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Economy 03/08/2022 What damage can the state budget of Uzbekistan suffer from the smuggling of tobacco products?
What damage can the state budget of Uzbekistan suffer from the smuggling of tobacco products?

Tashkent, Uzbekistan (UzDaily.com) -- The economy of Uzbekistan is suffering heavy losses due to the smuggling of various goods. For example, the loss of the state budget of the country due to the smuggling of tobacco products this year may amount to about 550 billion soums.

According to the international company KANTAR, the share of sales of counterfeit products in Tashkent increased from 11% at the beginning of 2022 to 15.3% in May 2022. At the same time, in some regions of the country, the share of counterfeit products increased from 0% or 5% to 15%.

Mukhtar Ganiev, Deputy Chairman of the Tamakisoz Association, notes that the percentage of smuggled tobacco products imported into Uzbekistan 4-5 years ago was 1%, but now this figure is 15%. In monetary terms, the turnover of illegal products is US$100 million. Ganiev added that this means huge losses for the economy of Uzbekistan.

How do illegal cigarettes come to Uzbekistan? Specialists of the Customs Committee note that such products are imported from the United Arab Emirates through Tajikistan and Kyrgyzstan. Smuggling enters our country, allegedly for the purpose of transit to neighboring countries, but does not leave the territory of Uzbekistan.

Ulugbek Kosymov, Head of the Department of the State Customs Committee of Uzbekistan, said:

- In 2019, the customs authorities found that tobacco products were imported into Uzbekistan by truck. On the way, the truck stopped at parking lots without damaging the customs seals, cigarettes were unloaded from the truck. Instead of tobacco products, other goods were loaded into the truck. Suspecting that the truck was under surveillance, the vehicle was set on fire. With the official importation of cigarettes in one vehicle to Uzbekistan, the volume of customs fees would amount to 6.5 billion soums. Even taking into account the value of a burned-out car with cigarette products in it, smugglers still remain in profit.

Today, about 300 thousand citizens of Uzbekistan regularly buy illegal cigarettes and thus finance criminal groups. At the same time, the quality of these tobacco products is also questionable. Counterfeit products are dangerous because they are manufactured using low-quality, toxic materials that can adversely affect human health. Experts record cases of poisoning. In addition, remember that an illegal manufacturer cannot be asked about the negative consequences.

So what is being done to combat smuggling in Uzbekistan?

Inspection complexes have been installed at the main large border customs posts to prevent smuggling. With the help of these complexes, trucks are scanned in a few minutes by means of X-rays.

Transit vehicles are scanned at the points of entry and exit, a comparison is made for the fact of a change in the location of the cargo, its volume. In addition, there is a logical control in the information programs of auto scales: the weight of each load at the input and output is compared with each other and, if there is a difference, a warning is issued. All this happens without the human factor.

Botir Sharipov, head of the department at the Consumer Rights Protection Agency, believes that the most effective way to eradicate smuggling is when consumers fight it themselves through quality control.

Tobacco products that have entered the country illegally are not marked or labeled to indicate their quality. Therefore, since this year, a marking procedure in the state language has been introduced in Uzbekistan. That is, all data - from the manufacturer to the content of products that are imported legally - must be indicated in the Uzbek language. If there is no marking in the Uzbek language, most likely the product is contraband.

Until 1 January 2021, 218 operating enterprises were transferred to the labeling system for their products. Through QR codes with a sign of authenticity on the packaging, you can get acquainted with the composition of each product.

Consumers must also request a receipt for the purchase of purchased products. Smuggled goods are not registered due to illegal importation and therefore they are not issued sales receipts.

To combat smuggling, it is critical to strengthen control by the relevant authorities, which have the appropriate tools to combat illegal trade. It is also necessary to conduct regular raids to identify illegal goods.

In accordance with the legislation, from 13 June, administrative measures are provided for violation of digital marking norms for tobacco, alcohol and beer products. In particular, the legislation provides for a fine for officials in the amount of 100 BRC, as well as a fine for sales equal to the proceeds received in the last quarter.

A successful fight against smuggling can increase the economy of Uzbekistan by US$100 million. The budget will be replenished, which will contribute to the timely payment of social benefits and pensions.

 

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