Azerbaijani Cabinet of Ministers exempts equipment import for SOCAR plant from customs duties and VAT
Azerbaijan, Baku, Aug.3 / Trend /
By a decision of the Azerbaijani Cabinet of Ministers, goods and equipment imported within the construction of industrial enterprises of strategic importance, which produce water transport means in line with international standards, are exempted from customs duties and value added tax (VAT) from Sept.1 until Jan.1, 2014.
The amendments are applied to the goods and equipment imported based on documents confirmed by the State Oil Company of Azerbaijan (SOCAR).
SOCAR has already started work within the construction of a new shipyard.
The plant's capacity is 25,000 tons of steel per year. The plant will annually manufacture four oil tankers with deadweight of 15,000 tons, as well as four marine maintenance and towing vessels. The project's main objective is to build vessels which are required to meet the needs of the Caspian Sea.
The shipyard has received an investment of $450 million for construction.
SOCAR President Rovnag Abdullayev, the Head of the Azerbaijan Investment Company (AIC) Afgan Isayev, and Keppel CEO Tong Chong Heong, signed an agreement in December 2010 to build the shipyard.
Under the contract, the equity division in the enterprise will be distributed as follows: SOCAR -- 65 percent, AIC - 25 percent, and Keppel - 10 percent.