Study of Small and Medium Enterprises in Azerbaijan - IFC
Study of Small and Medium Enterprises in Azerbaijan - IFC
Study of Small and Medium Enterprises in Azerbaijan - IFC
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Chart 9.2<br />
Areas <strong>of</strong> activities <strong>of</strong><br />
entrepreneurs that<br />
conducted import<br />
operations <strong>in</strong> 2007<br />
Other manufactur<strong>in</strong>g<br />
Repair <strong>of</strong> motor vehicles, household<br />
<strong>and</strong> personal goods<br />
Construction<br />
Health <strong>and</strong> social work<br />
Agro process<strong>in</strong>g<br />
Wholesale trade <strong>and</strong> retail trade<br />
Other community, social <strong>and</strong><br />
personal service activities<br />
Other<br />
0% 10% 20% 30% 40% 50%<br />
As revealed by <strong>IFC</strong> survey, low participation <strong>of</strong> <strong>in</strong>dividual entrepreneurs <strong>and</strong> SMEs<br />
<strong>in</strong> foreign trade is ma<strong>in</strong>ly due to the complexity <strong>of</strong> import/export procedures. More<br />
specifically, bureaucratic maze <strong>and</strong> corruption stem<strong>in</strong>g from: complex <strong>and</strong> chang<strong>in</strong>g<br />
customs legislation, excessive bureaucracy, arbitrary customs decisions, import <strong>and</strong><br />
export restrictions, lack <strong>of</strong> f<strong>in</strong>ancial resources <strong>and</strong> difficulties <strong>in</strong> access to exist<strong>in</strong>g<br />
f<strong>in</strong>ance add to the cost <strong>of</strong> trade <strong>and</strong> create major concerns <strong>and</strong> barriers for <strong>in</strong>dividual<br />
entrepreneurs <strong>and</strong> SMEs to engage <strong>in</strong> foreign trade.<br />
9.2.1 Import <strong>and</strong> export procedures need further streaml<strong>in</strong><strong>in</strong>g<br />
to encourage the participation <strong>of</strong> <strong>in</strong>dividual entrepreneurs <strong>and</strong><br />
SMEs <strong>in</strong> foreign trade<br />
<strong>Azerbaijan</strong> ranks 174 th <strong>in</strong> the Trad<strong>in</strong>g Across Borders category <strong>in</strong> the 2009 Do<strong>in</strong>g<br />
Bus<strong>in</strong>ess report, based on the complexity <strong>of</strong> procedures <strong>in</strong> terms <strong>of</strong> cost, paperwork,<br />
<strong>and</strong> time.<br />
Accord<strong>in</strong>g to the <strong>IFC</strong> survey, import/export procedures <strong>in</strong> <strong>Azerbaijan</strong> were considered<br />
to be one <strong>of</strong> the three most complicated set <strong>of</strong> procedures. Survey respondents<br />
<strong>in</strong>dicate that it takes four to five days on average until their imported goods are cleared<br />
from a customs po<strong>in</strong>t <strong>and</strong> an additional one to three days is needed to export (See<br />
Table 9.1).<br />
146<br />
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 <strong>in</strong> Az e r b a i j a n
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