Customs duty on solar panel components creates hurdles for energy projects in Uzbekistan

In preparation for the president’s dialogue with entrepreneurs, a roundtable discussion was held on August 1 to address the issues of exporting companies. One of the entrepreneurs spoke about the problems faced in importing solar panels for his company.

"We have launched two projects to use energy-efficient electricity. Currently, we are importing 6 megawatts of solar panels, with some already arriving. Our problem is that when we go through customs, if we import just the solar panels, it is duty-free. But if we import the solar panels along with additional components like cables and inverters, a 5% duty is charged.

We cannot use the solar panels without their components. Currently, we are facing an approximately $80,000 to $90,000 duty at a 5% rate for our 6 megawatts of solar panels. Two different HS codes are applied, even though it is a single integrated product,” said the entrepreneur.

He requested that the import of solar panels along with their components also be exempt from duty. "In Uzbekistan, the duty-free import of components has been granted to two companies," the entrepreneur added.

The Chairman of the Chamber of Commerce and Industry, Davron Vahobov, asked about the quality assurance of the solar panels being imported by the entrepreneur. "Does it meet the kilowatt specifications or not? Wouldn’t it be cheaper if you bought from a domestic manufacturer?" asked the Chairman.

"We offered the opportunity to about 10 local manufacturers in Uzbekistan, but they could not guarantee their product according to our requirements," the entrepreneur replied.

Davron Vahobov emphasized that he would take this as a suggestion.