new “Rules of Origin of Goods” are being worked out and in 1999 they will be
adopted. The new Rules will comply with the requirements of GATT/WTO Agreement related to
trade with all countries of the world.
Question 31.  
Could Uzbekistan please provide a copy of the current relevant laws and administrative
processes?
Answer:
A detailed procedure for determination of the country of goods’ origin is given in the “Rules
on determination of the country of goods’ origin” which were developed by the Ministry for Foreign
Economic Relations and approved by the State Customs Committee, the Ministry of Finance and the
Central Bank of the Republic of Uzbekistan for further registration at the Ministry of Justice.
(m) Anti-dumping regime
Question 32.  
We will be interested to ensure that Uzbekistan's anti-dumping regime will be consistent with
WTO requirements.   When will Uzbekistan's Law "On Anti-dumping duties, which is currently
being drafted, be available for examination by the Working Party?
Answer:
The date of the Law availability for examination by the Working party will be given
additionally.
Question 33.  
Uzbekistan refers to producers of "similar or competitive goods".  Bearing in mind that WTO
Agreement on Implementation of Article VI of GATE" 1994 sets out what is meant by "like
product" for the purposes of anti-dumping.   Could Uzbekistan clarify what it intends by the
term "competitive goods", which suggests a wider definition than intended by the WTO
Agreement?
Answer:
The term “competitive goods” covers goods which meet the market’s requirements in all
characteristics and which are able to compete with similar imported goods. The necessity ofWT/ACC/UZB/3
Page 11
introduction of this term is justified by the fact that goods manufactured by producers of Uzbekistan
to some extent do not meet the requirements of the world market. That is why this term is used rather
than “domestic utilisation”.
(n) Countervailing duty regime
Question 34.  
We will be interested to ensure that Uzbekist an's countervailing duty regime will be consistent
with WTO - requirements.   When will Uzbekistan's Law "On Countervailing Duties", which is
currently being drafted, be available for examination by the Working Party?
Answer:
The date of the Law availability for examination by the Working party will be given
additionally.
Question 35.  
Uzbekistan refers to producers of "similar or competitive goods'. Bearing in mind that WTO
Agreement on Subsidies and Countervailing Measures sets out what is meant by "like product”
for the purposes of countervailing duties.  Could Uzbekistan clarify what it intends by the term
“competitive which suggests a wider definition than intended by the WTO Agreement?
Answer:
See explanations above.
2. Export Regulations
(d) Export licensing procedures
(i) Prohibitions
Question 36.  
Annex 11 to the Memorandum (WT/ACC/UZB/2/Add.2) provides a list of products, the export
of which is prohibited. Article X! of GATT 1994 and the WTO Agriculture Agreement do not
permit such export bans.   Could Uzbekistan explain the reasons why these products are banned
from export?  Can Uzbekistan indicate, the plans it has to remove these measures, or to adjust
them so that they can be justified under a WTO provision?
Answer:
The main reason for introduction of such export ban, related to the list of products
(Annex 11), is that at present Uzbekistan has a transitional period of its economic development. Some
goods are not produced in Uzbekistan at the amount to cover domestic demand yet and are imported
to the Republic.
In the nearest future this problem will be solved in the process of economic development and
the policy on export promotion will cover the goods, export of which is provisionally prohibited now.WT/ACC/UZB/3
Page 12
(e) Other measures
(i) Minimum export prices
Question 37.  
Can Uzbekistan advise what action is taken by MFER if export prices for raw materials do not
comply with world prices?
Answer:
The Government of the Republic of Uzbekistan is adopting special measures intended to bridge the
gap between the domestic and international prices of commodities, but taking into consideration the
social-economic circumstances of the country, this process should be of gradual nature.
3. Internal policies affecting foreign trade in goods
(c) Sanitary and phytosanitary measures, including the measures in respect of imports
Question 38.  
We note that while a number of laws relevant to SPS measures have been made available to the
WTO Secretariat (nos. 6,21, 23, 25 and 33), this does not include the Law on State Sanitary
Control of 3 July  1992 cited in the Memorandum.   Can Uzbekistan please provide the text of
the Law on State Sanitary Control, including a copy of the text of the medical and biological
standards No. 0065-96?
Answer:
The laws enacted in this area are: the Law on State Sanitary Control (3 July 1992) and the
Law on Quality and Safety of the Food Items (30 August 1997). These laws provide a basis for
ensuring sanitary-epidemic security of the population, as well as for ensuring the safety of the food
items that are produced locally or imported into the Republic of Uzbekistan. The process of revisionof the above laws for the purposes of bringing th em into conformity with the requirements of the
WTO Agreement on sanitary and phytosanitary measures has already been started.
During the formulation of relevant legal document s, the Ministry of Health is basing its work
on taking into consideration the requirements of international standards.
The requested documents can be found in the attachments to the current answers.
Question 39.  
We are interested in detailed informatio n regarding the legislative, regulatory and
administrative arrangements either in place at pr esent or proposed to ensure that Uzbekistan is
able to comply with the WTO SPS Agreement in view of the significance of the agricultural
sector to the Uzbekistan economy, including food production and processing, and of the
transformation of Uzbekistan's institutional framework, we would appreciate a detailed
explanation of Uzbekistan's regime for determining and maintaining sanitary andphytosanitary measures (including arrangemen ts for ensuring sanitary or phytosanitary
measures are soundly based on scientific evidence, and that such measures do not arbitrarily or
unjustifiably discriminate between members where similar conditions prevail, or between
Uzbekistan and other countries). We are also in terested in arrangements relating to control,
inspection and approval procedures, the establishm ent of an enquiry point, the establishment ofWT/ACC/UZB/3
Page 13
procedures to review complaints and other operational requirements of the SPS Agreement.
Could Uzbekistan please provide such information?
Answer:
The legal documents, which are currently regulating quarantine controls and as such
restricting the importation of vegetative and other quarantine related products in the Republic ofUzbekistan, have been developed taking into consideration the natural, climatic and other specifics of
our region.
The rules of quarantine for plants in most of the cases prohibit the importation of those
products, that are subject to quarantine, from the countries that have quarantine objects.
In case of the accession of the Republic of Uzbekistan to WTO, most of the legal documents
in the area of quarantine control (The Law on Quar antine of Plants, Rules, Regulations and Other
Acts) that are covering the activities of the agency implementing quarantine control of plants wouldbe revised and if necessary changed to bring them into the conformity with the requirements of the
WTO Agreement on the implementation of phytosanitary measures.
Question 40.  
We would also appreciate advice of arrangements for determining the need for sanitary and
phytosanitary measures, including the basis for determining the requirement for any variations
from internationally agreed standard s, recommendations or guidelines.   Can information on
this be provided please?
Answer:
The phytosanitary measures that are envisaged by the legislation of the Republic of
Uzbekistan are intended to protect the life and health of the citizens of the Republic, as well as itsterritory from the spreading of the quarantine and other dangerous diseases, insects, plant diseases and
vegetative parasites, which can cause significant economic harm to the national economy of
Uzbekistan.
Question 41.  
Can Uzbekistan advise its intentions regarding membership of Codex, the OIE and the IPPC,
the international standard setting bodies acknowledged under the SPS Agreement?
Answer:
Please refer to the answers above.
(e) State trading practices
Question 42.  
According to annex 6, the sale of cotton for export is handled through companies under the
Ministry of Foreign Economic Relations ("Innovatsia" and "Uzmarkaz-lmpex") and the state-owned joint stock association "Uzdavpakntasanoatsotisn").   Do these companies have any
special privileges with regard to exports of cotton?  Could Uzbekistan provide more information
on “Innovatsia” and "Uzmarkaz-lmpex"?WT/ACC/UZB/3
Page 14
Answer:
In accordance with the decisions of the Government, as well as the legal documents, the
exportation of the cotton fibre is centralised mainly  through foreign trading companies of the Ministry
of foreign economic relations (Innovatsiya, Uzmarkazimpeks, Uzprommashimpeks).
These foreign trading companies do not have specia l privileges or benefits with regard to the
exportation of cotton fibre.
The firm "Innovatsiya" was founded in 1988 and in 1992 it had been reorganised into a
Republican self financing foreign trade concern under the auspices of the Ministry of foreign
economic relations of the Republic of Uzbekistan.
Based on the Decree of the Cabinet of Ministers of the Republic of Uzbekistan ¹318 dated
15 August 1998. the company was again reorganised into the State joint-stock foreign trading
company under the auspices of the Ministry of Foreign Economic Relations.
The main area of activities of the Company is exportation of commodities, final goods,
technologies and know-how,  which are sold in re lation to implementation of the State order. The
main items that are imported by the company are machinery, equipment, technologies, consumer
goods and other products, which are in demand in the domestic market. Besides that, firm
"Innovatsiya" provides consulting services in the field of foreign economic activities, creation of Jointventure companies, implementation of investment projects.
Postal address: Republic of Uzbekistan
700077, Tashkent
 Str. Buyuk Ipak Yuly, 73
Tel: (3712) 68 77 42Fax: (3712) 68 77 33
Within the structure of the company "Innovats iya" there are a number of smaller foreign
trading firms that are the following:
- "Inagro"
- "Raznoimpex"
- "Integratsiya"
- "Invest"
- "Center for consulting and engineering services"
The geographical areas of main activities of the company are: Germany, USA, Italy, Japan,
Czech Republic, Slovakia, Russia, Ukraine, Panama, England, China, Thailand, Brazil, Poland,
Austria, Turkey and others.
In 1998 the annual turnover of the company was US$299.653 million, including revenues
from exportation – US$274,336 million and revenues from importation – US$25.317 million.
The State-joint stock foreign trading compan y "Uzmarkazimpex" was reorganised into the
State foreign trading concern "Uzmarkazimpex" in 1998.
In accordance with the act of Cabinet of Ministers of the Republic of Uzbekistan ¹10/31-303
dated 9 December 1998, as well as the Law of the State property management committee of theRepublic of Uzbekistan # 199k-PO dated 25 December 1998. on "On selling of the available portion
of ownership shares of the joint stock companies that belong to the Ministry of foreign economic
relations", some ownership shares of the company can be sold to the interested parties.WT/ACC/UZB/3
Page 15
The main type of activities conducted by th e company "Uzmarkazimpex" are to implement
export import trading activities that are centrally allocated by the State, as well as to participate in the
development and implementation of measures intended to expand the foreign economic co-operation.
In 1998 the annual turnover of the company was US$435.25 million, including revenues from
importation – US$70.47 million. The main item of exportation is cotton fibre, which was exported atthe level of 14 thousand tonnes. Among the im portation items were: 299.9 tonnes of grain, 199.59
thousand tonnes of soybeans, 1.68 tonnes of butter, 20.76 thousand tonnes of sugar, 4.63 thousand
tonnes of canned meat, 0.08 thousand tonnes of baby food, 0.35 tonnes of milk powder.
For the year 1998 gross revenues received from the sales of goods and services amounted to
1523.6 million sums. Financing of operations are done by means of combining external funds and the
company's own funds.
Postal address: Republic of Uzbekistan
700077, Tashkent
 Str. Buyuk Ipak Yuly, 75
Tel: (3712) 68 92 52
Fax: (3712) 68 75 55
Question 43.  
GATT Article XVII requires that purchases or sales by state trading entities be made solely in
accordance with commercial considerations.  How does Uzbekistan! justify with this WTO
requirement the stated purpose of the arrangements  for cotton (Viz. to generate export earnings
for the state budget and to protect farmers)?
Answer:
Foreign trade companies are selling cotton fibre in international markets exclusively pursuing
the commercial interests.
Question 44.  
Do the arrangements for cotton incorporate impo sition of a minimum export price? If so, how
does Uzbekistan justify such an export restriction under WTO provisions?
Answer:
There is no minimum export price for cotton-fibre. Just like in the international commercial
practice, prices of commodities are established on the basis of the quotations existing in international
exchanges for that given product. When concluding contracts, export prices for cotton fibre based on
quotations of the uzbek component of Index A of th e Liverpool cotton association or quotations of the
New-York Cotton Exchange.
Question 45.  
Annex 6 states that 25 per cent of the 1997 grain harvest was subject to the system of state order
In 1997, but that the balance of the crop was at  the disposal of the farmers, who could sell to
households or the State Procurement Agency. It also notes that the export of grain is currently
prohibited.   Could Uzbekistan provide more information on the role of the State Procurement
Agency?WT/ACC/UZB/3
Page 16
Answer:
State purchasing agencies, in accordance with the function of centrally processing some types
of agricultural products assigned to them, build their relations with producers on the basis of
contractual agreements. Mutually advantageous co-operation is brought about by means of signing
contracts with individual entities. In particular, futures contracts are to be set up, which would pay forfuture crop, and which is very important component of successfully implementing planting,
harvesting and other arrangements on production of agricultural goods.
In such situations it is beneficial for individual producers to work with procurement agencies
that solve main problems confronted by producers.
Question 46.  
What is the reason for the ban on exports of grain? How is the ban justified under WTO
provisions? Are there any plans to li ft the ban on exports of grains?
Answer:
The export ban of grain crop and some other products, as it has already been mentioned
above, is a temporary action, which is directed towards supplementing local consumer with products
of goods of first necessity and it is connected with difficulties of transition period. The primary reason
for this is insufficient local production of these products.
If the programmes of economic development are implemented, it is planned that not only
domestic demand for such products would be satisfied but also their exportation is planned. There
were significant successes reached in this area in th e short period of time, and in the near future these
problems will be solved.
Question 47.  
It is noted in Annex 6 that "Uzdonmakhsulot" co nducts nearly all flour milling operations, and
the grain subject to state order is purchased to ensure the supply of flour on the market.   Are
there plans for "Uzdonmakhsulot" to continue to undertake most flour milling operations in the
future?
Answer:
State-joint-stock company “Uzdonmakhsulot”,  having big production possibility for
processing grain into flour is currently being loaded by state supplies only for 50 per cent of its
capacity. Therefore it can process the grains from any other organisation, regardless of type of
ownership, based on the contractual basis.
(j) Government-mandated counter-trade and barter
Question 48.  
The Memorandum states that counter-trade and barter trade are allowed, but notes that they
are rare and mainly only for state needs.   Could Uzbekistan advise what sort of products and
services are traded under barter trade and counter trade, and for what state needs?WT/ACC/UZB/3
Page 17
Answer:
Barter or counter-trade is prohibited by law of the Republic of Uzbekistan and very rarely can
be implemented only with a special authorisation of Cabinet of Ministers of the Republic of
Uzbekistan, for purposes of implementing the programme of state purchases.
(l) Government procurement practices, including a general legal regime and procedures of
applications linked with tenders and award of contracts
Question 49.  
The Memorandum refers to the Cabinet of Ministers Resolution No. 397 of 14 August 1997 'On
the Improvement of the System of Procuremen t of Basic Foodstuffs for the State Needs",
pursuant to which the Ministry of Finance determines the upper limits of procurement of
foodstuffs for the year and informs relevant ministries!, departments and regions.   Could
Uzbekistan provide more information on how the Ministry of Finance determines theprocurement of foodstuffs for the year?
Answer:
According to rational norms of consumption of main foodstuff per year, which have been
developed and approved by Ministry of Health, and other corresponding ministries and agencies,
Ministry of Finance determines their
Question 50.  
Could Uzbekistan advise what foodstuffs are procured for state needs? In what quantities?
Answer:
In accordance with the decree of the Cabinet of Ministers №397 dated 14 August 1997 “On
improving system of purchases of main kinds of f oodstuffs for state needs” meat, meal, cereals, oil,
butter, sugar, tea, potatoes, dry milk and baby nutrition are main kinds of foodstuffs purchased for
state need.
Question 51.  
Could Uzbekistan provide more information on the role of the Republic Joint-Stock Association
for Wholesale and Commodity Exchange in the procurement process?
Answer:
In accordance with the decree of the Cabinet of Ministers №397 dated 14 August 1997 “On
improving system of purchases of main kinds of f oodstuffs for state needs” procurement of foodstuffs
is effected by corresponding regional firms providing the State supply organisations.
Question 52.  
The Memorandum states that procurement, as a rule, is on the basis of competitive tendering.
Are there any circumstances when competitive tendering is not used?WT/ACC/UZB/3
Page 18
Answer:
There are two kinds of tenders in the practice of bids conducted in the Republic at present
time: open (non-limited by participants number and close (limited by participants number).  The
decision about participants number of closed tender are made by Republic commission on co-
ordination of tenders conducting. The open tenders (competition on the best contract) are declared inthe Republic press and conducted among the economic units of the Republic of Uzbekistan.
The agency “Uzbektenderconsulting” of the Ministry of Foreign Economic Relations of the
Republic of Uzbekistan is executive body of the Republic commission on co-ordination of tenders
conducting and engaged in organisation conducting of tenders on foodstuffs supply for state
population needs.
Ministries and government departments have rights to independently conduct tenders.
Question 53.  
Are tenders open to both domestic and foreign suppliers?
Answer:
Internal and foreign suppliers of products that meet the tender conditions by all organoleptic
and economic indicators are allowed to participate the tender.
4. Policies affecting foreign trade in agricultural goods
Question 54.  
Uzbekistan extends some privileges and tax exemptions for manufacturing enterprises with
foreign investment which export goods of their own production.   Could Uzbekistan provide
more information on the nature of the privileges and tax exemptions?
Answer:
In accordance with tax code  of the Republic of Uzbekistan there is flexible system of tax
privileges to enterprises with foreign investments, enterprises of small business, enterprises producing
and processing agricultural production and also enterprises-exporters.
Question 55.  
Is there a direct relationship between qualificat ion for receipt of the privilege and export
performance?
Answer:
In accordance with the decree of the President of the Republic of Uzbekistan № YP-1871
dated 10 October 1997 “On additional measures to stimulate export of goods (work, services)” the
system of privileges provided for the own production of enterprises-exporters.
Question 56.  
The Memorandum notes that Uzbekistan's policy of reform in the agriculture sector is aimed at
eliminating in the near future th e payment to enterprises in the sector and farmers that is madeWT/ACC/UZB/3
Page 19
within  the framework of the direct state financial support.   Could Uzbekistan provide further
information on Its current agriculture programmes and its future plans?
Answer:
In accordance with the decree of the President of the Republic of Uzbekistan № YP-1978
dated 18 March 1998 the Programme of economic reforms in agriculture for the period 1998-2000was approved to carry out.
Question 57.  
Uzbekistan notes that the main aim of governme ntal policies is to ensure the stability and
growth of agricultural supplies to the domestic market, and pursuant to its policy, the
Government the undertaking a diversification of agricultural production.  How is the
Government undertaking its programme of agricultural diversification?  What sort of
Government support is given to this programme of diversification?
Answer:
In accordance with the programmes of economic reforms in the Republic of Uzbekistan the
measures taken oriented to development of agricultural sector and envisage the diversification of
agricultural enterprises, perfection of internal property and labour relations, introduction of new
agricultural production technologies.
Question 58.  
There is no indication in the Memorandum th at Uzbekistan currently subsidies exports of
agricultural products.  Can Uzbekistan confirm that it has no policies or programmes in place
that would provide such subsidies?
Answer:
In according with the legislation of the Republic of Uzbekistan the programmes of export
potential development and the programmes of rising the agriculture production stipulate only  tariff
and non-tariff regulation measures for indicated sphere.
5. Policies affecting foreign trade in other major sectors
Question 59.  
Uzbekistan notes that it pursues the policy of export promotion for oil and consumer goods.
Could Uzbekistan outline the types of measures or programmes used, and whether the receipt of
benefits under any of these programmes are specifically linked to export performance?
Answer:
The policies of the Government of Uzbekistan do not envisage export realisation of crude oil
but it is aimed at export delivery of oil production: automobile oil, diesel oil, aviakerosin and
technical oil. Generally, the policy of the Government of Uzbekistan is directed to rise the level ofprocessing raw materials  in the Republic.WT/ACC/UZB/3
Page 20
VI. TRADE IN SERVICES REGIME
1. General
Question 60.  
We are looking forward to receiving Uzbekistan's market access offer, and hope that it will
address all sectors (especially Legal, Accountin g, Architectural, Engineering Computing, Basic
Telecommunications and value-added Services, Co nstruction, Distribution, Tertiary Education.
Financial services, and Transport).   Would Uzbekistan please provide details of any restrictions
on foreign capital and participation in the various services sectors?
Answer:
In general there are no restrictions for foreign capital participation in economy of Uzbekistan.
The Government of the Republic of Uzbekistan implements measures on foreign investment attraction
in priority sectors including various services sector.
Question 61.  
It is not clear whether there is a state monopoly on Telecommunication services or whether
foreign investment is permitted at this time, or will be in the future. Would Uzbekistan please
clarify?
Answer:
There are no restrictions in the telecommunication sector. More than one hundred enterprises
with foreign capital participation act at this time in Republic.
Question 62.  
Would Uzbekistan please provide further information on the privatisation policy for state-
owned Transport services?
Answer:
The policies of the Republic of Uzbekistan in the transport services completely correspond to
measures applied by other countries in this sector. Some transport sectors are state owned in
connection with necessity to support due level of passengers safety, provide uninterrupted delivery of
cargo and fulfilment of international commitments of Uzbekistan. First of all it relates to air, railwayand pipeline transport. As to the other sector s measures on privatisation are taken. Now most of
transport enterprises have changed the form of property. Mostly such enterprises are reorganised in
joint stock companies.
Question 63.  
The Finance sector is an important one we would encourage Uzbekistan to make a binding
commitment on all sub-sectors. Does Uzbekistan intend to do this?   We note that insurance and
banking services may only be undertaken as part of a Joint venture. Will Uzbekistan review thisrestriction?WT/ACC/UZB/3
Page 21
Answer:
In accordance with effective legislation of the Republic of Uzbekistan there are no restrictions
concerning foreign capital participation in insurance services rendering in Uzbekistan.
__________