Uzbekistan’s ‘Made in Uzbekistan’ initiative offers $1 million grants to manufacturers collaborating with international brands

SOCIETY 16:13 / 13.08.2024 564

Shavkat Mirziyoyev has approved a set of measures to expand cooperation with foreign brands. The presidential decree has been published in the Lex.uz database.

The Chamber of Commerce and Industry (CCI) will implement a program to promote the "Made in Uzbekistan" label. The goal is to integrate local businesses into global value chains created by international brands.

To achieve this, the CCI will launch a special electronic platform. Each year, by April 1, a list of well-known international industrial brands selected from the top 500 positions in the latest rankings will be published on this platform.

Companies with high and medium sustainability ratings that sign direct contracts with international brands from the list to produce their products in Uzbekistan will receive grants of at least $1 million. They will also be compensated for expenses related to:

- Implementing international standards, certification of compliance, and environmental certification;
- Upgrading the skills of engineers, technologists, marketers, fashion designers (for textile, leather and footwear, jewelry, and furniture enterprises), and other specialists.

Additionally, these companies will be exempt from customs duties on all types of raw materials necessary for the production of branded products for three years. However, the localization of production must be at least 60%.

Partners of international brands that produce at least 30% of their products under those brands will pay land, property, and water taxes at reduced rates—cut by half.

The Ministry of Investments, together with the CCI, will negotiate with the owners of international brands from the list. Each year, "roadmaps" for establishing production under foreign brands will be submitted to the Cabinet of Ministers.

Recommendations for adapting to the requirements of foreign partners will be published for local businesses. Additionally, seminars will be organized to align processes with these requirements.

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