FEZ "Panj"

LOCATION
FEZ “PANJ” is located in massif Karadum of Kumsangir district of Khatlon region with the territory of 400 hectares and bordered with Islamic Republic of Afganistan
Objectives and Tasks
MAIN OBJECTIVES
-Stimulating the development of economic potential of the Republic of Tajikistan, including the attraction of foreign and domestic investments, introduction of an advanced experience of management;
-Effective involving of the region and country economy into the international division of labour, developing of the trade-economic cooperation with foreign countries, increasing of the republic export potential;
-Municipal engineering development on the territories bordering to FEZ, creation of a modern engineering-transport, telecommunication, production and social infrastructure;
-Organization of ecologically pure productions , creation of production on producing competitive products and goods focused for export;
-Providing employment of the region and republic, creating additional jobs, improving population welfare, increasing consumer ability, income increase of FEZ employees and solving other social-economic issues of the region.
Main tasks:
-Development of the zone economic potential basing on foreign investments integration with assets and funds of domestic enterprises and organizations based on various forms of ownership;
-Attraction of foreign and domestic investments, advanced techniques and technology, introduction of the foreign management experience and new management methods;
-Introduction into the production domestic and foreign scientific-technical elaborations and inventions with its further utilization in other regions of the country;
-Providing sustainable social-economic development of the region;
-Reducing production costs, maximum utilization of free labor sources, natural and other local resources for producing products and goods for export and internal market;
-Creation and arrangement of FEZ territory, secure of environment;
-Organization in the FEZ territory international standards level production infrastructure ( communications, transport and etc.);
-Developing of FEZ independent budget.
STATUS OF FEZ
-FEZ status is identified by its borders, legislative base and special legal regimes, also by zone budget and own management structures.
-FEZ lands are only the state ownership and all concerns dealing them are regulated by the legislation of the Republic of Tajikistan.
-On the FEZ territory operates legislation of the Republic of Tajikistan, which regulates free economic zones activity.
-FEZ - separate (bounded) plot on the territory of the Republic of Tajikistan, within the bounds of which operate special customs and tax regimes and also the simplified procedure for registration of FEZ subjects, also rules for entrance and departure of FEZ residents and non-residents.
  -In FEZ territory is created preferential regime for creating and operations of organizations, enterprises and individual entrepreneurs, residents and non-residents of the Republic of Tajikistan formed with domestic and (or) foreign investments attraction.
-Involvement of the state authorities to financial-economic activity of FEZ, except cases provided by the legislation of the Republic of Tajikistan is prohibited.
FEZ SUBJECTS
-FEZ subjects are individual entrepreneurs, organizations regardless of legal forms provided by the legislation of the Republic of Tajikistan, and also branches and their representations that:
 -according to the legislation of the Republic of Tajikistan passed state registration;
-signed with FEZ Administration Agreement about activity in FEZ territory;
 -received certificate of FEZ subject in order established by the present Regulation.
Priority activities in FEZ
-production of sewing threads, knitted fabrics, artificial and synthetic fabrics, fabrics and finished products from silk and cotton thread, finished fabric and sewing production from wool, processing of big and small cattle with final producing of finished leather goods, shoes and leather fancy goods;
-dyeing fabrics and production of finished products for sewing industry, production of parterre and upholstery fabric, production of accessories for different use;
-production of arm-chairs and furniture;
-production of artificial and synthetic dyes;
-production of starch, microcellulose, nitrocellulose;
-machinery (assembly and production of cars, tractors and different of technique models for agriculture and other branches, spare parts for them, equipment, techniques and technology for processing branch, equipment for services, water pumps and others);
-production of non-metallic pipes for different industries;
-production of electro technical, radio electric and home techniques;
-production of fertilizers and bioactive additions for agriculture;
 -machinery (assembly and production of cars, tractors and different of technique models for agriculture and other branches, spare parts for them, equipment, techniques and technology for processing branch, equipment for services, water pumps and others);
-production of non-metallic pipes for different industries;
-production of electro technical, radio electric and home techniques;
-production of fertilizers and bioactive additions for agriculture;
-processing of natural stones, production of construction and decorating materials;
-production of glass and basalt fibre and finished goods produced from them;
-production of modern construction materials (glass, windows and doors, heat-retaining wall blocks and panels of international standards, plastic finishing materials (except construction brick);
-production of gypsum goods;
-production of different models of electric wires;
-production of goods from garbage (without primary processing);
-production of perfumes and chemical washing powders;
 -production of pharmaceutical products and medicines;
 -production of techniques and inventory for public health;
-production of illuminators and goods;
-evaluation, credit, insurance, consulting, auditing, leasing and certification activity;
-import-export operations;
-activity on providing informational support;
-activity in the sphere of scientific-technical surveys, innovation activity, nanotechnologies and biotechnologies and etc.
Requirements for business plans and investment projects
Business-plans and investments projects should meet the following requirements:
-investments for implementing production activity – no less than 500 thousands US dollars;
-import no less than 90% of production-technological equipment;
-early exploitation life of imported production technological equipment should not exceed 3 years;
 -investments for implementing export-import activity – no less than 50 thousands US dollars;
 -investment for implementing activity on providing services no less than 10 thousands US dollars;
-produce products no later than 3 years prior to state registration date.
FEZ subjects rights
FEZ subjects regardless of ownership forms (except budget organizations) have a right:
 -create joint organizations with foreign and domestic investors;
-implement economic activity basing on agreements, easily choose partner, agreement subject, define liabilities, and also any other conditions of economical relationships;
-independently implement foreign-economic activity, make barters and intermediate operations, and also reinvestments in free economic zone territory, if these operations nature do not contradict to legislation and do not threaten economic security of the Republic of Tajikistan;
-get without limitations credits from foreign banks, companies and organizations; attract foreign insurance companies for signing all kinds of insurance deals;
-make any investments into free economic zone that are not prohibited by the Republic of Tajikistan legislation;
-use lands basing on agreement regarding urgent rent, property, property rights and transfer of rights for use due to sides’ mutual agreement, signing rent agreement or their assignees, and also other property and non-property rights;
-hire foreign citizens and the Republic of Tajikistan citizens in contract base;
 -implement any other activity that is not prohibited by current legislation of the Republic of Tajikistan.
TAX REGIME IN FEZ
-FEZ subjects according to the Republic of Tajikistan tax legislation are partly free from some taxes for the period of their activity in FEZ.
-In FEZ territory entrepreneurship activity of FEZ subjects regardless of ownership form is free from all kinds of tax payments provided in the Tax Code of the Republic of Tajikistan, except social tax FEZ subjects’ hired employees .
-Social tax of FEZ subjects hired employees are charged and paid by FEZ subjects independently in accordance with the Tax Code of the Republic of Tajikistan.
-Control of full and timely payment of social tax implements by the local tax inspection.
-Profit received by the foreign investors and salary of foreign employees given in foreign currency can be transferred without difficulties to abroad and while transferring will not be not taxed.
TAX REGIME IN FEZ
Annual rent of lands constitutes 1 US dollar per one square meter.
FEZ “PANJ” Administration contact information
735700 Republic of Tajikistan
Khatlon region
Kumsangir district
Karadum massif.
tel: + 992 918 14 21 21
E-mail: fezpanj@gmail.com
www. fezpanj.tj