Decree No 62

Rates of custom duties on export-import operations in the Azerbaijan Republic

In order to improve control over export-import operations through the custom mechanism, to increase export potential and stimulate export, to protect interests of domestic producers and to fulfil demands of the inner market in the Azerbaijan Republic, Cabinet of Ministers of the Azerbaijan Republic issues a decree:

1. To approve Instruction on payment of custom duties (attachment No 1) and Rates of custom duties (attachment No 2) submitted by State customs committee of the Azerbaijan Republic and agreed with involved organisations.

2. To state that:

2.1. Exported commodities irrespective of their kind are not subject to payment of export duty.

2.2. Commodities imported to the territory of the Azerbaijan Republic in compliance with the list given in attachment No 3 to this Decree, irrespective of the country of their origin, are not subject to import duty.

2.3. Commodities imported to the territory of the Azerbaijan Republic in compliance with the list given in attachment No 4 to this Decree, irrespective of the country of their origin, are subject to import duty at a rate of 5 percent of their custom value.

2.4. Except commodities specified in sub-clauses 2.2 and 2.3 of this Decree, and also commodities imported with objectives indicated in clause 3 and liable to import duty at a rate «0» (zero), all other commodities, irrespective of the country of their origin and kind, are subject to import duty at a rate of 15 percent of their custom value.

3. To state that the following commodities are subject to import duty at a rate of «0» (zero):

3.1. Seeds, fertilisers, fodder, pedigree animals, medicinal preparations, medicines used in veterinary, biological preparations and veterinary accessories;

3.2. Packaged baby-food, syringes, pharmaceutical goods;

3.3. Commodities and property intended exclusively for official use by diplomatic representations in the Azerbaijan Republic and organisations of similar rank, and also for personal use by members of diplomatic and administrative -technical personnel of these representations, including members of their families living with them;

3.4. Humanitarian aid intended for free distribution which is imported by humanitarian organisations duly registered on the territory of the Azerbaijan Republic and other legal entities and physical persons, on consent of Republican commission on international humanitarian aid;

3.5. Commodities imported under the aegis of international organisations as free technical assistance;

3.6. Various technical means intended for prophylactics and treatment of disabled persons (except vehicles), raw stock and component parts for their production;

3.7. Commodities imported for transfer thereof to the state property - following confiscation, lost of the owner and also inheritance;

3.8. Property brought into the country as a share of foreign partner in the partnership fund of joint venture or for establishment of the enterprise with 100 % foreign capital;

3.9. Commodities imported to the territory of the Azerbaijan Republic temporarily, and according to the terms of import subject to export, without any changes, back to the country wherefrom they were brought (on presentation of obligatory note to the customs confirming that commodities will be returned to the country of their origin or payment of custom duty. When said commodities are exported from the Azerbaijan Republic sum of custom duty is returned to the payer);

3.10. Transit commodities (under the control of customs);

3.11. Commodities imported for duty free shops;

3.12. Property imported to the Azerbaijan Republic by foreign employees of enterprises with foreign investments solely for their own needs;

3.13. Currency, money, banknotes (except those used for numismatics) imported based on document of Ministry of finances of National Bank (permit) which are legal tender; forms of official governmental documents, ordinary passports and also securities;

3.14. Commodities imported to the territory of the Azerbaijan Republic temporarily with the objective of re-export and also for processing (on presentation of bank guarantee to the customs confirming the fact of export of commodities with the objective of their re-export to the third country without changes, export after processing or payment of custom duty. Sum of custom duty paid when these commodities are exported from the Azerbaijan Republic is returned to the payers);

3.15. Commodities imported at the expense of state budget (based on explanatory letter of Ministry of finances of the Azerbaijan Republic).

3.16. Fish and fish products caught in the Caspian sea basin within the limits of quota of the Azerbaijan Republic and imported to the territory of the Azerbaijan Republic.

4. To take into account that in case of sale of commodities listed in sub-clauses 3.3, 3,8 and 3.12 of this Decree in the Azerbaijan Republic, within 10 days from the moment of sale custom duties should be paid.

Enterprises selling these commodities must notify the customs about such fact in advance, otherwise relevant measures will be taken against them in an order envisaged by legislation.

5. Should there exist agreements between the Government of the Azerbaijan Republic and foreign countries on free trade, custom duties are not paid on commodities imported on the basis of bilateral agreement.

6. To state that 65 percent of money received based on «Instruction on payment of custom duties» which has been approved under the clause 1 of this Decree shall remain on the account of State customs committee and will be used for development of its technical facilities, purchase of required equipment and materials.

7. State customs committee and authorised banks shall provide full and in due time transfer of custom duties on import operations to the state budget.

8. Following this Decree State customs committee shall prepare relevant instructions, after agreement with the Ministry of finances approve them and take necessary measures.

9. To regard decrees of the Cabinet of Ministers of the Azerbaijan Republic No 90 dated 24 April 1995 (except clause 9), No 104 dated 1 May 1995, No 29 dated 16 March 1996, No 178 dated 16 December 1996, and also No 36c dated 18 February 1997 null and void.

10. This decree comes into force from 1 July, 1997.

Prime-minister of the Azerbaijan Republic

A.RASI-ZADE.

Becomes invalid.

Attachment No 1
Approved
by Decree of the Cabinet of Ministers
of the Azerbaijan Republic
No 62, 16 June 1997

1. To state that all legal entities, irrespective on form of property, subordinance and place of registration, persons involved in business activity without the status of legal entity, shall pay for custom operations with commodities imported to the territory of the Azerbaijan Republic and exported from the Azerbaijan Republic, property (except foreign currency) in the following order and at the following rates:

1.1 For commodities imported or exported by state enterprises under barter deals and deals made in inconvertible currency (manats) payment will be taken at a rate of 0,15 % of custom value of these commodities (not less than 3 minimum wages).

If the deal is made in convertible currency payment will be taken at a rate of 0,15 % of custom value of these commodities in accordance with exchange rate for manat established by National Bank of the Azerbaijan Republic with respect to specific foreign currency.

1.2 For property imported to the territory of the Azerbaijan Republic or exported from the Azerbaijan Republic by state enterprises payment will be taken in manats, at a rate of 0,15 % of custom value of this property (not less than 3 minimum wages).

1.3 For custom operations with the property of state enterprises temporarily exported from the territory of the Azerbaijan Republic or imported to Azerbaijan Republic on the basis of customs declaration payment will be taken in the amount of 3 minimum wages.

Custom value of commodities and property imported to the territory of the Azerbaijan Republic or exported from the Azerbaijan Republic under the terms specified in clauses 1.1, 1.2 and 1.3 of this Instruction shall be defined based on instructions on filling Customs cargo declaration.

2. When importing to the territory of the Azerbaijan Republic or exporting from the Azerbaijan Republic commodities or property of production co-operatives, their unions, joint ventures, international organisations, public organisations, foreign companies payment for custom operations will be taken at rates specified below, in sub-clauses 2.1, 2.2 and 2.3.

2.1. When importing to the territory of the Azerbaijan Republic property and commodities as a share in the partnership fund, payment for custom operation will be taken in manats, in an amount of 0,25 % of custom value (not less than 2 minimum wages).

2.2. For commodities imported to the territory of the Azerbaijan Republic or exported from the Azerbaijan Republic (under barter deals or deals made in inconvertible currency ) payment for custom operations will be taken at a rate of 0,25 % of custom value of imported or exported commodities (not less than 4 minimum wages).

2.3. For commodities imported to the territory of the Azerbaijan Republic or exported from the Azerbaijan Republic (with deals in convertible currency ) payment for custom operations will be taken in manats, in accordance with exchange rate of National Bank of the Azerbaijan Republic, in an amount of 0,15 % of custom value of commodities (not less than 5 USD).

2.4 If the deal is accomplished as «delivery of commodities under the direct production relations», payment for commodities and property imported to the territory of the Azerbaijan Republic or exported from the Azerbaijan Republic will be taken at a rate of 0,25 % of custom value of commodities (not less than 4 minimum wages), and also for custom operations made when raw stock and semi-finished products are sent for processing (the customer’s own raw materials), and same raw stock and semi-finished products are delivered after processing - 0,25 % of custom value (not less than 4 minimum wages).

2.5 When consignment deals are accomplished (delivery of commodities on consignment, commission basis) payment for custom operation will be taken at a rate of 0,25 % of custom value (not less than 3 minimum wages); said sum will be withheld in manats, in accordance with exchange rate of National Bank of the Azerbaijan Republic on a day of payment, irrespective of the day of shipment, including CIS countries.

2.6 In case of custom operations with commodities, equipment imported to the territory of the Azerbaijan Republic as humanitarian aid, custom duty is not taken.

2.7 For each additional sheet of Customs cargo declaration payment shall be taken at a rate of 2 minimum wages, if the deal is made in convertible currency - at a rate of 5 USD converted to manats according to exchange rate of National Bank of the Azerbaijan Republic. If deals are made based on manat account, account in inconvertible currency (21, 31, 27, etc.), based on own raw stock of the customer, direct production relations, payment for one additional sheet of Customs cargo declaration will be 2 minimum wages.

3. With transit cargo declarations, payment for each declaration will be 10 US dollars and for each additional sheet - 5 US dollars.

Attachment No 2
Approved
by Decree of the Cabinet of Ministers
of the Azerbaijan Republic
No 62, 16 June 1997

Payments of custom duties are made in manats at an exchange rate of National Bank of the Azerbaijan Republic against US dollars on a day of payment.

Attachment No 3
to Decree of the Cabinet of Ministers
of the Azerbaijan Republic
No 62, 16 June 1997

Head of Management

A.GADJIYEV.

Attachment No 4
to Decree of the Cabinet of Ministers
of the Azerbaijan Republic
No 62, 16 June 1997

Head of Management

A.GADJIYEV