By Sara Israfilbayova
About 2.18 million manats ($1.28 million) have been returned to Azerbaijani exporters since early 2017, as part of the mechanism for the return of part of the costs for the export of non-oil products.
The head of the Azerbaijan Export and Investment Promotion Foundation (AZPROMO), Rufat Mammadov made the remarks during the press conference on October 13, adding that the volume of products exported within the framework of this mechanism amounted to $22.69 million ($13.34 million).
AZPROMO head noted that the mechanism for refunding a part of costs affects 500 items of products for 15 commodity groups, adding that this mechanism allowed not only to expand exports to traditional countries, but also opened new markets for local entrepreneurs.
"When we talk about traditional markets for Azerbaijan, we mean Russia, Kazakhstan, Georgia, Belarus and other countries, but within the framework of this mechanism we started exporting to Canada, Romania, Australia, South Korea, Poland, Czech Republic, Lithuania and the Seychelles," Mammadov stressed.
Exporters of wine have received the greatest benefit from the use of this mechanism, according to him, who account for 62 percent of the funds returned under the mechanism for the return of part of the costs.
The state refunds 3-6 percent of the customs value of goods to non-oil exporters within the framework of mechanisms on promoting exports of non-oil products.
Speaking of the 'Made in Azerbaijan' brand Mammadov noted that as a result of the export missions within the promotion local companies signed 30 agreements on the export of products abroad.
“We are already exporting pomegranate juice and hazelnut to Germany, chicken eggs to Afghanistan, fruit juices to Pakistan, and various products-to Qatar and Kazakhstan," Mammadov stressed.
Overall, under the promotion of the Made in Azerbaijan brand, nine export missions have been organized including three in 2016 and six in 2017. Azerbaijani exporters visited China, the UAE, Germany, Qatar, Afghanistan, Pakistan and other countries. In addition, by the end of the year, it is planned to send export missions to China, Russia and Saudi Arabia.
Mammadov stressed that an association of tea producers and exporters, as well associations of producers and exporters of persimmon and tobacco will be established in Azerbaijan.
Today, associations of producers and exporters of viticulture products, textile products, hazelnuts, furniture, association of beekeepers and other associations have already been established.
Moreover, he underlined that China is the main target market for the export of Azerbaijani non-oil products and added that the country has already sent two export missions to China.
He went on to say that as a result of the measures nine national companies signed an agreement on the export of wine to China.
Last year, Azerbaijani companies agreed to deliver 500,000 bottles of wine to this Asian country. The agreement was reached within the framework of participation of Azerbaijani entrepreneurs in international exhibitions in Hong Kong and Guangzhou. This year, local companies intend to expand the export of wine to China, the world's second-largest economy.
The trade turnover between the countries amounted to $964.68 million in January-August 2017, according to Azerbaijan’s State Customs Committee.
Today, China takes the 4th place in the overall trade turnover of Azerbaijan, 3rd place - in exports and imports.
Yusif Abdullayev, AZPROMO Vice-President, in turn mentioned that within the framework of the ANUGA exhibition in Cologne, Azerbaijani companies signed agreements with six countries on export of products.
"An agreement has been reached to export 20 tons of pomegranate juice to Israel, 100 tons of pomegranate to Switzerland, 18 tons to Mongolia, 22 tons of hazelnut to the Netherlands and Denmark, 40 tons of hazelnut to Italy," Abdullayev said.
Discussions on future deliveries of Azerbaijani products were also held within the framework of the exhibition, according to AZPROMO Vice-President.
“The Azerbaijani companies reached a preliminary agreement on the export of fruit juices to Qatar, pomegranate wine to Germany, dried persimmons to Argentina, the Netherlands, Italy and Greece, 48 tons of hazelnut to Italy, and 22 tons of hazelnuts to the Czech Republic and Greece,” he concluded.
Azerbaijani President Ilham Aliyev signed a decree last October to approve the promotion of national brands in foreign markets thus develop export potential of the country.
Annually, participation of Azerbaijani exporters will be organized at five exhibitions, where common stands will be presented under the ‘Made in Azerbaijan’ brand.
The state will pay 30 percent of the participant's expenses for renting space at exhibitions, preparing a design and installing a stand, transporting exhibition samples of products. But the amount of state support will not exceed 5,000 manats ($2,940).
Follow us on Twitter @AzerNewsAz