Information necessary for the distribution of liability between
partners in export cargo logistics services insurance the Republic of
Uzbekistan
1
Kalenov Kuzbergen Tlegenovich,
2
Utemuratova Rayxan Baxadirovna
1Karakalpak State University, Nukus, Karakalpakstan, 2University of Tashkent for Applied Sciences, Uzbekistan.
(1975kalenov@gmaile.com,
https://doi.org/10.5281/zenodo.10467835
Keywords:
Quality, packaging, export irrigations, import irrigations, world market, export potential, logistics
.
Abstract:
Insurance of contract obligations of the exporter or his bank of the Republic of Uzbekistan in cases of non-
fulfillment of the contract until the export shipment is carried out or after the shipment is carried out.
Uzbekistan's agriculture has a huge export potential, and it is becoming increasingly obvious that fruits,
vegetables and melons grown on this sunny land can take a strong place in world markets. This can be seen
in the growing demand of the countries of the world for fruits and other agricultural products grown in
Uzbekistan. Given such a growing demand, the expansion of activity insurance and insurance protection of
agro-industrial enterprises and their servicing enterprises in the supply of agricultural products to world
markets by exporters of agricultural products is becoming one of the strategic issues that are in the focus of
our government's attention
.
1 A MAIN PART
Despite the fact that the insurance of the activities of
farms, which are considered representatives of the
agrarian sector who grow agricultural products, is a
constant focus of the government, and favorable
opportunities are created in this area, the following
problems are an obstacle to the expansion of
agricultural insurance:
- scientific study of the features of various natural
phenomena and processes taking place in agriculture,
the principles and rules of Agricultural Insurance are
not sufficiently developed;
- there is a shortage of personnel in this regard due to
the fact that an expert training system for agricultural
insurance has not been formed;
- when insuring the activities of enterprises of the
agro-industrial complex, it is not well established to
take into account the natural conditions of the
regions;
- most farmers and peasants still do not have the
necessary economic and legal knowledge and skills
about agricultural insurance and about the procedures
for its implementation, regulatory legal legislative
acts and regulations in force;
- a strong competitive environment for the insurance
of agricultural enterprises has not been formed, and
the means created by the government that lead to the
formation of such an environment are not sufficiently
available, which does not ensure the interest of
insurance companies in agricultural insurance, where
the level of harmfulness is considered high;
- agricultural insurance is still practiced only by
insurance organizations based on commerce, with
relatively high tariff rates, the activities of non-profit-
shaped mutual insurance societies, which are
considered alternatives to insurance, are not formed.
2 INTRODUCTION
The fact that Uzbekistan is located in a sharply
continental climate zone, citrus fruits and other fruits
that are not suitable for such a climate in this country
are not grown in large quantities, which creates the
need to purchase such types of fruits from foreign
countries. In addition, many tree varieties are
imported from foreign countries, which are not grown
in large quantities in our country, but where it is
possible to localize them. Such events in their place
cause the need to insure these goods. Taking into
account this, the decree of the president of the
Republic of Uzbekistan dated August 2, 2019 “on
measures to reform the insurance market of the
Republic of Uzbekistan and ensure its rapid
development” sets out the question of studying the
prospects for the introduction of export-imported
fruits
and other types
of seedlings,
their
transportation, as well as mechanisms for But to date,
no measures have been taken in this matter.
In addition, as a result of the fact that
Uzbekistan is a sunny country, getting enough
sunlight on the grown fruits and vegetables, they have
an advantage over fruits and vegetables grown in
most countries of the world in their sweetness and
taste, which ensures an increase in foreign buyers for
these products. From January to June 2021, the total
volume of exports from Uzbekistan amounted to $ 7.1
billion, of which the export revenue in the "vegetables
and fruits" category was $ 404.1 million. That is, this
indicator was equal to 5.7% of the total export volume
for the same period. At the same time, in the first half
of 2021, vegetables and fruits decreased in terms of
export value by 5.2% compared to 2020, and by 38%
compared to the first half of 2019. Such conclusions
are drawn from the data published by the State
Statistics Committee of Uzbekistan, as well as from
the reports of the Department on foreign trade
turnover in the Republic over the past years (these
periods). In January-June 2021, the absolute leader in
the volume of export revenues in the fruit and
vegetable export segment of Uzbekistan is Cherries
($84.6 million), followed by tomatoes ($50.2
million), Cypress and dried grapes ($22.3 million),
onions and shallots ($21.5 million) and cabbage
($16.7 million). At the same time, experts draw
attention to the fact that the largest share of exports in
the category of "drunk and dried grapes" refers to
raisins. Because during this period, sarkhil grapes are
supplied from Uzbekistan to the foreign market only
from warehouses – at the expense of last year's
harvest and early varieties of this year. In both cases,
this is a small volume. In addition, since its species is
not identified in the" cabbage " category, analysts
believe that this category includes head cabbage,
cauliflower, Beijing cabbage and other types.
China's fruit import capabilities are increasing,
and in this regard, the countries of Central Asia,
including Uzbekistan, have sufficient potential to take
advantage of this opportunity. The geographical
location of the region, its natural resources,
opportunities to increase productivity and the creation
of the necessary conditions for attracting private
investment in the current period, during which
effective reforms in the field of agriculture are carried
out, make it possible to increase the export of fruits
and vegetables to China, the largest in the world and
at the same time
3 Materials and Methods
The statistical and econometric analysis carried
out within the framework of this study show that
Uzbekistan has relative advantages in the production
and export of such products. The country's favorable
climatic conditions and low production costs allow it
to be competitive in the Chinese market. However, in
order to achieve this goal, we believe that the
government of Uzbekistan should remove a number
of existing restrictions and create additional
conditions for fruit exporters.
4.
RESULTS AND DISCUSSION
The Russian Federation has become a
traditional market for the wet fruits of the countries of
Central Asia, including Uzbekistan, and there is no
doubt that it will remain so. According to official
sales statistics, from Uzbekistan in 2014 amounted to
2.8 million. in 2018, wet fruits exported from
Uzbekistan amounted to 99 million dollars. it
amounted to an amount close to the dollar. This
amount amounted to more than 90% of the wet fruits
exported by all Central Asian countries to the Russian
Federation . In addition, the fruits taken unofficially
through Kazakhstan also constitute a large size.
Between 2014 and 2018, the fruits exported from the
countries of Central Asia to the Russian Federation
increased 21 times, in which the main growth fell on
the contribution of Uzbekistan. The results of the
analysis of export competitiveness showed that the
potential of Uzbekistan in the export of fruits to China
is mainly cherries, apricots (wet and dried), plums
(wet), grapes (wet) and Greek nuts. The export
potential of grapes, cherries and Peaches is 486
million annually. Estimated in the amount of US
dollars, in addition to 115 million. There is an
opportunity to supply apricots and plums in the
amount of US dollars. But today about 50% of the
existing potential is being implemented. Currently,
the export of Uzbekistan in this regard is not
diversified and is mainly limited to the countries of
the Eurasian Economic Union – Kyrgyzstan,
Kazakhstan and the Russian Federation, and cherries
exported to Kazakhstan are sold for an average of US
$ 1.77. The price of this cherry is sold in China for
US $ 3.07 and in Korea for US $ 3.6. There are some
difficulties with the export of wet fruits to the
countries of China and Korea, such as the processing
and marketing of the harvested product, the limitation
of production volumes (mainly small producers in the
market), that is, the difficulty of collecting the
product in one place, low quality and lack of material
and technical resources (lack of irrigation, seeds and
seedlings, , failure to meet international sanitary and
phytosanitary requirements, cases of increasing the
maximum level of harmful fashions in the
composition of the fruit, difficulties associated with
exports, the lack of logistics systems in demand, the
lack of good development of electronic sales.
An important factor in the process of implementing
an export contract is the mutual distribution of
responsibilities between partners, as well as the
determination of financial sources of compensation
for possible losses as a result of the occurrence of
unforeseen circumstances (see Table 1).
Information necessary for the distribution of
liability between partners in export cargo
insurance
Table 1
The responsible
party for cargo
insurance
The mutual agreement
between the exporter and the
importer is indicated mainly
in the contract.
The party
responsible for
the loss, theft
and damage of
the cargo before
the exporter
- Transport enterprise (except
in cases where the transport
enterprise has not been able to
stop the situation of loss or
damage of cargo and does not
depend on it). -Transport
forwarding company, which,
according to the contract,
takes responsibility for the
storage of cargo.
De facto
document
confirming that
the cargo is
insured
Insurance policy issued by the
insurance organization under
an export contract.
Information
provided in the
application of
the insurer on
the conclusion of
Brand name, weight, place
number, cargo packaging
type. - Type of transport and
method of transportation (in
grain, container and other
1
The table was developed by the author based on
research
the insurance
contract
form). - Shipping time. -
Transportation documents. -
Insurance amount of cargo. -
Insurance conditions (liability
for all risks or part).
Documents
provided by the
insured under
the insurance
claim
The original of the insurance
policy. - Nakladnoy or other
shipping document. - Invoys
(schet-invoice). - Accident
Certificate, Examination
Certificate or other document
confirming the occurrence of
an insured event.
The main system in this matter is insurance
activities. The types of insurance services offered for
exporters in the insurance market of Uzbekistan are
as follows: export contract insurance, road freight
insurance, comprehensive insurance. Export contract
insurance consists in insuring the contract obligations
of a foreign partner or his bank or an exporter of
Uzbekistan or his bank until the export shipment is
made or in cases of inability to fulfill after the
shipment has been made, as a result of the occurrence
of events related to political and commercial
activities. Foreign trade cargo insurance provides for
the compensation of damage seen as a result of its
partial loss, damage or complete loss in the process of
delivering this cargo from the exporter to the
importer, while at the same time compensating for
losses arising in the processes of its transportation,
storage, increase and discharge.
Uzbekistan will have to do a lot more to take
full advantage of the opening opportunity to export
products to Chinese fruit markets. First, Chinese
markets require stable quality and volume of supplies
from exporting countries. Secondly, entering the
Chinese market becomes more realistic when there
are modern quality management systems, modern
organized logistics schemes. Particular attention is
also paid to the issue of ensuring compliance with
strict requirements for the production of products and
subsequent processes, and in this, following the
standards adopted in China for the safety of fruits and
vegetables, will prevent possible problems. Thirdly,
the prevalence and competitive environment of
Chinese fruit markets requires constant contact with
local Chinese partners. Fourth, Chinese consumers
appreciate attractive packaging and branded products.
Most fruit producers in Uzbekistan are small
farmers, many of whom cannot use financial and
educational resources. Due to this, their product size
is limited and the quality is not stable. Small farmers
are used to selling fruit through a traditional network
of local sellers and have no experience or potential in
reaching international markets. Therefore, with Chile
and the United States of America, which are now the
main importers of China, with a high level of
development and technical capabilities, Uzbek
farmers cannot compete (food safety and Quality
Assurance System, customs control and inspection
bodies). In addition, the fact that local farmers do not
have information about China's existing import
opportunities and ways to get to them does not make
it possible to take full advantage of this opportunity.
4 main markets operate in China on the
wholesale trade of imported fruits:
1) Jiangnan fruit and vegetable market in
Guangzhou;
2) Hueichjan fruit and vegetable market in
Shanghai;
3) Beijing-based Sinfadi market;
4) Dili market, which is considered a
shopping center for agricultural products located in
Shenyang.
Guangzhou is a major distribution center at
a nationwide level. From here, products are shipped
to different regions of the country, while products for
final consumption also come directly to these regions
from Beijing, Shenyang and Shanghai. In the retail
market of imported fruits, two new trends have
formed, these are: online and offline channels of retail
e-commerce and the crushing of large stores. The
contribution of the modern retail system is accounted
for by 67.4 percent of total food production (Producer
Marketing Association, 2016). But in recent years,
the development of electronic trading systems in
supermarkets and Hypermarkets has been decreasing
the rate of growth in sales. The penetration of the
internet into everyday life and the development of
mobile technologies makes it possible for consumers
to easily purchase imported fruits through electronic
trading platforms.
CONCLUSIONS
In ensuring the economic stability of
crop growers in agriculture through the
development of agro-insurance service in the
Republic of Uzbekistan, it is advisable to cite the
following as a recommendation:
- the study of various natural phenomena
and natural disasters occurring in agriculture
based on the nature of the regions and the
formation of tariffs for agricultural insurance on
the basis of a territorial approach;
- as the central link of the agro-industrial
complex, only insurance work is carried out by
farms against various risks in the process of
growing agricultural products, but the work on
insurance of farmsteads is lagging behind,
therefore, it is advisable to increase the focus on
insurance of farm activities, develop new
insurance products and corresponding insurance
tariffs in this regard;
- expansion of the size of insurance
contracts between agricultural enterprises and
JSC "Uzagrosugurta" and the development of
targeted programs for their creation "Online" in
a modern way;
- increasing the economic and legal
literacy of the management staff of farms on
“insurance;
- it is advisable to transfer crops (grain
and rice products) aimed at meeting the needs of
the country's population from voluntary
insurance to compulsory insurance.
- Taking into account the experience of
the USA and European countries, establishing a
system of payment of an average of 50% of
insurance premiums at the expense of the
Republican and local budget, is the most
effective way to attract agricultural enterprises to
insurance, and this event also serves as an
important factor in ensuring the financial
stability of insurance companies.
- The lack of introduction by the state of
benefits and methods of material support for
agricultural insurance does not increase interest
in potential insurers in the insurance of risks
associated with their activities. In addition, the
high level of harmfulness of agricultural
insurance is the reason for the lack of
development of competition in agricultural
insurance among insurance companies.
- The tariff rates offered by commercial-
based insurance companies are relatively high,
activity transparency is not ensured, and trust in
insurance companies is at a low level. The
organization of non-profit-shaped insurance
societies
among
agricultural
enterprises
specializing in the insurance of their activities
eliminates the above factors.
- A significant increase in the export of wet and
dried fruits by agricultural enterprises of
Uzbekistan and private household farms increases
the need to provide this sector with insurance
services at the level of demand. In ensuring this
need, it is necessary to develop new insurance
products based on public-private partnerships.
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