Vehicles, jewelry and more: Uzbekistan and Turkmenistan to exclude 30 products from Free Trade Agreement

As previously reported, the governments of Uzbekistan and Turkmenistan signed an agreement to establish a free trade regime in July 2024 during a meeting in Tashkent. However, as stipulated in the protocol, the trade liberalization will not extend to certain products.

According to the list of exemptions from the free trade regime, which includes 30 categories, the following goods will not be exempt from customs duties:

• White sugar (TN VED code 1701 1701)
• Tobacco products
• Powdered silver, unprocessed or semi-processed
• Base metals plated with silver
• Base metals and silver-plated articles
• Jewelry and its parts
• Goldsmith and silversmith wares
• Other precious metal products
• Coins
• Ethyl alcohol (with a concentration of 80% or more)
• Ethyl alcohol with a concentration below 80%
• Malt beer and beer-based beverages
• Ethyl alcohol with a concentration of 80% or more
• Vermouth and other grape wines flavored with plants or other aromatic substances
• Spirits, liqueurs, and other alcoholic beverages
• Buses and motor vehicles used for passenger transport with a capacity of more than 10 seats
• Cars
• Trucks
• Special-purpose vehicles, including emergency vehicles, cranes, concrete mixers, fire trucks, and street-cleaning vehicles

The free trade exclusions were established in a protocol signed by both countries in Tashkent in July 2024. This agreement outlines which goods are exempt from customs duties under the new trade regime.

According to the National Agency for Advanced Projects, Uzbek consumers and businesses have actively engaged in trade with Turkmenistan in recent years, with the total trade volume surpassing expectations.

However, the protocol also outlines certain provisions: as of now, free trade conditions will not be applicable to a list of 30 specified goods, including automobiles, tobacco products, alcoholic beverages, and certain precious metals and jewelry.

Additionally, it states that foreign e-commerce platforms that have not registered as taxpayers in Uzbekistan will not be able to operate within the country starting from March 2025. This decision aims to regulate foreign digital trade platforms and ensure compliance with national tax regulations.

The agreement on the exclusion list was signed in July 2024 during the official visit of the Turkmen delegation to Tashkent. The restrictions cover a variety of products, including vehicles such as passenger cars, trucks, and special-purpose vehicles like ambulances, cranes, concrete mixers, fire trucks, and cleaning machines.

The document also restricts free trade on alcohol and tobacco products, silver in various forms, and jewelry. This measure aims to regulate the market while ensuring compliance with international trade policies and maintaining stability in the region’s economic framework.

The free trade regime between the two nations is valid for an indefinite period; however, the list of exemptions may be revised based on future economic considerations.