Uzbekistan has introduced a temporary mechanism for settling overdue export debt.
The President of Uzbekistan has introduced a temporary measure allowing businesses to pay off overdue export receivables at their own expense until 2027.
**Uzbekistan introduces temporary mechanism for repaying overdue export debt**
Uzbek President Shavkat Mirziyoyev signed a decree establishing a temporary procedure for repaying overdue accounts receivable incurred by businesses as a result of foreign trade operations.
The document notes that entrepreneurs incurred these debts due to instability in global markets, restrictions on external payments and bank settlements, and the late fulfillment of obligations by some foreign counterparties.
According to the decree, a one-time nationwide campaign will be held until January 1, 2027. As part of this campaign, businesses will be given the opportunity to repay overdue accounts receivable from their own funds in cases where the repatriation of assets from export operations was not ensured within the established timeframe.
This promotion applies to debts incurred prior to the decree's entry into force as a result of the actual export of goods, works, or services for which the foreign counterparty failed to make payment on time, and which are reflected as overdue in the E-kontrakt foreign trade information system.
This promotion does not apply to legal entities in whose authorized capital the state holds a 50 percent or more stake, nor to organizations in which such legal entities own 50 percent or more.
This promotion allows for the settlement of overdue debts by depositing foreign currency into the company's accounts through the servicing bank's cash desk. A passenger customs declaration or power of attorney is not required for this. Once these funds are credited, the amount of overdue debt in the E-kontrakt system will be automatically reduced, and the uncollected portion of the fine for failure to provide repatriation will be written off proportionally to the deposited amount.
It is important to note that the funds credited will not be recognized as foreign exchange earnings from exports and will not entitle the holder to a zero value-added tax rate.
A separate section of the decree provides for mitigation of penalties for good faith efforts to ensure the repatriation of assets. Effective January 1, 2027, the court will halve the fine for failure to ensure repatriation if at least one of the following conditions is met: if the resident has taken all reasonable measures to protect their rights, including filing a lawsuit or arbitration; if more than 50 percent of assets have been repatriated; or if repatriation was limited by international sanctions, bans on foreign exchange transactions, or disruptions in the banking and payment systems in the counterparty's country—except in cases of force majeure. This mitigation also does not apply to organizations with a state stake of 50 percent or more.
The decree instructs the Supreme Court to prepare draft amendments to the Law "On Currency Regulation" within one month. The Business Ombudsman and the Chamber of Commerce and Industry are required to approve a plan to explain the campaign's nature within one week, in conjunction with commercial banks, the Customs and Tax Committees, the Council of Ministers of Karakalpakstan, and regional and Tashkent khokimiyats. The Customs and Tax Committees are required to send notifications about the campaign to businesses with overdue debt.
The Tax Committee, together with the Customs Committee and the Central Bank, will provide monthly updates to the Presidential Administration on the campaign's progress, and a final report on the results is due by February 1, 2027.