A vital component of Uzbekistan’s trade strategy, import tariffs, affect the price and movement of commodities into the country. Together with other taxes and laws, these levies are intended to safeguard homegrown businesses and bring in money for the government.
Customs fees and charges
Depending on the kind of products being imported, Uzbekistan’s customs duty rates might vary substantially. Usually, they vary between 5% and 70% of the products’ customs value. Fixed rates are implemented as a minimum threshold for certain goods. The duty on coconuts, for example, is 20% yet should not be under $0.20 per kilogram.
Value added tax (VAT)
Imported items should pay a Value Added Tax (VAT) notwithstanding customs charges. In Uzbekistan, the VAT rate was brought from 15% down to 12% starting around 2023. The entire worth of the items, including the cost, insurance, freight (CIF), and any significant customs charges, is subject to this tax.
Excise taxes
Excise taxes, imposed to deter the use of certain items and safeguard domestic industries, are also applied to some imported commodities. The product category affects the excise tax rates. For example, the average excise tax rate on imported food items is 70%, with ice cream subject to 200% and potatoes to 10%. Exorbitant excise taxes, with average rates ranging from 40% to 140%, are also imposed on other goods, including jewelry, electronics, furniture, and new automobiles.
Customs clearance fees
Customs clearing fees are imposed on importers and are determined by the relevant customs system and the stated customs value of the goods. The Basic Calculation Units (BCUs) used to measure these fees are equivalent to 330,000 Uzbek Soums, or around $27.35 as of August 2023. For instance, a customs clearance tax of 15 BCUs, or around $430, is applied to products priced between $100,000 and $200,000.
Reductions and exclusions
To support certain industries and economic endeavors, Uzbekistan provides the following exemptions and import duty reductions:
Foreign investors
Foreign investors are always free from paying customs taxes on goods they buy for personal use. Customs duties are also waived for six months for items imported for reexport as long as they are exported within that time.
Temporary importation
Items covered by this regime are free from taxes and customs charges for a maximum of two years. The Cabinet of Ministers decides on the list of items that qualify for this exemption, its length, and its conditions.
Specific projects
Certain items imported for the building, remodeling, and furnishing of hotels, business centers, and retail establishments are free from customs taxes from March 1, 2024, until March 1, 2026. This covers building supplies, furnishings, appliances, raw materials, and components. Additionally, materials, components, and replacement parts required for the creation of textile items that are not made locally are free from customs taxes until January 1, 2027.
Recent updates
Uzbekistan has made steps to liberalize its trade policy in recent years, including:
Lower average tariff rates
New import taxes were established by Presidential Resolution PP-3818, which was published on June 29, 2018. Therefore, normal levy rates diminished from 15.3% in September 2017 to around 7.5% in 2020.
Expansion of zero rates for imports of food
On November 17, 2022, the public authority chose to broaden the zero rate time frame for the import of 22 various types of food merchandise from January 1, 2023, to January 1, 2024.
Organizations and individuals engaged with global trade with Uzbekistan should fathom the nation’s import obligation framework. Importers must negotiate a complicated system of tariffs, taxes, and fees even though the government has worked to lower tariff rates and provide exemptions in an attempt to boost economic development. Reducing expenses and promoting more seamless trade operations may be achieved by keeping up with the latest legislation and taking use of any exemptions that may apply.
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