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Study of Small and Medium Enterprises in Azerbaijan - IFC

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Chart 5.2<br />

The M<strong>in</strong>istry for<br />

Emergency Affairs,<br />

the M<strong>in</strong>istry <strong>of</strong> Taxes<br />

<strong>and</strong> the M<strong>in</strong>istry<br />

<strong>of</strong> Labor <strong>and</strong> Social<br />

Protection most<br />

frequently require<br />

permits<br />

(% <strong>of</strong> respondents obta<strong>in</strong><strong>in</strong>g<br />

permits)<br />

M<strong>in</strong>istry for Emergency Affairs<br />

M<strong>in</strong>istry <strong>of</strong> Taxes<br />

M<strong>in</strong>istry <strong>of</strong> Labor <strong>and</strong> Social Protection<br />

M<strong>in</strong>istry <strong>of</strong> Economic Development<br />

M<strong>in</strong>istry <strong>of</strong> Health<br />

M<strong>in</strong>istry <strong>of</strong> Transportation<br />

Individual entrepreneurs<br />

SME<br />

State Agency for St<strong>and</strong>artization<br />

M<strong>in</strong>istry <strong>of</strong> Ecology <strong>and</strong> Natural<br />

Resources<br />

M<strong>in</strong>istry <strong>of</strong> Industry<br />

Local Executive Authorities<br />

Azersu<br />

State L<strong>and</strong> Committee<br />

M<strong>in</strong>istry <strong>of</strong> Agriculture<br />

Municipalities<br />

0% 10% 20% 30% 40% 50% 60% 70% 80%<br />

Box 5.3 An example <strong>of</strong> duplicative permits for sale <strong>of</strong> foodstuff<br />

Accord<strong>in</strong>g to article 7 <strong>of</strong> the Law on food-stuff, <strong>in</strong> order to sell foodstuff, the entrepreneur must obta<strong>in</strong> a hygiene certificate from the M<strong>in</strong>istry<br />

<strong>of</strong> Health to provide conformity <strong>of</strong> the foodstuff with hygiene st<strong>and</strong>ards. In addition, accord<strong>in</strong>g to article 11 <strong>of</strong> the aforementioned law the<br />

entrepreneur should also obta<strong>in</strong> an approval from the M<strong>in</strong>istry <strong>of</strong> Ecology <strong>and</strong> Natural Resources if he/she needs to use label “medical”,<br />

“deistic” or “ecologically clean” on the foodstuff.<br />

One way to optimize the process would be to amend the law <strong>and</strong> transfer authority to a s<strong>in</strong>gle agency.<br />

There are also cases <strong>of</strong> duplicative permits with<strong>in</strong> one agency. For example, accord<strong>in</strong>g<br />

to the Cab<strong>in</strong>et <strong>of</strong> M<strong>in</strong>istries’ decree No. 214 34 , to hire a foreigner <strong>in</strong> the Republic<br />

<strong>of</strong> <strong>Azerbaijan</strong> the employer must obta<strong>in</strong> a work permit from the M<strong>in</strong>istry <strong>of</strong> Labor<br />

<strong>and</strong> Social Protection. However, when the employer transfers the hired foreigner to<br />

another work (with<strong>in</strong> the same organization) he/she must obta<strong>in</strong> a new work permit<br />

from the same m<strong>in</strong>istry. It rema<strong>in</strong>s questionable why the M<strong>in</strong>istry’s approval is needed<br />

for an action which already requires hav<strong>in</strong>g a work permit. In addition, the functions<br />

<strong>of</strong> different permit issu<strong>in</strong>g government agencies overlap. Analysis <strong>of</strong> legislation<br />

shows that there are a number <strong>of</strong> cases <strong>of</strong> overlapp<strong>in</strong>g permits when two different<br />

government agencies issue permit for the same type <strong>of</strong> activity (see Box 5.4). 35<br />

34<br />

Cab<strong>in</strong>et <strong>of</strong> M<strong>in</strong>isters’ decree “On approval <strong>of</strong> Regulations on issuance <strong>of</strong> personal permits for carry<strong>in</strong>g out <strong>of</strong><br />

paid labor activity In the territory <strong>of</strong> the <strong>Azerbaijan</strong> Republic by foreigner <strong>and</strong> specimen <strong>of</strong> this personal permit”<br />

dated 6 December 2000, No 214.<br />

35<br />

Rules on issuance <strong>of</strong> permits for plac<strong>in</strong>g advertisement. Approved by the President’s Decree dated 3 November<br />

2001, No. 596; <strong>and</strong> Statute on plac<strong>in</strong>g <strong>and</strong> operation <strong>of</strong> advertisements with<strong>in</strong> the territory <strong>of</strong> Baku City. Approved<br />

by the Decree <strong>of</strong> Baku City Mayor, dated September, 6 1999, No. 892.<br />

78<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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