UNDP Uzbekistan

printer-friendly 25/04/2007

A round-table entitled “The new revision of Customs Code: presentation of the prepared draft document and discussion of the order of its further consideration” was held at "Dedeman Silk Road Tashkent Hotel on April 19, 2007.

Strengthening economic growth of Uzbekistan to a large extent depends on development of the country’s foreign economic activity. Acceleration of economic growth in 2004-2005 was largely due to a significant increase in the foreign trade turnover with Uzbek exports increasing twofold in 2003-2007, from US$3.7 billion to US$7.6 billion. The expansion was a result of measures undertaken on liberalization of foreign trade and currency policies, stimulation of private sector development and favorable trends in world markets.

However, customs clearance procedures are still time consuming and cause substantial costs for participants of foreign economic activity. The customs regulatory framework is rather complicated and confusing, and its administration lacks transparency. This is mostly due to the fact that current Customs Code of Uzbekistan is not an act of direct action and customs administration is carried out based on many by-laws (over 350), which sometime contradict the Customs Code. National customs legislation and customs bodies’ services are not adequately harmonized with international standards.

In this regard the Government of Uzbekistan put forward a task of developing a new revision of Customs Code, which should become a regulatory act of a direct action and conform to international standards and agreements. Thus customs regulation should become an effective tool for creation of more favorable conditions for broad participation of private sector in country’s foreign trade activity. Efficient activity of a single entrepreneur as well as the country’s economy depends on transparent, uncomplicated customs procedures and precise regulation of rights and duties of business entities and customs bodies.

With the purpose of providing assistance for modernizing the system of customs administration, unification of customs procedures with international standards, ensuring transparency of customs administration and efficiency of the customs control as well as establishing extensive policy dialogue with participation of all involved parties in the process of elaboration of the new Customs Code, United Nations Development Program jointly with State Customs Committee of the Republic of Uzbekistan (SCC) is carrying out the “Improving the System of Customs Administration in the Republic of Uzbekistan” Project.

The Working Group, established by the Government and comprised of representatives of Government bodies, private sector, scientific institutes and international organizations has been carrying out the work of developing the draft Customs Code in new revision.

The organized round-table gave its participants the opportunity to discuss prepared draft document, evaluate its conformity with international standards and agreements, and continue constructive consultations on of the draft Customs Code.

Open discussions and exchange of opinions held during the course of the round-table among entrepreneurs, representatives of scientific and research institutions as well as government officials confirmed that the governmental working group accomplished a significant task of preparing the new draft Customs Code of a direct action, conforming to major international standards and norms. However, consultations on such key issues as customs regimes, correct classification of goods, customs valuation methods, terms and orders of customs clearance and declaration of goods, post-customs control and others are still being carried out both on the experts level, and within business society and private sector.

Efficiency of the on-going customs reform as a whole and elaboration of the new Customs Code in particular, heavily depends on precise consideration of opinions and interests of business entities engaged in foreign trade activity. In this regard it is important to maintain a constant and constructive policy dialogue among the Government, private sector and other involved parties, thus providing opportunities for the joint analysis and search for favorable solutions of unresolved issues of the current draft document.

With an aim of development of the ways and order for expanding directions and strengthening the initiated dialogue, ensuring more active participation of all stakeholders in the process of further elaboration of the draft Customs Code, participants of the round table agreed to develop a Joint Action Plan on further consideration of the major clauses of the draft Customs Code through active participation of business entities, business-support institutions, scientific and research institutes as well as international organizations in this process.