Customs fees for certain categories of cars being drastically reduced

The President of the Republic of Uzbekistan Shavkat Mirziyoyev signed the decree “On additional measures to meet the needs of the population for light motor vehicles”, UzA reports.

According to the decision, the following customs duty rates are set until January 1, 2026, for new light motor vehicles (TN TIF code 8703 21 10, 8703 22 10 and 8703 31 10) that have not been manufactured for more than 1 year and have an engine volume of not more than 1,200 cm3:

• up to 1,000 cubic cm – 0% (in practice – 15% + 0.4 USD/cubic cm);
• 1,000-1,200 cubic cm – 5% (in practice – 15% + 0.6 USD/cubic cm).

As a result, the total amount of customs duties will be reduced from the current 39-43% to 19-23% for cars with an engine capacity of up to 1,000 cc, and from 44-52% to 30-36% for cars with an engine capacity of 1,000-1,200 cc.

How will the new decision affect the price?

What will be the impact on the prices of the President's decree, which will drastically reduce the customs rates for cars with engines up to 1,200 cc and 0% for cars up to 1,000 cc? Let’s see this with concrete examples.

For a car with a volume of 1,000 cubic centimeters

Let’s take as an example a car with a market price of $10,000 that belongs to this category. This includes the following mandatory fees:

Customs duty

• Before: $1,900 (15% + 0.4 USD/cubic cm).
• Now: $0 (0% off).
• The difference: $1,900

VAT (12%)

• Before: $1,428 (calculated after adding customs duty)
• Now: $1,200
• The difference: $228

Disposal fee (30 BCAs)

• About $846 (9 million 900 thousand soums)

Customs duty (0.2%)

• About $20

FINAL PRICE:

• Before: $14,194
• Now: $12,066
• The difference: $2,128

Therefore, for a car with an engine capacity of up to 1,000 cm3 and a price of $10,000, the mandatory fees will be reduced by approximately $2,128 (logistics costs are not taken into account in these calculations).

For a car with a cubic volume of 1,000-1,200 cc

An example of a car in this category (1,197 cm3) with a market price of $20,000 is taken. This includes the following mandatory fees:

Customs duty

• Before: $3,718 (15 percent + 0.6 USD/cubic cm).
• Now: $1,000 (5% off).
• The difference: $2,718

VAT (12%)

• Before: $2,846
• Now: $2,520
• The difference: $326

Disposal fee (120 BCAs)

• About 3,385% (39,600,000 soums)

Customs duty (0.2%)

• $40

FINAL PRICE:

• Before: $29,989
• Now: $26,945
• The difference: $3,044

So, for a car with an engine capacity of 1,000-1,200 cc and a price of $20,000, the mandatory fees will be reduced by approximately $3,044 (logistics costs are not taken into account in these calculations).