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Economy 04/03/2025 Uzbekistan to abolish exclusive rights of several companies starting from 1 April

Uzbekistan to abolish exclusive rights of several companies starting from 1 April

Tashkent, Uzbekistan (UzDaily.com) — On 28 February, President Shavkat Mirziyoyev of Uzbekistan signed a decree aimed at fostering competition and enhancing the role of the private sector in the country’s economy.

According to the document, from 1 April, several organizations will lose their exclusive rights (monopolies). Specifically, UzbekEkspertiza JSC will no longer have the sole right to issue certificates for property imported by enterprises with foreign investments for production purposes.

The design institute "UzEngineering," which will be up for sale in July 2024, will also no longer have the exclusive right to develop pre-project and project documentation for investment projects.

Additionally, the "National PR Center," which previously handled advertising and reporting for foreign companies and media promoting tourism in Uzbekistan, will lose its monopoly status.

"Sag agro MTP" LLC will no longer be the exclusive service provider for mechanization to walnut producers, and the "Uzbek Institute of Standards" will lose its exclusive right to translate national standards into other languages for contractual purposes.

Functions related to verifying the compliance of tourist facilities and operators with established requirements will now be transferred to the Tourism Committee. The Committee will oversee tour operators, hotels, ski slopes, and beaches, as well as the standardization of certified services. Previously, these tasks were performed by the "Tourism Certification Center."

From 1 April, exclusive rights for companies will only be granted based on laws, decrees, or presidential resolutions, and their duration must not exceed three years. These rights can only be granted in exceptional cases, such as for protecting the constitutional order, public health, defense, national security, public order, or to prevent or mitigate the effects of natural disasters, catastrophes, and epidemics.

Companies included in the register of organizations with exclusive rights must not violate consumer rights, restrict the ability to acquire goods in necessary quantities and of proper quality, apply discriminatory conditions in sales or purchases, or unjustifiably refuse to sign contracts when necessary resources are available. Charging above the regulated price for state-regulated goods or for unprovided services is prohibited.

Starting in 2025, government agencies will be required to submit proposals by April 1 each year to the Competition Committee regarding the need to maintain or abolish exclusive rights for companies in the register. The Committee, in collaboration with other agencies, will review these proposals by 1 May and submit final recommendations to the Cabinet of Ministers by 1 June.

By 1 April 2025, the Competition Committee will conduct an inventory of existing legislation regulating the granting of exclusive rights and publish the register of such rights in the media.

As previously announced in the presidential decree of 3 June, starting from 1 January 2025, the following monopolies will be abolished:

The monopoly of "Uzmetkombinat" JSC on the collection and purchase of scrap metal and waste from ferrous metals in Uzbekistan;

The exclusive right of "Uzvtorcvetmet" JSC for the collection and export of scrap metal and waste from non-ferrous metals;

The privileged position of "Uztrade" JSC allowing it to export food flour, wheat, and products from small businesses and private entrepreneurs without providing a bank guarantee or insurance policy for export contracts against political and commercial risks under consignment terms;

The status of "Uzkhimimpeks" LLC as the sole agent for the export of chemical products from "Uzkhimposanot" enterprises and the import of equipment, spare parts, raw materials, and materials for their production needs.

Additionally, starting from 1 July 2026, "UzGasTrade" JSC will lose its status as the sole exporter and centralized operator for the import of natural gas, and "Uzenergosotish" JSC will lose its exclusive right for the centralized export and import of electricity.

Since October 2023, Uzbekistan has been maintaining a register of companies with exclusive rights. The Committee for Competition Development is responsible for overseeing this register and ensuring compliance with non-discriminatory conditions.

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