Funding Allocated for Confectionery Export Operations
New Decree Aimed at Improving Quality and Competitiveness of Certain Industries
On November 21, 2023, Presidential Decree №198 was adopted, outlining additional measures to enhance the production of high-quality and competitive products in specific industries. The decree includes various provisions and allocations to support the confectionery and textile sectors in the country.
In efforts to finance exports and export-related trade operations, the decree allocates financial resources to confectionery industry enterprises based on their export volume over the last 12 months. The allocated amounts range from up to $1 million for exports up to $500 thousand, up to $2 million for exports between $500,000 to $4 million, and up to $3 million for exports exceeding $4 million. These allocations are valid for a period of 2 years.
Additionally, until January 1, 2025, the packaging and labeling of products used in the production of confectionery items will be exempt from customs duties. Furthermore, yarn manufacturers will receive a 50% reimbursement on transport costs when importing cotton and man-made fiber for their production needs, except for neighboring countries.
Furthermore, the decree introduces changes and additions to regulatory legal documents, including a reduction in export fees for yarn and tax benefits for enterprises selling dyed fabric and linen on the domestic market. Additionally, certain goods necessary for the operation of textile and sewing and knitting enterprises will be exempt from customs duties until October 1, 2026.
Moreover, the installment period for renting land and buildings in industrial zones will be extended from 12 months to 24 months, providing additional support to businesses operating in these sectors.
Overall, the new presidential decree aims to bolster the competitiveness and productivity of the confectionery and textile industries through various financial and regulatory measures. These efforts are expected to drive growth and innovation within these key sectors of the economy.
