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in the Ministry of Justice

Azerbaijan Republic

On November 24, 1998 No. 135

Approved by the Order State customs committee of the Azerbaijan Republic on November 11, 1998 No. 064

Regulations on customs warehouses

1.1. The customs warehouse is the customs regime consisting of storage of the imported goods under customs control without collection during their storage of customs duties, taxes and without application to goods of measures of economic policy, and also storage under customs control of the goods intended for export according to export customs regime with provision of the privileges provided by the Customs code.

1.2. The customs warehouse can be founded, irrespective of pattern of ownership, by legal entities and physical persons (further - "warehouse keeper") the Azerbaijan Republic.

1.3. The customs warehouse can be open type warehouse, that is can be used by any persons, and the closed type, that is the warehouse intended for storage of goods of certain persons. The type of customs warehouse is specified in the license granted for its organization.

1.4. The territory of customs warehouse is the customs control zone.

1.5. The customs warehouse can be founded after receipt of the license in the State Customs Committee of the Azerbaijan Republic. Issue of this license is performed based on requirements of "Rules of issue of special permission (license) for organization of the customs warehouses of the Azerbaijan Republic" approved by the resolution of the Cabinet of Ministers of the Azerbaijan Republic of April 13, 1998 No. 73. If founder of customs warehouse is the customs authority of the Azerbaijan Republic, then the license is not required.

1.6. Licensing procedure for organization of customs warehouse and the amount of collection for licensing are established by the Cabinet of Ministers of the Azerbaijan Republic.

2. Requirements to construction and equipment of customs warehouse

2.1. The customs warehouse shall be built so that receipts there of goods and their withdrawal would be impossible without customs control from there, and also safety of the goods which are stored in warehouse would be ensured.

2.2. The territory of warehouse shall be surrounded with fencing (fence). If the part of the building or any construction becomes customs warehouse, then the roads and unloading platforms adjoining roads conducting to warehouses shall not create any opportunity for access for strangers to the goods which are under customs control. In necessary cases in the building or construction which are directly the warehouse territory also installation of system of the alarm system can be required.

2.3. The customs authority can establish specific requirements for construction and equipment of customs warehouse, including according to its requirement the warehouse shall be equipped with the double closed (locked) installation and one of these installations shall be at the disposal of customs authority, another - at the disposal of the warehouse keeper. Without the consent of customs authority (responsible customs employees on warehouse) the warehouse keeper cannot enter warehouse and make any transaction with the goods which are stored there.

3. Obligations of the warehouse keeper

3.1. The warehouse keeper shall perform the material equipment providing normal functioning of warehouse including:

- loading, unloading and vehicles;

- storage equipment;

- organizational equipment;

- corresponding furniture. Besides, the warehouse keeper shall provide warehouse with necessary labor power for carrying out cargo operations with the goods which are stored in them.

3.2. For the staff of customs authority buildings, the place, the equipment and the means of communication meeting the requirements of customs authority and necessary for implementation of customs control and customs clearance shall be gratuitously (free of charge) allocated.

3.3. Additional equipment of customs warehouse, its content according to the procedure, ensuring protection and access control of warehouse is carried out by the warehouse keeper at his expense.

3.4. The warehouse keeper shall carry out the following:

- not complicate carrying out customs control;

- not allow withdrawal of the goods which are stored in customs warehouse without customs control;

- adhere to conditions of the license granted for organization of customs warehouse and, creating conditions for entrance to locations of goods of authorized responsible persons of customs authorities, follow requirements of these bodies;

- record the stored goods (including the automated accounting according to the special requirement of customs authority), to submit about them the report corresponding to this instruction (current and periodic) to customs authorities;

- in case of cancellation or revocation of license to provide protection of goods and process of liquidation of customs warehouse;

3.5. The warehouse keeper bears responsibility according to the current legislation for failure to carry out of the obligations.

4. Placement of goods under customs locks

4.1. The customs warehouse can be used only for storage of the goods placed under the mode of customs warehouse.

For placement of goods under customs locks between the warehouse keeper and person placing goods in warehouse the relevant agreement is signed.

4.2. Any goods, except for the goods which are not permitted to import to the Azerbaijan Republic and to export from the Azerbaijan Republic, and also the goods specified in appendix of 1 this provision can be under customs locks placed.

4.3. The goods capable to do harm to other goods and requiring special storage conditions are stored in the buildings which are specially adapted for this purpose.

4.4. Goods are placed under customs locks with the assistance of authorized officials of customs authority.

4.5. About placement of goods under the mode of customs warehouse it shall be reported in customs authority by means of submission to customs authority of the cargo customs declaration about these goods completed in the appropriate order.

4.6. Together with the cargo customs declaration also other documents, stipulated by the legislation are represented to customs authority for customs clearance and control.

4.7. In case of placement under customs locks of the imported products of plant and animal origin, the relevant state bodies carry out phytosanitary and veterinary control (if similar control was not exercised in case of goods receipt on the territory of the Azerbaijan Republic).

5. The operations performed with goods in storage time

5.1. For ensuring safety of the goods which are stored under customs locks in that type in what they arrived over these goods the following operations can be performed:

- measures for cleaning and ensuring safety of goods;

- ventilation;

- drying (including creation of thermal flow);

- maintenance of the most suitable temperature of storage (chilling, freezing, heating);

- placement in protective packaging;

- greasing by protective lubricant and preservatives;

- covering by corrosion-resistant coating before transportation.

5.2. For preparation of the goods for sale placed under customs locks and transportation, in addition to the transactions listed in Item 5.1, over the specified goods the following operations can be performed:

- separation into groups;

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