Cabinet of Ministers approves amendments on duty-free goods import
By Ayya Lmahamad
Azerbaijan's Cabinet of Ministers approved amendments to “Preferential and simplified rules for movement of goods across the customs border by individuals not intended for production or commercial purposes” on August 21.
Cccording to the amendments, residents can bring goods worth $800 across the state border, without paying any duties. It should be noted that, until now, the limit was $1,500.
Additionally, the limit for goods order online were reduced to $300. Previously it was set up at $1000.
The new limits will be in force from September 22.
The main purpose of the policy is to participate in protection of economic interests and security of the country, internal market and other tasks arising from the economic policy.
It has been revealed that in recent years, attempts by individuals to move goods through the country’s customs border not intended for production or commercial purposes, led to evasion of payment of customs duties, as well as to increase of smuggling of these goods.
Moreover, at the same time, the exemption of imported goods from customs duties within the established limits and quantities, along with an increase in the turnover of these goods on the domestic market, led to a decrease in the annual turnover of imports in the country, and in some cases, bankruptcy of official importers.
Furthermore, as a result of the growing number of cases of selling cell phones and other wireless communication equipment imported into the customs territory by natural persons in the form of goods not intended for production or commercial purposes, and as a consequence the increased propensity for illegal trade by evading customs duties, made it necessary to take appropriate preventive measures in order to completely eliminate attempts to import mobile phones into the country in the form of smuggling.
Thus, as for international practice, in accordance with Turkish law, an individual can bring into the customs territory only two cell phones within one year, which is not intended for production or commercial purposes, and are obligatory registers in the corresponding institutions of this state within one month.
Likewise, according to the legislation of the EU member states, the total volume of goods imported by individuals into the EU member states for non production and commercial purposes is worth up to 300 euro.
Moreover, if considering international experience, the limit of benefits set for goods not intended for commercial and production purposes imported into the country is not so high.
Thus, the size of the limit in Russia, Belarus and Moldova is €200, in Georgia it is $125, in Ukraine it is €100 and in Turkey it is €150.
Additionally, if speaking about EU member states, parcels worth up to €22 can be delivered to the most EU member states without any customs fees. If the parcels cost between €22-150, then only VAT is charges in the amount of €15-50, depending on the country. In addition, if the cost of parcel exceeds €150, then in addition to VAT and registration fees, customs duties are also applied, amount of which depends on the category of goods.
Thus, taking into account the situation, and international experience, it became necessary to amend the existing law of “Preferential and simplified rules for movement of goods across the customs border by individuals not intended for production or commercial purposes”,
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