Import duties will be revised and optimized.

July 4, 2019, 9:14

Import customs duties are proposed for revision. It is expected that the arithmetic average rate will increase from 5.9% to 9%, and the number of commodity items subject to zero rate will decrease from 62.7% to 40.1%

Import customs duties in Uzbekistan are proposed to be reviewed and optimized. This is provided for by the draft government decision, the press service of the Ministry of Investment and Foreign Trade (MIUT) reported. According to the agency, an analysis of the state of foreign trade processes in Uzbekistan has shown that with the current rates of customs duties, negative effects are possible for the development of the real sector of the economy.

“There is a situation in which the import of goods becomes profitable, and the industry can lose investment attractiveness and reorient themselves to the import of finished products,” the report says.

In accordance with the recommendations of the Council on Tariff and Non-Tariff Regulation, as well as on the basis of discussions at meetings and round tables with businessmen, manufacturers and business representatives, a draft government decision on the revision and optimization of import customs rates has been agreed.

It is based on the following principles:

  - natural raw materials and important socially significant goods (cereals, flour, ores and metal concentrates) - the customs duty rate is 0%;

  - commodities; goods not produced in the republic; socially significant goods; goods that have not been imported in the last 3 years - the rate of 2−5%;

  - semi-finished products or finished products, the production of which is inefficient from the standpoint of natural climatic conditions or economically impractical; ready-made and processed food products produced in the country, but not meeting current demand; goods whose production is increasing; food products with a relative negative impact on human health - the rate of 10−15%;

  - agricultural products produced in sufficient quantities and exported; finished products of final consumption, produced in the republic in volumes covering demand; luxury and non-essential goods that have a negative impact on human health (tobacco and alcohol) - the rate of 20−30%.

At the same time, for 197 commodity items that are not produced in the republic, it is planned to reduce the rates of customs duties: from 5% to 2% for 89 commodity items, from 10% to 5% for 79 items, from 20% to 2% for 7 positions. Based on market conditions for 2,818 items of goods, fees will be left unchanged.

At the same time, for 197 commodity items that are not produced in the republic, it is planned to reduce the rates of customs duties: from 5% to 2% for 89 commodity items, from 10% to 5% for 79 items, from 20% to 2% for 7 positions. Based on market conditions for 2,818 items of goods, fees will be left unchanged. 

The number of commodities subject to zero rate will decrease from 62.7% to 40.1%: more than 2500 positions of imported goods will be taxed at a rate of 2%, not previously used in the republic.

It is noted that the average rate fixed when joining the World Trade Organization of the Republic of Korea was 16.5%, Israel 22%, Indonesia 37.1%, Norway 20.1%, India 48.5%, Iceland 24% and Morocco - 41.3%.

In addition, the zero rate of customs duty, for example, in the European Union, applies to 16.7% of goods, India - 2.1%, European Economic Union - 15.8%, Turkey - 37.5%, and in Iran zero the rate does not apply at all, the report said.

Establishing new customs tariff rates is expected to create conditions for the development of high-value-added production and optimize imports, the ministry said.

The MIAT notes that the Council on Tariff and Non-Tariff Regulation on a permanent basis will monitor domestic and foreign markets, as well as foreign trade trends and price conjuncture, which will allow for prompt response to changes.

Previously, a number of entrepreneurs made proposals for increasing import duties.

 

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