Baku, Azerbaijan, Oct. 28
By Maksim Tsurkov – Trend:
Creation of a free trade zone (FTZ) in Azerbaijan around the Baku International Sea Trade Port in Alat settlement is a project with a great future, Aboubaker Omar Hadi, chairman of Djibouti Ports and Free Zone Authority (DGZ), said Oct. 28 in an exclusive interview with Trend in Baku.
He said the creation of an FTZ is a very important factor for attracting cargo traffic and investments to Azerbaijan.
Djibouti has an extensive experience in the FTZ creation, Hadi said, adding the first FTZ was established back in 1954, more than 60 years ago.
The FTZ will create economic revival in the port and attract business operations to Azerbaijan, he added.
Products are received, processed, re-exported in this zone, and it is very comfortable and good for the parties involved, Hadi noted.
Many countries integrate the work of their customs services into the FTZs, he said.
In Djibouti, the FTZ covers not only a port, but also an airport, which greatly facilitates the work, Hadi noted.
He thinks that at least the sea port and the FTZ should be under a single management.
He added that a delegation from Djibouti arrived in Azerbaijan to share its experience and gave some recommendations for the establishment of the FTZ.
Hadi said the delegation told about the mistakes Djibouti made when creating the FTZ, so that Azerbaijan would not repeat them.
He believes that the most important part of creating an FTZ is the development of a legal framework, adding that it must necessarily exist.
Some countries that didn’t have free market traditions, free trade zones, cannot understand why they have to change the laws, he noted. But if the state wants to create an FTZ, it must begin with the legal framework in order to attract businessmen and large companies, simplify the customs procedures, Hadi added.
He said Djibouti issues visas and work permits directly at the port in the FTZ.
It is a common practice, he added. Visas are issued only for the businessmen working in the FTZ, Hadi said, adding that this is a very important point, and everything works on the principle of “a single window”.
This is something that Djibouti recommends Azerbaijan to create in Baku, he noted.
A specific law on the FTZ is also needed, he said.
The concept is very simple, Hadi said, explaining that the FTZ territory shouldn’t be considered as a territory of Azerbaijan.
All this is needed in order to attract companies, and that will create jobs for local youth, he added.
In addition, these companies shouldn’t pay taxes, Hadi said.
They will bring profit through their investments, he noted.
Azerbaijan's President Ilham Aliyev signed a decree March 17, 2016, on measures to create a free trade zone type special economic area in the Alat township of Baku’s Garadagh district.
A draft law on the free trade zone will be discussed during the fall session of the country’s parliament.
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