DECISION OF ECONOMIC COUNCIL OF COMMONWEALTH OF INDEPENDENT STATES

of June 30, 2006

About the overview of trade policy of the Azerbaijan Republic

The economic council of the Commonwealth of Independent States solved:

1. Take into consideration the overview of trade policy of the Azerbaijan Republic.

2. Send the specified overview to the governments of the State Parties of the CIS for informing the interested ministries and departments.

3. Charge to Executive committee of the CIS to publish in a month the specified overview and post it on the website of Executive committee of the CIS on the Internet.

Executive committee of the Commonwealth of Independent States

Overview of trade policy of the Azerbaijan Republic

The overview of trade policy of the Azerbaijan Republic is constituted according to the Procedure for carrying out reviews of trade policy of the State Parties of the CIS approved by the Decision of Economic council of the Commonwealth of Independent States of March 15, 2002.

The overview is prepared by Executive committee of the CIS based on the national report provided by the Ministry of Economic Development of the Azerbaijan Republic, and information on the matter which is available for Executive committee of the CIS.

The purpose of reviews of trade policy is achievement by the State Parties of the CIS of transparency of trade policy, assistance to observance of the rules, regulations and obligations fixed in international treaties and documents concerning forming and effective functioning of the free trade area and also regular carrying out objective assessment of the main indicators of trade policy and practice of the states of the Commonwealth, their influence on development of mutual trade.

1. Mode of trade policy

 

Institutional framework

The central executive body determining and realizing state policy in the field of trade, and also performing state regulation, research of condition and preparation of forecast indicators of development of this area is the Ministry of Economic Development of the Azerbaijan Republic.

Purposes of trade policy

Main objectives of the trade policy pursued in the Azerbaijan Republic are:

- integration into world economy;

- accession to the World Trade Organization;

- liberalization of foreign economic activity;

- enhancement of the current legislation;

- priority of the principle of reciprocity in foreign economic activity and its application when forming the contractual legal base;

- creation of infrastructure of trading activity of modern type.

Regulatory framework

Laws of the Azerbaijan Republic:

Customs legislation:

- "About tobacco and tobacco products" N138-IQ of June 8, 2001;

- "About rules of customs control over transportation through customs border of goods as a part of which there are intellectual property items" N259-IQ of February 12, 2002.

About protection of state interests in trade:

- "About consumer protection" N1113 of September 19, 1995;

- "About trademarks and geographical indicators" N504-IQ of June 12, 1998;

- "About public procurements" N245-IIQ of December 27, 2001;

- "About export control" N772-IIQ of October 26, 2004;

- "About electronic trading" N908-IIQ of May 10, 2005.

About protection and copyright protection:

- "About copyright and the related rights" N115-IQ of June 5, 1996;

- "About the patent" N312-IQ of June 10, 1997;

- "About legal protection of integrated topological circuits" N337-IIQ of May 31, 2002.

About transit, re-export:

- "Tax code" of July 11, 2000;

- "About export control" N772-IIQ of October 26, 2004;

- "About approval of lists of drugs, psychotropic substances which turnover is forbidden, limited and controlled in the territory of the Azerbaijan Republic, and also precursors which import, export, transit transportation and production in the territory of the Azerbaijan Republic requires the license (special permission)" to N960-IIQ of June 28, 2005.

In the field of monetary policy:

- "About public debt" N424 of December 29, 1992;

- "About auditor activities" N882 of September 16, 1994;

- "About currency control" N910 of October 21, 1994;

- "About investing activities" N952 of January 13, 1995;

- "About financial accounting" N998 of March 24, 1995 and N716-IIQ of June 29, 2004;

- "About grants" N483-IQ of April 17, 1998;

- "About bases of financing of municipalities" N772-IIQ of December 7, 1999;

- "About credit unions" N876-IQ of May 2, 2000;

- "About protection of the rights of investors of the security market" N899-IQ of June 16, 2000;

- "About the state fee" N223-IIQ of December 4, 2001;

- "About budget system" N358-IIQ of July 2, 2002;

- "About regulated prices" N462-IIQ of May 30, 2003;

- "About banks" N590-IIQ of January 16, 2004;

- "About lotteries" N594-IIQ of March 5, 2004;

- "About National Bank" N802-IIQ of December 10, 2004.

About protective measures, technical and sanitary barriers:

- "About sanitary and epidemiologic health" N371 of November 10, 1992;

- "About standardization" N60-IQ of April 16, 1996;

- "About quarantine of plants" N70-IQ of April 23, 1996;

- "About radiation safety of the population" N423-IQ of December 30, 1997;

- "About technical safety" N733-IQ of November 2, 1999;

- "About food" N759-IQ of November 18, 1999;

- "About drug trafficking, psychotropic substances and their precursors" N959-IIQ of March 5, 2004;

- "About veterinary science" N992-IIQ of May 31, 2005.

Resolutions of the Cabinet of Ministers of the Azerbaijan Republic:

- "About rules of creation and functioning of the border markets on check points of frontier of the Azerbaijan Republic" N26 of February 13, 1995;

- "About rules of trade, household and other types of service (performance of works, provision of services) in the Azerbaijan Republic" N80 of April 15, 1998;

- "About rules of trade in the territory of the Azerbaijan Republic ethyl alcohol, alcoholic beverages and tobacco products, about submission of orders for production of excise stamps for their sale, accounting of their sales, and also conducting daily state control" N33 of March 4, 1999;

- "About approval of phytosanitary rules on protection of forest fund against wreckers and diseases" N16 of February 9, 1999;

- "About approval of Rules of determination of the country of goods' origin" N202 of November 2, 2000;

- "About rates of customs duties on export-import transactions, the amount of charges for customs clearance in the Azerbaijan Republic" N80 of April 12, 2001;

- "About approval of Rules of movement by physical persons through customs border of the Azerbaijan Republic of goods not for production and commercial purposes" N105 of May 31, 2001;

- "About creation of Tariff (price) council of the Azerbaijan Republic" N17 of January 31, 2002;

- "About approval of Rules about regulation of relations of sellers of electrical and heat energy, natural gas and water with the Ministry of Finance of the Azerbaijan Republic and general managers of means of the government budget" N44 of March 18, 2002;

- "About entering of amendment into the Resolution of the Cabinet of Ministers of the Azerbaijan Republic "About rates of customs duties on export-import transactions in the Azerbaijan Republic" of April 22, 1998;

- "About modification and amendments in "The rule of movement by physical persons of the goods which are not provided for production and commercial purposes, through customs border of the Azerbaijan Republic", N105 approved by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic of May 31, 2001, N176 of November 7, 2002;

- "About introduction of amendments and changes in "The rule of use of system of customs valuation of the goods imported on customs area of the Azerbaijan Republic and exported from this territory" N7 approved by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic of January 12, 1998, N159 of December 17, 2003;

- "About modification of the Resolution of the Cabinet of Ministers of the Azerbaijan Republic "About rates of customs duties on export-import transactions, the amount of the charges levied for customs clearance in the Azerbaijan Republic" by N80 of April 12, 2001 (Group 01-97), N161 of December 22, 2003;

- "About modification in "The additional terms required depending on features of types of activity for issue of special permission (license)", approved by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic N174 of November 7, 2002 and in "The amount of the state tax paid for issue of special permission (license) for some types of activity where it is required", N180 approved by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic of November 18, 2002, N8 of February 10, 2004;

- "About modification in "The rule of movement by physical persons through customs border of the Azerbaijan Republic of goods not for production and commercial purposes", N105 approved by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic of May 31, 2001, N59 of April 30, 2004;

- "About modification in "Rate of import customs duties on the goods imported on the territory of the Azerbaijan Republic", N80 attached to the Resolution of the Cabinet of Ministers of the Azerbaijan Republic of April 12, 2001 approved by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic N161 of December 22, 2003, N74 of May 24, 2004;

- "About modification in "Rate of import customs duties on the goods imported on the territory of the Azerbaijan Republic", N161 approved by the Resolution of the Cabinet of Ministers of the Azerbaijan Republic of December 22, 2003 attached to the Resolution of the Cabinet of Ministers of the Azerbaijan Republic "About rates of customs duties on export-import transactions, the amount of the charges levied for customs clearance in the Azerbaijan Republic" by N80 of April 12, 2001, N125 of September 10, 2004;

- "About the Inventory, N11 exempted from the value added tax when importing to the territory of the Azerbaijan Republic" of January 31, 2005;

- "About entering of amendment into the Resolution of the Cabinet of Ministers of the Azerbaijan Republic "About rates of customs duties on export-import transactions in the Azerbaijan Republic" N91 of April 22, 1998, N12 of January 31, 2005.

Presidential decrees of the Azerbaijan Republic:

- "About elimination of artificial obstacles in the field of enhancement of system of the state control and development of entrepreneurship" N69 of January 7, 1999;

- "About additional actions in the field of regulation of production, import and sale of alcoholic beverages, ethyl food alcohol and tobacco products" N90 of February 5, 1999;

- "About additional actions in the field of regulation of trade in the Azerbaijan Republic" N160 of July 23, 1999;

- "About further liberalization of foreign trade in the Azerbaijan Republic" N609 of June 24, 1997;

- "About state regulation of the import and export activities connected with ozone-depleting substances" N608 of December 21, 2001;

- "About enhancement of rules of issue of special permission (licenses) for some types of activity" N782 of September 2, 2002;

- "About enhancement of the mechanism of use of means of National fund of the help to entrepreneurship" N58 of May 4, 2004;

- "About approval of the State Program for 2005 - 2007 on development of national payment system" N152 of December 9, 2004;

- "About change of nominal value of bank notes and standard of price (denomination) in the Azerbaijan Republic" N189 of February 7, 2005;

- "About additional measures for deepening of reforms in financial bank system" N205 of March 1, 2005;

- "About strengthening of anti-inflationary measures" N242 of May 31, 2005;

- "About creation of system of mortgage loans in the Azerbaijan Republic" N299 of September 16, 2005.

Agreements (multilateral, regional, bilateral, etc.):

- The free-trade agreement between the Government of the Azerbaijan Republic and the Government of the Republic of Moldova, on May 26, 1995;

- The free-trade agreement between the Government of the Azerbaijan Republic and the Government of Ukraine, on July 28, 1995;

- The free-trade agreement between the Government of the Azerbaijan Republic and the Government of Turkmenistan, on March 18, 1996;

- The free-trade agreement between the Government of the Azerbaijan Republic and the Government of Georgia, on March 8, 1996;

- The free-trade agreement between the Government of the Azerbaijan Republic and the Government of the Republic of Uzbekistan, on May 27, 1996;

- The free-trade agreement between the Government of the Azerbaijan Republic and the Government of the Republic of Kazakhstan, on June 10, 1997;

- The free-trade agreement between the Government of the Azerbaijan Republic and the Government of the Kyrgyz Republic, on January 12, 2004;

- The free-trade agreement between the Government of the Azerbaijan Republic and the Government of the Republic of Belarus, on March 31, 2004;

- Agreement on trade and economic cooperation between the Government of the Azerbaijan Republic and Government of Georgia, on March 8, 1996;

- Agreement on trade and economic cooperation between the Government of the Azerbaijan Republic and Government of Ukraine, on July 28, 1995;

- Agreement on trade and economic, scientific and technical and cultural cooperation between the Government of the Azerbaijan Republic and Government of the Moscow region of the Russian Federation, on November 2, 2002;

- Agreement on trade and economic cooperation between the Government of the Azerbaijan Republic and Government of the Kyrgyz Republic, on April 23, 1997;

- Agreement on the principles of trade and economic cooperation between the Government of the Azerbaijan Republic and Government of the Republic of Belarus, on December 24, 1993;

- The agreement between the Government of the Azerbaijan Republic and the Government of Georgia on collection of indirect taxes during the importing and commodity export (services). Signed on December 27, 1997. Became effective on July 6, 1998;

- The agreement between the Government of the Azerbaijan Republic and the Government of the Republic of Uzbekistan on the principles of collection of indirect taxes during the importing and commodity export (services). Signed on February 26, 1998. Became effective on April 28, 1998;

- The agreement between the Government of the Azerbaijan Republic and the Government of the Republic of Kazakhstan on the principles of collection of indirect taxes during the importing and commodity export (services). Signed on June 10, 1997. Became effective on July 9, 1998;

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