Uzbekistan flattens car duty: small engines pay more

For an importer in Central Asia, what matters is not whether duty goes up or down but that the tiers disappear: small engines get dearer, large ones get cheaper, and model choice flips. Rates now run 15% below 1.6 litre, 25% from 1.6 to 2.5, and 35% above that, moving to one 20% band.

Presidential decree UP-174 approved a customs strategy through 2030: simpler clearance, no engine-size tiers, a single 20% import duty, and no advance payment requirement. The payment change lands first, the flat rate is set for 2027.

Take an SUV at 12,000 USD CIF with a 2.0 litre engine. Duty at 25% is 3,000 USD; VAT of 20% on a 15,000 USD base is another 3,000 USD, so tax is 6,000 USD and landed cost sits near 18,000 USD.

Scrapping advance payment does more for cash flow than the rate itself. On 30 units at 12,000 USD CIF, duty and VAT previously locked close to 180,000 USD for two to three weeks at clearance. That money can now turn once more on the buying side. Split the order book: push 1.5 litre family cars and small EVs while the 15% band lasts, and shift 2.0 litre SUVs later.

Three steps. Ask the supplier for two quotes by engine size, one under the current tiers and one at a flat 20%, and write the switch date into the contract. Count the cash released by the end of advance payment, close to 180,000 USD on a 30-unit batch, and put it into a parts kit or demo cars. Check the build year on every used unit, because 8 years is a hard line. Send model, engine size, volume and port for a landed-cost comparison.