Foreign trade regime
After proclamation of independence, the government of the Republic of Uzbekistan prosecutes systematic policy for liberalization of trade regime.
In passed law by Oliy Majlis on 29th of August 1997 №470-I Law of Republic of Uzbekistan “On customs tariff”, which came into effect from 1st of January 1998, provided usage of the following rates of customs duties:
• ad valorem tax, charged in percentage of customs value of goods;
• specific, charged in fixed rate per unit assessed goods;
• combined, mixture of two these names.
For further liberalization of foreign economic activity and regulation improvement of import operations, there was signed a resolution of President of Republic of Uzbekistan from 5th of August 2009 №ПП-1169, which set new rates for import customs duties since 1st of September 2009 (Enclosure №1)
In addition, for guaranteeing a steady development of domestic factories, which produce textile products, and in order to motivate competition among domestic and foreign markets, there were set new customs duties to finished textile products since 1st of October 2009.
Mean rate of customs duties, which approved in resolution of President of Republic of Uzbekistan from 5th of August 2009 №ПП-1169 is about 14.81%.
According to the Article 6 of Law of Republic of Uzbekistan “On customs tariff” rates of import customs duties of goods, produced by most-favored-country are set by legislation.
Goods, produced in countries, which do not have most favored nation treatment, or goods, which country of origin is not determined, have doubled rate of import custom duties.
Customs duty to raw materials is absent or very minimal in order to motivate domestic factories to produce finished product. Null rate is also set for products, which are mentioned in Resolution above.
Most Favored Nation Treatment
Republic of Uzbekistan provides Most Favored Nation Treatment to 45 countries over the world, in accordance with bilateral contracts about mutual collaboration.
5. The United Kingdom
19. Republic of Korea
20. People’s Republic of China
25. The Netherlands
36. Czech Republic
Prohibition to import
In enclosure №5 of decree of President of Republic of Uzbekistan from 10th of October 1997 №УП-1871 there was defined list of goods, prohibited to import in Republic of Uzbekistan. This list consists of: printed works, manuscripts, cliché, paintings, photos, photographic film, printer, cinema, video and audio products, gramophone recordings, which are referred to: 1) undermining state and social regime, 2) violation of territorial integrity, independence and state sovereignty, 3) propagandize war, terrorism, violence, 4) national exclusiveness, 5) religion detestation, racism and its varieties (anti-Semitism, fascism) and as well videos with pornographic content.
Also according to the Resolution of Cabinet of Ministers from 15th of May 1998 № 213 there is ban to import and transit ethyl alcohol through the territory of Republic of Uzbekistan.
In Republic of Uzbekistan system of tariff preferences, used in WTO, is not adopted.
Quota system in Republic of Uzbekistan is not adopted. However, according to Montreal report (1987) about destruction of ozone layer, Republic of Uzbekistan affirmed quota system to import substances, which destroy ozone layer during the period of 2005-2030. Quota system asserted in compliance with Resolution of Cabinet of Ministers of Republic of Uzbekistan from 11th of November 2005 №247 “On improvement of regulation of import and export in Republic of Uzbekistan substances, which destroy ozone layer”
At the same time according to the Article 21 of Law of Republic of Uzbekistan “On foreign economic activity” Cabinet of Ministers can set quantitative limitation (quote) for export and import of certain types of products.
Distribution of quotes usually realizes by competition or auction.
List of certain products for import and export, which are subject to licensing and quota system, also the procedure of delivery license and quota system are assigned by Cabinet of Ministers of Republic of Uzbekistan.
Liberation from tariff
In accordance with Article 33 of Law of Republic of Uzbekistan “On customs tariff”, Resolution of Cabinet of Ministers from 31st of March 1998 №137 “On additional measures of liberalization of foreign trade activities in Republic of Uzbekistan” the following goods are free from customs duties:
1. transport vehicles for international shipping of cargo, luggage, passengers, also objects with supplies of materials and machinery, outfit, fuel, food and other property for normal exploitation on the way, on the enroute waypoint or properties, that were purchased for liquidation of accident (breakage) of this transport vehicles;
2. currency of Republic of Uzbekistan, foreign currency (except that, which is used for numismatic aims), also stock in compliance with legislation;
3. objects of material and technical provision and outfit, fuel, food and other properties, exported outside of the customs territory for the operation of the courts of the Republic of Uzbekistan and the ships leased (chartered) by legal and physical person of the Republic of Uzbekistan, out fishing, as well as products of their activity, imported into the customs territory of the Republic of Uzbekistan;
4. goods, that are intended for government property, in case that stated by legislation;
5. objects, imported to the customs territory or exported from this territory for official or private using representatives of foreign countries, physical person, who has the right to free movement such goods, in compliance with legislation or international agreements of Republic of Uzbekistan;
6. goods, imported to the customs territory of Republic of Uzbekistan for providing with help in a result of disaster, armed conflicts, accidents, as a humanitarian aid and gratuitous technical assistance, also goods, imported for charitable aims by countries, international organizations;
7. educational textbooks for free educational and medical institutions;
8. goods, moved under customs control in regime of transit through the customs territory and destined for other country;
9. goods, moved through the customs territory by physical person and not oriented for industrial or other commercial activity in compliance with customs legislation;
10. goods, that made in and imported from countries, which have set regime of free trade;
11. goods, imported and exported by intergovernmental and credit agreements, which signed on behalf of government of Republic of Uzbekistan and under its guarantee;
12. property, imported to Republic of Uzbekistan by enterprises with foreign investment with the share of foreign investments in the authorized capital not less than 33% for own production needs, during the 2 years from the moment of registration;
13. property, imported for private needs of foreign investors and citizens of foreign countries, who are in Republic of Uzbekistan in compliance with labor contract of foreign investors;
14. goods, imported by foreign juridical person, who actualized direct investment in economy of Republic of Uzbekistan in total sum of more than 50 mln. USD, on conditions that, imported goods are product of their own manufacture;
15. goods and services, intended for holding activities on a production sharing agreement and imported into the Republic of Uzbekistan in accordance with the design documentation foreign investor or other persons involved in the performance of work under a production sharing agreement, as well as products exported by the investor, belonging to him in accordance with the production sharing agreement;
16. goods, imported for advertisement and presentations;
17. technical equipment imported to the territory of Republic of Uzbekistan, according to the list, signed in compliance with legislation, also complementary and spare details, on conditions that their delivery foreseen by terms of contract. In case of realization or gratuitous assignation of imported technical equipment to export during the three years from the moment of its bringing in, this privilege will be suspended and liability of payment of customs duties will be restored for all used period of privilege;
18. technique of system of investigation actions, purchased by operators of communication and specialized authority of certification of this technique, in the presence written conformation of authority.
Due to Customs code of Republic of Uzbekistan customs duties are charged in schedule, set by Cabinet of Ministers of Republic of Uzbekistan for:
- customs packaging of goods and transport vehicles, including goods for non-profitable aims, moved in untracked luggage, by international mailings;
- customs packaging of goods and transport vehicles out of certain place and work time of customs authorities;
- saving goods and transport vehicles in customs storage and in storages of temporary saving, which owners are customs authorities;
- customs maintenance of goods
Customs duties in the whole territory of Republic of Uzbekistan are charged in national currency – “sum”, in the territory of free customs zones – “FCC”
Customs cost of goods
Due to Article 12 of Law of Republic of Uzbekistan “On customs tariff” customs value is declared by customs authority during customs packaging in conditions of legislation.
In compliance with customs legislation customs value is used for imposition of ad valor rate of customs duties, fees and excise taxes. Customs value is also used for conducting statistics in foreign trade.
In compliance with valid legislation of packaging of cargo, customs authority should be provided with required certificate, invoice, contract, and also cargo customs declaration.
Value-added tax (VAT)
In compliance with Law of Republic of Uzbekistan from 25th of December 2007 “On declaration of Tax code of Republic of Uzbekistan” there was activated Tax code on 1st of January 2008.
In resolution of the President of Republic of Uzbekistan №ПП-2099 from 25th of December 2013 there was set VAT to goods (service) in rate of 20%.
Payment of VAT to imported goods realizes before or during the customs packaging.
Due to Article 221 of Tax code there is set list of imported goods which are free from payment of VAT:
- goods, imported by physical person within the norms of duty-free, approved by customs legislation;
- goods, that provided for official usage of foreign diplomatic and equal to them representations, and also goods for private usage of diplomatic and administrative-technical staff of these representations, including members of their family, who live with them;
- goods, imported as a humanitarian help, that is determined by Cabinet of Ministers of Uzbekistan;
- goods, imported in charitable aims, including technical assistance of government, international organizations;
- goods, imported in juridical aims, supported with loans (credit), given by international and foreign governmental organizations on international agreements of Republic of Uzbekistan, and also goods imported by the grant programs;
- medicines and goods for medical (veterinary) purposes, and also raw, imported according to the list of
- Medicinal products and medical (veterinary), as well as raw materials imported on a list established by law for the production of medicines and medical (veterinary). This exemption does not apply to imported finished pharmaceutical products, which are also produced in the Republic of Uzbekistan, according to the list approved by the Cabinet of Ministers of the Republic of Uzbekistan;
- Technological equipment imported into the territory of the Republic of Uzbekistan with accordance to the List, approved by the legislation, as well as components and spare parts, provided that their supply is provided by the terms of the contract for the supply of technological equipment. In the case of sale or donation of imported technological equipment for export within three years from the date of its importation effect of this benefit is canceled with the restoration of the obligation to pay value added tax;
- Property imported as investment obligations under the contract between the investor and the authorized state body for state property management;
- Hardware systems search operations acquired by telecommunications operators and special certification body hardware systems search operations, with the written approval of an authorized state body;
- Raw materials and preparations for use in its own production, imported by enterprises with foreign investments, specializing in the manufacture of children's shoes;
- Timber and woods, with accordance to the List, established by the legislation.
In accordance with Article 235 of the Tax Code list of excisable goods and excise tax rates are approved by the President of the Republic of Uzbekistan.
Excise tax rates are set as a percentage of the cost of goods (ad valorem) and (or) in absolute amount per unit in volume terms (fixed).
Rates and the list of goods subject to excise tax on imports and domestic production, approved by the Resolution of the President of the Republic of Uzbekistan № PP-2099 from 25.12.2013.
Excise taxes on imported goods must be paid before or at the time of customs clearance (Enclosure №2).
Rules of origin
Articles 24-31 of the Law of the Republic of Uzbekistan dated 29 August 1997 "On Customs Tariff" contain rules concerning the origin of goods. In general, the above rules meet the requirements of the rules of origin established by GATT / WTO Agreement on Rules of Origin.
In the Law "On Customs Tariff" given the existing rules of origin, based on international standards with regard to two main categories of products: (I) products wholly produced in the country, where only the country can be considered when determining the origin; (II) goods which have undergone "sufficient processing", products that have been produced or processed in one country assembled using some components, at least one of the other country.
The first category consists of mainly grown in the country natural products, such as live animals, plant products, minerals, etc., while the second category is applied to goods that have been produced in one country with some components from abroad.
In the latter case of "sufficient processing" of the goods to determine the country of origin criteria are set, such as:
1. The change of heading (classification code of goods) by Commodity Code at any of the first four digits, as a result of processing of goods (component or components from abroad used to produce final goods);
2. Execution of industrial or technological operations sufficient or insufficient to be considered as originating from the country in which these operations were performed;
3. Ad valorem share rule - change in the value of the goods (whether a significant portion of added value of the final product in the country of production).
In order to confirm the origin of the goods, the certificate of origin, established by international standard, should be given to the customs authorities.
In respect of goods originated in the CIS member countries there is being operated rules for determining the country of origin, approved by the decision of the Council of Heads of Governments of the CIS-24 September 1993.
Law of the Republic of Uzbekistan dated December 11, 2003 "On safeguard measures, anti-dumping and countervailing duties" provides for the imposition of anti-dumping duties on any goods being the dumped imports.
Application of anti-dumping duties should be preceded by an investigation initiated by the authorized body and / or national manufacturers of similar products in accordance with the laws of the Republic of Uzbekistan. Anti-dumping duty is introduced if the results of the investigation found that the import into the customs territory of the Republic of Uzbekistan were in dumping prices, which causes or threatens to cause serious damage to industries of the economy.
Rates applicable duties established by the Cabinet of Ministers on the basis of findings for each individual case. Bids shall be evaluated in accordance with dumping prices and material damage identified during the investigation.
Anti-dumping duties have not been set in the Republic of Uzbekistan.
Application of countervailing duties
Law of the Republic of Uzbekistan dated 11 December 2003. "On safeguard measures, anti-dumping and countervailing duties" provides for the imposition of countervailing duties to any imported goods, the manufacture, export or transportation of which had a specific subsidy of a foreign state (union of foreign states), if the results of the investigation revealed that imports of such goods into the customs territory of the Republic of Uzbekistan to cause or threaten to make serious harm to the economy.
Procedural rules imposing countervailing duties are the same as for the anti-dumping duties.
Countervailing duties in Uzbekistan were not applied.
Regime of protective measures
Law of the Republic of Uzbekistan dated 11 December 2003 "On safeguard measures, anti-dumping and countervailing duties" provides for the application of protective measures for any product, if the results of the investigation revealed that imports of the product into the customs territory of the Republic of Uzbekistan shall be exercised in such increased quantities (in absolute or relative terms to the total volume production of the same product in the Republic of Uzbekistan) and on such conditions which causes or threatening to make serious harm to the economy.
In order to ensure the import of consumer goods of a high quality, food, machinery, equipment and technologies, Cabinet of Ministers adopted a resolution on December 3, 1997 № 534 "On measures of implementation an independent examination of contracts and pre-shipment inspection of imported goods." This resolution is directed to implementation of an independent expertise by the consulting firms aimed to meet the quality, quantity, price level of imported goods and other contract terms, as well as conducting pre-shipment inspection.
Independent examination of import contracts and pre-shipment inspection of imported goods shall be carried out by the consulting firms that meet the requirements of the International Federation of Inspection Agencies and Accredited Agency "Uzstandard" in accordance with internationally accepted procedures agreed with the International Chamber of Commerce, the quality assurance standards of the exporter, the Agreement on Pre-shipment Inspection GATT / WTO.
Economic entities of the Republic of Uzbekistan, which import products, have a right to apply for consulting firms for examination of contracts and carrying out pre-shipment inspection.
In accordance with the resolution of Cabinet of Ministers dated on February 2, 2001 №66, since March 1, 2001 customs clearance in the regime of "release for free circulation (import)" for the following goods: meat and edible meat offal; dairy products; oil seeds and oleaginous fruits; alcoholic and non-alcoholic drinks; tobacco products; certain types of equipment and mechanical devices; electrical machinery and equipment, the total cost of which exceeds 10 thousand dollars, shall be subject to the mandatory implementation of the pre-shipment inspection except those, which were provided by legislation.
Conducting pre-shipment inspection is not applied to:
1. the supply of goods under contracts whose total value does not exceed 10 thousand dollars;
2. supplies of specific goods, the import of which is carried out under licenses issued by the Ministry of Foreign Economic Relations, Investments and Trade of the Republic of Uzbekistan.
Registration of import contracts
In accordance with Decree of the President of the Republic of Uzbekistan dated October 10, 1997 № УП-1871 "On additional measures to stimulate exports of goods (works, services)" licensing of export of goods (works, services) was canceled since November 1, 1997 with the exception of specific goods (weapons and military equipment, special components for their production, precious metals, alloys, products, ores, concentrates, waste and scrap of precious metals, precious stones and natural products, waste heat recovery powders and natural precious stones, pearls and glassware, amber glassware, uranium and other radioactive materials, products, waste radioactive material, devices and equipment using radioactive substances).
There is given a list of specific goods (works and services), export and import of which is carried out by permits issued by the competent authorities of the Republic of Uzbekistan in Annex №2 of the Cabinet of Ministers from March 31, 1998 № 137.
Prohibition of export
In enclosure №4 to Decree of the President of the Republic of Uzbekistan dated October 10, 1997 № УП-1871 there is set list of goods and products, which are prohibited to export. This list consist of: grain: wheat, rye, barley, oat, rice, corn, buckwheat; bakery, flour, groats, livestock, bird, meat and edible meat offal, sugar, objects of history, that have significant artistic, historic, scientific or other cultural value; vegetable oils, raw hides, furs, in particular astrakhan, crow and scrap of non-ferrous metals, silk cocoons suitable for reeling, raw silk, silk waste.
The procedure of issuing export licenses
The procedure of issuing export licenses for above mentioned specific goods is similar to procedure of issuing import licenses.
Customs value of exported goods
Due to Article 16 of Law of Republic of Uzbekistan “On customs tariff” the procedure of setting customs value of goods, exported from the customs territory of Republic of Uzbekistan, is determined by Cabinet of Ministers of Uzbekistan
In accordance with the Resolution of Cabinet of Ministers of the Republic of Uzbekistan dated 19th of September, 2007 №198 “On approval of regulation on the procedure of determining and declaring customs value of goods, exported from the customs territory of the Republic of Uzbekistan”, customs value of exported goods is set according to the cost that is paid or is going to be paid for exported goods, at the time of movement the product through the customs territory of Republic of Uzbekistan.
Value added tax on exports
In accordance with the Article 212 of Tax code of Republic of Uzbekistan sales turnover of goods (except cotton and lint) for export in foreign currency is charged of zero rate of value added tax.
Excise tax on exports
In compliance with the Article 230 of Tax code of Republic of Uzbekistan realization of excisable goods for export is not charged by excise tax, except the specific goods, which is set by Cabinet of Ministers of the Republic of Uzbekitan.
Movement of goods through the territory of the Republic of Uzbekistan in regime of transit is realized in any ways and directions with the permission of customs authority, except the cases, set in legislation and international agreements of the Republic of Uzbekistan.
In accordance with Article 16 of the Law of the Republic of Uzbekistan" On special transit cargo and troops" customs clearance of special cargoes during its transit is carried out, in accordance with the legislation, by the customs authorities during presentation of cargo customs declaration, permission for their transit, the certificate of origin of goods and other special documents required for customs clearance.
According to the Resolution of Cabinet of Ministers from 15th of May, 1998 №213 there is a prohibition to import and transit ethanol through the territory of Republic of Uzbekistan.
Transit of ethanol through the customs territory of Republic of Uzbekistan to the territory of the EurAsEC member states from third countries or from the territory of states - members of the Eurasian Economic Community to third countries, may be carried only by rail transport.