The book titled "The World Financial and Economic Crisis and Uzbekistan's Path and Measures to Tackle the Crisis" written by President Karimov of Uzbekistan was recently published. The author put forward specific viewpoints and conclusions through comprehensive and objective analysis and research on crisis-related issues. One of them is "Uzbekistan restricts the import of foreign low-cost consumer goods".
Pursuant to the Uzbek Cabinet’s Resolution on Organizing Measures for Trade in Light Industrial Products Trade (No. 25 of January 28, 2009), aimed at promoting market research, increasing the export potential of Urumqi’s light industrial companies and promoting the export of domestic textile products . At the same time, the implementation of measures can increase the operating rate of existing enterprises in Uzbekistan and the production capacity of new enterprises to protect the interests of domestic producers. The resolution also designated a specialized agency responsible for attracting foreign buyers to participate in Uzbekistan-related trade fairs to promote the export of Uzbekistan's textile products. The key sales regions are the Commonwealth of Independent States, Southeast Asia, and the Near East.
In order to increase the awareness of local residents on domestic consumer goods and light textile products, Ukraine began to strictly limit foreign imports of low-cost consumer goods. The specific measure is to reduce the natural person's limit on tax-free consumption from foreign countries, from the original 50 US dollars to 25 US dollars. That is, importing consumer goods over US$25, it is required to pay customs duties, consumption tax, and value-added tax in full. According to commercial estimates, if purchasing consumer goods (mainly clothing and footwear) from foreign countries, customs declaration and taxation fees are at least twice the value of goods.
At present, Uzbekistan's self-produced consumer goods are very weak, and it basically depends on imports from China, Turkey, and South Korea. Therefore, the above measures of the Ukrainian government will affect China's export of textile products to Uzbekistan. The Business Office advises companies not to expect to expand the export of textile products to Uzbekistan, nor buy shares of bankrupt textile companies in the region. What can be done is to participate in the localization process of the Ukrainian industry, invest in the construction of the Ukrainian special economic zone, underdeveloped Uzbekistan, but encouraged by its policies to attract investment, such as leather processing and shoemaking complexes. The Ministry of Foreign Economic Relations and Trade hopes that Wenzhou Bohai Shoe Co., Ltd. will set up a plant in Navoi SEZ.
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