Study of Small and Medium Enterprises in Azerbaijan - IFC

Foreign trade with certain category of goods is subject to specific requirements established
by special laws. For example, the law on Export Control sets up basic rules
for carrying out state control over import and export of goods for civil, military, and
other purposes enlisted by the law as goods under export control. The law requires
obtaining a special permit to export, re-export, import, re-import, and transit such
goods. Pursuant to Resolution No. 230 of the Cabinet of Ministers on Amendments
to Certain Legal Acts in Connection with the Implementation of the Law on Export
Control dated December 15, 2005, residents are required to obtain a special permit
to export and import goods under export control for civil and military purposes.
According to the Decree on Foodstuffs, foodstuffs exported to the EU countries are
subject to quality certification.
As observed from the number of legal acts, customs legislation is still dispersed
throughout different forms of laws and decrees and unclear in certain aspects, and,
therefore, further streamlining and unification may create much certainty in this
area.
9.2 The role of individual entrepreneurs and smes in
foreign trade
Participation of small and medium businesses in foreign trade should be fostered,
since on the export side it might facilitate the transformation of the export structure
from raw materials to processed goods, while on the import side it might reduce entry
constraints into the Azerbaijani markets of goods otherwise unavailable, or available
in limited quantity and quality.
Notwithstanding the government reforms aimed at facilitation and liberalization of
foreign trade, IFC survey results indicate that the contribution of SMEs and IEs to
foreign trade still remains considerably low.
Chart 9.1
IFC Survey:
Percentages of IE’s
and SME’s that
have not conducted
import and export
operations during
12 months
100%
80%
60%
40%
98%
92%
20%
0%
2%
Exported
No export
8%
Imported
No import
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St u d y o f Sma l l a n d Me d i u m Ent e r p r i s es in Az e r b a i j a n