Specific gravity of duty free in common volume of import into Azerbaijan is decreased

Business Materials 24 June 2006 11:43 (UTC +04:00)

The State Customs Committee of Azerbaijan (SCC) supports the cut of tax and duty free import goods in Azerbaijan. According to chief of SCC Head Department on Finance-Tariff and Currency Regulation Mirgasim Bagabov, today the specific gravity of tax and duty free goods is 60%, but in 2005 at the level of 72-73%.

The main part of the duty free was made within oil contracts. For their liquidation, the customs bodies appealed to the government last year. In opinion of customs officials, it is high time to involve them in taxation due to the completion of the first stage of the project of full-scale development of Azeri-Chirag-Gunashli oil field. Azeri oil is already delivered to the world market, and investments have been disbursed for the realization of project. Therefore, the specific gravity of necessary goods imported within oil contracts is decreased in general volume of import, told Bagabov.

Taking into consideration that the traditional sale market of Azerbaijani goods and services is the countries of CIS, the country made contracts within creation of a free economic zone. Due to these contracts the country was exempted for paying customs duties. In accordance with such privilege, the goods are imported from the countries of CIS. The duty free is also applied to goods imported due to grants in Joint Enterprises.

In the world practice, if privileges to the costumes tariffs dont justify themselves within three years, their activity are stopped.