Uzbekistan is making a significant shift in its trade policies by introducing export duties on leather and other raw materials starting from July 1, 2024. This move aims to bring export regulations in line with World Trade Organization (WTO) standards while strengthening domestic leather processing and manufacturing.
On March 14, 2024, President Shavkat Mirziyoyev signed a decree to reform Uzbekistan’s export framework. The new policy eliminates previous export permit requirements and replaces them with export duties on raw materials such as leather, silk, cotton yarn, and knitted fabric.
Under the new rules:
- Export duties will replace prior industry-imposed fees.
- Some duties will be phased in gradually on June 1, 2025, January 1, 2026, and January 1, 2028.
- Leather, which previously required government approval for export, will now be subject to specific export duties instead.
The decree introduces a range of export duties on strategic raw materials, including leather:
- Raw leather: 100% export duty
- Finished leather and semi-processed hides: New duties to be phased in
- Cotton lint: 100% duty
- Yarn: 2% (minimum $50 per ton), rising to 5% (minimum $125 per ton)
- Raw silk: 1% (minimum $500 per ton), with further hikes planned
These duties aim to ensure that leather and other valuable raw materials are processed locally rather than being exported in their raw form.
According to Azizbek Urunov, the president’s special representative for WTO affairs, these changes are designed to encourage local industries to process leather domestically rather than exporting it as raw material.
By keeping raw hides and skins within the country, Uzbekistan aims to develop its domestic leather industry, create more jobs, and increase the global competitiveness of Uzbek leather products.
Previously, the export of raw leather was only permitted with government approval, making the process complex and unpredictable. With the removal of permit requirements and the introduction of clear export duties, businesses now have more transparency and a stronger incentive to invest in local processing.
Uzbekistan previously abolished export duties in 1997, replacing them with bans and permit requirements. The current move marks a return to duty-based export regulation, particularly for strategic industries like leather.
In 2017, the country lifted its export ban list, allowing freer trade. However, the lack of clear criteria for granting export permits led to uncertainty in trade operations. The new duty-based approach resolves this issue, making the export process more structured and predictable.
