The inward processing procedure (IPP) represents one of the most effective customs instruments for promoting export-oriented industrialization and integration into global value chains. By allowing foreign raw materials and components to be imported without immediate payment of customs duties and taxes, this regime reduces production costs and enhances competitiveness of domestic manufacturers.

This article analyzes the legal, economic, and institutional dimensions of the inward processing procedure in Uzbekistan. Drawing on national customs legislation, official statistical data, and international standards developed by the World Customs Organization (WCO) and the World Trade Organization (WTO), the study evaluates the role of IPP in supporting industrial development and export growth. Comparative analysis with the European Union, China, Turkey, and the Republic of Korea is conducted to identify best practices applicable to Uzbekistan.

The findings demonstrate that recent regulatory reforms have significantly improved access to inward processing, contributing to increased manufacturing output, employment, and export diversification. However, further progress requires deeper digitalization, standardized yield norms, and enhanced post-clearance audit mechanisms. The article concludes that inward processing can become a cornerstone of Uzbekistan’s industrial policy if aligned with international best practices and supported by risk-based customs control.

Inward processing, customs regimes, industrial policy

Customs Code of the Republic of Uzbekistan.

Presidential Decree No. PF-115 of April 25, 2022.

World Customs Organization. Revised Kyoto Convention.

World Trade Organization. Trade Facilitation Agreement.

European Commission. Union Customs Code.

HM Revenue & Customs. Inward Processing Guidance.

Methodological materials on inward processing in Uzbekistan