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Uzbekistan to Reduce Import Duties on 14 Types of Raw Materials for Furniture Industry
The President stated that this measure will enhance the competitiveness of local products. The government also plans to centralize the import of wood and allow sole proprietors to hire up to five workers for furniture production.
Uzbekistan will reduce customs duties on imported raw materials used in furniture manufacturing. This was announced at a meeting chaired by the President on May 26, according to his press secretary Sherzod Asadov.
It was noted that imported raw materials account for 50–60% of the cost of furniture production. Manufacturers requested lower duties on fittings, accessories, paint, glue, particleboard, and other materials to reduce production costs.
“I approve this so that our products can be competitive,” said Shavkat Mirziyoyev.
The President instructed the Cabinet to draft a resolution to reduce customs duties to 1% for a period of three years on 14 types of raw materials, fittings, and accessories. Currently, customs duties reach up to 5% for fittings and components, 10% for upholstery fabric, and around 10% for particleboard.
Additionally, the import of wood and wood materials for the furniture industry will be centralized.
Last year, 920 new enterprises began operations in the furniture sector, with total output reaching 6.7 trillion UZS.
In order to significantly increase these figures, several issues must be addressed. Notably, 25–30% of furniture is produced at home. Many craftsmen aim to shift from cottage-level to industrial-scale production.
To support this, individual entrepreneurs will be allowed to hire up to five workers for furniture manufacturing. Young entrepreneurs seeking to start or expand their businesses will be eligible for concessional loans of up to 5 billion UZS for a period of seven years at an interest rate of 18% per annum.
In the furniture centers of the Altynkul and Khanka districts, more than 100 enterprises have already installed modern equipment and started mass production. Entrepreneurs who previously worked in cramped home workshops are now operating in unified production complexes under a cluster system.
The President also instructed the creation of similar furniture centers in Sharof-Rashidov, Yangi-Namangan, Pastdargom, Urtachirchik, Kuva, Buvayda, Yunusabad, and Uchtepa districts.
Last year, furniture exports from Uzbekistan reached $20 million. It was noted that with improvements in quality, design, and branding, exports could increase tenfold even with existing capacities.
To support this, the government will cover 50% of furniture companies' expenses for obtaining international certifications, as well as salaries for foreign designers, marketers, and engineering technologists. The subsidized exhibition space at international trade fairs will be increased from 20 to 40 square meters.
It was also instructed to attract qualified specialists and train 1,000 furniture workers annually in modern skills.
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