Azerbaijan to switch to new system of customs duties in 2018
Baku, Azerbaijan, Nov. 22
By Azad Hasanli – Trend:
Azerbaijan will switch to a new system of customs duties in 2018, according to the “Commodity Nomenclature of Foreign Economic Activity, Rates of Import and Export Customs Duties” approved by the decision of the country’s Cabinet of Ministers.
The decision was made to improve effectiveness of foreign economic activity by modernizing the mechanism of setting customs tariffs, strengthening state support for domestic production and non-oil exports, protecting the domestic market, as well as switching to a system with fewer customs duties.
The decision will also allow bringing the codes of the commodity nomenclature in line with the international Harmonized System.
In connection with the approval of the new document, two documents – “Rates of Customs Duties on Goods Imported to Azerbaijan” and “List of Goods Subject to Export Customs Duties and Rates of Export Customs Duties” – lose their force.
Earlier, Aydin Aliyev, head of Azerbaijan’s State Customs Committee, told Trend that the committee submitted proposals to the Cabinet of Ministers regarding transition to a three-level customs tariff system, which envisages changing customs duties on raw materials and goods imported to the country.
Proposals for the transition from a multi-level to a three-level differentiated tariff system provide for the preservation of customs duty rates at 0, 5 and 15 percent in Azerbaijan.
Today, the customs rates of 0, 0.5, 1, 3, 5, 10 and 15 percent are applied in the country.
It is proposed to exempt the majority of the goods (raw materials and equipment) from customs duties.
“It is proposed to raise the custom duties for the import of finished products to Azerbaijan to 15 percent,” Aydin Aliyev noted. “On the one hand, this will stimulate and support domestic production, and on the other hand, it will prevent the outflow of foreign currency.”