Ministry of education tashkent financial institute

10-picture¹⁷
Export volume of free economic zone “Jizzakh

The table shows the extent to which products produced in the economic zone were exported. Exports, which stood at 4 million in 2017, changed dramatically a year later to about 13 million. It is self-evident that this is due to changes in production volumes.

3.Development of free economic zones in Uzbekistan prospects
Today, there are 14 FEZs in the Republic of Uzbekistan. In the FEZ "Navoi", Angren, Jizzakh, Urgut, Gijduvan, Kokand and Khazarasp implemented 62 projects with a total cost of 486 million US dollars, where more than 4.6 thousand jobs were created.
Uzbekistan has recently adopted a number of legal acts on the development legal and organizational basis for improving the activities of the FEZ. However, free economic zones do not give the expected result in attracting investments, development entrepreneurship and business environment in these zones.
In the Republic of Uzbekistan, the management of the activities of the FEZ is carried out Administrative Council and Directorate of FEZ. State Committee of the Republic of Uzbekistan on investments is considered the working body of the FEZ Administrative Council. The Administrative Council of the FEZ carries out coordination and state regulation of FEZ activity.Administrative Council:
-selects investment projects for implementation on the territory of the FEZ,considers applications for obtaining the status of a FEZ participant and business plans of projects, determines main conditions of investment agreements;
-makes decisions on the placement of economic entities corresponding to established criteria, in the territories of the FEZ, granting them the status of a participant in the FEZ;
-considers the master plan for the development of the FEZ and approves construction projects engineering, communication and transport infrastructure of FEZs financed by centralized investments, etc.
However, given that the members of the Administrative Council are representatives various ministries, they hinder the timely consideration of investment applications, since each member of the Administrative Council needs a certain amount of time to consideration of investment applications. This process leads to untimely consideration of investment applications. In addition, the Administrative Council does not carry out its activities on a permanent basis and does not contact investors, which, in turn, leads to not owning full information about investors.The FEZ Directorate is considered to be the body directly working with foreign investors and has complete information about investors. The FEZ Directorate registers FEZ participants, maintains their register, issues relevant certificates of registration on the territory of the FEZ, concludes with investors, selected in the prescribed manner, agreements on investment in the territory of the FEZ, search and attraction of foreign and domestic investors for the implementation of investment projects in the FEZ territories.
Moreover, the FEZ Directorate assists FEZ participants in solving the following issues: providing the necessary infrastructure (electricity, gas and water supply, sewerage, access roads, etc.) for the timely implementation of investment projects,
commissioning and functioning of organizations on the territory of the SEZ, provision of services FEZ participants, including by representing their interests in state bodies, providing support for the sale of goods for export and the domestic market.
In developed countries, FEZ activities are managed by a single body. In China, the Guangdong Provincial Committee for FEZ management, and in South Korea, the FEZ Committee.In particular, DP World(Dubai Port World) is considered one of the world's largest port operators of the UAE developers, owns 60 operating and 11 under construction terminals in 31 countries of the world. This company has carried out on a contract basis for many years the management of Jebel AliPort, which is considered one of the largest free economic zones in the world managed by another company. To date, the Republic of Kazakhstan is also conducting negotiations with DP World on the management of FEZ "Seaport Aktau".
London & Regional Properties (LRP) is one of the largest private companies in Europe,investing in real estate and development (development). The company has been operating since 1987 and it represented in the markets of 12 countries, including England, Germany, Russia, Poland, South Africa, Panama, etc. The company's investment portfolio exceeds 8.5 billion euros. To date, London&Regional Properties (LRP) manages one of Panama's free economic zones "Panama Pacifico" and invested 705 million US dollars for the development of this zone. Managers of foreign companies, based on their experience, can attract
partner investors, highly qualified specialists in the production of goods, export and domestic market, develop the infrastructure of the FEZ, and create in the FEZ
favorable investment environment. Based on the above, as an experiment it is proposed to transfer the management rights of the Directorates of some FEZs located on the territory Republic of Uzbekistan, managers of the largest foreign management companies, specialized in this area.
In the development of the FEZ, the system of legal regulation is of no small importance. It's about on the creation on the territory of the FEZ, unlike the rest of the state, a separate legal a system based on the laws of states with more developed jurisdictions. Important at the same time to create a certain complex system consisting of foreign legislation, institutions that ensure the strict implementation of legislative norms in order to full protection of the rights and interests of foreign investors. Foreign experience shows that a number of jurisdictions operate on the principle two systems in one country. This means that a certain island in the form of a free economic zone is being created in the country, where legal relations are completely subordinated to certain norms of foreign legislation (commercial law). However, the implementation of certain legal provisions provided by foreign courts. This approach ensures the autonomy of the territory FEZ and has a positive effect on attracting foreign investors to the FEZ, who are extremely it is important to guarantee their smooth functioning.
Hong Kong's economic success is driven by its commitment to the "Two Systems in one country”, based on English law, which led to a significant development countries. Free Trade Zone Panama adheres to the common practice in most countries world of legislation based on the English scheme and provides great opportunities for conducting and developing international business. This trend is also observed in Central Asia.
Former President of the Republic of Kazakhstan N. Nazarbayev on May 19, 2015 signed the Decree "On the establishment of an international financial center "Astana" (AIFC)", based on the principles of English law, using preferential tax regimes and independent financial courts. It is advisable that this center will become the core of the financial infrastructure of Kazakhstan, a further financial hub for everything Central Asian region. The main activities of the AIFC are the development of the capital market, management wealth management, wealth management, Islamic finance, new financial technologies. On the territory of the AIFC, there is a special legal regime based on the Common Law (common law), which regulates the relationship between AIFC participants and stakeholders, as well as aimed at developing the financial market.AIFC law is guided by the principles, norms and precedents of the law of England and Wales, in including the standards of the world's leading financial centers. On the territory of the AIFC, justice, based on English law, will exercise separate from the judiciary Republic of Kazakhstan, an independent AIFC Court with the involvement of judges of international level.
Currently, the legal regime of the FEZ of the Republic of Uzbekistan is limited providing only tax and customs preferences, which hinder the formation healthy investment environment in the FEZ, and lead to the loss of investors' interests. In this regard, there is a need to establish a separate legal regime for the principle of "two systems in one country", based on English law, which has flexibility and adaptability to meet changing needs modern business, ensure isolation from the national judicial system and the impact of the law enforcement agencies of the country, as well as the impact of daily regulatory legal acts that are not directly related to the regulation of the activities of the FEZ. Application of a new legal regime based on English law in the FEZ of the Republic Uzbekistan will create a favorable investment climate, a simplified systemregistration of companies in the FEZ, to ensure political and economic stability in FEZ territories, a wide network of investment guarantees and free trade agreements. This will give foreign investors the confidence to invest huge amounts of capital in FEZs. Republic of Uzbekistan. In addition, this legal regime contributes to a significant simplification of the procedure registration of enterprises in the FEZ. To date, according to the international rating "Doing business", Uzbekistan according to the criterion "Creating an enterprise" takes 25th place. In 2018- 2019, a significant increase in this rating is expected, suggesting Uzbekistan's entry into top ten.
The proposed mode will allow you to establish a more simplified procedure registration of enterprises in the FEZ, stimulating the development of the activities of international banks, insurance companies, international financial companies, international investment funds, investment brokerage, innovative corporate governance and management, audit and accounting services, international standard for the protection of rights intellectual property, as well as a constant influx of highly skilled and multilingual foreign experts. In this regard, as an experiment, it is proposed to gradually install a separate the legal regime in the territories of the FEZ "Navoi", "Jizzakh" and "Angren", since these zones have been operating for many years. However, during this period, no their impact on the development of the country's economy. The most favorable FEZ treatment is also a major factor in attracting attention and interest of foreign states in the FEZ. There are countries that have a huge experience in the creation and effective regulation of the activities of the FEZ.
Taking into account the fact that Singapore, the United Arab Emirates, China, South Korea, Canada, Australia have it is advisable to conclude advanced experience in the creation and development of free economic zones with these countries lease agreement for the territory of FEZ "Navoi", "Jizzakh" and "Angren". FEZ data is provided based on long-term international bilateral or multilateral lease agreements between countries with experience in creating and improving the activities of FEZs. At this agreement will provide for all the conditions for the application of a separate legal regime on FEZ territory (applicable law, business practices, visa procedures, etc.).At the same time, it should be noted that the well-known FEZs of Dubai, China, Korea, Singapore formed their brand (image) as a favorable international investment oasis, through an advertising campaign. FEZ advertising is considered a major factor attracting foreign capital, creating a powerful environment for the implementation of international business. Therefore, many free economic zones of the world annually allocate huge amounts of money for advertising.
It should be noted that today the FEZ of the Republic of Uzbekistan at the international level little known. There are no official websites on the global Internet (website) some FEZs of Uzbekistan. On TV channels with international coverage, no commercials or information about the FEZ of Uzbekistan. This is considered a disadvantage of attracting investment in the FEZ. In this regard, it is considered necessary to carry out large-scale advertising campaigns of FEZ of the Republic of Uzbekistan. Therefore, it is proposed to organize screenings of videos, documentaries, interviews with specialists in the field of FEZ, short advertisements and broadcasts on TV channels Euronews, BBC, CNN, covered at the international level, development of official websites (website) of the FEZ, as well as holding international conferences, round tables and seminars.
In addition, it is advisable to create an international working environment in the FEZ of the Republic Uzbekistan, and it is also proposed to establish the procedure for conducting office work in English language. There are cities in the world where the economy of the territory is based on free market and trade relations, low taxation and non-intervention of states in the economy of the country. These cities are considered international financial centers. According to the latest study by GFCI (Global Financial Centers Inde), the largest London, New York, Singapore, Hong Kong are recognized as international financial centers,Tokyo, Zurich, etc.
London ranks first as an international financial center, where banks and specialized financial institutions that carry out international currency, credit and financial transactions. They are characterized by general conditions, the presence which allows the city to position itself as a major participant in international financial markets for international transactions with assets, as well as the space where financial institutions of various jurisdictions converge to the implementation of financial international mediation, minimal intervention or complete non-interference of the state in the legal and financial activities of business.
Based on the foregoing, it is proposed to create an international financial center in Tashkent "Tashkent city" (International financial center). The center will operate
a special legal regime based on common law governing the relationship of participants "Tashkent city" and stakeholders aimed at the development of the financial market and corporate asset management. To do this, it is necessary to create a unified jurisdiction, separate from the judiciary systems of the state, as well as the influence of state and law enforcement agencies. Organizations created on the territory of "Tashkent city" will be exempted from land tax and property tax for up to 50 years, a simplified procedure for their registration and accounting, simplified labor regime, free rental of offices "Tashkent city" in the first two years.
Currently, in the FEZ of the Republic of Uzbekistan, investors are provided with tax benefits for a period of 3 to 10 years, depending on the amount of investment. Minimum the volume of investments made is 300 thousand US dollars in equivalent.
The next disadvantage of the taxation procedure in the FEZ is the calculation period tax incentives. As a rule, the start of the tax benefits period is calculated from the date obtaining a certificate of registration of a FEZ participant issued by the FEZ Directorate. As many free economic zones in the country have been created recently, the infrastructure is only developing, and taking into account that
fact that many investors take time to set up production, it is advisable to change the term for calculating the effect of tax benefits, determining the calculation from the date of commencement of production goods by FEZ participants. The current situation does not currently allow investors make full use of the tax benefits granted to them. In the process of selecting investment projects for placement on the territory of the FEZ and registration of FEZ participants, the investor submits to the Directorate a completed an investment application for the location of production in the territory of the FEZ with an attachment to her:
-information on the state registration of a legal entity (investor) or another document confirming the activity of this investor;
-business plan of the proposed investment project;
-information confirming the experience of the investor in the relevant field and implementation of similar investment projects (if any);
-information on the financial and economic activities of the investor for the last three years.
In the absence of experience in the relevant field and in the implementation of similar investment projects, the investor submits to the Directorate information on the implementation of the investment project by technology partners. If, at the time of filing the investment application, the investor:
-carries out business activities from 1 to 3 years, the investor submits to the Directorate information on financial and economic activities for the actual time of its activity;
-did not carry out financial and economic activities or carried out it for less than a year,
-the investor submits to the Directorate information on financial and economic activities less than one founder investor.
In addition, the existence of a requirement for the translation of all relevant attached documents by the investor into the state or Russian language is considered difficult the registration process. This leads to unnecessary costs of money and time of investors. Given that English is considered the main international language, it is advisable to cancel the requirement to translate the submitted documents into the state or russian language, if these documents are in English. Based on the development trend of electronic document management, it is proposed to draw up
investment agreements in electronic form. This proposal is largely will facilitate and speed up the process of drawing up transactions between the FEZ Directorate and foreign investors located outside the Republic of Uzbekistan.
One of the most problematic issues in the FEZ is the procedure for obtaining land plot. Land plots on the territory of the FEZ are under the direct control of governments of the regions, and are provided by the governors of the respective regions to participants in the FEZ based on the decision of the FEZ Administrative Council.
Moreover, an important part of the development of investment and entrepreneurial activities on the territory of the FEZ, is the creation of banks, insurance companies and consulting centers. Providing preferential loans to business entities will enable introduce new technologies in the FEZ to increase production and develop foreign economic activities of the country. Property insurance, business risk insurance will serve reduce losses, damages and enhance investor confidence. In view of the foregoing, it is advisable to create a network of banks on the territory of the FEZ,
insurance companies, as well as consulting centers on preferential terms. This process exists in the practice of free economic zones in many countries, including South Korea, United Arab Emirates, China and Singapore.
Currently, reforms are being carried out in Uzbekistan to radically improve systems of work with appeals of individuals and legal entities, the introduction of new effective mechanisms and methods for establishing an open dialogue with the population, as well as studying the opinions for the development of all sectors. In turn, the results of the ongoing reforms will serve the interests of the people.