commodities and materials

Highly liquid commodities and goods are traded through Uzbek Commodity Exchange (http://www.uzex.com/). The list of such goods includeferrous and non-ferrous metals, petroleum products, cotton fiber and cotton processing products, mineral fertilizers, sugar, wheatflour, grain and many others.

Trading take place from 09:30 to 17:00 Tashkent time on week-days. Deals are arranged through the accredited brokers whose com­mission can vary from 0.1% to 1% of the deal value depending on the deal volume. Exchange transactions are conducted on deliveryagainst payment terms, both spot and forward contracts are traded.

The Exchange rules envisage advance payments by transaction participants in the amount up to 2% of the estimated value to theescrow accounts at the clearing house. These funds is a warranty of the exchange transaction participants contractual obligationsfulfillment.

Small Businesses in Public Procurement

State Public Procurement Commission has been established for efficient use of government budget funds, expanded access of the small businesses to the government procurement of goods (works, services), further facilitation of competition and transparency in public procurement,.

Public procurement procedures were enacted, according to which, the Commission establishes quotas for small businesses for certain types of goods and services . Furthermore, in public procurement bidding, small businesses are prefererred with all other equal conditions.

The Center for Promotion of the Products of Small Businesses (http://www.goszakupki.uz/) is operating under the Uzbek Republican Commodities Exchange, which arranges and conducts electronic auctions (to reduce starting price) in case of public procurement bids.

Entrepreneurs and legal entities willing to participate in the public procurement system must go through accreditation process as suppliers. To this end, following documents must be submitted to the Republican Mercantile Exchange (headquarters or any of the regional branches at the place of operations):

1.  Notarized card with the samples of signatures and seal;

2.  Application with the request of accreditation as a supplier under public procurement (using the established form);

3.  Records from the tax inspection to confirm own identity as a small business (if applicable).

You can find all relevant information at the following websites www.xarid.uz,http://www.uztender.uzwww.tenderweek.com/, as well as websites of the respective ministries, agencies, and organizations of Uzbekistan.

ENERGY RESOURCES

The fees for electricity, gas, coal, and other resources defined as the utilities are established by the Ministry of Finance of Uzbekistan.The tariffs are set based on the cost of production and gross profits from sales of services with breakdown into administrative territo­ries of Uzbekistan jointly with the Council of Ministers of Karakalpakstan, khokimiats of oblasts and Tashkent city, respective serviceproviders and Uzkommunxizmat agency. Below are the tariffs as of January 1, 2012.

Access to gas supply system

In order to obtain permit to use natural gas, the consumer submits written application to the territorial administration and estimates of the volume of natural gas to be used calculated by Uzgazloyiha Institute or its local branches. The estimates must be done with consideration of installation of the modern efficient gas consuming equipment with automated safety features, heat regulation, and high efficiency rate. The permit for the use of natural gas is issued based on the official form, which is the grounds for designing the gas supply at the newly constructed, expanded, rehabilitated, and operating social facilities as well as small and medium businesses.

At least 5 days before the relevant month, the consumers make payments for the gas used to the deposit account of the gas transportation company in the amount of at least 30% of the monthly contracted volume of gas, while the consumer makes final payment for the gas obtained until the 10th of the month after the reporting month.

According to the list (2011) of the measurement devices subject to mandatory testing approved by the Director General of Uzstandard agency according to the Article 14 of the Law on Metrology, intertesting period for the household and industrial meters of the business entities is:

[1]     Gas, cold and hot water meter - once in 2 years;

•     Electricity meter - once in 4 years.

Devices with overdue test period are considered dysfunctioning and cannot be used.

Specialized organizations with testing equipment and license of Uzstandard agency, which grants the right for the aforementioned works,conduct testing and maintenance of the meters.