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Frequently asked question

  • WHAT PROJECTS WILL BE INCLUDED IN THE LOCALIZATION PROGRAM?

    YouThe regulation on the formation, implementation and maintenance of the reporting system of the program on the localization of the production of finished products, components and materials on the basis of the OAT cooperation, as well as the procedure for mutual cooperation of Public Administration bodies and initiators of projects in this process were approved (No. 1009 of 17.12.2019).

    The document was adopted in accordance with the resolution of the president of the Republic of Azerbaijan dated August 24, 2019 "on further increase of the state and economic management and local executive authorities' responsibility for the localization of production and the introduction of a new system of acceleration of cooperative relations in industrial sectors".

    As set out in the regulation, the process associated with the production (performance of works, provision of services) of finished products, components, parts, raw materials and materials replacing imports is localization. The program of measures for localization is approved by the Cabinet of Ministers.

    The Cabinet of ministers, the Ministry of Economy and industry, the Ministry of investments and foreign trade, STC, STC, anti-monopoly agency, Davstatkom, State Asset Management Agency, "Uzstandart" agency, SSP, as well:

    Center for Network markets and export-oriented production research under the Ministry of economy and industry;

    Assistant and working group on issues of localization of production and expansion of cooperative relations in industry of the governors of Regions and Tashkent City, chairman of Karakalpakstan Jokurgh Kengesi;

    project initiators (economic entities producing imported substitute products) are participants in the localization process.

    The Ministry of economy and industry was established as an authorized body for the localization of production and deepening of the processes for the development of industrial cooperation.

    The regulation sets out the tasks of the participants in the localization process, the functions performed by them in the formation, implementation of the localization program, as well as the deadlines for their implementation. This was reflected in the scheme of interaction of participants in the formation and implementation of the localization program.

    The projects are included in the localization program with their indicators meeting the following criteria:

    constant, large-scale import of localized products into the territory of the Republic;

    availability of the possibility of creating a value-added chain based on the production capacity of the localized product and the existing raw material base;

    the fact that the existing technological equipment in the network and regional enterprises are aimed at the production of components, spare parts and materials from rapid operation;

    the level of localization of the product under production should be at least 36% ;

    availability of sufficient demand in the domestic and foreign market for the product under localization;

    availability of production infrastructure, especially the use of existing infrastructure in empty buildings and small industrial zones;

    the establishment of cooperative relations between large and small enterprises.

    The document was published in the national database of legislative data and entered into force on 18.12.2019 year.