Foreign Trade Regulation

Azerbaijan has started negotiations with WTO on accession to the organization. The government has undertaken a number of steps to liberalize foreign trade. Import and export is one of the most rapidly developing business segments in Azerbaijan. The average annual growth in foreign trade in recent years is approximately 15%.

Azerbaijani law recognizes several customs regimes applicable to goods imported in Azerbaijan, of which most important to foreign investors being transit, customs storage, bonded warehouse, temporary import, processing on and outside customs territories.

Imports

Import of goods into Azerbaijan is subject to imposition of imports duties (ad valorem duties ranging from 0% to 15%, per unit duties, duties per metric units).

Excise tax applies to certain types of goods (e.g. tobacco and alcohol products). Azerbaijan adopted "destination VAT" principle and VAT (currently set at 18%) is payable (subject, of course, to applicable customs regime) on the declared value of goods (including assessed import duties and excise tax). Certain categories and types of goods are import exempt and to some others 0% VAT applies.

0.15% customs clearance fee is applicable to all imports/exports with certain minor exceptions.

Exports

Exports are exempt from customs duties, except for certain types of metals and metal products.

Under PSA (Production Sharing Agreement) regime, contractors, its agents and sub-contractors are entitled to import and re-export from Azerbaijan free from import duties and restriction goods employed for hydrocarbon activities. Imports under PSA regime are subject to zero rate VAT. Similar regime applies under HGAs (Host Government Agreement).

 


Fore more information please go to our "Doing Business in Azerbaijan" publication

 


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