LAW OF THE AZERBAIJAN REPUBLIC

of October 21, 1994 No. 910

About currency control

This Law determines the principles of implementation of currency transactions in the Azerbaijan Republic, powers and functions of bodies of currency control and currency exchange control, the right and obligation of legal entities and physical persons concerning ownership, uses and orders of currency values, responsibility for violation of the foreign exchange legislation.

Chapter I. General provisions

Article 1. Basic concepts

In this Law the following concepts are used:

1. "National currency of the Azerbaijan Republic" (further "national currency"):

a) being in circulation, and also withdrawn or withdrawn from circulation, but subject to exchange on the bank notes which are in circulation, paper and metal bank notes issued by the Central bank of the Azerbaijan Republic;

b) means in manats on accounts in credit institutions and the national operator of mail service of the Azerbaijan Republic, and also at other payment service providers according to the Law of the Azerbaijan Republic "About payment services and payment systems", including electronic money in manats;

c) means in manats on accounts in credit institutions and other organizations of the payment services which are outside the Azerbaijan Republic including electronic money in manats.

2. "Securities in national currency" - shares, bonds, bills and other securities with nominal in manats expressed in manats.

3. "Foreign currency":

a) the bank notes in the form of banknotes, treasury notes and coins which are in circulation and considered as legal means of payment in the territory of the corresponding foreign state or group of the states, and also withdrawn or withdrawn from circulation, but subject to exchange for the bank notes which are in circulation in this territory;

b) means, including electronic money in foreign currency, on accounts in monetary units of foreign states, in international cash or units of account.

4. "Currency values":

a) foreign currency;

b) securities in foreign currency - shares, bonds, bills and other securities nominated in foreign currency, expressed in foreign currency;

c) precious metals - gold, silver and metals of platinum group (palladium, iridium, osmium, rhodium and ruthenium) in any kind, condition, including in the native and affined type, and also in raw materials, alloys, semifinished products, industrial products, chemical compounds, jewelry and other household products, coins, scrap, waste;

d) gemstones - natural diamonds, emeralds, rubies, sapphires, alexandrite in the processed and raw type.

5. "Residents":

a) the physical persons having the permanent residence in the Azerbaijan Republic, including temporarily being outside the Azerbaijan Republic;

b) the legal entities created according to the legislation of the Azerbaijan Republic;

c) the companies and the organizations, not being legal entities, created according to the legislation of the Azerbaijan Republic, with the location in the Azerbaijan Republic;

d) the diplomatic and other official representations of the Azerbaijan Republic which are outside the Azerbaijan Republic;

e) the branches and representations of the residents specified in subitems "b" and "v" of this Item located outside the Azerbaijan Republic.

6. "Nonresidents":

a) the physical persons having the permanent residence outside the Azerbaijan Republic, including temporarily being in the Azerbaijan Republic;

b) the legal entities created according to the legislation of foreign states and the companies and the organizations, not being legal entities, with the location outside the Azerbaijan Republic;

c) the foreign diplomatic and other official missions, and also the international organizations, their branches and representations which are in the Azerbaijan Republic;

d) the branches and representations which are in the Azerbaijan Republic (bureau and the agencies) the nonresidents specified in the subitem "b" of this Item;

7. "Currency transactions":

a) the transactions connected with transition of the property right and other rights to currency values, including transactions on currency exchange and also use of foreign currency and payment documents in foreign currency as instrument of payment;

b) import and transfer to the Azerbaijan Republic, and also export and transfer from the Azerbaijan Republic of currency values;

c) implementation of international money transfers.

7-1. "Activities for currency exchange" - purchase and sale and exchange of foreign currency in the Azerbaijan Republic according to the procedure, established by the law.

7-2. "Persons who obtained the license for activities for currency exchange" - legal resident person whose exclusive object of activity are currency and exchange activities, and branches of legal nonresident persons who obtained the license for activities for currency exchange according to the procedure, established by this Law

8. Transactions with foreign currency and securities in foreign currency are subdivided into the current transactions and currency transactions connected with capital movement.

9. "The current currency transactions":

a) transfer to the Azerbaijan Republic and from the Azerbaijan Republic of foreign currency for implementation of calculations for export and commodity import, works and services, and also the calculations connected with financing of export-import transactions for the term of no more than 180 days;

b) obtaining and provision of financial loans for the term of no more than 180 days;

c) transfer to the Azerbaijan Republic and from the Azerbaijan Republic of percent, dividends and other income on the deposits, investments, the credits and other transactions connected with capital movement;

d) transfers of uncommercial nature to the Azerbaijan Republic and from the Azerbaijan Republic, including the translation of wages amounts, pensions, the alimony and inheritance, and also other similar transactions.

10. "The currency transactions connected with capital movement":

a) direct investments, that is investment of capital in the authorized capital of the company for the purpose of commercialization and acquisition of right to participation in enterprise management;

b) acquisition of securities;

c) transfers to payment of the property right to buildings, constructions, other property, including the earth and its subsoil, carried by the legislation of the country of the location to real estate, and also other rights to the real estate;

d) provision and receipt of payment deferral for the term of more than 180 days on export and commodity import, works and services;

e) deposition by authorized banks of currency funds for term more than 180 days according to the law;

e) all other currency transactions which are not the current currency transactions.

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