Uzbekistan to abolish licenses for production of natural wines

Tashkent, Uzbekistan ( -- President of Uzbekistan Shavkat Mirziyoyev signed a resolution “On measures for basic improvement of the wine industry and sale of alcohol products”.

Uzbek leader approved a proposal to rename Uzvinosanoat-holding and its Fund for Reconstruction and Development to Uzsharobsanoat and Development Fund of Uzsharobsanoat respectively.

The President also liquidated Vinagroimpeks and removed non-core enterprises from Uzsharobsanoat.

According to the resolution, from 1 April 2018, the requirement to establish the shelf life of wine products is excluded and producers of such products are given the right to independently determine the period of storage.

From 1 July 2018, alcohol producing enterprises are given the right to retail their own winemaking products in the tasting zones (locations), organized by tourist routes.

From 1 January 2019, activities for production of natural wines, wine materials and brandy alcohol, as well as processing of grapes can be carried out by enterprises, which have plantations of not less than 100 hectares in cultivation of fruit-bearing technical varieties of grapes, as well as oak barrels for storage and aging of wine and cognac products , along with compliance with other requirements provided by law.

Also from 1 January 2019, the licensing of activities for production of natural grape wines, produced from the raw materials of their own vineyards, is canceled with the classification of such wines as agricultural products, the document said.

The resolution underlined that Uzsharobsanoat is a part of the Complex for Investment, Innovative Development, Coordination of Free Economic and Small Industrial Zones, and Tourism of the Cabinet of Ministers of the Republic of Uzbekistan.

“Provision of land for the cultivation of technical varieties of grapes is carried out by agreement with Uzsharobsanoat and the State Committee of the Republic of Uzbekistan on geology and mineral resources, taking into account the level of soil fertility, availability of water supply sources necessary for obtaining a high yield,” the document said.

To create an effective raw material base, the Special Commission visits the vineyards on site to grow technical varieties of grapes, including which are in charge of farms, will study the rationality and efficiency of their use. In the period 2018-2023, a single register of plantations of technical varieties of grapes will be created.

Each plantation of technical grapes will be enlarged to an area of at least 100 hectares. And the own plantation areas of Uzsharobsanoat will bring up to 10,000 hectares by the end of 2021.

The President of Uzbekistan also released producers of technical varieties of grapes from payment of land tax until 1 January 2025.

The Central Bank will ensure allocation of soft loans with an effective interest rate of refinancing for plantations of technical varieties of grapes, purchase of equipment, machinery, components and other necessary funds for the development of the wine industry for a period of 7 years and a grace period of at least 5 years.

The Government was instructed, by 1 June 2018, to submit proposals on expanding market mechanisms for the sale of alcohol products.

Manufacturers will be given the right to sell their own products through their branded stores and other legal entities engaged in wholesale trade of this product.

The President instructed to create an information system for monitoring and recording the movement of alcohol products by 1 January 2020, containing detailed information about all producers of alcohol products, the volume of its production (type, name and other information) and sales through the chain "producer - wholesaler - retailer - the consumer ". The system should fully work by 1 December 2022.

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