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Administrative legal aspects of customs administration
in Uzbekistan
Dildora MUKHIDDINOVA
Tashkent State University of Law
ARTICLE INFO
ABSTRACT
Article history:
Received February 2024
Received in revised form
28 February 2024
Accepted 20 March 2024
Available online
15 April 2024
This article examines the administrative legal aspects of
Customs administration in Uzbekistan. It analyzes the country's
Customs Code, regulations, and procedures, benchmarking
them against international standards and best practices.
Despite progress in modernizing its legal framework,
Uzbekistan faces challenges in implementing risk-based
controls, Customs valuation, trade facilitation, and automation.
The article recommends streamlining processes, expanding the
Authorized Economic Operator program, aligning with WTO
rules, fostering public-private partnerships, and leveraging
technology.
2181-
1415/©
2024 in Science LLC.
https://doi.org/10.47689/2181-1415-vol5-iss3/S-pp147-152
This is an open access article under the Attribution 4.0 International
(CC BY 4.0) license (https://creativecommons.org/licenses/by/4.0/deed.ru)
Keywords:
customs administration,
trade facilitation,
risk management,
customs valuation,
automation.
O‘zbekistonda bojxona boshqaruvining ma’muriy
-huquqiy
jihatlari
ANNOTATSIYA
Kalit so‘zlar
:
bojxona boshqaruvi,
savdo tartiblarini
soddalashtirish,
xavflarni boshqarish,
bojxona qiymati,
avtomatlashtirish.
Ushbu maqolada O‘zbekistonda bojxona boshqaruvining
ma’muriy
-
huquqiy jihatlari o‘rganildi.
Unda mamlakatning
Bojxona kodeksi, normativ hujjatlari va protseduralari tahlil
qilindi hamda ular xalqaro standartlar va ilg‘or tajribalar
bilan taqqoslandi. Shuningdek, maqolada jarayonlarni
optimallashtirish, vakolatli iqtisodiy operatorlar dasturini
kengaytirish, qonunchilikni JST qoidalariga muvofiqlashtirish,
davlat-xususiy sheriklikni rivojlantirish va texnologiyalardan
foydalanish bo‘yicha tavsiyalar berildi.
1
Independent researcher, Tashkent State University of Law, Tashkent, Uzbekistan. E-mail: d.muxiddinova@tsul.uz
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148
Административно
-
правовые аспекты таможенного
администрирования в Узбекистане
АННОТАЦИЯ
Ключевые слова:
таможенное
администрирование,
упрощение процедур
торговли,
управление рисками,
таможенная оценка,
автоматизация.
Эта статья посвящена изучению административно
-
правовых аспектов таможенного администрирования в
Узбекистане. Она включает анализ Таможенного кодекса
страны, нормативных актов и процедур, их сравнение с
международными стандартами и лучшими практиками.
Несмотря на значительные шаги в модернизации правовой
базы, в статье отмечается, что Узбекистану предстоит
решить ряд проблем, связанных с внедрением контроля на
основе анализа рисков, проведением таможенной оценки,
упрощением торговых процедур и их автоматизацией.
В качестве рекомендаций предлагается оптимизация
процессов, расширение программы для уполномоченных
экономических операторов, приведение законодательства
в соответствие с нормами ВТО, развитие государственно
-
частного партнерства и применение новых технологий.
INTRODUCTION
Uzbekistan, located in Central Asia, gained independence in 1991 and has since
undergone significant economic and legal reforms as it transitioned from a centrally planned
to a market-based economy. As a landlocked country, Uzbekistan heavily relies on
international trade for its economic growth and development. Consequently, the Customs
administration plays a vital role in facilitating cross-border trade, collecting government
revenue, and ensuring compliance with trade laws and regulations [1]. Efficient and effective
Customs administration is crucial for Uzbekistan to promote trade, attract foreign
investment, and integrate into global value chains. This article aims to examine the key
administrative legal aspects of the Customs administration framework in Uzbekistan,
identify strengths and weaknesses, and propose recommendations for further reform.
METHODS
This study primarily relies on a qualitative review and analysis of Uzbekistan's
primary Customs legislation, regulations, and administrative procedures. The key legal
documents analyzed include the Customs Code of the Republic of Uzbekistan, decrees of
the President, resolutions of the Cabinet of Ministers related to Customs affairs, and
orders of the State Customs Committee. Additionally, a comparative analysis is conducted
to benchmark Uzbekistan's Customs administration framework against international
standards and best practices promulgated by the World Customs Organization (WCO).
Relevant academic literature, reports by international organizations, and media articles
are also consulted to provide context and insights.
RESULTS
Legal Framework.
Uzbekistan's current Customs Code, which was adopted in
2016 and came into force in 2017, serves as the primary legal instrument governing all
aspects of Customs affairs in the country [2]. The Code consists of 57 chapters and
491 articles, covering a wide range of topics such as Customs controls, Customs
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payments, Customs regimes, Customs value, Customs brokers, and the powers and
responsibilities of Customs authorities. The State Customs Committee (SCC) under the
Cabinet of Ministers is the central competent authority responsible for implementing
Customs legislation and overseeing Customs operations throughout the country [3].
The Customs Code adheres to several key principles that are in line with
international standards and best practices. These include transparency, predictability,
trade facilitation, risk management, and automation [4]. For instance, the Code requires
the publication of all Customs laws, regulations, and administrative rulings, and provides
for the right to appeal against Customs decisions. It also mandates the use of advanced
information technologies such as electronic submission of Customs declarations and
supporting documents to streamline clearance processes and reduce face-to-face
interactions between Customs officers and traders.
Moreover, Uzbekistan has taken steps to harmonize its Customs legislation with
international conventions and agreements. In 2021, Uzbekistan acceded to the
International Convention on the Simplification and Harmonization of Customs
Procedures (Revised Kyoto Convention), which sets global standards for modern
Customs procedures [5]. Although Uzbekistan is not a member of the WTO, it has
expressed interest in joining and has been working to align its trade policies and
practices with WTO rules and standards [6].
Customs Control and Risk Management.
A key aspect of Uzbekistan's Customs
administration is the use of risk management approaches for Customs control. The
Customs Code stipulates that Customs controls should be based on risk analysis and
selectivity, with a focus on high-risk consignments while facilitating the movement of
low-risk goods [7]. The SCC has adopted a risk management system that incorporates
data mining, intelligence sharing, and profiling techniques to identify and target high-risk
shipments for physical inspection or document examination.
However, despite the legal provisions for risk-based Customs control,
implementation remains a challenge. Studies have shown that Uzbekistan's Customs
administration still heavily relies on physical inspections, with inspection rates exceeding
50% of total imports, which is significantly higher than the international average of
around 10% [8]. This suggests that risk management is not being effectively utilized to
guide selectivity and allocation of scarce Customs resources. High inspection rates lead to
delays in Customs clearance, increased trade costs for businesses, and opportunities for
rent-seeking behavior by Customs officials.
Another area where Uzbekistan's Customs administration falls short compared to
international best practice is the use of post-clearance audit (PCA). PCA is a modern
Customs control method that allows for the release of goods before completing all
Customs formalities and instead verifies compliance through audits of traders' books and
records after the release of goods [9]. While the Customs Code provides for PCA, it is not
widely used in practice due to capacity constraints and the lack of a risk-based approach
to selecting traders for audit.
Customs Valuation.
Determining the Customs value of imported goods is crucial for
assessing Customs duties and other taxes. Although Uzbekistan is not a member of the WTO,
it has adopted the principles of the WTO Agreement on Customs Valuation (ACV) in its
national legislation. The ACV establishes a fair, neutral, and uniform system for the valuation
of goods for Customs purposes, based on the transaction value of the goods [10].
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However, studies have revealed that Uzbekistan's Customs administration
frequently deviates from the ACV principles and instead uses reference prices or
minimum values for assessing Customs duties, particularly for agricultural products,
textiles, and vehicles [11]. The use of reference prices contradicts the ACV and can lead to
the overvaluation of goods, resulting in higher duties and taxes for importers. It also
creates uncertainty and unpredictability for businesses, as the actual Customs value may
differ from the declared value.
To address this issue, the Customs Code provides for the right of importers to seek
advance rulings on Customs valuation from the SCC. Advance rulings provide certainty to
traders regarding the Customs value of their goods before importation, thus reducing the risk
of disputes and delays at the border. However, the uptake of advance rulings by the private
sector has been limited, possibly due to the lack of awareness or trust in the system [12].
Trade Facilitation.
Uzbekistan has introduced several trade facilitation measures
in recent years to simplify and streamline Customs procedures and reduce the time and
costs of trading across borders. One notable initiative is the Single Window for Export-
Import Operations, which allows traders to submit all required documents and data
through a single electronic portal, instead of dealing with multiple government agencies
separately [13]. The Single Window integrates Customs, tax, transport, and other border
regulatory agencies, enabling faster and more efficient processing of trade documents.
Another trade facilitation measure is the Authorized Economic Operator (AEO)
program, which provides simplified Customs procedures and reduced physical
inspections for trusted traders who meet certain criteria related to compliance, record-
keeping, and financial solvency [14]. However, unlike many other countries, Uzbekistan’s
AEO program is limited in scope and does not offer significant benefits to participating
traders, such as expedited clearance, reduced documentary requirements, or deferred
duty payments.
Furthermore, Uzbekistan has yet to fully implement some of the key trade
facilitation measures recommended by the WCO, such as pre-arrival processing of import
declarations, separation of release from the final determination of Customs duties, and
publication of average release times [15]. These measures can significantly reduce
border delays and enhance predictability for traders.
Customs Automation.
Uzbekistan has made significant progress in automating
Customs procedures and adopting electronic data interchange (EDI) systems. The Unified
Automated Information System of the State Customs Committee (UAIS) is the main platform
for the electronic submission and processing of Customs declarations and supporting
documents [16]. The UAIS covers all stages of the Customs clearance process, from the
registration of goods to the payment of duties and taxes and the release of goods.
The implementation of the UAIS has brought several benefits, such as reduced
paper documentation, faster processing times, and improved data accuracy and
transparency. However, the system still faces challenges such as frequent technical
glitches, insufficient integration with other government agencies' systems, and the need
for further simplification and standardization of data requirements [17].
Moreover, while the UAIS has automated many routine Customs procedures, it has
not yet fully leveraged advanced technologies such as artificial intelligence, machine
learning, and blockchain to enhance risk management, fraud detection, and trade
facilitation [18]. These technologies can enable more targeted and efficient Customs
controls while facilitating legitimate trade.
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DISCUSSION
Uzbekistan has made commendable efforts to modernize its Customs
administration legal framework and align it with international standards and best
practices. The adoption of the new Customs Code in 2016 and the accession to the
Revised Kyoto Convention in 2021 were significant milestones. The legal framework
incorporates key principles such as transparency, predictability, trade facilitation, and
risk management, which are essential for a modern and efficient Customs administration.
However, gaps remain between the legal provisions and their practical
implementation. Customs controls still heavily rely on physical inspections rather than
risk-based selectivity, leading to delays and increased costs for traders. The use of
reference prices for Customs valuation deviates from the WTO Agreement on Customs
Valuation principles and creates uncertainty for businesses. Post-clearance audit and
advance ruling systems are underutilized, limiting their potential to facilitate trade and
improve compliance.
To address these challenges, Uzbekistan should focus on strengthening the
capacity and integrity of Customs officials through regular training, performance
management, and anti-corruption measures [19]. Customs processes should be further
streamlined and automated, with a focus on reducing documentary requirements,
implementing pre-arrival processing, and integrating border agencies' systems. The AEO
program should be expanded in scope and benefits to incentivize compliance and reward
trusted traders.
Moreover, Uzbekistan should continue its efforts to join the WTO and fully align its
trade policies and practices with WTO rules and standards. This includes implementing
trade facilitation measures recommended by the WTO, such as publishing trade-related
information, providing opportunities for stakeholder consultation, and establishing
national trade facilitation committees to coordinate reforms [20].
Effective communication and partnership between Customs and the private sector
is also crucial for successful reform. Customs should regularly engage with traders,
logistics providers, and other stakeholders to understand their needs, concerns, and
suggestions for improvement. Public-private dialogue can help build trust, promote
voluntary compliance, and co-create solutions to facilitate trade [21].
Lastly, Uzbekistan should leverage technology and data analytics to enable smarter
and more targeted Customs controls. Artificial intelligence and machine learning can
enhance risk management by identifying high-risk consignments based on patterns and
anomalies in trade data. Blockchain technology can enable secure and transparent
sharing of information among border agencies and supply chain stakeholders, reducing
the need for redundant checks and paperwork [22].
In conclusion, while Uzbekistan has a solid legal foundation for its Customs
administration, effective implementation and continuous improvement are key to
realizing the full benefits of trade facilitation and efficient revenue collection. By adopting
a holistic and coordinated approach to Customs reform, in line with international
standards and best practices, Uzbekistan can enhance its economic competitiveness,
attract foreign investment, and promote sustainable development.
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