The document was developed in line with the order of the President of Uzbekistan Islam Karimov from 14 January 2011.

The document is directed at creating legal bases for customs regulation, ensuring effective customs control and regulating goods exchange at customs territory of Uzbekistan.

The Code is also directed at stimulating development of foreign trade, creating favourable conditions for conducting foreign trade operatins, strengthening measures of adhering to Customs Code by foreign trade participants and ensuring single use.

Inter-departmental working group has been created to develop the code and it included representatives of the ministries and departments, Customs Brokers Association and Customs Transporters Association. State Customs Committee coordinated the work.

The Government of Uzbekistan put task to develop new edition of the Customs Code as normative act of direct impact and corresponding to international standards and international agreements. The draft law is based on such standards and norms as International Convention on simplification and harmonization of customs procedures (Kyoto Convention, 1999), International Convention on temporary admission (Istanbul Convention, 1990), Customs Codes of European Union and the CIS states, as well as existing customs legislation.

The main tasks at developing new code were decreasing bureaucratic procedures, terms and costs of these procedures, simplifying export procedures for small and private businesses, ordering mechanism on providing deferral for customs payment for small businesses.

Draft Customs Code envisages clear norms, regulating all possible procedures, including direct regulation of relations in customs sphere by the document.

New Code united two current laws – Customs Code and Law “On Customs Tariffs” – to unify and simplify use of customs legislation.

The draft code also includes separate decisions of the government and by-laws, which are registered by Justice Ministry and regulating customs affairs. Their total number is 35 and all of them will be abolished after new Code is approved.

In line with the put tasks, the customs regulation should become a tool for formation favorable conditions for expanding participation of private sector in foreign economic activity. Efficiency of businesses and economy, as a whole, will depend on simplicity and transparency of customs procedures and clear regulation of rights of businesses and customs bodies. One of key tasks of the draft law is liberalization of foreign economic activity. In this context, the law was developed based on such requirements as simplification of customs procedures and formation of new custom control systems, ensure equality of interest of businesses and state, use of progressive information technologies at customs registration and control, creation of reliable legal foundations for reforming customs administration.

Key moments of customs practice will be introduction of mechanism of firm regulation of goods movements through customs border and their placement to one of customs regimes, as well as system of electronic declaration of goods based on successful experience of foreign countries. The draft law also reflects norms on limiting terms of post-customs valuation of imported goods and re-calculation of customs payments.

The main aim of the new code is to regulate all chain – from import of goods to placement of concrete customs regime. The document clearly determines mechanism of issuing permission for customs brokers and transporters, storage and realization of goods under customs control and their processing.

The code also determines rights and obligations of customs bodies, businesses and those, who are working in customs related areas such as customs brokers, customs transporters, free and customs warehouses, duty free shops.

It is worth to mention that such norms as customs investigation, considering cases of customs violations and execution decisions on them, which were in current code, were not included to new code, as these issues regulated with Code of Uzbekistan on Administrative Responsibility.

The draft code envisages wide use of information technologies for transfer necessary information to customs bodies. This will speed up document turnover, simplify customs formalities, and decrease expenses, related to dues and other payments.

So, documents for customs registration, including customs declaration, can be submitted via electronic method with use e-signature.

The draft Customs Code consists of 13 sections, 56 chapters and 514 articles. The document regulates all possible procedures and mechanisms in customs affairs.

The draft code was discussed in various seminars and round-tables with participation of parliament members, state bodies, commercial and public organizations, as well as participants of foreign economic activity.

Currently, the draft law submitted to Cabinet of Ministers of Uzbekistan for consideration and after that it will be directed to Oliy Majlis of Uzbekistan.