Customs duty on copper wire exports is due soon in Uzbekistan, Chairman of the Chamber of Commerce and Industry Davron Vakhabov told the Uzbekistan 24 television channel.
According to him, the measure is aimed at stimulating deep copper processing and the manufacturing of high-value-added products.
"Today, Uzbekistan is actively developing capacities for deep copper processing and the manufacturing of copper products. On average, about 200,000 tons of copper are processed by small, medium, and large enterprises," the head of the Chamber of Commerce and Industry underscored.
He added that the state provided copper processing companies with a 4% tax break (approximately $360), allowing them to reinvest their profits in manufacturing development, generating additional added value.
Taking into account the incentive, businesses are now purchasing a ton of copper at $9,000 from the Almalyk Mining and Metallurgical Plant, for approximately $8,600-$8,700 and export high-value-added products for $11,000-$12,000.
On average, 71,000 tons of copper were purchased over eight months, of which, taking into account the incentive, 36,000-37,000 tons were exported as standard wire. According to him, businesses exporting these products can install a furnace for $300,000 to $500,000 and smelt the copper in it, thereby profiting.
He added that businesses who have invested $50-$80 million in the industry "cannot operate at full capacity." They proposed introducing an export duty on such products.
"This will facilitate exports of finished products with higher added value and encourage producers to process them." "That is, if the average price is around $9,000, then exporting finished products at $11,000-$11,500 will create the opportunity to significantly expand exports to Europe and the US," Davron Vakhabov emphasized.
He underscored that an average of 71,000 tons of copper was purchased over the past eight months, of which, taking into account the incentive, 36,000-37,000 tons were exported as regular wire. Furthermore, businesses exporting these products can supply a furnace for $300,000 to $500,000 and smelt the copper in it, thereby reap the benefits.
According to the head of the Chamber of Commerce and Industry, the president supported this proposal at a meeting on October 8. The 4% incentive will be extended for another three years, subject to 100% payment for products from the Almalyk Mining and Metallurgical Plant. The introduction of a customs duty on goods with code 7408 (copper wire) has also been approved. Moreover, a presidential decree dated March 14 of this year already provided for the introduction of an export duty on copper wire.
Davron Vakhabov underscored that, at the president’s directive, $100 million will be contributed specifically for copper buyers. These funds will be used exclusively for purchasing copper through the exchange.
Copper manufacturing in the country is projected to reach 250,000 tons in the coming years, and 500,000 tons by 2030. Responsible executives briefed the president on projects aimed at utilizing this raw material base for the manufacturing of high-value-added products. These include the manufacturing of servers, industrial electronics, air conditioners, solar panels, control and measuring instruments and automation, and smart cards. Overall, the industry has formed a portfolio of 157 projects worth a total of $2.1 billion.
Uzbekistan introduced export duties on 86 products on July 1, including strategic raw materials such as copper. These measures were also taken to stimulate further processing within the country. In 2024, the Central Bank cited high copper prices as one of the reasons for Uzbekistan's export growth.
