FEZ "Navoi"

1. Location

“Navoi” Free Economic Zone is located in Karmana district, Navoi Region, Republic of Uzbekistan. Navoi province is in the centre of Uzbekistan. The total area of the province is 110.8 thousand square kilometers or 24.8% of total area of the country. Navoi FEZ makes up 564 thousand hectares.The province borders with the Republic of Kazakhstan in the north and with Jizzakh province in the east, with the Republic of Karakalpakstan in the west, with Samarkand, Bukhara and Kashkadarya provinces in the south. The province includes 8 districts: Kanimekh, Kyzyltepa, Navbakhor, Karmana, Nurata, Tamdyn, Uchkuduk, Khatyrcha; and 6 cities: Zarafshan, Karmana, Kyzyltepa, Navoi, Nurata and Uchkuduk. There are also 8 urban-type villages and 53 villages. The administrative center of the province is Navoi city. City is located in the Zarafshan river valley and was built in the 1960’s. Navoi is in between the two ancient cities of Uzbekistan: in the west - the city of Bukhara (100 km) in the East - Samarkand (175 km).  Kyzylkum plateau is in the north-western part of the province. 

2. Years of operation

FEZ was established in December 2008 for a 30-year period with the possibility of a further extension. 39 projects worth of $251.4 million are planned to be implemented in Navoi FEZ throughout  2017-2019. There are 18 JVs totalling 124 mln. USD with South Korea, Great Britain, Italy, China, UAE, India, Singapore  and Russia. The enterprises produce more than 100 types of products for export. The proximity of Navoi International Airport is an additional convenience for foreign investors.

3. Management

Directorate of the Navoi FEZ is a commercial organization in the form of a State Unitary Enterprise which carries out operational management activities of Navoi FEZ.

 Reasons to invest in Navoi FEZ?

1. Preferential tax and customs regime.
2. Modern infrastructure and business services.
3. Advantages of multimodal transport and logistics hub.
4. Advantageous geographic location. 
5. Free access to the market of CIS counties.

 

4. Investors list

1) “Navoi Hunan Pulp” Joint Venture was established in 2010 between JSC “Navoiazot” and Chinese company “Hunan Aloft Imp.&Exp. Co.Ltd.”. The JV produces hygienic products and baby diapers;

2) “Telecom Innovations” Joint Venture was established in 2010 among JSC “Uzbektelecom”, “TelmaxElektronix” LLC and “ZTE International Ltd.” (China), “Servetechno PTE Ltd.” (Singapore).  The JV produces TV tuners, ADSL modems and DSLAM ports;

3) “Hayat Power Cable Systems” Joint Venture was established in 2012 among  OJSC “AGMK”, JV “Uzcable” and Chinese company “Gulf Cable Trading Company”. The JV produces high-voltage cables.

4) “Olive Telecom” Joint Venture was established in 2013 between “Olive Telecommunication Ltd.” and JSC “Uzbektelecom”.  It produces stationary and mobile telephones as well as tablet and  PCs.

5) “CFM ProEnergies” Joint Venture was established in 2011 between SJSC “Uzprommashimpex” and Singapore company “Cheong FattMetall Factory PTE Ltd.”.  It produces power-saving LED light bulbs.

6) “KO-UNG Cylinder” Joint Venture was established in 2011 between NHC “Uzbekneftegas” and South Korean company “KorUz Cylinder Investment Co.Ltd”. It produces gas cylinders.

7) “Agrofresh” Joint Venture was established in 2010 between  SJSC “Markazsanoatexport” and “Kefayat General Trading Co. Ltd.” (UAE).  It constructs modern refrigerating chambers with the controlled atmosphere (CA) to store 3 thousand tons of vegetables and fruits. . 

8) “Ariston Thermo-UTG” Joint Venture was established in 2013 between JSC “Uztransgas” and Italian company “Ariston international srl” to produce  heating and water heating boilers. 

9) “Navoi Beauty Cosmetics” Joint Venture was established in 2010 between  JSC “Navoiazot” and South Korean company “DK Cosmetics” to produce cosmetics. 

 10) “Uzavtosanoat – Landi Renzo” Joint Venture was established in 2014 between JSC “Uzavtosanoat” and Italian company “Landi Renzo S.p.A.” to produce engine space equipment .

11) “O’zMinda” Joint Venture was established in 2010 between JSC “Uzavtosanoat” and Indian company “Minda Capital Ltd.” to produce components for vehicles;

12) “O’zErae Alternator” Joint Venture was established in 2010 between JSC “Uzavtosanoat” and the South Korean company “EraeCs Limited”, to produce generators and compressors for vehicles; 

 13) Chinese company Hebei New Silk Road Import and Export Trade is producing glass (coloured, multi-glaze and decorated 1,000 tonnes/year).  Along with glass products, the company aims to establish the production of wood products in 2017-19. It is not a BRI project. 

5. Operating businesses

• Business entities registered in "Navoi" FEZ are exempt from paying :
• Land tax
• Property tax
• Profit (income) tax
• Unified tax (for SMEs)
• Social infrastructure development tax
• Obligatory payments to the Republican Road Fund and Republican Fund of Elementary and Secondary Education.
• Tax exemptions are granted from 3 to 10 years depending on the amount of investments made:

 from 300 thousand to 3 million USD - up to 3 years;

 from 3 million to  5 million USD - up to 5 years; 

 from 5 million to 10 million USD- up to 7 years;

 more than 10 mln. USD - for 5 consecutive years profit tax and unified tax are paid with 50% reduction.

 

 The participants of FEZ "Navoi" are exempt from customs duties(customs clearance/registration fee is excluded):

 

•  Land tax, Property tax, Profit (income) tax, Unified tax (for SMEs)Social infrastructure development tax, Obligatory payments to the Republican Road Fund and Republican Fund of Elementary and Secondary Education.
•  imported raw materials and component parts that are  imported  for  production needs, as well as construction materials not produced in Uzbekistan and imported within the framework of the implementation of projects, lists approved by the Cabinet of Ministers of  the Republic of Uzbekistan.
•  From customs duties (customs clearance/registration fee is excluded) for equipment, raw materials and component parts for goods aimed for local market for the grace period.
•  For the whole period of functioning enterprises are exempt from customs duties for imported equipment, raw materials and production components for goods aimed for export.

Business enterprises in FEZ «Navoi» are allowed to:

• Make calculations and payments in foreign currency within FEZ «Navoi»
• Pay in foreign currency for supply of goods, work and services  performed by the business entities–residents of the Republic of  Uzbekistan
• Use convenient payment forms for export and import of goods.

6. BRI projects

 1) “Navoi Hunan Pulp” Joint Venture;

 2) “Telecom Innovations” Joint Venture;

3) “Hayat Power Cable Systems” Joint Venture; 

4) China «Hebei New Silk Road Import and Export Trade»

Official website: https://www.feznavoi.uz/en