Up to 50% of transportation costs are reimbursed to Uzbek exporters

The Government of the Republic of Uzbekistan has decided to reimburse part of the transport costs to economic entities exporting their products to the countries not bordering Uzbekistan, EastFruit experts report, referring to the press service of the Ministry of Justice of Uzbekistan.

According to the Government Decree adopted on October 4, 2021, exporters can receive compensation from the state in the amount of up to 50% of their transportation costs for exported products. To receive compensation, the following conditions must be met:

• the exporter must be registered in the Republic of Uzbekistan;
• products must be locally produced;
• reimbursement of transportation costs to countries that do not border on Uzbekistan, with the exception of Afghanistan and other cases stipulated by the legislation of the republic;
• the goods must be placed in export regime, except for postal items not exceeding $5000;
• in an export contract, the transport costs for the product delivery must be borne by the exporter, who must make the payments.

The application and documents must be submitted to the Export Promotion Agency in person, by mail or via the agency’s website. The decision to grant compensation is taken by the competent authority. There is no application processing fee.

The grounds for refusing to pay compensation may be in case of:

• the submitted documents not meeting the established requirements;
• inaccurate information in documents or distortion of information;
• the subsidies allocated for this year having run out.

The decision to reimburse Uzbek exporters up to 50% of transport costs was also made last year. The Regulation on the procedure for granting subsidies from the State Budget of the Republic of Uzbekistan for partial compensation of road, air and rail transportation costs was approved at the end of 2020. Under the Regulation, exporting enterprises and/or their authorized representatives could receive compensation in the amount of up to 50% of their transportation costs for exported products.