Study of Small and Medium Enterprises in Azerbaijan - IFC

9.5.4 Removal of the barriers to foreign trade related to
technical regulation (standardization and certification) by:
• Separating the standardization and certification functions;
• Reviewing the list of standards and abolish the ones not necessary on the
grounds of health and safety in a market economy;
• Considering the possibility to adopt international standards to avoid the
“maintenance cost” of the system;
• Applying the risk-based approach by determining which goods and services
need to be certified in order to exclude non-risky categories and services from
mandatory certification, while making the standardization of other goods
voluntary;
• Shifting from end-product certification to process certification;
• Abolish the requirement that each consignment of products must be certified;
and
• Creating internationally required laboratory facilities to certify Azerbaijani commodities
according to internationally adopted standards to facilitate their export.
Expected impact
Reduction of the coverage of certification would result in additional cost savings
for entrepreneurs. As a result of adoption of international standards “maintenance
cost” for the authorities responsible for elaboration of standards would be reduced.
Possibility to certify Azerbaijani commodities with internationally accepted standards
would allow Azerbaijani exporters easier access to international markets. Process
certification would allow identification of risky components at the early stages of
product development and will thus increase efficiency of certification. Improvement
of technical regulation will increase competitiveness of Azerbaijani goods and will
create a possibility for entrepreneurs to market their products in compliance with
international standards.
9.5.5 Rationalize customs tariff rates and other customs
payments by:
• Approximating customs tariffs for similar type of goods, raw materials and fullyprocessed
goods not to discourage import/export of any of them or introducing
uniform tariff rate;
• Introducing uniform tariff rates for similar types of goods; and
• Eliminating VAT exemptions to avoid distortions it causes.
Expected impact
As a result of these reforms, possible distortions caused by excessive tariffs will be
eliminated. Approximation of customs tariffs or establishment of a uniform tariff rate
alongside the abolishment of VAT exemptions will reduce the incentives and ability of
customs officials to trade between classes of goods or apply “preferential treatment” in
exchange for unofficial payments. Moreover, these measures will also ease calculation
of customs payments.
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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