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Import duties can be reduced in Azerbaijan

6 June 2018 12:50 (UTC+04:00)
Import duties can be reduced in Azerbaijan

By Sara Israfilbayova

Azerbaijan can reduce import duties on certain types of goods, Chairman of the State Customs Committee Safar Mehdiyev told reporters on June 5.

He noted that the issue can be considered during the discussion of the package of changes and proposals for the next year.

“The government will consider all proposals received from entrepreneurs and, if necessary, take an appropriate decision,” Mehdiyev added.

Starting from January 1, 2018, a new system of customs duties has come into force in Azerbaijan.

New duties are regulated by the “Nomenclature of Foreign Economic Activity, Customs Rates for Import and Export.” Entered into force from this year the new system is three-stage. Since 2001, seven rates have been in effect in Azerbaijan - 0, 0.5, 1, 3, 5, 10 and 15. Now, from this year, only three rates remain - 0, 5 and 15 percent.

Most of the production goods (raw materials and equipment) are taxed at this year’s zero rate, including even those from which a customs duty of 0.5 percent was previously collected. This applies to those types of commodity groups (in particular, 84 and 85 groups), which already, under the order of the Cabinet of Ministers, are subject to VAT at zero rate when importing.

He further stressed that customs revenues of Azerbaijan’s state budget amounted to 1.323 million manats ($778 million) for the five months of this year, adding that this is 37 percent more than the budget revenue forecast for January-May 2018.

“The customs revenue forecast for the first five months of 2018 was 964 million manats ($567 million),” Mehdiyev said. “This means that we exceeded the forecast by 359 million manats ($211 million) or 37 percent.”

The customs revenue forecast of Azerbaijan’s state budget for 2018 is 2.43 billion manats (1.43 billion).

He also touched upon a single administrative customs building on the border with Georgia.

“If the talks are successful, then it will be the first joint administrative building in the region, where customs officers of the two countries will work. The new building is planned to be built near the Sinig Korpu checkpoint,” Mehdiyev said.

He stressed that in case the issue is resolved in a positive way, then it will lead to a significant simplification of the trade and speed up the passage of citizens and cargo through the checkpoints.

There are six operating customs posts subordinate to the Balakan and Tovuz customs offices between Azerbaijan and Georgia, namely Sadikhli, Sinig Korpu, Jandargol, Mazimchay, Muganli automobile posts and the Beyuk Kasik railway post.

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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is

Follow us on Twitter @AzerNewsAz

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