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Uzbekistan revises tariff policy and introduces moratorium on exporters’ penalties

Uzbekistan is set to overhaul its import tariff structure and introduce new business-friendly measures following a high-level meeting between President Shavkat Mirziyoyev and the country’s entrepreneurial community on August 20, 2025. The comprehensive policy shift signals the government’s commitment to creating a more competitive manufacturing environment while addressing the needs of export-oriented businesses.

Manufacturing Relocation Incentives Expand Beyond Textiles

The president reiterated his administration’s support for textile enterprises willing to relocate from the capital and regional centers to districts with abundant labor resources and available land. These businesses can access substantial financing packages of up to 10 billion sums to facilitate their expansion. More significantly, Mirziyoyev expressed readiness to extend similar incentive programs to enterprises from other labor-intensive sectors, potentially opening new opportunities across multiple manufacturing industries.

Strategic Raw Material Import Relief

In a decisive move to ensure cost-effective access to essential production inputs, the government will eliminate customs duties on imports of mixed fabrics and yarn until January 1, 2028. This three-year duty exemption represents a strategic effort to reduce production costs for manufacturers while maintaining competitive pricing in both domestic and export markets. The measure specifically targets the provision of affordable raw materials to support the country’s growing textile and apparel manufacturing sector.

International Business Implications

These regulatory developments present compelling opportunities for international companies across multiple sectors. Foreign textile and apparel manufacturers can benefit from reduced raw material costs through the duty exemption program, while the government’s willingness to extend relocation incentives beyond textiles creates potential entry points for furniture manufacturers, construction material producers, and other labor-intensive industries. The comprehensive tariff review suggests a broader modernization of Uzbekistan’s trade framework, potentially reducing operational costs for international businesses seeking to establish manufacturing bases or expand their supply chain networks in Central Asia.

For international furniture and interior design companies, these measures could facilitate more cost-effective sourcing of textile components and raw materials, while construction sector players might find opportunities to leverage the government’s supportive stance toward manufacturing relocation. The policy framework indicates Uzbekistan’s strategic positioning as a manufacturing hub, offering international businesses a pathway to access both regional markets and benefit from the country’s growing emphasis on export-oriented production capabilities.

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