Uzbekistan to create bonded industrial zones with tax-free import of raw materials

Uzbekistan plans to establish bonded industrial zones (BIZs) within the Navoi, Jizzakh, Namangan, Urgut, and Khazarasp special economic zones. These zones are designed to stimulate the production of 50 types of products identified as priority localization areas.

Entrepreneurs operating in the BIZs will be completely exempt from all taxes and customs duties on imported raw materials and components. If the localization level of manufactured products reaches 30-40%, the preferential treatment will also apply to the domestic market.

An integrated system will be created within the BIZs, bringing together R&D centers, laboratories, and engineering and technology services. $50 million will be allocated to provide entrepreneurs with ready-made buildings and the necessary infrastructure.

At the same time, land use procedures will be reformed. Khokims will begin auctioning off land plots as ready-made packages, including a construction permit, architectural planning specifications, and a project plan. This will allow entrepreneurs to avoid spending six months to a year gathering documents and begin construction immediately on the purchased plot.

The advance payment for the infrastructure fee during construction will be reduced from 20% to 5%.

The sale of 2,500 properties on bank balance sheets, worth a total of 9 trillion soums, will also be permitted. These properties will be available for purchase at a reduced price, without a down payment, and with an interest-free installment plan. Buyers of these properties will be exempt from land and property taxes for one year.