In a significant move to bolster its textile and clothing industry, Uzbekistan has abolished customs duties on the import of raw materials for textiles until January 1, 2027. This decision, in line with a presidential decree “On measures for the development of the textile and clothing industry,” aims to enhance the production capabilities of the sector, reports a Podrobno.uz correspondent.
The decree stipulates that imports of raw materials, components, spare parts, and other materials essential for textile production that are not produced domestically will be exempt from customs duties. This measure is expected to reduce production costs and encourage the growth of the textile industry in Uzbekistan, making it more competitive on the global stage.
In addition to the customs duty exemption, the decree introduces several other supportive measures. From May 1, 2024, to May 1, 2026, there will be no tax audits (except for criminal ones) in the textile, clothing, and knitwear industry for businesses of category “A” and above. Moreover, VAT refunds will be processed in one day without inspections, providing a significant financial relief and improving cash flow for businesses in this sector.
Furthermore, starting May 1, 2024, the Joint Stock Company “Trade Development Company” will begin offering financial support to banks. This support will cover 70% of loans under letters of credit issued to exporting enterprises in the textile and sewing and knitting category “A” and above. This initiative is designed to facilitate access to credit and promote export activities, thereby expanding the international reach of Uzbekistan’s textile products.
In a bid to further promote national products, shops under the brand “Made in Uzbekistan” will be opened in large shopping centers in Tashkent and other regional cities. These shops will showcase and sell a variety of domestically produced goods, highlighting the quality and craftsmanship of Uzbek textiles and clothing. This move is expected to boost the visibility of local brands and foster consumer appreciation for homegrown products.
These initiatives reflect the Uzbek government’s strategic focus on developing its textile and clothing industry, which is a key driver of economic growth and employment in the country. By creating a more favorable business environment and providing targeted support, Uzbekistan aims to strengthen its position in the global textile market and increase the contribution of this sector to the national economy.
Industry experts have welcomed these measures, noting that they will significantly enhance the competitiveness of Uzbek textile products. The abolition of customs duties on raw materials, coupled with financial and regulatory support, is expected to attract new investments and stimulate innovation within the industry.
The establishment of “Made in Uzbekistan” shops will also play a crucial role in promoting national products, allowing consumers to easily access and purchase high-quality Uzbek textiles. This initiative aligns with broader efforts to diversify the country’s economic base and reduce dependence on traditional export commodities.
As these measures take effect, the textile and clothing industry in Uzbekistan is poised for substantial growth, paving the way for increased production, higher exports, and greater economic resilience. The government’s proactive approach in supporting this vital sector underscores its commitment to sustainable development and economic diversification.
