Uzbekistan plans to boost precious metals processing to 7 tons, jewelry exports to $300M

The country plans to increase annual processing volumes of precious metals to 7 tons, while boosting jewelry exports to $300 million.

The document outlines goals to reduce the illegal circulation of precious metals and jewelry by at least 50%, industrialize jewelry production, and promote modern designs capable of competing in international markets.

Regulatory measures and incentives

A robust control system will be introduced in jewelry production and sales. Starting July 15, the Fund for Reconstruction and Development will not only place targeted funds on bank deposits (as previously allowed) but may also allocate them as credit lines to leasing companies for up to 5 years. The interest rate will be 3 percentage points below the Central Bank’s base rate.

Leasing companies will be able to offer leases for equipment, spare parts, and components used in the jewelry sector. Lease terms may extend up to 5 years, with a 2-year grace period. Interest will be charged only on the remaining balance and aligned with the base rate.

The current mechanism allowing Navoi Mining and Metallurgical Combine (NMMC) and Almalyk Mining and Metallurgical Combine (AMMC) to sell precious metals through direct contracts with deferred payment will be extended until January 1, 2030. If a buyer delays payment under this scheme, no new shipments will be allowed until the debt is fully repaid.

The Republican Council for the Development of the Jewelry Industry will have the authority to designate special Jewelry Centers, offering dedicated support measures for qualified production and retail complexes.

For precious metal sales under deferred payment, no interest will be charged during the first 90 days. From day 91 to 180, an annual rate of 3% will apply.

Reducing the shadow economy

Uzbekistan's shadow jewelry market is estimated at $600 million annually. In May, the president directed authorities to legalize informal sector activity.

To combat this, beginning January 1, 2026, the following incentives will be abolished:

• VAT exemptions for the sale of jewelry and semi-finished products made from precious metals and stones;
• The retail gold sales tax.

Until January 1, 2028, jewelry manufacturers will calculate VAT based on the net difference between the product’s sale price and the value of the precious metals and stones it contains. The reference price will be determined by listings on the Tax Committee’s official website.

Small-scale miners and refineries will be allowed to sell precious metals via commodity exchanges.

All businesses involved in jewelry production or retail will be subject to VAT, regardless of revenue. However, until 2028, they can automatically reclaim 80% of paid VAT from the state budget on a monthly basis, provided that at least 80% of their revenue stems from jewelry manufacturing and retail.

Jewelry Centers will host branches of the Uzbekistan Jewelry Industry Association (Uzbekzargarsanoati) and the State Assay Office, along with laboratories for rapid testing of jewelry and gemstones. Association members operating within these centers will enjoy a 50% discount on membership dues.

Legalization and oversight

The association will support unregistered producers and sellers in legalizing their activities and offer a 6-month waiver on membership fees.

Until September 1, 2025, the State Assay Office will test and mark imported jewelry without requiring customs clearance documents. These items may be sold domestically without proof of customs payments during this period. After that date, however, unregistered imports will no longer be eligible for hallmarking.

Starting September 1, individual entrepreneurs will be officially allowed to sell jewelry. Mobile assay stations will operate in Tashkent, Nukus, and regional centers.

To enhance compliance, citizens who report violations related to precious metals via the Soliq mobile app will be awarded 50% of the resulting fine.

Customs and import rules

Until July 1, 2028, imports of equipment, spare parts, and consumables not produced in Uzbekistan and used in jewelry manufacturing will be exempt from customs duties, as per official lists.

From September 1, 2025, to September 1, 2028, imported jewelry will be subject to a 2% customs duty, and a flat customs clearance fee equal to one base calculation unit (BCU) will apply, regardless of product value.

Hallmarking fees for imported goods will be identical to those for local producers. Jewelry imported without documentation can be legally declared if all due payments and customs declarations are made.

New inspection system

A new state control system for the precious metals and stones sector will be introduced on a pilot basis until January 1, 2026.

Upon a first violation, businesses will receive a warning. If the issue is unresolved within a month or repeated, a field audit will be initiated. These inspections will focus exclusively on violations related to precious metals and stones and must be registered in the Unified State Control System and reported to the Business Ombudsman within 24 hours.