Obstacles in the way: how bureaucratic delays in importing household appliances burden ordinary Uzbeks.

Previously, the procedure took no more than five working days; today, it stretches into many months. The issue lies in the fact that there used to be more certifying bodies authorized to issue documents for completed tests. However, after the introduction of new regulations, only one laboratory holds accreditation. All others have had their accreditation revoked, claim importers. This has resulted in enormous queues at the testing facility.

The situation has already created numerous problems for entrepreneurs. For instance, for CA Store (Credit Asia), which has been engaged in retailing home appliances in Uzbekistan for almost 25 years, these lengthy waits have led to a legal dispute. The tax committee has filed a lawsuit against the company for 4.5 billion sums for violating currency legislation requirements.

“When a company conducts a currency operation for goods purchased abroad, they must be imported into the country within 180 days from the date of prepayment. If the goods are not brought in during this time, the company faces penalties,” explained a representative of the company to a correspondent from Podrobno.uz.

At the same time, a product receives the status of "imported" only after a complete cargo customs declaration "import 40" (IM-40) is processed.

“Last year, we imported goods that we still cannot clear. They remain in 'incomplete declaration' mode (ND-40). We have paid all customs duties, but we do not yet have the testing certificate for the equipment,” the contact noted.

According to him, the first application for testing was unsuccessful because the laboratory authorized to conduct them had not yet been established; it opened in May. Repeated applications began to be submitted in July.

“Since we imported the goods in 2023, by that time the 180-day deadline had expired. The Tax Committee filed a lawsuit in the Economic Court to impose penalties,” shared the importer’s representative.

The situation is indeed absurd: the goods are already in the country, but under the law, the court has no grounds to deny the tax authority's claims.

“All of this is a result of the massive queue. Importers from all over the republic are lined up at the only laboratory authorized to conduct these tests,” said the contact.

The delays, he noted, are due to the laboratory's regulations (up to 14 days per sample) and the limited space in the testing chamber, which can accommodate only six models.

Now, think of at least the large companies involved in the import and sale of home appliances in Uzbekistan. Imagine that each has large batches of imported equipment with several types and models worth billions of dollars. The selected samples for testing are certified in stages. First, for example, air conditioners of one model, then another. Then refrigerators, and so on. Can you grasp the scale of the situation?

“According to the laboratory, our turn for the first application will come in January 2025,” emphasized the CA Store representative.

While the selected samples undergo testing, the rest of the goods remain in customs storage. And there are fees for the idle time as well.

“We have also already received fines from customs authorities because we did not timely transfer the declaration from ND-40 (incomplete declaration) to IM-40 (import 40). There is a 60-day period for this. Due to the absence of the certificate, we cannot change the status,” he added.

To date, he stated, the company has paid over 25 million sums for violations of customs legislation. This amount is not large compared to the Tax Committee's claim. However, it's important to note that businesses will never operate at a loss. Therefore, all these costs for importers will ultimately lead to price increases for consumers.

“Right now, we face fines for undeclared air conditioners; then, when the 180-day period expires, fines for refrigerators may follow. After all, currency funds were transferred to suppliers of various brands. Everyone understands the situation, but you cannot argue with the law. In the next court hearing, we expect a representative from UzTest, who did not appear at the previous session at the court's request,” concluded the CA Store representative.

This issue raises numerous questions for various agencies in the republic – the Uzbek Agency for Technical Regulation, the Committee for Competition Development and Consumer Rights Protection, the Anti-Corruption Agency, and the association "Uzelttehsanoat." Such delays negatively impact entrepreneurs’ activities and limit consumer choice. Overall, the situation decreases competition levels and creates corruption risks.

On a national scale, it can be said that there is a direct detriment to the economy and the country's image, as any obstacles reduce its attractiveness to foreign partners. Is this acceptable, considering the desire to actively cooperate with the world and Uzbekistan's movement towards the WTO?