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By Trend

The introduction of a new system of customs duties is not aimed at their increase or protectionism policy, chairman of the Azerbaijani State Customs Committee, colonel-general of the customs service Aydin Aliyev said in an exclusive interview with Trend.

He said that not only provision of budget revenues, but also the regulation of domestic production was the main task of introducing the new system.

"We think that we could ensure the fulfillment of this task,” he said. “I believe that the necessary support will be rendered to the development of the non-oil sector and the expansion of domestic production as a result of the application of the new customs and tariff system."

He said that that during the preparation of the new system, the import duty rates for raw materials and goods used in production and the production of which was not established in Azerbaijan, were reduced to zero percent, while rates for raw materials and goods the production of which is at an insufficient level - from 15 percent and 10 percent to 5 percent.

"At the same time, I would like to note that in relation to the products having the production potential within Azerbaijan, maximum customs duties have been set, while for a number of products, the rates of customs duties have been kept in the form of specific duties,” he said.

Commenting on the possible impact of the new system of customs duties on revenues to the state budget, Aliyev added that this influence will be insignificant.

"The forecast for revenues to the state budget-2018 in the amount of 2.43 billion manats will be completely fulfilled," he said.

Azerbaijan switched to a new system of customs duties on Jan. 1, 2018. The new duties are regulated by the “Goods Nomenclature of Foreign Economic Activity, Customs Rates for Import and Export.”

Since 2001, the customs rates of 0, 0.5, 1, 3, 5, 10 and 15 percent were applied in the country. Starting from this year, only rates of 0, 5 and 15 percent on imported raw materials and goods are applied in Azerbaijan.

A zero rate is levied on the majority of the goods (raw materials and equipment) starting from this year, including even those from which a customs duty of 0.5 percent was previously levied.

This applies to those types of commodity groups (in particular, 84 and 85 groups), which, upon the order of the Cabinet of Ministers, are already subject to VAT at zero rate when importing.

The customs rate of five percent is levied on semi-finished products. As for the finished products, the rate on them increased up to 15 percent.

For example, a 15 percent rate is imposed on imports of various golden and silver products. The rate for the import of books, magazines, newspapers, brochures and other printed items has increased from three percent to five percent. At the same time, import of paper used for the issue of newspapers is exempt from import duties. A number of plastic products, parts of musical instruments, helicopters, airplanes, a number of varieties of live fish are also exempt from import duties. Import duties have been reduced for some goods, such as baby food.

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