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Azerbaijan expands trade possibilities via single window

Politics Materials 21 January 2009 10:06 (UTC +04:00)

The "single window" principle has started to be introduced in the customs checkpoints in Azerbaijan since January 2009. The State Customs Committee of Azerbaijan (SCC) has already completely introduced the system of "single window" in all checkpoints of the country. The cargos in transit through border that were formerly checked by the State Border Service, State Sanitary Control, State Veterinary Service, Sanitary department of the Ministry of Health, and also by the employees of the Ministry of Transport and Interior Ministry now pass only customs inspection. This made it possible to reduce the period of checking in the checkpoints from two-three days, depending on cargo, to the maximum of 20 minutes.

The works in this regard commenced since November 2008 after Azerbaijani President Ilham Aliyev issued a decree on introduction of a 'single window' principle since 1 January 2009 during inspection of commodities and vehicles at state border check-points. The object of the decree is to enlarge the carrying capacity in state borders, to remove artificial obstacles during the check of commodities and vehicles and import and export operations in accordance with up-to-date requirements.

Earlier several types of control on commodities and vehicles were used at check points that delayed the customs examining procedures. In addition, the same procedure has been done several times and vehicles had to stay for some time at check points causing the raise in prices of transport expenditures.

Transferring from five-stage customs procedure to the single-stage, introducing "single window" principle in the customs checkpoints in Azerbaijan will make it possible to conduct registration and provide customs declarations only by one inspector, which will increase his/her personal responsibility and will substantially reduce the time of realization of customs procedures, will contribute to reduction in the expenditure of participants in the external economic activity, and also will make possible to increase interest in the sector of entrepreneurship and will enlarge the possibilities of business development.

Currently, 27 checkpoints function in Azerbaijan. The foreign trade turnover of Azerbaijan and number of countries making export and import operation with the country increase each year. Thus, In January to November 2008 the foreign trade turnover with 140 countries comprised $53472.6mln. The amount of export increased by 760.16% as compared to last year and comprised $46976.8mln, while import rose 29.65% to $6495.8mln. The black ink in the foreign trade turnover totaled $40481.1mln. Azerbaijan exported 2,071 types of goods and imported 5,784.

In this period the highest amount of export fell on Italy. Thus, in January to November 2008 Azerbaijan exported commodities to Italy totaling $18951.7mln which makes up 40.34% of all export. Italy is trailed by the USA ($5850.4mln) and Israel ($3478.4mln).

The traditional domination of three countries in import seems to be as: Russia ($1235.8mln), despite cessation of gas import, Turkey ($729.3mln). Germany with $530.8mln occupies the third place.

In January to November 2008, Azerbaijan's trade turnover with the CIS countries made up $3675.9mln or 6.8% of the gross amount of Country's foreign trade turnover.

Currently practically the continuous process of revision of procedures is observed in many countries (European Union, Russia, Ukraine and other), especially customs services, in connection with the realization of the provisions of Kyoto Convention, which are directed towards the harmonization of customs procedures.

In this case the principle of "single window" is used in the foreign countries in one of three versions.- The customs bodies are qualified for a number of authorities of other state departments, which make control on the import/export operations (for example, in Holland and Sweden).- United system is introduced, which integrates collection, working, and then dissemination of online information on the interested state departments (for example, in the USA).

- Automated system is introduced, through which the participants in the external economic activity give online commercial declaration, designed in one document, for obtaining permission on deals from the different controlling bodies. In this case, the answers of state departments to the approved requests are e-mailed back (for example, in Singapore).

As compared to the foreign countries, the "single window" in the customs checkpoints in Azerbaijan now works according to the individual principle, similar to the first and third version, because since 2009 the subjects of external economic activity on the border with Azerbaijan have been passing registration through the customs organ, and since 2008 registration for starting business in the territory of Azerbaijan has also been realized according to the principle "single window" through the Ministry of Taxes.

Today a number of international organizations, including United Nations Centre for Trade Facilitation and Electronic Business, International Trade Centre, International Council for Trade and Development, World Trade Organization, World Customs Organization, United Nations Commission on International Trade Law, International Chamber of Commerce carry out special works on simplification in trade.

Two basic approaches to the determination of understanding of simplification in the commercial procedures are made on the basis of the explanation of these organizations: narrow definition, which combine the assistance to trade in simplification in the customs regulations, and wide view, when assistance to trade is extended not only to the customs procedures and technical requirements, but also to state's creation of adequate political and economic environment for the effective realization of the business deals.

The principle of "single window" in Azerbaijan contributes to the development of efficient co-operation with the foreign countries and organizations as well as assists in the talks of Azerbaijan's entrance to the World Trade Organization.

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