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Agreement between the Government of the Republic of Belarus and Government of the Azerbaijan Republic on free trade

of March 31, 2004

The government of the Republic of Belarus and the Government of the Azerbaijan Republic which are hereinafter referred to as with Contracting Parties

aiming at development of trade and economic cooperation between the Republic of Belarus and the Azerbaijan Republic on the basis of equality and mutual advantage,

proceeding from the sovereign right of each state to pursue independent external economic policy,

creating conditions for free movement of goods and services,

providing balance in mutual trade and stabilization of internal economic capacity of both states,

being guided by aspiration to permanent increase in level of living of the population of the states,

agreed as follows:

Article 1

1. Contracting parties according to legislations of the states and provisions of this agreement set free trade regime in mutual trade in goods.

2. Contracting parties will not apply the customs duties, taxes and fees having action equivalent to customs duties on export and commodity import, one of Contracting Parties coming from customs area of the state and intended for customs area of the state of other Contracting Party. In case of need Contracting Parties can provide exceptions of this trade regime according to the approved nomenclature of goods which will be drawn up by the documents which are integral part of this agreement.

3. For the purposes of this agreement and for its action the goods occurring from the territories of the states of Contracting Parties are understood as goods according to the Rules of determination of the country of goods' origin approved by the Decision of Council of Heads of Government of the Commonwealth of Independent States of November 30, 2000.

Article 2

Each of Contracting Parties will not be:

directly or indirectly to assess the goods of other Contracting Party falling under action of this agreement, the internal taxes or charges exceeding the corresponding taxes or charges which assess the similar goods of internal production or goods coming from the third countries;

enter concerning the import or commodity export falling under action of this agreement, any special restrictions or requirements which in similar situation are not applied to the similar goods of internal production or goods coming from the third countries;

apply to warehousing, overload, storage, transportation of the goods occurring from the territory of the state of other Contracting Party, and also payments and payment transfers of the rule others, than those which are applied in similar cases to own goods or goods by origin from the third countries.

Article 3

Contracting parties in mutual trade will abstain from application of discriminatory measures, introduction of quantitative restrictions or equivalent measures for export and commodity import within this agreement.

Article 4

Contracting parties will communicate on regular basis about the laws and other regulations connected with economic activity including concerning trade, investments, the taxation, banking and insurance activity and other financial services, on transport and customs questions, including customs statistics.

Contracting parties without delay will report each other about changes in the national legal system which can influence accomplishment of this agreement.

Authorized bodies of Contracting Parties will approve procedure for exchange of such information.

Article 5

Contracting parties will not allow unauthorized re-export of goods to which export other Contracting Party from which territory of the state there are these goods applies measures of tariff and non-tariff regulation. Contracting parties exchange lists of goods to which measures of tariff and non-tariff regulation are applied. Re-export of such goods to the third countries can be performed only from written consent and on the conditions determined by authorized body of the state which is country of source of these goods.

Article 6

Contracting parties recognize incompatible with this agreement purposes unfair business practice and not allow in particular, but is not exclusive, its following methods:

agreements and contracts between the companies, the decisions made by merging of the companies and the common methods of business practice aiming to prevent or limit the competition or to violate conditions for it in the territories of the states of Contracting Parties;

actions by means of which one or several companies use the dominant position, limiting the competition on all or on considerable part of the territory of the states of Contracting Parties.

Article 7

When implementing measures of tariff and non-tariff regulation of the bilateral economic relations, for exchange of statistical information, carrying out customs procedures Contracting Parties will use the single nine-digit Commodity nomenclature of foreign economic activity (TNVED) based on harmonized commodity description and coding system of World Customs Organization. At the same time for own needs Contracting Parties will perform if necessary development of the Commodity nomenclature outside nine signs.

Article 8

Contracting parties agree that observance of liberty principle of transit is the most important condition of goal achievement of this agreement and essential element of process of their connection to system of the international labor division and cooperation.

In this regard each Contracting Party will provide free transit through the territory of its state of goods and will not subject to unreasonable delays and restrictions transit transportations of the goods occurring from customs area of the state of other Contracting Party and/or the third states and the goods intended for customs area of the state of other Contracting Party or the third state, except for which import is prohibited or requires special permission according to the legislation of the state of the Contracting Party. Provisions of this agreement do not exclude possibility of application of restrictions for transit transportations which can cause damage to homeland security. Respectively each Contracting Party will provide to exporters, importers or carriers all means, available and necessary for ensuring transit, and service on conditions, not the worst than on what the same means and services are provided to own exporters, importers or carriers, and also exporters, importers or carriers of any third state.

The procedure and conditions of passing of goods on the territory of the states of Contracting Parties are regulated according to the legislation of the states of Contracting Parties and the international rules of transportations.

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