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Kyrgyzstan asks Uzbekistan to increase maximum limit of import of goods

Kyrgyzstan asks Uzbekistan to increase the maximum limit of duty-free import of goods by individuals up to $ 1,000 for consumer goods for personal use. The Economy Minister of Kyrgyzstan Artem Novikov stated the day before at a meeting with the Minister of Foreign Trade of Uzbekistan Jamshid Khodjaev.

Gazeta.uz in early January published information on the possible abolition of Uzbekistan’s maximum limit of duty-free import. Now for individuals it is $ 10 for consumer goods imported from neighboring countries for personal use.

The maximum limit of duty-free import of goods from third countries to the territory of the Eurasian Economic Union by individuals for personal use is €1,500. The total weight of goods should not exceed 50 kilograms. If the goods are transported by air, its price should not exceed €10,000.

«The importance of the work carried out by the government of Uzbekistan on liberalizing foreign trade was noted. The substantial reduction in October 2017 of the list of excisable imported goods and the reduction of rates for some commodity items will positively influence the development of trade relations between the two countries,» the press service of the Ministry of Economy commented.

Today, the excise tax is still collected from a number of Kyrgyz goods (for example, mineral water, confectionery). Its high rates — from 20 to 50 percent of the cost — make the products of Kyrgyz producers uncompetitive in the Uzbek market.

So, on October 6, 2017, $ 3 million contract was signed between Kelechek CJSC and Honobod Savdo Hamkori LLC for the supply of Jalal-Abad 27 therapeutic table water. However, the deliveries were not carried out because of the unsolved issue on excise tax in Uzbekistan. The head of the Ministry of Economy asked his Uzbek colleague to help in solving the problem.

In addition, Artem Novikov asked for assistance in concluding a contract between Avtomash-Radiator LLC and Uzmetkombinat JSC for the supply of brass tape and copper foil with possible provision of a bank guarantee by Aiyl Bank OJSC.

It is planned to sign a new contract for 2018 between Avtomash-Radiator LLC and Uzmetkombinat JSC with an increase in the volume of purchases of copper-brass products to 1,200 tons (for $ 6 million).

Uzmetkombinat JSC offers to sign a contract on a prepaid basis. But such a scheme is difficult for Avtomash-Radiator in the financial plan taking into account the increase in supplies. The Kyrgyz plant proposes to conclude a contract on the terms of a deferred payment (90-180 days) with a possible provision of a bank guarantee by Ayil Bank.

Chuyururaltransservis LLC is interested in the resumption of supplies of barite concentrate to Uzbekistan. In addition, Kyrgyz enterprises proposed to consider the possibility of establishing trade and logistics centers in Kyrgyzstan and joint ventures on the basis of 42 existing, idle and put up for sale Kyrgyz enterprises.