How to Export to Aaerbaijan - Export to Azerbaijan

Customs Clearance Process in Azerbaijan

By Bakhtiyar I. Mamedov, BISNIS Representative in Azerbaijan June, 2004

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INTERNATIONAL COPYRIGHT U.S. DEPARTMENT OF COMMERCE, 2004. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES

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***NOTE: This report should be used for general reference purpose only. As customs legislation and regulations are constantly changing, it is advised that exporters consult with customs officials from the country of importation to obtain accurate and current information that would pertain to their specific transaction***

TRADE STATISTICS

Key legislation regulating customs rates and procedures for goods imported into Azerbaijan came into force in 1997. On April 20, 2004, Azerbaijan introduced a new tariff schedule, streamlining tariff regime that was established in 1997 with further updates in 1999 and 2001. The standard duty assessment schema was changed from specific customs duties to ad valorem rates (15% on average), in compliance with International Monetary Fund recommendations.

Azerbaijan uses the metric system for weights and measures. Small appliances use European standard plugs and electric connectors. The State Veterinary Committee (SVC) is responsible for ensuring basic health standards on imported food and animal products. State plant quarantine inspection laws ensure standards on products that may carry diseases, pests and/or weeds that have quarantine significance for Azerbaijan. Goods subject to inspection include plants, certain foodstuffs, wood, and leather. A State Agency on Standards, Patenting and Metrology provides functions such as patenting and others standards areas. The Azeri government will also consider adoption of some European Union customs standards. Defunct Soviet Customs standards will be abandoned and replaced with new Azerbaijani standards and international standards.

Azeri government regulations prohibit the export of weapons, explosives, radioactive materials and wastes, narcotics, and psychotropic drugs. In addition, it regulates the export of strategic commodities produced in Azerbaijan. At present, strategic commodities include: petroleum products, cotton, electric power, and non-ferrous metals. Potential buyers of such commodities must get the approval of the State Commission on Supervision of Foreign Economic Relations.

Customs duties do not apply to goods imported under bilateral free trade treaties between Azerbaijan and foreign states. Importers are subject to the payment of a customs processing fee in the amount of 0.015 percent of the declared customs value or a minimum of 16,500 manat ($3.40), whichever is greater. However, it has been reported that the rate of 0.015 percent has not been applied consistently at all ports of entry in Azerbaijan. This fee is payable regardless of whether the goods are exempt from customs duties or VAT. U.S. firms should be forewarned that customs clearances can be problematic and time-consuming.

U.S. Trade (Imports, Exports and Trade Balance) with Azerbaijan

Trade with Azerbaijan: 2004

NOTE: All figures are in millions of U.S. dollars.

Month

Exports

Imports

Balance

January 2004

13.4

1.7

11.7

February 2004

13.4

2.1

11.3

February 2004

13.4

2.1

11.3

March 2004

12.4

0.3

12.1

February 2004

13.4

2.1

11.3

March 2004

12.4

0.3

12.1

April 2004

7.9

2.9

5.0

May 2004

9.3

0.3

9.0

TOTAL

56.4

7.3

49.1

Total Imports from U.S.: 119.7 million (2003)

Source: www.census.gov

Total Volume of Azeri Imports: USD958 million (Jan-April 2004)

Total Volume of Azeri Imports: USD2.6 billion (2003)

Source: State Customs Committee, www.az-customs.net

CUSTOMS CLEARANCE

Azerbaijan requires import licenses for food products of animal origin. The State Veterinary Committee (SVC) issues these licenses. Large-scale satellite dishes and other communications equipment must receive the permission of the Ministry of Communications and Information Technologies.

Azeri legislation imposes special rules on labeling of food and agricultural products. The labels must be in Azeri or at least in Russian or Turkish. English labels are also acceptable if information in Azeri is also provided, although compliance, as seen on supermarket shelves, is spotty at best.

Azeri legislation requires the following product information to appear on the label, however compliance is poor:

-- Name and brand of the product

-- Name and address of producing company

-- Country of origin

-- Expiration date/shelf life

-- Nutrition and caloric values

-- Net weight (grams or kilos)

-- Usage instructions

-- Name and type of packing material

-- Storage instructions

-- Licensing and certification information etc.

-- Special warnings, if applicable

If the product has a shelf life of less than three months, it must include the day, month, and year of expiration. If the shelf life is more than three months but less than eighteen months, the month and year are required. Products with a shelf life of more than three years are technically not allowed for sale in Azerbaijan, however compliance is weak. Fruit products must be labeled. Another regulation requires that labels for fruit ÏjuicesÓ specify whether the product contains fruit juice (90-100% concentrate), nectar (25-50% concentrate), or fruit drinks (up to 10% concentrate).

Customs offices located on border between Azerbaijan and Russia:

1. For Khachmaz Customs House:

Samur Customs Post (motor way) operating duty - 24 hours;

Yalama Customs Post (railway) operating duty - 24 hours;

Khudat Customs Post (motor way) operating duty - 24 hours;

Shirvanovka Customs Post (motor way) operating duty - 24 hours.

Customs offices located on border between Azerbaijan and Turkey:

1. For Customs Committee of Nakhchivan Autonomous Republic:

Sadarak Customs House (motor way) operating duty from 09:00 to 22:00;

Customs offices located on border between Azerbaijan and Georgia:

1. For Tovuz Customs House:

Siniq Korpu Customs Post (motor way) operating duty - 24 hours;

Sadixli Customs Post (motor way) operating duty - 24 hours;

Boyuk Kesik Customs Post (railway) operating duty - 24 hours;

2. For Balaken Customs House:

Mazimchay Customs Post (motor way) operating duty - 24 hours;

Muganli Customs Post (motor way) operating duty - 24 hours;

Customs offices located on border between Azerbaijan and Iran:

1. For Customs Committee of Nakhchivan Autonomous Republic:

Julfa Customs House (motor way) operating duty - 24 hours;

Shahtakhti Customs Post (motor way) operating duty from 09:00 to 19:00.

2. For Astara Customs House:

Astara Customs House (motor way) operating duty from 09:00 to 21:00 daily.

3. For Bilesuvar Custom House:

Bilesuvar Border Check Point (motor way) operating duty from 09:00 to 18:00 daily; Thursday from 09:00 to 16:00; Monday from 09:00 to 16:00; - Friday - day off.

4. For Khudaferin Customs House:

Imishli Customs Post (motor way) operating duty from 09:00 to 18:00;

Horadiz Customs Post (motor way) is not operating.

Customs offices located on sea border between Azerbaijan and Russia, Kazakhstan, Turkmenistan and Iran:

1. For Baku Head Customs Administration:

Ferry Customs Post (marine) operating duty - 24 hours;

2. For Energy Customs House:

Liman Customs Post (marine) operating duty - 24 hours;

Dubendi Customs Post (marine) operating duty - 24 hours.

Customs offices located on air border of Azerbaijan:

1. For Customs Committee of Nakhchivan Autonomous Republic:

Airport Customs Post (air transport) operating duty - 24 hours;

2. For Head Customs Administration in Air Transport:

Head Customs Administration in Air Transport (air transport) operating duty - 24 hours; Ganja Customs Post (air transport) operating duty - 24 hours.

Customs Regimes

Goods imported into Azerbaijan for processing and then re-exported are subject to normal duties and taxes at the time of importation. As soon as processing has been completed and the goods are re-exported, a draw-back procedure can be initiated to recover the taxes and duty paid. There is no formal procedure for submitting an application. Customs establishes the time for the processing and re-export of the goods, usually within two years. In addition, Customs may also stipulate a minimum amount of finished product to assure that the imported goods are utilized for the purpose intended.

Provisions for the importation of goods and equipment are an integral part of production sharing agreements (PSAs). Goods, tools, equipment, supplies, and services necessary for successfully carrying out the objectives of the PSA are generally exempt from import duties and taxes. By extension, foreign firms registered to do business in Azerbaijan and who provide services for contractor parties (CP) or foreign subcontractors (FSC) participating in PSAs may also be exempt from duties and VAT on imported goods and equipment relevant to their work.

The following is a non-exhaustive list of items exempt from import duties:

-- Films for x-rays; medicine for veterinary use; biological preparations and veterinary supplies; packaged baby food; most pharmaceutical goods; prostheses; natural gas; electric power; powder for military purposes; fireworks, rockets, pyrotechnic articles for military purposes; military ships and spare parts; tanks and similar military machines; weapons; wheelchairs and spare parts.

-- Goods and property for official use by diplomatic missions and equivalent missions in Azerbaijan and for private use by diplomatic and administrative employees of these missions and their resident family members.

-- Humanitarian aid for free distribution delivered by properly registered humanitarian organizations and by other legal entities and physical persons under the permission of State Commission on International Humanitarian Aid.

-- Property to be used as contribution by a foreign investor to the charter fund of a joint venture or for the creation of an enterprise fully owned by a foreign investor.

-- Goods delivered to Azerbaijan for a limited term and to be returned unchanged to the country of origin under pre-defined conditions (VAT shall be paid at entrance and reimbursed at exit).

-- Property of foreign employees of enterprises with foreign investment in Azerbaijan for private use.

Temporary Import

Personal items, tools of trade, and business samples may be imported with little problem. Goods to be displayed or exhibited may be brought in as temporarily imported goods for a period of time, but must be re-exported within the time stipulated to avoid paying import duties and taxes. U.S. firms planning to exhibit at major trade exhibitions in Azerbaijan need to work closely with the show organizer well in advance to ensure timely and proper temporary declaration of goods to be exhibited. If sending samples via express mail, firms should contact the local office of the courier service to get advice on declared customs value to avoid protracted and costly problems with Customs officials. Business representatives traveling with laptops must declare them at time of entry, but have generally not encountered problems bringing in or taking out cellular phones or laptops. Temporary entry forms covering laptops must be surrendered on departure.

Customs Warehouse

A license from the Cabinet of Ministers of the Azerbaijan Republic is required to establish a customs warehouse; licenses are granted only to Azerbaijani legal entities and Azerbaijani persons. Imported goods may be kept in a customs warehouse for up to three years duty-free. Once the goods are released from the warehouse, they are subject to all applicable duties and taxes. The customs warehouse will also assess charges for demurrage. The rate for this charge should be negotiated with the customs warehouse prior to consignment to the warehouse to avoid any costly misunderstandings. Goods and equipment maintained in customs warehouses and not released are exempt from import duties and taxes for up to three years. If the goods or equipment are released from the customs warehouse, all import duties and taxes become payable unless another exemption applies.

Re-import/re-export

Azerbaijan's Customs Code establishes procedures for goods, which are imported into Azerbaijan for processing and subsequent export. Under the new code, import duties and VAT are payable upon import of the goods. If the goods are processed and exported from the customs territory of Azerbaijan, all import duties and VAT paid on import are to be refunded from the budget upon export. The new code requires companies that desire to import products for processing and re-export to obtain a license from the Customs Committee. There is no formal procedure specified for making an application for such a license. Legislation does state, however, that the Customs Committee is allowed to determine the time period for the processing of goods, based upon an "economically reasonable" time not to exceed two years for reprocessing and arranging to export the final products. The Customs Committee is also allowed to determine the minimum expected output given the products imported.

Duty Free

Duty-free shop regulates customs when commodities are sold under the customs regulations on the customs territory of the Azerbaijan Republic. These territories include Heydar Aliyev International Airport, Baku International Sea Port and other Ports and Customs Houses determined by Azeri customs authorities without a waiver of customs duties, taxes and applicable measures of economic policy to commodities. Duty-free shop may be established by the State Customs Committee under the license issued by Customs, which specifies terms and conditions subject to change.

Free Trade Zones

The Azerbaijan Customs Code provides for the establishment and operation of bonded warehouses within Foreign Economic Zones (FEZs). While legislation in the mid-1990s was to establish a FEZ in Sumgait, this project was never implemented.

Bonded Warehouse

Azeri Customs Code provides for regulations on the establishment and operation of bonded and customs warehouses; as of Summer 2004. One bonded warehouse is poised to open in Salyan Highway pending final approval from the Customs Board.

3. Customs Documentation:

Import-Export Documentation

Importers are required to provide the Customs Authority with:

1. Signed import contract (and contract number);

2. Customs declarations specifying what goods are being imported;

3. Invoice for the goods imported;

4. Permission from the relevant ministry if imports include pesticides, medicines, or weapons and ammunition;

5. Bill of lading;

6. Sales invoice and packing list;

7. Certificate of origin; and

8. Certificate of quality of the imported merchandise.

Exporters are required to provide the State Customs Committee with:

1. Document verifying the legal status of the business entity;

2. Legal entityÌs code determined by the State Statistics Committee;

3. Copy of the contract (and contract number);

4. Certificate of origin of the product being exported;

5. Document issued by an authorized bank on the pre-payment or opening of a letter of credit for the exported product;

6. Permission of the Cabinet of Ministers if exporting weapons, ammunition, nuclear technology and explosives, and permission of appropriate ministries if exporting certain animal bones, medicinal raw materials, information about natural resources, inventions, precious stones, and antiques;

7. Sales invoice and packing list; and

8. Customs declaration.

4. Transaction Terms - Buyer/Seller Responsibilities

N/A

5. Customs Payments

Commodity Classification and Customs Valuation

Valuation of goods imported into Azerbaijan is based on the declared value that appears on the invoice. Import duties of 0.5, 3, 5, 10 and 15% are then assessed accordingly, based on the Customs Tariff schedule of the Azerbaijan Republic

Import Duty

All imports are subject to duties at uniform rates of 15, 10, 5, 3, or 0.5 percent of the declared customs value, or are duty free. Most goods are subject to the 15 percent maximum. The following non-exhaustive list provides import tariff rates for a range of goods:

Category

Percent

Live animals (except breeding stock)

15

Grain products

5

Ores

0.5

Organic and non-organic chemical products

mostly 0.5

Fertilizer

0.5

Seeds

0.5 & 3

Tobacco

15

Wood and wood products

mostly 10

Paper and cardboard products and wastes

0.5, 3, 5, 10, 15

Textiles

0.5

Cotton

15

Chemical fibers and fabric

5 & 10

Ferrous metals

5

Articles from ferrous metals

10 & 15

Copper

0.5

Articles from cooper

5, 15

Nickel

0.5

Lead

0.5

Zinc

0.5

Tin

0.5

Some types of vehicles

mostly 15

Ships

mostly 0.5

Medical equipment

0.5

Syringes

0.5

Goods, tools, equipment, supplies, and services necessary for carrying out the objectives of the PSA

Exempt from import duties and taxes

Source: State Customs Committee

Excise Tax

Alcoholic beverages and tobacco products are subject to both quantitative restrictions and import licenses. In addition to customs duties, an 18 percent VAT was introduced on January 1, 2001. Goods from CIS countries (except Kazakhstan) are assessed VAT in their country of origin, not in Azerbaijan. There is a regulation on procedures of application of excise marks to alcoholic beverages and tobacco products imported to Azerbaijan. The amount to be transferred to the account of the corresponding customs body for purchase of marks will be calculated base on the following formula:

A = Pm x N

Where A is the amount of the money required for purchase of marks, Pm is the price per mark and N is the number of goods (number of boxes for tobacco goods and bottles for alcohol drinks) subject to marking.

Excise duty to be paid upon the customs declaration of goods will be calculated based on the following formula:

Ae = T x Ep

Where Ae is the amount of excise duty to be paid (in manats), T is the total amount of the excise duty calculated and Ep - is the total excise duty paid upon purchase of the marks.

Application for purchasing of the excise collection marks can be downloaded from

http://www.az-customs.net/en/regulations1.htm

VAT

The following list provides commodities exempted from VAT (imports):

HS Code

Commodity

Group

010111000

Pedigree animals

01

010201000

Cattle

01

010310000

Pigs

01

010410100

Sheep

01

010420100

Goats

01

010511190

Birds

01

040249110

Milk for infants not exceeding 500 grams

04

040700

Breeding eggs only (for incubation)

04

0510

Animal Products for pharmacy

05

051110000

Biological preparations

05

051199500

Cattle embryos

05

060210

Not-rooted grafts

06

060220

Edible fruit and nut trees and bushes Ò inoculated

06

060290410

Forest trees

06

060290450

Rooted graft and young vegetation

06

070110000

Potato Ò for sowing, seasonal, from October to November and from February and March only

07

071290110

Maize Ò for sowing

07

071310100

Pea Ò for sowing

07

071320100

Nut Ò for sowing

07

071331100

ÏVigna MungoÓ haricot bean Ò for sowing

07

071332100

Red, small haricot bean Ò for sowing

07

071333100

Haricot bean Ò for sowing

07

071339100

Other types of haricot beans Ò for sowing

07

071340100

Lentil Ò for sowing

07

071350100

Feeding beans Ò for sowing

07

071390100

Other beans Ò for sowing

07

100300100

Barley Ò for sowing

10

100400000

Oats Ò for sowing

10

100510190

Maize Ò for sowing

10

100610100

Rice Ò for sowing

10

100700100

Sorghum hybrids Ò for sowing

10

100830000

Canary seeds

10

10089010

Triticale Ò for sowing

10

12

Oil and other seeds, straw, forage, except for positions (1202; 1206; 1211; 121291)

12

190110000

Formula (packed)

19

230400000;
230670000

Mixed fodder, its components used in agriculture to feed birds and animals

23

250100310

Industrial salt used for chemical transformations (separation of sodium from chloride)

25

250100510

De-natural salt or for industrial purposes

25

250200000

Unburned pyrites

25

250300

Sulfur of all types (except for sublimated, precipitated or colloid)

25

2504

Natural graphite, graphite plates

25

250510000

Natural quartz sand Ò all types

25

2506

Quartz (except for natural sand)

25

250700

Kaolin and other kaolin clays, calcimined or not calcimined

25

250830000

Fire-proof clay

25

2510

Calcium phosphates natural (phosphate rocks), aluminum-calcium phosphates, phosphate chalk

25

2511

Barium sulfate natural (barite), natural barium carbonate (viterite), calcified and not calcimined (except for barium oxide)

25

252100000

Limestone gumboil for preparation of lime and cement

25

2528

Natural borates and their concentrates

25

253010100

Pearlite

25

26

Ores and slugs

26

270111100

Anthracite

27

070112100

Coal for cooking

27

270120000

Fuel prepared of coal (briquettes)

27

270900900

Oil, crude only by transit-exchange (swap) operations

27

271121000

Natural gas

27

271220000

Technical paraffin

27

271000210

White-spirit

27

271600000

Electric power

27

28

Non-organic chemistry products

28

29

Organic chemical compounds

29

30

Pharmacy products (except for codes 3005; 300640000; 300650000)

30

31

Fertilizers

31

3601; 3602

Gun-powder, explosives

36

360490000

Signaling and rain rockets, fog signals, imported by the Ministry of Defense only

36

370110100

Photo-plates for medical, dentistry and veterinary purposes

37

370210000

x-ray films

37

3801-3804

Other chemical products

38

3808

Insecticides, rodenticides, fungicides, herbicides, substances, regulating growth of plants, disinfectants and similar products

38

390110100;
3901200000;
3902 to 3914;
392030000

Polymers, including low pressure polythene

39

4001 to 4008

Rubber

40

401199100

Tires for mechanisms used in agriculture and forest economy (tractors, combines, sowing-machines)

40

4406

Sleepers for railways

44

45

Plug

45

470100 to 4706

Paper, cardboard mass from timber or other filament cellulose materials

47

480100

Newsprint

48

4901; 4902

Book, newspaper and magazine publications

49

490700100

Post stamps

49

490700300Û
490700990

Securities

49

500100000

Silkworm cocoons suitable for reeling

50

6903

Fireproof ceramic products

69

7102

Diamonds

71

711510000

Catalysts in the form of wire net or platinum grating

71

711021000

Palladium

71

7201

Cast iron

72

7202

Iron alloys

72

7203100000

Products of direct reduction of iron-ore (pellets)

72

720917900;
720927100;
721123910

ÏElectric TechnicalÓ steel

72

721499610

Steel plates, imported for the manufacturing of household refrigerators only

72

7302

Products, rails for railways and tram ways

73

730810000

Bridges and bridge segments

73

730840900

Metallic supports, fastening materials used in construction

73

730890100

Sluices, floodgates, docks and other marine and vessel structures

73

7401 to 7407

Copper

74

7412

Copper fittings for pipes and tubes (e.g. sleeves, bends, flanges and etc.)

74

740811000

Copper wire with more than 6 mm thickness

74

74199900

Copper crystallization Ò imported for metallurgy only

74

75

Nickel

75

7601 to 7608;
760900000

Aluminum and aluminum plates, rolls, wire

76

78

Lead

78

79

Zinc

79

80

Tin

80

81

Other metals (tungsten, molybdenum, tantalum, cadmium, titanium, zirconium, chrome, germanium) and other products

81

8401 to 8409

Central heating boilers and secondary equipment, gas generators, turbines, combustion engines, their parts

84

8410 to 8412

Hydraulic turbines and gas turbines, pipe jet and hydraulic jet engines, vane and hydraulic

84

841340000

Concrete pumps

84

841330100;
841350100 to 843370990

Hydraulic and other pumps, one or two phase pumps for civil aviation

84

841430

Compressors

84

841480100 to 841480710

Turbo compressors and rotary volume compressors

84

841590100

Parts for air conditioning units

84

8417

Non-electric industrial and laboratory ovens and chambers

84

841899900

Vaporizing panel for household refrigerators only

84

841911000 to

841960000

Non-inert water heaters or heating water batteries

84

841989100 to
841990950

Coolers and heaters

84

8420

Calenders and other unsteady (roller) machines

84

842481 to 842490000

Mechanical units for the spreading of liquid and powder materials, fire extinguishers

84

8425

Lifting equipment

84

8426

Vessel derrick cranes and other lifting cranes

84

8427

Vehicle loaders and other loaders equipped with lifting and loading/unloading equipment

84

8428

Other lifting and transporting machinery and equipment (for example elevators, escalators, conveyers and rope ways)

84

8429

Bulldozers, graders, excavators, scrapers, ramming machines

84

8430

Other machines and mechanisms for ramming, digging, extraction of minerals and mining, snow cleaning

84

8431

Parts of equipment indicated in positions 8425-8430

84

8432 to 8436

Agricultural, gardening, forestry machinery, mechanisms for the preparation and treatment of soil, machinery and mechanisms for the collection and threshing of agricultural products, presses for straw and hay; sorting of eggs and other agricultural products, apparatus and equipment for bird-breeding, bee-breeding, milking, as well as milk processing equipment

84

8437

Machinery for cleaning of seeds and wheat, equipment for flour industry, wheat processing

84

8438

Equipment for food industry

84

8439 to 8444

Equipment for paper mass production, cellulose fiber materials, products of paper and cardboard, publishing equipment

84

8445 to 8449

Equipment for textile industry

84

8453 to 8466

Equipment for leather treatment and metal treatment

84

847130000;
847141;
847160;
847170

Calculating machinery and its skids ( up to 1 year from the date of manufacturing)

84

847330100

Electronic skids

84

8474 to 8475

Equipment for minerals

84

8477 to 8480

Equipment for manufacturing of rubber and plastic, tobacco, special machinery and mechanisms, molding templates, models for molding

84

848200000;
848280000

Cone and ball bearing sets imported only for the processing lines of metallurgy, locomotives, wagons and trains

84

8483

Transmission gear, tooth wheels, reduction mechanisms, couplings and other parts of mechanisms

84

8484 to 8485

Metallic seals, fans of vessels and their parts

84

850120

Universal engines for direct and alternating currents (power above 37,5 watt)

85

850131100

Direct current generators for civil aviation

85

850132100

Engines and generators for civil aviation (power from 750 watt to 75 kwatt)

85

850133100;

850134;
850151100;
850152100

Electric engines for civil aviation

85

850153100;
850153500;
850153390;
850153990

Electric engines with the power above 75 kwatt

85

850211100

Electricity generation unit with the capacity above 75 kwatt for civil aviation

85

850212 to 850213

Electricity generation units with the capacity above 75 kwatt

85

850220100

Electricity generators with combustion engines for civil aviation

85

850239

Turbo generators, other electrical generators for civil aviation

85

850240

Electrical rotating transformers

85

850300

Parts for commodity positions 8501 or 8502

85

8504 to 8505

Transformers, electrical transformers, electric magnets

85

8514

Industrial or electrical laboratory ovens and chambers

85

851750100

Telephone stations, instrumentation for carrying or digital wiring, parts for position 851750100

85

851790;
852290910

Electronic skids, parts and accessories

85

852510100

Radio telephone, radio telegraph, radio and TV broadcasting equipment

85

852520100

Telegraph or telephone radio equipment for civil aviation

85

852530100

TV cameras

85

8526

Radio location, radio navigation, and remote controlled radio equipment

85

852990700

Electric skids (for commodity positions 8525-8528)

85

8530

Electric alarm equipment

85

8531

Appliances, equipment and materials assigned only for ensuring of safety at airports, being a part of system of electronic protection along the perimeter of fencing of its territory

85

8532

Electric condensators

85

8533 to 8536

Resistors, multi level printing circuits, electric safe switches

85

8537

Operating panels for electrical equipment

85

8538

Spare parts (for commodity positions 8535, 8536 or 8537)

85

853990100

Plinths for lamps

85

8540; 8541;
8543

Electronic lamps and tubes, transistors, integral circuits, microprocessors, memory units, machines and other electrical instruments

85

86

Locomotives

86

8701

Tractors

87

8703

Specially equipped patrol-quarding vehicles imported only for ensuring of road safety (from the moment of production of which has passed less than 1 year and which were not used)

87

870323199

Special vehicles for medical needs only

87

8705

Special purpose vehicles

87

870600

Chassis with engines installed (only when imported for assembly by groups 8701; 8702; 8704)

87

870790100

Kits

87

8707 to 8708

Spare parts (only for group 8701)

87

8709 to 8710

Transportation means for the forwarding of cargoes, radioactive substances for short distances, military transportation means, vehicles

87

8711

Escort motorcycle , specially equipped only for road police (from the moment of production of which has passed less than 1 year and which were not used)

87

8713;
871420000

Handicap chairs and their spare parts

87

871620

Trailers and semi-trailers for agriculture

87

871639100

Trailers and semi-trailers for the transportation of highly radioactive materials

87

88

Flying apparatus

88

8901 to 8902

Vessels

89

8904 to 8908

Tows, floating rigs for drilling

89

9001;
900290100

Fiber optic cables, optic elements

90

901041000

Equipment for installation of circuits on semiconductor plates

90

9011 to 9013

Complex microscopes, de-fraction apparatus, liquid crystal instrumentation, periscopes, telescopic units

90

901420

Instrumentation for air navigation and airspace navigation

90

9015

Topographic, hydrographic, geophysical and meteorology instrumentation

90

9018 to 9019

Medical and veterinary instruments, tools and equipment, needles, mechanic therapy equipment and artificial breathing apparatus

90

902111000 to 19900

Orthopedic equipment, artificial limbs

90

902130 to 902190900

Eye prosthesis, hearing aids, cardiology stimulators and their parts

90

9022 to 9024

Instrumentation based on x-ray, beta-ray and gamma-ray, scientific-research instrumentation, instrumentation testing of mechanical properties of materials

90

9025 to 9030

Meters, thermometers, barometers, instrumentation and equipment for liquid and gas measurement, gas, water, power meters, oscilloraphs and spectrometers

90

903180100

Measuring equipment for civil aviation

90

903210100;
903220100;
903281100;
903289100;
903290100

Automatic regulation and monitoring equipment and instrumentation for civil aviation

90

93010000;
9302

Arms and ammunition

93

9305 to 9306

Parts to arms and ammunition

93

97

Art works

97

Source: State Customs Committee

Note: The commodities exempted from VAT are determined in accordance with their HS code in Trade Catalogue of Foreign Economic Activity. If commodities classified under Group 84 and 85 are used for more than 2 years, they will be a subject to VAT.

Customs Processing Fee

All customs service payments are to be paid in Azeri Manats at the exchange rate set by the Azeri National Bank on the day of the submission of customs declaration. For information on current exchange rates, please visit the website of the National Bank of Azerbaijan http://www.nba.az/eng/rates.php.

Decree No. 62 establishes a number of customs service fees and instructions, including the following:

- For movable property and goods imported to Azerbaijan as a contribution to the charter fund of a business: 0.25 percent of the customs value;

- Any goods imported or exported for which payment is made in hard currency: 0.15 percent of the customs value (not less than US$5);

- Consignment transactions, irrespective of the destination country, including CIS: 0.25 percent of the customs value.

7. Prohibited or Restricted Imports

Azerbaijan prohibits the import of radioactive materials and wastes, narcotics, and psychotropic drugs. Special permission is required to import weapons, explosives, and certain radioactive equipment used in the oil industry.

8. Membership in Free Trade Agreements

Azerbaijan has signed bilateral free trade agreements with seven states of the former Soviet Union, although the trade liberalizing provisions of most of the agreements have not yet taken effect. Azerbaijan signed agreements with:

the Russian Federation (September 1992); Moldova (May 1995); Ukraine (July 1995); Turkmenistan (March 1996); Uzbekistan (May 1996); Georgia (June 1996); and Kazakhstan (June 1997). Signatories agree not to apply duties, taxes and charges that equally affect exports and imports between them. Currently, Azerbaijan does not apply customs duties to imported goods from Russia, Georgia, Kazakhstan, or Ukraine.

Azerbaijan joined the agreement on the establishment of a free trade zone within the CIS on April 26, 1994. It provides that signatories agree not to apply duties, taxes and charges on exports and imports between them. This agreement and subsequent amendments have not been fully implemented.

In July 1999, Azerbaijan entered into a Partnership and Cooperation Agreement with European Union. Among its goals is making legislation in Azerbaijan compatible with the EU body of law. This includes the protection of intellectual property rights, assets and investments, and corporate and personal belongings against abuse. It also awarded Azerbaijan most favored nation (MFN) status with the EU. In addition, Azerbaijan is currently seeking WTO membership and was recently granted USD 1 million from the U.S. Trade Development Agency to support its application, however accession is not likely before 2005

9. Applicable Legislation

2004 Resolution of Cabinet of Ministers #58 on Customs Tariff. On April 12, 2001, Azerbaijan introduced a new tariff schedule, replacing the previous streamlined tariff regime that was established in 1997 and updated in 1999. In addition to customs duties, an 18 percent VAT was introduced on January 1, 2001.

1995 Azerbaijan Customs Tariff

http://www.az-customs.net/en/soglashenie1.htm

http://www.az-customs.net/en/zakon2.htm

1997 Azerbaijan Customs Code

http://www.az-customs.net/en/code1.htm

1998 Resolution of Cabinet of Ministers #91 - on Customs Duties Rates for Export-Import Operations in Azerbaijan

http://www.az-customs.net/en/kabmin3.htm

1998 Resolution of Cabinet of Ministers #160 Ò on Regulations of Full or Partial Release From Customs Duties and Taxes of Goods Temporary Imported/Exported to Azerbaijan

http://www.az-customs.net/en/kabmin5.htm

1999 Resolution of Cabinet of Ministers #25 Ò on Changes and Amendments to 1998 Resolution #91

http://www.az-customs.net/en/kabmin5.htm

2000 Resolution of Cabinet of Ministers #124 Ò on The List of Imported Commodities Exempted From the Value Added Tax

http://www.az-customs.net/en/kabmin4.htm

2001 Resolution of Cabinet of Ministers #48 Ò on Return to the Taxpayer of Overpaid Taxes, Interests and Financial Sanctions

http://www.az-customs.net/en/kabmin2.htm

For more information on legislation regulating customs in Azerbaijan, please visit the website of the State Customs Committee: www.az-customs.net

III. Ports of Entry

Useful Contacts:

State Customs Committee

Address: 2 Inshaatchilar Avenue

Baku 370073, Azerbaijan

Tel: (994 12) 388080

Fax: (994 12) 934067, 981836

E-mail: external1@az-customs.net

Web: www.az-customs.net

Contacts: Kamaladdin Fattah oglu Heydarov, Chairman, Colonel-General

Aydin A. Aliyev, First Deputy Chairman, Major-General

Rafael Kh. Mirzayev, Deputy Chairman, Major-General

Rza J. Hasanaliyev, Deputy Chairman, Major-General

Safar Mekhtiyev, Deputy Chairman, Colonel

Dilaver Farzaliyev, Foreign Relations Department
1. Name of Port of Entry

Corresponding Customs House(s) (contact info)

Head Customs Administration on Air Transport
Note: Head Customs Administration on Air Transport covers Ganja Airport Post, Gala Customs Post, H.Z. Tagiyev Customs Post

Heydar Aliyev International Airport

Address: Bina settlment

Baku 370109, Azerbaijan
Tel: (994 12) 972777

Fax: (994 12) 972777

Department for Protection of Economic interests of Azerbaijan in the Caspian Sea

Note: DPE covers Baku International Port Post, Khachmaz sea control Post, Siyazan sea control Post, Pirallahi sea control Post, Khovsan sea control Post, Garadakh sea control Post, Neftchala sea control Post, Lankaran sea control Post

Energy Customs House
Note: Energy Customs House covers Baku Port Post, Dubandi Post, Guzdak Post and Yeni Sangachal Post

Address: 62 Neftchilar Avenue
Tel: (994 12) 938668, 983764

Nakhchivan Customs Committee
Note: Nakhchivan Customs Committee covers Julfa Customs House

Address: 6 Azadlig Avenue

Nakchivan city 373630, Azerbaijan

Tel: (994 236) 5-75-29
Fax (994 236) 5-75-29

Julfa Customs House
Note: Julfa Customs House covers Nekhram Post

Address: 5 J. Mammadguluzadeh Street
Julfa city 373620, Nakhchivan, Azerbaijan

Tel: (994 236) 6-10-46, 6-10-53
Fax: (994 236) 6-11-12

Sadarak Customs House
Note: Sadarak Customs House covers Shahtakhti Post

Address: Sadarak region 373699, Nakhchivan, Azerbaijan

Astara Customs House
Note: Astara Customs House covers Lankaran Post and Masalli Post

Address: 1 Azadliq Street
Astara city 373780, Azerbaijan

Tel: (994 195) 3-31-90
Fax (994 195) 3-10-06

Balakan Customs House

Note: Balakan Customs House covers Muganli Post, Mazimchay Post and Lakhij Post

Address: Balakan City, 374570, Azerbaijan

20 Yanvar Street
Tel: (994 219) 2-18-39

Bilasuvar Customs House

Note: Bilasuvar Customs House covers Bilasuvar Post and Salyan Customs Post

Address: Bilasuvar 373840, Azerbaijan

8 Mart Street, 2
Tel: (994 159) 3-34-69

Ali-Bayramli Customs House

Note: Ali-Bayramli Customs House covers Kurdamir post

Address: 14 M.Rasulzadeh Avenue

Ali-Bayramli 373300, Azerbaijan
Tel: (994 297) 4-16-92, 4-08-16
Fax (994 297) 4-16-92

Yevlakh Customs House

Note: Yevlakh Customs House covers Shaki Post, Mingachevir and Gabala Customs Post

Address: 21 Nizami Street

Yevlakh 374300, Azerbaijan

Tel: (994 166) 6-44-27
Fax (994 166) 6-44-27

Ganja Customs House

Note: Ganja Customs House covers Samukh Post and Shamkir Hydroelectric Power Station Post

Address: 44 Z. Hajiyev Street

Ganja 374718, Azerbaijan

Tel: (994 22) 56-66-13
Fax (994 22) 56-14-16

Sumgayit Customs House

Note: Sumgayit Customs House covers Shirvan Post and H.Z. Tagiyev-1 Post.

Address: 2 Sulkh Street

Sumgayit 373200, Azerbaijan

Tel: (994 164) 5-16-19, 5-60-97

Tovuz Customs House

Note: Tovuz Customs House covers 7 posts. Jandargol Post, Girzan Post, Poylu Post, Sinig Korpu Post, Sadikhli Post, Boyuk Kasik Post and 2-nd Shikli Post

Address: 44 I. Murshudov Street

Tovuz 374810, Azerbaijan

Tel: (994 231) 5-62-24, 5-30-10

Khacmaz Customs House

Note: Khacmaz Customs House covers 5 posts which include Khanoba Post, Samur Post, Yalama Post, Zukhul Post, Shirvanovka Post

Address: 3 Ashig Alaskar Street

Khacmaz 373150, Azerbaijan

Tel: (994 172) 3-23-56, 3-34-40

Khudaferin Customs House

Note: Khudaferin Customs House covers Khoradiz Post and Imishli Post.

Address: Dashburun Settlment

Baylagan region 373410, Azerbaijan

Tel: (994 252) 6-81-33

Baku Excise Customs Post

Address: Sulu-Tapa Settlement

Baku 373250, Azerbaijan
Tel: (994 12) 972019
Fax: (994 12) 972019

Servicing Brokers (contact info)

Blue Water Shipping Caspian

Description: Customs clearance and consulting; logistics Ò track and trace; warehousing; distribution and trucking; service and full loads from Europe to Azerbaijan, Georgia, Kazakhstan, Turkmenistan; air and sea charter; airfreight and carrier service, road and rail service; general freight forwarding; reefer transport and reefer storage; projects and heavy lift transport; transport solution to the oil and energy sector.

Address: ÏWellington HeightsÓ, Block AG, 8 Shahbazi Street

Baku 370006, Azerbaijan

Tel: (994 12) 975830, 975831, 975832, 873616

Fax: (995 12) 988164

E-mail: bws@bws.az

Murphy Shipping & Commercial Services Limited

Address: 8 Rasul Rza Stree, Apt 15/26

Baku, Azerbaijan

Tel: (994 12) 980151, 450000, 983422, 986641

Fax: (994 12) 939315

E-mail: freight@murphy.az

Contact: Rauf Mamedov, Operation Director