Совершенствование правового регулирования предпринимательской деятельности в свободных экономических зон

Аннотация

The actuality and relevance of the dissertation theme. In recent years, the increase of tendency of creation of free economic zones, further development of external trade and investment relations in free economic zones, massive influx of direct investments and the establishment of hi-tech with new energy, as well as the increase in rate of competitive and export-based commodities cause necessity of the development and legal regulation on entrepreneurial activity in those areas. Nowadays, more than 4300 free economic zones arc being operated worldwide1. According to the analysis, in the pratise of the developed counties (USA, China, South Korea, UAE and others) the implementation of innovation the activity of free economic zones is day by day increasing. From that point of view with the aim of providing with more facilitation the participants of free economic zones the further simplification of administrative and licensing procedures, development of business activity, increase the investment attractiveness and further development of mechanism of protection the rights and lawfull interest of investors have vital importance. Based on the trend «....creation of new and increasing the efficiency of existing free economic zones, technoparks, small industrial zones» in the Strategy of Action on five priority directions of development of the Republic of Uzbekistan for 2017-2021, approved by the Decree of the President of the Republic of Uzbekistan dated on 7 February, 2017 №UP-4947 put the task on creation of more opportunities for investment in the free economic zones arc operating in our country, paying special attention to stimulate foreign trade and entrepreneurial activity in these areas and posses worthy place in the world market. The most notably, the announcement of the year 2018 by the President of the Republic of Uzbekistan «The year of support of effective business, innovative ideas and technologies» gives more importance to this thesis. This dissertation in serve a certain extent to accomplish the tasks arc provided in the law of the Republic of Uzbekistan «On free economic zones» (1996), Decree of the President of the Prcsdinct of the Republic of Uzbekistan «On additional measures to activate and expand the activities of free economic zones» (2016), Decree of the President of the Republic of Uzbekistan «On the establishment of free economic zones «Urgut», «Gijduvan», «Kukand», «Khazarasp» (2017), Resoluton of Cabinet of Ministers of the Republic of Uzbekistan «On measures on the organization of the activities of free economic zones» (2017), Decree of the President of the Republic of Uzbekistan «On the creation of free economic zones «Nukus-farm», «Zomin-farm», «Kosonsoy-farm», «Syrdaryo-farm», «Boysun-farm», «Bustonlik-farm» and «Parkent-farm» (2017), Resolution of the President of the Republic of Uzbekistan «On additional measures to improve the activity of free economic zones and small industrial zones» (2017), Resolution of the Cabinet of Ministers of the Republic of Uzbekistan «On measures to implement the Resolution of the President of the Republic of Uzbekistan from October 25, 2017 №PP-3356 «On additional measures to improve the effectiveness of the activity of free economic zones and small industrial zones» (2018). The aim of the research is the development of theoretical and practical proposals and recommendations and scientific conclusions on improvement of legal regulation of business activity in free economic zones of the Republic of Uzbekistan. Scientific novelty of the research involves followings: It is proved the proposal about the directorate of free economic zones on the decisions of the relevant administrative councils of free economic zones and small industrial zones and developed master plans for free economic zones accomplish the placement the approved investment projects and organize issuing all necessary permits for connection to the networks of the engineering and communication infrastructure in the directorate of free economic zones on the principle of «one window». It is proved the proposal to exempt the Directorate of FEZ «Urgut», FEZ «Gizhduvan», FEZ «Kokand» and FEZ «Khazarasp» from taxes and mandatory deductions to state trust funds for the entire period of free economic zones functioning. It is proved the proposals that the Administrtive council make a desion on the selection and placement of investment projects in the free economic zones and small industrial zones. it proved the propasol on making the decisions on the placement of economic entities realvent established criteria on the territory of the FEZ and SIZ, with the allocation of land or buildings and structures in the disposal of the administrative council, as well as granting them the status of a participant in the FEZ and SIZ; Conclusion As a result of research and analysis on the theme «The development of legal regulation of entrepreneurial activity in free economic zones of the Republic of Uzbekistan» the following proposals and recommendations were developed: 1. As an optimal regime of business activity it has been developed the following scientific and doctrinal definition to the free economic zone. Free economic zones - special separated area with legal regime (facilities, preferences and incentives) established in the economically and geographically convenient territory of the state and develop the economy of the country and providing the integration of state into the world economy as well as it is accomplished various kinds of social-legal relations arc complicated with foreign element. 2. The enterprises founded by the foreign and domestic investors arc operating as the participant of free economic zones. With the aim of much clarification of legal status of participants of free economic zones it has been developed the theoretical conception of participants of free economical areas. According to this the participants of free economic zones arc subjects of entrepreneurial activity registered to accomplish the business activity in the territory of free economic zones and included by the Directorate to register of participants of free economic zones. 3. The entrepreneurial activity in the free economic zone - is considered as the activity directed to receive income (profit) based on risks within the territory of free economic zones, production and sale of goods arc established in the investment transaction, which carried out by participants of the business activity registered in accordance with the established procedure for carrying out entrepreneurial activities in the free economic zone 4. The legal regime of business activity in free economic zones - complex of rules including rights and obligations, preferences as well as authorities established in the legal acts about accomplishing the entrepreneurial activity in the free economic zones, the status of participants of FEZ and certain position of properties. The tax regime of free economic zone - is the tax preferences including special rules to accomplish effectively of entrepreneurial activity in the territory of free economic zones. The custom regime of free economic zone - is the custom preferences including special rules for import and export of property to manufacture of goods and accomplish entrepreneurial activity in the territory of free economic zones. 5. It has been developed the draft «On amendments to the Law of the Republic of Uzbekistan «On free economic zones». It has been proved to state article 1 of Law as following way. Free economic zone - is a specially designated territory with clear defined administrative boundaries and special legal regime that is created to attract domestic and foreign capital, advanced technology and managerial experience for accelerated socio-economic development of the zone. 6. It is proved to add the item 4 of article 4 of Law «On free economic zones»: Early termination of existence of a free economic zone shall be allowed only when: it is caused by the necessity to protect the life and health of people, protect nature and cultural values, provide the defense of the country and security of the state; no single legal entity or individual entrepreneur is registered as a participant of the free economic zone within three years from the date of the establishment of a free economic zone; no single activity is provided in the investment agreement has been conducted by the participant of free economic zone within three years from the date of the establishment of a free economic zone; 7. Because of not established all kinds of free economic zones in the law «On free economic zones» of the Republic of Uzbekistan, it has been put forward to state article 5 in the following way: In the Republic of Uzbekistan may created the following free economic zones: Free trade zones, free industrial zones, free scientific-technical zones, free touristic zones, single factory free economic zones, complex free economic zones. 8. In connection with the necessity to elucidate widely the status of Administrative council of FEZ (one of the management organ of free economic zones) it is proved to state article 21 in the following way: The Administrative Council of the free economic zone is the state body responsible for the coordination and state management of the free economic zone established by the Cabinet of Ministers of the Republic of Uzbekistan. 9. In connection with the necessary to elucidate widely the status of Directorate of FEZ (one of the management organ of free economic zones) it is proved to state article 24 in the following way: The Directorate of free economic zones (hereinafter referred to as «the Directorate») - is a legal entity in the form of a state unitary enterprise, established for the operational management of the free economic zones. 10. It has been scientifically proved to add new chapter «Legal status of participants of free economic zones» to the Law of the Republic of Uzbekistan «On free economic zones» and scientifically based to add norm as «Participants of free economic zone»: The participant of free economic zones - subjects of entrepreneurial activity registered in the free economic zone in accordance with the established procedure and included by the Directorate of free economic zones to the registration book of participants of FEZ. 11. Because of not established the conditions of termination of legal status of participants of free economic zones it is proved to amend new article «the termination of legal status of participants of free economic zone» «Legal entities and individuals are accomplishing an entrepreneurial activity in the free economic zone shall lose the status of a participant of free economic zone in the following cases: when the status of the free economic zone is terminated; termination the activity of legal entities or individuals accomplishing the business activity in the territory of free economic zone; reorganization (merger, acquisition, division, separation, change) of a legal entity; at the request of a member of the Free Economic Zone; Failure or not improper fulfillment of the terms provided in the investment agreement in the free economic zone 12. It is scientifically analyzed to transfer the authority on consideration of investment projects of Administrative council to the Directorate of free economic zones of free economic zones. In addition, with the aim of further improvement of management of the FEZ, it is necessary to provide the management of some free economic zones of the Republic of Uzbekistan to the managers from foreign companies having vast experience in the management of FEZ and made significant contribution to improve the FEZ in many foreign countries. 13. Currently, the legal regime of the FEZ of the Republic of Uzbekistan is limited to granting only tax and customs preferences that do not allow the formation of a healthy investment environment in the FEZ territory and leads to a loss of the interests of investors. In this regard, there is a need to establish a separate legal regime based on the principle of «two systems in one country», based on English law, which has the flexibility and adaptability to meet the changing needs of modem business, ensure isolation from the national judicial system and the impact of law enforcement agencies of the country, and the impact of everyday regulatory acts that do not have a direct relationship to the regulation of FEZ activities. In this regard, as an experiment, it is put forward to establish «special legal regime» in the territories of the free economic zone «Navoi», «Djizak» and «Angren», as these zones have been operating for many years. On the assumption that the most favorable regime of FEZ is also the main factor of attraction of attention and interest of foreign states to FEZ it has been scientifically based to conclude a «lease agreement» to manage of free economic zone «Navoi», «Djizak» and «Angrcn.with countries Singapore, UAE, China, South Korea, Canada, Australia. 14. At the same time, it should be noted that the FEZ of Dubai, China, Korea, and Singapore formed their brand (image) as a favorable international investment oasis through the implementation of an advertising campaign. With the aim of organize a large-scale advertising campaign about FEZ of the Republic of Uzbekistan and increase the volume of flowing investment it has been proved the necessity to advertise free economic zones operating in our country in the leading mass media of the world as Euronews, BBC, CNN. 15. At present, in the FEZ of the Republic of Uzbekistan, investors arc granted tax privileges for a period of 3 to 10 years, depending on the volume of investments made to the free zone. The minimum amount of investments to be made is 300 thousand US dollars in equivalent. However, taking into account the current situation of the development of entrepreneurship and the country’s market infrastructure, this minimum amount of applying investment in the rate of 300,000 USD due to its importance is very high for local investors that arc considered as an obstacle to invest to free areas by domestic investors. In order to increase the flow of domestic investment, increase of activation local investors and create a favorable investment climate in the free economic zones of the Republic of Uzbekistan, it is advisable to reduce the minimum volume of investments in the FEZ from 300.000 USD to USD 100,000 in equivalent. The next disadvantage of the taxation order in the FEZ is the period for calculating tax benefits. As a rule, the beginning of the validity period of tax benefits is calculated from the date of receipt of the certificate of registration of the FEZ participant issued by the FEZ Directorate. Since many FEZs in the country were created recently and the infrastructure is only developing, as well as taking into account the fact that many investors need appropriate time to set up their production. With the aim of protection the rights and lawful interests of investors and granting them wide facilitation it has been scientifically proved to change the period for calculating the effect of tax benefits by determining the calculation from the date of the start of the production of goods by the SEZ participants. 16. In the process of selection of investment projects for placement on the territory of FEZ and registration of FEZ participants, the investor submits to the Directorate a completed investment application for the location of production in the territory of the FEZ with an annex to it: information on the availability of state registration of a legal entity (investor) or other document confirming the activity of this investor; business plan of the proposed investment project; information confirming the existence of the investor's experience in the relevant sphere and / or the implementation of similar investment projects (if any); information on 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 technology partners involved in the implementation of the investment project. If at the time of filing an investment application the investor: carries out economic activities from 1 to 3 years, the investor submits to the Directorate information on financial and economic activities for the actual time of their activities; 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 the financial and economic activities of at least one founder of the investor. Given that entrepreneurial activity is based on risk, the existence of experience in a particular sphere docs not matter and docs not guarantee achievement of success in production, organization of the business as a whole. On this basis, the above requirements arc considered inadequate to the requirements of the time and creating obstacles for attracting a large flow of investors. It is proved to cancel abovementioned requirements. In addition, the availability of the requirement to transfer all relevant documents attached by the investor to the state or Russian language is considered a difficult registration process. In addition, the availability of the requirement to transfer all relevant documents attached by the investor to the state or Russian language is considered a difficult registration process. This leads to unnecessary costs of money and investor time. Since English is considered to be the main international language, it is scientifically based to cancel the requirement to translate the provided documents into the state or Russian language, if these documents arc presented in English. 17. One of the most problematic issues in the FEZ is the procedure for obtaining a land plot. The land plots on the territory of the FEZ arc under the direct control of the regional khokimiyats and arc provided by the khokims of the relevant regions to the FEZ participants on the basis of the decision of the Administrative Council of FEZ. Taking into account the need to further reduce the administrative influence on the economic sectors and expand the market management mechanisms envisaged as one of the priority direction of the Concept of Administrative Reform, the right to provide land plots allocated for the FEZ enterprises should grant to the Directorate of FEZ. 18. In order to effectively operate of free economic zones, the necessity of establishment of the activities of banks, insurance companies and consulting centers of foreign countries has been proved. It was also scientifically based the development of social infrastructure around free economic zones, such as the creation of comfortable accommodation, healthcare, preschool educational establishments, shopping facilities, leisure and recreational facilities, and physical education and healthcare facilities for free economic zones participants. 19. Currently, in Uzbekistan it is carrying out reforms aimed at completely improvement the system of work with the appeals of individuals and legal entities, introduction of new effective mechanisms and methods for establishing an open dialogue with the population, as well as studying the opinion of the population on the development of all sectors. In this regard, it is put forward the proposal about necessary to study the opinions and interests of the local population before creating new free economic zones. Besides, it is considered as expedient to study the opinions of investors on the improvement of FEZ by conducting sociological surveys and other methods of study. This procedure is aimed at critical study and the creation of new ideas and strategies for improving the activities of FEZ. 20. By now free economic zones «Nukus-farm», «Zomin-farm», «Kosonsoy-farm», «Sirdaryo-fann», «Boysun-farm», «Bustonlik-farm» ва «Parkent-farm» have considerable meaning to develop the pharmaceutical industry in the country. However, by considering the availability of large reserves of light industry, cotton, silk and leather (karakul) raw materials in our country, it is proved the proposal on creation of textile free economic zones manufacturing textile productions oriented to export. 21. In recent years, many reforms have been implemented in Uzbekistan to develop the tourism industry. A number of normative and legal documents on tourism infrastructure development have been adopted. Based on the high tourism potential of the Republic of Uzbekistan it has been proved the creation of free tourist zones in Bukhara, Samarkand and Khiva, as well as to create free touristic zone «Zamin» in Jizzakh region and free touristic zone «Chortok» in Namangan region.