On additional organizational measures to create favorable conditions for development of tourism potential of the Republic of Uzbekistan (DP-5326-son)

03.02.2018

Decree

of the President of the Republic of Uzbekistan

In order to create the most favorable conditions for development of a tourist potential of the republic, primarily through active attraction of investment, introduction of innovative ideas and technologies in this sphere, as well as a full utilization of existing opportunities and resources of a rich natural, cultural and historical heritage of the country:

1. To establish a visa-free regime from February 10, 2018 for a period of 30 days from the date of entry into the territory of the Republic of Uzbekistan for citizens of the State of Israel, Republic of Indonesia, Republic of Korea, Malaysia, Republic of Singapore, Republic of Turkey and Japan, as well as crew members of aircrafts of foreign airlines, carrying out regular flights to the Republic of Uzbekistan.

11. The list of countries whose citizens shall be subject to a simplified procedure for issuing tourist visas — providing for the abolition of the requirement to submit to the Ministry of Foreign Affairs a tourist voucher or an application from a legal or natural person inviting them to the Republic of Uzbekistan, as well as for the issuance of visas within two working days, excluding the day of document submission — shall be approved in accordance with Appendix 1.

3. The State Center for Personalization under the Cabinet of Ministers of the Republic of Uzbekistan jointly with the Ministry of Foreign Affairs, the State Committee for Development of Tourism, the Ministry of Finance and other concerned ministries and departments shall put into operation from July 1, 2018 the system of issuing electronic entry visas.

4. To transform the State Unitary Enterprise the Center for Promotion of National Tourism Product under the State Committee of the Republic of Uzbekistan for Development of Tourism to the State Unitary Enterprise the National PR-Center under State Committee of the Republic of Uzbekistan for Development of Tourism, while entrusting it with the tasks of organizing a promotion of tourist potential of the republic.

The State Committee of the Republic of Uzbekistan for Development of Tourism at the expense of the Extra-budgetary Fund for Support of Tourist Sphere shall ensure:

in the period until March 1, 2018 — a creation of necessary material and technical base for the National PR-Center, including an acquisition of modern and high-tech surveying equipment, vehicles, including of high cross-country capability, and an allocation of necessary premises without payment of lease payments;

in the period until April 1, 2018 — a formation of creative and film crews, including with involvement of foreign specialists and an allocation of necessary funds for their maintenance and material stimulation;

on a regular basis — financing, including through outsourcing, developing scenarios and concepts of survey works, creative expeditions and trips to the regions of the republic of formed creative and film crews and activities of other creative groups, which prepare materials to promote the countryʼs tourist potential.

5. To endorse the proposal of the State Committee of the Republic of Uzbekistan for Development of Tourism, Ministry of Public Education, Ministry of Higher and Secondary Specialized Education, Youth Union of Uzbekistan, Council of Federation of Trade Unions of Uzbekistan, Womenʼs Committee of Uzbekistan, Charity Public Fund of Uzbekistan «Mahalla» and Fund for Supporting Public Activities of Veterans of Uzbekistan «Nuroniy» about realization of the Program on development of internal tourism «Oʼzbekiston boʼylab sayohat qil!» (further — Program) that provides for organization of tourist and excursion tours around the regions of the republic for:

students of educational establishments — during the holidays and weekends;

employees of organizations — on weekends, days of national holidays and holidays, especially during the low tourist season;

socially vulnerable categories of the population, pensioners, veterans of war and labor — all the year round with active use of sanatorium and resort recreation;

representatives of the older generation, young families, activists of citizensʼ gatherings, womenʼs and other public associations — during the low tourist season.

6. The State Committee of the Republic of Uzbekistan for Development of Tourism:

within a month shall submit for approval the Plan of practical measures for implementation of the Program;

within a month, jointly with the Chamber of Commerce and Industry, State Committee of the Republic of Uzbekistan for Promotion of Privatized Enterprises and Development of Competition, shall determine the mechanisms for participation in the Program of business entities providing tourism services, based upon on criteria of quality, safety and competitiveness of prices and their interaction in the framework of its implementation;

before March 1, 2018 shall place on its official website an information about the terms of participation in the Program, the mechanisms for organizing tourist and excursion programs, the list of partner organizers and the list of services they provide and other necessary data.

7. Ministry of Foreign Affairs of the Republic of Uzbekistan jointly with the concerned ministries and departments shall ensure a revision of the concluded international treaties of the Republic of Uzbekistan in accordance with the requirements of the present Decree.

8. To release:

a) legal entities whose principal activity is the organization of services of thematic parks — provided that the thematic parks are commissioned no later than 1 July 2022 — for a period of three years from the date of commissioning, shall be exempt from payment of corporate income tax, land tax and property tax, as well as turnover tax;

b) until 1 January 2024 — exemption, in accordance with the established procedure and based on lists to be approved, from payment of customs duty on the import of equipment, machinery, raw materials, components and spare parts, construction and other materials (including furniture and inventory) intended for the construction, reconstruction and equipping of thematic parks, hotels and other accommodation facilities;

v) business entities for a period up to January 1, 2022 — from the payment of customs payments (except for customs clearance fees) for imported into the Republic of Uzbekistan:

tourist class vehicles intended for a carriage of 8 or more people, including the driver;

Exemption shall be granted, in accordance with the established procedure and based on lists to be approved, from payment of customs duty on the import of equipment, mechanisms and spare parts intended for the construction, reconstruction and equipping of cable (suspended) transport systems, ski lifts, funiculars and other similar facilities and structures, as well as aerostats (hot air balloons), electric motor boats, special vehicles intended for movement on snow (HS code 8703 10), and quadricycles.

10. To establish that:

Starting from January 1, 2018, a taxable base of economic entities rendering services for a sale of tourist products and/or online booking of tourist services is reduced by the amount of expenditures directed to introduction of electronic services, including electronic payments, booking, acquiring and others, as well as specialized Internet-sites and portals offering modern types of tourist services;

operators, providers and other business entities that created free wireless Internet access zones (Wi-Fi) in public places should provide access of appropriate quality with mandatory identification of users;

a taxable base of economic entities that have established on their territory the zones of free wireless access to the Internet (Wi-Fi), including a single tax payment, is reduced by an amount of expenditures aimed at purchasing equipment and purchasing Internet traffic for deployment of a wireless access zone of corresponding quality;

operators, providers and other business entities that have created in the public places a zone of free wireless access to the Internet (Wi-Fi), have a right to install an advertising banner or stretch area of no more than 18 square meters in this zone on a free basis and without obtaining permission from the relevant state authorities in the field;

quality control of services provided in the zones of free wireless access to the Internet (Wi-Fi) is carried out by the Inspection on Control in Sphere of Communications, Informatization and Telecommunication Technologies under the Ministry for Development of Information Technologies and Communications of the Republic of Uzbekistan.

11. To agree with the proposals of the State Committee for Development of Tourism, the State Committee for Investments on opening a credit line of the Fund for Reconstruction and Development of the Republic of Uzbekistan in the amount of USD 200 million for co-financing investment projects for construction of hotels, adjacent road, engineering and communication infrastructure.

The Fund of Reconstruction and Development of the Republic of Uzbekistan within two months shall open credit lines to commercial banks for allocation of loans to business entities on the following conditions:

a term of the loan is 15 years (grace period — 5 years) for purchase of imported equipment and technologies for hotels and objects of adjacent road, engineering and communications infrastructure. The amount of credit allocated to one client at the expense of the target credit line should not exceed 50 percent of the project amount;

loans are granted on the basis of positive decisions of authorized commercial banks on the economic and financial feasibility of implementing an investment project. At the same time, amount of the loan given to one client should not exceed USD 10 million for one investment project.

12. To define the TV channel «Dunyo Boʼylab» of the National Television and Radio Company of Uzbekistan as the main information partner of the State Committee of the Republic of Uzbekistan for Development of Tourism in highlighting the ongoing activities aimed at developing domestic tourism, active types of recreation and sport tourism, preserving and using objects of cultural heritage and natural resources, including protected areas of nature.

13. The State Committee of the Republic of Uzbekistan for Development of Tourism jointly with concerned ministries and departments, the Council of Ministers of the Republic of Karakalpakstan, the regional khokimiyats and the Tashkent City within ten days shall develop and submit the draft resolutions of the President of the Republic of Uzbekistan providing for measures on development of inbound tourism and a review of the authority and structure of the State Committee of the Republic of Uzbekistan for Development of Tourism, taking into account the present Decree.

14. To amend some decrees of the President of the Republic of Uzbekistan in accordance with the Appendix No 2.

15. The State Committee of the Republic of Uzbekistan for Development of Tourism jointly with concerned ministries and departments shall submit, within two months, proposals to the Cabinet of Ministers of the Republic of Uzbekistan on amendments and additions to the legislation following from the present Decree.

Ministries and departments, within one month, shall bring their approved regulatory legal acts in compliance with the present Decree.

16. Control over the implementation of this Decree shall be assigned to the Prime Minister of the Republic of Uzbekistan — Chairman of the Coordinating Council for the Development of Public-Private Partnership and Digitalization in the fields of tourism, sports, cultural heritage, transport logistics and services A.N. Aripov, Deputy Prime Minister of the Republic of Uzbekistan S.R. Kholmuradov, and Chairman of the State Committee for Tourism Development of the Republic of Uzbekistan A.A. Abdukhakimov.

President of the Republic of Uzbekistan Sh. Mirziyoyev

Tashkent city,

February 3, 2018

№ DP-5326

ANNEX № 1 to the Decree of the President of the Republic of Uzbekistan of February 3, 2018 № DP-5326

LIST

of countries for the citizens of which a simplified procedure for issuing tourist visas is introduced

1.People's Democratic Republic of Algeria2.Antigua and Barbuda3.The Arab Republic of Egypt4.Barbados5.Belize6.Bolivarian Republic of Venezuela7.Oriental Republic of Uruguay8.Gabonese Republic10.State of Kuwait11.Grenada 12.Democratic Socialist Republic of Sri Lanka13.Dominican Republic14.Hashemite Kingdom of Jordan15.Islamic Republic of Iran16.People's Republic of China, including the Hong Kong and Macao Special Administrative Regions of the People's Republic of China17.Democratic People's Republic of Korea18.Cooperative Republic of Guyana 19.The Kingdom of Bahrain20.The Kingdom of Bhutan21.Kingdom of Cambodia22.Kingdom of Morocco24.Kingdom of Tonga25.Lao People's Democratic Republic26.Lebanese Republic 27.The Republic of Maldives28.United Mexican States29.Plurinational State of Bolivia30.The Independent State of Samoa31.People's Republic of Bangladesh32.Republic of Albania33.Republic of Angola34.Republic of Vanuatu 35.Republic of Ghana36.Republic of Guatemala37.Republic of Honduras38.Republic of India39.Republic of Cabo Verde40.Republic of Cameroon41.Republic of Kiribati42.Republic of Colombia43.The Republic of Costa Rica44.The Republic of Cote d'Ivoire45.The Republic of Cuba46.Republic of Mauritius 47.Republic of North Macedonia48.Republic of the Marshall Islands 49.Republic of Nauru50.Republic of Nicaragua51.Republic of Palau52.Republic of Panama53.Republic of Paraguay54.Republic of Peru55.Republic of Seychelles 56.Republic of Senegal57.Republic of Suriname58.Republic of Trinidad and Tobago59.Republic of Fiji60.Republic of the Philippines61.Republic of Ecuador62.Republic of El Salvador 63.Saint Vincent and the Grenadines64.Saint Lucia65.United States of America66.Solomon Islands67.Commonwealth of the Bahamas68.Commonwealth of Dominica69.Socialist Republic of Vietnam 70.Sultanate of Oman71.Republic of Tunisia72.The Federal Democratic Republic of Nepal73.Federated States of Micronesia74.Federation of Saint Kitts and Nevis 75.Republic of South Africa76.Jamaica

APPENDIX № 2 to the Decree of the President of the Republic of Uzbekistan of February 3, 2018 № DP-5326

Amendments to certain Decrees of the President of the Republic of Uzbekistan

1. In the Decree of the President of the Republic of Uzbekistan dated April 11, 2005 No. DP-3594 “On additional measures to stimulate the attraction of direct private foreign investment”:

1) the second paragraph of paragraph 2 shall be worded as follows:

“The location of these enterprises in all cities and rural settlements of the republic, with the exception of Tashkent and the Tashkent region. This territorial restriction does not apply to enterprises operating in the field of tourism

2) in the appendix, clause 21 shall be amended as follows:

"21. Tourism:

hotel services;

tourist services;

organization of theme parks (an amusement park, an ensemble of parks organized on one or several topics, providing services aimed at meeting the needs of visitors at different ages).”

2. In the Decree of the President of the Republic of Uzbekistan dated December 2, 2016 No. DP-4861 "On measures to ensure the accelerated development of the tourism industry of the Republic of Uzbekistan":

in the fourth paragraph of paragraph 4, the words "mandatory is introduced from January 1, 2018" shall be replaced by the words "voluntary is introduced from April 1, 2018";

Paragraph three of clause 12 shall be amended as follows:

“Customs payments (except for customs clearance fees) for imported equipment, machinery, raw materials, components and spare parts, construction and other materials not made in the Republic of Uzbekistan for the construction, reconstruction and equipping of hotels and other accommodation facilities according to the lists approved according to established order".