Azernews.Az

Iran will start constructing a new customs checkpoint on its border with Azerbaijan soon, director of the Araz free economic zone Sadiq Najafi told Trend news agency.

"The new customs checkpoint will be built in the Gulu Beglu village bordering on the town of Horadiz in [Azerbaijan's] Fizuli region and will be located in a free economic zone," Najafi said.

It is planned to transport passengers and international cargo through the new customs checkpoint, Najafi added.

Najafi said further that hotels and guest houses, a customs office, administrative premises, warehouses, offices of trading companies and financial institutions will be built during the implementation of the first phase of the free economic zone project in Gulu Beglu.

"Iranian and Azerbaijani people have historical, cultural and religious ties," he said. "Work has been launched to create an economic zone in Gulu Beglu for further development of relations."

Najafi added that Iran and Azerbaijan have great potential to boost production in the fields of agriculture, animal husbandry, meat and dairy products, to increase exports and to obtain additional revenue.

Legal entities that will invest in the economic zone in Gulu Beglu will be exempt from taxes for 20 years, Najafi said. They will also be given the opportunity to purchase land plots at a bargain price and on credit, to carry out simplified customs clearance and take advantage of other benefits.

"We hope that the free economic zone will create [suitable] conditions to strengthen the relations between the two countries," Najafi said.