Uzbekistan to Scrap Duties on Inputs for 15 Products

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan plans to eliminate customs duties on imported inputs used in the production of 15 categories of goods.

The announcement was made on 28 March by Deputy Prime Minister Jamshid Khojaev during the first open dialogue of the Interagency Commission on Cooperation with the World Trade Organization (WTO) with business representatives.

According to Khojaev, the decision responds to numerous appeals from entrepreneurs highlighting imbalances in tariff policy. Specifically, finished imported goods are often exempt from duties or subject to reduced rates, while raw materials, components, and inputs for domestic production face higher tariffs.

He noted that such “tariff inversion” increases production costs, reduces the competitiveness of local manufacturers, and in some cases makes domestic production economically unviable. Additional pressure stems from non-tariff barriers and reliance on raw material supplies from CIS countries amid a complex geopolitical environment.

In December 2025, President Shavkat Mirziyoyev expanded the powers of the Interagency Commission on WTO cooperation, allowing it to authorize the import of certain goods under a processing customs regime, with the subsequent sale of finished products on the domestic market.

Within this framework, a working group analyzed and selected a list of goods for which the new mechanism will be applied on a pilot basis.

As an example, Khojaev cited the confectionery sector, where about 38% of inputs, particularly sugar, are imported from Belarus and Russia at prices of US$650–700 per tonne. Supplies from other countries, such as Brazil, could be cheaper at around US$500–550 per tonne, but current tariff conditions limit such opportunities. Annual demand for sugar from just 40 major enterprises exceeds 100,000 tonnes.

The proposed approach предусматривает the elimination of duties on raw materials, equipment, and components used in production under the processing regime. Value-added tax will be applied only when finished products are sold on the domestic market.

Chairman of the Customs Committee under the Ministry of Economy and Finance Akmalhuja Mavlonov added that the possibility of allowing domestically produced goods under this regime to be sold on the internal market is also under consideration.

Initially, the list included more than 40 items, but following consultations with businesses, it was reduced to 15 categories where local production of inputs is largely absent.

These include electric scooters, wheelchairs, sunflower oil, confectionery products such as chocolate, caramel, biscuits, and wafers, baby food, instant noodles, as well as jams, preserves, and sugar-containing beverages.

Khojaev emphasized that the new measure will help reduce production costs and create a more level playing field with imported goods.

The initiative will be implemented on a pilot basis and may be expanded further, taking into account feedback from the business community.