Production of jewelry without license is illegal from 1 October 2017

Tashkent, Uzbekistan (UzDaily.com) -- From 1 October 2017, production of jewelry and other precious metal products by legal entities and individual entrepreneurs is carried out under a license issued by the Agency for Precious Metals under the Central Bank of Uzbekistan.

President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures for state support of the jewelry industry” 10 on August 2017.

Uzbek President determined the most important tasks and directions for further development of the jewelry industry.

The jewelry industry should significantly increase production of domestic jewelry and ensure production of highly competitive jewelry on foreign and domestic markets of highly artistic jewelry.

Manufacturers of jewelry will purchase precious metals for production according to the following scheme:

The authorized commercial banks submit applications on the forms, approved by the Central Bank, on providing for manufacturer’s need for precious metals, indicating the volume for production of jewelry;

Authorized commercial banks, based on the need of jewelry manufacturers, send an application to the Central Bank on allocation of the required volumes of precious metals;

The Central Bank, at the request of authorized commercial banks, allocates precious metals in the form of plates weighing from 100 grams, for national currency on a full prepayment basis, based on the morning fixing price of the London Stock Exchange of precious metals (in terms of net weight of precious metals);

Authorized commercial banks sell precious metals to manufacturers of jewelry without the right to resell, with a margin of no more than 1%.

The State Research and Production Enterprise “Fonon” was entrusted to ensure production of precious metal plates of appropriate weight, produced on a give-and-take basis, from precious metals, issued by the Agency for Precious Metals under the Central Bank of the Republic of Uzbekistan, from 1 October 2017.

The Ministry of Economy of Uzbekistan jointly with the Central Bank and the Ministry of Finance of the Republic of Uzbekistan was instructed to provide in appropriate balance sheets the allocation of precious metals from the reserves of the Central Bank of Uzbekistan from 1 October 2017 for sale to jewelry manufacturers.

Uzbek leader ordered, till 1 October 2017, to submit a Program of Measures for the Further Development of the Jewelry Industry for 2017-2021 to the Cabinet of Ministers.

The President also instructed the Central Bank, till 1 October 2017, to ensure creation of branches of the State Assay Chamber in the regions of the republic, which, in the established manner, carry out determination of the sample and branding of jewelry.

Scrap and products from precious metals, semiprecious and precious stones and pearls, ownerless valuables, treasures, as well as valuables handed over to the state income will be sold to Fonon for national currency on pre-payment.

Until 1 January 2020, commercial banks are exempted from paying value-added tax and mandatory contributions to state trust funds in the sale of precious metals.

Manufacturers of jewelry are exempt from excise tax and value added tax for the sale of jewelry, including for export with the targeted direction of the released funds for the reconstruction and modernization of production, as well as for replenishment of working capital.

From 1 January 2018, Uzbek President abolished the excise tax on jewelry sold in the retail trade network.

President accepted the proposal to transfer the property complex of the state enterprise "1-Zargarlik Korkhonasi" in Tashkent to the joint-stock commercial bank "Asaka" for implementation of an investment project to create modern jewelry production.

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