To increase jewelry export volumes, a proposal has been made to establish a zero customs duty rate for jewelry produced in Uzbekistan and exported to the United States under the Generalized System of Preferences (GSP). This initiative aims to enhance the competitiveness of Uzbek jewelry in the global market, as it was informed by presidential press service on June 19.
President Shavkat Mirziyoyev has reviewed a comprehensive plan aimed at enhancing the development of Uzbekistan's jewelry industry, supporting production and sales, and vitally increasing the export of finished products.
Current State and Potential
Despite Uzbekistan's rich gold reserves, only 6% of the gold mined in the country is currently processed, with exports from this sector amounting to just $78mn. Recognizing this untapped potential, President Mirziyoyev emphasized the need to create specialized jewelry zones with tailored conditions for entrepreneurs. This involves reassessing the raw material supply chain, enhancing specialist training, and optimizing the production and sales systems.
Strategic Proposals
The Ministry of Economy and Finance, along with the Chamber of Commerce and Industry, have put forward several strategic proposals to address these challenges:
Revamping Uzbekzargarsanoati Association: The plan includes improving the operations of the Uzbekzargarsanoati association, expanding its powers, and reorganizing its management system to better support industry needs.
Extending Benefits to Jewelers: To support jewelry manufacturers, it has been proposed that the benefits currently provided to members of the Hunarmand Association should also be extended to individual entrepreneurs within the Uzbekzargarsanoati Association.
Tax Incentives: The government is considering establishing a zero rate of customs duty and value-added tax (VAT) on imported equipment, packaging, and labeling materials that are not produced locally but are essential for the jewelry industry. This incentive is proposed to last until October 1, 2026.
Establishment of Jewelry Centers
The plan also includes the creation of special jewelry centers that encompass production, exhibition, and trading areas. Pilot projects for these centers are being considered in Tashkent and the Namangan region, aiming to provide a comprehensive ecosystem for the jewelry industry.
President Mirziyoyev has directed the relevant authorities to finalize these measures and develop a detailed program for the development of domestic jewelry production until 2027. This program aims to capitalize on Uzbekistan's potential and transform its jewelry industry into a significant contributor to the national economy.
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