Import and Export Operations in Uzbekistan (currency control)

Import and export operations occupy a key place in the system of foreign economic activity of the Republic of Uzbekistan. Their importance is determined not only by their economic function — ensuring the movement of goods, works, services, and capital between residents and non-residents — but also by the public-law task of the state to ensure currency, customs, tax, and statistical control.

The modern model of regulating foreign trade operations in Uzbekistan is characterized by a transition from predominantly documentary control to digital monitoring. The central element of this model is the foreign trade operations information system “E-kontrakt”, through which business entities enter information on foreign trade contracts, invoices, certificates of completed works and rendered services, payments, and other data related to the performance of foreign trade obligations.

The legal basis for such regulation includes, in particular, Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 283 dated May 14, 2020 “On Measures to Further Improve the Monitoring of Foreign Trade Operations in the Republic of Uzbekistan” and the Regulation on the Procedure for Monitoring and Control over Foreign Trade Operations approved thereby. According to this act, business entities, except for self-employed persons, are obliged to enter information on foreign trade contracts, certificates, and invoices electronically using an electronic digital signature in the “E-kontrakt” system.

Concept and Types of Foreign Trade Operations

Foreign trade operations in Uzbek law cover a wide range of transactions between residents and non-residents. These include export, import, barter contracts, export contracts within the territory of the Republic of Uzbekistan, procurement contracts, sales contracts, as well as operations carried out on the basis of invoices.

From a legal point of view, it is important to distinguish the following main categories:

Import of goods means the importation of goods into the Republic of Uzbekistan under an import contract with placement under the relevant customs regime, including release for free circulation, processing within the customs territory, customs warehouse, free warehouse, or free customs zone.

Export of goods means the placement of goods under the customs regime of export, re-export, or free warehouse in accordance with a foreign trade contract or invoice.

Import of works and services means the performance of works or provision of services by a foreign person in favor of a resident of the Republic of Uzbekistan, regardless of the place where such works are actually performed or services are actually provided.

Export of works and services means the performance of works or provision of services by a resident of the Republic of Uzbekistan to a non-resident, also regardless of the place where they are actually performed or provided.

This approach has practical significance because the export and import of services are not always connected with the physical crossing of the customs border. For example, legal, consulting, IT, marketing, engineering, and other services may be provided remotely; however, from the perspective of foreign trade monitoring, they remain export or import operations.

Foreign Trade Contract and Invoice as Legal Grounds for an Operation

One of the important features of the current regulation is the possibility of exporting and importing goods, works, and services both on the basis of a foreign trade contract and on the basis of an invoice.

A foreign trade contract is a more detailed contractual form containing a set of terms on the parties, subject matter, price, deadlines, settlement procedure, liability, and other essential elements of the transaction. An invoice, by contrast, is a simpler commercial form used in international practice and containing information on goods or services, their quantity, price, delivery terms, sender, and recipient.

Permission to conduct export-import operations on the basis of invoices is aimed at simplifying foreign trade turnover, especially for standard, regular, or relatively small-scale operations. However, simplification of the form does not mean exemption from the requirements of currency, tax, and customs control. Information on invoices is also subject to entry into the “E-kontrakt” system in cases provided for by legislation.

Minimum Requirements for Foreign Trade Contracts

The Regulation on the monitoring of foreign trade operations establishes a list of mandatory sections and information that must be included in a foreign trade contract.

Such elements include:

1. Preamble — contract number, place and date of conclusion, full names of the parties, positions and names of the persons signing the contract, as well as reference to a power of attorney if the representative acts on that basis.
2. Subject matter of the contract — name of goods, works, or services, type of transaction, quantitative and qualitative characteristics, assortment, standards, model, brand, grade, certificates, or information on state registration, if available.
3. Basic delivery terms — Incoterms terms indicating the specific place of delivery: station, port, airport, or another agreed point.
4. Terms for delivery, performance of works, or provision of services — these terms are considered the final deadlines for the performance of obligations by the supplier, contractor, or service provider.
5. Price and total contract amount — value of goods, works, or services, contract currency, and units of measurement. For certain service contracts where it is impossible to determine the total amount at the time of conclusion, the amount may be omitted.
6. Payment terms — currency, form, and payment deadline. If the payment currency differs from the contract currency, the conversion rate and the source for determining it must be specified.
7. Origin of goods and place of provision of services — country of origin of the goods, manufacturer, and place of performance of works or provision of services.
8. Liability of the parties — sanctions for non-performance or improper performance of obligations, including penalties and fines.
9. Details of the parties — postal, banking, shipping, and other identification details of the parties.
10. Language of the contract — the contract may be drawn up in the state language or another language by agreement of the parties. If the contract is concluded not in the state language, it must be translated into the state language and certified in the prescribed manner.

From a practical point of view, these requirements perform a dual function. First, they ensure contractual certainty between the parties. Second, they allow banks, customs, and tax authorities to correctly compare the terms of the contract with payments, cargo customs declarations, certificates of completed works, and other documents.

Digital Monitoring Through the “E-kontrakt” System

The “E-kontrakt” system is a key instrument of state monitoring of foreign trade operations. It is used to enter and exchange data among business entities, banks, customs authorities, tax authorities, exchanges, and other participants of the control infrastructure.

The system includes, in particular:

Category of information	Content
General contract information	parties, details, date and number of the contract, type of contract, subject matter, amount, currency, delivery and payment terms
Invoice information	parties, date and number of invoice, type of invoice, subject matter, amount, and currency
Information on movement of funds	date and amount of payment, payment order, letter of credit, guarantee, insurance policy, foreign bank commission
Information on goods	HS code, quantity, country of origin, customs declaration number, invoice value, customs value, and statistical value
Information on services and works	certificates of completed works or rendered services, date, number, type of services, volume, and value
Factoring information	financial agent, factoring amount, transaction date, information on performance

The deadline for entering information on certificates of completed works or rendered services is of particular importance. Such information must be entered no later than the 20th day of the month following the month in which the certificate was drawn up. For export and import of services, this rule is of fundamental importance because the certificate is often the main document confirming the fact of performance of the obligation.

Role of Banks, Customs, and Tax Authorities

The mechanism for monitoring foreign trade operations is based on the distribution of functions among several entities of public and financial control.

Commercial banks compare the information entered into the system with the terms of the contract when making advance payments, opening letters of credit, issuing bank guarantees, conducting currency operations, and reflecting the movement of funds.

Customs authorities compare information on the contract or invoice with the data of the cargo customs declaration. If there are no discrepancies, customs clearance of goods is carried out in the prescribed manner.

Tax authorities use system data to identify overdue receivables and violations of asset repatriation requirements.

Business entities are responsible for the timely and accurate entry of information on contracts, invoices, and certificates. This means that errors in system data may have not only technical but also legal consequences.

Thus, “E-kontrakt” is not merely a register of contracts, but a fully fledged digital environment for monitoring the performance of foreign trade obligations.

Performance Deadlines and Repatriation of Assets

One of the central elements in the regulation of import and export operations is the requirement for repatriation of assets. Repatriation means the receipt of funds from abroad, importation of goods into the Republic of Uzbekistan, performance of works, provision of services, or return of funds within the established deadlines.

As a general rule:

Type of operation	Main deadline
Import of goods, works, or services after payment	not more than 180 days from the date of payment
Export of goods	not more than 180 days from the date of placement of goods under the export, re-export, or free warehouse regime
Export of works or services	not more than 180 days from the date of signing the certificate of completed works or rendered services
Performance against funds received in advance	not more than 365 days in cases provided for by regulation

Violation of these deadlines may result in overdue receivables and the application of financial sanctions. At the same time, legislation provides for certain exceptions and adjustments, for example, for long-term supply of equipment, investment projects, force majeure, bank commissions, insurance compensation, taxes paid abroad on exported services, as well as factoring operations.

In practice, this means that a participant in a foreign trade transaction must control not only the fact of conclusion of the contract and payment, but the entire life cycle of performance: delivery, customs clearance, signing of the certificate, receipt of foreign currency proceeds, return of advance payment, or documentary confirmation of performance.

Features of Export and Import Operations Involving Services

Export and import of services have several features compared with goods transactions.

First, services do not involve the physical movement of goods across the border; therefore, the key evidence of performance is the certificate of completed works or rendered services.

Second, the place of provision of services may not coincide with the location of the customer or contractor. Legislation expressly recognizes the export and import of services regardless of the place where they are actually provided.

Third, for exported services, the receipt of proceeds from the non-resident is of particular importance. The period for receipt of proceeds is calculated from the date of signing the acceptance certificate for completed works or rendered services.

Fourth, if the exporter of services paid taxes on income from the provision of services in the importer’s country, the amount of such taxes, if confirmed, may not be treated as receivables under the contract.

For practice, this means that a service export contract should contain maximally clear provisions on the scope of services, terms of provision, procedure for signing the certificate, payment deadlines, payment currency, withholding taxes, bank commissions, and consequences of delay in signing the certificate or making payment.

Invoice as an Instrument for Simplifying Foreign Trade Operations

The use of an invoice without concluding a separate foreign trade contract is an important instrument for liberalizing foreign trade turnover. This is especially relevant for export of services, small deliveries, e-commerce, IT services, subscriptions, advertising services, and other operations where the conclusion of a detailed contract may be economically or operationally impractical.

However, the invoice must contain a sufficient minimum of information allowing identification of:

• the parties to the operation;
• the subject matter of the supply, works, or services;
• price and currency;
• terms of delivery or provision of services;
• date and number of the invoice;
• payment details;
• basis for payment.

For the exporter, the invoice performs a commercial, settlement, and control function at the same time. It confirms the claim against the foreign buyer, serves as a basis for a bank payment, and is used for entering information into the foreign trade operations system.

Legal Risks of Participants in Import and Export Operations

The main risks of business entities in import and export operations can be divided into several groups.

1. Contractual risks. These include uncertainty of the subject matter of the contract, absence of precise terms for delivery or provision of services, incorrect indication of currency, absence of provisions on taxes, bank commissions, certificates, claims procedure, and liability.
2. Currency risks. These are connected with untimely receipt of foreign currency proceeds, inability to return an advance payment, occurrence of overdue receivables, and incorrect determination of the date from which the repatriation period begins.
3. Customs risks. Such risks are typical for goods operations and include incorrect HS code, inconsistency between information in the contract and the customs declaration, errors in the country of origin, invoice value, weight, or quantity of goods.
4. Tax risks. These are especially relevant for export and import of services. Risks may be connected with withholding tax abroad, recognition of income, confirmation of expenses, cross-border VAT, permanent establishment, and documentary confirmation of services rendered.

Practical Recommendations for Structuring Foreign Trade Contracts

To minimize legal risks, a foreign trade contract or invoice should be prepared taking into account not only the commercial interests of the parties but also the requirements of currency, customs, and tax control.

It is recommended to include the following provisions in the contract:

Contract block	Practical significance
Subject matter	allows identification of goods, works, or services for the purposes of the bank, customs, and tax control
Price and currency	reduces the risk of discrepancies between the contract, invoice, and payment
Performance deadlines	important for calculating asset repatriation deadlines
Payment terms	determine advance payment, post-payment, letter of credit, and bank commissions
Certificates for services	record the date of performance and the beginning of the period for receipt of proceeds
Taxes and withholdings	allow withholding tax to be taken into account and help avoid disputes over underpayment
Force majeure	may affect extension of the asset repatriation period
Liability	disciplines the parties and ensures contractual protection
Contract language	important for compliance with the requirements of Uzbek legislation
Electronic document exchange	facilitates confirmation of performance and exchange of documents

It is especially important that the data in the contract, invoice, certificate, payment order, and information in “E-kontrakt” be consistent with each other. Any discrepancy — in amount, currency, date, subject matter, counterparty name, or details — may cause a delay in payment, customs clearance, or a subsequent demand from controlling authorities.

Liability for Violation of Currency Control Rules in Import and Export Operations

No.	Type of violation / situation	To whom it applies	Basic deadline / starting point	Consequence / liability
1	Failure to ensure repatriation of assets under an import contract: goods are not imported, works/services are not performed, or the advance payment is not returned.	Resident importer	180 days from the date of payment under the import contract	Risk of receivables being recognized as overdue and application of a fine under Article 11-1 of the Law “On Currency Regulation”.
2	Failure to ensure repatriation of assets under an export contract: export proceeds are not received or goods are not returned.	Resident exporter	180 days from the date of placement of goods under the “export”, “re-export”, or “free warehouse” regime	Overdue receivables; thereafter, a fine for failure to ensure repatriation of assets.
3	Failure to ensure receipt of proceeds from export of works/services.	Exporter of services / works	180 days from the date of signing the certificate of acceptance of completed works / rendered services	Overdue receivables; possible fine under Article 11-1 of the Law “On Currency Regulation”.
4	Violation of the asset repatriation deadline by more than 45 days after expiry of the 180-day period.	Residents, except small business entities	After expiry of 180 days + 45 days	Fine payable to the republican budget.
5	Violation of the asset repatriation deadline by a small business entity.	Small business entities	After expiry of 180 days + 90 days	Fine applies after the 90-day grace period.
6	Delay in repatriation of assets up to 360 days from the date of payment or export to a non-resident.	Resident violator	Up to 360 days	Fine of 5% of the amount of unrepatriated assets.
7	Delay in repatriation of assets from 360 to 545 days.	Resident violator	From 360 to 545 days	Additional 10% of the amount of unrepatriated assets.
8	Delay in repatriation of assets for more than 545 days.	Resident violator	More than 545 days	Additional 35% of the amount of unrepatriated assets.
9	Incorrect formation of contract or invoice data in the “E-kontrakt” system.	Business entity	At the stage of data entry / contract performance	Qualified as a violation of the established procedure for conducting export-import operations and entails liability under legislation.
10	Late entry of information on certificates of completed works / rendered services.	Business entity	No later than the 20th day of the month following the month in which the certificate was drawn up	Risk of violation of the procedure for monitoring foreign economic activity operations; possible consequences in currency control and determination of repatriation deadlines.
11	Making changes to a contract without an additional agreement.	Business entity	When changing contract terms	Prohibition on changing terms, including the goods-related part, without an additional agreement; possible need to reissue the customs declaration and correct data.
12	Late or inaccurate entry of information into the system.	Business entities, banks, budget organizations, treasuries, customs authorities	At the relevant stage of monitoring	Liability for timeliness and accuracy of the entered information.
13	Failure to comply with a tax authority’s demand to eliminate overdue receivables or voluntarily pay a fine.	Business entity	10 days from the date of receipt of the demand	Further collection of the fine; the fine amount is recognized as tax debt and collected compulsorily.
14	Full or partial repatriation of assets after voluntary payment of a fine.	Business entity	Within 90 days after voluntary payment of the fine within the established 10-day period	The paid fine is refunded in proportion to the amount of repatriated assets.
15	Full repatriation of assets after entry into force of a court act.	Business entity	Within 120 days after the court act enters into legal force	75% of the paid fine amount is refunded.

 

Exceptions When Receivables Are Not Considered Overdue

No.	Exception / mitigating circumstance	Legal significance
1	Supply of equipment or components under import contracts where the delivery period exceeding 180 days is due to technical characteristics.	Receivables are not considered overdue.
2	Import contracts under projects implemented pursuant to decisions of the President or the Cabinet of Ministers.	If the established deadlines are observed, receivables are not considered overdue.
3	Supply of equipment, spare parts, installation, and construction-installation works under investment projects.	If the terms of the contract are not violated, receivables are not considered overdue.
4	Force majeure.	The asset repatriation period is extended for the duration of the force majeure.
5	Bank commission of a correspondent bank.	Not counted as receivables if the conditions of the Regulation are met.
6	Insurance compensation under an export contract.	The amount of receivables is reduced by the amount of insurance compensation received.
7	Taxes paid by the exporter of services in the importer’s country.	If payment of taxes abroad is confirmed, such amounts are not counted as receivables.
8	Factoring / assignment of a monetary claim.	In certain cases, the financial agent’s remuneration is not counted as receivables; if the financial agent is a resident, the obligation to repatriate may pass to it.