The President’s draft Additional Measures for Development of Leather, Footwear and Fur Industries and to Stimulate the Manufacture of Import-Substituting and Export-Oriented Products decree has been published for public input.
In particular, as of July 1, 2019 the draft proposes the following policy changes:
- increase the customs duty on imported shoes & footwear (HS code 6401 - 6405) from 10%, but not less than US$ 1.5/pair, up to 30%, but not less than US$ 5/pair ;
- manufactured raw materials and semi-finished products for intra-industry sales shall not be subject to taxation;
- price preferences of up to 20% for local manufacturers for public procurement (including strategic purchasers) of shoes, footwear, leather goods, wool products, karakul and artificial leather shall be introduced.
In addition, from the next year, it proposes to raise the fee for permits for export of semi-finished leather goods (HS codes 4104, 4105, 4106 21 000 0) from 5% to 20% of their cost.
Along with this, the local enterprises will be helped with the import of modern equipment through lending and compensation of part of interest by the State Business Support Fund.
Idle state-owned property will be handed over to member organizations of the Uzcharmsanoat association, with tax breaks and waivers offered.