Why is this important
The new law changes the rules for calculating import duties from countries with which Uzbekistan does not have the most favorable treatment regime. This reduces the cost of importing goods, makes the system more flexible, and can stimulate foreign trade by expanding the range and lowering prices for businesses and consumers. It is expected that participants in foreign economic activity will adjust their logistics schemes and assortment of supplies. Businesses will be able to assess which product groups will be more profitable for import under the new tiered pricing system.
What happened
- Shavkat Mirziyoyev signed a law on adjusting the customs duties system.
- The document changes the mechanism for charging additional rates when importing goods from countries without RNB or with an undefined country of origin.
- Currently, such goods are subject to a double duty rate: the new law binds an additional duty to the base rate for a specific category of goods.
- The law will come into force after its official publication.
Numbers and facts
Instead of double rates, additional duties of 5−20% are being introduced for goods from countries without the most-favored-nation regime.
The additional payments will be as follows:
- at the base rate up to 10% — the additional duty will be 5%;
- at a rate of 10-20% – 10%;
- at a rate of 20-30% – 15%;
- at a rate of 30% and higher – 20%.
Thus, the fixed double rate is replaced by a stepped system that reduces the total amount of fees.
Context
- The most-favored-nation regime is an international trade principle according to which countries provide each other with equal preferential conditions.
- If the RNB is absent, the state traditionally applies higher protective duties.
- In Uzbekistan, for a long time, there was a strong protection system, under which goods from “unprivileged” countries automatically fell under double the rate.
- Reducing the load can stimulate the import of raw materials, components, and consumer goods, as well as increase competition in the domestic market.
