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Azerbaijan may create new FTZs in future

16 November 2016 18:12 (UTC+04:00)
Azerbaijan may create new FTZs in future

By Nigar Abbasova

Azerbaijan may consider creation of free trade zones (FTZ) on borders with neighboring countries in the future.

Advisor to Director General of Baku International Sea Trade Port, Zaur Hasanov said that the implementation of such projects will allow to significantly increase the volume of freight transportation trough the territory of Azerbaijan.

Moreover, such projects are deemed to be an integral part of the process of turning the country into the international logistics hub.

Speaking at the Infrastructure, Power and Renewable Energy Investment Conference in Baku on November 16, Hasanov mentioned that for now, it is too early to speak about such projects, as the country is currently focused on the creation of the FTZ in the territory of Baku Port.

He mentioned that the successful implementation of the project will provide the country with required basis and experience for the creation of other FTZs on borders with such neighboring countries as Iran and Russia.

Hasanov mentioned that no concrete offers have been made or received in this regard yet.

Being a first-ever FTZ in the country, the Baku FTZ will include several components, such as Truck Parking, International and Domestic Logistics Centers, operating within a special economic regime. The project is expected to bring huge benefits to the state budget of the country once established.

The registration of the FTZ residents is expected to begin in January 2017. Preparation of legal documents required for the activities of the area is currently underway.

Special tax and customs policy, which will be pursued in the territory of the free trade zone will also stipulate further development and simplification of a number of procedures. The privileges can cover the income tax, VAT, tax of profit and property tax.

Economic Zones World Company, a global developer and operator of economic zones, technology, logistics and industrial parks which belongs to DP World Corporation is also involved in the creation of Azerbaijan’s first-ever FTZ, while Dubai model was used as a basis in the process of its creation.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

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