Uzbekistan has introduced a pilot mechanism for determining customs value and calculating import customs duties for processed products released into free circulation after processing within the customs territory.

The new framework will apply on an experimental basis until 1 March 2027 and is aimed at supporting domestic manufacturing while improving customs administration for processing operations.

New approach to customs duty calculation

 

Under the new regulation, imported raw materials and components used for processing will be subject to import customs duties regardless of their country of origin.

At the same time, exemptions and preferences established by legislation may continue to apply to the processed finished products themselves.

The regulation specifically addresses situations where customs duties applicable to imported raw materials and components exceed duties applicable to the finished products manufactured from them.

Formation of special product list

 

A special interagency commission on cooperation with the World Trade Organization will prepare and approve a list of products for which customs duties on imported raw materials exceed customs duties on finished products.

The list will be updated regularly and approved by the commission every month.

Business entities may also submit proposals for inclusion of products through the Agency for Industrial Cooperation and Public Procurement.

To qualify for inclusion:

• production facilities must already exist in Uzbekistan or there must be confirmed plans for localization of production;
• production standards, calculations and technological processes must be economically justified through feasibility studies;
• processing norms and calculations must be properly substantiated.

Customs duty calculation mechanism

 

The regulation establishes a formula-based mechanism for calculating customs duties on processed products released into free circulation.

The customs duty amount is calculated based on:

• the customs value of imported raw materials or components; and
• the customs duty rate applicable to the processed finished products.

The regulation also requires customs brokers or declarants to reflect the calculations in customs declarations in accordance with prescribed procedures.

Customs authorities will verify:

• correctness of customs valuation;
• proper application of customs duty rates;
• compliance of calculations with regulatory requirements.

Illustrative example included in regulation

 

The regulation includes a practical example involving LED lamp production.

The example demonstrates that importing individual components for local production may result in higher cumulative customs duties compared to direct import of finished LED lamps.

The mechanism is intended to address such disparities and support domestic manufacturing and industrial localization.

Implications

 

The new framework is particularly relevant for:

• manufacturing companies;
• industrial localization projects;
• customs brokers and logistics operators;
• importers using processing customs regimes;
• foreign investors involved in production activities in Uzbekistan.

The pilot mechanism may significantly affect customs cost structures for manufacturing businesses relying on imported components and raw materials.

The regulation entered into force on 21 May 2026 and will apply on an experimental basis until 1 March 2027.