Study of Small and Medium Enterprises in Azerbaijan - IFC

Box 9.5 Customs payments
The Customs Code distinguishes among the following types of payments to the customs authorities:
• Customs duties;
• VAT;
• Excise tax;
• Road tax;
• Fees for customs clearance;
• Fees for the storage of goods;
• Fees for customs’ supervision of goods;
• Fees for the provision of information and consultation services;
• Fees for the issuance of a preliminary decision;
• Fees for participating in customs auctions;
• Other payments.
The customs clearance procedure may also prove to be burdensome for IEs and SMEs.
When the procedures are carried out outside of normal working hours, the custom
clearance payments are more expensive (doubled). For certain types of goods there
may be different rates of duty depending on the season of the year (see Box 9.6).
Box 9.6 Customs clearance payments under the Customs Code
The general rates for customs clearance depends on the cost of goods in (in Azerbaijani manat and US$):
• for goods with a value up to 1,000 ($1,235), the fee is 10 ($12);
• for goods with a value from 1,001 ($1,236) to 10,000 ($12,346), the fee is 50 ($62);
• for goods with a value from 10,001($12,347), to 100,000 ($123,457), the fee is 100 ($123);
• for goods with a value more than 100,001 ($123,458), the fee is 275 ($340).
Although Azerbaijani law provides for exemptions to the payment of custom duties
for importation of certain categories of goods, these exemptions as a rule do not
benefit smaller firms as they mainly relate to petroleum operations of state enterprises
(see Box 9.7).
Box 9.7 Imports exempt from import duties:
• goods imported for petroleum operations in connection with certain exploration, development, and production-sharing agreements, and
transportation agreements related to hydrocarbons.
• equipment and materials imported into Azerbaijan for the production of passports and personal identification cards.
• goods imported using financial aid, loans, and technical grants of international organizations, foreign governments, and foreign persons
in accordance with intergovernmental and international treaties of Azerbaijan.
• operations related to the transfer of fixed assets, movable or other property to the State Oil Fund pursuant to agreements on the
exploration, development, and production sharing of hydrocarbons, export pipelines, and other similar arrangements entered into by
Azerbaijan or legal entities representing Azerbaijan.
Aze r b a i j a n Bu s i n e s s En a b l i n g En v i r o n m e n t Pr o j e c t 153