Uzbekistan has launched a significant regulatory initiative aimed at transforming its polymer manufacturing landscape by eliminating taxes and customs duties on key raw materials. The presidential decree signed on August 18, 2025, creates a comprehensive support framework for domestic enterprises producing high value-added polymer products from ethylene and propylene.
Starting September 1, 2025, and continuing through January 1, 2028, the country will implement a zero excise tax rate on polyethylene granules that are not manufactured domestically and are imported according to an approved list. This move eliminates the current 10% excise tax burden that has been significantly inflating production costs for polymer processors.
The regulatory package extends beyond excise tax relief to include complete elimination of customs duties on imports of specific primary forms of ethylene and propylene polymers. The affected categories include goods under customs codes 3901 10 900 0, 3901 30, 3901 40, and 3902 10 000 0, which currently carry a 5% import duty. These materials encompass polyethylene with specific gravity below 0.94, ethylene-vinyl acetate copolymers, ethylene-alpha-olefin copolymers, and polypropylene.
Quality control measures intensify
Alongside the tax incentives, Uzbekistan’s Customs Committee and the Agency for Technical Regulation will strengthen measures against counterfeit and low-quality flexible packaging imports. The initiative targets polyethylene and polypropylene films, non-woven materials, and other products that could undermine the domestic market’s integrity.
Strategic implications for international business
This regulatory shift creates substantial opportunities for international companies across multiple sectors. For construction industry players, the reduced costs of polymer raw materials will make Uzbek-manufactured building components, insulation materials, and construction packaging more competitive both domestically and for export. International construction firms operating in Central Asia could benefit from more affordable polymer-based materials sourced locally.
Manufacturing companies specializing in polymer processing equipment, molds, and production technologies will find an expanding market as Uzbek enterprises scale up their operations with improved cost structures. The furniture and interior design sectors stand to gain from cheaper polymer components used in modern furniture production, decorative elements, and innovative interior solutions.
The regulatory framework also opens doors for joint ventures and foreign investment in polymer processing facilities, particularly for companies looking to establish regional manufacturing hubs serving Central Asian and neighboring markets. With raw material costs significantly reduced, international partners can expect improved return on investment timelines and enhanced competitiveness in regional trade corridors.
