Exporters of goods in Azerbaijan must also submit the following documents to the customs of that country: Document indicating the legal status of the issuing companyLegal code of the company determined by the State Statistics CommitteeThe provisions of the contractCertificate of origin of goodsDocument issued by a reputable bank indicating advance payment or opening of documentary credit 6- License from the Cabinet of Azerbaijan if the exported goods contain nuclear technology or explosives and also a license from relevant ministries if the goods contain animal bones, medicinal raw materials, and precious stones, as well as in the field of information transfer in the field of natural resources and inventions, a license from the relevant ministry is required
Azerbaijan is a country in the South Caucasus region known for its abundant natural resources, particularly oil and natural gas. While the economy heavily relies on these sectors, the government is actively working towards diversification. The nation has experienced significant economic growth, primarily driven by energy exports. Key sectors in Azerbaijan include oil and gas, agriculture, tourism, and information technology.
Azerbaijan has made efforts to improve its business climate. Reforms have been implemented to simplify procedures, reduce bureaucratic hurdles, and enhance the legal and regulatory framework. The country has also made significant investments in infrastructure, including roads, ports, and pipelines, to facilitate business operations. Azerbaijan encourages foreign direct investment (FDI), offering incentives such as tax exemptions and simplified procedures for foreign businesses.
Various types of business entities can be established in Azerbaijan, including limited liability companies (LLC), joint stock companies (JSC), representative offices and branches of foreign companies, and individual entrepreneurship. The taxation system in Azerbaijan includes corporate income tax, value-added tax (VAT), personal income tax, and social insurance contributions.
Azerbaijan occupies a strategic location at the crossroads of Europe and Asia, making it a key player in regional trade. The country is involved in international economic organizations and agreements, including the World Trade Organization (WTO), the Commonwealth of Independent States (CIS), and a Partnership and Cooperation Agreement (PCA) with the European Union. The State Veterinary Committee of Azerbaijan issues these permits. The import of special radioactivity equipment for use in the oil industry requires a special permit.
Preparation of documents for import and export in Azerbaijan:
Importers of Azerbaijan must submit the following documents to the customs of that country:
- Signed import contract
- Customs declaration specifying the imported goods.
- List of goods
- Import permit from the relevant ministry if the consignment includes pesticides and drugs
- Certificate of Origin
- Certificate of Origin
- Certificate of Quality of Goods.
Exporters of goods in Azerbaijan must also submit the following documents to the customs of that country:
- Document indicating the legal status of the issuing company
- Legal code of the company determined by the State Statistics Committee
- The provisions of the contract
- Certificate of origin of goods
- Document issued by a reputable bank indicating advance payment or opening of documentary credit 6- License from the Cabinet of Azerbaijan if the exported goods contain nuclear technology or explosives and also a license from relevant ministries if the goods contain animal bones, medicinal raw materials, and precious stones, as well as in the field of information transfer in the field of natural resources and inventions, a license from the relevant ministry is required.
- Customs declaration. According to a presidential decree issued in June 1996, the Ministry of Foreign Economic Relations is legally responsible for imports and exports. It is worth mentioning that the possibility of changes in the export and import regulations of that republic is high.
Export controls in Azerbaijan:
The export of radioactive materials, some medicines for the mentally ill, and old traditional carpets are prohibited. There are also restrictions on the export of new carpets. The government also has a regulatory role for the export of strategic goods such as oil and Petroleum products, cotton, electricity, and non-ferrous metals, and buyers of such goods must obtain a permit from the State Commission for the Supervision of Foreign Economic Relation of Exporters of goods in Azerbaijan are obliged to sell 30% of their foreign exchange earnings to the bank.
Major exported items from Azerbaijan:
Oil and gas, Chemical industry, oil equipment, textiles, cotton
Major imported items to Azerbaijan:
Machinery and parts, Food and textile industries
Free Trade Zones and Warehouses:
Free trade zones or customs warehouses have not yet been established in Azerbaijan, but a special economic zone is being established in the country's second industrial city, Sumgit (25 km north of Baku), and Nakhchivan.
Subscribe to trade agreements:
Azerbaijan is a signatory to the Tariff and Trade Agreement (GATT) and is considering joining the World Trade Organization. Trade liberalization agreements have also been signed with other CIS countries. Azerbaijan is trying to join the European Union.
Exemption from customs fees:
The following items are exempt from customs duties on imports of Azerbaijan: Property imported by foreign employees of companies for the personal use of imported goods, materials, and technology under agreements between countries, assets, and imported materials as the property of a foreign investor to participate in joint ventures. Raw materials, spare parts, and equipment imported by economic institutions for use in their products and humanitarian aid are distributed free of charge.
While Azerbaijan offers numerous business opportunities, it also faces challenges. Economic dependence on oil makes the country vulnerable to price fluctuations. Corruption and transparency issues can affect business operations, and political stability is influenced by the geopolitical situation, particularly the Nagorno-Karabakh conflict.
To gather more detailed information about doing business in Azerbaijan, companies can consult resources such as the Azerbaijan Export and Investment Promotion Foundation (AZPROMO), the Ministry of Economy of Azerbaijan, the State Statistical Committee of the Republic of Azerbaijan, and reports from the World Bank and International Monetary Fund (IMF). By understanding the local business environment and leveraging available resources, businesses can navigate the opportunities and challenges of operating in Azerbaijan.
