From January 1, 2019, a new procedure for imposing customs duties on certain types of passenger vehicles will be introduced in Uzbekistan, Kun.uz correspondent reports. 
  
According to the deputy head of the State Customs Committee (SCC) Farrukh Fayzullayev, on January 1 of 2019, a new order will be introduced in the country. It will affect new passenger vehicles worth the equivalent of $ 40,000 and above. Those cars, which are manufactured within the last two years, will be subject to reduced rates of customs duties. 
 
He stated that the import duty will not be applied to these cars, they will need to be paid both excise tax and VAT in the amount of 20% only. Cumulative rate of customs payments will be 44% of the value of the imported car. 
  
For example, a car which costs $ 40,000 should be paid approximately $ 17,600 for its customs clearance. 
 
“Customs duty rates for other cars that are not in this category remain unchanged. Worldwide, any country protects local manufacturers. Middle-class cars are manufactured in the country, there is GM Uzbekistan. New manufacturers are being negotiated to enter the domestic market, set up their production here. Therefore, the state protects its manufacturers in some ways. That’s why imposition of taxes has been introduced in relation to premium-class cars as they are not produced in large quantities at us,” Mr. Fayzullayev said. 
 
It should be recalled that the new order is considered by the presidential decree “On measures to further streamline foreign economic activity and improve the system of customs-tariff regulation in the Republic of Uzbekistan”, which was adopted on June 29, 2018. 
  
The document also establishes a zero rate of customs duty on electric vehicles.